Warrants

12 Months Ended

Aug. 31, 2022

Warrants

Warrants

Note 7 – Warrants

1.	On September 24, 2018, as part of a securities purchase agreement the company issued 5,000,000 Warrants, to purchase common shares of the Company at $1.00 per share; said Warrants are valid for five years, expiring on August 24th, 2023.
	The fair value of each warrant is approximately $0.556 and the total value of the 5,000,000 warrants is $2,784,387
	The fair value of the warrants are estimated using the Black Scholes option-pricing model with the following assumptions:

PV of exercise Share price	$1
Expected Volatility	102.0%
Risk Free Interest Rate	1.58%
Expected Term (years)	5
Expected Dividend Yield	0%

1.	On December 16, 2020, as part of a convertible loan agreement the company issued 5,500,000 Warrants, to purchase common shares of the Company at $0.50 per share; said Warrants are valid for three years, expiring on August 24th, 2023. The first trench was received on December 22, 2020, the second trench was received on February 2,2021 and the third trench was received on April 23, 2021, in the total sum of $2,456,750 net of issuance expenses.
	The fair value of the first, second and third trenches are approximately $0.09, $0.09 and $0.1 respectively and the total value of the 5,500,000 warrants is $515,818
	The fair value of the warrants are estimated using the Black Scholes option-pricing model with the following assumptions:

PV of exercise Share price	$0.50
Expected Volatility	117.0%
Risk Free Interest Rate	0.3%
Expected Term (years)	3
Expected Dividend Yield	0%

	2022				2021				2020
	Weighted Average Exercise				Weighted Average Exercise				Weighted Average Exercise
	Warrants		Price		Warrants		Price		Warrants			Price
Warrants outstanding as of September 1		87,500	$	88.6		41,667	$	120		44,667		$	120
Issued		–	$	–		45,667	$	60		–		$	–
Exercised		–	$	–		–	$	–		–		$	–
Expired		–	$	–		–	$	–		(2,500	)	$	50.4
Warrants outstanding as of August 31		87,500	$	88.6		87,500	$	88.6		41,667		$	120
Warrants exercisable as of August 31		87,500	$	88.6		87,500	$	88.6		41,667		$	120

The weighted average remaining contractual life for the options outstanding as of August 31, 2022, was 3 years.