NOTE 4 – LOANS PAYABLE

	August 31,
	2021		2020
Loans payable	$	1,694,440	$	1,029,765

	August 31,
	2021		2020
Loans payable short-term	$	1,648,248	$	980,109
Loans payable long-term		46,192		49,656
	$	1,694,440	$	1,029,765

The loans payables are generally due on demand and have not been called, are unsecured, and are bearing interest at a range of 0-12%., with the exception of one loan payable to a financial institution. Such loan, which amounted to $55,200 at August 31, 2021 bears interest rate at 2.5%, is unsecured, matures in November 2027 with principal and interest payable monthly starting in November 2021. This loan is part of a Bounce Back Loan Scheme from the UK Government.

During fiscal 2021 and 2020, the Company successfully reached agreements with certain lenders resulting in gain on extinguishment for loans payable which amounted to the difference between the carrying value and the revised amount of the obligations. The gain on extinguishment of principal and accrued interest amounted to $169,837 and $57,802 and during fiscal 2021 and 2020, respectively.

The company may have to provide alternative consideration (which may be in cash, fixed number of shares or other financial instruments) up to amounts accrued to satisfy its fixed obligations under certain unsecured loans payable. The consideration hasn’t been issued yet and is included in accrued expenses and interest expense and were valued based on the fair value of the consideration at issuance.

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

Year ended August 31,
2022	$	1,648,248
2023		10,994
2024		11,199
2025		11,408
2026		11,621
Thereafter		970
	$	1,694,440