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NOTE 9 – CONVERTIBLE NOTES (Tables)

3 Months Ended

Nov. 30, 2021

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

Counterparties		Issuance date		Maturity date		Principal Amount				Purchase Price				Discount on Note issuance				Note issuance costs				Proceeds Received (USD)
EMA Financial		November 18, 2019		August 18, 2020		$	75,000			$	68,500			$	6,500			$	3,763			$	64,737
Peak One Opportunity		December 9, 2019		December 9, 2022		$	85,000			$	76,500			$	8,500			$	11,188			$	65,312
Crown Bridge (Tranche I)		January 8, 2020		January 8, 2021		$	40,500			$	36,500			$	4,000			$	1,508			$	34,992
Auctus Fund Note		December 31, 2019		September 30, 2020		$	75,000			$	75,000			$	-			$	15,658			$	59,342
East Capital		February 13, 2020		February 13, 2021		$	50,000			$	50,000			$	-			$	6,508			$	43,492
Fidelis Capital		February 19, 2020		February 19, 2021		$	50,000			$	50,000			$	-			$	6,513			$	43,487
Armada Partners		March 12, 2020		March 12, 2021		$	38,500			$	35,000			$	3,500			$	2,008			$	32,992
EMA Financial		July 17, 2020		July 17, 2021		$	50,000			$	47,500			$	2,500			$	4,513			$	42,987
Crown Bridge (Tranche II)		July 23, 2020		July 23, 2021		$	40,500			$	36,500			$	4,000			$	2,208			$	34,292
Power Up Lending (Tranche I)		July 24, 2020		July 24, 2021		$	130,000			$	130,000			$	-			$	13,921			$	116,079
Power Up Lending (Tranche II)		August 18, 2020		August 18, 2021		$	63,000			$	63,000			$	-			$	8,061			$	54,939
						$	697,500			$	668,500			$	29,000			$	75,849			$	592,651

The below table summarizes all the convertible notes issued during the year ended August 31, 2021.

Counterparties		Issuance date		Maturity Date		Principal Amount				Purchase Price				Discount on Note issuance				Note issuance costs				Proceeds Received (USD)
Jefferson Street Capital		September 1,2020		September 1, 2021			82,500				75,000				7,500				6,051				68,949
FirstFire Global		September 1,2020		June 1, 2021			75,000				71,250				3,750				9,752				61,498
Power Up Lending		October 8, 2020		October 8, 2021			55,000				55,000				-				7,421				47,579
East Capital		October 9, 2020		October 9, 2021			62,700				62,700				-				7,708				54,992
						$	275,200			$	263,950			$	11,250			$	30,932			$	233,018

The following table summarizes the convertible note and derivative liability in the balance sheet at August 31, 2021:

NOTE 9 - CONVERTIBLE NOTES PAYABLE - Derivative Liability


Balance, August 31, 2020		$	438,921
Issuance of Convertible Note Principal		$	275,200
Issuance of MFN Principal		$	15,000
Discount on Note issuance, net of amortization		$	75,075
Accrued interest expense		$	24,562
Converted Note Principal		$	(166,464)
Converted accrued and unpaid interest		$	(8,538)
Prepayment of Note Principal		$	(559,782)
Paid interest expense		$	(29,390)
Change in fair value of Derivative liability		$	(64,584)
Balance, August 31, 2021		$	—

[custom:ScheduleOfPrepaidConvertibleNotes]

Convertible Notes	Beginning Principal after Note Conversion	Total Interest Accrued	Paid Date	Paid Principal	Paid Interest	Principal balance Outstanding	Payment amount	Loss from prepaid convertible note
Crown Bridge (Tranche I)	1,082	2,641	12/9/20	(1,082)	(2,641)	-	-	-
Crown Bridge (Tranche II)	40,500	1,545	12/9/20	(40,500)	(1,545)	-	72,500¹	(26,732)¹
EMA Financial	50,000	1,990	12/9/20	(50,000)	(1,990)	-	72,800	(20,810)
Power Up Lending	130,000	6,491	1/22/21	(130,000)	(6,491)	-	190,925	(54,434)
Power Up Lending	63,000	3,042	2/10/21	(63,000)	(3,042)	-	92,380	(26,338)
East Capital	62,700	3,114	4/7/21	(62,700)	(3,114)	-	87,467	(21,652)
Power Up Lending	55,000	2,746	4/7/21	(55,000)	(2,746)	-	80,797	(23,051)
Jefferson Street	82,500	4,097	3/1/21	(82,500)	(4,097)	-	116,975	(30,378)
FirstFire Global	75,000	3,724	3/1/21	(75,000)	(3,724)	-	108,125	(29,401)
Total	559,782	29,390	-	(559,782)	(29,390)	-	821,969	(232,796)

^1.The balance is the total of Crown Bridge Tranche I and Tranche II

The Holders converted convertible notes to common shares during the year ended August 31, 2021 as detailed below:

EMA Financial:

Conversion date

Beginning principal balance

Principal Amount Converted

Interest Amount Converted

MFN Principal

Total converted principals and unpaid interest

Closing
Fee

Ending principal balance

Conversion Price

Converted
Shares

September 1, 2020

5,285

5,285

5,154

—

10,439

1,000

—

$

0.00812

1,408,800

Total

5,285

5,154

—

10,439

1,000

1,408,800

Auctus Capital Partners:

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 8, 2020			33,295				12,055				73				—				12,128				750				21,240			$	0.00510				2,525,000
September 18, 2020			21,240				15,233				58				—				15,291				750				6,007			$	0.00510				3,145,300
September 29, 2020			6,007				6,007				18				11,082				17,107				750				—			$	0.00480				3,720,200
October 22, 2020			—				—				—				3,918				3,918				750				—			$	0.00216				2,161,240
Total							33,295				149				15,000				48,444				3,000												11,551,740

*On September 29, 2020, $6,007 of the Auctus Capital convertible note was converted to 17,107 shares of common stock at a conversion price $0.0048, 60% of the lowest trading price in the 20 days prior to the conversion dates. Additional most-favored-nation (MFN) principal of $15,000 was triggered when the conversion price is lower than $0.1. The remaining Auctus Capital convertible note principal balance was $0, including $15,000 MFN principal.

East Capital:

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 8, 2020			26,600				13,300				250				—				13,550				—				13,300			$	0.01020				1,328,431
September 25, 2020			13,300				13,300				129				—				13,429				—				—			$	0.00960				1,398,854
Total							26,600				379				—				26,979				—												2,727,285

Fidelis Capital:

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 1, 2020			41,000				25,671				—				—				25,671				—				15,329			$	0.01218				2,107,648
September 9, 2020			15,329				15,329				2,605				—				17,934				—				—			$	0.01020				1,758,257
Total							41,000				2,605				—				43,605				—												3,865,905

Armada Partners:

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 25, 2020			25,500				13,000				213				—				13,213				500				12,500			$	0.01020				1,344,363
October 6, 2020			12,500				12,500				38				—				12,538				500				—			$	0.00960				1,358,145
Total							25,500				251				—				25,751				1,000												2,702,508

Crown Bridge (Tranche I):

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 8, 2020			20,867				6,400				—				—				6,400				1,250				14,467			$	0.00765				1,000,000
September 22, 2020			14,467				5,635				—				—				5,635				1,250				8,832			$	0.00765				900,000
October 1, 2020			8,832				7,750				—				—				7,750				1,250				1,082			$	0.00720				1,250,000
Total							19,785								—				19,785				3,750												3,150,000

In summary, the Company has either converted or prepaid all the outstanding convertible notes as of August 31, 2021. The below table lists conversions and prepayments during each quarter in FY2021.

Schedule of Debt Conversions [Table Text Block]

Conversion date

Beginning principal balance

Principal Amount Converted

Interest Amount Converted

MFN Principal

Total converted principals and unpaid interest

Closing
Fee

Ending principal balance

Conversion Price

Converted
Shares

September 1, 2020

5,285

5,285

5,154

—

10,439

1,000

—

$

0.00812

1,408,800

Total

5,285

5,154

—

10,439

1,000

1,408,800

Auctus Capital Partners:

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 8, 2020			33,295				12,055				73				—				12,128				750				21,240			$	0.00510				2,525,000
September 18, 2020			21,240				15,233				58				—				15,291				750				6,007			$	0.00510				3,145,300
September 29, 2020			6,007				6,007				18				11,082				17,107				750				—			$	0.00480				3,720,200
October 22, 2020			—				—				—				3,918				3,918				750				—			$	0.00216				2,161,240
Total							33,295				149				15,000				48,444				3,000												11,551,740

*On September 29, 2020, $6,007 of the Auctus Capital convertible note was converted to 17,107 shares of common stock at a conversion price $0.0048, 60% of the lowest trading price in the 20 days prior to the conversion dates. Additional most-favored-nation (MFN) principal of $15,000 was triggered when the conversion price is lower than $0.1. The remaining Auctus Capital convertible note principal balance was $0, including $15,000 MFN principal.

East Capital:

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 8, 2020			26,600				13,300				250				—				13,550				—				13,300			$	0.01020				1,328,431
September 25, 2020			13,300				13,300				129				—				13,429				—				—			$	0.00960				1,398,854
Total							26,600				379				—				26,979				—												2,727,285

Fidelis Capital:

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 1, 2020			41,000				25,671				—				—				25,671				—				15,329			$	0.01218				2,107,648
September 9, 2020			15,329				15,329				2,605				—				17,934				—				—			$	0.01020				1,758,257
Total							41,000				2,605				—				43,605				—												3,865,905

Armada Partners:

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 25, 2020			25,500				13,000				213				—				13,213				500				12,500			$	0.01020				1,344,363
October 6, 2020			12,500				12,500				38				—				12,538				500				—			$	0.00960				1,358,145
Total							25,500				251				—				25,751				1,000												2,702,508

Crown Bridge (Tranche I):

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 8, 2020			20,867				6,400				—				—				6,400				1,250				14,467			$	0.00765				1,000,000
September 22, 2020			14,467				5,635				—				—				5,635				1,250				8,832			$	0.00765				900,000
October 1, 2020			8,832				7,750				—				—				7,750				1,250				1,082			$	0.00720				1,250,000
Total							19,785								—				19,785				3,750												3,150,000

In summary, the Company has either converted or prepaid all the outstanding convertible notes as of August 31, 2021. The below table lists conversions and prepayments during each quarter in FY2021.

[custom:ScheduleOfDebtConversionsContinuedTextBlock]

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 8, 2020			26,600				13,300				250				—				13,550				—				13,300			$	0.01020				1,328,431
September 25, 2020			13,300				13,300				129				—				13,429				—				—			$	0.00960				1,398,854
Total							26,600				379				—				26,979				—												2,727,285

Fidelis Capital:

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 1, 2020			41,000				25,671				—				—				25,671				—				15,329			$	0.01218				2,107,648
September 9, 2020			15,329				15,329				2,605				—				17,934				—				—			$	0.01020				1,758,257
Total							41,000				2,605				—				43,605				—												3,865,905

Armada Partners:

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 25, 2020			25,500				13,000				213				—				13,213				500				12,500			$	0.01020				1,344,363
October 6, 2020			12,500				12,500				38				—				12,538				500				—			$	0.00960				1,358,145
Total							25,500				251				—				25,751				1,000												2,702,508

Crown Bridge (Tranche I):

Conversion date		Beginning principal balance				Principal Amount Converted				Interest Amount Converted				MFN Principal				Total converted principals and unpaid interest				Closing Fee				Ending principal balance				Conversion Price				Converted Shares
September 8, 2020			20,867				6,400				—				—				6,400				1,250				14,467			$	0.00765				1,000,000
September 22, 2020			14,467				5,635				—				—				5,635				1,250				8,832			$	0.00765				900,000
October 1, 2020			8,832				7,750				—				—				7,750				1,250				1,082			$	0.00720				1,250,000
Total							19,785								—				19,785				3,750												3,150,000

In summary, the Company has either converted or prepaid all the outstanding convertible notes as of August 31, 2021. The below table lists conversions and prepayments during each quarter in FY2021.

NOTE 9 - CONVERTIBLE NOTES - Summary of Converted and Prepaid Convertible Notes

Sr. No.	Note	Total convertible note issued	Total principal converted as of 08/31/2020	Total principal converted as of 11/30/2020	Total principal paid off as of 2/28/2021	Total principal paid off as of 8/31/2021	Principal balance Outstanding as of 8/31/2021
1	EMA Financial	90,000	(84,716)	(5,285)	-	-	-
2	Peak One Opportunity	85,000	(85,000)	-	-	-	-
3	Auctus Fund Note	90,000	(41,705)	(48,295)	-	-	-
4	Crown Bridge (Tranche I)	40,500	(19,633)	(19,785)	(1,082)	-	-
5	East Capital	50,000	(23,400)	(26,600)	-	-	-
6	Fidelis Capital	50,000	(9,000)	(41,000)	-	-	-
7	Armada Partners	38,500	(13,000)	(25,500)	-	-	-
8	Crown Bridge (Tranche II)	40,500	-	-	(40,500)	-	-
9	EMA Financial (Issue Date: 7.17.2020)	50,000	-	-	(50,000)	-	-
10	Power Up Lending (Issue Date: 07.24.2020)	130,000	-	-	(130,000)	-	-
11	Power Up Lending (Issue Date: 08.18.2020)	63,000	-	-	(63,000)	-	-
12	East Capital (Issue Date: 10.09.2020)	62,700	-	-	-	(62,700)	-
13	Power Up Lending (Issue Date: 10.08.2020)	55,000	-	-	-	(55,000)	-
14	Jefferson Street (Issue Date: 09.01.2020)	82,500	-	-	-	(82,500)	-
15	FirstFire Global (Issue Date: 09.01.2020)	75,000	-	-	-	(75,000)	-
	Total	1,002,700	(276,454)	(166,464)	(284,582)	(275,200)	-

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details