v2.4.0.6

Condensed Statements of Cash Flows (USD $)	6 Months Ended		31 Months Ended
Condensed Statements of Cash Flows (USD $)	Feb. 29, 2012	Feb. 28, 2011	Feb. 29, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (210,019)	$ (5,118,024)	$ (7,118,626)
Adjustments to reconcile net loss to net used by operating activities:
Expenses paid on behalf of the Company by a related party	18,531	122,068	493,636
Impairment of intangible assets	0	500,000	500,000
Loss on settlement of debt.	0	612,475	701,078
Related party notes payable issued for services	0	0	385,000
Amortization of expenses prepaid with common stock	37,500	0	37,500
Notes payable issued for services	0	53,700	142,600
Preferred stock issued for services	36,000	265,739	826,738
Common stock issued for services	0	3,481,653	3,525,610
Changes in operating assets and liabilities:
Accounts payable	34,648	(5,188)	97,389
Accrued interest	7,090	18,386	87,732
Accrued salaries	49,864	49,589	239,864
Net Cash Used in Operating Activities	(26,386)	(19,602)	(81,479)
CASH FLOWS FROM INVESTING ACTIVITIES	0	0	0
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related party payables	25,053	0	68,160
Payments toward related-party payables	(49,994)	33,830	(90,494)
Proceeds from the sale of preferred stock	51,500	0	100,786
Proceeds from the sale of common stock	0	0	714
Contributed capital	0	0	2,500
Net Cash Provided by Financing Activities	26,559	33,830	81,666
NET INCREASE (DECREASE) IN CASH	173	14,228	187
CASH AT BEGINNING OF PERIOD	14	264
NET CASH AT END OF PERIOD	187	14,492	187
CASH PAID FOR:
Interest	0	0	17,901
Income Taxes	0	0	0
NON CASH FINANCING ACTIVITIES:
Related party note payable issued for purchase of intangible assets	0	500,000	500,000
Preferred stock issued in conversion of debt	0	17,750	1,133,145
Common stock issued in conversion of debt	0	20,450	54,079
Common stock issued upon conversion of preferred stock	15,559	0	15,559
Common stock issued for prepaid services	$ 37,500	$ 0	$ 37,500

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Flameret, Inc. 10-Q/A