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v2.4.0.6
Note 9. Advances
3 Months Ended
Oct. 31, 2012
Debt Disclosure [Abstract]  
Note 9. Advances

Note 9. Advances

The Company's principal financing source in the last two fiscal years had been from its former parent, Li-ion Motors. On October 2, 2012, the Company’s entire debt to Li-ion was assigned to Frontline Asset Management, Inc. (“Frontline”). At October 31, 2012 and July 31, 2012, the Company owed Li-ion Motors $0 and $708,602, respectively. During the three months ended October 31, 2012 and 2011, the Company received advances totaling $0 and $35,976, respectively; and made payments of $0 and $15,263 ($3,000 in cash and $12,263 in reimbursement for one leased employee), respectively.

At October 31, 2012 and July 31, 2012, the Company owed Frontline $708,602 and $0, respectively. During the three months ended October 31, 2012 and 2011, the Company received advances totaling $0 and $0, respectively; and made payments of $0 and $0, respectively. As were the terms with Li-ion Motors, the assigned debt remains and any subsequent debt we incur is interest free. No term has been set for repayment and no payment is expected until the Company has begun to become a profitable venture.