Quarterly report pursuant to Section 13 or 15(d)

LONG-TERM DEBT

v2.4.0.8
LONG-TERM DEBT
9 Months Ended
May 31, 2013
Debt Disclosure [Abstract]  
LONG-TERM DEBT

On August 11, 2011, the Company entered into a Purchase Money Promissory Note and Security Agreement in the amount of $212,813. The loan bears interest at a rate of 6% per annum, is secured by all the assets of the Company and matures on August 11, 2016. Pursuant to the initial terms of the agreement, the Company was required to make semi-annual interest only payments in the amount of $6,385 beginning on March 31, 2012 with the unpaid principal and accrued interest due at maturity on August 11, 2016. During the period ended May 31, 2013, the note holder agreed to modify the agreement whereby the interest will become due at maturity. The agreement continues to provide for one ninety-day extension at maturity upon the option of the holder. As of May 31, 2013 and August 31, 2012, the principal balance totaled $212,813 and accrued interest was $23,151 and $13,560, respectively.