Texas Mineral Resources (TMRC) 10-Q14 Apr 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Feb. 28, 2014	Apr. 09, 2014
Document And Entity Information	'	'
Entity Registrant Name	'Texas Rare Earth Resources Corp.	'
Entity Central Index Key	'0001445942	'
Document Type	'10-Q	'
Document Period End Date	28-Feb-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--08-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	37,036,916
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

BALANCE_SHEETS_Unaudited

BALANCE SHEETS (Unaudited) (USD $)	Feb. 28, 2014	Aug. 31, 2013
CURRENT ASSETS	'	'
Cash and cash equivalents	$1,232,599	$2,374,017
Prepaid expenses and other current assets	38,256	61,828
Total current assets	1,270,855	2,435,845
Property and equipment, net	109,878	148,217
Mineral properties	1,718,286	1,718,286
Deposits	71,244	111,250
TOTAL ASSETS	3,170,263	4,413,598
CURRENT LIABILITIES	'	'
Accounts payable and accrued liabilities	83,805	228,834
Current portion of note payable	29,007	29,007
Total current liabilities	112,812	257,841
Note payable - net of current portion and discount	290,845	290,845
Total liabilities	403,657	548,686
COMMITMENTS AND CONTINGENCIES	'	'
SHAREHOLDERS' EQUITY	'	'
Preferred stock, par value $0.001; 10,000,000 shares authorized, no shares issued and outstanding as of February 28, 2014 and August 31, 2013, respectively	'	'
Common stock, par value $0.01; 100,000,000 shares authorized, 37,036,916 and 36,550,009 shares issued and outstanding as of February 28, 2014 and August 31, 2013, respectively	370,370	370,370
Additional paid-in capital	30,597,039	30,001,752
Accumulated deficit	-28,200,803	-26,507,210
Total shareholders' equity	2,766,606	3,864,912
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$3,170,263	$4,413,598

BALANCE_SHEETS_Unaudited_Paren

BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Feb. 28, 2014	Aug. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	37,036,916	37,036,916
Common stock, shares outstanding	37,036,916	37,036,916

STATEMENTS_OF_OPERATIONS_Unaud

STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		6 Months Ended
STATEMENTS OF OPERATIONS (Unaudited) (USD $)	Feb. 28, 2014	Feb. 28, 2013	Feb. 28, 2014	Feb. 28, 2013
OPERATING EXPENSES	'	'	'	'
Exploration costs	$134,964	$255,676	$275,420	$456,562
General and administrative expenses	863,180	854,720	1,426,482	1,431,311
Total operating expenses	998,144	1,110,396	1,701,902	1,887,873
LOSS FROM OPERATIONS	-998,144	-1,110,396	-1,701,902	-1,887,873
OTHER INCOME (EXPENSE)	'	'	'	'
Interest and other income	14,339	3,737	16,309	7,105
Other expense	-4,000	-904	-8,000	-9,814
Total other income (expense)	10,339	2,833	8,309	-2,709
NET LOSS	($987,805)	($1,107,563)	($1,693,593)	($1,890,582)
Net loss per share:	'	'	'	'
Basic and diluted net loss per share	($0.03)	($0.03)	($0.05)	($0.05)
Weighted average shares outstanding:	'	'	'	'
Basic and diluted	37,036,916	36,111,975	37,036,916	36,332,202

STATEMENTS_OF_CASH_FLOWS_Unaud

STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended
STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	Feb. 28, 2014	Feb. 28, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net loss	($1,693,593)	($1,890,582)
Adjustment to reconcile net loss to net cash used in operating activities:	'	'
Depreciation expense	38,339	40,439
Loss on disposition of fixed assets	'	16,991
Stock-based compensation	595,287	231,413
Changes in operating assets and liabilities:	'	'
Prepaid expenses and other assets	63,578	21,019
Accounts payable and accrued expenses	-145,029	-113,864
Net cash used in operating activities	-1,141,418	-1,694,584
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Investment in mineral properties	'	-10,000
Purchase of fixed assets	'	-696
Proceeds from sale of fixed assets	'	3,405
Net cash used in investing activities	'	-7,291
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Purchase of common stock	'	-132,692
Net cash provided by financing activities	'	-132,692
NET CHANGE IN CASH	-1,141,418	-1,834,567
CASH, BEGINNING OF PERIOD	2,374,017	6,517,935
CASH, END OF PERIOD	1,232,599	4,683,368
SUPPLEMENTAL INFORMATION	'	'
Interest paid	'	$137

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Feb. 28, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
BASIS OF PRESENTATION	'
	NOTE 1 – BASIS OF PRESENTATION

	The accompanying unaudited interim financial statements of Texas Rare Earth Resources Corp. (“we”, “us”, “our”, the “Corporation”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in our annual report on Form 10-K, for the year ended August 31, 2013, dated November 26, 2013 as filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2013 as reported in our annual report on Form 10-K, have been omitted.

MINERAL_PROPERTIES

MINERAL PROPERTIES	6 Months Ended
	Feb. 28, 2014
Mineral Properties	'
MINERAL PROPERTIES	'
	NOTE 2 – MINERAL PROPERTIES

	September 2011 Lease

	On September 2, 2011, we entered into a new mining lease with the Texas General Land Office covering Sections 7 and 18 of Township 7, Block 71 and Section 12 of Block 72, covering approximately 860 acres at Round Top Mountain in Hudspeth County, Texas. The mining lease issued by the Texas General Land Office gives us the right to explore, produce, develop, mine, extract, mill, remove, and market beryllium, uranium, rare earth elements, all other base and precious metals, industrial minerals and construction materials and all other minerals excluding oil, gas, coal, lignite, sulfur, salt, and potash. The term of the lease is nineteen (19) years. The lease can be extended beyond its primary term by applying for and receiving approval from the GLO or by production so long as minerals are produced in paying quantities.

	Under the lease, we will pay the State of Texas a lease bonus of $142,518; $44,718 of which was paid upon the execution of the lease, and $97,800 of which will be due when we submit a supplemental plan of operations to conduct mining. Upon the sale of minerals removed from Round Top, we will pay the State of Texas a $500,000 minimum advance royalty.

	Thereafter, we will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals removed and sold from Round Top.

	Thereafter, assuming production of paying quantities has not been obtained, we may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule:

		Per Acre Amount		Total Amount
	September 2, 2013 – 2014	$	50	$	44,718
	September 2, 2015 – 2019	$	75	$	67,077
	September 2, 2020 – 2024	$	150	$	134,155
	September 2, 2025 – 2029	$	200	$	178,873

	In August 2013, we paid a delay rental to the State of Texas upon execution of the lease in the amount of $44,718.

	November 2011 Lease

	On November 1, 2011, we entered into a mining lease with the State of Texas covering 90 acres, more or less, of land that we purchased in September 2011 near our Round Top site. The primary term of the lease is nineteen (19) years. The deed was recorded with Hudspeth County on September 16, 2011. Under the lease, we paid the State of Texas a lease bonus of $20,700 which was paid upon the execution of the lease. Upon the sale of minerals removed from Round Top, we will pay the State of Texas a $50,000 minimum advance royalty. Thereafter, we will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals sold from Round Top.

	If production of paying quantities of minerals has not been obtained on or before November 1, 2012, we may pay the State of Texas a delay rental to extend the term of the lease in an amount equal to $4,500. Thereafter, assuming production of paying quantities has not been obtained, we may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule:

		Per Acre Amount		Total Amount
	November 1, 2013-2014	$	50	$	4,500
	November 1, 2015 – 2019	$	75	$	6,750
	November 1, 2020 – 2024	$	150	$	13,500
	November 1, 2025 – 2029	$	200	$	18,000

	In August 2013, we paid a delay rental to the State of Texas of $4,500.

	On March 6, 2013, we entered into a lease assignment (the “Lease Assignment Agreement”) with Southwest Range & Wildlife Foundation, Inc., a Texas non-profit corporation (the “Foundation”), pursuant to which the Foundation agreed to assign to us a surface lease identified with the State of Texas as Surface Lease SL20040002 (the “West Lease”), which covers 54,990.11 acres in Hudspeth County, Texas. In exchange for the West Lease, we agreed to: (i) pay the Foundation $500,000 in cash; (ii) issue 1,063,830 of our common shares, par value $0.01 (the “Common Shares”); and (iii) make ten (10) payments to the Foundation of $45,000 each. The first payment was made in June 2013, and the nine (9) subsequent payments due on or before June 1 of each of the following years, such payments to be used by the Foundation to support conservation efforts within the Rio Grande Basin. The Lease Assignment Agreement contains standard representations, warranties and covenants. The closing of the transaction contemplated by the Lease Assignment Agreement was completed on March 8, 2013.

NOTE_PAYABLE

NOTE PAYABLE	6 Months Ended
NOTE PAYABLE	Feb. 28, 2014
Note Payable	'
NOTE PAYABLE	'
	NOTE 3 – NOTE PAYABLE

	In relation to the Foundation lease discussed in Note 2 the Company recorded a note payable for an amount for the initial $45,000 due upon signing of lease and the nine (9) future payments due of $45,000 which has been recorded at its present value discounted with an imputed interest rate of 5% for a total note payable of $364,852. At February 28, 2014 the current portion due is $29,007 and long-term portion due is $290,845. The total note payable due at February 28, 2014 is $319,852. The Company has also accrued interest expense of $11,250 as of February 28, 2014 which is included in accrued liabilities.

	Future maturities

	Year	Principle amount due

	2014	$29,007
	2015	30,458
	2016	31,981
	2017	33,580
	2018	35,259
	2019 thereafter	159,567
	Total	$319,852

SHAREHOLDERS_EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
SHAREHOLDERS' EQUITY	Feb. 28, 2014
Shareholders Equity	'
SHAREHOLDERS' EQUITY	'
	NOTE 4 – SHAREHOLDERS’ EQUITY

	Capital Stock

	Our authorized capital stock consists of 100,000,000 shares of common stock, with a par value of $0.01 per share, and 10,000,000 preferred shares with a par value of $0.001 per share.

	All shares of common stock have equal voting rights and, when validly issued and outstanding, are entitled to one non-cumulative vote per share in all matters to be voted upon by shareholders. The shares of common stock have no pre-emptive, subscription, conversion or redemption rights and may be issued only as fully paid and non-assessable shares. Holders of the common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by our Board of Directors (our “Board”) out of funds legally available. In the event of a liquidation, dissolution or winding up of the affairs of the Corporation, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment or provision for all liabilities and any preferential liquidation rights of any preferred stock then outstanding.

	During the six months ended February 28, 2014, we expensed approximately $595,000 for stock based compensation to our directors and consultants for stock options previously issued.

	On September 1, 2013, the Board of Directors approved and granted a total of 60,000 options to consultants. The options are exercisable at $0.30 per share for a period of five years. All options vest 1/6 at the end of each month of consulting services. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 60,000 options issued during the period to these consultants, using the assumptions of a risk free interest rate of 1.62%, dividend yield of 0%, volatility of 303%, and an expected life of 5 years. These options are valued at approximately $16,000 and are being expensed over the vesting period of 6 months in the amount of approximately $2,700 per month.

	On October 1, 2013, we appointed Mr. Jack Lifton to serve as a member of our Board. In connection with the appointment of Mr. Jack Lifton to our Board on October 1, 2013, Mr. Lifton was granted 100,000 options to purchase shares of our common stock, vesting immediately with a term of 5 years and at an exercise price of $0.50. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 100,000 options issued during the period to this director, using the assumptions of a risk free interest rate of 1.42%, dividend yield of 0%, volatility of 302%, and an expected life of 5 years. These options were immediately expensed during the current period in the amount of approximately $47,000. In addition, Mr. Lifton, as a non-executive director, will receive $10,000 annually, $1,000 for in person board meetings, $500 for telephonic board meetings and $500 for committee meetings (both in person and telephonic) pursuant to our director compensation program.

	On November 25, 2013, the Board of Directors approved and granted a total of 10,000 options to consultants. The options are exercisable at $0.50 per share for a period of five years. All options vest immediately. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 10,000 options issued during the period to these consultants, using the assumptions of a risk free interest rate of 1.37%, dividend yield of 0%, volatility of 298%, and an expected life of 5 years. These options are being expensed immediately in the amount of approximately $5,000.

	On December 8, 2013, our Board approved and granted 240,000 options to Mr. Marchese, 160,000 options to Dr. Pingitore, and 60,000 options each to Mr. Gorski, Dr. Wolfe, Mr. Lifton, Dr. Goodell, Ms. Lynch and Mr. Wall. All options to these members are exercisable at $0.50 per share for a period of ten years, vesting immediately. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 760,000 options issued during the period to these directors, using the assumptions of a risk free interest rate of 1.1%, dividend yield of 0%, volatility of 938%, and an expected life of 10 years. These options were expensed during the quarter ending February 28, 2014. Total value expensed was approximately $380,000.

	On January 10, 2014, the Board entered into an agreement with a consultant to provide advisory services to the Company’s Board. As a part of the agreement the Board approved to provide the consultant with annual cash compensation of $5,000 and a grant of 25,000 options. The options are exercisable at $0.42 per share for a period of five years. All options vest immediately. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 25,000 options issued during the period to this advisor, using the assumptions of a risk free interest rate of 2.88%, dividend yield of 0%, volatility of 293%, and an expected life of 5 years. These options are being expensed immediately in the amount of approximately $10,500.

	On February 19, 2014, the Board approved a grant of 50,000 options to a consultant to the Company. The options are exercisable at $0.41 per share for a period of five years. All options vest immediately. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 50,000 options issued during the period to this advisor, using the assumptions of a risk free interest rate of 2.88%, dividend yield of 0%, volatility of 651%, and an expected life of 5 years. These options are being expensed immediately in the amount of approximately $20,500.

	We currently have 37,036,916 shares of our common stock outstanding.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Feb. 28, 2014
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 5 – SUBSEQUENT EVENTS

	On March 3, 2014, our Board approved the repricing of all outstanding Board options for active directors to $0.45. A total of 3.185 million Directors’ options that were outstanding as of March 3, 2014. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 3.185 million options outstanding on March 3, 2014, using the assumptions of a risk free interest rate from 1.1% to 2.6%, a dividend yield of 0%, volatility of 205%, to 883% and an expected life of 2 to 9.75 years. The options will be expensed in full during the third quarter 2014 in the amount of approximately $4,400.

	On March 19, 2014, the Board approved a grant of 25,000 options to a consultant to the Company. The options are exercisable at $0.42 per share for a period of five years. All options vest immediately. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 25,000 options issued during the period to this advisor, using the assumptions of a risk free interest rate of 2.88%, dividend yield of 0%, volatility of 289%, and an expected life of 5 years. These options are being expensed immediately in the amount of approximately $10,500.

PROPERTY_AND_EQUIPMENT_NET_Tab

PROPERTY AND EQUIPMENT, NET (Tables)	6 Months Ended
PROPERTY AND EQUIPMENT, NET (Tables)	Feb. 28, 2014
Property And Equipment Net Tables	'
Schedule of fixed assets	'
	Our fixed assets consist of the following:

		August 31, 2013			August 31, 2012
	Furniture & office equipment	$	85,889		$	111,582
	Vehicles		105,299			105,299
	Computers & software		48,071			56,176
	Field equipment		71,396			73,953
	Total cost basis		310,655			347,010
	Less: Accumulated depreciation		(162,438	)		(96,101	)
	Property & equipment, net	$	148,217		$	250,909

MINERAL_PROPERTIES_Tables

MINERAL PROPERTIES (Tables)	6 Months Ended
MINERAL PROPERTIES (Tables)	Feb. 28, 2014
Mineral Properties Tables	'
Schedule of future minimum lease payments for mineral properties leased	'
	September 2011 Lease

	Thereafter, assuming production of paying quantities has not been obtained, we may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule:

		Per Acre Amount		Total Amount
	September 2, 2013 – 2014	$	50	$	44,718
	September 2, 2015 – 2019	$	75	$	67,077
	September 2, 2020 – 2024	$	150	$	134,155
	September 2, 2025 – 2029	$	200	$	178,873

	November 2011 Lease


	Thereafter, assuming production of paying quantities has not been obtained, we may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule:

		Per Acre Amount		Total Amount
	November 1, 2013-2014	$	50	$	4,500
	November 1, 2015 – 2019	$	75	$	6,750
	November 1, 2020 – 2024	$	150	$	13,500
	November 1, 2025 – 2029	$	200	$	18,000

NOTE_PAYABLE_Tables

NOTE PAYABLE (Tables)	6 Months Ended
NOTE PAYABLE (Tables)	Feb. 28, 2014
Note Payable Tables	'
Schedule of future maturities of debt	'
	Future maturities

	Year	Principle amount due

	2014	$29,007
	2015	30,458
	2016	31,981
	2017	33,580
	2018	35,259
	2019 thereafter	159,567
	Total	$319,852

MINERAL_PROPERTIES_Details_Nar

MINERAL PROPERTIES (Details Narrative) (USD $)	6 Months Ended		0 Months Ended	1 Months Ended		0 Months Ended	1 Months Ended		0 Months Ended
	Feb. 28, 2014	Aug. 31, 2013	Sep. 02, 2011	Aug. 31, 2013	Feb. 28, 2014	Nov. 01, 2011	Aug. 31, 2013	Feb. 28, 2014	Mar. 06, 2013
			Round Top Project - Hudspeth County, TX	Round Top Project - Hudspeth County, TX	Round Top Project - Hudspeth County, TX	Round Top Project - Hudspeth County, TX	Round Top Project - Hudspeth County, TX	Round Top Project - Hudspeth County, TX	Hudspeth County, TX
			September 2011 Mineral Properties Lease	September 2011 Mineral Properties Lease	September 2011 Mineral Properties Lease	November 2011 Mineral Properties Lease	November 2011 Mineral Properties Lease	November 2011 Mineral Properties Lease	Southwest Range and Wildlife Foundation, Inc.
					acre			acre	acre
Lease acreage	'	'	'	'	860	'	'	90	54,990.11
Lease term	'	'	'	'	'	'19 years	'	'	'
Lease bonus	'	'	'	'	$142,518	'	'	'	'
Lease bonus paid	'	'	44,718	'	'	20,700	'	'	'
Lease bonus due upon filing of supplemental plan of operations to conduct mining	'	'	'	'	97,800	'	'	'	'
Minimum advance royalty due upon sale of minerals	'	'	'	'	500,000	'	'	50,000	'
Production royalty of market value of uranium and fissionable materials	'	'	8.00%	'	'	8.00%	'	'	'
Production royalty of market value of other minerals	'	'	6.25%	'	'	6.25%	'	'	'
Delay rental paid	'	'	'	44,718	'	'	4,500	'	'
Cash paid for lease assignment	'	'	'	'	'	'	'	'	500,000
Shares issued for lease	'	'	'	'	'	'	'	'	1,063,830
Common stock, par value	$0.01	$0.01	'	'	'	'	'	'	$0.01
Periodic payment	$45,000	'	'	'	'	'	'	'	$45,000

MINERAL_PROPERTIES_Details

MINERAL PROPERTIES (Details) (USD $)	Feb. 28, 2014
September 2, 2013 - 2014	'
Per Acre Amount	$50
Total Lease Amount	44,718
September 2, 2015 - 2019	'
Per Acre Amount	75
Total Lease Amount	67,077
September 2, 2020 - 2024	'
Per Acre Amount	150
Total Lease Amount	134,155
September 2, 2025 - 2029	'
Per Acre Amount	200
Total Lease Amount	178,873
November 1, 2013 - 2014	'
Per Acre Amount	50
Total Lease Amount	4,500
November 1, 2015 - 2019	'
Per Acre Amount	75
Total Lease Amount	6,750
November 1, 2020 - 2024	'
Per Acre Amount	150
Total Lease Amount	13,500
November 1, 2025 - 2029	'
Per Acre Amount	200
Total Lease Amount	$18,000

NOTE_PAYABLE_Details_Narrative

NOTE PAYABLE (Details Narrative) (USD $)	6 Months Ended
NOTE PAYABLE (Details Narrative) (USD $)	Feb. 28, 2014	Aug. 31, 2013
Note Payable Details Narrative	'	'
Periodic payment	$45,000	'
Interest rate	5.00%	'
Note payable face amount	364,852	'
Current portion of notes payable	29,007	29,007
Notes payable - net of current portion and discount	290,845	290,845
Note payable - current and noncurrent	319,852	'
Accrued interest expense	$11,250	'

NOTE_PAYABLE_Details

NOTE PAYABLE (Details) (USD $)	Feb. 28, 2014
Future maturities, fiscal year:	'
2014	$29,007
2015	30,458
2016	31,981
2017	33,580
2018	35,259
2019 thereafter	159,567
Total	$319,852

SHAREHOLDERS_EQUITY_Details_Na

SHAREHOLDERS' EQUITY (Details Narrative) (USD $)

0 Months Ended

6 Months Ended

0 Months Ended

Dec. 08, 2013

Feb. 28, 2014

Feb. 28, 2013

Aug. 31, 2013

Mar. 19, 2014

Feb. 19, 2014

Jan. 10, 2014

Nov. 25, 2013

Sep. 02, 2013

Oct. 01, 2013

Dec. 08, 2013

Stock Options

Jack Lifton, Director

Mr. Marchese

Dr. Pingitore

Mr. Gorski, Dr. Wolfe, Mr. Lifton, Dr. Goodell, Ms. Lynch and Mr. Wall

Consultants

Stock Options

Common stock, par value

$0.01

Common stock, shares authorized

100,000,000

Preferred stock, par value

$0.00

Preferred stock, shares authorized

10,000,000

Stock based compensation

$595,287

$231,413

$10,500

$20,500

$10,500

$5,000

$47,000

Options granted

760,000

25,000

5,000

25,000

10,000

60,000

100,000

240,000

160,000

60,000

Exercise price of options granted

$0.42

$0.41

$0.42

$0.50

$0.30

$0.50

Stock options expected term

'5 years

Vesting terms

'Vest Immediately

'Vest 1/6 at the end of each month of consulting services

'Vest Immediately

Vesting period

'6 months

Expected dividend yield

0.00%

Risk-free interest rate

1.10%

2.88%

1.37%

1.62%

1.42%

Expected volatility

938.00%

651.00%

293.00%

298.00%

303.00%

302.00%

Expected life

'10 years

'5 years

Fair value of options

$16,000

Monthly expense amount to be recognized

2,700

Annual compensation

10,000

In-person board meeting compensation

1,000

Telephonic board meeting compensation

500

Committee board meeting compensation

$500

Common stock, shares outstanding

37,036,916

SUBSEQUENT_EVENTS_Details_Narr

SUBSEQUENT EVENTS (Details Narrative) (USD $)	0 Months Ended	6 Months Ended		0 Months Ended
	Dec. 08, 2013	Feb. 28, 2014	Feb. 28, 2013	Mar. 19, 2014	Feb. 19, 2014	Jan. 10, 2014	Nov. 25, 2013	Sep. 02, 2013	Mar. 03, 2014	Mar. 03, 2014	Mar. 03, 2014
				Stock Options	Stock Options	Stock Options	Stock Options	Stock Options	Stock Options	Stock Options	Stock Options
				Consultants	Consultants	Consultants	Consultants	Consultants	Directors	Directors	Directors
										Lower Range	Upper Range
Options outstanding	'	'	'	'	'	'	'	'	3,185,000	'	'
Exercise price of options outstanding	'	'	'	'	'	'	'	'	$0.45	'	'
Expected dividend yield	'	'	'	0.00%	'	'	'	'	0.00%	'	'
Risk-free interest rate	'	'	'	2.88%	'	'	'	'	'	1.10%	2.60%
Expected volatility	'	'	'	289.00%	'	'	'	'	'	205.00%	883.00%
Expected life	'	'	'	'5 years	'5 years	'5 years	'5 years	'5 years	'	'2 years	'9 years 9 months
Stock based compensation	'	$595,287	$231,413	$10,500	$20,500	$10,500	$5,000	'	$4,400	'	'
Options granted	760,000	'	'	25,000	5,000	25,000	10,000	60,000	'	'	'
Exercise price of options granted	'	'	'	$0.42	$0.41	$0.42	$0.50	$0.30	'	'	'
Vesting terms	'	'	'	'Vest Immediately	'Vest Immediately	'Vest Immediately	'Vest Immediately	'Vest 1/6 at the end of each month of consulting services	'	'	'