0001165527-16-000836.txt : 20160729 0001165527-16-000836.hdr.sgml : 20160729 20160729114958 ACCESSION NUMBER: 0001165527-16-000836 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 40 CONFORMED PERIOD OF REPORT: 20160531 FILED AS OF DATE: 20160729 DATE AS OF CHANGE: 20160729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Dominovas Energy Corp CENTRAL INDEX KEY: 0001343254 STANDARD INDUSTRIAL CLASSIFICATION: OIL AND GAS FIELD EXPLORATION SERVICES [1382] IRS NUMBER: 205854735 STATE OF INCORPORATION: NV FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-51736 FILM NUMBER: 161792790 BUSINESS ADDRESS: STREET 1: 1395 CHATTAHOOCHEE AVE. CITY: ATLANTA STATE: GA ZIP: 30318 BUSINESS PHONE: 778-484-7480 MAIL ADDRESS: STREET 1: 1395 CHATTAHOOCHEE AVE. CITY: ATLANTA STATE: GA ZIP: 30318 FORMER COMPANY: FORMER CONFORMED NAME: Western Standard Energy Corp. DATE OF NAME CHANGE: 20070907 FORMER COMPANY: FORMER CONFORMED NAME: Lusora Healthcare Systems Inc. DATE OF NAME CHANGE: 20060628 FORMER COMPANY: FORMER CONFORMED NAME: Comtrix, Inc. DATE OF NAME CHANGE: 20051102 10-Q/A 1 g8258a1.htm g8258a1.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q/A
Amendment No. 1
 
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2016
or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 000-51736

 
DOMINOVAS ENERGY CORPORATION
(Exact name of registrant as specified in its charter)

Nevada
 
20-5854735
(State or other jurisdiction
 
(I.R.S. Employer Identification No.)
of incorporation or organization)
   
     
1170 Peachtree Street, 12th Fl., Atlanta, GA
 
30309
(Address of principal executive offices)
 
(Zip Code)

Tel: (800) 679-1249
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(g) of the Act

Common Stock, par value $0.001 per share
(Title of Class)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act
 
Large accelerated filer [  ]
Accelerated filer [  ]
Non-accelerated filer [  ]
Smaller reporting company [X]
(Do not check if a smaller reporting company)
 
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [  ] No [X]

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ]

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: 237,304,383 shares of common stock outstanding as of May 31, 2016.

DOCUMENTS INCORPORATED BY REFERENCE

Not Applicable
 
 
 
 

 


TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
 
     
ITEM 1.
FINANCIAL STATEMENTS
3
     
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
13
     
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
16
     
ITEM 4T.
CONTROLS AND PROCEDURES
16
     
PART II - OTHER INFORMATION
 
     
ITEM 1.
LEGAL PROCEEDINGS
17
     
ITEM 1A.
RISK FACTORS
17
     
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
17
     
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
21
     
ITEM 4.
MINE SAFETY DISCLOSURES
21
     
ITEM 5.
OTHER INFORMATION
21
     
ITEM 6.
EXHIBITS
22
     
SIGNATURES
23
 
 

 
2

 
 
PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

DOMINOVAS ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited)


   
May 31, 2016
   
August 31, 2015
 
ASSETS
           
             
Current Assets
           
Cash
  $ 5,723     $ 64,157  
      5,723       64,157  
                 
Prepaid - non current
    15,410       15,410  
    $ 21,133     $ 79,567  
                 
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT
               
                 
Current Liabilities
               
Accounts payable
  $ 540,083     $ 443,310  
Accrued liabilities
    715,124       577,576  
Convertible debt
    1,249,086       627,349  
Notes payable
    75,000       75,000  
      2,579,293       1,723,235  
                 
Lease inducement
    65,835       72,821  
Total liabilities
    2,645,128       1,796,056  
                 
Stockholders' deficit
               
Common stock $0.001 par value, 700,000,000 common shares authorized, 237,304,383 issued and outstanding at May 31, 2016 and 169,106,668 at August 31, 2015
    237,301       169,104  
Additional paid in capital
    13,477,389       11,931,347  
Accumulated deficit
    (16,338,685 )     (13,816,940 )
      (2,623,995 )     (1,716,489 )
    $ 21,133     $ 79,567  




The accompanying notes are an integral part of these interim consolidated financial statements

 
3

 

DOMINOVAS ENERGY CORPORATION
CONDOLIDATED STATEMENTS OF OPERATIONS
(unaudited)


   
Three Months Ended
May 31, 2016
   
Three Months Ended
May 31, 2015
   
Nine Months Ended
May 31, 2016
   
Nine Months Ended
May 31, 2015
 
EXPENSES
                       
Advertising and marketing
  $ 13,746     $ 110     $ 42,097     $ 110  
Audit and accounting fees
    3,569       12,862       40,602       49,152  
Consulting fees
    -       32,500       -       197,500  
Financing fees
    20,425       31,200       92,685       196,200  
Foreign exchange loss
    -       113       -       -  
Interest expense
    36,610       1,727       55,338       1,727  
Investor communications and transfer agent
    3,528       15,656       34,091       26,139  
Legal fees
    11,185       4,500       27,225       20,355  
Office and general administration
    70,721       50,362       211,987       151,790  
Salaries and management fees
    279,866       110,189       511,491       350,937  
Subcontractor fees
    -       -       65,350       -  
Travel and entertainment
    66,454       14,812       219,241       18,950  
Total operating expenses
    (506,104 )     (274,031 )     (1,300,107 )     (1,012,860 )
                                 
Other items
                               
Loss on debt conversion
    (337,988 )     (340,000 )     (885,688 )     (340,000 )
Loss on fair value of convertible debt
    (69,882 )     -       (335,950 )     -  
      (407,870 )     (340,000 )     (1,221,638 )     (340,000 )
                                 
Comprehensive loss
  $ (913,974 )   $ (614,031 )   $ (2,521,745 )   $ (1,352,860 )
                                 
Loss per share, basic and diluted
  $ (0.00 )   $ (0.01 )   $ (0.01 )   $ (0.01 )
                                 
Weighted average shares outstanding, basic and diluted
    222,881,107       92,748,439       191,493,990       92,748,439  




The accompanying notes are an integral part of these interim consolidated financial statements

 
4

 

DOMINOVAS ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)


   
Nine Months Ended
May 31, 2016
   
Nine Months Ended
May 31, 2015
 
Cash flows used in operating activities
           
Net loss
  $ (2,521,745 )   $ (1,352,860 )
Non-cash items
               
Financing costs
    92,685       190,000  
Consulting costs
    -       196,200  
Interest Expense
    55,338       1,727  
Lease inducement
    (6,985 )     22,573  
Loss on debt conversion
    885,688       340,000  
Change in fair value of debt
    335,950       -  
Salaries and management fees paid by shares
    89,500       -  
Changes in operating assets and liabilities
               
Prepaid
    -       16,531  
Accounts payable and accrued liabilities
    234,319       456,519  
Net cash used in operating activities
    (835,250 )     (129,310 )
                 
Cash flows from financing activities
               
Proceeds from issuance of convertible loans
    776,816       84,500  
Issuance of common stock
    -       48,697  
Net cash provided by financing activities
    776,816       133,197  
                 
Net (decrease) increase in cash
    (58,434 )     3,887  
Cash, beginning
    64,157       5,096  
Cash, ending
  $ 5,723     $ 8,983  




The accompanying notes are an integral part of these interim consolidated financial statements

 
5

 

DOMINOVAS ENERGY CORPORATION
NOTES TO FINANCIAL STATEMENTS
May 31, 2016


1. ORGANIZATION AND BASIS OF PRESENTATION

Dominovas Energy Corporation (the "Company") was incorporated on February 2, 2005 under the laws of the State of Nevada and is in the business of developing fuel cell and alternative energy projects.

The following interim unaudited financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles for interim financial information and with the rules and regulations of the Securities and Exchange Commission ("SEC").

Accordingly, these financial statements do not include all of the disclosures required by United States Generally Accepted Accounting Principles (“US GAAP”) for complete financial statements. These interim unaudited financial statements should be read in conjunction with the Company's audited financial statements for the year ended August 31, 2015. In the opinion of management, the interim unaudited financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results of the interim period presented. Operating results for the nine-month period ended May 31, 2016 are not necessarily indicative of the results that may be expected for the year ending August 31, 2016.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of May 31, 2016, the Company has not achieved profitable operations and has accumulated a deficit of $16,338,685. Continuation as a going concern is dependent upon the ability of the Company to obtain the necessary financing to meet obligations and pay its liabilities arising from normal business operations when they come due and ultimately upon its ability to achieve profitable operations. The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will be able to continue as a going concern. These consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. These adjustments could be material. Management intends to obtain additional funding by borrowing funds from its directors and officers, issuing promissory notes and convertible debt and/or a private placement of common stock.

2. RECENT ACCOUNTING PRONOUNCEMENTS

Recent pronouncements with future effective dates are either not applicable or are not expected to be significant to the financial statement of the Company.

3. RELATED PARTY TRANSACTIONS

During the nine months ended May 31, 2016, the Company incurred wages of $Nil (May 31, 2015 - $84,000), $84,000 (May 31, 2015 - $56,188), $97,500 (May 31, 2015 - $78,000) and $165,938 (May 31, 2015 - $132,750) to the Executive Vice President of Business Operations, the Executive Vice President of Fuel Cell Operations, the Chief Operating Officer and the President and Chief Executive Officer of the Company, respectively. As of May 31, 2016, unpaid wages of $704,002 (August 31, 2015 - $577,576) were owed to the related parties and are included in accrued liabilities.

4. NOTES PAYABLE

As of May 31, 2016, the Company has notes payable of $75,000 (August 31, 2015 - $75,000).  The notes are non-interest bearing, unsecured and due on demand.

5. CONVERTIBLE DEBT

Details of the Company’s convertible notes, which are measured at their fair value are as follows:


 
6

 

a)  
On October 27, 2014, the Company issued a convertible note in the amount of $165,000 in exchange for consulting services rendered. The note is non-interest bearing, was due on October 27, 2015, and is unsecured.

The loan may be converted into the Company's common stock, at a conversion price for each share equal to the lowest closing bid price for the common stock for the thirty trading days ending on the trading day immediately before the conversion date multiplied by 50% at any time after April 28, 2015.

During the year ended August 31, 2015, $106,650 was converted into 43,314,479 common shares of the Company.

As at May 31, 2016, the principal remaining of this note was $58,250 with a fair value of $129,444 based on the value of the common shares that would be issued if converted on May 31, 2016.

b)  
On March 19, 2015, the Company entered into an agreement for two convertible notes in the amount of $26,500 each. The first note was issued in March 2015, for proceeds of $25,000 (net of $1,500 of financing fees), carried an interest at 8%, and was due on March 19, 2016. The second note was paid for by the issuance of an offsetting $26,500 secured note issued to the Company. The second $26,500 note was issued and received in cash on November 13, 2015.

The lender could convert the entire note amount into shares of the Company's common stock, at a conversion price for each share equal to the lowest closing bid price for the common stock for the twenty trading days ending on the trading day immediately before the conversion date multiplied by 50% at any time. The first note was convertible into shares after the second note has been received by the Company.

The Company issued 2,453,467 common stock with a fair value of $147,769 on conversion of the notes issued in March 2015 and November 2015.

c)  
On April 30, 2015, the Company issued a convertible unsecured note in the amount of $62,000 (including $7,000 of financing fees). The note carries an interest rate of 12% (22% default rate), and was due on January 30, 2016.

During the year ended August 31, 2015, $2,507 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $92,407.

During the period ended May 31, 2016, the Company issued 3,373,329 common stock with a fair value of $222,578 on conversion of this convertible debt.

d)  
On June 10, 2015, the Company issued a convertible unsecured note in the amount of $58,000 (including $8,000 of financing fees). The note carries an interest rate of 12% (22% default rate), and was due on March 10, 2016.

During the year ended August 31, 2015, $1,565 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $79,865.

During the period ended May 31, 2016, the Company issued 2,981,396 common stock with a fair value of $137,144 on conversion of this convertible debt.

e)  
On July 6, 2015, the Company issued a convertible unsecured note in the amount of $85,500 (including $10,500 of financing fees). The note carries an interest rate of 12% (22% default rate), and was due on April 6, 2016.

During the year ended August 31, 2015, $1,574 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $112,724.

During the period ended May 31, 2016, the Company issued 9,694,291 common stock with a fair value of $238,360 on conversion of this convertible debt.

f)  
On August 10, 2015, the Company issued a convertible unsecured note in the amount of $85,500 (including $10,500 of financing fees). The note carries an interest rate of 12% (22% default rate), and is due on May 10, 2016.
 
 
 
7

 

During the year ended August 31, 2015, $590 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $107,465.

During the period ended May 31, 2016, the Company issued 11,210,437 common stock with a fair value of $228,369 on conversion of this convertible debt.

The loans c) – f) above were convertible into shares of the Company's common stock, at a conversion price for each share equal to the average of the three lowest closing bid prices for the common stock for the ten trading days ending on the trading day immediately before the conversion date multiplied by 50% at any time after each respective maturity date.

g)  
On September 11, 2015, the Company issued a convertible unsecured note in the amount of $95,000 (including $11,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on June 11, 2016.

The Company may prepay the note up to 180 days after its issuance with the following penalties:

Number of days after issuance
 
Penalty
     
< 30 days
 
125% of principal plus accrued interest
31 – 60 days
 
130% of principal plus accrued interest
61 – 90 days
 
135% of principal plus accrued interest
91 – 120 days
 
140% of principal plus accrued interest
121 – 150 days
 
145% of principal plus accrued interest
151 – 180 days
 
150% of principal plus accrued interest

The lender may convert the note at a conversion price equal to the average of the three lowest closing bid prices for the common stock for twenty trading days ending on the trading day immediately before conversion multiplied by 50% at any time after the maturity day.

During the period ended May 31, 2016, the Company issued 9,850,000 common stock with a fair value of $134,050 on conversion of $63,514 of principal of this convertible debt.

During the period ended May 31, 2016, $2,722 of interest was accrued on this note. As at May 31, 2016, the remaining principal of this note of $31,486 has a fair value of $69,116 determined based on the fair value of the shares would be converted at May 31, 2016.

h)  
On December 9, 2015, the Company issued a convertible unsecured note in the amount of $100,000 (including $10,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on September 9, 2016.

During the period ended May 31, 2016, $5,721 of interest was accrued on this note. As at May 31, 2016, the remaining principal of this note of $100,000 has a fair value of $207,087 determined based on the fair value of the shares would be converted at May 31, 2016.

i)  
On February 19, 2016, the Company issued a convertible unsecured note in the amount of $108,000 (including $8,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on November 19, 2016.

During the period ended May 31, 2016, $3,622 of interest was accrued on this note. As at May 31, 2016, this note had a fair value of $223,654 determined based on the fair value of the shares would be converted at May 31, 2016.

j)  
On April 1, 2016, the Company issued a convertible unsecured note in the amount of $108,000 (including $8,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on January 1, 2017.

During the period ended May 31, 2016, $2,130 of interest was accrued on this note. As at May 31, 2016, this note had a fair value of $223,654 determined based on the fair value of the shares would be converted at May 31, 2016.


 
8

 

The Company may prepay the loans h) – j) above up to 180 days after its issuance with the following penalties:

Number of days after issuance
 
Penalty
     
< 30 days
 
125% of principal plus accrued interest
31 – 60 days
 
130% of principal plus accrued interest
61 – 90 days
 
135% of principal plus accrued interest
91 – 120 days
 
140% of principal plus accrued interest
121 – 150 days
 
145% of principal plus accrued interest
151 – 180 days
 
150% of principal plus accrued interest

The lender may convert the note h) –j) after 90 days following issuance at a conversion price equal to the average of the three lowest closing bid prices for the common stock for twenty trading days ending on the trading day immediately before conversion multiplied by 53% at any time after the maturity day.

k)  
On June 26, 2015, the Company issued a convertible unsecured note in the amount of $50,000. The note carried an interest rate of 10% (18% default rate), and was due on March 26, 2016.

The lender could convert the entire note amount into shares of the Company's common stock, at a conversion price for each share equal to the three (3) lowest closing bid prices for the common stock for the ten trading days ending on the trading day immediately before the conversion date multiplied by 65%.

During the year ended August 31, 2015, $904 of interest was accrued on this note. The fair value of the note as at August 31, 2015, was determined based on the amount the Company would settle the note by prepayment, was $65,904

During the period ended May 31, 2016, the Company issued 3,405,845 common stock with a fair value of $97,878 on conversion of this convertible debt.

l)  
On September 29, 2015, the Company issued a convertible unsecured note in the amount of $150,000 (including $14,760 of finance fees). The note carries an interest rate of 10% (18% default rate), and is due on March 29, 2016.

The entire note was convertible into shares of the Company's common stock, at a conversion price for each share equal to the three lowest closing bid prices for the common stock for the twenty trading days ending on the trading day immediately before the conversion date multiplied by 60% at any time after the Maturity Date.

During the period ended May 31, 2016, the Company issued 20,228,950 common stock with a fair value of $318,879 on conversion of this convertible debt.

m)  
On January 14, 2016, the Company issued a convertible unsecured note in the amount of $57,000 (including $7,000 of finance fees). The note carries an interest of 10% (18% default rate), and is due on October 14, 2016 (“Maturity Date”).

The Company may repay the note up to 180 days after its issuance, with approval from the lender, with the following penalties:

Number of days after issuance
 
Penalty
     
< 90 days
 
135% of principal plus accrued interest
91 – 120 days
 
140% of principal plus accrued interest
121 – 180 days
 
145% of principal plus accrued interest
> 180 days
 
150% of principal plus accrued interest

The entire note may be converted into shares of the Company’s common stock, at a conversion price for each share equal to the three lowest closing bid prices for the common stock for the twenty trading days ending on the trading day immediately before the conversion date multiplied by 53% at any time after the Maturity Date.


 
9

 

During the period ended May 31, 2016, $2,155 of interest was accrued on this note.  As at May 31, 2016, this note has a fair value of $82,650 determined based on the amount the Company would settle this note by prepayment.

n)  
On January 25, 2016, the Company issued a convertible unsecured note in the amount of $555,000.  The note carries an original interest discount (“OID”) of $50,000 and the Company agrees to pay $5,000 of the finance fees. The Company receives the payments in five tranches, of which the initial tranche equals to the amount of $115,000 (including OID of $10,000 and finance fees of $5,000) and the remainder is delivered in four instalments in the amount of $110,000 (including OID of $10,000) each. The note carries an interest rate of 10% (22% default rate), and is due on May 25, 2017.

As of May 31, 2016, the Company received the initial tranche of $115,000 (including OID and finance fees) and the second tranche of $110,000 (including OID and finance fees).

The lender may convert the note at a conversion price equal to the average of the three lowest closing bid prices for the common stock for twenty trading days ending on the trading day immediately before conversion multiplied by 60% at any time after 180 days after the cash was delivered.

The Company may prepay any outstanding balance of note, upon delivering an optional prepayment notice; provided that, the date of prepayment is not less the five trading days for the optional prepayment notice.

Number of days after issuance
 
Penalty
     
Any time after determined date of prepayment
 
125% of principal plus accrued interest

During the period ended May 31, 2016, $7,829 of interest was accrued on this note. As at May 31, 2016, this note has a fair value of $281,250 determined based on the amount the Company would settle this note by prepayment.

6. COMMON STOCK
 
Authorized: 700,000,000 common shares.
 
Issued and outstanding: 237,304,383 common shares.

On August 14, 2015, the Company increased its authorized common shares to 700,000,000 shares from 200,000,000 share.

The Company has a stock option plan (the “2010 Plan”) allowing the Company's directors to grant up to 5,000,000 stock options. The 2010 Plan allows the Company to grant options to its officers, directors and employees. In addition, the Company may grant options to individuals who act as consultants to the Company. Pursuant to the terms and conditions of the 2010 Plan, the exercise price for the stock options must be no less than: 100% of the fair market value of the common stock on the date of grant for participants that hold less than 10% of the Company's outstanding common stock; and 110% of the fair market value of the common stock on the date of grant for participants that hold 10% or more of the Company's outstanding common stock.  Options will vest at the discretion of the plan administrator.

As of May 31, 2016, no options have been granted.

During the period ended May 31, 2016, the company had the following share transactions:

a)  
Issued 63,197,705 shares with a fair value of $1,525,028 to extinguish convertible debt of 607,514 plus accrued interest of $31,826.
b)  
Issued 5,000,000 shares with a fair value of $89,500 for salaries and management fees.

7. COMMITMENTS
 
The Company entered into a lease agreement for a term of five years ending October 31, 2019. Under the agreement, the Company is committed to the following rent payments:

 
 
10

 


Dates
 
Amount
 
       
March 1, 2016 to August 31, 2016
  $ 41,327  
September 1, 2016 to August 31, 2017
    169,441  
September 1, 2017 to August 31, 2018
    174,524  
September 1, 2018 to August 31, 2019
    179,760  
September 1, 2019 to October 31, 2019
    30,160  
Total
  $ 595,212  
 
Under the agreement, the Company also had to incur $125,000 in leasehold improvements by September 30, 2014. As of the date of these financial statements, the Company has not yet incurred the required expenditures and the lease is in default.
 
On March 1, 2014, the Company entered into an employment agreement with the President and Chief Executive Officer of the Company. Under the agreement, the Company will pay an annual salary of $177,000 for 18 months with a 25% increase after 18 months. The agreement will be in effect for 3 years.
 
On March 1, 2014, the Company entered into an employment agreement with the Chief Operating Officer of the Company. Under the agreement, the Company will pay an annual salary of $104,000 for 18 months with a 25% increase after 18 months. The agreement will be in effect for 3 years.
 
On March 1, 2014, the Company entered into an employment agreement with the Executive Vice President of Fuel Cell Operations of the Company. Under the agreement, the Company will pay an annual salary of $112,000. The agreement will be in effect for 5 years. The Executive shall vest 25,000 shares of the Company stock annually and is only fully vested and fully deliverable after 5 years of continuous and satisfactory employment.
On December 23, 2015, the Company entered into an employment agreement with the President of a division of the Company to be formed. Under the agreement, the Company will pay an annual salary of $115,000 and the Executive shall be granted 200,000 restricted common shares of the Company upon execution of the employment contract. The Executive shall also be granted the following Company stock:

-  
50,000 shares of the Company monthly for year one.
-  
75,000 shares of the Company monthly for year two.
-  
150,000 shares of the Company monthly for year three.
-  
120,000 shares of the Company monthly for year four.
-  
300,000 shares of the Company monthly for year five.

All stock as granted is only fully vested and fully deliverable to Executive after 5 years of continuous and satisfactory employment.

On January 15, 2016, the Company entered into an employment agreement with the Managing director of a division of the Company to be formed. Under the agreement, the Company will pay an annual salary of $55,000 and the Executive shall be granted 5,000 restricted common shares of the Company upon execution of the employment contract. The Executive shall also be granted the following Company stock:

-  
1,000 shares of the Company monthly for year one.
-  
2,500 shares of the Company monthly for year two.
-  
5,000 shares of the Company monthly for year three.

All stock as granted is only fully vested and fully deliverable to Executive after 3 years of continuous and satisfactory employment.

On January 21, 2016, the Company entered into an employment agreement with the Managing Director of the Africa division of the Company. Under the agreement, the Company will pay an annual salary of $80,000 and the Executive shall also be granted the following Company stock:


 
11

 

-  
8,333 shares of the Company monthly for year one.
-  
12,500 shares of the Company monthly for year two.
-  
16,666 shares of the Company monthly for year three.

All stock as granted is only fully vested and fully deliverable to Executive after 3 years of continuous and satisfactory employment.

8. SUBSEQUENT EVENTS

Subsequent to period ended May 31, 2016, the Company issued 18,447,790 common shares on conversion of $66,363 of principal convertible debt.

Subsequent to period ended May 31, 2016, the Company issued 4,945,599 common shares for gross proceeds of $20,000.


 
12

 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this interim report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include those discussed below and elsewhere in this interim report on Form 10-Q.

Our interim financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

Since we are a development stage company, there is no assurance that a commercially viable business will be identified in the near term. Our plan of operation is to seek for opportunities in the green and renewable energy industry.

LIQUIDITY

ANTICIPATED CASH REQUIREMENTS

For the nine months ended May 31, 2016, we recorded a net operating loss of $2,521,745. As of May 31, 2016, we had a cash balance of $5,723. We do not have sufficient funds for working capital and will need to obtain further financing.

Our financial condition as of May 31, 2016 and May 31, 2015 and cash flows for the nine months then ended are summarized as follows:

   
Nine months ended
 
   
May 31, 2016
   
May 31, 2015
 
             
Net cash used in operating activities
  $ (835,250 )   $ (129,310 )
Net cash provided by financing activities
    776,816       133,197  
Net (decrease) increase in cash
    (58,434 )     3,887  
Cash, beginning
    64,157       5,096  
Cash, ending
  $ 5,723     $ 8,983  

WORKING CAPITAL

Our working capital position as of May 31, 2016 compared to May 31, 2015 and the cash flows for the nine months then ended are summarized below:

   
May 31, 2016
   
May 31, 2015
 
             
Current Assets
  $ 5,723     $ 24,393  
Current Liabilities
    2,579,293       1,378,711  
Working Capital Deficiency
  $ 2,573,570     $ 1,354,318  

The increase in our working capital deficiency was primarily due to an increase in accounts payable and accrued liabilities.

 
 
13

 

RESULTS OF OPERATIONS

The following is a summary of our results of operations for the nine months ended May 31, 2016 and May 31, 2015:

   
Nine Months Ended
May 31, 2016
   
Nine Months Ended
May 31, 2015
 
EXPENSES
           
Advertising and marketing
  $ 42,097     $ 110  
Audit and accounting fees
    40,602       49,152  
Consulting fees
    -       197,500  
Financing fees
    92,685       196,200  
Foreign exchange loss
    -       -  
Interest expense
    55,338       1,727  
Investor communications and transfer agent
    34,091       26,139  
Legal fees
    27,225       20,355  
Office and general administration
    211,987       151,790  
Salaries and management fees
    511,491       350,937  
Subcontractor fees
    65,350       -  
Travel and entertainment
    219,241       18,950  
Total operating expenses
    (1,300,107 )     (1,012,860 )
                 
Other items
               
Loss on debt conversion
    (885,688 )     (340,000 )
Loss on fair value of convertible debt
    (335,950 )     -  
      (1,221,638 )     (340,000 )
                 
Comprehensive loss
  $ (2,521,745 )   $ (1,352,860 )
                 
Loss per share, basic and diluted
  $ (0.01 )   $ (0.01 )
                 
Weighted average shares outstanding, basic and diluted
    191,493,990       92,748,439  

REVENUE

We have not earned any revenues since our inception and we do not anticipate earning revenues until such time as we manufacture and deploy RUBICON(TM) fuel cell power plants under Power Purchase Agreements.

EXPENSES

Our operating expenses for the nine months ended May 31, 2016 compared to the same period in 2015 increased by the net amount of $287,247 primarily due to other SG&A expenses.


 
14

 

APPLICATION OF CRITICAL ACCOUNTING POLICIES

BASIS OF PRESENTATION

These financial statements and related notes are presented in accordance with Generally Accepted Accounting Principles in the United States of America ("US") and are expressed in US dollars. The Company is a development stage company as defined by Statement of Financial Accounting Standard ("SFAS") No. 7, "Accounting and Reporting by Development Stage Enterprises" and has not realized any revenues from its planned operations to date.

USE OF ESTIMATES AND ASSUMPTIONS

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are readily apparent from other sources. The actual results experienced by the Company may differ materially from the Company's estimates. To the extent there are material differences, future results may be affected.

FINANCIAL INSTRUMENTS

The Company's financial instruments consist of cash, accounts payable, notes payable and convertible debentures. It is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying values due to the relatively short maturity of these instruments.

FOREIGN CURRENCY TRANSLATION

The functional and reporting currency of the Company is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated into United States Dollars at the period-end exchange rates. Non-monetary assets and liabilities are translated at the historical rates in effect when the assets were acquired or obligations incurred. Transactions occurring during the period are translated at rates in effect at the time of the transaction. The resulting foreign exchange gains and losses are included in operations.

INCOME TAXES

Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities, and the reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year when the reported amount of the asset or liability is recovered or settled, respectively. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets to the amount that is more likely than not to be realized. For each tax position taken or expected to be taken in a tax return, the Company determine whether it is more likely than not that the position will be sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of benefit to recognize. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement.

LOSS PER SHARE

The Company computes net loss per share of both basic and diluted loss per share ("LPS") on the face of the statement of operations. Basic LPS is computed by dividing the net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted LPS gives effect to all potentially dilutive common shares outstanding during the period, including convertible debt, stock options and warrants, using the treasury stock method. The computation of diluted LPS does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on LPS.

 
 
15

 

STOCK-BASED COMPENSATION

The Company has adopted the fair value recognition policy, whereby compensation expense is recognized for all share-based payments based on the fair value at monthly vesting dates, estimated in accordance with the provisions of SFAS 123R.

All transactions in which goods and services are the consideration received for the issuance of equity instruments are accounted for based on fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to Advisory Board members and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued.

On April 14, 2010, our shareholders approved our 2010 Equity Compensation Plan. Under the 2010 Plan, options may be granted to our directors, officers, employees and consultants as determined by our board of directors. Pursuant to the 2010 Plan, we reserved for issuance up to 5,000,000 shares of our outstanding common stock under the 2010 plan. However, no options have been granted as of May 31, 2016 and therefore no stock-based compensation has been recorded to date for stock options.

RECENT ACCOUNTING PRONOUNCEMENTS

Recent pronouncements with future effective dates are either not applicable or are not expected to be significant to the financial statement of the Company.

OFF-BALANCE SHEET ARRANGEMENTS

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial position, revenues and expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

ITEM 4T. CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

As required by paragraph (b) of Rules 13a-15 or 15d-15 under the Securities Exchange Act of 1934, as amended, we are required to maintain and our management is required to evaluate the effectiveness of our Company's disclosure controls and procedures (as defined in Rules 13a-15 (e) and 15d-15(e) of the Exchange Act). Our management with the participation of our principal executive officer and principal financial officer evaluated the effectiveness of our Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly report on Form 10-Q. Based on this evaluation, our management determined that our Company's disclosure controls and procedures were effective as of May 31, 2016.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our Company's reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our Company's reports filed under the Exchange Act is accumulated and communicated to our principal executive officer and our principal accounting officer, as appropriate, to allow timely decisions regarding required disclosure.

Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within our Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.


 
16

 

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in our internal control over financial reporting during our last fiscal quarter that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

The term internal control over financial reporting is defined as a process designed by, or under the supervision of, our principal executive and principal financial officer, or persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our financial statements for external purposes in accordance with Generally Accepted Accounting Principles and includes those policies and procedures that:

 
1.
pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

 
2.
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with Generally Accepted Accounting Principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and,

 
3.
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

CERTIFICATIONS

Certifications with respect to disclosure controls and procedures and internal control over financial reporting under Rules 13a-14(a) or 15d-14 of the Exchange Act are attached to this quarterly report on Form 10-Q.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We know of no material, existing, or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On October 17, 2014, the Company issued 20,000 shares at $0.25 per share for gross proceeds of $5,000.

On December 10, 2014, the Company issued 70,000 shares at $0.25 per share for gross proceeds of $18,000.

On December 10, 2014, the Company issued 2,000 shares at $0.35 per share for gross proceeds of $700.

On April 7, 2015, the Company issued 34,000 shares of its common stock at $0.25 per share for gross proceeds of $8,500.

On April 7, 2015, the Company issued 6,667 shares of its common stock at $0.30 per share for gross proceeds of $2,000.

On April 7, 2015, the Company issued 8,572 shares of its common stock at $0.35 per share for gross proceeds of $3,000.

On April 7, 2015, the Company issued 80,000 shares of its common stock at $0.15 per share for gross proceeds of $12,000.

On April 30, 2015, the Company issued 2,000,000 shares of its common stock at $0.005 per share to extinguish convertible debt for $10,000.

 
 
17

 

On June 4, 2015, the Company issued 2,343,750 shares of its common stock at $0.011 per share for gross proceeds of $26,157.

On June 5, the Company issued 4,544,674 shares of its common stock at $0.003 per share to extinguish convertible debt for $11,589.

On June 11, 2015 the Company issued 4,659,517 shares of its common stock at $0.002 per share to extinguish convertible debt for $8,154.

On June 12, 2015 the Company issued 3,000,000 shares of its common stock at $0.002 per share to extinguish convertible debt for $6,750.

On June 19, 2015 the Company issued 3,003,965 shares of its common stock at $0.002 per share to extinguish convertible debt for $5,257.

On June 26, 2015 the Company issued 5,503,988 shares of its common stock at $0.002 per share to extinguish convertible debt for $9,632.

On June 29, 2015 the Company issued 5,503,977 shares of its common stock at $0.002 per share to extinguish convertible debt for $9,632.

On June 30, 2015 the Company issued 3,277,749 shares of its common stock at $0.002 per share to extinguish convertible debt for $5,736.

On July 9, 2015, the Company issued 100,000 shares of its common stock to the legal representation of the Company for legal services rendered. The fair value of the shares is $6,000.

On July 9, 2015 the Company issued 6,104,716 shares of its common stock at $0.002 per share to extinguish convertible debt for $11,904.

On July 10, 2015, the Company issued 500,000 shares of its common stock of the Company for consulting services rendered. The fair value of shares is $30,000.

On August 11, 2015 the Company issued 6,104,716 shares of its common stock at $0.003 per share to extinguish convertible debt for $15,872.
 
On August 17, 2015 the Company issued 611,177 shares of its common stock at $0.020 per share to extinguish convertible debt for $12,224.

On August 17, 2015 the Company issued 18,100,000 shares of its common stock to the Chief Executive Officer of the Company for management services. The fair value of the shares is $1,629,000.

On August 17, 2015 the Company issued 8,500,000 shares of its common stock to the Chief Operating Officer of the Company for management services. The fair value of the shares is $765,000.

On August 17, 2015 the Company issued 4,500,000 shares of its common stock to a Director of the Company for management services. The fair value of the shares is $405,000.

On September 21, 2015 the Company issued 190,767 shares of its common stock at $0.078 per share to extinguish convertible debt for $5,500.

On October 7, 2015 the Company issued 341,690 shares of its common stock at $0.065 per share to extinguish convertible debt for $9,000.

On October 27, 2015 the Company issued 73,220 shares of its common stock at $0.1248 per share to extinguish convertible debt for $1,292.

 
 
18

 

On October 29, 2015 the Company issued 1,602,068 shares of its common stock at $0.079 per share to extinguish convertible debt for $31,000.

On November 10, 2015 the Company issued 1,602,068 shares of its common stock at $0.055 per share to extinguish convertible debt for $31,000.

On November 13, 2015 the Company issued 609,004 shares of its common stock at $0.056 per share to extinguish convertible debt for $10,708.

On December 1, 2015 the Company issued 591,212 shares of its common stock at $0.057 per share to extinguish convertible debt for $13,250.

On December 14, 2015 the Company issued 647,574 shares of its common stock at $0.052 per share to extinguish convertible debt for $13,250.

On December 17, 2015 the Company issued 169,183 shares of its common stock at $0.045 per share to extinguish convertible debt for $3,863.

On December 21, 2015 the Company issued 1,389,887 shares of its common stock at $0.046 per share to extinguish convertible debt for $29,000.

On December 30, 2015 the Company issued 1,591,509 shares of its common stock at $0.046 per share to extinguish convertible debt for $32,785.

On January 6, 2016 the Company issued 980,000 shares of its common stock at $0.041 per share to extinguish convertible debt for $25,482.

On January 13, 2016 the Company issued 800,000 shares of its common stock at $0.033 per share to extinguish convertible debt for $14,692.

On January 19, 2016 the Company issued 800,000 shares of its common stock at $0.028 per share to extinguish convertible debt for $7,933.

On January 21, 2016 the Company issued 1,000,000 shares of its common stock at $0.025 per share to extinguish convertible debt for $9,917.

On January 27, 2016 the Company issued 1,000,000 shares of its common stock at $0.021 per share to extinguish convertible debt for $9,100.

On January 27, 2016 the Company issued 1,200,000 shares of its common stock at $0.021 per share to extinguish convertible debt for $14,196.

On February 2, 2016 the Company issued 1,000,000 shares of its common stock at $0.020 per share to extinguish convertible debt for $8,850.

On February 6, 2016 the Company issued 1,500,000 shares of its common stock at $0.027 per share to extinguish convertible debt for $11,895.

On February 8, 2016 the Company issued 1,225,845 shares of its common stock at $0.027 per share to extinguish convertible debt for $13,041.

On February 11, 2016 the Company issued 1,800,000 shares of its common stock at $0.022 per share to extinguish convertible debt for $14,274.

On February 16, 2016 the Company issued 1,794,291 shares of its common stock at $0.025 per share to extinguish convertible debt for $14,677.

 
 
19

 

On February 24, 2016 the Company issued 1,900,000 shares of its common stock at $0.024 per share to extinguish convertible debt for $15,542.

On March 7, 2016, the Company issued 1,950,000 shares of its common stock at $0.020 per shares to extinguish convertible debt of $15,542.

On March 15, 2016, the Company issued 1,600,000 shares of its common stock at $0.018 per shares to extinguish convertible debt of $13,926.

On March 15, 2016, the Company issued 3,000,000 shares of its common stock for consultancy and advisory services provided of $3,000.

On March 15, 2016, the Company issued 2,000,000 shares of its common stock for consultancy and advisory services provided of $2,000.

On March 22, 2016, the Company issued 1,600,000 shares of its common stock at $0.018 per shares to extinguish convertible debt of $14,480.

On March 31, 2016, the Company issued 1,671,588 shares of its common stock at $0.017 per shares to extinguish convertible debt of $13,005.

On April 13, 2016, the Company issued 2,488,849 shares of its common stock at $0.023 per shares to extinguish convertible debt of $19,164.

On April 15, 2016, the Company issued 3,439,972 shares of its common stock at $0.018 per shares to extinguish convertible debt of $30,000.

On April 22, 2016, the Company issued 4,586,630 shares of its common stock at $0.017 per shares to extinguish convertible debt of $40,000.

On April 25, 2016, the Company issued 2,000,000 shares of its common stock at $0.018 per shares to extinguish convertible debt of $15,400.

On April 29, 2016, the Company issued 2,000,000 shares of its common stock at $0.013 per shares to extinguish convertible debt of $14,167.

On April 29, 2016, the Company issued 4,048,583 shares of its common stock at $0.013 per shares to extinguish convertible debt of $30,000.

On May 4, 2016, the Company issued 4,048,583 shares of its common stock at $0.016 per shares to extinguish convertible debt of $30,000.

On May 5, 2016, the Company issued 4,105,182 shares of its common stock at $0.015 per shares to extinguish convertible debt of $28,079.

On May 6, 2016, the Company issued 2,100,000 shares of its common stock at $0.015 per shares to extinguish convertible debt of $13,055.

On May 11, 2016, the Company issued 2,000,000, shares of its common stock at $0.013 per shares to extinguish convertible debt of $12,000.

On May 25, 2016, the Company issued 1,000,000, shares of its common stock at $0.013 per shares to extinguish convertible debt of $5,092.

On May 26, 2016, the Company issued 750,000 shares of its common stock at $0.011 per shares to extinguish convertible debt of $3,800.

 
 
20

 

On June 1, 2016, the Company issued 1,500,000 shares of its common stock at $0.011 per shares to extinguish convertible debt of $7,650.

On June 6, 2016, the Company issued 3,000,000 shares of its common stock at $0.010 per shares to extinguish convertible debt of $14,400.

On June 14, 2016, the Company issued 2,273,893 shares of its common stock at $0.008 per shares to extinguish convertible debt of $9,437.

On June 20, 2016, the Company issued 2,173,897 shares of its common stock at $0.008 per shares to extinguish convertible debt of $7,609.

On June 24, 2016, the Company issued 3,000,000 shares of its common stock at $0.007 per shares to extinguish convertible debt of $7,000.

On June 29, 2016, the Company issued 3,000,000 shares of its common stock at $0.007 per shares to extinguish convertible debt of $9,650.

On July 6, 2016, the Company issued 3,500,000 shares of its common stock at $0.007 per shares to extinguish convertible debt of $10,617

The holders of our shares of common stock and persons who desire to purchase them in any trading market that might develop in the future should be aware there may be significant state law restrictions upon the ability of investors to resell our shares. Accordingly, even if we are successful in having the shares available for trading on the OTCQB, investors should consider any secondary market for the Company's securities to be a limited one. We intend to seek coverage and publication of information regarding the Company in an accepted publication which permits a "manual exemption”. This manual exemption permits a security to be distributed in a particular state without being registered if the company issuing the security has a listing for that security in a securities manual recognized by the state. However, it is not enough for the security to be listed in a recognized manual. The listing entry must contain (1) the names of issuers, officers, and directors; and, (2) an issuer's balance sheet, and a profit and loss statement for either the fiscal year preceding the balance sheet or for the most recent fiscal year of operations. We may not be able to secure a listing containing all of this information. Furthermore, the manual exemption is a non-issuer exemption restricted to secondary trading transactions, making it unavailable for issuers selling newly issued securities. Most of the accepted manuals are those published in Standard and Poor's, Moody's Investor Service, Fitch's Investment Service, and Best's Insurance Reports, and many states expressly recognize these manuals. A smaller number of states declare they “recognize securities manuals” but do not specify the recognized manuals. The following states do not have any provisions and therefore do not expressly recognize the manual exemption: Alabama, Georgia, Illinois, Kentucky, Louisiana, Montana, South Dakota, Tennessee, Vermont and Wisconsin.
 
We currently do not intend to and may not be able to qualify securities for resale in other states which require shares to be qualified before they can be resold by our shareholders.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.


ITEM 5. OTHER INFORMATION

None.


 
21

 

ITEM 6. EXHIBITS

Exhibits required by Item 601 of Regulation S-K:

Exhibit
 
No.
Description
   
3.1
Articles of Incorporation. (attached as an exhibit to our Registration Statement on Form SB-2, filed on November 2, 2005).
   
3.2
Bylaws (attached as an exhibit to our Registration Statement on Form SB-2, filed on November 2, 2005).
   
3.3
Articles of Merger (attached as an exhibit to our current report on Form 8-K filed on June 28, 2006).
   
3.4
Certificate of Change dated June 8, 2006 (attached as an exhibit to our Registration Statement on Form S-1 filed on July 28, 2014).
   
3.5
Certificate of Change dated August 27, 2007 (attached as an exhibit to our Registration Statement on Form S-1 filed on July 28, 2014).
   
3.6
Articles of Merger dated August 27, 2007 (attached as an exhibit to our Registration Statement on Form S-1 filed on July 28, 2014).
   
3.7
Articles of Merger dated November 28, 2007 (attached as an exhibit to our Registration Statement on Form S-1 filed on July 28, 2014).
   
3.8
Certificate of Amendment to Articles of Incorporation filed February 24, 2014 (attached as an exhibit to our current report on Form 8-K filed on February 28, 2014)
   
10.1
Equity Purchase Agreement, dated as of February 20, 2014 among Western Standard Energy Corp., Dominovas Energy, LLC and the Members of Dominovas Energy, LLC 2014 (attached as an exhibit to our current report on Form 8-K filed on February 28, 2014).
   
10.2
Employment Agreement of Neal Allen dated February 20, 2014 2014 (attached as an exhibit to our current report on Form 8-K filed on February 28, 2014).
   
10.3
Employment Agreement of Michael Watkins dated February 20, 2014 2014 (attached as an exhibit to our current report on Form 8-K filed on February 28, 2014).
   
10.4
Equity Purchase Agreement between the Company and Kodiak Capital Group, LLC (attached as an exhibit to our current report on Form 8-K filed on October 21, 2014).
   
10.5
Registration Rights Agreement between the Company and Kodiak Capital Group, LLC (attached as an exhibit to our current report on Form 8-K filed on October 21, 2014).
   
10.6
Note by the Company to Kodiak Capital Group, LLC (attached as an exhibit to our Registration Statement on Form S-1 filed on November 13, 2014).
   
10.7
Dominovas Energy was accepted as a member of the Power Africa Initiative. (attached as an exhibit to our current report on Form 8-K filed on May 6, 2015).
   
31.1
Certification Statement pursuant to Section 302 of the Sarbanes- Oxley Act of 2002
   
32.1
Certification Statement pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
   
101
Interactive Data Files pursuant to Rule 405 of Regulation S-T.

 
 
22

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed n accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DOMINOVAS ENERGY CORPORATION


/s/ Neal Allen                  
Neal Allen President, Treasurer and Director
Principal Executive Officer,
Principal Financial Officer and
Principal Accounting Officer
Dated: July 29, 2016


 
23

 

EX-31.1 2 ex31-1.htm ex31-1.htm
Exhibit 31.1

Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act

I, Neal Allen, certify that:
 
1.
I have reviewed this report on Form 10-Q/A of Dominovas Energy Corporation;

2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 
a)
Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
 

/s/ Neal Allen                  
Neal Allen President, Treasurer and Director
Principal Executive Officer,
Principal Financial Officer and
Principal Accounting Officer
 
Dated: July 29, 2016

 
 

 
EX-32.1 3 ex32-1.htm ex32-1.htm
Exhibit 32.1

CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Neal Allen, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 
1.
the quarterly report on Form 10-Q/A for the period ended May 31, 2016 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 
2.
the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Dominovas Energy Corporation.

 
 
/s/ Neal Allen                  
Neal Allen President, Treasurer and Director
Principal Executive Officer,
Principal Financial Officer and
Principal Accounting Officer
 
Dated: July 29, 2016

A signed original of this written statement required by Section 906 has been provided to Dominovas Energy Corporation and will be retained by Dominovas Energy Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

 
 

 
EX-101.INS 4 dnrg-20160531.xml 5723 64157 5723 64157 15410 15410 21133 79567 540083 443310 715124 577576 1249086 627349 75000 75000 2579293 1723235 65835 72821 2645128 1796056 237301 169104 13477389 11931347 -16338685 -13816940 -2623995 -1716489 21133 79567 0.001 0.001 700000000 700000000 237304383 169106668 237304383 169106668 13746 110 42097 110 3569 12862 40602 49152 0 32500 0 197500 20425 31200 92685 196200 0 113 0 0 36610 1727 55338 1727 3528 15656 34091 26139 11185 4500 27225 20355 70721 50362 211987 151790 279866 110189 511491 350937 0 0 65350 0 66454 14812 219241 18950 -506104 -274031 -1300107 -1012860 -337988 -340000 -885688 -340000 -69882 0 -335950 0 407870 340000 1221638 340000 -913974 -614031 -2521745 -1352860 0.00 -0.01 -0.01 -0.01 222881107 92748439 191493990 92748439 -2521745 -1352860 92685 190000 0 196200 55338 1727 -6985 22573 885688 340000 335950 0 89500 0 0 16531 234319 456519 -835250 -129310 776816 84500 0 48697 776816 133197 -58434 3887 64157 5096 5723 8983 <!--egx--><p style='margin:0in 0in 0pt'>1. ORGANIZATION AND BASIS OF PRESENTATION</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Dominovas<b>&nbsp;</b>Energy Corporation (the "Company") was incorporated on February 2, 2005 under the laws of the State of Nevada and is in the business of developing fuel cell and alternative energy projects.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The following interim unaudited financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles for interim financial information and with the rules and regulations of the Securities and Exchange Commission ("SEC").</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Accordingly, these financial statements do not include all of the disclosures required by United States Generally Accepted Accounting Principles (&#147;US GAAP&#148;) for complete financial statements. These interim unaudited financial statements should be read in conjunction with the Company's audited financial statements for the year ended August 31, 2015. In the opinion of management, the interim unaudited financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results of the interim period presented. Operating results for the nine-month period ended May 31, 2016 are not necessarily indicative of the results that may be expected for the year ending August 31, 2016.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of May 31, 2016, the Company has not achieved profitable operations and has accumulated a deficit of $16,338,685. Continuation as a going concern is dependent upon the ability of the Company to obtain the necessary financing to meet obligations and pay its liabilities arising from normal business operations when they come due and ultimately upon its ability to achieve profitable operations. The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will be able to continue as a going concern. These consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. These adjustments could be material. Management intends to obtain additional funding by borrowing funds from its directors and officers, issuing promissory notes and convertible debt and/or a private placement of common stock.</p> <!--egx--><p style='margin:0in 0in 0pt'>2. RECENT ACCOUNTING PRONOUNCEMENTS</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Recent pronouncements with future effective dates are either not applicable or are not expected to be significant to the financial statement of the Company.</p> <!--egx--><p style='margin:0in 0in 0pt'>3. RELATED PARTY TRANSACTIONS</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the nine months ended May 31, 2016, the Company incurred wages of $Nil (May 31, 2015 - $84,000), $84,000 (May 31, 2015 - $56,188), $97,500 (May 31, 2015 - $78,000) and $165,938 (May 31, 2015 - $132,750) to the Executive Vice President of Business Operations, the Executive Vice President of Fuel Cell Operations, the Chief Operating Officer and the President and Chief Executive Officer of the Company, respectively. As of May 31, 2016, unpaid wages of $704,002 (August 31, 2015 - $577,576) were owed to the related parties and are included in accrued liabilities.</p> <!--egx--><p style='margin:0in 0in 0pt'>5. CONVERTIBLE DEBT</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Details of the Company&#146;s convertible notes, which are measured at their fair value are as follows:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>a)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On October 27, 2014, the Company issued a convertible note in the amount of $165,000 in exchange for consulting services rendered. The note is non-interest bearing, was due on October 27, 2015, and is unsecured.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The loan may be converted into the Company's common stock, at a conversion price for each share equal to the lowest closing bid price for the common stock for the thirty trading days ending on the trading day immediately before the conversion date multiplied by 50% at any time after April 28, 2015.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the year ended August 31, 2015, $106,650 was converted into 43,314,479 common shares of the Company.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>As at May 31, 2016, the principal remaining of this note was $58,250 with a fair value of $129,444 based on the value of the common shares that would be issued if converted on May 31, 2016.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>b)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On March 19, 2015, the Company entered into an agreement for two convertible notes in the amount of $26,500 each. The first note was issued in March 2015, for proceeds of $25,000 (net of $1,500 of financing fees), carried an interest at 8%, and was due on March 19, 2016. The second note was paid for by the issuance of an offsetting $26,500 secured note issued to the Company. The second $26,500 note was issued and received in cash on November 13, 2015.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The lender could convert the entire note amount into shares of the Company's common stock, at a conversion price for each share equal to the lowest closing bid price for the common stock for the twenty trading days ending on the trading day immediately before the conversion date multiplied by 50% at any time. The first note was convertible into shares after the second note has been received by the Company.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company issued 2,453,467 common stock with a fair value of $147,769 on conversion of the notes issued in March 2015 and November 2015.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>c)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On April 30, 2015, the Company issued a convertible unsecured note in the amount of $62,000 (including $7,000 of financing fees). The note carries an interest rate of 12% (22% default rate), and was due on January 30, 2016.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the year ended August 31, 2015, $2,507 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $92,407.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, the Company issued 3,373,329 common stock with a fair value of $222,578 on conversion of this convertible debt.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>d)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On June 10, 2015, the Company issued a convertible unsecured note in the amount of $58,000 (including $8,000 of financing fees). The note carries an interest rate of 12% (22% default rate), and was due on March 10, 2016.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the year ended August 31, 2015, $1,565 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $79,865.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, the Company issued 2,981,396 common stock with a fair value of $137,144 on conversion of this convertible debt.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>e)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On July 6, 2015, the Company issued a convertible unsecured note in the amount of $85,500 (including $10,500 of financing fees). The note carries an interest rate of 12% (22% default rate), and was due on April 6, 2016.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the year ended August 31, 2015, $1,574 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $112,724.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, the Company issued 9,694,291 common stock with a fair value of $238,360 on conversion of this convertible debt.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>f)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On August 10, 2015, the Company issued a convertible unsecured note in the amount of $85,500 (including $10,500 of financing fees). The note carries an interest rate of 12% (22% default rate), and is due on May 10, 2016.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the year ended August 31, 2015, $590 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $107,465.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, the Company issued 11,210,437 common stock with a fair value of $228,369 on conversion of this convertible debt.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The loans c) &#150; f) above were convertible into shares of the Company's common stock, at a conversion price for each share equal to the average of the three lowest closing bid prices for the common stock for the ten trading days ending on the trading day immediately before the conversion date multiplied by 50% at any time after each respective maturity date.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>g)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On September 11, 2015, the Company issued a convertible unsecured note in the amount of $95,000 (including $11,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on June 11, 2016.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company may prepay the note up to 180 days after its issuance with the following penalties:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Number of days after issuance</b></p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Penalty</b></p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&lt; 30 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>125% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>31 &#150; 60 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>130% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>61 &#150; 90 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>135% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>91 &#150; 120 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>140% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>121 &#150; 150 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>145% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>151 &#150; 180 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>150% of principal plus accrued interest</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The lender may convert the note at a conversion price equal to the average of the three lowest closing bid prices for the common stock for twenty trading days ending on the trading day immediately before conversion multiplied by 50% at any time after the maturity day.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, the Company issued 9,850,000 common stock with a fair value of $134,050 on conversion of $63,514 of principal of this convertible debt.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, $2,722 of interest was accrued on this note. As at May 31, 2016, the remaining principal of this note of $31,486 has a fair value of $69,116 determined based on the fair value of the shares would be converted at May 31, 2016.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>h)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On December 9, 2015, the Company issued a convertible unsecured note in the amount of $100,000 (including $10,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on September 9, 2016.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, $5,721 of interest was accrued on this note. As at May 31, 2016, the remaining principal of this note of $100,000 has a fair value of $207,087 determined based on the fair value of the shares would be converted at May 31, 2016.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>i)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On February 19, 2016, the Company issued a convertible unsecured note in the amount of $108,000 (including $8,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on November 19, 2016.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, $3,622 of interest was accrued on this note. As at May 31, 2016, this note had a fair value of $223,654 determined based on the fair value of the shares would be converted at May 31, 2016.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>j)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On April 1, 2016, the Company issued a convertible unsecured note in the amount of $108,000 (including $8,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on January 1, 2017.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, $2,130 of interest was accrued on this note. As at May 31, 2016, this note had a fair value of $223,654 determined based on the fair value of the shares would be converted at May 31, 2016.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company may prepay the loans h) &#150; j) above up to 180 days after its issuance with the following penalties:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Number of days after issuance</b></p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Penalty</b></p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&lt; 30 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>125% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>31 &#150; 60 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>130% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>61 &#150; 90 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>135% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>91 &#150; 120 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>140% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>121 &#150; 150 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>145% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>151 &#150; 180 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>150% of principal plus accrued interest</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The lender may convert the note h) &#150;j) after 90 days following issuance at a conversion price equal to the average of the three lowest closing bid prices for the common stock for twenty trading days ending on the trading day immediately before conversion multiplied by 53% at any time after the maturity day.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>k)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On June 26, 2015, the Company issued a convertible unsecured note in the amount of $50,000. The note carried an interest rate of 10% (18% default rate), and was due on March 26, 2016.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The lender could convert the entire note amount into shares of the Company's common stock, at a conversion price for each share equal to the three (3) lowest closing bid prices for the common stock for the ten trading days ending on the trading day immediately before the conversion date multiplied by 65%.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the year ended August 31, 2015, $904 of interest was accrued on this note. The fair value of the note as at August 31, 2015, was determined based on the amount the Company would settle the note by prepayment, was $65,904</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, the Company issued 3,405,845 common stock with a fair value of $97,878 on conversion of this convertible debt.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>l)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On September 29, 2015, the Company issued a convertible unsecured note in the amount of $150,000 (including $14,760 of finance fees). The note carries an interest rate of 10% (18% default rate), and is due on March 29, 2016.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The entire note was convertible into shares of the Company's common stock, at a conversion price for each share equal to the three lowest closing bid prices for the common stock for the twenty trading days ending on the trading day immediately before the conversion date multiplied by 60% at any time after the Maturity Date.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, the Company issued 20,228,950 common stock with a fair value of $318,879 on conversion of this convertible debt.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>m)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On January 14, 2016, the Company issued a convertible unsecured note in the amount of $57,000 (including $7,000 of finance fees). The note carries an interest of 10% (18% default rate), and is due on October 14, 2016 (&#147;Maturity Date&#148;).</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company may repay the note up to 180 days after its issuance, with approval from the lender, with the following penalties:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Number of days after issuance</b></p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Penalty</b></p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&lt; 90 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>135% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>91 &#150; 120 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>140% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>121 &#150; 180 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>145% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&gt; 180 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>150% of principal plus accrued interest</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The entire note may be converted into shares of the Company&#146;s common stock, at a conversion price for each share equal to the three lowest closing bid prices for the common stock for the twenty trading days ending on the trading day immediately before the conversion date multiplied by 53% at any time after the Maturity Date.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, $2,155 of interest was accrued on this note.&nbsp;&nbsp;As at May 31, 2016, this note has a fair value of $82,650 determined based on the amount the Company would settle this note by prepayment.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="48" style='border-top:#f0f0f0;border-right:#f0f0f0;width:0.5in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>n)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>On January 25, 2016, the Company issued a convertible unsecured note in the amount of $555,000.&nbsp;&nbsp;The note carries an original interest discount (&#147;OID&#148;) of $50,000 and the Company agrees to pay $5,000 of the finance fees. The Company receives the payments in five tranches, of which the initial tranche equals to the amount of $115,000 (including OID of $10,000 and finance fees of $5,000) and the remainder is delivered in four instalments in the amount of $110,000 (including OID of $10,000) each. The note carries an interest rate of 10% (22% default rate), and is due on May 25, 2017.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>As of May 31, 2016, the Company received the initial tranche of $115,000 (including OID and finance fees) and the second tranche of $110,000 (including OID and finance fees).</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The lender may convert the note at a conversion price equal to the average of the three lowest closing bid prices for the common stock for twenty trading days ending on the trading day immediately before conversion multiplied by 60% at any time after 180 days after the cash was delivered.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company may prepay any outstanding balance of note, upon delivering an optional prepayment notice; provided that, the date of prepayment is not less the five trading days for the optional prepayment notice.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Number of days after issuance</b></p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Penalty</b></p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Any time after determined date of prepayment</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>125% of principal plus accrued interest</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, $7,829 of interest was accrued on this note. As at May 31, 2016, this note has a fair value of $281,250 determined based on the amount the Company would settle this note by prepayment.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <!--egx--><p style='margin:0in 0in 0pt'>6. COMMON STOCK</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Authorized: 700,000,000 common shares.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Issued and outstanding: 237,304,383 common shares.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On August 14, 2015, the Company increased its authorized common shares to 700,000,000 shares from 200,000,000 share.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company has a stock option plan (the &#147;2010 Plan&#148;) allowing the Company's directors to grant up to 5,000,000 stock options. The 2010 Plan allows the Company to grant options to its officers, directors and employees. In addition, the Company may grant options to individuals who act as consultants to the Company. Pursuant to the terms and conditions of the 2010 Plan, the exercise price for the stock options must be no less than: 100% of the fair market value of the common stock on the date of grant for participants that hold less than 10% of the Company's outstanding common stock; and 110% of the fair market value of the common stock on the date of grant for participants that hold 10% or more of the Company's outstanding common stock.&nbsp;&nbsp;Options will vest at the discretion of the plan administrator.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>As of May 31, 2016, no options have been granted.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>During the period ended May 31, 2016, the company had the following share transactions:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>a)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Issued 63,197,705 shares with a fair value of $1,525,028 to extinguish convertible debt of 607,514 plus accrued interest of $31,826.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>b)&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>Issued 5,000,000 shares with a fair value of $89,500 for salaries and management fees.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <!--egx--><p style='margin:0in 0in 0pt'>7. COMMITMENTS</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>The Company entered into a lease agreement for a term of five years ending October 31, 2019. Under the agreement, the Company is committed to the following rent payments:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>Dates</b></p></td> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="bottom" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Amount</b></p></td> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td></tr> <tr> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>March 1, 2016 to August 31, 2016</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>$</p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>41,327</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>September 1, 2016 to August 31, 2017</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>169,441</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>September 1, 2017 to August 31, 2018</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>174,524</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>September 1, 2018 to August 31, 2019</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>179,760</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>September 1, 2019 to October 31, 2019</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:#cceeff;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>30,160</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:white;border-bottom:#f0f0f0;padding-bottom:3pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'><b>Total</b></p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:3pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:black 2.25pt double;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'><b>$</b></p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:white;border-bottom:black 2.25pt double;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>595,212</b></p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:3pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Under the agreement, the Company also had to incur $125,000 in leasehold improvements by September 30, 2014. As of the date of these financial statements, the Company has not yet incurred the required expenditures and the lease is in default.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On March 1, 2014, the Company entered into an employment agreement with the President and Chief Executive Officer of the Company. Under the agreement, the Company will pay an annual salary of $177,000 for 18 months with a 25% increase after 18 months. The agreement will be in effect for 3 years.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On March 1, 2014, the Company entered into an employment agreement with the Chief Operating Officer of the Company. Under the agreement, the Company will pay an annual salary of $104,000 for 18 months with a 25% increase after 18 months. The agreement will be in effect for 3 years.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On March 1, 2014, the Company entered into an employment agreement with the Executive Vice President of Fuel Cell Operations of the Company. Under the agreement, the Company will pay an annual salary of $112,000. The agreement will be in effect for 5 years. The Executive shall vest 25,000 shares of the Company stock annually and is only fully vested and fully deliverable after 5 years of continuous and satisfactory employment.</p> <p style='margin:0in 0in 0pt'>On December 23, 2015, the Company entered into an employment agreement with the President of a division of the Company to be formed. Under the agreement, the Company will pay an annual salary of $115,000 and the Executive shall be granted 200,000 restricted common shares of the Company upon execution of the employment contract. The Executive shall also be granted the following Company stock:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>50,000 shares of the Company monthly for year one.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>75,000 shares of the Company monthly for year two.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>150,000 shares of the Company monthly for year three.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>120,000 shares of the Company monthly for year four.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>300,000 shares of the Company monthly for year five.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>All stock as granted is only fully vested and fully deliverable to Executive after 5 years of continuous and satisfactory employment.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On January 15, 2016, the Company entered into an employment agreement with the Managing director of a division of the Company to be formed. Under the agreement, the Company will pay an annual salary of $55,000 and the Executive shall be granted 5,000 restricted common shares of the Company upon execution of the employment contract. The Executive shall also be granted the following Company stock:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>1,000 shares of the Company monthly for year one.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>2,500 shares of the Company monthly for year two.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>5,000 shares of the Company monthly for year three.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>All stock as granted is only fully vested and fully deliverable to Executive after 3 years of continuous and satisfactory employment.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>On January 21, 2016, the Company entered into an employment agreement with the Managing Director of the Africa division of the Company. Under the agreement, the Company will pay an annual salary of $80,000 and the Executive shall also be granted the following Company stock:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>8,333 shares of the Company monthly for year one.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>12,500 shares of the Company monthly for year two.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="96" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1in;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>-&nbsp;&nbsp;</p></td> <td valign="top" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>16,666 shares of the Company monthly for year three.</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>All stock as granted is only fully vested and fully deliverable to Executive after 3 years of continuous and satisfactory employment.</p> <!--egx--><p style='margin:0in 0in 0pt'>8. SUBSEQUENT EVENTS</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>Subsequent to period ended May 31, 2016, the Company issued 18,447,790 common shares on conversion of $66,363 of principal convertible debt.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p>Subsequent to period ended May 31, 2016, the Company issued 4,945,599 common shares for gross proceeds of $20,000. <!--egx--><p style='margin:0in 0in 0pt'>4. NOTES PAYABLE</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <p style='margin:0in 0in 0pt'>As of May 31, 2016, the Company has notes payable of $75,000 (August 31, 2015 - $75,000).&nbsp;&nbsp;The notes are non-interest bearing, unsecured and due on demand.</p> <!--egx--><p style='margin:0in 0in 0pt'>The Company may prepay the loans h) &#150; j) above up to 180 days after its issuance with the following penalties:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Number of days after issuance</b></p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Penalty</b></p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&lt; 30 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>125% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>31 &#150; 60 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>130% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>61 &#150; 90 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>135% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>91 &#150; 120 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>140% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>121 &#150; 150 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>145% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>151 &#150; 180 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>150% of principal plus accrued interest</p></td></tr></table> <!--egx--><p style='margin:0in 0in 0pt'>The Company entered into a lease agreement for a term of five years ending October 31, 2019. Under the agreement, the Company is committed to the following rent payments:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>Dates</b></p></td> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="bottom" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Amount</b></p></td> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td></tr> <tr> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" colspan="2" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" style='border-top:#f0f0f0;border-right:#f0f0f0;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>March 1, 2016 to August 31, 2016</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>$</p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>41,327</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>September 1, 2016 to August 31, 2017</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>169,441</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>September 1, 2017 to August 31, 2018</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>174,524</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>September 1, 2018 to August 31, 2019</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>179,760</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>September 1, 2019 to October 31, 2019</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:#cceeff;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>30,160</p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="88%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:88%;background:white;border-bottom:#f0f0f0;padding-bottom:3pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'><b>Total</b></p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:3pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:black 2.25pt double;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'><b>$</b></p></td> <td valign="bottom" width="9%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:9%;background:white;border-bottom:black 2.25pt double;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'><b>595,212</b></p></td> <td valign="bottom" width="1%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:1%;background:white;border-bottom:#f0f0f0;padding-bottom:3pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td></tr></table> <!--egx--><p style='margin:0in 0in 0pt'>The Company may repay the note up to 180 days after its issuance, with approval from the lender, with the following penalties:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Number of days after issuance</b></p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Penalty</b></p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&lt; 90 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>135% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>91 &#150; 120 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>140% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>121 &#150; 180 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>145% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&gt; 180 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>150% of principal plus accrued interest</p></td></tr></table> <!--egx--><p style='margin:0in 0in 0pt'>The Company may prepay the note up to 180 days after its issuance with the following penalties:</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Number of days after issuance</b></p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Penalty</b></p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&lt; 30 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>125% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>31 &#150; 60 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>130% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>61 &#150; 90 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>135% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>91 &#150; 120 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>140% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>121 &#150; 150 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>145% of principal plus accrued interest</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>151 &#150; 180 days</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>150% of principal plus accrued interest</p></td></tr></table> <p style='margin:0in 0in 0pt'>&nbsp;</p> <!--egx--><p style='margin:0in 0in 0pt'>The Company may prepay any outstanding balance of note, upon delivering an optional prepayment notice; provided that, the date of prepayment is not less the five trading days for the optional prepayment notice.</p> <p style='margin:0in 0in 0pt'>&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Number of days after issuance</b></p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:1.5pt;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'><b>&nbsp;</b></p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:black 1.5pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Penalty</b></p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in;background-color:transparent'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td></tr> <tr> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Any time after determined date of prepayment</p></td> <td valign="top" width="2%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:2%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>&nbsp;</p></td> <td valign="top" width="42%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:42%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>125% of principal plus accrued interest</p></td></tr></table> 16338685 0 84000 84000 56188 97500 78000 165938 132750 704002 577576 75000 75000 165000 58250 129444 26500 25000 1500 0.0800 26500 2453467 2453467 147769 147769 62000 58000 85500 85500 95000 100000 108000 108000 50000 150000 57000 555000 7000 8000 10500 10500 11000 10000 8000 8000 14760 7000 5000 0.1200 0.1200 0.1200 0.1200 0.1200 0.1200 0.1200 0.1200 0.1000 0.1000 0.1000 0.1000 50000 115000 10000 5000 110000 106650 43314479 2507 92407 3373329 222578 1565 79865 2981396 137144 1574 112724 9694291 238360 590 107465 11210437 228369 9850000 134050 63514 2722 31486 69116 5721 100000 207087 3622 223654 2130 223654 904 65904 3405845 97878 20228950 318879 2155 82650 7829 281250 1.2500 1.3000 1.3500 1.4000 1.4500 1.5000 1.2500 1.3000 1.3500 1.4000 1.4500 1.5000 1.3500 1.4000 1.4500 1.5000 1.2500 700000000 237304383 5000000 1.0000 0.1000 1.1000 0.1000 63197705 1525028 607514 31826 5000000 89500 41327 169441 174524 179760 30160 595212 125000 177000 104000 112000 25000 115000 55000 80000 200000 5000 50000 75000 150000 120000 300000 1000 8333 2500 12500 5000 16666 18447790 66363 4945599 20000 10-Q 2016-05-31 true yes Dominovas Energy Corp 0001343254 dnrg --08-31 237304383 Smaller Reporting Company Yes No No 2016 Q3 0001343254 2015-09-01 2016-05-31 0001343254 2016-05-31 0001343254 2016-03-31 0001343254 2015-08-31 0001343254 2016-02-29 2016-05-31 0001343254 2015-03-01 2015-05-31 0001343254 2014-09-01 2015-05-31 0001343254 2014-08-31 0001343254 2015-05-31 0001343254 2014-10-27 0001343254 2015-03-19 0001343254 2015-11-13 0001343254 2015-03-31 0001343254 2015-11-30 0001343254 2015-04-30 0001343254 2015-06-10 0001343254 2015-07-06 0001343254 2015-08-10 0001343254 2015-09-11 0001343254 2015-12-09 0001343254 2016-02-19 0001343254 2016-04-01 0001343254 2015-06-26 0001343254 2015-09-29 0001343254 2016-01-14 0001343254 2016-01-25 0001343254 2014-09-01 2015-08-31 0001343254 2019-10-31 0001343254 2014-09-30 0001343254 2014-03-01 0001343254 2015-12-23 0001343254 2016-01-15 0001343254 2016-01-21 shares iso4217:USD iso4217:USD shares pure EX-101.SCH 5 dnrg-20160531.xsd 000090 - Disclosure - NOTES PAYABLE link:presentationLink link:definitionLink link:calculationLink 000180 - Statement - RELATED PARTY TRANSACTIONS (Details) link:presentationLink link:definitionLink link:calculationLink 000100 - Disclosure - CONVERTIBLE DEBT link:presentationLink link:definitionLink link:calculationLink 000220 - Statement - CONVERTIBLE DEBT TRANSACTIONS DURING THE PERIOD (Details) link:presentationLink link:definitionLink link:calculationLink 000140 - Disclosure - SCHEDULE OF CONVERTIBLE DEBT (Tables) link:presentationLink link:definitionLink link:calculationLink 000040 - Statement - CONDOLIDATED STATEMENTS OF OPERATIONS (Unaudited) link:presentationLink link:definitionLink link:calculationLink 000260 - Statement - SUBSEQUENT EVENT TRANSACTIONS (Details) link:presentationLink link:definitionLink link:calculationLink 000250 - Statement - COMMITMENTS TRANSACTIONS (Details) link:presentationLink link:definitionLink link:calculationLink 000230 - Statement - THE COMPANY MAY PREPAY THE LOANS -CFGHIKLM (Details) link:presentationLink link:definitionLink link:calculationLink 000170 - Statement - RELATED PARTY TRANSACTIONS - During the period (Details) link:presentationLink link:definitionLink link:calculationLink 000160 - Statement - ORGANIZATION AND BASIS OF PRESENTATION (Details) link:presentationLink link:definitionLink link:calculationLink 000240 - Statement - EQUITY TRANSACTIONS (Details) link:presentationLink link:definitionLink link:calculationLink 000150 - Disclosure - SCHEDULE OF COMMITMENTS (Tables) link:presentationLink link:definitionLink link:calculationLink 000020 - Statement - Consolidated Balance Sheets (Unaudited) link:presentationLink link:definitionLink link:calculationLink 000190 - Statement - NOTES PAYABLE (Details) link:presentationLink link:definitionLink link:calculationLink 000130 - Disclosure - SUBSEQUENT EVENTS link:presentationLink link:definitionLink link:calculationLink 000010 - Document - Document and Entity Information link:presentationLink link:definitionLink link:calculationLink 000200 - Statement - CONVERTIBLE DEBT OF A,B (Details) link:presentationLink link:definitionLink link:calculationLink 000030 - Statement - CONSOLIDATED BALANCE SHEETS PARENTHETICALS link:presentationLink link:definitionLink link:calculationLink 000110 - Disclosure - COMMON STOCK link:presentationLink link:definitionLink link:calculationLink 000205 - Statement - CONVERTIBLE DEBT OF C,D,E,F,G,H,I,J,K,L,M,N (Details) link:presentationLink link:definitionLink link:calculationLink 000060 - Disclosure - ORGANIZATION AND BASIS OF PRESENTATION link:presentationLink link:definitionLink link:calculationLink 000080 - Disclosure - RELATED PARTY TRANSACTIONS link:presentationLink link:definitionLink link:calculationLink 000050 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) link:presentationLink link:definitionLink link:calculationLink 000120 - Disclosure - COMMITMENTS link:presentationLink link:definitionLink link:calculationLink 000070 - Disclosure - RECENT ACCOUNTING PRONOUNCEMENTS link:presentationLink link:definitionLink link:calculationLink EX-101.CAL 6 dnrg-20160531_cal.xml EX-101.DEF 7 dnrg-20160531_def.xml EX-101.LAB 8 dnrg-20160531_lab.xml The Executive shall also be granted the Company monthly for year two The Executive shall also be granted the Company monthly for year two Total Total Number of days after issuance from 121 days to 180 days penality: NumberOfDaysAfterIssuanceFrom91DaysTo120DaysPenality4 Number of days after issuance from 121 days to 150 days penality. NumberOfDaysAfterIssuanceFrom91DaysTo120DaysPenality2 Company issued common stock on conversion of convertible debt of loan l Company issued common stock on conversion of convertible debt of loan l Fair value of the shares would be converted of loan j Fair value of the shares would be converted of loan j Fair value of common stock shares on conversion of this convertible debt-d Fair value of common stock shares on conversion of this convertible debt-d Initial tranche in amount including financing fees Initial tranche in amount including financing fees Company issued common stock on conversion of the notes Company issued common stock on conversion of the notes Schedule of the Company may repay the loan up to 180 days after its issuance, with approval from the lender, with the following penalties Tabulsr disclosure for the Company may repay the loan up to 180 days after its issuance, with approval from the lender, with the following penalties RECENT ACCOUNTING PRONOUNCEMENTS Proceeds from issuance of convertible loans Prepaid Change in fair value of debt Change in fair value of convertible debt Total operating expenses Entity Well-known Seasoned Issuer Entity Trading Symbol Company will pay an annual salary to President and Chief Executive Officer for 18 months with a 25% increase after 18 months Company will pay an annual salary to President and Chief Executive Officer for 18 months with a 25% increase after 18 months Common shares authorized The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Number of days after issuance from 61 days to 90 days penality. NumberOfDaysAfterIssuanceFrom31DaysTo60DaysPenality2 Company issued common stock on conversion of convertible debt of loan k fair value Company issued common stock on conversion of convertible debt of loan k fair value Accured interest on loan i Accured interest on loan i Company issued common stock on conversion of convertible debt of loan f fair value Company issued common stock on conversion of convertible debt of loan f fair value Accured interest on loan f Accured interest on loan f CONVERTIBLE DEBT TRANSACTIONS DURING THE PERIOD First note was issued for proceeds net of financing fees First note was issued for proceeds net of financing fees Schedule of Rental Payments for Operating Leases ORGANIZATION AND BASIS OF PRESENTATION {1} ORGANIZATION AND BASIS OF PRESENTATION Non-cash items Loss on debt conversion Loss on debt conversion Total liabilities Total liabilities Document Fiscal Period Focus Rent payments September 1, 2016 to August 31, 2017 Rent payments September 1, 2016 to August 31, 2017 Number of days after issuance from 91 days to 120 days penality: NumberOfDaysAfterIssuanceLessThan90DaysPenality4 Number of days after issuance from 121 days to 150 days penality, NumberOfDaysAfterIssuanceFrom121DaysTo150DaysPenality1 Company issued common stock on conversion of convertible debt of loan k Company issued common stock on conversion of convertible debt of loan k Company issued common stock on conversion of convertible debt of loan g Company issued common stock on conversion of convertible debt of loan g The fair value of the loan f inclunding accured interest was The fair value of the loan f inclunding accured interest was Company issued convertible unsecured note in amount Company issued convertible unsecured note in amount Schedule of prepay the loans up to 180 days after its issuance with the penalties Tabular disclosure of The Company may prepay the loans c) - f) above up to 180 days after its issuance with the penalties COMMITMENTS {1} COMMITMENTS Net cash used in operating activities Net cash used in operating activities Subcontractor fees The amount of expense provided in the period for subcontractor fees during the period. Lease inducement Amount as of the balance sheet date of lease inducement Notes payable Accounts payable LIABILITIES AND STOCKHOLDERS' DEFICIT Entity Central Index Key The Executive shall vest shares of the Company monthly for year three The Executive shall vest shares of the Company monthly for year three Issued shares to extnguish convertible debt, fair value of shares IssuedSharesToExtnguishConvertibleDebtFairValueOfShares5 The fair value of the loan k inclunding accured interest was The fair value of the loan k inclunding accured interest was Accured interest on loan e Accured interest on loan e The fair value of the loan-d inclunding accured interest was The fair value of the loan-d inclunding accured interest Interest was accrued on this loan was Interest was accrued on this loan was Note converted into shares of common stock Note converted into shares of common stock Company issued common stock with fair value on conversion of notes Company issued common stock with fair value on conversion of notes RECENT ACCOUNTING PRONOUNCEMENTS {1} RECENT ACCOUNTING PRONOUNCEMENTS Cash flows from financing activities Office and general administration Investor communications and transfer agent Parentheticals Common stock $0.001 par value, 700,000,000 common shares authorized, 237,304,383 issued and outstanding at May 31, 2016 and 169,106,668 at August 31, 2015 Current Assets Amendment Description Issued shares to extnguish convertible debt of value IssuedSharesToExtnguishConvertibleDebtOfValue4 Common shares issued and outstanding Total number of common shares of an entity that have been sold or granted to shareholders Any time after determined date of prepayment Penality Any time after determined date of prepayment Penality Number of days after issuance from 61 days to 90 days penality, NumberOfDaysAfterIssuanceFrom61DaysTo90DaysPenality1 Accured interest on loan n Accured interest on loan n Remaining principal of this note has a fair value Remaining principal of this note has a fair value Initial tranche in amount including OID Initial tranche in amount including OID Note carries an interest rate with default rate 22% and 18% Note carries an interest rate with default rate 22% and 18% SUBSEQUENT EVENTS CONVERTIBLE DEBT {1} CONVERTIBLE DEBT CONVERTIBLE DEBT NOTES PAYABLE {1} NOTES PAYABLE Interest Expense. Amount of the cost of borrowed funds accounted for as interest expense. Interest expense Cash ASSETS Company also incurred lease hold improvements Company also incurred lease hold improvements The exercise price for the stock options must be no less than the fair market value of the common stock TheExercisePriceForTheStockOptionsMustBeNoLessThanTheFairMarketValueOfTheCommonStock Number of days after issuance less than 90 days penality NumberOfDaysAfterIssuanceLessThan90DaysPenality4 The compay issued common stock. The compay issued common stock. Initial tranche in amount Initial tranche in amount Schedule of the Company may prepay the loan up to 180 days after its issuance with the following penalties Tabulsr disclosure for the Company to prepay the loan up to 180 days after its issuance with the penalties COMMITMENTS RELATED PARTY TRANSACTIONS {1} RELATED PARTY TRANSACTIONS Salaries and management fees Legal fees Common Stock, Shares Authorized Entity Public Float The Executive shall also be granted the Company monthly for year three The Executive shall also be granted the Company monthly for year three The Executive shall vest shares of the Company stock annually and is only fully vested and fully deliverable after 5 years of continuous and satisfactory employment TheExecutiveShallVestSharesOfTheCompanyStockAnnuallyAndIsOnlyFullyVestedAndFullyDeliverableAfter5YearsOfContinuousAndSatisfactoryEmployment Company will pay an annual salary to President and Chief operating Officer for 18 months with a 25% increase after 18 months Company will pay an annual salary to President and Chief operating Officer for 18 months with a 25% increase after 18 months Fair value of the shares would be converted Fair value of the shares would be converted Fair value of common stock shares on conversion of this convertible debt. The compay issued common stock shares Company issued convertible unsecured note including financing fees Company issued convertible unsecured note including financing fees CONVERTIBLE DEBT OF C,D,E,F,G,H,I,J,K,L,M,N DETAILS Related Party Transactions - During the period COMMON STOCK {1} COMMON STOCK Loss on debt conversion {1} Loss on debt conversion Loss on debt conversion Consulting costs Costs incurred in providing consulting services Common Stock, Shares Issued Entity Current Reporting Status Rent payments September 1, 2017 to August 31, 2018 Rent payments September 1, 2017 to August 31, 2018 Note H and J Number of days after issuance from 151 days to 180 days penality, NumberOfDaysAfterIssuanceFrom121DaysTo150DaysPenality1 Company issued common stock on conversion of convertible debt of loan g fair value Company issued common stock on conversion of convertible debt of loan g fair value Principal remaining of note Principal remaining of note Net cash provided by financing activities Net cash provided by financing activities Financing costs Amount of the cost of borrowed funds accounted for as interest expense for debt. Foreign exchange loss Current Fiscal Year End Date The Executive shall vest shares of the Company monthly for year four The Executive shall vest shares of the Company monthly for year three The Executive shall vest shares of the Company monthly for year one Company entered into an employment agreement with the Senior Vice President of Finance and Investments of the Company and pay annual salary Rent payments September 1, 2018 to August 31, 2019 Rent payments September 1, 2018 to August 31, 2019 Fair value for salaries and management fees Fair value for salaries and management fees Number of days after issuance less than 30 days penality. NumberOfDaysAfterIssuanceLessThan30DaysPenality2 Accured interest on loan g Accured interest on loan g Accured interest on loan d Accured interest on loan d Company has notes payable Including the current and noncurrent portions, aggregate carrying amount of all types of notes payable, as of the balance sheet date, with initial maturities beyond one year or beyond the normal operating cycle, if longer. Organization details Changes in operating assets and liabilities Financing fees Amendment Flag The Executive shall also be granted the Company monthly for year one The Executive shall also be granted the Company monthly for year one Note M The fair value of the loan n inclunding accured interest was The fair value of the loan n inclunding accured interest was Accured interest on loan h Accured interest on loan h During the period ended the company issued common stock During the period ended the company issued common stock Second note was issued and received in cash Second note was issued and received in cash Salary incurred to the former Executive Vice President of Business Operations Expenditures for salaries of officers. Does not include allocated share-based compensation, pension and post-retirement benefit expense or other labor-related non-salary expense. For commercial and industrial companies, excludes any direct and overhead labor that is included in cost of goods sold. ORGANIZATION AND BASIS OF PRESENTATION Net loss Travel and entertainment Additional paid in capital Accrued liabilities Entity Registrant Name Document and Entity Information Rent payments March 1, 2016 to August 31, 2016 Rent payments March 1, 2016 to August 31, 2016 Common stock on the date of grant for participants that hold less than the Company's outstanding common stock The exercise price for the stock options must be no less than the fair market value of the common stock Note N Number of days after issuance from 31 days to 60 days penality, NumberOfDaysAfterIssuanceFrom31DaysTo60DaysPenality1 Company issued common stock on conversion of convertible debt of loan l fair value Company issued common stock on conversion of convertible debt of loan l fair value Fair value of the shares would be converted of loan h Fair value of the shares would be converted of loan h Note carries an original interest discount Note carries an original interest discount Unpaid wages were owed to the related parties Unpaid wages were owed to the related parties Salary incurred to the President and Chief Executive Officer Salary incurred to the President and Chief Executive Officer SCHEDULE OF CONVERTIBLE DEBT: COMMON STOCK Issuance of common stock Comprehensive loss Total Other Expenses Total Other Expenses Consulting fees A fee charged for consulting services. Common Stock, Par Value Convertible debt Document Type Issued common shares Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Executive shall be granted restricted common shares of the Company upon execution of the employment contract Executive shall be granted restricted common shares of the Company upon execution of the employment contract Company entered into an employment agreement with the Executive Vice President of Fuel Cell Operations of the company and pay annual salary Company entered into an employment agreement with the Executive Vice President of Fuel Cell Operations of the company and pay annual salary Number of days greater than 180 days NumberOfDaysGreaterThan180Days1 Salary incurred to the Chief Operating Officer Expenditures for salaries of officers. Does not include allocated share-based compensation, pension and post-retirement benefit expense or other labor-related non-salary expense. For commercial and industrial companies, excludes any direct and overhead labor that is included in cost of goods sold. SCHEDULE OF COMMITMENTS SUBSEQUENT EVENTS {1} SUBSEQUENT EVENTS NOTES PAYABLE Cash flows used in operating activities Loss per share, basic and diluted EXPENSES Accumulated deficit TOTAL CURRENT ASSETS TOTAL CURRENT ASSETS Entity Common Stock, Shares Outstanding Rent payments September 1, 2019 to October 31, 2019 Rent payments September 1, 2019 to October 31, 2019 On the date of grant for participants that hold more of the Company's outstanding common stock fair market value of the common stock Principal of this conversion of debt of loan g Principal of this conversion of debt of loan g Remainder is delivered in four instalments in amount Remainder is delivered in four instalments in amount Lease inducement {1} Lease inducement Lease inducement TOTAL ASSETS TOTAL ASSETS Prepaid - non current Document Fiscal Year Focus The Executive shall vest shares of the Company monthly for year five The Executive shall vest shares of the Company monthly for year five COMMITMENTS TRANSACTIONS: Issued shares to extnguish convertible debt IssuedSharesToExtnguishConvertibleDebt4 Number of days after issuance less than 30 days penality, NumberOfDaysAfterIssuanceLessThan30DaysPenality1 Remaining principal of this note has a fair value of loan h Remaining principal of this note has a fair value of loan h Company issued common stock on conversion of convertible debt of loan f Company issued common stock on conversion of convertible debt of loan f Fair value of common stock shares on conversion of this convertible debt-e Fair value of common stock shares on conversion of this convertible debt-e The compay issued common stock shares The compay issued common stock shares The fair value of the loan inclunding accured interest was The fair value of the loan inclunding accured interest was Company entered into an agreement for two convertible notes Company entered into an agreement for two convertible notes CONVERTIBLE DEBT OF A,B DETAILS . Related Party Transactions Details The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Net (decrease) increase in cash Net (decrease) increase in cash Salaries and management fees paid by shares Salaries and management fees paid by shares Other items Advertising and marketing TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT TOTAL STOCKHOLDERS' DEFICIT TOTAL STOCKHOLDERS' DEFICIT Stockholders' deficit Current Liabilities Common shares for gross proceeds Common shares for gross proceeds. SUBSEQUENT EVENT TRANSACTIONS DETAILS Issued shares for salaries and management fees Issued shares for salaries and management fees Number of days after issuance from 91 days to 120 days penality, NumberOfDaysAfterIssuanceFrom61DaysTo90DaysPenality1 Accured interest on loan k Accured interest on loan k Accured interest on loan j Accured interest on loan j Company issued convertible note in exchange for consulting services Company issued convertible note in exchange for consulting services Salary incurred to the Executive Vice President of Fuel Cell Operations Expenditures for salaries of officers. Does not include allocated share-based compensation, pension and post-retirement benefit expense or other labor-related non-salary expense. For commercial and industrial companies, excludes any direct and overhead labor that is included in cost of goods sold. Company has not achieved profitable operations and has accumulated a deficit amounted Company has not achieved profitable operations and has accumulated a deficit amounted RELATED PARTY TRANSACTIONS Weighted average shares outstanding, basic and diluted Loss on fair value of convertible debt Fair value portion of borrowing which can be exchanged for a specified number of another security at the option of the issuer or the holder, for example, but not limited to, the entity's common stock. The Executive shall vest shares of the Company monthly for year two The Executive shall vest shares of the Company monthly for year two Extnguish convertible debt accrued interest ExtnguishConvertibleDebtAccruedInterest5 Equity transactions Details Issued convertible note Number of days after issuance from 151 days to 180 days penality. NumberOfDaysAfterIssuanceFrom121DaysTo150DaysPenality2 Number of days after issuance from 91 days to 120 days penality. NumberOfDaysAfterIssuanceFrom61DaysTo90DaysPenality2 Accured interest on loan m Accured interest on loan m Fair value of the shares would be converted of loan i Fair value of the shares would be converted of loan i Convertible note value Carrying value as of the balance sheet date of the portion of long-term debt due within one year or the operating cycle if longer identified as Convertible Notes Payable Note carried an interest rate Note carried an interest rate Fair value based on the common shares Fair value based on the common shares Accounts payable and accrued liabilities Audit and accounting fees Common Stock, Shares Outstanding TOTAL CURRENT LIABILITIES TOTAL CURRENT LIABILITIES Entity Voluntary Filers Document Period End Date Principal convertible debt Principal convertible debt Issued common shares on conversion Issued common shares on conversion Company will pay an annual salary and the Executive shall be granted Company will pay an annual salary and the Executive shall be granted fair market value of the common stock fair market value of the common stock Stock option plan allows directors grant options Stock option plan allows directors grant options Number of days after issuance from 31 days to 60 days penality. NumberOfDaysAfterIssuanceLessThan30DaysPenality2 Note G The fair value of the loan m inclunding accured interest was The fair value of the loan m inclunding accured interest was The fair value of the loan-e inclunding accured interest was The fair value of the loan-e inclunding accured interest was First note was issued for proceeds First note was issued for proceeds NOTES PAYABLE DETAILS Schedule of prepay any outstanding balance Tabular disclosure for prepay the loan up to 180 days after its issuance with penalties. Cash, beginning Cash, beginning Cash, ending Entity Filer Category EX-101.PRE 9 dnrg-20160531_pre.xml XML 10 R1.htm IDEA: XBRL DOCUMENT v3.5.0.2
Document and Entity Information
9 Months Ended
May 31, 2016
shares
Document and Entity Information  
Entity Registrant Name Dominovas Energy Corp
Entity Trading Symbol dnrg
Document Type 10-Q
Document Period End Date May 31, 2016
Amendment Flag true
Entity Central Index Key 0001343254
Current Fiscal Year End Date --08-31
Entity Common Stock, Shares Outstanding 237,304,383
Entity Filer Category Smaller Reporting Company
Entity Current Reporting Status Yes
Entity Voluntary Filers No
Entity Well-known Seasoned Issuer No
Document Fiscal Year Focus 2016
Document Fiscal Period Focus Q3
Amendment Description yes
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.5.0.2
Consolidated Balance Sheets (Unaudited) - USD ($)
Mar. 31, 2016
Aug. 31, 2015
Current Assets    
Cash $ 5,723 $ 64,157
TOTAL CURRENT ASSETS 5,723 64,157
Prepaid - non current 15,410 15,410
TOTAL ASSETS 21,133 79,567
Current Liabilities    
Accounts payable 540,083 443,310
Accrued liabilities 715,124 577,576
Convertible debt 1,249,086 627,349
Notes payable 75,000 75,000
TOTAL CURRENT LIABILITIES 2,579,293 1,723,235
Lease inducement 65,835 72,821
Total liabilities 2,645,128 1,796,056
Stockholders' deficit    
Common stock $0.001 par value, 700,000,000 common shares authorized, 237,304,383 issued and outstanding at May 31, 2016 and 169,106,668 at August 31, 2015 237,301 169,104
Additional paid in capital 13,477,389 11,931,347
Accumulated deficit (16,338,685) (13,816,940)
TOTAL STOCKHOLDERS' DEFICIT (2,623,995) (1,716,489)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 21,133 $ 79,567
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED BALANCE SHEETS PARENTHETICALS - $ / shares
Mar. 31, 2016
Aug. 31, 2015
Parentheticals    
Common Stock, Par Value $ 0.001 $ 0.001
Common Stock, Shares Authorized 700,000,000 700,000,000
Common Stock, Shares Issued 237,304,383 169,106,668
Common Stock, Shares Outstanding 237,304,383 169,106,668
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONDOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
May 31, 2016
May 31, 2015
May 31, 2016
May 31, 2015
EXPENSES        
Advertising and marketing $ 13,746 $ 110 $ 42,097 $ 110
Audit and accounting fees 3,569 12,862 40,602 49,152
Consulting fees 0 32,500 0 197,500
Financing fees 20,425 31,200 92,685 196,200
Foreign exchange loss 0 113 0 0
Interest expense 36,610 1,727 55,338 1,727
Investor communications and transfer agent 3,528 15,656 34,091 26,139
Legal fees 11,185 4,500 27,225 20,355
Office and general administration 70,721 50,362 211,987 151,790
Salaries and management fees 279,866 110,189 511,491 350,937
Subcontractor fees 0 0 65,350 0
Travel and entertainment 66,454 14,812 219,241 18,950
Total operating expenses (506,104) (274,031) (1,300,107) (1,012,860)
Other items        
Loss on debt conversion (337,988) (340,000) (885,688) (340,000)
Loss on fair value of convertible debt (69,882) 0 (335,950) 0
Total Other Expenses (407,870) (340,000) (1,221,638) (340,000)
Comprehensive loss $ (913,974) $ (614,031) $ (2,521,745) $ (1,352,860)
Loss per share, basic and diluted $ 0.00 $ (0.01) $ (0.01) $ (0.01)
Weighted average shares outstanding, basic and diluted 222,881,107 92,748,439 191,493,990 92,748,439
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
9 Months Ended
May 31, 2016
May 31, 2015
Cash flows used in operating activities    
Net loss $ (2,521,745) $ (1,352,860)
Non-cash items    
Financing costs 92,685 190,000
Consulting costs 0 196,200
Interest Expense. 55,338 1,727
Lease inducement (6,985) 22,573
Loss on debt conversion 885,688 340,000
Change in fair value of debt 335,950 0
Salaries and management fees paid by shares 89,500 0
Changes in operating assets and liabilities    
Prepaid 0 16,531
Accounts payable and accrued liabilities 234,319 456,519
Net cash used in operating activities (835,250) (129,310)
Cash flows from financing activities    
Proceeds from issuance of convertible loans 776,816 84,500
Issuance of common stock 0 48,697
Net cash provided by financing activities 776,816 133,197
Net (decrease) increase in cash (58,434) 3,887
Cash, beginning 64,157 5,096
Cash, ending $ 5,723 $ 8,983
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.5.0.2
ORGANIZATION AND BASIS OF PRESENTATION
9 Months Ended
May 31, 2016
ORGANIZATION AND BASIS OF PRESENTATION  
ORGANIZATION AND BASIS OF PRESENTATION

1. ORGANIZATION AND BASIS OF PRESENTATION

 

Dominovas Energy Corporation (the "Company") was incorporated on February 2, 2005 under the laws of the State of Nevada and is in the business of developing fuel cell and alternative energy projects.

 

The following interim unaudited financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles for interim financial information and with the rules and regulations of the Securities and Exchange Commission ("SEC").

 

Accordingly, these financial statements do not include all of the disclosures required by United States Generally Accepted Accounting Principles (“US GAAP”) for complete financial statements. These interim unaudited financial statements should be read in conjunction with the Company's audited financial statements for the year ended August 31, 2015. In the opinion of management, the interim unaudited financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results of the interim period presented. Operating results for the nine-month period ended May 31, 2016 are not necessarily indicative of the results that may be expected for the year ending August 31, 2016.

 

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of May 31, 2016, the Company has not achieved profitable operations and has accumulated a deficit of $16,338,685. Continuation as a going concern is dependent upon the ability of the Company to obtain the necessary financing to meet obligations and pay its liabilities arising from normal business operations when they come due and ultimately upon its ability to achieve profitable operations. The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will be able to continue as a going concern. These consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. These adjustments could be material. Management intends to obtain additional funding by borrowing funds from its directors and officers, issuing promissory notes and convertible debt and/or a private placement of common stock.

XML 16 R7.htm IDEA: XBRL DOCUMENT v3.5.0.2
RECENT ACCOUNTING PRONOUNCEMENTS
9 Months Ended
May 31, 2016
RECENT ACCOUNTING PRONOUNCEMENTS  
RECENT ACCOUNTING PRONOUNCEMENTS

2. RECENT ACCOUNTING PRONOUNCEMENTS

 

Recent pronouncements with future effective dates are either not applicable or are not expected to be significant to the financial statement of the Company.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.5.0.2
RELATED PARTY TRANSACTIONS
9 Months Ended
May 31, 2016
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

3. RELATED PARTY TRANSACTIONS

 

During the nine months ended May 31, 2016, the Company incurred wages of $Nil (May 31, 2015 - $84,000), $84,000 (May 31, 2015 - $56,188), $97,500 (May 31, 2015 - $78,000) and $165,938 (May 31, 2015 - $132,750) to the Executive Vice President of Business Operations, the Executive Vice President of Fuel Cell Operations, the Chief Operating Officer and the President and Chief Executive Officer of the Company, respectively. As of May 31, 2016, unpaid wages of $704,002 (August 31, 2015 - $577,576) were owed to the related parties and are included in accrued liabilities.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.5.0.2
NOTES PAYABLE
9 Months Ended
May 31, 2016
NOTES PAYABLE  
NOTES PAYABLE

4. NOTES PAYABLE

 

As of May 31, 2016, the Company has notes payable of $75,000 (August 31, 2015 - $75,000).  The notes are non-interest bearing, unsecured and due on demand.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONVERTIBLE DEBT
9 Months Ended
May 31, 2016
CONVERTIBLE DEBT  
CONVERTIBLE DEBT

5. CONVERTIBLE DEBT

 

Details of the Company’s convertible notes, which are measured at their fair value are as follows:

 

a)  

On October 27, 2014, the Company issued a convertible note in the amount of $165,000 in exchange for consulting services rendered. The note is non-interest bearing, was due on October 27, 2015, and is unsecured.

 

The loan may be converted into the Company's common stock, at a conversion price for each share equal to the lowest closing bid price for the common stock for the thirty trading days ending on the trading day immediately before the conversion date multiplied by 50% at any time after April 28, 2015.

 

During the year ended August 31, 2015, $106,650 was converted into 43,314,479 common shares of the Company.

 

As at May 31, 2016, the principal remaining of this note was $58,250 with a fair value of $129,444 based on the value of the common shares that would be issued if converted on May 31, 2016.

 

b)  

On March 19, 2015, the Company entered into an agreement for two convertible notes in the amount of $26,500 each. The first note was issued in March 2015, for proceeds of $25,000 (net of $1,500 of financing fees), carried an interest at 8%, and was due on March 19, 2016. The second note was paid for by the issuance of an offsetting $26,500 secured note issued to the Company. The second $26,500 note was issued and received in cash on November 13, 2015.

 

The lender could convert the entire note amount into shares of the Company's common stock, at a conversion price for each share equal to the lowest closing bid price for the common stock for the twenty trading days ending on the trading day immediately before the conversion date multiplied by 50% at any time. The first note was convertible into shares after the second note has been received by the Company.

 

The Company issued 2,453,467 common stock with a fair value of $147,769 on conversion of the notes issued in March 2015 and November 2015.

 

c)  

On April 30, 2015, the Company issued a convertible unsecured note in the amount of $62,000 (including $7,000 of financing fees). The note carries an interest rate of 12% (22% default rate), and was due on January 30, 2016.

 

During the year ended August 31, 2015, $2,507 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $92,407.

 

During the period ended May 31, 2016, the Company issued 3,373,329 common stock with a fair value of $222,578 on conversion of this convertible debt.

 

d)  

On June 10, 2015, the Company issued a convertible unsecured note in the amount of $58,000 (including $8,000 of financing fees). The note carries an interest rate of 12% (22% default rate), and was due on March 10, 2016.

 

During the year ended August 31, 2015, $1,565 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $79,865.

 

During the period ended May 31, 2016, the Company issued 2,981,396 common stock with a fair value of $137,144 on conversion of this convertible debt.

 

e)  

On July 6, 2015, the Company issued a convertible unsecured note in the amount of $85,500 (including $10,500 of financing fees). The note carries an interest rate of 12% (22% default rate), and was due on April 6, 2016.

 

During the year ended August 31, 2015, $1,574 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $112,724.

 

During the period ended May 31, 2016, the Company issued 9,694,291 common stock with a fair value of $238,360 on conversion of this convertible debt.

 

f)  

On August 10, 2015, the Company issued a convertible unsecured note in the amount of $85,500 (including $10,500 of financing fees). The note carries an interest rate of 12% (22% default rate), and is due on May 10, 2016.

 

During the year ended August 31, 2015, $590 of interest was accrued on this note. The fair value of the note as at August 31, 2015 was $107,465.

 

During the period ended May 31, 2016, the Company issued 11,210,437 common stock with a fair value of $228,369 on conversion of this convertible debt.

 

The loans c) – f) above were convertible into shares of the Company's common stock, at a conversion price for each share equal to the average of the three lowest closing bid prices for the common stock for the ten trading days ending on the trading day immediately before the conversion date multiplied by 50% at any time after each respective maturity date.

 

g)  

On September 11, 2015, the Company issued a convertible unsecured note in the amount of $95,000 (including $11,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on June 11, 2016.

 

The Company may prepay the note up to 180 days after its issuance with the following penalties:

 

Number of days after issuance

 

Penalty

 

 

 

< 30 days

 

125% of principal plus accrued interest

31 – 60 days

 

130% of principal plus accrued interest

61 – 90 days

 

135% of principal plus accrued interest

91 – 120 days

 

140% of principal plus accrued interest

121 – 150 days

 

145% of principal plus accrued interest

151 – 180 days

 

150% of principal plus accrued interest

 

The lender may convert the note at a conversion price equal to the average of the three lowest closing bid prices for the common stock for twenty trading days ending on the trading day immediately before conversion multiplied by 50% at any time after the maturity day.

 

During the period ended May 31, 2016, the Company issued 9,850,000 common stock with a fair value of $134,050 on conversion of $63,514 of principal of this convertible debt.

 

During the period ended May 31, 2016, $2,722 of interest was accrued on this note. As at May 31, 2016, the remaining principal of this note of $31,486 has a fair value of $69,116 determined based on the fair value of the shares would be converted at May 31, 2016.

 

h)  

On December 9, 2015, the Company issued a convertible unsecured note in the amount of $100,000 (including $10,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on September 9, 2016.

 

During the period ended May 31, 2016, $5,721 of interest was accrued on this note. As at May 31, 2016, the remaining principal of this note of $100,000 has a fair value of $207,087 determined based on the fair value of the shares would be converted at May 31, 2016.

 

i)  

On February 19, 2016, the Company issued a convertible unsecured note in the amount of $108,000 (including $8,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on November 19, 2016.

 

During the period ended May 31, 2016, $3,622 of interest was accrued on this note. As at May 31, 2016, this note had a fair value of $223,654 determined based on the fair value of the shares would be converted at May 31, 2016.

 

j)  

On April 1, 2016, the Company issued a convertible unsecured note in the amount of $108,000 (including $8,000 of finance fees). The note carries an interest rate of 12% (22% default rate), and is due on January 1, 2017.

 

During the period ended May 31, 2016, $2,130 of interest was accrued on this note. As at May 31, 2016, this note had a fair value of $223,654 determined based on the fair value of the shares would be converted at May 31, 2016.

 

The Company may prepay the loans h) – j) above up to 180 days after its issuance with the following penalties:

 

Number of days after issuance

 

Penalty

 

 

 

< 30 days

 

125% of principal plus accrued interest

31 – 60 days

 

130% of principal plus accrued interest

61 – 90 days

 

135% of principal plus accrued interest

91 – 120 days

 

140% of principal plus accrued interest

121 – 150 days

 

145% of principal plus accrued interest

151 – 180 days

 

150% of principal plus accrued interest

 

The lender may convert the note h) –j) after 90 days following issuance at a conversion price equal to the average of the three lowest closing bid prices for the common stock for twenty trading days ending on the trading day immediately before conversion multiplied by 53% at any time after the maturity day.

 

k)  

On June 26, 2015, the Company issued a convertible unsecured note in the amount of $50,000. The note carried an interest rate of 10% (18% default rate), and was due on March 26, 2016.

 

The lender could convert the entire note amount into shares of the Company's common stock, at a conversion price for each share equal to the three (3) lowest closing bid prices for the common stock for the ten trading days ending on the trading day immediately before the conversion date multiplied by 65%.

 

During the year ended August 31, 2015, $904 of interest was accrued on this note. The fair value of the note as at August 31, 2015, was determined based on the amount the Company would settle the note by prepayment, was $65,904

 

During the period ended May 31, 2016, the Company issued 3,405,845 common stock with a fair value of $97,878 on conversion of this convertible debt.

 

l)  

On September 29, 2015, the Company issued a convertible unsecured note in the amount of $150,000 (including $14,760 of finance fees). The note carries an interest rate of 10% (18% default rate), and is due on March 29, 2016.

 

The entire note was convertible into shares of the Company's common stock, at a conversion price for each share equal to the three lowest closing bid prices for the common stock for the twenty trading days ending on the trading day immediately before the conversion date multiplied by 60% at any time after the Maturity Date.

 

During the period ended May 31, 2016, the Company issued 20,228,950 common stock with a fair value of $318,879 on conversion of this convertible debt.

 

m)  

On January 14, 2016, the Company issued a convertible unsecured note in the amount of $57,000 (including $7,000 of finance fees). The note carries an interest of 10% (18% default rate), and is due on October 14, 2016 (“Maturity Date”).

 

The Company may repay the note up to 180 days after its issuance, with approval from the lender, with the following penalties:

 

Number of days after issuance

 

Penalty

 

 

 

< 90 days

 

135% of principal plus accrued interest

91 – 120 days

 

140% of principal plus accrued interest

121 – 180 days

 

145% of principal plus accrued interest

> 180 days

 

150% of principal plus accrued interest

 

The entire note may be converted into shares of the Company’s common stock, at a conversion price for each share equal to the three lowest closing bid prices for the common stock for the twenty trading days ending on the trading day immediately before the conversion date multiplied by 53% at any time after the Maturity Date.

 

During the period ended May 31, 2016, $2,155 of interest was accrued on this note.  As at May 31, 2016, this note has a fair value of $82,650 determined based on the amount the Company would settle this note by prepayment.

 

n)  

On January 25, 2016, the Company issued a convertible unsecured note in the amount of $555,000.  The note carries an original interest discount (“OID”) of $50,000 and the Company agrees to pay $5,000 of the finance fees. The Company receives the payments in five tranches, of which the initial tranche equals to the amount of $115,000 (including OID of $10,000 and finance fees of $5,000) and the remainder is delivered in four instalments in the amount of $110,000 (including OID of $10,000) each. The note carries an interest rate of 10% (22% default rate), and is due on May 25, 2017.

 

As of May 31, 2016, the Company received the initial tranche of $115,000 (including OID and finance fees) and the second tranche of $110,000 (including OID and finance fees).

 

The lender may convert the note at a conversion price equal to the average of the three lowest closing bid prices for the common stock for twenty trading days ending on the trading day immediately before conversion multiplied by 60% at any time after 180 days after the cash was delivered.

 

The Company may prepay any outstanding balance of note, upon delivering an optional prepayment notice; provided that, the date of prepayment is not less the five trading days for the optional prepayment notice.

 

Number of days after issuance

 

Penalty

 

 

 

Any time after determined date of prepayment

 

125% of principal plus accrued interest

 

During the period ended May 31, 2016, $7,829 of interest was accrued on this note. As at May 31, 2016, this note has a fair value of $281,250 determined based on the amount the Company would settle this note by prepayment.

 

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.5.0.2
COMMON STOCK
9 Months Ended
May 31, 2016
COMMON STOCK  
COMMON STOCK

6. COMMON STOCK

 

Authorized: 700,000,000 common shares.

 

Issued and outstanding: 237,304,383 common shares.

 

On August 14, 2015, the Company increased its authorized common shares to 700,000,000 shares from 200,000,000 share.

 

The Company has a stock option plan (the “2010 Plan”) allowing the Company's directors to grant up to 5,000,000 stock options. The 2010 Plan allows the Company to grant options to its officers, directors and employees. In addition, the Company may grant options to individuals who act as consultants to the Company. Pursuant to the terms and conditions of the 2010 Plan, the exercise price for the stock options must be no less than: 100% of the fair market value of the common stock on the date of grant for participants that hold less than 10% of the Company's outstanding common stock; and 110% of the fair market value of the common stock on the date of grant for participants that hold 10% or more of the Company's outstanding common stock.  Options will vest at the discretion of the plan administrator.

 

As of May 31, 2016, no options have been granted.

 

During the period ended May 31, 2016, the company had the following share transactions:

 

a)  

Issued 63,197,705 shares with a fair value of $1,525,028 to extinguish convertible debt of 607,514 plus accrued interest of $31,826.

 

b)  

Issued 5,000,000 shares with a fair value of $89,500 for salaries and management fees.

 

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.5.0.2
COMMITMENTS
9 Months Ended
May 31, 2016
COMMITMENTS  
COMMITMENTS

7. COMMITMENTS

 

The Company entered into a lease agreement for a term of five years ending October 31, 2019. Under the agreement, the Company is committed to the following rent payments:

 

Dates

 

Amount

 

 

 

 

 

March 1, 2016 to August 31, 2016

 

$

41,327

 

September 1, 2016 to August 31, 2017

 

 

169,441

 

September 1, 2017 to August 31, 2018

 

 

174,524

 

September 1, 2018 to August 31, 2019

 

 

179,760

 

September 1, 2019 to October 31, 2019

 

 

30,160

 

Total

 

$

595,212

 

 

Under the agreement, the Company also had to incur $125,000 in leasehold improvements by September 30, 2014. As of the date of these financial statements, the Company has not yet incurred the required expenditures and the lease is in default.

 

On March 1, 2014, the Company entered into an employment agreement with the President and Chief Executive Officer of the Company. Under the agreement, the Company will pay an annual salary of $177,000 for 18 months with a 25% increase after 18 months. The agreement will be in effect for 3 years.

 

On March 1, 2014, the Company entered into an employment agreement with the Chief Operating Officer of the Company. Under the agreement, the Company will pay an annual salary of $104,000 for 18 months with a 25% increase after 18 months. The agreement will be in effect for 3 years.

 

On March 1, 2014, the Company entered into an employment agreement with the Executive Vice President of Fuel Cell Operations of the Company. Under the agreement, the Company will pay an annual salary of $112,000. The agreement will be in effect for 5 years. The Executive shall vest 25,000 shares of the Company stock annually and is only fully vested and fully deliverable after 5 years of continuous and satisfactory employment.

On December 23, 2015, the Company entered into an employment agreement with the President of a division of the Company to be formed. Under the agreement, the Company will pay an annual salary of $115,000 and the Executive shall be granted 200,000 restricted common shares of the Company upon execution of the employment contract. The Executive shall also be granted the following Company stock:

 

-  

50,000 shares of the Company monthly for year one.

 

-  

75,000 shares of the Company monthly for year two.

 

-  

150,000 shares of the Company monthly for year three.

 

-  

120,000 shares of the Company monthly for year four.

 

-  

300,000 shares of the Company monthly for year five.

 

All stock as granted is only fully vested and fully deliverable to Executive after 5 years of continuous and satisfactory employment.

 

On January 15, 2016, the Company entered into an employment agreement with the Managing director of a division of the Company to be formed. Under the agreement, the Company will pay an annual salary of $55,000 and the Executive shall be granted 5,000 restricted common shares of the Company upon execution of the employment contract. The Executive shall also be granted the following Company stock:

 

-  

1,000 shares of the Company monthly for year one.

 

-  

2,500 shares of the Company monthly for year two.

 

-  

5,000 shares of the Company monthly for year three.

 

All stock as granted is only fully vested and fully deliverable to Executive after 3 years of continuous and satisfactory employment.

 

On January 21, 2016, the Company entered into an employment agreement with the Managing Director of the Africa division of the Company. Under the agreement, the Company will pay an annual salary of $80,000 and the Executive shall also be granted the following Company stock:

 

-  

8,333 shares of the Company monthly for year one.

 

-  

12,500 shares of the Company monthly for year two.

 

-  

16,666 shares of the Company monthly for year three.

 

All stock as granted is only fully vested and fully deliverable to Executive after 3 years of continuous and satisfactory employment.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.5.0.2
SUBSEQUENT EVENTS
9 Months Ended
May 31, 2016
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

8. SUBSEQUENT EVENTS

 

Subsequent to period ended May 31, 2016, the Company issued 18,447,790 common shares on conversion of $66,363 of principal convertible debt.

 

Subsequent to period ended May 31, 2016, the Company issued 4,945,599 common shares for gross proceeds of $20,000.
XML 23 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
SCHEDULE OF CONVERTIBLE DEBT (Tables)
9 Months Ended
May 31, 2016
SCHEDULE OF CONVERTIBLE DEBT:  
Schedule of prepay the loans up to 180 days after its issuance with the penalties

The Company may prepay the note up to 180 days after its issuance with the following penalties:

 

Number of days after issuance

 

Penalty

 

 

 

< 30 days

 

125% of principal plus accrued interest

31 – 60 days

 

130% of principal plus accrued interest

61 – 90 days

 

135% of principal plus accrued interest

91 – 120 days

 

140% of principal plus accrued interest

121 – 150 days

 

145% of principal plus accrued interest

151 – 180 days

 

150% of principal plus accrued interest

 

Schedule of the Company may prepay the loan up to 180 days after its issuance with the following penalties

The Company may prepay the loans h) – j) above up to 180 days after its issuance with the following penalties:

 

Number of days after issuance

 

Penalty

 

 

 

< 30 days

 

125% of principal plus accrued interest

31 – 60 days

 

130% of principal plus accrued interest

61 – 90 days

 

135% of principal plus accrued interest

91 – 120 days

 

140% of principal plus accrued interest

121 – 150 days

 

145% of principal plus accrued interest

151 – 180 days

 

150% of principal plus accrued interest

Schedule of the Company may repay the loan up to 180 days after its issuance, with approval from the lender, with the following penalties

The Company may repay the note up to 180 days after its issuance, with approval from the lender, with the following penalties:

 

Number of days after issuance

 

Penalty

 

 

 

< 90 days

 

135% of principal plus accrued interest

91 – 120 days

 

140% of principal plus accrued interest

121 – 180 days

 

145% of principal plus accrued interest

> 180 days

 

150% of principal plus accrued interest

Schedule of prepay any outstanding balance

The Company may prepay any outstanding balance of note, upon delivering an optional prepayment notice; provided that, the date of prepayment is not less the five trading days for the optional prepayment notice.

 

Number of days after issuance

 

Penalty

 

 

 

Any time after determined date of prepayment

 

125% of principal plus accrued interest

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.5.0.2
SCHEDULE OF COMMITMENTS (Tables)
9 Months Ended
May 31, 2016
SCHEDULE OF COMMITMENTS  
Schedule of Rental Payments for Operating Leases

The Company entered into a lease agreement for a term of five years ending October 31, 2019. Under the agreement, the Company is committed to the following rent payments:

 

Dates

 

Amount

 

 

 

 

 

March 1, 2016 to August 31, 2016

 

$

41,327

 

September 1, 2016 to August 31, 2017

 

 

169,441

 

September 1, 2017 to August 31, 2018

 

 

174,524

 

September 1, 2018 to August 31, 2019

 

 

179,760

 

September 1, 2019 to October 31, 2019

 

 

30,160

 

Total

 

$

595,212

 

XML 25 R16.htm IDEA: XBRL DOCUMENT v3.5.0.2
ORGANIZATION AND BASIS OF PRESENTATION (Details)
May 31, 2016
USD ($)
Organization details  
Company has not achieved profitable operations and has accumulated a deficit amounted $ 16,338,685
XML 26 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
RELATED PARTY TRANSACTIONS - During the period (Details) - USD ($)
9 Months Ended
May 31, 2016
May 31, 2015
Related Party Transactions - During the period    
Salary incurred to the former Executive Vice President of Business Operations $ 0 $ 84,000
Salary incurred to the Executive Vice President of Fuel Cell Operations 84,000 56,188
Salary incurred to the Chief Operating Officer 97,500 78,000
Salary incurred to the President and Chief Executive Officer $ 165,938 $ 132,750
XML 27 R18.htm IDEA: XBRL DOCUMENT v3.5.0.2
RELATED PARTY TRANSACTIONS (Details) - USD ($)
May 31, 2016
Aug. 31, 2015
Related Party Transactions Details    
Unpaid wages were owed to the related parties $ 704,002 $ 577,576
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.5.0.2
NOTES PAYABLE (Details) - USD ($)
May 31, 2016
Aug. 31, 2015
NOTES PAYABLE DETAILS    
Company has notes payable $ 75,000 $ 75,000
XML 29 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONVERTIBLE DEBT OF A,B (Details) - USD ($)
May 31, 2016
Nov. 30, 2015
Nov. 13, 2015
Mar. 31, 2015
Mar. 19, 2015
Oct. 27, 2014
CONVERTIBLE DEBT OF A,B DETAILS            
Company issued convertible note in exchange for consulting services           $ 165,000
Principal remaining of note $ 58,250          
Fair value based on the common shares $ 129,444          
Company entered into an agreement for two convertible notes         $ 26,500  
First note was issued for proceeds         25,000  
First note was issued for proceeds net of financing fees         $ 1,500  
Note carried an interest rate         8.00%  
Second note was issued and received in cash     $ 26,500      
Company issued common stock on conversion of the notes   2,453,467   2,453,467    
Company issued common stock with fair value on conversion of notes   $ 147,769   $ 147,769    
XML 30 R21.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONVERTIBLE DEBT OF C,D,E,F,G,H,I,J,K,L,M,N (Details) - USD ($)
Apr. 01, 2016
Feb. 19, 2016
Jan. 25, 2016
Jan. 14, 2016
Dec. 09, 2015
Sep. 29, 2015
Sep. 11, 2015
Aug. 10, 2015
Jul. 06, 2015
Jun. 26, 2015
Jun. 10, 2015
Apr. 30, 2015
CONVERTIBLE DEBT OF C,D,E,F,G,H,I,J,K,L,M,N DETAILS                        
Company issued convertible unsecured note in amount $ 108,000 $ 108,000 $ 555,000 $ 57,000 $ 100,000 $ 150,000 $ 95,000 $ 85,500 $ 85,500 $ 50,000 $ 58,000 $ 62,000
Company issued convertible unsecured note including financing fees $ 8,000 $ 8,000 $ 5,000 $ 7,000 $ 10,000 $ 14,760 $ 11,000 $ 10,500 $ 10,500   $ 8,000 $ 7,000
Note carries an interest rate with default rate 22% and 18% 12.00% 12.00% 10.00% 10.00% 12.00% 10.00% 12.00% 12.00% 12.00% 10.00% 12.00% 12.00%
Note carries an original interest discount     $ 50,000                  
Initial tranche in amount     115,000                  
Initial tranche in amount including OID     10,000                  
Initial tranche in amount including financing fees     5,000                  
Remainder is delivered in four instalments in amount     $ 110,000                  
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONVERTIBLE DEBT TRANSACTIONS DURING THE PERIOD (Details) - USD ($)
9 Months Ended 12 Months Ended
May 31, 2016
Aug. 31, 2015
CONVERTIBLE DEBT TRANSACTIONS DURING THE PERIOD    
Convertible note value   $ 106,650
Note converted into shares of common stock   43,314,479
Interest was accrued on this loan was   $ 2,507
The fair value of the loan inclunding accured interest was   92,407
The compay issued common stock shares 3,373,329  
Fair value of common stock shares on conversion of this convertible debt. $ 222,578  
Accured interest on loan d   1,565
The fair value of the loan-d inclunding accured interest was   79,865
The compay issued common stock. 2,981,396  
Fair value of common stock shares on conversion of this convertible debt-d $ 137,144  
Accured interest on loan e   1,574
The fair value of the loan-e inclunding accured interest was   112,724
During the period ended the company issued common stock 9,694,291  
Fair value of common stock shares on conversion of this convertible debt-e $ 238,360  
Accured interest on loan f   590
The fair value of the loan f inclunding accured interest was   107,465
Company issued common stock on conversion of convertible debt of loan f 11,210,437  
Company issued common stock on conversion of convertible debt of loan f fair value $ 228,369  
Company issued common stock on conversion of convertible debt of loan g 9,850,000  
Company issued common stock on conversion of convertible debt of loan g fair value $ 134,050  
Principal of this conversion of debt of loan g 63,514  
Accured interest on loan g 2,722  
Remaining principal of this note has a fair value 31,486  
Fair value of the shares would be converted 69,116  
Accured interest on loan h 5,721  
Remaining principal of this note has a fair value of loan h 100,000  
Fair value of the shares would be converted of loan h 207,087  
Accured interest on loan i 3,622  
Fair value of the shares would be converted of loan i 223,654  
Accured interest on loan j 2,130  
Fair value of the shares would be converted of loan j $ 223,654  
Accured interest on loan k   904
The fair value of the loan k inclunding accured interest was   $ 65,904
Company issued common stock on conversion of convertible debt of loan k 3,405,845  
Company issued common stock on conversion of convertible debt of loan k fair value $ 97,878  
Company issued common stock on conversion of convertible debt of loan l 20,228,950  
Company issued common stock on conversion of convertible debt of loan l fair value $ 318,879  
Accured interest on loan m 2,155  
The fair value of the loan m inclunding accured interest was 82,650  
Accured interest on loan n 7,829  
The fair value of the loan n inclunding accured interest was $ 281,250  
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.5.0.2
THE COMPANY MAY PREPAY THE LOANS -CFGHIKLM (Details)
May 31, 2016
Note G  
Number of days after issuance less than 30 days penality, 125.00%
Number of days after issuance from 31 days to 60 days penality, 130.00%
Number of days after issuance from 61 days to 90 days penality, 135.00%
Number of days after issuance from 91 days to 120 days penality, 140.00%
Number of days after issuance from 121 days to 150 days penality, 145.00%
Number of days after issuance from 151 days to 180 days penality, 150.00%
Note H and J  
Number of days after issuance less than 30 days penality. 125.00%
Number of days after issuance from 31 days to 60 days penality. 130.00%
Number of days after issuance from 61 days to 90 days penality. 135.00%
Number of days after issuance from 91 days to 120 days penality. 140.00%
Number of days after issuance from 121 days to 150 days penality. 145.00%
Number of days after issuance from 151 days to 180 days penality. 150.00%
Note M  
Number of days after issuance less than 90 days penality 135.00%
Number of days after issuance from 91 days to 120 days penality: 140.00%
Number of days after issuance from 121 days to 180 days penality: 145.00%
Number of days greater than 180 days 150.00%
Note N  
Any time after determined date of prepayment Penality 125.00%
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
EQUITY TRANSACTIONS (Details)
3 Months Ended
May 31, 2016
USD ($)
shares
Equity transactions Details  
Common shares authorized 700,000,000
Common shares issued and outstanding 237,304,383
Stock option plan allows directors grant options 5,000,000
The exercise price for the stock options must be no less than the fair market value of the common stock 100.00%
Common stock on the date of grant for participants that hold less than the Company's outstanding common stock 10.00%
fair market value of the common stock 110.00%
On the date of grant for participants that hold more of the Company's outstanding common stock 10.00%
Issued shares to extnguish convertible debt 63,197,705
Issued shares to extnguish convertible debt, fair value of shares | $ $ 1,525,028
Issued shares to extnguish convertible debt of value | $ 607,514
Extnguish convertible debt accrued interest | $ $ 31,826
Issued shares for salaries and management fees 5,000,000
Fair value for salaries and management fees | $ $ 89,500
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.5.0.2
COMMITMENTS TRANSACTIONS (Details) - USD ($)
Oct. 31, 2019
Jan. 21, 2016
Jan. 15, 2016
Dec. 23, 2015
Sep. 30, 2014
Mar. 01, 2014
COMMITMENTS TRANSACTIONS:            
Rent payments March 1, 2016 to August 31, 2016 $ 41,327          
Rent payments September 1, 2016 to August 31, 2017 169,441          
Rent payments September 1, 2017 to August 31, 2018 174,524          
Rent payments September 1, 2018 to August 31, 2019 179,760          
Rent payments September 1, 2019 to October 31, 2019 30,160          
Total $ 595,212          
Company also incurred lease hold improvements         $ 125,000  
Company will pay an annual salary to President and Chief Executive Officer for 18 months with a 25% increase after 18 months           $ 177,000
Company will pay an annual salary to President and Chief operating Officer for 18 months with a 25% increase after 18 months           104,000
Company entered into an employment agreement with the Executive Vice President of Fuel Cell Operations of the company and pay annual salary           $ 112,000
The Executive shall vest shares of the Company stock annually and is only fully vested and fully deliverable after 5 years of continuous and satisfactory employment           25,000
Company will pay an annual salary and the Executive shall be granted   $ 80,000 $ 55,000 $ 115,000    
Executive shall be granted restricted common shares of the Company upon execution of the employment contract     5,000 200,000    
The Executive shall vest shares of the Company monthly for year one       50,000    
The Executive shall vest shares of the Company monthly for year two       75,000    
The Executive shall vest shares of the Company monthly for year three       150,000    
The Executive shall vest shares of the Company monthly for year four       120,000    
The Executive shall vest shares of the Company monthly for year five       300,000    
The Executive shall also be granted the Company monthly for year one   8,333 1,000      
The Executive shall also be granted the Company monthly for year two   12,500 2,500      
The Executive shall also be granted the Company monthly for year three   16,666 5,000      
XML 35 R26.htm IDEA: XBRL DOCUMENT v3.5.0.2
SUBSEQUENT EVENT TRANSACTIONS (Details)
May 31, 2016
USD ($)
shares
SUBSEQUENT EVENT TRANSACTIONS DETAILS  
Issued common shares on conversion | shares 18,447,790
Principal convertible debt | $ $ 66,363
Issued common shares | shares 4,945,599
Common shares for gross proceeds | $ $ 20,000
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