Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Dec. 10, 2013 | Feb. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Aug-13 | ' | ' |
Entity Registrant Name | 'OBJ Enterprises, Inc. | ' | ' |
Entity Central Index Key | '0001489256 | ' | ' |
Current Fiscal Year End Date | '--08-31 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Shares Outstanding | ' | 16,434,339 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Public Float | ' | ' | $2,205,188 |
Balance_Sheets
Balance Sheets (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Current assets: | ' | ' |
Cash | $75,190 | $2,652 |
Total current assets | 75,190 | 2,652 |
TOTAL ASSETS | 75,190 | 2,652 |
Current liabilities: | ' | ' |
Accounts payable | 92,381 | 31,054 |
Advances payable | ' | 280,372 |
Current portion of convertible notes payable, net of discount of $306 and $-, respectively | 76,311 | ' |
Total current liabilities | 168,692 | 311,426 |
Convertible notes payable, net of discount of $521,630 and $151,219, respectively | 41,642 | 190,546 |
Total liabilities | 210,334 | 501,972 |
Stockholders' deficit: | ' | ' |
Preferred stock; $0.0001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding | ' | ' |
Common stock; $0.0001 par value; 100,000,000 shares authorized; 15,234,339 and 607,500 issued and outstanding at August 31, 2013 and 2012, respectively | 1,523 | 61 |
Additional paid-in capital | 2,898,220 | 1,675,205 |
Deficit accumulated during development stage | -3,034,887 | -2,174,586 |
Total stockholders' deficit | -135,144 | -499,320 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $75,190 | $2,652 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Consolidated Balance Sheets [Abstract] | ' | ' |
Unamortized discount on debt instrument, current portion | $306 | ' |
Unamortized discount on debt instrument, noncurrent portion | $521,630 | $151,219 |
Preferred stock, par value per share | $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 per share | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 15,234,339 | 607,500 |
Common stock, shares outstanding | 15,234,339 | 607,500 |
Statement_of_Operations
Statement of Operations (USD $) | 12 Months Ended | 47 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | |
OPERATING EXPENSE: | ' | ' | ' |
General and administrative | $295,534 | $574,038 | $2,157,161 |
Impairment of investment in joint venture | 157,500 | 34,000 | 191,500 |
LOSS FROM OPERATIONS | -453,034 | -608,038 | -2,348,661 |
Other income (expense), net | ' | ' | ' |
Interest expense | -407,267 | -278,959 | -686,226 |
NET LOSS | ($860,301) | ($886,997) | ($3,034,887) |
Net loss per common share (basic and fully diluted) | ($0.11) | ($1.69) | ' |
Weighted average number of common shares outstanding - basic and fully diluted | 7,860,789 | 525,779 | ' |
Statement_of_Changes_in_Stockh
Statement of Changes in Stockholders' Deficit (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Sep. 20, 2009 | ' | ' | ' | ' |
Balance, shares at Sep. 20, 2009 | ' | ' | ' | ' |
Issuance of common stock for cash, September 2009, $0.04 per share | 9,000 | 23 | 8,977 | ' |
Issuance of common stock for cash, September 2009, $0.04 per share, shares | ' | 225,000 | ' | ' |
Issuance of common stock for cash, August 2010, $0.70 per share | 52,500 | 8 | 52,492 | ' |
Issuance of common stock for cash, August 2010, $0.70 per share, shares | ' | 75,000 | ' | ' |
Net loss | -20,572 | ' | ' | -20,572 |
Balance at Aug. 31, 2010 | 40,928 | 31 | 61,469 | -20,572 |
Balance, shares at Aug. 31, 2010 | ' | 300,000 | ' | ' |
Issuance of common stock for services | 50,000 | 2 | 49,998 | ' |
Issuance of common stock for services, shares | ' | 25,000 | ' | ' |
Issuance of common stock for services, transaction two | 570,000 | 1 | 569,999 | ' |
Issuance of common stock for services, transaction two, shares | ' | 12,500 | ' | ' |
Net loss | -1,267,017 | ' | ' | -1,267,017 |
Balance at Aug. 31, 2011 | -606,089 | 34 | 681,466 | -1,287,589 |
Balance, shares at Aug. 31, 2011 | ' | 337,500 | ' | ' |
Issuance of common stock for conversion of debt | 241,853 | 25 | 241,828 | ' |
Issuance of common stock for conversion of debt, shares | ' | 247,500 | ' | ' |
Issuance of common stock for services | 315,000 | 2 | 314,998 | ' |
Issuance of common stock for services, shares | ' | 22,500 | ' | ' |
Discount on convertible notes payable | 436,913 | ' | 436,913 | ' |
Net loss | -886,997 | ' | ' | -886,997 |
Balance at Aug. 31, 2012 | -499,320 | 61 | 1,675,205 | -2,174,586 |
Balance, shares at Aug. 31, 2012 | 607,500 | 607,500 | ' | ' |
Shares issued for rounding due to stock split | ' | 539 | ' | ' |
Issuance of common stock for conversion of debt | 479,860 | 1,462 | 478,398 | ' |
Issuance of common stock for conversion of debt, shares | 14,626,300 | 14,626,300 | ' | ' |
Discount on convertible notes payable | 744,617 | ' | 744,617 | ' |
Net loss | -860,301 | ' | ' | -860,301 |
Balance at Aug. 31, 2013 | ($135,144) | $1,523 | $2,898,220 | ($3,034,887) |
Balance, shares at Aug. 31, 2013 | 15,234,339 | 15,234,339 | ' | ' |
Statement_of_Cash_Flows
Statement of Cash Flows (USD $) | 12 Months Ended | 47 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | |
Operating activities | ' | ' | ' |
Net loss | ($860,301) | ($886,997) | ($3,034,887) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Common stock issued for services | ' | 315,000 | 935,000 |
Amortization of discount on convertible note payable | 373,900 | 236,547 | 610,447 |
Changes in operating assets and liabilities: | ' | ' | ' |
Prepaid expenses | ' | 2,086 | ' |
Accounts payable and accrued liabilities | 61,327 | -31,937 | 92,381 |
Accrued interest payable | 33,367 | 42,412 | 75,779 |
Net cash used by operating activities | -391,707 | -322,889 | -1,321,280 |
INVESTING ACTIVITIES | ' | ' | ' |
Net cash used by investing activities | ' | ' | ' |
FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from advances | 464,245 | 280,372 | 1,334,970 |
Proceeds from issuance of common stock | ' | ' | 61,500 |
Net cash provided by financing activities | 464,245 | 280,372 | 1,396,470 |
Net (decrease) increase in cash | 72,538 | -42,517 | 75,190 |
Cash at beginning of period | 2,652 | 45,169 | ' |
Cash at end of period | 75,190 | 2,652 | 75,190 |
Cash paid during the period for: | ' | ' | ' |
Interest | ' | ' | ' |
Taxes | ' | ' | ' |
Common stock issued for services | ' | 315,000 | 935,000 |
Common stock issued for conversion of debt | $477,745 | $241,853 | $719,598 |
BACKGROUND_INFORMATION
BACKGROUND INFORMATION | 12 Months Ended |
Aug. 31, 2013 | |
BACKGROUND INFORMATION [Abstract] | ' |
BACKGROUND INFORMATION | ' |
1. BACKGROUND INFORMATION | |
The Company was incorporated in the State of Florida on September 21, 2009. The Company's original business plan was to design and sell a woman's line of jeans and other apparel branded as "Obscene Brand Jeans." The Company's corporate headquarters is located in Sarasota, Florida. The Company's fiscal year ends August 31. | |
On November 10, 2011, the Company formed Obscene Interactive, LLC ("Obscene Interactive"), a wholly-owned subsidiary to pursue emerging opportunities in the online and social gaming industry. Obscene Interactive has begun identifying potential acquisition targets in the social media industry and engaged Street Source, LLC on May 9, 2012 to develop a game for the Company through a joint venture agreement. See Note 4. | |
On October 4, 2013, OBJE purchased Source Street's interest in Novalon Technologies LLC and Source Street's rights to 20% of the game and profits that resulted from the Revised Joint Venture Agreement. As of October 4, 2013, Novalon Technologies LLC, brand name and intellectual property under Novalon Games are collectively a wholly owned subsidiary of the Company. |
GOING_CONCERN
GOING CONCERN | 12 Months Ended |
Aug. 31, 2013 | |
GOING CONCERN [Abstract] | ' |
GOING CONCERN | ' |
2. GOING CONCERN | |
For the year ended August 31, 2013, the Company had a net loss of $860,301 and negative cash flow from operating activities of $391,707. As of August 31, 2013, the Company has negative working capital of $93,502. The Company has not emerged from the development stage. | |
These factors raise a substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the inability of the Company to continue as a going concern. | |
The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business. | |
Management has plans to address the Company's financial situation as follows: | |
In the near term, management plans to continue to focus on raising the funds necessary to fully implement the Company's business plan. Management will continue to seek out debt financing to obtain the capital required to meet the Company's financial obligations. There is no assurance, however, that lenders will continue to advance capital to the Company or that the new business operations will be profitable. The possibility of failure in obtaining additional funding and the potential inability to achieve profitability raise doubts about the Company's ability to continue as a going concern. | |
In the long term, management believes that the Company's projects and initiatives will be successful and will provide cash flow to the Company which will be used to finance the Company's future growth. However, there can be no assurances that the Company's planned activities will be successful, or that the Company will ultimately attain profitability. The Company's long term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to ultimately achieve adequate profitability and cash flows from operations to sustain its operations. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
3. SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
The significant accounting policies followed are: | |||||||||||||||||
Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Cash and cash equivalents - All cash, other than held in escrow, is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents. | |||||||||||||||||
Research and development expenses - Expenditures for research and development of products are expensed as incurred. There have been no research and development costs incurred for the period ended August 31, 2013. | |||||||||||||||||
Common stock - The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied. | |||||||||||||||||
Revenue recognition - The Company has no current source of revenue, therefore, the Company has not yet adopted any policy regarding the recognition of revenues or related cost of goods. | |||||||||||||||||
Advertising Costs - The Company's policy regarding advertising is to expense advertising costs as incurred. The Company incurred advertising costs of $30,221 for the year ended August 31, 2013. | |||||||||||||||||
Income Taxes - Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | |||||||||||||||||
The Company adopted the provisions of FASB ASC 740-10 "Uncertainty in Income Taxes" (ASC 740-10), on January 1, 2007. The Company has not recognized a liability as a result of the implementation of ASC 740-10. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there is no unrecognized benefit since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. | |||||||||||||||||
Earnings (Loss) Per Share - Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered antidilutive and thus are excluded from the calculation. At August 31, 2013, the Company did not have any potentially dilutive common shares. | |||||||||||||||||
On November 13, 2012, the Company effected a one-for-40 reverse stock split. All share and per share amounts have been retroactively restated to reflect the reverse split. This presentation is consistent with the guidance in ASC 260-10-55-12, Earnings Per Share, which requires retroactive restatement of earnings per share if a capital structure change due to a stock dividend, stock split or reverse split occurs after the date of the latest balance sheet, but before the release of the financial statements or the effective date of the registration statement, whichever is later. | |||||||||||||||||
Financial instruments - In September 2006, the Financial Accounting Standards Board (FASB) introduced a framework for measuring fair value and expanded required disclosure about fair value measurements of assets and liabilities. The Company adopted the standard for those financial assets and liabilities as of the beginning of the 2009 fiscal year and the impact of adoption was not significant. FASB Accounting Standards Codification (ASC) 820 "Fair Value Measurements and Disclosures" (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | |||||||||||||||||
· | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||||||
· | Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||||||||||||||||
· | Level 3 - Inputs that are both significant to the fair value measurement and unobservable. | ||||||||||||||||
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of August 31, 2013. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, accrued compensation and accrued expenses. The fair value of the Company's notes payable is estimated based on current rates that would be available for debt of similar terms which is not significantly different from its stated value. | |||||||||||||||||
The following table presents assets that were measured and recognized at fair value as of August 31, 2013 and 2012 and the years then ended on a recurring and nonrecurring basis: | |||||||||||||||||
Total | |||||||||||||||||
Realized | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||
$ | - | $ | - | $ | - | $ | - | ||||||||||
Totals | $ | - | $ | - | $ | - | $ | - | |||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to: | |||||||||||||||||
· | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and | ||||||||||||||||
· | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | ||||||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 is not expected to have a material impact on our financial position or results of operations. | |||||||||||||||||
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations. |
JOINT_VENTURES
JOINT VENTURES | 12 Months Ended |
Aug. 31, 2013 | |
JOINT VENTURES [Abstract] | ' |
JOINT VENTURES | ' |
4. JOINT VENTURES | |
On May 9, 2012, we entered into a joint venture agreement (the "Joint Venture Agreement") with Source Street, LLC, a Texas limited liability company ("Source Street"). The purpose of the joint venture is to fund the planning, development and launch of online and mobile games across social platforms for fun, educational and corporate training purposes. We will contribute the working capital for the joint venture and Source Street will contribute its knowledge and development skills to complete the design and launch of online and mobile games. We paid $5,000 to the joint venture upon signing the agreement and will make weekly payments of $1,500 for the term of the joint venture. We will share profits and losses of the joint venture equally with Source Street. | |
On July 9, 2012, we revised the Joint Venture Agreement (the "Revised Joint Venture Agreement") with Source Street. Under the terms of the Revised Joint Venture Agreement, we are required to provide oversight and management toward the development of online and social games. Source Street will identify and coordinate the development team. We will provide funding for the joint venture in the amount of $2,500 per week during the period of development of the first game. Ownership of the game and profits and losses will be split 80% to OBJE and 20% to Source Street. The Revised Joint Venture Agreement can be terminated by a 30-day notice from either party. We have paid $137,500 to Source Street pursuant to the Revised Joint Venture Agreement. We developed Phantasmic and Creature Taverns with Source Street. | |
On May 21, 2013, the joint venture formed Novalon Technologies, LLC ("Novalon") as the operating entity for the joint venture. | |
On October 4, 2013, OBJE purchased Source Street's interest in Novalon and Source Street's rights to 20% of the game and profits that resulted from the Revised Joint Venture Agreement. The total consideration for the purchase was $25,000. | |
On July 20, 2013, we entered into a joint venture agreement (the "Agreement") with Bluff Wars, Inc. ("BWI") to develop the Android version of its existing game Bluff Wars. The purpose of the Agreement is to fund the development and launch of Bluff Wars within the Android marketplace. OBJE funded the development of Bluff Wars (Android version) for $30,000 during the year ended August 31, 2013. This represented OBJE's full commitment under the Agreement. OBJE also has the option to work further with developer Fangtooth Studios and BWI to market, design and distribute existing and planned games for online, social and mobile applications. OBJE has also agreed to market the game and place it in the Google Play® platform. The Android version of the game was launched in September 2013. We began to generate revenue from the sale of the game at that time. | |
During the years ended August 31, 2013 and 2012, we recognized impairment of our investment in joint ventures in the amount of $157,500 and $34,000, respectively. This represented a complete impairment of those investments due to the uncertainty about whether the carrying amount is recoverable. The joint ventures represent start-up operations without a track record of generating revenue or positive cash flow. |
ADVANCES_FROM_THIRD_PARTIES
ADVANCES FROM THIRD PARTIES | 12 Months Ended |
Aug. 31, 2013 | |
ADVANCES FROM THIRD PARTIES [Abstract] | ' |
ADVANCES FROM THIRD PARTIES | ' |
5. ADVANCES FROM THIRD PARTIES | |
During the years ended August 31, 2013 and 2012, the Company received net, non-interest bearing advances from certain third parties totaling $464,245 and $280,372, respectively. No amounts were due under these advances as of August 31, 2013. These advances are not collateralized and are due on demand. | |
On September 4, 2012, the Company agreed with the lender to refinance a portion of these advances in the amount of $25,260 into a convertible promissory note. See Note 6. | |
On October 31, 2012, the Company agreed with the lender to refinance a portion of these advances in the amount of $52,600 into a convertible promissory note. See Note 6. | |
On January 31, 2013, the Company agreed with the lender to refinance a portion of these advances in the amount of $170,412 into a convertible promissory note. See Note 6. | |
On May 31, 2013, the Company agreed with the lender to refinance a portion of these advances in the amount of $172,450 into a convertible promissory note. See Note 6. | |
On August 31, 2013, the Company agreed with the lender to refinance a portion of these advances in the amount of $323,895 into a convertible promissory note. See Note 6. |
CONVERTIBLE_NOTES_PAYABLE
CONVERTIBLE NOTES PAYABLE | 12 Months Ended | |||||||||
Aug. 31, 2013 | ||||||||||
CONVERTIBLE NOTES PAYABLE [Abstract] | ' | |||||||||
CONVERTIBLE NOTES PAYABLE | ' | |||||||||
6. CONVERTIBLE NOTES PAYABLE | ||||||||||
Convertible notes payable consist of the following as of August 31, 2013 and August 31, 2012: | ||||||||||
31-Aug-13 | 31-Aug-12 | |||||||||
Convertible note payable, dated September 26, 2011, bearing interest at 10% per annum, originally matured on February 28, 2013 and convertible into shares of common stock at $0.01 per share, extended to be due on February 28, 2014 | $ | - | $ | 27,885 | ||||||
Convertible note payable, dated August 31, 2011, bearing interest at 10% per annum, matures on August 31, 2013 and convertible into shares of common stock at $0.05 per share | 19,468 | 271,468 | ||||||||
Convertible note payable, dated January 31, 2013, bearing interest at 10% per annum, matures on January 31, 2015 and convertible into shares of common stock at $0.10 | 50,412 | - | ||||||||
Convertible note payable, dated May 31, 2013, bearing interest at 10% per annum, matures on May 31, 2015 and convertible into shares of common stock at $0.05 | 172,450 | - | ||||||||
Convertible note payable, dated August 31, 2013, bearing interest at 10% per annum, matures on August 31, 2015 and convertible into shares of common stock at $0.05 | 323,895 | - | ||||||||
Accrued interest payable | 73,664 | 42,412 | ||||||||
Total convertible notes payable and accrued interest | 639,889 | 341,765 | ||||||||
Less: current portion of convertible notes payable and accrued interest | (76,617 | ) | - | |||||||
Less: discount on noncurrent convertible notes payable | (521,630 | ) | (151,219 | ) | ||||||
Convertible notes payable, net of discount | $ | 41,642 | $ | 190,546 | ||||||
On September 4, 2012, the Company signed a Convertible Promissory Note which refinanced non-interest bearing advances in the amount of $25,260 into a convertible note payable. The Convertible Promissory Note bears interest at 10% per annum and is payable along with accrued interest on September 4, 2013. The Convertible Promissory Note is convertible into common stock at the option of the holder at the rate of $0.01 per share. This note was fully converted in accordance with the terms of the agreement during the year ended August 31, 2013. | ||||||||||
On October 31, 2012, the Company signed a Convertible Promissory Note which refinanced non-interest bearing advances in the amount of $52,600 into a convertible note payable. The Convertible Promissory Note bears interest at 10% per annum and is payable along with accrued interest on October 31, 2013. The Convertible Promissory Note is convertible into common stock at the option of the holder at the rate of $0.01 per share. This note was fully converted in accordance with the terms of the agreement during the year ended August 31, 2013. | ||||||||||
On January 31, 2013, the Company signed a Convertible Promissory Note which refinanced non-interest bearing advances in the amount of $170,413 into a convertible note payable. The Convertible Promissory Note bears interest at 10% per annum and is payable along with accrued interest on January 31, 2015. The Convertible Promissory Note is convertible into common stock at the option of the holder at the rate of $0.10 per share. | ||||||||||
On May 31, 2013, the Company signed a Convertible Promissory Note which refinanced non-interest bearing advances in the amount of $172,450 into a convertible note payable. The Convertible Promissory Note bears interest at 10% per annum and is payable along with accrued interest on May 31, 2015. The Convertible Promissory Note is convertible into common stock at the option of the holder at the rate of $0.05 per share. | ||||||||||
On August 31, 2013, the Company signed a Convertible Promissory Note which refinanced non-interest bearing advances in the amount of $323,895 into a convertible note payable. The Convertible Promissory Note bears interest at 10% per annum and is payable along with accrued interest on August 31, 2015. The Convertible Promissory Note is convertible into common stock at the option of the holder at the rate of $0.05 per share. | ||||||||||
The Company evaluated the terms of these note in accordance with ASC 815 - 40, Derivatives and Hedging - Contracts in Entity's Own Stock and determined that the underlying common stock is indexed to the Company's common stock. The Company determined that the conversion feature did not meet the definition of a liability and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. The Company evaluated the conversion feature for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the notes and was deemed to be less than the market value of underlying common stock at the inception of the note. Therefore, the Company recognized a beneficial conversion feature in the amount of $25,260 on September 4, 2012, $52,600 on October 31, 2012, $170,413 on January 31, 2013, $172,450 on May 31, 2013 and $323,895 on August 31, 2013. The beneficial conversion feature was recognized as an increase in additional paid-in capital and a discount to the Convertible Note Payable. The discount to the Convertible Note Payable is being amortized to interest expense over the life of the note. | ||||||||||
The Company evaluated the application of ASC 470-50-40/55, Debtor's Accounting for a Modification or Exchange of Debt Instrument as it applies to the three notes listed above and concluded that the revised terms constituted a debt modification rather than a debt extinguishment because the present value of the cash flow under the terms of each of the new instruments was less than 10% from the present value of the remaining cash flows under the terms of the original notes. No gain or loss on the modifications was required to be recognized. | ||||||||||
On September 4, 2012, the holder of the Convertible Note Payable, dated on the same date, elected to convert principal in the amount of $25,260 into 126,300 shares of common stock. On that date, the unamortized discount related to this principal was $25,260. The unamortized discount was immediately amortized to interest expense upon conversion. | ||||||||||
On November 16, 2012, the holder of the Convertible Note Payable, dated October 31, 2012, elected to convert principal in the amount of $52,600 into 5,260,000 shares of common stock. On that date, the unamortized discount related to this principal was $52,600. The unamortized discount was immediately amortized to interest expense upon conversion. | ||||||||||
During the year ended August 31, 2013, the holders of the Convertible Note Payable dated September 26, 2011, elected to convert principal and accrued interest in the amounts shown below into shares of common stock at a rate of $0.01 per share. This note originally matured on February 28, 2013. On March 1, 2013, the note was extended to be due on February 28, 2014. There were no unamortized discounts on the principal converted below as all discounts had been fully amortized as of the original due date. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement. | ||||||||||
Date | Amount | Number of | ||||||||
Converted | Shares Issued | |||||||||
2-Apr-13 | $ | 7,800 | 780,000 | |||||||
8-Apr-13 | 7,800 | 780,000 | ||||||||
26-Apr-13 | 4,600 | 460,000 | ||||||||
17-May-13 | 9,800 | 980,000 | ||||||||
Total | $ | 30,000 | 3,000,000 | |||||||
During the year ended August 31, 2013, the holders of the Convertible Note Payable dated August 31, 2011, elected to convert principal and accrued interest in the amounts shown below into shares of common stock at a rate of $0.05 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement. | ||||||||||
Date | Amount | Number of | Unamortized | |||||||
Converted | Shares Issued | Discount | ||||||||
26-Nov-12 | $ | 58,000 | 1,160,000 | $ | 24,591 | |||||
5-Feb-13 | 35,000 | 700,000 | 11,130 | |||||||
23-May-13 | 24,500 | 490,000 | 4,896 | |||||||
4-Jun-13 | 24,500 | 490,000 | 3,617 | |||||||
6-Jun-13 | 25,000 | 500,000 | 3,500 | |||||||
19-Jun-13 | 25,000 | 500,000 | 3,400 | |||||||
11-Jul-13 | 30,000 | 600,000 | 2,690 | |||||||
27-Aug-13 | 30,000 | 600,000 | 696 | |||||||
Total | $ | 252,000 | 5,040,000 | $ | 59,560 | |||||
On August 13, 2013, the holder of the Convertible Note Payable, dated January 31, 2013, elected to convert principal in the amount of $120,000 into 1,200,000 shares of common stock. On that date, the unamortized discount related to this principal was $90,247. The unamortized discount was immediately amortized to interest expense upon conversion. No gain or loss was recognized on the conversion as it occurred within the terms of the agreement. | ||||||||||
The Company accrued interest in the amount of $33,367 during the year ended August 31, 2013. As of August 31, 2013, accrued interest payable was $73,664 and is included in convertible notes payable as of that date. During the year ended August 31, 2013, discount on convertible notes payable in the amount of $373,900 was amortized to interest expense. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||
Aug. 31, 2013 | |||||||
INCOME TAXES [Abstract] | ' | ||||||
INCOME TAXES | ' | ||||||
7. INCOME TAXES | |||||||
There are no current or deferred income tax expense or benefit for the period ended August 31, 2013. | |||||||
The provision for income taxes is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The items causing this difference are as follows: | |||||||
Year ended | Year ended | ||||||
31-Aug-13 | 31-Aug-12 | ||||||
Tax benefit at U.S. statutory rate | $ | 301,000 | $ | 248,000 | |||
Permanent differences - stock compensation | - | -88,000 | |||||
Valuation allowance | (301,000 | ) | -160,000 | ||||
$ | - | $ | - | ||||
The Company has net operating loss carryforwards of $2,100,000 which will begin expiring in 2026. |
PREFERRED_STOCK
PREFERRED STOCK | 12 Months Ended |
Aug. 31, 2013 | |
PREFERRED STOCK [Abstract] | ' |
PREFERRED STOCK | ' |
8. PREFERRED STOCK | |
The Company's board of directors has authorized 10,000,000 million shares of preferred stock with a par value of $0.0001 to be issued in series with terms and conditions to be determined by the board of directors. |
COMMON_STOCK
COMMON STOCK | 12 Months Ended |
Aug. 31, 2013 | |
COMMON STOCK [Abstract] | ' |
COMMON STOCK | ' |
9. COMMON STOCK | |
On November 13, 2012, the Company effected a one-for-40 reverse stock split. All share and per share amounts have been retroactively restated to reflect the reverse split. | |
On December 20, 2010, the Company issued 25,000 shares of common stock to Kern Capital Corp. for services. The shares were valued at $50,000 based on the value of the services received. There was no readily determinable market value for the shares, as they were not traded on any exchanges during that time period. | |
On August 22, 2011, the Company issued 12,500 shares of common stock to a third party for services. The shares were valued at $45.60 per share based on the closing market price of the stock on the date of issuance. As a result the Company recognized stock based compensation expense of $570,000. | |
On September 27, 2011, the Company issued 15,000 shares of common stock as a result of the conversion of the Convertible Note Payable in the amount of $6,000. | |
On October 20, 2011, the Company issued 112,500 shares of common stock as a result of the conversion of the Convertible Note Payable in the amount of $45,000. | |
On November 3, 2011, the Company issued 22,500 shares of common stock to a third party for services. The shares were valued at $315,000 based on the closing market price of the stock on the date of issuance. | |
On March 5, 2012, the Company issued 120,000 shares of common stock as a result of the conversion of Convertible Notes Payable in the amount of $240,000. | |
During the year ended August 31, 2013, the Company issued 14,626,300 shares of common stock for conversion of Convertible Notes Payable in the amount of $479,860. See Note 6. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | ||||||
Aug. 31, 2013 | |||||||
SUBSEQUENT EVENTS [Abstract] | ' | ||||||
SUBSEQUENT EVENTS | ' | ||||||
10. SUBSEQUENT EVENTS | |||||||
Subsequent to August 31, 2013, the holders of the Convertible Note Payable dated August 31, 2011, elected to convert principal and accrued interest in the amounts shown below into shares of common stock at a rate of $0.05 per share. There were no unamortized discounts on the principal converted below as all discounts had been fully amortized as of the due date, August 31, 2013. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement. | |||||||
Date | Amount | Number of | |||||
Converted | Shares Issued | ||||||
1-Oct-13 | 30,000 | 600,000 | |||||
4-Oct-13 | 30,000 | 600,000 | |||||
15-Oct-13 | 15,000 | 300,000 | |||||
Total | $ | 75,000 | 1,500,000 | ||||
On October 8, 2013, the holder of the Convertible Note Payable, dated January 31, 2013, elected to convert principal in the amount of $60,000 into 600,000 shares of common stock. On that date, the unamortized discount related to this principal was $28,175. The unamortized discount was immediately amortized to interest expense upon conversion. No gain or loss was recognized on the conversion as it occurred within the terms of the agreement. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Aug. 31, 2013 | |||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||
Use of Estimates | ' | ||
Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
Cash and cash equivalents | ' | ||
Cash and cash equivalents - All cash, other than held in escrow, is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents. | |||
Research and development expenses | ' | ||
Research and development expenses - Expenditures for research and development of products are expensed as incurred. There have been no research and development costs incurred for the period ended August 31, 2013. | |||
Common Stock | ' | ||
Common stock - The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied. | |||
Revenue recognition | ' | ||
Revenue recognition - The Company has no current source of revenue, therefore, the Company has not yet adopted any policy regarding the recognition of revenues or related cost of goods. | |||
Advertising costs | ' | ||
Advertising Costs - The Company's policy regarding advertising is to expense advertising costs as incurred. The Company incurred advertising costs of $30,221 for the year ended August 31, 2013. | |||
Income Taxes | ' | ||
Income Taxes - Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | |||
The Company adopted the provisions of FASB ASC 740-10 "Uncertainty in Income Taxes" (ASC 740-10), on January 1, 2007. The Company has not recognized a liability as a result of the implementation of ASC 740-10. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there is no unrecognized benefit since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. | |||
Earnings (loss) per share | ' | ||
Earnings (Loss) Per Share - Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered antidilutive and thus are excluded from the calculation. At August 31, 2013, the Company did not have any potentially dilutive common shares. | |||
On November 13, 2012, the Company effected a one-for-40 reverse stock split. All share and per share amounts have been retroactively restated to reflect the reverse split. This presentation is consistent with the guidance in ASC 260-10-55-12, Earnings Per Share, which requires retroactive restatement of earnings per share if a capital structure change due to a stock dividend, stock split or reverse split occurs after the date of the latest balance sheet, but before the release of the financial statements or the effective date of the registration statement, whichever is later. | |||
Financial instruments | ' | ||
Financial instruments - In September 2006, the Financial Accounting Standards Board (FASB) introduced a framework for measuring fair value and expanded required disclosure about fair value measurements of assets and liabilities. The Company adopted the standard for those financial assets and liabilities as of the beginning of the 2009 fiscal year and the impact of adoption was not significant. FASB Accounting Standards Codification (ASC) 820 "Fair Value Measurements and Disclosures" (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | |||
· | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||
· | Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||
· | Level 3 - Inputs that are both significant to the fair value measurement and unobservable. | ||
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of August 31, 2013. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, accrued compensation and accrued expenses. The fair value of the Company's notes payable is estimated based on current rates that would be available for debt of similar terms which is not significantly different from its stated value. | |||
Recent accounting pronouncements | ' | ||
Recent Accounting Pronouncements | |||
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to: | |||
· | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and | ||
· | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | ||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 is not expected to have a material impact on our financial position or results of operations. | |||
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||||||
Schedule of Assets Measured and Recognized at Fair Value on a Recurring and Nonrecurring Basis | ' | ||||||||||||||||
Total | |||||||||||||||||
Realized | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||
$ | - | $ | - | $ | - | $ | - | ||||||||||
Totals | $ | - | $ | - | $ | - | $ | - |
CONVERTIBLE_NOTES_PAYABLE_Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 12 Months Ended | |||||||||
Aug. 31, 2013 | ||||||||||
CONVERTIBLE NOTES PAYABLE [Abstract] | ' | |||||||||
Convertible notes payable | ' | |||||||||
Convertible notes payable consist of the following as of August 31, 2013 and August 31, 2012: | ||||||||||
31-Aug-13 | 31-Aug-12 | |||||||||
Convertible note payable, dated September 26, 2011, bearing interest at 10% per annum, originally matured on February 28, 2013 and convertible into shares of common stock at $0.01 per share, extended to be due on February 28, 2014 | $ | - | $ | 27,885 | ||||||
Convertible note payable, dated August 31, 2011, bearing interest at 10% per annum, matures on August 31, 2013 and convertible into shares of common stock at $0.05 per share | 19,468 | 271,468 | ||||||||
Convertible note payable, dated January 31, 2013, bearing interest at 10% per annum, matures on January 31, 2015 and convertible into shares of common stock at $0.10 | 50,412 | - | ||||||||
Convertible note payable, dated May 31, 2013, bearing interest at 10% per annum, matures on May 31, 2015 and convertible into shares of common stock at $0.05 | 172,450 | - | ||||||||
Convertible note payable, dated August 31, 2013, bearing interest at 10% per annum, matures on August 31, 2015 and convertible into shares of common stock at $0.05 | 323,895 | - | ||||||||
Accrued interest payable | 73,664 | 42,412 | ||||||||
Total convertible notes payable and accrued interest | 639,889 | 341,765 | ||||||||
Less: current portion of convertible notes payable and accrued interest | (76,617 | ) | - | |||||||
Less: discount on noncurrent convertible notes payable | (521,630 | ) | (151,219 | ) | ||||||
Convertible notes payable, net of discount | $ | 41,642 | $ | 190,546 | ||||||
Convertible Promissory Note dated September 26, 2011 [Member] | ' | |||||||||
Debt Instrument [Line Items] | ' | |||||||||
Schedule of Convertible Notes Having Been Converted | ' | |||||||||
Date | Amount | Number of | ||||||||
Converted | Shares Issued | |||||||||
2-Apr-13 | $ | 7,800 | 780,000 | |||||||
8-Apr-13 | 7,800 | 780,000 | ||||||||
26-Apr-13 | 4,600 | 460,000 | ||||||||
17-May-13 | 9,800 | 980,000 | ||||||||
Total | $ | 30,000 | 3,000,000 | |||||||
Convertible Promissory Note dated August 31, 2011 [Member] | ' | |||||||||
Debt Instrument [Line Items] | ' | |||||||||
Schedule of Convertible Notes Having Been Converted | ' | |||||||||
Date | Amount | Number of | Unamortized | |||||||
Converted | Shares Issued | Discount | ||||||||
26-Nov-12 | $ | 58,000 | 1,160,000 | $ | 24,591 | |||||
5-Feb-13 | 35,000 | 700,000 | 11,130 | |||||||
23-May-13 | 24,500 | 490,000 | 4,896 | |||||||
4-Jun-13 | 24,500 | 490,000 | 3,617 | |||||||
6-Jun-13 | 25,000 | 500,000 | 3,500 | |||||||
19-Jun-13 | 25,000 | 500,000 | 3,400 | |||||||
11-Jul-13 | 30,000 | 600,000 | 2,690 | |||||||
27-Aug-13 | 30,000 | 600,000 | 696 | |||||||
Total | $ | 252,000 | 5,040,000 | $ | 59,560 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||
Aug. 31, 2013 | |||||||
INCOME TAXES [Abstract] | ' | ||||||
Schedule of Income Tax Provision | ' | ||||||
Year ended | Year ended | ||||||
31-Aug-13 | 31-Aug-12 | ||||||
Tax benefit at U.S. statutory rate | $ | 301,000 | $ | 248,000 | |||
Permanent differences - stock compensation | - | -88,000 | |||||
Valuation allowance | (301,000 | ) | -160,000 | ||||
$ | - | $ | - |
SUBSEQUENT_EVENTS_Tables
SUBSEQUENT EVENTS (Tables) | 12 Months Ended | ||||||
Aug. 31, 2013 | |||||||
SUBSEQUENT EVENTS [Abstract] | ' | ||||||
Schedule of Subsequent Events | ' | ||||||
Date | Amount | Number of | |||||
Converted | Shares Issued | ||||||
1-Oct-13 | 30,000 | 600,000 | |||||
4-Oct-13 | 30,000 | 600,000 | |||||
15-Oct-13 | 15,000 | 300,000 | |||||
Total | $ | 75,000 | 1,500,000 |
GOING_CONCERN_Details
GOING CONCERN (Details) (USD $) | 11 Months Ended | 12 Months Ended | 47 Months Ended | ||
Aug. 31, 2010 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Aug. 31, 2013 | |
GOING CONCERN [Abstract] | ' | ' | ' | ' | ' |
Net loss | $20,572 | $860,301 | $886,997 | $1,267,017 | $3,034,887 |
Working capital | ' | 93,502 | ' | ' | 93,502 |
Net cash used in operations | ' | $391,707 | $322,889 | ' | $1,321,280 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended |
Aug. 31, 2013 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
Advertising expense | $30,221 |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Assets Measured and Recognized at Fair Value) (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets measured on recurring and nonrecurring basis | ' | ' |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets measured on recurring and nonrecurring basis | ' | ' |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets measured on recurring and nonrecurring basis | ' | ' |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets measured on recurring and nonrecurring basis | ' | ' |
JOINT_VENTURES_Details
JOINT VENTURES (Details) (USD $) | 12 Months Ended | 47 Months Ended | 1 Months Ended | 0 Months Ended | 14 Months Ended | 12 Months Ended | |||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | 31-May-12 | 9-May-12 | Oct. 08, 2013 | Aug. 31, 2013 | Jul. 09, 2012 | Aug. 31, 2013 | |
Source Street, LLC Original Joint Venture Agreement [Member] | Source Street, LLC Original Joint Venture Agreement [Member] | Source Street, LLC Amended Joint Venture Agreement [Member] | Source Street, LLC Amended Joint Venture Agreement [Member] | Source Street, LLC Amended Joint Venture Agreement [Member] | Bluff Wars Joint Venture [Member] | ||||
Joint Venture Agreements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital contribution to invest in joint venture | ' | ' | ' | $5,000 | ' | ' | $137,500 | ' | $30,000 |
The weekly payment owed for the term of the joint venture agreement | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' |
The weekly payment owed during the period of development of the first game, per the amended joint venture agreement | ' | ' | ' | ' | ' | ' | ' | 2,500 | ' |
The company's ownership percentage in the joint venture | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' |
The total consideration paid by the company to purchase the remaining ownership percentage from the partner in joint venture | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' |
Impairment of investment in joint venture | $157,500 | $34,000 | $191,500 | ' | ' | ' | ' | ' | ' |
ADVANCES_FROM_THIRD_PARTIES_De
ADVANCES FROM THIRD PARTIES (Details) (USD $) | 12 Months Ended | 47 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Sep. 04, 2012 | Aug. 31, 2013 | 31-May-13 | Jan. 31, 2013 | Oct. 31, 2012 | |
Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | ||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from advances | $464,245 | $280,372 | $1,334,970 | ' | ' | ' | ' | ' |
Short-term debt, refinanced amount | ' | ' | ' | $25,260 | $323,895 | $172,450 | $170,412 | $52,600 |
CONVERTIBLE_NOTES_PAYABLE_Deta
CONVERTIBLE NOTES PAYABLE (Details) (USD $) | 12 Months Ended | 47 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Nov. 16, 2012 | Sep. 04, 2012 | Aug. 31, 2013 | 31-May-13 | Jan. 31, 2013 | Oct. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | |
Convertible Promissory Notes [Member] | Convertible Promissory Notes [Member] | Convertible Promissory Notes [Member] | Convertible Promissory Notes [Member] | Convertible Promissory Notes [Member] | Convertible Promissory Notes [Member] | Convertible Promissory Note dated August 31, 2011 [Member] | Convertible Promissory Note dated September 26, 2011 [Member] | Convertible Promissory Note dated January 31, 2013 [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term debt, refinanced amount | ' | ' | ' | ' | $25,260 | $323,895 | $172,450 | $170,413 | $52,600 | ' | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ' |
Debt instrument, maturity date | ' | ' | ' | ' | 4-Sep-13 | 15-Aug-15 | 31-May-15 | 31-Jan-15 | 31-Oct-13 | 31-Aug-13 | 28-Feb-14 | ' |
Debt conversion, price per share | ' | ' | ' | ' | $0.01 | $0.05 | $0.05 | $0.10 | $0.01 | $0.05 | $0.01 | ' |
Beneficial conversion feature | ' | ' | ' | ' | 25,260 | 323,895 | 172,450 | 170,413 | 52,600 | ' | ' | ' |
Debt conversion, original debt, amount converted | ' | ' | ' | 52,600 | 25,260 | ' | ' | ' | ' | ' | ' | 120,000 |
Debt conversion, shares issued | ' | ' | ' | 5,260,000 | 126,300 | ' | ' | ' | ' | 5,040,000 | 3,000,000 | 1,200,000 |
Unamortized discount on debt instrument, noncurrent portion | 521,630 | 151,219 | 521,630 | 52,600 | 25,260 | ' | ' | ' | ' | ' | ' | 90,247 |
Accrued interest | 73,664 | 42,412 | 73,664 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 33,367 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of discount on convertible note payable | $373,900 | $236,547 | $610,447 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONVERTIBLE_NOTES_PAYABLE_Sche
CONVERTIBLE NOTES PAYABLE (Schedule of Convertible Notes Payable) (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' |
Convertible note payable, gross | ' | ' |
Accrued interest payable | 73,664 | 42,412 |
Total convertible notes payable and accrued interest | 639,889 | 341,765 |
Less: current portion of convertible notes payable and accrued interest | -76,617 | ' |
Less: discount on convertible notes payable | -521,630 | -151,219 |
Noncurrent convertible notes payable, net of discount | 41,642 | 190,546 |
Convertible Promissory Note dated September 26, 2011 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate | 10.00% | ' |
Debt instrument, maturity date | 28-Feb-14 | ' |
Debt conversion, price per share | $0.01 | ' |
Convertible note payable, gross | ' | 27,885 |
Convertible Promissory Note dated August 31, 2011 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate | 10.00% | ' |
Debt instrument, maturity date | 31-Aug-13 | ' |
Debt conversion, price per share | $0.05 | ' |
Convertible note payable, gross | 19,468 | 271,468 |
Convertible Promissory Note dated January 31, 2013 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate | 10.00% | ' |
Debt instrument, maturity date | 31-Jan-15 | ' |
Debt conversion, price per share | $0.10 | ' |
Convertible note payable, gross | 50,412 | ' |
Convertible Promissory Note dated May 31, 2013 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate | 10.00% | ' |
Debt instrument, maturity date | 31-May-15 | ' |
Debt conversion, price per share | $0.05 | ' |
Convertible note payable, gross | 172,450 | ' |
Convertible Promissory Note dated August 31, 2013 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate | 10.00% | ' |
Debt instrument, maturity date | 31-Aug-15 | ' |
Debt conversion, price per share | $0.05 | ' |
Convertible note payable, gross | $323,895 | ' |
CONVERTIBLE_NOTES_PAYABLE_Sche1
CONVERTIBLE NOTES PAYABLE (Schedule of Convertible Notes Payable One) (Details) (Convertible Promissory Note dated September 26, 2011 [Member], USD $) | 12 Months Ended |
Aug. 31, 2013 | |
Debt Conversion [Line Items] | ' |
Amount Converted | $30,000 |
Number of Shares Issued | 3,000,000 |
April 2, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 7,800 |
Number of Shares Issued | 780,000 |
April 8, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 7,800 |
Number of Shares Issued | 780,000 |
April 26, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 4,600 |
Number of Shares Issued | 460,000 |
May 17, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | $9,800 |
Number of Shares Issued | 980,000 |
CONVERTIBLE_NOTES_PAYABLE_Sche2
CONVERTIBLE NOTES PAYABLE (Schedule of Convertible Notes Payable Two) (Details) (Convertible Promissory Note dated August 31, 2011 [Member], USD $) | 12 Months Ended |
Aug. 31, 2013 | |
Debt Conversion [Line Items] | ' |
Amount Converted | $252,000 |
Number of Shares Issued | 5,040,000 |
Unamortized Discount | 59,560 |
November 26, 2012 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 58,000 |
Number of Shares Issued | 1,160,000 |
Unamortized Discount | 24,591 |
February 5, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 35,000 |
Number of Shares Issued | 700,000 |
Unamortized Discount | 11,130 |
May 23, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 24,500 |
Number of Shares Issued | 490,000 |
Unamortized Discount | 4,896 |
June 4, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 24,500 |
Number of Shares Issued | 490,000 |
Unamortized Discount | 3,617 |
June 6, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 25,000 |
Number of Shares Issued | 500,000 |
Unamortized Discount | 3,500 |
June 19, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 25,000 |
Number of Shares Issued | 500,000 |
Unamortized Discount | 3,400 |
July 11, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 30,000 |
Number of Shares Issued | 600,000 |
Unamortized Discount | 2,690 |
August 27, 2013 [Member] | ' |
Debt Conversion [Line Items] | ' |
Amount Converted | 30,000 |
Number of Shares Issued | 600,000 |
Unamortized Discount | $696 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
INCOME TAXES [Abstract] | ' | ' |
Tax benefit at U.S. statutory rate | $301,000 | $248,000 |
Permanent differences - stock compensation | ' | -88,000 |
Valuation allowance | -301,000 | -160,000 |
Total | ' | ' |
Net operating loss carryforwards | $2,100,000 | ' |
Net operating loss carry-forward expiration date | 31-Dec-26 | ' |
PREFERRED_STOCK_Details
PREFERRED STOCK (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
PREFERRED STOCK [Abstract] | ' | ' |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value per share | $0.00 | $0.00 |
COMMON_STOCK_Details
COMMON STOCK (Details) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||
Nov. 13, 2013 | 17-May-13 | Apr. 02, 2013 | Apr. 08, 2013 | Feb. 05, 2013 | Nov. 16, 2012 | Sep. 04, 2012 | 23-May-13 | Apr. 26, 2013 | Nov. 26, 2012 | Mar. 05, 2012 | Nov. 03, 2011 | Oct. 20, 2011 | Sep. 27, 2011 | Aug. 22, 2011 | Dec. 20, 2010 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
COMMON STOCK [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | 10,000,000 | ' |
Preferred stock, par value per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 | ' |
Preferred stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Common stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 100,000,000 | ' |
Common stock, par value per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 | ' |
Stock split ratio | 0.025 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity issuance price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $45.60 | ' | ' | ' | ' |
Issuance of common stock for services, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,500 | ' | ' | 12,500 | 25,000 | ' | ' | ' |
Issuance of common stock for services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $315,000 | ' | ' | ' | $50,000 | ' | $315,000 | $50,000 |
Issuance of common stock for conversion of debt, shares | ' | 980,000 | 780,000 | 780,000 | 700,000 | 5,260,000 | 126,300 | 490,000 | 460,000 | 1,160,000 | 120,000 | ' | 112,500 | 15,000 | ' | ' | 14,626,300 | ' | ' |
Issuance of common stock for conversion of debt | ' | 9,800 | 7,800 | 7,800 | 35,000 | 52,600 | 25,260 | 24,500 | 4,600 | 58,000 | 240,000 | ' | 45,000 | 6,000 | ' | ' | 479,860 | 241,853 | ' |
Stock based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $570,000 | ' | ' | ' | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Oct. 08, 2013 |
Convertible Promissory Note dated August 31, 2011 [Member] | Convertible Promissory Note dated August 31, 2011 [Member] | Convertible Promissory Note dated January 31, 2013 [Member] | Convertible Promissory Note dated January 31, 2013 [Member] | |||
Subsequent Event [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Debt conversion, price per share | ' | ' | $0.05 | $0.05 | ' | ' |
Debt conversion, original debt, amount converted | ' | ' | ' | ' | $120,000 | $60,000 |
Debt conversion, shares issued | ' | ' | 5,040,000 | 1,500,000 | 1,200,000 | 600,000 |
Unamortized discount on debt instrument, noncurrent portion | $521,630 | $151,219 | ' | ' | $90,247 | $28,175 |
SUBSEQUENT_EVENTS_Schedule_of_
SUBSEQUENT EVENTS (Schedule of Convertible Notes Payable) (Details) (Convertible Promissory Note dated August 31, 2011 [Member], USD $) | 12 Months Ended |
Aug. 31, 2013 | |
Subsequent Event [Line Items] | ' |
Amount Converted | $252,000 |
Number of Shares Issued | 5,040,000 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Amount Converted | 75,000 |
Number of Shares Issued | 1,500,000 |
October 1, 2013 [Member] | Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Amount Converted | 30,000 |
Number of Shares Issued | 600,000 |
October 4, 2013 [Member] | Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Amount Converted | 30,000 |
Number of Shares Issued | 600,000 |
October 15, 2013 [Member] | Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Amount Converted | $15,000 |
Number of Shares Issued | 300,000 |