OBJE paid $5,000 to the joint venture upon sig

OBJE paid $5,000 to the joint venture upon signing the agreement and will make weekly payments of $2,500 for the term of the joint venture. The Company will share profits and losses of the joint venture equally with Source Street.

During the three months ended November 30, 2012, the Company received net, non-interest bearing advances from certain third parties totaling $54,840.  The total amount due under these advances as of November 30, 2012 was $282,612.  These advances are not collateralized and are due on demand.  Interest was not imputed on these advances due to immateriality.

Convertible note payable

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.

On November 16, 2012, the holder of the Convertible Note Payable 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.

On November 26, 2012, the holders of the Convertible Note Payable dated August 31, 2011 elected to convert principal in the amount of $58,000 into 1,160,000 shares of common stock. On that date, the unamortized discount related to this principal was $24,591. The unamortized discount was immediately amortized to interest expense upon conversion.

The Company accrued interest in the amount of $7,400 during the three months ended November 30, 2012. This amount was unpaid as of November 30, 2012 and is included in convertible notes payable as of that date. During the three months ended November 30, 2012, discount on convertible notes payable in the amount of $107,183 was amortized to interest expense.