Annual report pursuant to Section 13 and 15(d)

Note 8 - Derivative Liability (Tables)

v3.8.0.1
Note 8 - Derivative Liability (Tables)
 12 Months Ended
Aug. 31, 2017
Disclosure Text Block [Abstract]  
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The Company recognized that the conversion feature embedded within its convertible debts is a financial derivative. The Generally Accepted Accounting Principles (GAAP) required that the Company’s embedded conversion option be accounted for at fair value. The following schedule shows the change in fair value of the derivative liabilities for the period ended August 31, 2016:

 
  
Derivative
  
 
  
Liability
  
Liabilities Measured at Fair Value
      
 
      
Balance as of August 31, 2015
  
$
-
  
 
        
Issuances
    
192,841
  
 
        
Revaluation loss
    
62,111
  
 
        
Balance as of August 31, 2016
  
$
254,952
  
         
Issuances
    
685,139
  
         
Redemptions
    
(1,015,757
)
         
Revaluation loss
    
388,544
  
         
Balance as of August 31, 2017
  
$
312,878
  
         
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
Derivative liabilities incurred during the period ended August 31, 2017 and 2016 were valued based upon the following assumptions and key inputs:

   
August 31,
    
August 31,
  
Assumption
  
2017
    
2016
  
Expected dividends:
    
0
%
    
0
%
Expected volatility:
    
37.8-276.9
%
    
244.4
%
Expected term (years):
  
0.04-0.50 years
    
0.20 years
  
Risk free interest rate:
    
0.26-0.98
%
    
0.26
%
Stock price
  
$
0.51-1.97
    
$
1.89