NOTE 4 – LOANS PAYABLE

May 31,

2021

August 31,

2020

Loans payable

1,399,449

1,029,765

The Company generated loan proceeds of $307,342 and $307,228, during the none-months periods ended May 31, 2021 and 2020, respectively.

	May 31, 2021		August 31, 2020
Loans payable short-term	$	1,351,206	$	980,109
Loans payable long-term		48,243		49,656
	$	1,399,449	$	1,029,765

The loans payables are generally due on demand, are unsecured, and are bearing interest at a range of 2-12%, with the exception of one loan payable to a financial institution. Such loan, which amounted to $70,905 at May 31, 2021 bears interest rate at 2.5%, is unsecured, matures in May 2026 with principal and interest payable monthly starting in May 2021. This loan is part of a Bounce Back Loan Scheme from the UK Government.

There are a fixed number of common shares to be granted through specific grants in funding agreements which have not been issued yet. Those shares are included in the accrued expenses and interest expense and were valued based on current market price at the time of the agreement.

The company may have to provide additional consideration (which may be in cash, shares or other financial instruments) up to amounts accrued to satisfy its obligations under certain unsecured loans payable.

The aggregate schedule maturities of the Company’s loans payable outstanding as of May 31, 2021 are as follows:

2021	$	1,351,206
2022		11,578
2023		11,578
2024		11,578
2025		11,578
Thereafter		1,931
	$	1,399,449