Derivative Liability and Fair Value Measurements (Tables)

3 Months Ended

Nov. 30, 2019

Notes to Financial Statements

Fair Value, Assets Measured on Recurring Basis

Items recorded or measured at fair value on a recurring basis in the accompanying financial statements consisted of the following items as of November 30, 2019 and August 31, 2019:

	November 30, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability	$	16,018	$	-	$	-	$	16,018

	August 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability	$	-	$	-	$	-	$	-

Summary of changes in fair value of Level 3 financial liabilities

The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities for the three months ended November 30, 2019:

Balance, August 31, 2019	$	-
Transfers in due to issuance of convertible promissory notes		28,521
Transfers out due to conversions of convertible promissory notes		-
Mark to market to November 30, 2019		(12,503	)
Balance, November 30, 2019	$	16,018
Gain on change in derivative liability for the three months ended November 30, 2019	$	12,503