Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Aug. 31, 2018
Aug. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss - continuing operations $ (1,114,908) $ (1,743,258)
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in the fair value of derivative liability 45,348 388,544
Excess value of derivative liabilities 447,680 0
Amortization of discount on convertible debt 532,907 780,293
Gain on restructuring of debt (1,033,669) 0
Loss on restructure of debt 6,409 0
Loss on conversion of debt to equity 474,648 0
Penalty on debt extension 0 306,345
Subscription receivable write off 2,172 0
Changes in operating assets and liabilities:    
Accounts receivable 0 45
Inventory 5,480 (8,484)
Accrued officer salary 20,000 96,000
Interest payable - related party (2,011) 2,011
Accounts payable and accrued liabilities (226,502) 138,749
Net cash used in operating activities - continuing operations (842,446) (39,755)
Net cash provided by operating activities - discontinued operations 39,178 0
CASH FLOWS FROM INVESTING ACTIVITIES 0 0
CASH FLOWS FROM FINANCING ACTIVITIES    
Principal payments made on convertible notes 0 (155,000)
Proceeds from notes payable - related party 35,500 186,000
Repayments of notes payable - related party (266,500) 0
Proceeds from convertible debt 1,232,500 0
Net cash provided by financing activities - continuing operations 1,001,500 31,000
Net cash provided by financing activities - discontinued operations 0 0
Net increase in cash and cash equivalents - continuing operations 159,054 (8,755)
Net increase in cash and cash equivalents - discontinued operations 39,178 0
Cash and cash equivalents at beginning of year 1,442 10,197
Cash and cash equivalents at end of year 199,674 1,442
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 4,302 0
Income taxes paid 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued for conversion of notes payable 702,592 50,000
Preferred Stock Series B issued for cancellation of notes payable and accrued interest 1,860,249 0
Discount on Convertible Debt and Accrued Interest 1,132,663 677,439
Stock issued for commitment fee 0 68,950
Settlement of derivative   1,015,757
Accrued interest capitalized into principal of convertible notes 15,823 39,382
Note payable for loan of BTC 5,000,000 0
BTC loan to third party 5,500,000 0
Accrued preferred stock dividends $ 20,280 $ 0