Derivatives

12 Months Ended

Aug. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

NOTE 10 – DERIVATIVES

Embedded Conversion Option Derivatives

Due to the conversion terms of certain promissory notes, the embedded conversion options met the criteria to be bifurcated and presented as derivative liabilities. The Company calculated the estimated fair values of the liabilities for embedded conversion option derivative instruments at the original note inception date and as of August 31, 2017 using the Black-Scholes option pricing model using the share prices of the Company’s stock on the dates of valuation and using the following ranges for volatility, expected term and the risk-free interest rate at each respective valuation date, no dividend has been assumed for any of the periods:

	Note Inception Date			August 31, 2017
Volatility		313% - 350	%		291	%
Expected Term		0.75 – 0.88 years			0.33 - 0.88 years
Risk Free Interest Rate		1.07% - 1.19	%		1.23	%

The following reflects the initial fair value on the note inception date and changes in fair value through August 31, 2017:

Note inception date fair value allocated to debt discount	$	111,004
Change in fair value in 2017		(8,627	)
Embedded conversion option derivative liability fair value on August 31, 2017	$	102,377