GOING CONCERN UNCERTAINTY

12 Months Ended

Aug. 31, 2016

GOING CONCERN UNCERTAINTY [Text Block]

2. GOING CONCERN UNCERTAINTY

The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business for the foreseeable future. The Company had a working capital deficit of $232,387 for the year ended August 31, 2016 [surplus of $18,890 for year ended August 31, 2015]. The Company incurred a net loss of $525,501 for the year ended August 31, 2016 [net loss $1,149,433 for the year ended August 31, 2015] and as at August 31, 2016 has incurred cumulative losses of $12,440,597 that raises substantial doubt about its ability to continue as a going concern. Management has been able, thus far, to finance the operations through equity financing and cash on hand. There is no assurance that the Company will be able to continue to finance the Company on this basis.

In view of these conditions, the ability of the Company to continue as a going concern is in substantial doubt and dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis, to obtain additional financing as may be required, to receive the continued support of the Company’s shareholders, and ultimately to obtain successful operations. There are no assurances that the Company will be able to obtain further funds required for its continued operations. As noted herein, the Company is pursuing various financing alternatives to meet its immediate and long-term financial requirements. There can be no assurance that additional financing will be available to the Company when needed or, if available, that it can be obtained on commercially reasonable terms. If the Company is not able to obtain the additional financing on a timely basis, it will be unable to conduct its operations as planned, and it will not be able to meet its other obligations as they become due. In such event, the Company will be forced to scale down or perhaps even cease its operations. There is significant uncertainty as to whether the Company can obtain additional financing. These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying financial statements.