NOTE 7 - DERIVATIVE LIABILITIES (Tables)

12 Months Ended

Aug. 31, 2018

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

At each measurement date, the fair value of the embedded conversion features was based on the lattice binomial method using the following assumptions:

	Years Ended August 31
	2018	2017
Effective Exercise price	0.0007 - 0.00112	0.0095–0.00152
Effective Market price	0.0014	0.0019
Volatility	55.96%	85%
Risk-free interest	2.46%	1.13%
Terms	365 days	365 days
Expected dividend rate	0%	0%

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Changes in the derivative liabilities during the years ended August 31, 2018 and 2017 are as follows:

Balance at September 1, 2016	$	1,517,811
Embedded conversion features at issuance		-
Changes in fair value of derivative liabilities		(776,858	)
Balance, August 31, 2017	$	740,953

Balance at September 1, 2017	$	740,953
Embedded conversion features at issuance		-
Changes in fair value of derivative liabilities		(16,640	)
Balance, August 31, 2018	$	724,313