Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOWS (UNAUDITED)

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STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
 6 Months Ended
Feb. 28, 2018
Feb. 28, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (1,062,194) $ (955,713)
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in fair value of derivative liability 600,923 266,272
Amortization of discount on convertible debt 397,811 368,586
Gain on note exchange (139,323) 0
Penalty on debt extension 0 182,614
Changes in assets and liabilities:    
Accounts receivable 0 45
Inventory 211 (8,751)
Accrued officer salary 40,000 48,000
Interest payable - related party 1,013 178
Accounts payable and accrued liabilities (4,454) 75,103
Net cash used in operating activities (166,013) (23,666)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to acquire assets 0 0
Net cash used in investing activities 0 0
CASH FLOWS FROM FINANCING ACTIVITIES    
Principal payments made on convertible notes 0 (50,000)
Proceeds from sale of common stock 0 0
Proceeds from notes payable - related party 35,500 70,000
Repayments of notes payable - related party (100,000) 0
Proceeds from convertible debt 482,500 0
Net cash provided by financing activities 418,000 20,000
Net increase in cash and cash equivalents 251,987 (3,666)
Cash and cash equivalents at beginning of period 1,442 10,197
Cash and cash equivalents at end of period 253,429 6,531
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 1,087 0
Income taxes paid 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued for conversion of notes payable and accrued interest 84,956 0
Discount on Convertible Debt and Accrued Interest 891,168 353,606
Stock issued for commitment fee 0 68,950
Settlement of derivative 476,936 451,790
Accrued interest capitalized into principal of convertible notes $ 15,823 $ 22,842