DERIVATIVE LIABILITIES (Tables)

6 Months Ended

Feb. 28, 2021

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 February 28, 2021, and August 31, 2020 amounted to $701,503 and $773,676 respectively. At each measurement date, the fair value of the embedded conversion features was based on the lattice binomial method using the following assumptions:

	February 28, 2021	August 31, 2020
Effective Exercise price	0.0015 - 0.0040	0.0010 - 0.0076
Effective Market price	.0040	0.0076
Volatility	51.08%	82.15%
Risk-free interest	0.08%	0.12%
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 February 28, 2021 is as follows:

Balance at August 31, 2020	$	773,676
Embedded conversion features at issuance		-
Changes in fair value of derivative liabilities		(72,713	)
Balance, February 28, 2021	$	701,503