Stockholders' Deficit

9 Months Ended

May 31, 2017

Equity [Abstract]

Stockholders' Deficit

NOTE 6 - STOCKHOLDERS’ DEFICIT

Preferred Stock

The Company is authorized to issue up to 50,000,000 shares of preferred stock, par value $0.001 per share. Each share of preferred stock is convertible into common stock on a one-for-one basis. As of May 31, 2017, there are no shares of preferred stock issued and outstanding.

Common Stock

The Company was authorized to issue up to 750,000,000 shares of common stock, par value $0.001 per share. Each outstanding share of common stock entitles the holder to one vote per share on all matters submitted to a stockholder vote. All shares of common stock are non-assessable and non-cumulative, with no pre-emptive rights.

On May 10, 2017, the Company issued 500,000 shares of common stock for the acquisition of certain assets from Healthy Life Pets, LLC. The shares were valued at $90,000. See Note 3.

During the nine months ended May 31, 2017, the Company has issued or is contractually obligated to issue, 60,345,380 common shares for services valued at $24,272,168, of which $20,435,257 has been recorded as stock-based compensation. The Company recorded $2,315,000 during the year ended August 31, 2016 and will amortize $1,521,911 over the remaining service period.

Included in the above paragraph, during the nine months ended May 31, 2017, the Company has issued or is contractually obligated to issue, 500,000 common shares for financial reporting services valued at $162,500 of which $43,333 has been recorded as stock-based compensation. The Company will amortize $119,167 over the remaining service period or through March 2019.

Included in the above paragraph, during the nine months ended May 31, 2017, the Company has issued or is contractually obligated to issue, 40,000 common shares for board advisory services valued at $13,000 of which $6,500 has been recorded as stock-based compensation. The Company will amortize $6,500 over the remaining service period through July 2017.

Included in the above paragraph, in February 2017, the Company entered into a consulting agreement for a spokesman for the Petlife pet foods division. The agreement is through January 2020. The Company issued 1,000,000 shares of restricted common stock which 27,778 common shares vest every month. The common shares were valued at $160,000 and $17,778 was recorded as stock compensation for the nine months ended May 31, 2017. The Company will record the remaining $142,222 over the service period or through January 2020.

Employment Agreements

Included in the above paragraph, in January 2017, the Company entered into an employment agreement with our Vice-President of marketing. The agreement is through February 2019. The Company will pay $6,300 per month and 1,500,000 shares of restricted common stock which 100,000 vest immediately and 350,000 common shares vest every six months. The common shares were valued at $240,000 and $16,000 was recorded as stock compensation for the nine months ended May 31, 2017. The Company will record the remaining $224,000 over the service period or through February 2019.

Included in the above paragraph, in January 2017, the Company entered into an employment agreement with the President of the pet foods division. The agreement is through December 2018. The Company will pay $12,500 per month and 3,000,000 shares of restricted common stock which 350,000 common shares vest every three months. The common shares were valued at $600,000 and $75,000 was recorded as stock compensation for the nine months ended May 31, 2017. The Company will record the remaining $525,000 over the service period or through December 2018.

Stock Option Plan

On June 9, 2016, the Board of Directors approved the 2016 Stock Option Plan which reserved 20,000,000 shares of common stock.

The Company has granted options to an employee and to a consultant. Options activity for the nine months ended May 31, 2017 is as follows:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
	Number		Exercise		Contractual		Intrinsic
	of Options		Price		Terms		Value
Outstanding at August 31, 2016		4,000,000	$	0.25
Granted		-	$	-
Exercised		-	$	-
Forfeited		-	$	-
Expired		-	$	-
Outstanding at May 31, 2017		4,000,000	$	0.25		2.02	$	369,200
Exercisable at May 31, 2017		4,000,000	$	0.25