Annual report pursuant to Section 13 and 15(d)

Note 7 - Derivative Liability (Tables)

v3.10.0.1
Note 7 - Derivative Liability (Tables)
 12 Months Ended
Aug. 31, 2018
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, 2018:

   

Derivative

  
   

Liability

  

Liabilities Measured at Fair Value

        
         

Balance as of August 31, 2016

   $ 254,952  
         

Issuances

     685,139  
         

Redemptions / conversions

     (1,015,757

)
         

Revaluation loss

     388,544  
         

Balance as of August 31, 2017

   $ 312,878  
         

Issuances

     1,565,487  
         

Redemptions / conversions

     (1,207,308

)
         

Reclass from sale of discontinued operations

     1,601,007  
         

Revaluation loss

     45,348  
         

Balance as of August 31, 2018

   $ 2,317,412  
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
Derivative liabilities incurred during the period ended August 31, 2018 and 2017 were valued based upon the following assumptions and key inputs:

   

August 31,

    

August 31,

  

Assumption

  

2018

    

2017

  

Expected dividends:

     0

%

     0

%

Expected volatility:

     121.1-246.8

%

     37.8-276.9

%

Expected term (years):

  

0.21-1.00 years

    

0.04-0.50 years

  

Risk free interest rate:

     0.97-2.08.

%

     0.26-0.98

%

Stock price

   $ 0.35-1.11     $ 0.51-1.97