DERIVATIVE LIABILITIES (Tables)

3 Months Ended

Nov. 30, 2019

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

The Company accounts for the embedded conversion features included in its convertible instruments as derivative liabilities. The aggregate fair value of derivative liabilities at November 30,2019, and August 31, 2019 amounted to $769,133 and $772,732 respectively. At each measurement date, the fair value of the embedded conversion features was based on the lattice binomial method using the following assumptions:

	November 30, 2019		August 31, 2019
Effective Exercise price		0.0035 - 0.0042		0.0003 - 0.0010
Effective Market price		0.0070		0.0006
Volatility		77.85%		78.95%
Risk-free interest		1.60%		1.76%
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 three-month period ended November 30, 2019 and 2018 is as follows:

Balance at August 31, 2019	$	772,732
Embedded conversion features at issuance		-
Changes in fair value of derivative liabilities		(3,599	)
Balance, November 30, 2019	$	769,133