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Commitments and Contingencies
3 Months Ended
Nov. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 5 – COMMITMENTS AND CONTINGENCIES

 

On February 1, 2016 the Company entered into a lease space effective June 1, 2016 through May 30, 2018. Lease payments of $750 per month payable in advance on the first day of each month for total lease payments of $18,000.

 

On June 9, 2016, the Company entered into an agreement with Dr. Ralph Salvagno our chief executive officer. The agreement is for 24 months or until June 30, 2018 with options to renew for additional 24 months. The Company is to pay an annual salary of $240,000, issue 8,000,000 of common stock that vest immediately. The Company granted 2,000,000 options to purchase 2,000,000 shares of common stock at 50% discount to market or $0.25, whichever is higher. The Company recorded stock based compensation of $840,000 in prior year for the common stock which is not yet issued as of November 30, 2016 and $840,000 is recorded in stock payable.

 

Upon receipt of FDA approval for Escozine for Pets, Dr. Salvagno will receive an additional 5,000,000 shares of common stock and will be granted options to purchase an additional 2,000,000 shares of common stock at 50% discount to market or $1.00, whichever is higher, this event has not occurred as of November 30, 2016.

 

On June 13, 2016, the Company entered into an agreement with a consultant for financial services. The agreement is for 36 months or until June 2019 with options to renew for additional 24 months. The Company is to issue 5,000,000 shares of common stock that vest immediately. The Company granted 2,000,000 options to purchase 2,000,000 shares of common stock at 50% discount to market or $0.25, whichever is higher. The Company recorded stock based compensation of $1,350,000 in prior year for the common stock which is not yet issued as of November 30, 2016 and $1,350,000 is recorded in stock payable.

 

In June 2016, the Company entered into an agreement with our science officer. The agreement is for 36 months or until June 2019 with options to renew for additional 24 months. The Company is to pay an annual salary of $48,000 in year 1, $72,000 in year 2, and $96,000 in year 3 and to also issue up to 1,000,000 shares of common stock valued at $300,000 that vest over 2 years. For the period ended November 30, 2016, the Company recorded stock based compensation of $37,500 and there remains $237,500 to be expensed; these shares have not been issued as of November 30, 2016 and $62,500 is recorded in stock payable.

 

In June 2016, the Company entered into an agreement with an employee for 36 months or until June 2019 with options to renew for additional 24 months. The Company is to pay salary of $10,000 per month and to issue up to 3,000,000 shares of common stock valued at $900,000 that vest over 3 years. For the period ended November 30, 2016, the Company recorded stock based compensation of $75,000 and there remains $25,000 to be expensed as this agreement was terminated on December 29, 2016; these shares have not been issued as of November 30, 2016 and $125,000 is recorded in stock payable. On December 29, 2016, the Company entered into a Settlement and Mutual Release with the former employee and Petlife has agreed to make installment payments of $3,000 bi-monthly until April 15, 2017 totaling $31,000. Furthermore, the amount of 400,000 shares of Petlife is to be fully vested in the name of the former employee on or before February 1, 2017.

 

In June 2016, the Company entered into an agreement with an employee for 36 months or until June 2019 with options to renew for additional 24 months. The Company is to pay annual salary of $30,000 year, $54,000 year 2, and $78,000 year 3 and to issue up to 2,000,000 shares of common stock valued at $600,000 that vest over 2 years. For the period ended November 30, 2016, the Company recorded stock based compensation of $75,000 and there remains $475,000 to be expensed; these shares have not been issued as of November 30, 2016 and $125,000 is recorded in stock payable.

 

On September 1, 2016 the Company entered into a consulting agreement for investor relations with a term of six months. The compensation for the services will be $10,000 cash payment due on signing of contract and on 1st day of each month, $25,000 ancillary budget due each month for the balance of this contract, 500,000 shares of common stock to be issued upon the day of execution of the agreement with a vesting schedule of 1/3 per month for the extent of the contract. The Company will reimburse Consultant for any pre-approved travel or other expenses. As of November 30, 2016 the 500,000 shares of common stock valued at $325,000 on date of grant have not been issued and $325,000 is recorded in stock payable. In addition on November 30, 2016 this agreement was mutually terminated.

 

On October 5, 2016, the Company entered into an employment agreement with an employee for the term of twelve months and annually renewable. Pursuant to the agreement, the employee will be paid $6,300 per month and awarded 20,000 shares of common stock each month on the 15th for the term of the agreement, beginning December 15, 2016.

 

On October 11, 2016 the Company entered into an agreement with a contractor to be their Chief Science Officer for the term until October 11, 2017 and renewable for an additional 12 months. Pursuant to the agreement, the contractor will be paid a fee rate of $400 per hour paid in common shares of the Company’s stock on a quarterly basis and fully vesting at time of grant based on the average share price of the Company stock for the 5 days preceding the award. Contractor will be entitled to a bonus of 250,000 common shares upon FDA approval of a Vitalzul product. As of November 30, 2016 the contractor has not provided any services.

 

On November 4, 2016, the Company entered into an employment agreement with an employee. Pursuant to the agreement, the employee will be awarded 10,000 shares of common stock after the successful completion of 90 days of continuous employment following the execution of the agreement. The employee will then be entitled to another 10,000 shares per month for 9 months from the date of the agreement.