DERIVATIVE LIABILITIES

6 Months Ended

Feb. 28, 2022

Disclosure Text Block [Abstract]

Derivatives and Fair Value [Text Block]

NOTE 7 – DERIVATIVE LIABILITIES

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, 2022, and August 31, 2021 amounted to $704,812 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, 2022			August 31, 2021
Effective Exercise price		0.003 - 0.0048			0.0015 - 0.004
Effective Market price		.002			0.004
Volatility		25	%		90	%
Risk-free interest		1.01	%		0.17	%
Terms	365 days			365 days
Expected dividend rate		0	%		0	%

Changes in the derivative liabilities during the six-month period ended February 28, 2022 is as follows:

Balance at August 31, 2021	$	506,360
Changes in fair value of derivative liabilities		283,997
Balance, February 28, 2022	$	222,363