Quarterly report pursuant to Section 13 or 15(d)

Note 9 - Stockholders' Equity

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Note 9 - Stockholders' Equity
 6 Months Ended
Feb. 28, 2018
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
Note 9 – Stockholders’ Equity

Preferred stock

On January 17, 2018, the Board of Directors amended the Company’s Articles of Incorporation to include the right to issue blank check preferred stock.

The Company is authorized to issue 20,000,000 shares, of which 1,000 shares is classified as Series A, of $0.001 par value preferred stock as of February 28, 2018 and August 31, 2017.  The Company has 1,000 shares of preferred stock issued and outstanding as of February 28, 2018 and August 31, 2017. 

Common stock

The Company is authorized to issue 580,000,000 shares of $0.001 par value common stock as of February 28, 2018 and August 31, 2017.  The Company had 79,683,842 and 78,226,969 shares of common stock issued and outstanding as of February 28, 2018 and August 31, 2017.

Six Months Ended February 28, 2018 and 2017

On January 4, 2017, the Company issued 35,000 shares of common stock, valued at $68,950 as commitment shares to convertible note holders.  These shares were issued at fair value based on the market price at issuance of $1.80 per share.

On September 28, 2017, the Company issued 208,333 shares of common stock, for the conversion of $16,347 of principal and $8,653 of accrued interest of convertible notes payable.

On November 16, 2017, the Company issued 250,000 shares of common stock, for the conversion of $17,518 of principal and $12,482 of accrued interest of convertible notes payable. 

On January 28, 2018, the Company issued 998,540 shares of common stock, for the conversion of $28,148 of principal and $1,808 of accrued interest of convertible notes payable. 

Warrants

The following table summarizes the significant terms of warrants outstanding at February 28, 2018. These warrants may be settled in cash and, unless the underlying shares are registered, via cashless conversion, into shares of the Company’s common stock at the request of the warrant holder. These warrants were granted as part of the February 2018 Convertible Note (See Note7):

Range of
exercise
Prices
    
Number of
warrants
Outstanding
    
Weighted
average
remaining
contractual
life (years)
    
Weighted
average
exercise
price of
outstanding
Warrants
    
Number of
warrants Exercisable
    
Weighted
average
exercise
price of
exercisable
Warrants
  
$
0.01
      
500,000
      
4.97
    
$
0.01
      
500,000
    
$
0.01
  
                                             
         
500,000
      
4.97
    
$
0.01
      
500,000
    
$
0.01
  

Transactions involving warrants are summarized as follows:

 
  
Number of
    
Weighted Average
  
 
  
Warrants
    
Exercise Price
  
Warrants outstanding at August 31, 2017
    
-
    
$
-
  
 
                
Granted
    
500,000
      
0.01
  
Exercised
    
-
    
$
-
  
Cancelled / Expired
    
-
      
-
  
 
                
Warrants outstanding at February 28, 2018
    
500,000
    
$
0.01