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DERECOGNITION OF LIABILITIES
12 Months Ended
Aug. 31, 2025
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]  
DERECOGNITION OF LIABILITIES

NOTE 10 DERECOGNITION OF LIABILITIES

 

During fiscal 2025, the Company successfully reached an agreement with a holder of aged convertible debentures aggregating $739,415 in principal, accrued interest and derivative liabilities in consideration of 100,000,000 shares of the Company’s common stock, which generated an overall gain of $459,415 of which $226,516 was recognized as gain on derecognition of liabilities in the accompanying consolidated statement of operations and $232,899 was recognized as a reclassification of liability contracts to equity as an increase in additional paid-in capital in the accompanying stockholders’ deficit. The fair value of the shares issued amounted to $280,000 at the date of settlement, of which $120,000 was recognized as common stock and paid-in capital for the shares issued and $168,000 was recognized as accounts payable and accrued expenses for the shares issuable. The gain was recognized as gain on derecognition of liabilities in the accompanying consolidated statement of operations.

 

During fiscal 2024, the Company derecognized $158,287 of liabilities which lapsed from statute of limitations. The Company gathered the necessary documentation to ascertain the Company was no longer the obligor of such liabilities following the dissolution of RTGVE in January 2023. The derecognition of liabilities is recognized as a gain on the accompanying consolidated statement of operations.