Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Derivative Liability (Tables)

v3.7.0.1
Note 8 - Derivative Liability (Tables)
 6 Months Ended
Feb. 28, 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 February 28, 2017:

 
  
Derivative
  
 
  
Liability
  
Liabilities Measured at Fair Value
      
 
      
Balance as of August 31, 2016
  
$
254,952
  
 
        
Issuances
    
-
  
 
        
Revaluation
    
(67,072
)
 
        
Balance as of November 30, 2016
  
$
187,880
  
         
Issuances
    
360,709
  
         
Conversions / redemptions
    
(451,790
)
         
Revaluation
    
333,344
  
         
Balance as of February 28, 2017
  
$
430,143
  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
The derivative liabilities incurred valued based upon the following assumptions and key inputs at February 28, 2017 and August 31, 2016:

 
February 28,
 
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:
 
 
0.34% - 0.53
 
 
 
0.26
%
Stock price
 
$
1.25- 1.97
 
 
$
1.89