0001477932-19-007157.txt : 20191217 0001477932-19-007157.hdr.sgml : 20191217 20191217171323 ACCESSION NUMBER: 0001477932-19-007157 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 55 CONFORMED PERIOD OF REPORT: 20190831 FILED AS OF DATE: 20191217 DATE AS OF CHANGE: 20191217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GridIron BioNutrients, Inc. CENTRAL INDEX KEY: 0001629205 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 364797193 STATE OF INCORPORATION: NV FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-55852 FILM NUMBER: 191290532 BUSINESS ADDRESS: STREET 1: 2701 NORTHGATE LN STREET 2: STE 1G CITY: CARSON CITY STATE: NV ZIP: 89706 BUSINESS PHONE: (800) 570-0438 MAIL ADDRESS: STREET 1: 2701 NORTHGATE LN STREET 2: STE 1G CITY: CARSON CITY STATE: NV ZIP: 89706 FORMER COMPANY: FORMER CONFORMED NAME: My Cloudz, Inc. DATE OF NAME CHANGE: 20141224 10-K 1 gmvp_10k.htm FORM 10-K gmvp_10k.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-K

 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended August 31, 2019

 

Commission File No. 000-55852

 

GRIDIRON BIONUTRIENTS, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

36-4797193

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

2701 Northgate Lane., Ste. 1G

Carson City, Nevada 89706

(Address of principal executive offices, zip code)

 

(800) 570-0438

(Registrant’s telephone number, including area code)

 

_____________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

 

Securities registered pursuant to section 12(g) of the Act:

Common Stock, $.001 par value

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No x

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

¨

Non-accelerated filer

x

Accelerated filer

¨

Smaller reporting company

x

(Do not check if a smaller reporting company)

Emerging growth company

x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

 

At February 28, 2019, the last business day of the Registrant’s most recently completed second fiscal quarter, the aggregate market value of the voting common stock held by non-affiliates of the Registrant (without admitting that any person whose shares are not included in such calculation is an affiliate) was $1,228,814. At December 12, 2019, there were 135,509,220 shares of the Registrant’s common stock, par value $0.001 per share, and 8,480,000 shares of Series A Preferred Stock, par value $0.001 per share, outstanding.

 

 
 
 
 

 

GRIDIRON BIONUTRIENTS, INC.

TABLE OF CONTENTS

 

 

Page No.

 

PART I

 

Item 1.

Business

 

4

 

Item 1A.

Risk Factors

 

8

 

Item 1B.

Unresolved Staff Comments

 

8

 

Item 2.

Properties

 

8

 

Item 3.

Legal Proceedings

 

8

 

Item 4.

Mine Safety Disclosures

 

8

 

PART II

 

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 

9

 

Item 6.

Selected Financial Data

 

10

 

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

10

 

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

 

17

 

Item 8.

Financial Statements

 

F-1

 

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

18

 

Item 9A.

Controls and Procedures

 

18

 

Item 9B.

Other Information

 

19

 

PART III

 

Item 10.

Directors, Executive Officers and Corporate Governance

 

20

 

Item 11.

Executive Compensation

 

22

 

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

23

 

Item 13.

Certain Relationships and Related Transactions, and Director Independence

 

23

 

Item 14.

Principal Accounting Fees and Services

 

23

 

PART IV

 

Item 15.

Exhibits and Financial Statement Schedules

 

24

 

Item 16.

Form 10-K Summary

 

24

 

Signatures

 

25

 

 
2
 
 

 

FORWARD-LOOKING STATEMENTS

 

This Annual Report on Form 10-K of GridIron BioNutrients, Inc., a Nevada corporation, contains “forward-looking statements,” as defined in the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. The economic environment within which we operate could materially affect our actual results.

 

Our management has included projections and estimates in this Form 10-K, which are based primarily on management’s experience in the industry, assessments of our results of operations, discussions and negotiations with third parties and a review of information filed by our competitors with the SEC or otherwise publicly available. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

 

All references in this Form 10-K to the “Company”, “GridIron BioNutrients”, “we”, “us,” or “our” are to GridIron BioNutrients, Inc.

 

 
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PART I

 

ITEM 1. BUSINESS

 

Our Corporate History and Background

 

GridIron BioNutients, Inc. (the “Company”) was incorporated on July 31, 2014 under the laws of the State of Nevada. From our formation on July 31, 2014 until October 9, 2017, we were engaged in the business of cloud storage services. Sommay Vongsa served as President, Secretary, Treasurer and sole director from July 31, 2014, until his resignation on October 9, 2017. Concurrent with his resignation, Mr. Vongsa appointed Darren Long, as the Company’s new Chief Executive Officer, Secretary, Chairman of the board of directors, and Secretary; Timothy Orr, as the Company’s new President and a director; and Brian Martinho, as the Company’s new Treasurer and a director. Effective February 26, 2018, Darren Long resigned as a member and Chairman of the Board of Directors, and as Chief Executive Officer, of the Company. Effective February 26, 2018, Brian Martinho resigned as a member of the Board of Directors, and as Treasurer, of the Company. Effective, February 27, 2018, Timothy Orr, as the sole member of the Board of Directors, appointed himself as Secretary and Treasurer of the Company. Mr. Orr is also presently the Company’s President.

 

Effective November 28, 2017, the board of directors and the stockholders of the majority of voting power of the Company approved an amendment to the Company’s Articles of Incorporation to change the name of the Company from “My Cloudz, Inc.” to “GridIron BioNutrients, Inc.” A Certificate of Amendment to the Articles of Incorporation effecting the change of name of the Company was filed with the Secretary of State of the State of Nevada effective November 27, 2017. The Financial Industry Regulatory Authority, Inc. recognized the name change effective December 18, 2017. Under Rule 14c-2, promulgated pursuant to the Securities Exchange Act of 1934, as amended, the name change became effective February 21, 2018.

 

From inception until we completed our reverse acquisition of GridIron BioNutrients, our principal business was cloud storage services.

 

Reverse Acquisition of GridIron BioNutrients

 

On October 9, 2017, the Company entered into a Share Exchange Agreement (the “Share Exchange Agreement”), by and among the Company, GridIron BioNutrients, Inc., then a privately-held Nevada corporation since renamed GridIron Ventures, Inc. (“GridIron Ventures”), and the holders of common stock of GridIron Ventures. The holders of the common stock of GridIron Ventures consisted of 3 stockholders.

 

Under the terms and conditions of the Share Exchange Agreement, the Company offered, sold and issued 70,000,000 shares of common stock in consideration for all the issued and outstanding shares in GridIron Ventures. The effect of the issuance was that GridIron Ventures shareholders held approximately 57.0% of the issued and outstanding shares of common stock of the Company, giving effect the Share Exchange Agreement.

 

Darren Long, the founder of GridIron Ventures, became the Company’s new Chief Executive Officer, Chairman of the board of directors, and Secretary, was then the holder of 35,000,000 shares of common stock of the Company. Timothy Orr, became the Company’s new President, a director of the Company, and the holder of 17,500,000 shares of common stock of the Company. Brian Martinho, became the Company’s new Treasurer, a director, and the holder of 17,500,000 shares of common stock of the Company. The Company’s new officers and sole director, therefore, control an aggregate of 70,000,000, or 57.0%, of the outstanding common stock of the Company, on a fully diluted basis, giving effect to the Share Exchange Agreement.

 

As a result of the Share Exchange Agreement, GridIron Ventures became a wholly-owned subsidiary of the Company.

 

The share exchange transaction with GridIron Ventures was treated as a reverse acquisition, with GridIron Ventures as the acquiror and the Company as the acquired party. Unless the context suggests otherwise, when we refer in this Form 10-K to business and financial information for periods prior to the consummation of the reverse acquisition, we are referring to the business and financial information of GridIron Ventures.

 

Organization & Subsidiaries

 

We have one operating subsidiary, GridIron Ventures, Inc., a Nevada corporation.

 

Overview of GridIron BioNutrients

 

Our wholly owned subsidiary, GridIron Ventures was incorporated on July 20, 2017, in Nevada.

 

The business of GridIron BioNutrients is now the principal business of the Company. GridIron BioNutrients is in the business of marketing and selling cannabidiol products line of capsules, oil, ointments, concentrates and water.

 

GridIron BioNutrients principal administrative offices are located at 2701 Northgate Lane, Suite 1G, Carson City, Nevada 89706. Our website is www.gridirionbionutrients.com.

 

 
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Summary Financial Information

 

The tables and information below are derived from our audited financial statements as of August 31, 2019.

 

 

 

August 31,

2019

 

Financial Summary

 

 

 

Cash and Deposits

 

$18,975

 

Total Assets

 

 

256,414

 

Total Liabilities

 

 

224,053

 

Total Stockholders’ Equity

 

$32,361

 

 

Primary Business

 

GridIron BioNutrients is in the business of marketing and selling cannabidiol products line of capsules, oil, ointments, concentrates and water. GridIron BioNutrients is the owner and has right to intellectual property, including trademark, trade names, images, likenesses and other associated intellectual property, such as the name “Gridion BioNutrients”.

 

We intend to:

 

·

establish a cannabidiol products platform and brand;

·

enter into agreements with strategic partners in the cannabidiol products industry; and

·

establish key exclusive strategic alliances which serve to accomplish the task of becoming the market leader.

 

Principal Products

 

Gridiron BioNutrients principal products currently include:

 

Gridiron MVP™ Water Beverage (16.9oz)

Gridiron MVP™ Concentrate (2oz / 4oz)

 

These products contain a proprietary blend of humic and fulvic acid, trace minerals, probiotics, electrolytes, cannabidiol (CBD) within an alkaline of pH10.

 

Gridiron has secured the rights to this proprietary formulation through its CEO, Timothy Orr. (VERBAL AGREEMENT). Timothy Orr provided the formulation in connection with his receipt of 32,500,000 shares of common stock from the Company on October 9, 2017.

 

Gridiron has the exclusive right(s) to develop CBD products with this formulation. However, Gridiron is limited to developing only CBD products with this formulation and as such does not have any rights to develop products that do not contain CBD with this formulation.

 

In addition to the Gridiron MVP™ beverage and concentrate Gridiron currently has the following products available to market:

 

Gridiron Salve

Gridiron Premium Hemp Oil Drops (1oz /2oz)

Gridiron Premium Hemp Oil Capsules

  

 
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Distribution of Products

 

Gridiron’s products are currently available for sale on its website http://gridironbionutrients.com. The Company intends to retain a consultant(s) to provide avenues to distribution its products within the next twelve months. However, in order to retain any consultant(s) the Company will require funding and currently the Company does not have the required funding to accomplish this task. If the Company is unable to secure financing; it would likely result in a material loss of any investment made into the Company.

 

Competition

 

Competition within the cannabidiol (CBD) industry is intense with many well-established companies within the market and numerous start-up companies entering the market. Gridiron intends to brand and market high quality CBD products through both exclusive and non-exclusive strategic alliances that will serve to make the Company a market leader.

 

In addition to the products described herein the Company intends to add an additional CBD water beverage to its product line within the next 4-5 months. The Company can provide no assurance or guarantee that it will be able to develop and/or maintain any strategic alliances now or in the future or that its anticipated new CBD beverage will be accepted by the market if and when developed. If the Company cannot develop and maintain strategic alliances or be successful with the offer of its CBD products and proposed CBD products it would be a significant material negative impact on the business that could result in a significant loss to any investment made into the Company.

 

Sources of Raw Materials

 

Gridiron MVP™ product(s) contain proprietary blend of nutrients that are sourced from various third parties and formulated into the water beverage and concentrate. If for any reason any of these sources are disrupted and the Company is unable to obtain the raw materials necessary to formulate the Gridiron MVP™ product(s) it would materially impact the business that may result in significant losses. Moreover, the Company will be dependent upon third party bottling facilities for its Gridiron MVP™ product; currently the Company has no arrangements or otherwise with any bottling facility and cannot provide any assurance that a suitable bottling facility can be retained or maintained in the future.

 

The Company currently has a Distribution place for the Gridiron Salve, Gridiron Premium Hemp Oil Drops (1oz /2oz) and Gridiron Premium Hemp Oil Capsules. If there is a disruption with the manufacturer of these products for any reason with the Company, it could result in significant delays and/or the inability to deliver the products to customers which would negatively impact the Company’s business.

 

Strategic Partners

 

The Company intends to develop both exclusive and non-exclusive strategic alliances that promote the Company’s products.

 

Intellectual Property

 

We rely on a combination of trademark laws, trade secrets, confidentiality provisions and other contractual provisions to protect our proprietary rights, which are primarily our brand names, product designs and marks. We do not own any patents.

 

The Company has filed four trademark applications with the U.S. Patent & Trademark Office (USPTO) as follows:

 

87594229 - GRIDIRON BIONUTRIENTS in international class 005 (supplements)

 

87594267 - GRIDIRON MVP in international class 005 (supplements)

 

87594303 - GRIDIRON BIONUTRIENTS in international class 032 (beverages)

 

87594316 - GRIDIRON MVP in international class 032 (beverages)

 

 
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Timothy Orr, the Chief Executive Officer and Chairman of the Board of Directors of the Company, is providing the Gridiron MVP™ formulation(s) to the Company at no charge to the Company. Gridiron has the exclusive right(s) to develop CBD products with this formulation. However, Gridiron is limited to developing only CBD products with this formulation and as such does not have any rights to develop products that do not contain CBD with this formulation.

 

The Company does not believe that there is any legal limitation on its ability to enforce the protection of its intellectual property due to federal and state laws prohibiting the production and sale of CBD.

 

Government Regulation and Approvals

 

We are not aware of any governmental regulations or approvals needed for any of our products. We do not believe that we are subject to any government regulations relating to the ownership and licensing of our intellectual property.

  

Cannabis Regulation

 

Although a number of states of the United States have legalized medical marijuana, recreational marijuana, or both, it remains illegal under United States federal law. Cannabis currently remains a Schedule I drug under the Controlled Substances Act of 1970. Under United States federal law, a Schedule I drug or substance has a high potential for abuse, no accepted medical use in the United States, and a lack of accepted safety for the use of the drug under medical supervision. As such, cannabis related practices or activities, including without limitation, the manufacture, importation, possession, use, or distribution of cannabis, remain illegal under United States federal law.

 

Although federally illegal, the U.S. federal government’s approach to enforcement of such laws has of least until recently trended toward non-enforcement. On August 29, 2013, the U.S. Department of Justice (“DOJ”) issued a memorandum known as the “Cole Memorandum” to all U.S. Attorneys’ offices (federal prosecutors). The Cole Memorandum generally directed U.S. Attorneys not to prioritize the enforcement of federal cannabis laws against individuals and businesses that rigorously comply with state regulatory provisions in states with strictly regulated medical or recreational cannabis programs. While not legally binding, and merely prosecutorial guidance, the Cole Memorandum laid a framework for managing the tension between state and federal laws concerning state regulated cannabis businesses.

 

However, on January 4, 2018 the Cole Memorandum was revoked by Attorney General Jeff Sessions, a long-time opponent of state-regulated medical and recreational cannabis. While this did not create a change in federal law, as the Cole Memorandum was not itself law, the revocation removed the DOJ’s guidance to U.S. Attorneys that state regulated cannabis industries substantively in compliance with the Cole Memorandum’s guidelines should not be a prosecutorial priority. In addition to his revocation of the Cole Memorandum, Attorney General Sessions also issued a one-page memorandum known as the “Sessions Memorandum”. The Sessions Memorandum confirmed the rescission of the Cole Memorandum and explained the rationale of the DOJ in doing so: the Cole Memorandum, according to the Sessions Memorandum, was “unnecessary” due to existing general enforcement guidance adopted in the 1980s, as set forth in the U.S. Attorney’s Manual (the “USAM”). The USAM enforcement priorities, like those of the Cole Memorandum, are also based on the federal government’s limited resources, and include “law enforcement priorities set by the Attorney General,” the “seriousness” of the alleged crimes, the “deterrent effect of criminal prosecution,” and “the cumulative impact of particular crimes on the community.”

 

While the Sessions Memorandum emphasizes that cannabis is a Schedule I controlled substance, and reiterates the statutory view that cannabis is a “dangerous drug and that marijuana activity is a serious crime,” it does not otherwise indicate that the prosecution of cannabis-related offenses is now a DOJ priority. Furthermore, the Sessions Memorandum explicitly describes itself as a guide to prosecutorial discretion. Such discretion is firmly in the hands of U.S. Attorneys in deciding whether or not to prosecute cannabis-related offenses. Our outside U.S. counsel continuously monitors all U.S. Attorney comments related to regulated medical and adult-use cannabis laws to assess various risks and enforcement priorities within each jurisdiction. Dozens of U.S. Attorneys across the country have affirmed that their view of federal enforcement priorities has not changed, although a few have displayed greater ambivalence.

 

On January 15, 2019, U.S. Attorney General nominee William P. Barr intimated a markedly different approach to cannabis regulation than his predecessor during his confirmation hearing before the Senate Judiciary Committee. Mr. Barr stated that his approach to cannabis regulation would be not to upset settled expectations that have arisen as a result of the Cole Memorandum, that it would be inappropriate to upset the current situation as there has been reliance on the Cole Memorandum and that he would not be targeting companies that have relied on the Cole Memorandum and are complying with state laws with respect to the distribution and production of cannabis. While he did not offer support for cannabis legalization, Mr. Barr did emphasize the need for the U.S. Congress to clarify federal laws to address the untenable current situation which has resulted in a backdoor nullification of federal law.

 

Additionally, under U.S. federal law it may, under certain circumstances, be a violation of federal money laundering statutes for financial institutions to accept any proceeds from cannabis sales or any other Schedule I controlled substances. Banks and other financial institutions could be prosecuted and possibly convicted of money laundering for providing services to U.S. cannabis businesses. Under U.S. federal law, banks or other financial institutions that provide a cannabis business with a checking account, debit or credit card, small business loan or any other service could be found guilty of money laundering or conspiracy. Despite these laws, in February 2014, the Financial Crimes Enforcement Network (“FCEN”) of the Treasury Department issued a memorandum (the “FCEN Memorandum”) providing instructions to banks seeking to provide services to cannabis-related businesses. The FCEN Memorandum states that in some circumstances, it is permissible for banks to provide services to cannabis-related businesses without risking prosecution for violation of federal money laundering laws. It refers to supplementary guidance that Deputy Attorney General Cole issued to federal prosecutors relating to the prosecution of money laundering offenses predicated on cannabis-related violations of the CSA. It is unclear at this time whether the current administration will follow the guidelines of the FCEN Memorandum.

 

 
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Although we do not produces, handle or sell cannabis, and the possession, cultivation and distribution of marijuana for medical use is permitted in Nevada, and medical and recreational use is permitted in the State of Washington, where our administrative offices are located, provided compliance with applicable state and local laws, rules, and regulations, marijuana is illegal under federal law. We believe we operate our business in compliance with applicable Nevada and Washington law and regulations. Any changes in federal, state or local law enforcement regarding marijuana may affect our ability to operate our business. Strict enforcement of federal law regarding marijuana would likely result in the inability to proceed with our business plans, could expose us to potential criminal liability and could subject our properties to civil forfeiture. Any changes in banking, insurance or other business services may also affect our ability to operate our business.

 

Employees

 

As of the date hereof, we have 2 employees who operate our company. Timothy Orr, our sole officer and director, works full-time on Company operations.

 

DESCRIPTION OF PROPERTIES

 

Our executive offices are located at 2701 Northgate Lane, Suite 1G, Carson City, Nevada 89706. Tim Orr holds the lease, which is month-to-month, under his personal name.

 

We do not own any real estate or other physical properties.

 

ITEM 1A. RISK FACTORS

 

As a “smaller reporting company,” as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information called for by this Item.

 

ITEM 1B. UNRESOLVED STAFF COMMENTS

 

None.

 

ITEM 2. PROPERTIES

 

Our current business address is 2701 Northgate Lane, Suite 1G, Carson City, Nevada 89706. We believe that these spaces are adequate for our current needs. Our telephone number is (800) 570-0438.

 

ITEM 3. LEGAL PROCEEDINGS

 

We are not currently involved in any legal proceedings and we are not aware of any pending or potential legal actions.

 

ITEM 4. MINE SAFETY DISCLOSURES.

 

None.

 

 
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PART II

 

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

 

Since September 7, 2018, our shares of common stock have been quoted on the OTCQB tier of the OTC Markets Group, Inc. (the “OTC Markets Group”) under the stock symbol “GMVP.” From December 18, 2017 until September 6, 2018, our shares of common stock were quoted on the OTCPink tier of the OTC Markets Group. From February 6, 2017, until December 17, 2018, our shares of common stock were quoted on the OTCPink tier of the OTC Markets under the stock symbol “MYYZ”. The following table shows the reported high and low closing bid prices per share for our common stock based on information provided by the OTC Markets Group. The over-the-counter market quotations set forth for our common stock reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

 

 

 

Common Stock

Bid Price

 

Financial Quarter Ended

 

High ($)

 

 

Low ($)

 

 

 

 

 

 

 

 

November 30, 2019

 

 

0.01

 

 

 

0.01

 

August 31, 2019

 

 

0.02

 

 

 

0.01

 

May 31, 2019

 

 

0.04

 

 

 

0.03

 

February 28, 2019

 

 

0.25

 

 

 

0.07

 

November 30, 2018

 

 

0.13

 

 

 

0.05

 

August 31, 2018

 

 

0.30

 

 

 

0.06

 

May 31, 2018

 

 

0.85

 

 

 

0.11

 

February 28, 2018

 

 

5.00

 

 

 

0.25

 

 

HOLDERS

 

As of December 8, 2019, the Company had approximately 135,509,220 shares of common stock issued and outstanding held by approximately 85 holders of record.

 

During the year ended August 31, 2018, the Company also has issued and outstanding 8,480,000 shares of Series A Preferred Stock, held collectively by two holders of record. Each share of Series A Preferred Stock has a dividend of 5% per annum, has a liquidation preference senior to all other capital stock of the Company, and is convertible at any time, at the election of the holder of the Series A Preferred Stock, into one share of common stock at a conversion price of $0.125 per share, which conversion price is subject to adjustment for a term of two (2) years for stock splits, stock dividends, combinations, or similar events, and has full ratchet anti-dilution protection. Additionally, each holder of Series A Preferred Stock and has voting rights equal to that number of shares of common stock into which such holder’s shares of Series A Preferred Stock would be convertible on the record date for the vote or consent of stockholders, and shall otherwise have voting rights and powers equal to the voting rights and powers of the common stock. The Company has a right to purchase any outstanding shares of Series A Preferred Stock, with 20 days’ notice, at (i) a 115% premium before 180 days after the closing, and (ii) a 125% premium following the 181st day after closing. The holders of shares of Series A Preferred Stock have a right to participate in 50% of all financings of the Company, except for certain exempt offers and sales, for a period of two (2) years following the closing or if there are no shares of Series A Preferred Stock outstanding.

 

The Company also has issued and outstanding two warrants to purchase 8,480,000 shares of common stock, held collectively by two holders of record. Each warrant is convertible into one share of common stock at a conversion price of $0.165 per share, for a term of three years, and contains a cashless exercise feature, if such warrant not registered in a registration statement. The conversion price of $0.165 is subject to adjustment for (i) stock splits, stock dividends, combinations, or similar events and (ii) full ratchet anti-dilution protection. The Company may call the warrants if shares of the Company’s common stock trades at a volume weighted average price of not less than $0.30 for ten (10) consecutive trading days and are covered by an effective registration statement, where the average daily volume of the common stock for the previous ten trading days has been greater than $75,000.

 

 
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DIVIDENDS

 

Historically, we have not paid any dividends to the holders of our common stock and we do not expect to pay any such dividends in the foreseeable future as we expect to retain our future earnings for use in the operation and expansion of our business. The Company's shares of Series A Preferred Stock has a dividend which has been accrued as a dividend payable in the amount of $23,695.

 

TRANSFER AGENT

 

Our transfer agent is Empire Stock Transfer, Inc. (“Empire Stock Transfer”), whose address 1859 Whitney Mesa Dr., Henderson, Nevada 89014. Empire Stock Transfer’s telephone number is (702) 818-5898.

 

RECENT SALES OF UNREGISTERED SECURITIES

 

None.

 

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

 

We have not established any compensation plans under which equity securities are authorized for issuance.

 

PURCHASES OF EQUITY SECURITIES BY THE REGISTRANT AND AFFILIATED PURCHASERS

 

None.

 

ITEM 6. SELECTED FINANCIAL DATA

 

As a “smaller reporting company,” as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information called for by this Item.

 

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

OVERVIEW

 

The Company was incorporated in the State of Nevada on July 31, 2014 and established a fiscal year end of August 31.

 

 
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CRITICAL ACCOUNTING POLICIES

  

Basis of Presentation

 

This summary of accounting policies for Gridiron is presented to assist in understanding the Company’s financial statements. The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting) and have been consistently applied in the preparation of the financial statements.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates. Estimates are used when accounting for fair value calculations related to embedded conversion features of outstanding convertible notes payable.

 

Cash

 

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company had $18,975 and $774,468 of cash and cash equivalents as of August 31, 2019 and 2018. As of August 31, 2018, the Company held cash of $524,468 with one financial institution in excess of the FDIC insured limit of $250,000.

 

Revenue recognition

 

The Company recognizes revenue under ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASC 606”).   The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer. 

 

Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

 

 The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery.

 

 
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Fair Value of Financial Instruments

 

Fair value of certain of the Company’s financial instruments including cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.

 

Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk.

 

Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:

 

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

 

Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and

 

Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values.

 

Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.

 

As discussed in Note 9 – Derivative Liability, the Company valued its derivative liability using Level 3 inputs as of August 31, 2019 and August 31, 2018. The Company did not identify any additional assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 825-10 as of August 31, 2019 and 2018.

 

Derivative Liabilities

 

The Company generally does not use derivative financial instruments to hedge exposures to cash flow or market risks. However, certain other financial instruments, such as warrants and embedded conversion features on the convertible debt, are classified as derivative liabilities due to protection provisions within the agreements. Convertible notes payable are initially recorded at fair value using the Monte Carlo model and subsequently adjusted to fair value at the close of each reporting period. The preferred stock warrants are initially recorded at fair value using the Black Scholes model and subsequently adjusted to fair value at the close of each reporting period. The Company accounts for derivative instruments and debt instruments in accordance with the interpretive guidance of ASC 815, ASU 2017-11, and associated pronouncements related to the classification and measurement of warrants and instruments with conversion features.

 

Income Taxes

 

Income taxes are accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Use of net operating loss carry forwards for income tax purposes may be limited by Internal Revenue Code section 382 if a change of ownership occurs.

 

Principals of Consolidation

 

The consolidated financial statements represent the results of Gridiron BioNutrients, Inc, its wholly owned subsidiary, Gridiron Ventures and the assets, processes, and results therefrom. All intercompany transactions and balances have been eliminated. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America.

 

 
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Property and Equipment

 

Property and equipment are carried at cost. Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.

 

Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery system for federal income tax purposes. The estimated useful lives of depreciable assets are:

 

 

Estimated Useful Lives

Computer and other equipment

 

3 years

Vehicle

 

5 years

 

The Company’s property and equipment consisted of the following as of August 31, 2019 and 2018:

 

 

 

August 31,

2019

 

 

August 31,

2018

 

Computer Equipment

 

$2,467

 

 

$2,466

 

Vehicle

 

 

2,977

 

 

 

-

 

Other

 

 

3,587

 

 

 

-

 

Accumulated depreciation

 

 

(2,446)

 

 

(529)

Net book value

 

$6,585

 

 

$1,937

 

 

Depreciation expense for the years ended August 31, 2019 and 2018 was $1,916 and $530, respectively.

 

Inventories

 

Inventories consist of raw materials, packing materials, bottled water and concentrates, capsules, gummy products, drops and other items and are stated at the lower of cost or net realizable value using the first‑in, first‑out method. The Company periodically assesses the recoverability of its inventory and reduces the carrying value of the inventory when items are determined to be obsolete, defective or in excess of forecasted sales requirements. Inventory write‑downs for excess, defective and obsolete inventory are recorded as a cost of revenue. During August 2019, the Company wrote-off $40,136 of expired inventory, The Company did not have any other write downs of inventory during the years ended August 31, 2019 and 2018. Inventory balances were $203,563 and $53,110 as of August 31, 2019 and 2018, respectively.

 

A summary of the Company’s inventory as of August 31, 2019 and 2018 is as follows:

 

Type

 

August 31,

2019

 

 

August 31,

2018

 

Raw Materials

 

$19,477

 

 

$33,010

 

Packaging Materials

 

 

6,558

 

 

 

1,860

 

Gridrion Water & Concentrates

 

 

126,773

 

 

 

10,566

 

Gridiron Capsules

 

 

32,044

 

 

 

1,233

 

Gummy and Other Products

 

 

18,710

 

 

 

6,440

 

 

 

 

 

 

 

 

 

 

Total Inventory

 

$203,563

 

 

$53,110

 

 

Basic Income (Loss) Per Share

 

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. The conversion of preferred shares, warrants and convertible debt to common shares could potentially bring the number of common shares to a total of approximately 194,000,000. The preferred conversion and warrants would account for approximately 51,394,000 additional shares, the convertible debt would account for approximately 7,096,900 additions shares and an additional 228,571 that have not been issued yet, along with the 135,280,651 outstanding at August 31, 2019. The Company's convertible notes and warrants are excluded from the computation of diluted earnings per share as they are anti-dilutive due to the Company's losses for the years ended August 31, 2019 and 2018. 

 

Dividends

 

As discussed in Note 5 – Stockholders Equity (Deficit), during the year ended August 31, 2018, the Company issued preferred stock which accrues dividends at a rate of 5% annually. There was $23,695 and $4,192 of dividends payable at August 31, 2019 and August 31, 2018, respectively. The dividends have not been declared and are accrued in the accompanying consolidated balance sheets as a result of a contractual obligation in the Company’s preferred stock offering.

 

Advertising Costs

 

The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred advertising costs totaling $94,443 and $61,812 during the years ended August 31, 2019 and 2018, respectively.

 

 
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Stock-Based Compensation

 

The Company accounts for share-based compensation in accordance with the fair value recognition provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 718 and No. 505. After December 15, 2018, the scope of Topic 718, Compensation—Stock Compensation, was expanded to include share-based payments issued to nonemployees for goods and services. The Company issues restricted stock to employees and consultants for their services. Cost for these transactions are measured at the fair value of the equity instruments issued at the date of grant. These shares are considered fully vested and the fair market value is recognized as expense in the period granted. The Company recognized consulting expenses and a corresponding increase to additional paid-in-capital related to stock issued for services. For agreements requiring future services, the consulting expense is to be recognized ratably over the requisite service period. 

 

There was $18,775 and $-0- of stock-based compensation during the years ended August 31, 2019 and 2018, respectively.

 

Related Parties

 

The registrant follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the Related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the registrant; (e) management of the registrant; (f) other parties with which the registrant may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

Recently Issued Accounting Standards

 

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, ”Disclosure Update and Simplification,” amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. This analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective as of November 5, 2018. The adoption of this final rule did not have a material impact on the financial statements.

 

In June 2018, the FASB issued ASU 2018-07, ”Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from non-employees. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company elected to early-adopt this standard in the current period; the adoption of this standard did not impact the financial statements.

 

In November 2016, the FASB issued ASU 2016-18, ”Statement of Cash Flows (Topic 230): Restricted Cash,” which provides amendments to current guidance to address the classifications and presentation of changes in restricted cash in the statement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017. The Company adopted the standard effective September 1, 2018; the adoption of this standard did not have a material impact on the financial statements.

 

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The amendments in this update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the standard effective September 1, 2018; the adoption of this standard did not have a material impact on the financial statements.

 

 
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In June 2016, the FASB issued ASU 2016-13, ”Financial Instruments – Credit Losses (Topic 326)” which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

 

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which supersedes the guidance in ASC 840, ”Leases.” The purpose of the new standard is to improve transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Although the standard initially required the modified retrospective approach for adoption, in July 2018, the FASB issued ASU 2018-18, allowing companies to initially apply the new lease requirements at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Early adoption is permitted. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

 

In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement Reporting, Comprehensive Income (Topic 220). Effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this guidance by the Company is not expected to have a material impact on our condensed financial statements and related disclosures.

 

Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.

 

Accounts Receivable

 

Accounts receivable balances are established for amounts owed to the Company from its customers from the sale of products. The Company closely monitors the collectability of outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts. There were $-0- and $428 outstanding accounts receivable as of August 31, 2019 and 2018, respectively.

 

Trademark

 

During the period ended August 31, 2017, a related party incurred total costs of $2,800 to acquire five trademarks on behalf of the Company. Trademark costs are capitalized as incurred to the extent the Company expects the costs incurred to result in a trademark being awarded. The trademarks are deemed to have an indefinite life and are reviewed for impairment loss considerations annually. At August 31, 2019, two of the trademarks for $1,120 were deemed impaired and were written off in the accompanying statement of operations. As of August 31, 2019, and 2018, respectively, the Company had trademarks totaling $1,680 and $2,800, respectively.

 

 

 
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RESULTS OF OPERATIONS

 

For the Fiscal Years Ended August 31, 2019 and 2018

 

For the year ended August 31, 2019, we generated $79,246 in revenues, and the cost of revenues was $129,337. For the year ended August 31, 2018, we generated $16,771 in revenues, and the cost of revenues was $81,025.

 

For the year ended August 31, 2019, we incurred operating expenses of $617,896, consisting of advertising expense of $94,443, consulting fees of $69,592, general and administrative expenses of $163,129, professional fees of $270,837, stock compensation expense of $18,775, and impairment expense of $1,120.

 

For the year ended August 31, 2018, we incurred operating expenses of $371,864, consisting of advertising expense of $61,812, consulting fees of $72,349, general and administrative expenses of $103,881, and professional fees of $133,822.

 

Expenses increase approximately 66% from August 31, 2018 to August 31, 2019, which was due primarily to an increase of an approximately 53% in advertising expenses, an approximately 53% increase in general and administrative expenses, and an approximately 102% increase in professional fees and.

 

We incurred net losses of $170,067 and $975,524 for the years ended August 31, 2019 and 2018, respectively. The following table provides selected financial data about our company at August 31, 2019 and 2018.

 

Balance Sheet Data

 

August 31,

2019

 

 

August 31,

2018

 

Cash and Cash Equivalents

 

$18,975

 

 

$774,468

 

Total Assets

 

$256,414

 

 

$862,743

 

Total Liabilities

 

$224,053

 

 

$686,868

 

Shareholders’ Equity

 

$32,361

 

 

$175,875

 

 

GOING CONCERN

 

To date the Company only generated nominal revenues and consequently has incurred recurring losses from operations. We do not have sufficient funds to support our daily operations for the next 12 months. The ability of the Company to continue as a going concern is dependent on raising capital to fund our business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern.

 

The Company is attempting to commence operations and generate sufficient revenue; however, the Company’s cash position may not be sufficient to support its daily operations. While the Company believes in the viability of its strategy to commence operations and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon its ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering.

 

 
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LIQUIDITY AND CAPITAL RESOURCES

 

At August 31, 2019, we had a cash balance of $18,975, total current liabilities of approximately $224,053. Such cash amount of $18,975 is not sufficient to continue our 12-month plan of operation. We will need to raise funds to continue our 12-month plan of operation and fund our ongoing operational expenses. Additional funding will likely come from equity financing from the sale of our common stock. If we are successful in completing equity financing, existing shareholders will experience dilution of their interest in our Company. We do not have any financing arranged and we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our 12-month plan of operation and ongoing operational expenses. In the absence of such financing, our business will likely fail. There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to continue our 12-month plan of operation and our business will fail.

 

PLAN OF OPERATION

 

We have only realized nominal revenues from our business. In the next 12 months, we plan to identify business to whom we can license our brand name.

 

OFF-BALANCE SHEET ARRANGEMENTS

 

We have no off-balance sheet arrangements.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a “smaller reporting company,” as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information called for by this Item.

 

 
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ITEM 8. FINANCIAL STATEMENTS

 

GRIDIRON BIONUTRIENTS, INC.

Financial Statements

August 31, 2019

 

Table of Contents

 

 

Page

 

 

 

 

 

Report of Independent Registered Accounting Firm

 

F-2

 

Consolidated Balance Sheets as of August 31, 2019 and 2018

 

F-3

 

 

 

 

Consolidated Statement of Operations for the Years Ended August 31, 2019 and 2018

 

 F-4

 

 

Consolidated Statement of Stockholders’ Equity (Deficit) for the Years Ended August 31, 2019 and 2018

 

F-5

 

Consolidated Statements of Cash Flows for the Year Ended August 31, 2019 and 2018

 

F-6

 

Notes to Consolidated Financial Statements

 

F-7 – F-15

  

 
F-1
 
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and Shareholders of Gridiron BioNutrients, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheets of Gridiron BioNutrients, Inc. (“the Company”) as of August 31, 2019 and 2018, and the related consolidated statements of operations, stockholders’ equity (deficit), and cash flows for each of the years in the two-year period ended August 31, 2019, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of August 31, 2019 and 2018, and the results of its operations and its cash flows for each of the years in the two-year period ended August 31, 2019, respectively, in conformity with accounting principles generally accepted in the United States of America.

 

Consideration of the Company’s Ability to Continue as a Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3, the Company has an accumulated deficit and net losses from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

   

 

Fruci & Associates II, PLLC

 

We have served as the Company’s auditor since 2017.

 

Spokane, Washington

December 17, 2019

  

 
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GRIDIRON BIONUTRIENTS, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

August 31,

2019

 

 

August 31,

2018

 

 

 

 

 

 

 

 

ASSETS

Current assets:

 

 

 

 

 

 

Cash

 

$18,975

 

 

$774,468

 

Accounts receivable

 

 

-

 

 

 

428

 

Inventory

 

 

203,563

 

 

 

53,110

 

Prepaid expenses

 

 

25,611

 

 

 

30,000

 

Total current assets

 

 

248,149

 

 

 

858,006

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

 

 

 

 

 

 

Equipment, net of accumulated depreciation of $2,446 and $529, respectively

 

 

6,585

 

 

 

1,937

 

Trademarks

 

 

1,680

 

 

 

2,800

 

Total other assets

 

 

8,265

 

 

 

4,737

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$256,414

 

 

$862,743

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$84,428

 

 

$95,287

 

Derivative liability

 

 

39,381

 

 

 

537,889

 

Note payable, current portion

 

 

49,500

 

 

 

49,500

 

Note payable, convertible net of discount

 

 

27,049

 

 

 

-

 

Dividends payable

 

 

23,695

 

 

 

4,192

 

Total current liabilities

 

 

224,053

 

 

 

686,868

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

-

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock subscribed

 

 

160,000

 

 

 

160,000

 

Preferred stock, $0.001 par value; 25,000,000 shares authorized;

 

 

 

 

 

 

 

 

8,480,000 and 8,480,000 issued and outstanding as of

 

 

 

 

 

 

 

 

August 31, 2019 and August 31, 2018, respectively

 

 

8,480

 

 

 

8,480

 

Common stock, $0.001 par value; 200,000,000 shares authorized;

 

 

 

 

 

 

 

 

135,280,651 and 132,637,500 shares issued and outstanding as of

 

 

 

 

 

 

 

 

August 31, 2019 and August 31, 2018, respectively

 

 

135,281

 

 

 

132,638

 

Additional paid in capital

 

 

942,159

 

 

 

867,949

 

Accumulated deficit

 

 

(1,213,559)

 

 

(993,192)

Total stockholders' equity

 

 

32,361

 

 

 

175,875

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' equity

 

$256,414

 

 

$862,743

 

 

The accompanying notes are an integral part of these financial statements.

 

 
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GRIDIRON BIONUTRIENTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

For the Years Ended

 

 

 

August 31,

2019

 

 

August 31,

2018

 

 

 

 

 

 

 

 

Revenue

 

$79,246

 

 

$

16,771

 

Cost of Revenue

 

 

129,337

 

 

 

81,025

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

(50,091)

 

 

(64,254)

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Advertising

 

94,443

 

 

61,812

 

Consulting fees

 

 

69,592

 

 

 

72,349

 

General and administrative

 

 

163,129

 

 

 

103,881

 

Professional fees

 

 

270,837

 

 

 

133,822

 

Stock compensation expense

 

 

18,775

 

 

 

-

 

Impairment Expense

 

 

1,120

 

 

 

-

 

Total operating expenses

 

 

617,896

 

 

 

371,864

 

 

 

 

 

 

 

 

 

 

Net operating income (loss)

 

 

(667,987)

 

 

(436,118)

 

 

 

 

 

 

 

 

 

Other (income) expense:

 

 

 

 

 

 

 

 

Interest expense

 

 

587

 

 

 

1,517

 

Gain on change in fair value of derivative liability for preferred warrants and convertible note

 

 

(521,784)

 

 

(136,123)

Debt/Equity issuance costs

 

 

23,277

 

 

 

674,012

 

Total Other income (expense)

 

 

(497,920)

 

 

539,406

 

 

 

 

 

 

 

 

 

 

Loss before provision for taxes

 

 

(170,067)

 

 

(975,524)

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$(170,067)

 

$(975,524)

 

 

 

 

 

 

 

 

 

Basic and diluted income (loss) per share

 

$(0.00)

 

$(0.01)

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic and diluted

 

 

134,300,278

 

 

 

125,158,048

 

 

The accompanying notes are an integral part of these financial statements.

 

 
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GRIDIRON BIONUTRIENTS, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Common

Stock to be

 

 

Accumulated

 

 

Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Issued

 

 

Deficit

 

 

Equity

 

Balance at August 31, 2017

 

 

-

 

 

$-

 

 

 

62,637,500

 

 

$62,638

 

 

$(62,438)

 

$-

 

 

$(13,476)

 

$(13,276)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock for reverse merger

 

 

-

 

 

 

-

 

 

 

70,000,000

 

 

 

70,000

 

 

 

(143,040)

 

 

-

 

 

 

 

 

 

 

(73,040)

Common stock subscribed for cash

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

160,000

 

 

 

 

 

 

 

160,000

 

Forgiveness of related party payable

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

75,907

 

 

 

-

 

 

 

 

 

 

 

75,907

 

Issuance of preferred stock for cash

 

 

8,480,000

 

 

 

8,480

 

 

 

-

 

 

 

-

 

 

 

997,520

 

 

 

-

 

 

 

 

 

 

 

1,006,000

 

Dividends on preferred stock accrued

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,192)

 

 

(4,192)

Net loss, period ended August 31, 2018

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(975,524)

 

 

(975,524)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at August 31, 2018

 

 

8,480,000

 

 

$8,480

 

 

 

132,637,500

 

 

$132,638

 

 

$867,949

 

 

$160,000

 

 

$(993,192)

 

$175,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends on preferred stock accrued

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(50,300)

 

 

(50,300)

Stock compensation issued

 

 

-

 

 

 

-

 

 

 

450,000

 

 

 

450

 

 

 

18,325

 

 

 

-

 

 

 

-

 

 

 

18,775

 

Conversion of stock from dividends payable

 

 

-

 

 

 

-

 

 

 

2,193,151

 

 

 

2,193

 

 

 

55,885

 

 

 

-

 

 

 

-

 

 

 

58,078

 

Net loss, period ended August 31, 2019

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(170,067)

 

 

(170,067)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at August 31, 2019

 

 

8,480,000

 

 

$8,480

 

 

 

135,280,651

 

 

$135,281

 

 

$942,159

 

 

$160,000

 

 

$(1,213,559)

 

$32,361

 

 

The accompanying notes are an integral part of these financial statements.

 

 
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GRIDIRON BIONUTRIENTS, INC.

Statements of Cash Flow

 

 

 

 

 

 

 

 

 

For the Years Ended

 

 

 

August 31,

2019

 

 

 August 31,

2018

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income (loss)

 

$(170,067)

 

$(975,524)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

1,916

 

 

 

530

 

Debt/stock based issue costs

 

 

23,276

 

 

 

674,012

 

Gain on change in fair value of derivative liability

 

 

(521,784)

 

 

(136,123)

Penalties assessed on unpaid dividends

 

 

27,281

 

 

 

-

 

Stock based compensation

 

 

18,775

 

 

 

-

 

Debt discount interest

 

 

49

 

 

 

-

 

Impairment expense

 

 

1,120

 

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

428

 

 

 

(428)

Inventory

 

 

(150,453)

 

 

(53,110)

Prepaid expenses

 

 

4,389

 

 

 

(30,000)

Accounts payable and accrued expenses

 

 

(10,859)

 

 

94,182

 

Related party payable

 

 

-

 

 

 

(16,101)

Net cash used in operating activities

 

 

(775,929)

 

 

(442,562)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of equipment

 

 

(6,564)

 

 

(2,467)

Net cash used in investing activities

 

 

(6,564)

 

 

(2,467)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from notes payable

 

 

-

 

 

 

49,500

 

Proceeds from convertible notes payable

 

 

27,000

 

 

 

-

 

Proceeds from common stock subscriptions

 

 

-

 

 

 

160,000

 

Proceeds from the sale of preferred stock and warrants

 

 

-

 

 

 

1,006,000

 

Cash contributed in merger

 

 

-

 

 

 

3,972

 

Net cash provided by financing activities

 

 

27,000

 

 

 

1,219,472

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

(755,493)

 

 

774,443

 

Cash - beginning of the year

 

 

774,468

 

 

 

25

 

Cash - end of the year

 

$18,975

 

 

$774,468

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures:

 

 

 

 

 

 

 

 

Interest paid

 

$-

 

 

$-

 

Income taxes

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

Non-cash transactions:

 

 

 

 

 

 

 

 

Preferred stock dividends declared

 

$

 50,300

 

 

$

 4,192

 

Discount on convertible note payable

 

$

 3,000

 

 

 -

 

Accounts payable and accrued expenses assumed in reverse merger

 

$-

 

 

$1,105

 

Forgiveness of related party payable

 

$-

 

 

$75,907

 

Common shares issued in reverse merger at par value

 

$-

 

 

$75,907

 

Trademark costs paid by related party

 

$-

 

 

$70,000

 

  

The accompanying notes are an integral part of these financial statements.

 

 
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Table of Contents

 

GRIDIRON BIONUTRIENTS, INC.

Notes to Consolidated Financial Statements

August 31, 2019

 

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Gridiron BioNutrients, Inc. (the “Company” or “Gridiron”) was formed under the laws of the state of Nevada on July 20, 2017 to develop and distribute a retail line of health water infused with probiotics and minerals. The Company has elected an August 31st year end.

 

Acquisition and Reverse Merger

 

On October 10, 2017, the Company completed a reverse merger with My Cloudz, Inc. (“My Cloudz”) pursuant to which the Company merged into My Cloudz on October 10, 2017. Under the terms of the merger, the Company shareholders received 70,000,000 common shares of My Cloudz common stock such that the Company shareholders received approximately 57% of the total common shares issued and outstanding following the merger. Due to the nominal assets and limited operations of My Cloudz prior to the merger, the transaction was accorded reverse recapitalization accounting treatment under the provision of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 805 whereby the Company became the accounting acquirer (legal acquiree) and My Cloudz was treated as the accounting acquiree (legal acquirer). The historical financial records of the Company are those of the accounting acquirer (GridIron) adjusted to reflect the legal capital of the accounting acquiree (My Cloudz). As the transaction was treated as a recapitalization, no intangibles, including goodwill, were recognized. Concurrent with the effective date of the reverse recapitalization transaction, the Company adopted the fiscal year end of the accounting acquirer of August 31.

 

At the date of acquisition, My Cloudz had $3,972 of cash, $1,105 of accounts payable and a related party payable of $75,907. Book values for all assets acquired and liabilities assumed equaled fair values as of the date of acquisition.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

This summary of accounting policies for Gridiron is presented to assist in understanding the Company’s financial statements. The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting) and have been consistently applied in the preparation of the financial statements.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates. Estimates are used when accounting for fair value calculations related to embedded conversion features of outstanding convertible notes payable.

 

Cash

 

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company had $18,975 and $774,468 of cash and cash equivalents as of August 31, 2019 and 2018. As of August 31, 2018, the Company held cash of $524,468 with one financial institution in excess of the FDIC insured limit of $250,000.

 

Revenue recognition

 

The Company recognizes revenue under ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASC 606”).   The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer. 

   

Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

 

 The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery.

 

 
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Fair Value of Financial Instruments

 

Fair value of certain of the Company’s financial instruments including cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.

 

Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk.

 

Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:

 

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

 

Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and

 

Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values.

 

Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.

 

As discussed in Note 9 – Derivative Liability, the Company valued its derivative liability using Level 3 inputs as of August 31, 2019 and August 31, 2018. The Company did not identify any additional assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 825-10 as of August 31, 2019 and 2018.

 

Derivative Liabilities

 

The Company generally does not use derivative financial instruments to hedge exposures to cash flow or market risks. However, certain other financial instruments, such as warrants and embedded conversion features on the convertible debt, are classified as derivative liabilities due to protection provisions within the agreements. Convertible notes payable are initially recorded at fair value using the Monte Carlo model and subsequently adjusted to fair value at the close of each reporting period. The preferred stock warrants are initially recorded at fair value using the Black Scholes model and subsequently adjusted to fair value at the close of each reporting period. The Company accounts for derivative instruments and debt instruments in accordance with the interpretive guidance of ASC 815, ASU 2017-11, and associated pronouncements related to the classification and measurement of warrants and instruments with conversion features.

 

Income Taxes

 

Income taxes are accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Use of net operating loss carry forwards for income tax purposes may be limited by Internal Revenue Code section 382 if a change of ownership occurs.

 

Principals of Consolidation

 

The consolidated financial statements represent the results of Gridiron BioNutrients, Inc, its wholly owned subsidiary, Gridiron Ventures and the assets, processes, and results therefrom. All intercompany transactions and balances have been eliminated. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America.

 

 
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Property and Equipment

 

Property and equipment are carried at cost. Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.

 

Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery system for federal income tax purposes. The estimated useful lives of depreciable assets are:

 

 

Estimated Useful Lives

Computer and other equipment

 

3 years

Vehicle

 

5 years

 

The Company’s property and equipment consisted of the following as of August 31, 2019 and 2018:

 

 

 

August 31,

2019

 

 

August 31,

2018

 

Computer Equipment

 

$2,467

 

 

$2,466

 

Vehicle

 

 

2,977

 

 

 

-

 

Other

 

 

3,587

 

 

 

-

 

Accumulated depreciation

 

 

(2,446)

 

 

(529)

Net book value

 

$6,585

 

 

$1,937

 

 

Depreciation expense for the years ended August 31, 2019 and 2018 was $1,916 and $530, respectively.

 

Inventories

 

Inventories consist of raw materials, packing materials, bottled water and concentrates, capsules, gummy products, drops and other items and are stated at the lower of cost or net realizable value using the first‑in, first‑out method. The Company periodically assesses the recoverability of its inventory and reduces the carrying value of the inventory when items are determined to be obsolete, defective or in excess of forecasted sales requirements. Inventory write‑downs for excess, defective and obsolete inventory are recorded as a cost of revenue. During August 2019, the Company wrote-off $40,136 of expired inventory, The Company did not have any other write downs of inventory during the years ended August 31, 2019 and 2018. Inventory balances were $203,563 and $53,110 as of August 31, 2019 and 2018, respectively.

 

A summary of the Company’s inventory as of August 31, 2019 and 2018 is as follows:

 

Type

 

August 31,

2019

 

 

August 31,

2018

 

Raw Materials

 

$19,477

 

 

$33,010

 

Packaging Materials

 

 

6,558

 

 

 

1,860

 

Gridrion Water & Concentrates

 

 

126,773

 

 

 

10,566

 

Gridiron Capsules

 

 

32,044

 

 

 

1,233

 

Gummy and Other Products

 

 

18,710

 

 

 

6,440

 

 

 

 

 

 

 

 

 

 

Total Inventory

 

$203,563

 

 

$53,110

 

   

Basic Income (Loss) Per Share

 

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. The conversion of preferred shares, warrants and convertible debt to common shares could potentially bring the number of common shares to a total of approximately 194,000,000. The preferred conversion and warrants would account for approximately 51,394,000 additional shares, the convertible debt would account for approximately 7,096,900 additions shares and an additional 228,571 that have not been issued yet, along with the 135,280,651 outstanding at August 31, 2019. The Company's convertible notes and warrants are excluded from the computation of diluted earnings per share as they are anti-dilutive due to the Company's losses for the years ended August 31, 2019 and 2018. 

 

Dividends

 

As discussed in Note 5 – Stockholders Equity (Deficit), during the year ended August 31, 2018, the Company issued preferred stock which accrues dividends at a rate of 5% annually. There was $23,695 and $4,192 of dividends payable at August 31, 2019 and August 31, 2018, respectively. The dividends have not been declared and are accrued in the accompanying consolidated balance sheets as a result of a contractual obligation in the Company’s preferred stock offering.

 

Advertising Costs

 

The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred advertising costs totaling $94,443 and $61,812 during the years ended August 31, 2019 and 2018, respectively.

 

 
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Stock-Based Compensation

 

The Company accounts for share-based compensation in accordance with the fair value recognition provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 718 and No. 505. After December 15, 2018, the scope of Topic 718, Compensation—Stock Compensation, was expanded to include share-based payments issued to nonemployees for goods and services. The Company issues restricted stock to employees and consultants for their services. Cost for these transactions are measured at the fair value of the equity instruments issued at the date of grant. These shares are considered fully vested and the fair market value is recognized as expense in the period granted. The Company recognized consulting expenses and a corresponding increase to additional paid-in-capital related to stock issued for services. For agreements requiring future services, the consulting expense is to be recognized ratably over the requisite service period. 

 

There was $18,775 and $-0- of stock-based compensation during the years ended August 31, 2019 and 2018, respectively.

 

Related Parties

 

The registrant follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the Related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the registrant; (e) management of the registrant; (f) other parties with which the registrant may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

Recently Issued Accounting Standards

 

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, ”Disclosure Update and Simplification,” amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. This analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective as of November 5, 2018. The adoption of this final rule did not have a material impact on the financial statements.

 

In June 2018, the FASB issued ASU 2018-07, ”Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from non-employees. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company elected to early-adopt this standard in the current period; the adoption of this standard did not impact the financial statements.

 

In November 2016, the FASB issued ASU 2016-18, ”Statement of Cash Flows (Topic 230): Restricted Cash,” which provides amendments to current guidance to address the classifications and presentation of changes in restricted cash in the statement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017. The Company adopted the standard effective September 1, 2018; the adoption of this standard did not have a material impact on the financial statements.

 

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The amendments in this update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the standard effective September 1, 2018; the adoption of this standard did not have a material impact on the financial statements.

 

 
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In June 2016, the FASB issued ASU 2016-13, ”Financial Instruments – Credit Losses (Topic 326)” which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

 

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which supersedes the guidance in ASC 840, ”Leases.” The purpose of the new standard is to improve transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Although the standard initially required the modified retrospective approach for adoption, in July 2018, the FASB issued ASU 2018-18, allowing companies to initially apply the new lease requirements at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Early adoption is permitted. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

 

In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement Reporting, Comprehensive Income (Topic 220). Effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this guidance by the Company is not expected to have a material impact on our condensed financial statements and related disclosures.

 

Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.

 

Accounts Receivable

 

Accounts receivable balances are established for amounts owed to the Company from its customers from the sale of products. The Company closely monitors the collectability of outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts. There were $-0- and $428 outstanding accounts receivable as of August 31, 2019 and 2018, respectively.

 

Trademark

 

During the period ended August 31, 2017, a related party incurred total costs of $2,800 to acquire five trademarks on behalf of the Company. Trademark costs are capitalized as incurred to the extent the Company expects the costs incurred to result in a trademark being awarded. The trademarks are deemed to have an indefinite life and are reviewed for impairment loss considerations annually. At August 31, 2019, two of the trademarks for $1,120 were deemed impaired and were written off in the accompanying statement of operations. As of August 31, 2019, and 2018, respectively, the Company had trademarks totaling $1,680 and $2,800, respectively.

 

NOTE 3 – GOING CONCERN

 

The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company had a net loss of $170,067 for the year ended August 31, 2019. The Company has working capital deficit of $24,096 and an accumulated deficit of $1,213,559 as of August 31, 2019. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The ability of the Company to fully commence its operations is dependent upon, among other things, obtaining additional financing to continue operations, and execution of its business plan. In response to these concerns, management plans to fund operations through additional debt and equity financing. Debt instruments may be convertible or non-convertible and will vary based on the Company’s needs and financing options available at such times. There can be no assurance that management’s plan will be successful.

 

 
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NOTE 4 – NOTES PAYABLES

 

Short-Term Notes Payable

 

As of August 31, 2019, and 2018, the Company had two notes payable with a principal balance of $49,500, owed to two separate noteholders. Each note payable is unsecured with one bearing interest at 5% and the other at 0% respectively. The Company had an outstanding accrued interest balance of $1,014 and $475 as of August 31, 2019 and 2018, respectively, which has been included in the consolidated balance sheets under accounts payable and accrued expenses.

 

Convertible Notes Payable

 

On August 27, 2019, the Company signed a convertible promissory note with an investor. The $30,000 note was issued with an original issue discount of $3,000 and bears interest at 10% per year. The note principal and interest are convertible into shares of common stock at a 25% discount to the lowest traded price of the Company’s common stock during the 10 prior trading days including the day the notice of conversion is received by the Company. The note matures on February 27, 2020. The note has a prepayment penalty of 110% of the principal and interest outstanding if repaid before 180 days from issuance. After February 27, 2020, the payment premium increases to 125% of the principal and interest outstanding and if in default, the payment premium increases to 140% of the principal and interest outstanding. The original issue discount is amortized through the term of the note. The unpaid balance including accrued interest was $30,033 at August 31, 2019. At August 31, 2019, the outstanding principle balances, net of original issue debt discount of $2,951 was $27,049.

 

The conversion features meets the definition of a derivative liability instrument because the conversion rate is variable and therefore does not meet the “fixed-for-fixed” criteria outlined in ASC 815-40-15. As a result, the conversion features of the notes are recorded as a derivative liability at fair value and marked-to-market each period with the changes in fair value each period charged or credited to other income (expense). See Note 9 - Derivative Liability, for a further discussion.

 

The Company recorded interest expense on the original issue debt discount of $49 for the year ended August 31, 2019, in the accompanying consolidated statements of operations.

 

NOTE 5 – RELATED PARTY TRANSACTIONS

 

As at August 31, 2019 and 2018, the Company owed $38,449 and -0-, respectively to its President and Director. The balance due is recorded in accounts payable in the accompanying consolidated balance sheets.

 

NOTE 6 – STOCKHOLDERS’ EQUITY

 

Preferred Stock

 

On July 16, 2018, the Board of Directors and one (1) stockholder adopted and approved a resolution to affect an amendment to our Articles of Incorporation to authorize the creation of 5,000,000 shares, designated as our Preferred Stock. On July 16, 2018, the Company filed a Certificate of Amendment to its Articles of Incorporation creating 5,000,000 shares of preferred stock.

 

On July 30, 2018, the Board of Directors of the Company authorized the designation of 9,000,000 shares of Series A Preferred Stock. On July 31, 2018, the Company filed a Certificate of Designation with the Secretary of State of the State of Nevada, creating 9,000,000 shares of Series A Preferred Stock.

 

On August 1, 2018, the Board of Directors and one (1) stockholder adopted and approved a resolution to affect an amendment to our Articles of Incorporation to authorize the creation of 25,000,000 shares, designated as our Preferred Stock. On August 1, 2018, the Company filed a Certificate of Amendment to its Articles of Incorporation creating 25,000,000 shares of preferred stock.

 

The preferred stock accrues dividends at a rate of 5% annually, are convertible to common stock at a rate of $0.125 per share at the option of the holder. Further, the preferred stock is redeemable by the Company at a premium during the first 180 days after issuance and another premium after the 180th day from issuance.

 

During the year ended August 31, 2018, the Company issued a total of 8,480,000 of preferred stock and 8,480,000 of warrants for total cash proceeds of $1,006,000.

 

There were 8,480,000 preferred shares issued and outstanding as of August 31, 2019 and 2018.

 

 
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Common Stock

 

The Company is authorized to issue up to 200,000,000 shares of $0.001 par value common stock.

 

During the year ended August 31, 2018, the Company issued a total of 70,000,000 restricted shares of the Company’s common stock to complete its acquisition and reverse merger as discussed in Note 1 – Organization and Description of Business.

 

On January 30, 2019, the Company entered into a consulting agreement whereby it issued a total of 100,000 restricted shares of the Company’s common stock in exchange for advisory services. The shares were issued on April 5, 2019 and valued at $.0321 per share or $3,210.

 

On February 7, 2019, the Company entered into a consulting agreement whereby it issued a total of 125,000 restricted shares of the Company’s common stock in exchange for business development services. The shares were issued on April 5, 2019 and valued at $.0458 per share or $5,725.

 

On February 7, 2019, the Company entered into a consulting agreement whereby it issued a total of 75,000 restricted shares of the Company’s common stock in exchange for business development services. The shares were issued on April 5, 2019 and valued at $.0458 per share or $3,435.

 

On February 14, 2019, the Company converted accrued interest and preferred dividends penalty totaling $15,370 or $.0337 into 467,043 restricted shares of Company’s common stock.

 

On February 27, 2019, the Company converted accrued interest and preferred dividends penalty totaling $8,884 or $.0294 into 302,586 restricted shares of Company’s common stock.

 

On March 1, 2019, the Company converted accrued interest and preferred dividends penalty totaling $14,470 or $.0294 into 493,001 restricted shares of Company’s common stock.

 

On March 11, 2019, the Company converted accrued interest and preferred dividends penalty totaling $19,355 or $.0208 into 930,521 restricted shares of Company’s common stock.

 

On March 11, 2019, the Company entered into a consulting agreement whereby it issued a total of 150,000 restricted shares of the Company’s common stock in exchange for advisory services. The shares were issued on April 5, 2019 and valued at $.0427 per share or $6,405.

 

There were 135,280,651 and 132,637,500 common shares issued and outstanding as of August 31, 2019 and 2018, respectively.

 

Common Stock Subscribed

 

During the year ended August 31, 2018, the Company accepted four separate common stock subscriptions representing a total of 228,571 common shares for total cash proceeds of $160,000. As of August 31, 2019, the shares have not been issued to the investor.

 

NOTE 7 – INCOME TAXES

 

The Company’s policy is to provide for deferred income taxes based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect when the differences are expected to reverse. The U.S. Tax Cuts and Jobs Act (TCJA) legislation reduces the U.S. federal corporate income tax rate from 35.0% to 21.0% and is effective June 22, 2018 for the Company. We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. When it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period.

 

The Company is not aware of any uncertain tax position that, if challenged, would have a material effect on the financial statements for the year ended August 31, 2019 or during the prior three years applicable under FASB ASC 740. We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the consolidated balance sheet. All tax returns for the Company remain open for examination.

 

 
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The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows:

 

 

 

2019

 

 

2018

 

Income tax provision at the federal statutory rate

 

 

21%

 

 

21%

Effect on operating losses

 

(21

%)

 

(21

%)

 

 

 

-

 

 

 

-

 

 

The net deferred tax assets consist of the following:

 

 

 

August 31,

2019

 

 

August 31,

2018

 

Deferred tax asset

 

$254,847

 

 

$208,570

 

Valuation allowance

 

 

(254,847)

 

 

(208,570)

Net deferred tax asset

 

$-

 

 

$-

 

 

The change in the valuation allowance for the year ended August 31, 2019 was an increase of $46,277.

 

NOTE 8 – COMMITMENTS AND CONTINGENCIES

 

The Company could become a party to various legal actions arising in the ordinary course of business. Matters that are probable of unfavorable outcomes to the Company and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, the Company’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. As of the date of this report, there are no pending legal proceedings to which the Company is a party or of which any of their property is the subject, nor are there any such proceedings known to be contemplated by governmental authorities.

 

There was a bank account set up during the third quarter of 2019 to work in conjunction with a marketing company in the name of Green Money Enterprises, LLC. The arrangement allowed for merchant services payments to flow to this account and day to day expenses for marketing and consulting services to be accessed and for Green Money Enterprises to access this account per those expenses. In March 2019, the representative from Green Money Enterprises whom had the authority to access the bank account took various withdrawals from the account totaling $19,104. They were not authorized to take this money from the account and have since paid back $6,500 of the original $19,104. The net amount of these is recorded within the general and administrative expenses in the accompanying consolidated statement of operations. The Company is contemplating legal action against Green Money Enterprises for the money not paid back.

 

NOTE 9 – DERIVATIVE LIABILITY

 

Preferred Stock Warrants

 

As discussed in Note 6 – Stockholders’ Equity, the Company issued a total of 8,480,000 warrants to purchase common stock as part of its preferred stock offering. The warrants are exercisable for a period of three years at $0.165 per share. Additionally, the warrant holder is entitled to a cashless exercise after six months from issuance in which the holder is entitled to receive a number of shares equal to: [A] the number of outstanding warrant shares under the original issuance multiplied by [B] the greater of the trailing five day volume weighted average price less [A] the number of outstanding warrant shares under the original issuance multiplied by [C] the exercise price of the warrant under the original issuance divided by [D] the lesser of the arithmetic average of the volume weighted average price during the five trailing trading days or the volume weighted average price for the trading day immediately prior to the cashless exercise election. For clarity, the resulting formula is [(A x B) – (A x C)] / D.

 

The Company analyzed the conversion features of the cashless exercise feature in the warrants issued for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded features should be classified as a derivative liability because the exercise price of these warrants are subject to a variable rate. The Company has determined that warrants are not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with ASC 815, the Company has recorded a derivative liability.

  

Upon issuance, the Company valued the derivative using a Black-Scholes model yielding a total value of $674,012 which was expensed during the year ended August 31, 2018. The Company used the following assumptions upon initial measurement: value per common share of $0.09, a remaining life of 3.0 years, an exercise price of $0.165, a risk-free rate of 2.77% and volatility of 195%.

 

 
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The Company revalued the derivative liability as of August 31, 2019 and recorded a gain of $504,898 on the change in fair value of derivative liabilities for the year then ended. The Company used the following assumptions upon initial measurement: value per common share of $0.0062, a remaining life of 1.92 years, an exercise price of $0.165, a risk-free rate of 1.5% and volatility of 236%.

 

The following table summarizes all stock warrant activity for the twelve months ended August 31, 2019:

 

 

 

Warrants

 

 

Weighted-

Average

Exercise

Price

Per Share

 

Outstanding, August 31, 2018

 

 

8,480,000

 

 

$0.165

 

Granted

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

Outstanding, August 31, 2019

 

 

8,480,000

 

 

$0.165

 

 

The following table discloses information regarding outstanding and exercisable warrants at August 31, 2019:

 

 

 

 

Outstanding

 

 

Exercisable

 

Exercise

Prices

 

 

Number of

Warrant Shares

 

 

Weighted Average

Exercise Price

 

 

Weighted Average

Remaining Life

(Years)

 

 

Number of

Warrant Shares

 

 

Weighted Average

Exercise Price

 

$

0.165

 

 

$8,480,000

 

 

$0.165

 

 

 

1.92

 

 

 

8,480,000

 

 

$0.165

 

 

 

 

 

 

8,480,000

 

 

$0.165

 

 

 

1.92

 

 

 

8,480,000

 

 

$0.165

 

 

Convertible Notes Payable

 

As discussed in Note 5 – Notes Payable, on August 27, 2019, the Company signed a $30,000 convertible promissory note with an investor. The note principal and interest are convertible into shares of common stock at a 25% discount to the lowest traded price of the Company’s common stock during the 10 prior trading days including the day the notice of conversion is received by the Company.

 

The Company analyzed the conversion feature and determine it meets the definition of a derivative liability instrument because the conversion rate is variable and therefore does not meet the “fixed-for-fixed” criteria outlined in ASC 815-40-15. As a result, the conversion features of the notes are recorded as a derivative liability at fair value and marked-to-market each period with the changes in fair value each period charged or credited to other income (expense).

 

Upon issuance, the Company valued the derivative using a Monte Carlo simulation model yielding a total value of $50,277 which was expensed during the year ended August 31, 2019. The Company used the following assumptions upon initial measurement: value per common share of $0.0089, a remaining life of 6 months, an exercise price of $0.00423, a risk-free rate of 1.98% and volatility of 287%. In addition, the Company calculated the derivative discount as the difference between the conversion price and the fair market value of the Company’s common stock on the date of issuance. The original issue discount aggregated $27,000, and was recorded as derivative liability in the accompanying consolidated balance sheet.

 

The Company revalued the derivative liability as of August 31, 2019 and recorded a gain of $16,886 on the change in fair value of derivative liabilities for the year then ended. The Company used the following assumptions upon initial measurement: value per common share of $0.0062, a remaining life of 6 months, an exercise price of $0.00423, a risk-free rate of 1.99% and volatility of 297%.

 

Derivative Liability Summary

 

As of August 31, 2019 and 2018, respectively, the Company had derivative liabilities totaling $39,381 and $537,889, respectively, in the accompanying consolidated balance sheet, and gain on change in fair value of the derivative liability of $521,784 and $136,123, respectively, in the accompanying consolidated statement of operations.

  

NOTE 10 – SUBSEQUENT EVENTS

 

On or about September 4, 2019, the Company signed an initial letter of intent with NanoPeak Performances, LLC with a subsequent addendum for the sale of the majority of its existing inventory as well as the exclusive license to Gridiron intellectual property.  As of December 13, 2019, the two parties are still negotiating the terms of the contemplated transaction.

   

On, November 19, 2019, the Company issued 228,571 restricted shares of the Company’s common stock for the four separate common stock subscriptions granted during the year ended August 31, 2018. The stock subscriptions represented total cash proceeds of $160,000, which funded in the year ended December 31, 2018.

 

On November 25, 2019, the Company signed a convertible promissory note with an investor. The $140,000 note was issued with an original issue discount of $14,000 and bears interest at 10% per year. The note principal and interest are convertible into shares of common stock equal to the lower of 5% per share or 35% discount to the lowest traded price of the Company’s common stock during the 10 prior trading days including the day the notice of conversion is received by the Company. The note matures on May 25, 2020. The note has a prepayment penalty of 115% of the principal and interest outstanding if repaid more than 30 days after issuance. If the Company defaults on the note, the payment premium increases to 140% of the principal and interest outstanding.

 

In November 2019, the Company made a strategic decision to expand into the oil extraction business and on or about November 27, 2019, the Company signed a Supply Agreement with a grower to purchase 10,000 pounds of industrial hemp (biomass) and plans on processing the biomass into crude within the next 60 days. The Company anticipates a third party provider will process the biomass and generate 400 liters of crude with minimum 60% total cannabinoids (CBD). The estimated contract price is $100,000.

 

On December 13, 2019, the Company signed a Toll Processing Agreement with a corporation to process industrial hemp (biomass) into the CBD product. The contract is valued at $100,000.

 

The Company has evaluated all events occurring subsequently to these financial statements through December 17, 2019 and determined there were no other items to disclose.

 

 
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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON FINANCIAL DISCLOSURE

 

None.

 

ITEM 9A. CONTROLS AND PROCEDURES

 

DISCLOSURE CONTROLS AND PROCEDURES

 

Under the supervision and with the participation of our management, consisting solely of our President, who is our principal executive officer and principal financial officer, we are responsible for conducting an evaluation of the effectiveness of the design and operation of our internal controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as of the end of the fiscal year covered by this report. Disclosure controls and procedures means that the material information required to be included in our Securities and Exchange Commission (“SEC”) reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to our company, including any consolidating subsidiaries, and was made known to us by others within those entities, particularly during the period when this report was being prepared. Based on this evaluation, our principal executive officer and principal financial officer concluded as of the evaluation date that our disclosure controls and procedures were not effective as of August 31, 2019.

 

MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

 

As of August 31, 2019, management, consisting solely of our President, who is our principal executive officer and principal financial officer, assessed the effectiveness of our internal control over financial reporting. The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934, as amended, as a process designed by, or under the supervision of, the Company’s President, who is our principal executive officer and principal financial officer, and effected by the Company’s Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP in the United States of America and includes those policies and procedures that:

 

 

·

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and dispositions of our assets;

 

·

Provide reasonable assurance our transactions are recorded as necessary to permit preparation of our financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

 

·

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statement.

 

In evaluating the effectiveness of our internal control over financial reporting, our management used the criteria set forth by the 2013 version of Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework. Based on that evaluation, completed only by Timothy Orr, our President and Chief Executive Officer, and a director, who also serves as our principal financial officer and principal accounting officer, Mr. Orr concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below.

 

 
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This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses. The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (i) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (ii) inadequate segregation of duties consistent with control objectives; and (iii) ineffective controls over period end financial disclosure and reporting processes. The aforementioned material weaknesses were identified by our President, who also serves as our principal financial officer and principal accounting officer, in connection with the review of our financial statements as of August 31, 2019.

 

Management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

 

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING.

 

There were no changes in the Company’s internal control over financial reporting that occurred during the year ended August 31, 2019 that have materially affected, or that are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

ITEM 9B. OTHER INFORMATION.

 

None.

 

 
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PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

Our executive officers and directors and their respective ages as of the date of filing of this Annual Report on Form 10-K are as follows:

 

Name

Age

Positions

Timothy Orr

48

President, Secretary, Treasurer and director

 

Timothy Orr

President, Secretary, Treasurer and director

 

Timothy Orr, age 48, has served as our President and a director since October 9, 2017. He has also served as Secretary and Treasurer since February 28, 2018. Mr. Orr has over 20 years of legal, business and public and private company experience. Mr. Orr’s law practice focuses on business formation and financing tailored to small and medium size companies. Mr. Orr has acted as outside counsel for publicly traded companies as well as private companies seeking equity financing for the expansion of their business. Additionally, since 2004, Mr. Orr has owned and operated Jameson Capital, LLC, a business development consulting services company. In 1994, Mr. Orr obtained a BA in Biology from Whitworth University, and in 1998, he obtained a JD from Gonzaga School of Law. Mr. Orr’s background as a lawyer and desire to participate in the management of GridIron BioNutrients, Inc. led to our conclusion that he should serve as a director in light of our business and structure.

 

TERM OF OFFICE

 

All directors hold office until the next annual meeting of the stockholders of the Company and until their successors have been duly elected and qualified. The Company’s Bylaws provide that the Board of Directors will consist of no less than three members. Officers are elected by and serve at the discretion of the Board of Directors.

 

DIRECTOR INDEPENDENCE

 

Our board of directors is currently composed of one member, and such member does not qualify as independent directors in accordance with the published listing requirements of the NASDAQ Global Market (the Company has no plans to list on the NASDAQ Global Market). The NASDAQ independence definition includes a series of objective tests, such as that the director is not, and has not been for at least three years, one of our employees and that neither the director, nor any of his family members has engaged in various types of business dealings with us. In addition, our board of directors has not made a subjective determination as to our director that no relationships exist which, in the opinion of our board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director, though such subjective determination is required by the NASDAQ rules. Had our board of directors made these determinations, our board of directors would have reviewed and discussed information provided by our director and us with regard to our director’s business and personal activities and relationships as they may relate to us and our management.

 

 
20
 
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EMPLOYMENT AGREEMENTS

 

We have no employment agreement with any person.

 

INDEMNIFICATION AGREEMENTS

 

Timothy Orr, our President, Secretary, Treasurer and a director has entered into an Indemnification Agreement dated October 9, 2017, with the Company, pursuant to which the Company agreed to indemnify him for claims against each of them that may arise in connection with the performance of his duties as an officer or director for the Company.

 

FAMILY RELATIONSHIPS

 

No family relationships exist between Timothy Orr, our President, Secretary, Treasurer and a director and any other person who is an affiliate of the Company.

 

CERTAIN LEGAL PROCEEDINGS

 

No director, person nominated to become a director, executive officer, promoter or control person of our company has, during the last ten years: (i) been convicted in or is currently subject to a pending a criminal proceeding (excluding traffic violations and other minor offenses); (ii) been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to any federal or state securities or banking or commodities laws including, without limitation, in any way limiting involvement in any business activity, or finding any violation with respect to such law, nor (iii) any bankruptcy petition been filed by or against the business of which such person was an executive officer or a general partner, whether at the time of the bankruptcy or for the two years prior thereto.

 

SIGNIFICANT EMPLOYEES AND CONSULTANTS

 

Other than our officers and directors, we currently have no other significant employees.

 

AUDIT COMMITTEE AND CONFLICTS OF INTEREST

 

Since we do not have an audit or compensation committee comprised of independent directors, the functions that would have been performed by such committees are performed by our directors. The Board of Directors has not established an audit committee and does not have an audit committee financial expert, nor has the Board of Directors established a nominating committee. The Board is of the opinion that such committees are not necessary since the Company is an early development stage company and has only one director, and to date, such director has been performing the functions of such committees. Thus, there is a potential conflict of interest in that our directors and officers have the authority to determine issues concerning management compensation, nominations, and audit issues that may affect management decisions.

 

There are no family relationships among our directors or officers. Other than as described above, we are not aware of any other conflicts of interest with any of our executive officers or directors.

 

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

 

Section 16(a) of the Securities Exchange Act of 1934 requires our executive officers and directors, and persons who own more than ten percent of a registered class of our equity securities, file reports of ownership and changes in ownership with the SEC. Executive officers, directors and greater-than-ten percent stockholders are required by SEC regulations to furnish us with all Section 16(a) forms they file. Based on our review of filings made on the SEC website, and the fact of us not receiving certain forms or written representations from certain reporting persons that they have complied with the relevant filing requirements, we believe that, during the year ended August 31, 2019, our executive officers, directors and greater-than-ten percent stockholders complied with all Section 16(a) filing requirements.

 

 
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STOCKHOLDER COMMUNICATIONS WITH THE BOARD OF DIRECTORS

 

We have not implemented a formal policy or procedure by which our stockholders can communicate directly with our Board of Directors. Nevertheless, every effort has been made to ensure that the views of stockholders are heard by the Board of Directors or individual directors, as applicable, and that appropriate responses are provided to stockholders in a timely manner. We believe that we are responsive to stockholder communications, and therefore have not considered it necessary to adopt a formal process for stockholder communications with our Board. During the upcoming year, our Board will continue to monitor whether it would be appropriate to adopt such a process.

 

CODE OF ETHICS

 

The Company has not adopted a code of ethics that applies to its principal executive officers, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

 

ITEM 11. EXECUTIVE COMPENSATION

 

SUMMARY COMPENSATION TABLE

 

The table below summarizes all compensation awarded to, earned by, or paid to our Officers for all services rendered in all capacities to us as of the year ended August 31, for the fiscal years ended as indicated, and as the date of filing of this Annual Report on Form 10-K.

 

Summary Compensation Table

 

Name and

Principal Position

 

Year

 

Salary

($)

 

 

Bonus

($)

 

 

Stock Awards

($)*

 

 

Option Awards

($)*

 

 

Non-Equity Incentive Plan Compensation ($)

 

 

Nonqualified Deferred Compensation ($)

 

 

All Other Compensation($)

 

 

Total

($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Darren Long (1)

 

2019

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

2018

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timothy Orr (2)

 

2019

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

99,600

 

 

 

99,600

 

 

 

2018

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

8,300

 

 

 

8,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brian Martinho (3)

 

2019

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

2018

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

_____________

(1)

Appointed Chief Executive Officer, Secretary and Chairman of the Board of Directors, on October 9, 2017. Resigned as Chief Executive Officer, Secretary and Chairman of the Board of Directors, on February 27, 2018.

(2)

Appointed President and director on October 9, 2017. Appointed Secretary and Treasurer on February 27, 2018.

(3)

Appointed Treasurer and director on October 9, 2017. Resigned as Treasurer and director on February 27, 2018.

 

Except as disclosed in the Summary Compensation Table above, there has been no compensation awarded to, earned by, or paid to the executive officers by any person for services rendered in all capacities to us for the fiscal period ended August 31, 2019, and through the date of filing of this Annual Report on Form 10-K

 

 
22
 
Table of Contents

  

Option Grants

 

The following table sets forth stock option grants and compensation for the fiscal year ended August 31, 2019, and as the date of filing of this Annual Report on Form 10-K:

 

 

 

Option Awards

 

 

Stock Awards

 

Name

 

Number of Securities Underlying Unexercised Options (#) Exercisable

 

 

Number of Securities Underlying Unexercised Options (#) Unexercisable

 

 

Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)

 

 

Option Exercise Price ($)

 

 

Option

Expiration

Date

 

 

Number of Shares or Units of Stock That Have Not Vested (#)

 

 

Market Value of Shares or Units of Stock That Have Not Vested ($)

 

 

Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)

 

 

Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)

 

Timothy Orr (1)

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

$-0-

 

 

 

N/A

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

____________ 

(1)

Appointed President and director on October 9, 2017. Appointed Secretary and Treasurer on February 27, 2018.

 

Option Exercises and Fiscal Year-End Option Value Table.

 

There were no stock options exercised by the named executive officers as of the end of the fiscal period ended August 31, 2019 and through the date of filing of this Annual Report on Form 10-K.

 

Long-Term Incentive Plans and Awards

 

There were no awards made to a named executive officer, under any long-term incentive plan, as of the end of the fiscal period ended August 31, 2019 and through the date of filing of this Annual Report on Form 10-K.

 

Other Compensation

 

There are no annuity, pension or retirement benefits proposed to be paid to officers, directors, or employees of our company in the event of retirement at normal retirement date as there was no existing plan as of the end of the fiscal year ended August 31, 2019, and through the date of filing of this Annual Report on Form 10-K, provided for or contributed to by our company.

 

DIRECTOR COMPENSATION

 

The following table sets forth director compensation as of August 31, 2019, and as the date of filing of this Annual Report on Form 10-K:

 

Name

 

Fees Earned or Paid in Cash

($)

 

 

Stock Awards ($)

 

 

Option Awards ($)

 

 

Non-Equity Incentive Plan Compensation($)

 

 

Nonqualified Deferred Compensation Earnings

($)

 

 

All Other Compensation($)

 

 

Total

($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timothy Orr (1)

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

_____________ 

(1)

Appointed President and director on October 9, 2017. Appointed Secretary and Treasurer on February 27, 2018.

 

 
23
 
Table of Contents

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

The following table lists, as of the date of this Form 10-K, the number of shares of common stock of our Company that are beneficially owned by (i) each person or entity known to our Company to be the beneficial owner of more than 5% of the outstanding common stock; (ii) each officer and director of our Company; and (iii) all officers and directors as a group. Information relating to beneficial ownership of common stock by our principal shareholders and management is based upon information furnished by each person using “beneficial ownership” concepts under the rules of the Securities and Exchange Commission. Under these rules, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power to vote or direct the voting of the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Under the Securities and Exchange Commission rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he or she may not have any pecuniary beneficial interest. Except as noted below, each person has sole voting and investment power.

 

The percentages below are calculated based on 135,509,220 shares of our common stock issued and outstanding as of the date of this Form 10-K. We do not have any outstanding warrant, options or other securities exercisable for or convertible into shares of our common stock.

 

Title of Class

 

Name and Address of Beneficial Owner

(2)

 

Amount and Nature of Beneficial Ownership

 

 

Percent of

Common Stock

(1)

 

 

 

 

 

 

 

 

 

 

Common Stock

 

Timothy Orr (3)

 

 

26,527,500

 

 

 

19.5%

Common Stock

 

Grays Peak LLC (4)

 

 

77,872,500

 

 

 

64.4%

All directors and executive officers as a group (1 person)

 

 

 

 

26,527,500

 

 

 

15.0%

___________

(1)

The percentages below are based on 135,509,220 shares of our common stock issued and outstanding as of the date of this Form 10-K.

(2)

c/o GridIron BioNutrients, 1119 West 1st Ave., Ste. G, Spokane, Washington 99021.

(3)

Appointed President and director on October 9, 2017. Appointed Secretary and Treasurer on February 27, 2018.

(4)

Voting and/or dispositive control held by Scott Stevens.

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

 

During the years ended August 31, 2019 and 2018, we paid Timothy Orr, our sole director and officer, $99,600 and 8,300, respectively. During the years ended August 31, 2019 and 2018, we owed Mr. Orr, $38,449 and $0, respectively.

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

 

For the years ended August 31, 2019 and 2018, the total fees charged to the company for audit services, including quarterly reviews were $28,870 and $23,646, and total fees charged for tax services and other services were $0 and $0, respectively.

 

 
24
 
Table of Contents

 

PART IV

 

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULE

 

(a) The following Exhibits, as required by Item 601 of Regulation SK, are attached or incorporated by reference, as stated below.

 

Number

Description

3.1.1

Articles of Incorporation (1)

3.1.2

Certificate of Amendment (2)

3.1.3

Certificate of Amendment (3)

3.1.4

Certificate of Amendment (4)

3.1.5

Certificate of Amendment (4)

3.1.6

Certificate of Designation (4)

3.1.7

Certificate of Correction (4)

3.2

Bylaws (1)

21.1

Subsidiaries of the Registrant

31.1

Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS *

XBRL Instance Document

101.SCH *

XBRL Taxonomy Extension Schema Document

101.CAL *

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF *

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB *

XBRL Taxonomy Extension Label Linkbase Document

101.PRE *

 

XBRL Taxonomy Extension Presentation Linkbase Document

___________ 

(1)

Incorporated by reference to the Registrant’s Form S-1 (File No. 333-203373), filed with the SEC on April 13, 2015.

(2)

Incorporated by reference to the Registrants’ Annual Report on Form 10-K (File No. 000-55852), filed with the SEC on December 15, 2017.

(3)

Incorporated by reference to the Registrants’ Current Report on Form 8-K (File No. 000-55852), filed with the SEC on February 21, 2018.

(4)

Incorporated by reference to the Registrants’ Current Report on Form 8-K (File No. 000-55852), filed with the SEC on August 16, 2018.

__________ 

*

XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

 

ITEM 16. FORM 10-K SUMMARY

 

None.

 

 
25
 
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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

GRIDIRON BIONUTRIENTS, INC.

(Name of Registrant)

 

Date: December 17, 2019

By:

/s/ Timothy Orr

Name:

Timothy Orr

Title:

President, Secretary,

Treasurer and director (principal executive officer,

principal accounting officer and

principal financial officer)

 

 

26

EX-21.1 2 gmvp_ex211.htm SUBSIDIARIES OF THE REGISTRANT gmvp_ex211.htm

EXHIBIT 21.1

 

SUBSIDIARIES OF THE REGISTRANT

 

GridIron Ventures, Inc., a Nevada corporation

EX-31.1 3 gmvp_ex311.htm CERTIFICATION gmvp_ex311.htm

EXHIBIT 31.1

 

SECTION 302 CERTIFICATION

OF PRINCIPAL EXECUTIVE OFFICER OF GRIDIRON BIONUTRIENTS, INC.

 

I, Timothy Orr, certify that:

 

1.

I have reviewed this report on Form 10-K of GridIron BioNutrients, Inc.

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a)

Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 17, 2019

 

/s/ Timothy Orr

 

Timothy Orr

 

President, Secretary, Treasurer and director

(and principal executive officer,

principal financial officer and

principal accounting officer)

 

EX-31.2 4 gmvp_ex312.htm CERTIFICATION gmvp_ex312.htm

EXHIBIT 31.2

 

SECTION 302 CERTIFICATION

OF PRINCIPAL FINANCIAL OFFICER OF GRIDIRON BIONUTRIENTS, INC.

 

I, Timothy Orr, certify that:

 

1.

I have reviewed this report on Form 10-K of GridIron BioNutrients, Inc.

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a)

Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 17, 2019

 

/s/ Timothy Orr

 

Timothy Orr

 

President and director

(and principal executive officer,

principal financial officer and

principal accounting officer)

 

EX-32.1 5 gmvp_ex321.htm CERTIFICATION gmvp_ex321.htm

EXHIBIT 32.1

 

SECTION 906 CERTIFICATION OF

PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

OF GRIDIRON BIONUTRIENTS, INC.

 

In connection with the accompanying Annual Report on Form 10-K of GridIron BioNutrients, Inc. for the year ended August 31, 2019, the undersigned, Timothy Orr, President of GridIron BioNutrients, Inc., does hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

 

(1)

such Annual Report on Form 10-K for the year ended August 31, 2019 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

(2)

the information contained in such Annual Report on Form 10-K for the year ended August 31, 2019 fairly presents, in all material respects, the financial condition and results of operations of GridIron BioNutrients, Inc.

 

Date: December 17, 2019

 

/s/ Timothy Orr

 

Timothy Orr

 

President, Secretary, Treasurer and director

(and principal executive officer,

principal financial officer and

principal accounting officer)

 

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2018-12-31 GRIDIRON BIONUTRIENTS, INC. 0001629205 10-K false No --08-31 No true false true Yes 2019-08-31 Non-accelerated Filer FY 2019 false 135509220 1228814 18975 774468 428 203563 53110 25611 30000 248149 858006 6585 1937 1680 2800 8265 4737 256414 862743 84428 95287 39381 537889 49500 49500 27049 23695 4192 224053 686868 160000 160000 8480 8480 135281 132638 942159 867949 -1213559 -993192 32361 175875 256414 862743 25000000 0.001 0.001 25000000 8480000 8480000 8480000 8480000 0.001 0.001 200000000 200000000 132637500 135280651 132637500 135280651 2446 529 79246 16771 129337 81025 -50091 -64254 94443 61812 69592 72349 163129 103881 270837 133822 18775 1120 617896 371864 -667987 -436118 587 1517 -521784 -136123 23277 674012 -497920 539406 -170067 -975524 -170067 -975524 -0.00 -0.01 134300278 125158048 75907 75907 -4192 -4192 8480000 8480000 8480 62637500 62638 132637500 132638 -62438 160000 -13476 -975524 -993192 -13276 -975524 8480000 8480 135280651 135281 942159 160000 -170067 -1213559 -170067 70000000 70000 -143040 -73040 160000 160000 8480 997520 1006000 -50300 -50300 450000 450 18325 18775 2193 55885 58078 2193151 1916 530 23276 674012 27281 18775 49 428 -428 -150453 -53110 4389 -30000 -10859 94182 -16101 -775929 -442562 -6564 -2467 -6564 -2467 49500 27000 160000 1006000 3972 27000 1219472 -755493 774443 25 50300 3000 4192 1105 75907 75907 70000 <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Gridiron BioNutrients, Inc. (the &#8220;Company&#8221; or &#8220;Gridiron&#8221;) was formed under the laws of the state of Nevada on July 20, 2017 to develop and distribute a retail line of health water infused with probiotics and minerals. The Company has elected an August 31<sup>st</sup> year end. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><i><u>Acquisition and Reverse Merger</u></i></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On October 10, 2017, the Company completed a reverse merger with My Cloudz, Inc. (&#8220;My Cloudz&#8221;) pursuant to which the Company merged into My Cloudz on October 10, 2017. Under the terms of the merger, the Company shareholders received 70,000,000 common shares of My Cloudz common stock such that the Company shareholders received approximately 57% of the total common shares issued and outstanding following the merger. Due to the nominal assets and limited operations of My Cloudz prior to the merger, the transaction was accorded reverse recapitalization accounting treatment under the provision of Financial Accounting Standards Board Accounting Standards Codification (&#8220;FASB ASC&#8221;) 805 whereby the Company became the accounting acquirer (legal acquiree) and My Cloudz was treated as the accounting acquiree (legal acquirer). The historical financial records of the Company are those of the accounting acquirer (GridIron) adjusted to reflect the legal capital of the accounting acquiree (My Cloudz). As the transaction was treated as a recapitalization, no intangibles, including goodwill, were recognized. Concurrent with the effective date of the reverse recapitalization transaction, the Company adopted the fiscal year end of the accounting acquirer of August 31.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">At the date of acquisition, My Cloudz had $3,972 of cash, $1,105 of accounts payable and a related party payable of $75,907. Book values for all assets acquired and liabilities assumed equaled fair values as of the date of acquisition. </p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Basis of Presentation</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">This summary of accounting policies for Gridiron is presented to assist in understanding the Company&#8217;s financial statements. The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221; accounting) and have been consistently applied in the preparation of the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Use of Estimates</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates. Estimates are used when accounting for fair value calculations related to embedded conversion features of outstanding convertible notes payable.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Cash </u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company had $18,975 and $774,468 of cash and cash equivalents as of August 31, 2019 and 2018. As of August 31, 2018, the Company held cash of $524,468 with one financial institution in excess of the FDIC insured limit of $250,000.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><em><u>Revenue Recognition</u></em></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company recognizes revenue under&nbsp;ASU No. 2014-09,&nbsp;<i>&#8220;Revenue from Contracts with Customers (Topic 606),&#8221;</i>&nbsp;(&#8220;ASC 606&#8221;).&nbsp;&nbsp;&nbsp;The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer.&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i)&nbsp;identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The&nbsp;Company&nbsp;only&nbsp;applies&nbsp;the&nbsp;five-step&nbsp;model&nbsp;to&nbsp;contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company&#8217;s performance obligations are transferred to customers at a point in time, typically upon delivery.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Fair Value of Financial Instruments</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Fair value of certain of the Company&#8217;s financial instruments including cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, &#8220;Fair Value Measurements and Disclosure&#8221; defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company&#8217;s credit risk.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">As discussed in <i>Note 9 &#8211; Derivative Liability, </i>the Company valued its derivative liability using Level 3 inputs as of August 31, 2019 and August 31, 2018. The Company did not identify any additional assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 825-10 as of August 31, 2019 and 2018. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Derivative Liabilities</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company generally does not use derivative financial instruments to hedge exposures to cash flow or market risks. However, certain other financial instruments, such as warrants and embedded conversion features on the convertible debt, are classified as derivative liabilities due to protection provisions within the agreements.&nbsp;Convertible notes payable&nbsp;are initially recorded at fair value using the Monte Carlo model and subsequently adjusted to fair value at the close of each reporting period. The preferred stock warrants are initially recorded at fair value using the Black Scholes model and subsequently adjusted to fair value at the close of each reporting period. The Company accounts for derivative instruments and debt instruments in accordance with the interpretive guidance of ASC 815, ASU 2017-11, and associated pronouncements related to the classification and measurement of warrants and instruments with conversion features.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Income Taxes</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Income taxes are accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Use of net operating loss carry forwards for income tax purposes may be limited by Internal Revenue Code section 382 if a change of ownership occurs.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Principals of Consolidation</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The consolidated financial statements represent the results of Gridiron BioNutrients, Inc, its wholly owned subsidiary, Gridiron Ventures and the assets, processes, and results therefrom. All intercompany transactions and balances have been eliminated. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Property and Equipment</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Property and equipment are carried at cost. Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery system for federal income tax purposes. The estimated useful lives of depreciable assets are:</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td></td><td width="2%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="25%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Estimated Useful Lives</b></p></td></tr><tr bgcolor="#cceeff"><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Computer and other equipment</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center">3 years</p></td></tr><tr bgcolor="#ffffff"><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Vehicle</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center">5 years</p></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company&#8217;s property and equipment consisted of the following as of August 31, 2019 and 2018:</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31,</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2019</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31,</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2018</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Computer Equipment</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="10%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">2,467</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="10%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">2,466</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Vehicle</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">2,977</p></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Other</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">3,587</p></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Accumulated depreciation</p></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">(2,446</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">)</p></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">(529</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">)</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Net book value</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">6,585</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">1,937</p></td><td valign="bottom"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Depreciation expense for the years ended August 31, 2019 and 2018 was $1,916 and $530, respectively. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Inventories</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Inventories consist of raw materials, packing materials, bottled water and concentrates, capsules, gummy products, drops and other items and are stated at the lower of cost or net realizable value using the first&#8209;in, first&#8209;out method. The Company periodically assesses the recoverability of its inventory and reduces the carrying value of the inventory when items are determined to be obsolete, defective or in excess of forecasted sales requirements. Inventory write&#8209;downs for excess, defective and obsolete inventory are recorded as a cost of revenue. During August 2019, the Company wrote-off $40,136 of expired inventory, The Company did not have any other write downs of inventory during the years ended August 31, 2019 and 2018. Inventory balances were $203,563 and $53,110 as of August 31, 2019 and 2018, respectively. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">A summary of the Company&#8217;s inventory as of August 31, 2019 and 2018 is as follows:</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><b>Type</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31, </b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2019</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31, </b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2018</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Raw Materials</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="10%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">19,477</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="10%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">33,010</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Packaging Materials</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">6,558</p></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">1,860</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Gridrion Water &amp; Concentrates</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">126,773</p></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">10,566</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Gridiron Capsules</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">32,044</p></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">1,233</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Gummy and Other Products</p></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">18,710</p></td><td valign="bottom"></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">6,440</p></td><td valign="bottom"></td></tr><tr bgcolor="#ffffff"><td></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Total Inventory</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">203,563</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">53,110</p></td><td valign="bottom"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Basic Income (Loss) Per Share</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Basic income (loss) per share is calculated by dividing the Company&#8217;s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company&#8217;s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. The conversion of preferred shares, warrants and convertible debt to common shares could potentially bring the number of common shares to a total of approximately 194,000,000. The preferred conversion and warrants would account for approximately 51,394,000 additional shares, the convertible debt would account for approximately 7,096,900 additions shares and an additional 228,571 that have not been issued yet, along with the 135,280,651 outstanding at August 31, 2019. The Company's convertible notes and warrants are excluded from the computation of diluted earnings per share as they are anti-dilutive due to the Company's losses for the years ended August 31, 2019 and 2018.&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Dividends</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">As discussed in <i>Note 5 &#8211; Stockholders Equity (Deficit), </i>during the year ended August 31, 2018, the Company issued preferred stock which accrues dividends at a rate of 5% annually. There was $23,695 and $4,192 of dividends payable at August 31, 2019 and August 31, 2018, respectively. The dividends have not been declared and are accrued in the accompanying consolidated balance sheets as a result of a contractual obligation in the Company&#8217;s preferred stock offering.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Advertising Costs</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company&#8217;s policy regarding advertising is to expense advertising when incurred. The Company incurred advertising costs totaling $94,443 and $61,812 during the years ended August 31, 2019 and 2018, respectively. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Stock-Based Compensation</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company accounts for share-based compensation in accordance with the fair value recognition provisions of the Financial Accounting Standards Board (&#8220;FASB&#8221;) Accounting Standards Codification (&#8220;ASC&#8221;) No. 718 and No. 505. After December 15, 2018, the scope of Topic 718, Compensation&#8212;Stock Compensation, was expanded to include share-based payments issued to nonemployees for goods and services. The Company issues restricted stock to employees and consultants for their services. Cost for these transactions are measured at the fair value of the equity instruments issued at the date of grant. These shares are considered fully vested and the fair market value is recognized as expense in the period granted. The Company recognized consulting expenses and a corresponding increase to additional paid-in-capital related to stock issued for services. For agreements requiring future services, the consulting expense is to be recognized ratably over the requisite service period.&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">There was $18,775 and $-0- of stock-based compensation during the years ended August 31, 2019 and 2018, respectively.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Related Parties</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The registrant follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Pursuant to Section 850-10-20 the Related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825&#8211;10&#8211;15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the registrant; (e) management of the registrant; (f) other parties with which the registrant may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Recently Issued Accounting Standards</u> </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, <i>&#8221;Disclosure Update and Simplification,&#8221;</i> amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders&#8217; equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders&#8217; equity presented in the balance sheet must be provided in a note or separate statement. This analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective as of November 5, 2018. The adoption of this final rule did not have a material impact on the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In June 2018, the FASB issued ASU 2018-07, <i>&#8221;Compensation &#8211; Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,&#8221; </i>which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from non-employees. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company elected to early-adopt this standard in the current period; the adoption of this standard did not impact the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In November 2016, the FASB issued ASU 2016-18, &#8221;<i>Statement of Cash Flows (Topic 230): Restricted Cash</i>,&#8221; which provides amendments to current guidance to address the classifications and presentation of changes in restricted cash in the statement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017. The Company adopted the standard effective September&nbsp;1, 2018; the adoption of this standard did not have a material impact on the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In October 2016, the FASB issued ASU 2016-16, &#8220;<i>Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory</i>.&#8221; The amendments in this update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the standard effective&nbsp;September 1, 2018; the adoption of this standard did not have a material impact on the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In June 2016, the FASB issued ASU 2016-13, <i>&#8221;Financial Instruments &#8211; Credit Losses (Topic 326)&#8221; </i>which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In February 2016, the FASB issued ASU 2016-02, &#8220;<i>Leases (Topic 842</i>)<i>,&#8221; </i>which supersedes the guidance in ASC 840, <i>&#8221;Leases</i>.&#8221; The purpose of the new standard is to improve transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Although the standard initially required the modified retrospective approach for adoption, in July 2018, the FASB issued ASU 2018-18, allowing companies to initially apply the new lease requirements at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Early adoption is permitted. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement Reporting, Comprehensive Income (Topic 220). Effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this guidance by the Company is not expected to have a material impact on our condensed financial statements and related disclosures.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Accounts Receivable</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Accounts receivable balances are established for amounts owed to the Company from its customers from the sale of products. The Company closely monitors the collectability of outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts. There were $-0- and $428 outstanding accounts receivable as of August 31, 2019 and 2018, respectively. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Trademark</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">During the period ended August 31, 2017, a related party incurred total costs of $2,800 to acquire five trademarks on behalf of the Company. Trademark costs are capitalized as incurred to the extent the Company expects the costs incurred to result in a trademark being awarded. The trademarks are deemed to have an indefinite life and are reviewed for impairment loss considerations annually. At August 31, 2019, two of the trademarks for $1,120 were deemed impaired and were written off in the accompanying statement of operations. As of August 31, 2019, and 2018, respectively, the Company had trademarks totaling $1,680 and $2,800, respectively.</p></div></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company&#8217;s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company had a net loss of $170,067 for the year ended August 31, 2019. The Company has working capital deficit of $24,096 and an accumulated deficit of $1,213,559 as of August 31, 2019. These conditions raise substantial doubt about the Company&#8217;s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The ability of the Company to fully commence its operations is dependent upon, among other things, obtaining additional financing to continue operations, and execution of its business plan. In response to these concerns, management plans to fund operations through additional debt and equity financing. Debt instruments may be convertible or non-convertible and will vary based on the Company&#8217;s needs and financing options available at such times. There can be no assurance that management&#8217;s plan will be successful.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Short-Term Notes Payable</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">As of August 31, 2019, and 2018, the Company had two notes payable with a principal balance of $49,500, owed to two separate noteholders. Each note payable is unsecured with one bearing interest at 5% and the other at 0% respectively. The Company had an outstanding accrued interest balance of $1,014 and $475 as of August 31, 2019 and 2018, respectively, which has been included in the consolidated balance sheets under accounts payable and accrued expenses.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Convertible Notes Payable</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On August 27, 2019, the Company signed a convertible promissory note with an investor. The $30,000 note was issued with an original issue discount of $3,000 and bears interest at 10% per year. The note principal and interest are convertible into shares of common stock at a 25% discount to the lowest traded price of the Company&#8217;s common stock during the 10 prior trading days including the day the notice of conversion is received by the Company. The note matures on February 27, 2020. The note has a prepayment penalty of 110% of the principal and interest outstanding if repaid before 180 days from issuance. After February 27, 2020, the payment premium increases to 125% of the principal and interest outstanding and if in default, the payment premium increases to 140% of the principal and interest outstanding. The original issue discount is amortized through the term of the note. The unpaid balance including accrued interest was $30,033 at August 31, 2019. At August 31, 2019, the outstanding principle balances, net of original issue debt discount of $2,951 was $27,049.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The conversion features meets the definition of a derivative liability instrument because the conversion rate is variable and therefore does not meet the &#8220;fixed-for-fixed&#8221; criteria outlined in ASC 815-40-15. As a result, the conversion features of the notes are recorded as a derivative liability at fair value and marked-to-market each period with the changes in fair value each period charged or credited to other income (expense). See <i><u>Note 9 - Derivative Liability</u></i>, for a further discussion.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">The Company recorded interest expense on the original issue debt discount of $49 for the year ended August 31, 2019, in the accompanying consolidated statements of operations.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">As at August 31, 2019 and 2018, the Company owed $38,449 and -0-, respectively to its President and Director. The balance due is recorded in accounts payable in the accompanying consolidated balance sheets. </p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Preferred Stock</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On July 16, 2018, the Board of Directors and one (1) stockholder adopted and approved a resolution to affect an amendment to our Articles of Incorporation to authorize the creation of 5,000,000 shares, designated as our Preferred Stock. On July 16, 2018, the Company filed a Certificate of Amendment to its Articles of Incorporation creating 5,000,000 shares of preferred stock. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On July 30, 2018, the Board of Directors of the Company authorized the designation of 9,000,000 shares of Series A Preferred Stock. On July 31, 2018, the Company filed a Certificate of Designation with the Secretary of State of the State of Nevada, creating 9,000,000 shares of Series A Preferred Stock.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On August 1, 2018, the Board of Directors and one (1) stockholder adopted and approved a resolution to affect an amendment to our Articles of Incorporation to authorize the creation of 25,000,000 shares, designated as our Preferred Stock. On August 1, 2018, the Company filed a Certificate of Amendment to its Articles of Incorporation creating 25,000,000 shares of preferred stock. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The preferred stock accrues dividends at a rate of 5% annually, are convertible to common stock at a rate of $0.125 per share at the option of the holder. Further, the preferred stock is redeemable by the Company at a premium during the first 180 days after issuance and another premium after the 180<sup>th</sup> day from issuance. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">During the year ended August 31, 2018, the Company issued a total of 8,480,000 of preferred stock and 8,480,000 of warrants for total cash proceeds of $1,006,000. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">There were 8,480,000 preferred shares issued and outstanding as of August 31, 2019 and 2018.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Common Stock</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company is authorized to issue up to 200,000,000 shares of $0.001 par value common stock. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">During the year ended August 31, 2018, the Company issued a total of 70,000,000 restricted shares of the Company&#8217;s common stock to complete its acquisition and reverse merger as discussed in <i>Note 1 &#8211; Organization and Description of Business</i>. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On January 30, 2019, the Company entered into a consulting agreement whereby it issued a total of 100,000 restricted shares of the Company&#8217;s common stock in exchange for advisory services. The shares were issued on April 5, 2019 and valued at $.0321 per share or $3,210.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On February 7, 2019, the Company entered into a consulting agreement whereby it issued a total of 125,000 restricted shares of the Company&#8217;s common stock in exchange for business development services. The shares were issued on April 5, 2019 and valued at $.0458 per share or $5,725.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On February 7, 2019, the Company entered into a consulting agreement whereby it issued a total of 75,000 restricted shares of the Company&#8217;s common stock in exchange for business development services. The shares were issued on April 5, 2019 and valued at $.0458 per share or $3,435.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On February 14, 2019, the Company converted accrued interest and preferred dividends penalty totaling $15,370 or $.0337 into 467,043 restricted shares of Company&#8217;s common stock.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On February 27, 2019, the Company converted accrued interest and preferred dividends penalty totaling $8,884 or $.0294 into 302,586 restricted shares of Company&#8217;s common stock.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On March 1, 2019, the Company converted accrued interest and preferred dividends penalty totaling $14,470 or $.0294 into 493,001 restricted shares of Company&#8217;s common stock.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On March 11, 2019, the Company converted accrued interest and preferred dividends penalty totaling $19,355 or $.0208 into 930,521 restricted shares of Company&#8217;s common stock.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On March 11, 2019, the Company entered into a consulting agreement whereby it issued a total of 150,000 restricted shares of the Company&#8217;s common stock in exchange for advisory services. The shares were issued on April 5, 2019 and valued at $.0427 per share or $6,405.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">There were 135,280,651 and 132,637,500 common shares issued and outstanding as of August 31, 2019 and 2018, respectively.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Common Stock Subscribed</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">During the year ended August 31, 2018, the Company accepted four separate common stock subscriptions representing a total of 228,571 common shares for total cash proceeds of $160,000. As of August 31, 2019, the shares have not been issued to the investor.</p></div></div></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company&#8217;s policy is to provide for deferred income taxes based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect when the differences are expected to reverse. The U.S. Tax Cuts and Jobs Act (TCJA) legislation reduces the U.S. federal corporate income tax rate from 35.0% to 21.0% and is effective June 22, 2018 for the Company. We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. When it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company is not aware of any uncertain tax position that, if challenged, would have a material effect on the financial statements for the year ended August 31, 2019 or during the prior three years applicable under FASB ASC 740. We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the consolidated balance sheet. All tax returns for the Company remain open for examination. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows:</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2019</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2018</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Income tax provision at the federal statutory rate</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">21</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">%</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">21</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">%</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Effect on operating losses</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">(21</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">%)</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">(21</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">%)</p></td></tr><tr bgcolor="#cceeff"><td></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The net deferred tax assets consist of the following:</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31,</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2019</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31,</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2018</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Deferred tax asset</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">254,847</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">208,570</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Valuation allowance</p></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">(254,847</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">)</p></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">(208,570</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">)</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Net deferred tax asset</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">The change in the valuation allowance for the year ended August 31, 2019 was an increase of $46,277.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company could become a party to various legal actions arising in the ordinary course of business. Matters that are probable of unfavorable outcomes to the Company and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, the Company&#8217;s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. As of the date of this report, there are no pending legal proceedings to which the Company is a party or of which any of their property is the subject, nor are there any such proceedings known to be contemplated by governmental authorities.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">There was a bank account set up during the third quarter of 2019 to work in conjunction with a marketing company in the name of Green Money Enterprises, LLC. The arrangement allowed for merchant services payments to flow to this account and day to day expenses for marketing and consulting services to be accessed and for Green Money Enterprises to access this account per those expenses. In March 2019, the representative from Green Money Enterprises whom had the authority to access the bank account took various withdrawals from the account totaling $19,104. They were not authorized to take this money from the account and have since paid back $6,500 of the original $19,104. The net amount of these is recorded within the general and administrative expenses in the accompanying consolidated statement of operations. The Company is contemplating legal action against Green Money Enterprises for the money not paid back.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Preferred Stock Warrants</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">As discussed in <i>Note 6 &#8211; Stockholders&#8217; Equity</i>, the Company issued a total of 8,480,000 warrants to purchase common stock as part of its preferred stock offering. The warrants are exercisable for a period of three years at $0.165 per share. Additionally, the warrant holder is entitled to a cashless exercise after six months from issuance in which the holder is entitled to receive a number of shares equal to: [A] the number of outstanding warrant shares under the original issuance multiplied by [B] the greater of the trailing five day volume weighted average price less [A] the number of outstanding warrant shares under the original issuance multiplied by [C] the exercise price of the warrant under the original issuance divided by [D] the lesser of the arithmetic average of the volume weighted average price during the five trailing trading days or the volume weighted average price for the trading day immediately prior to the cashless exercise election. For clarity, the resulting formula is [(A x B) &#8211; (A x C)] / D. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company analyzed the conversion features of the cashless exercise feature in the warrants issued for derivative accounting consideration under ASC 815-15 &#8220;Derivatives and Hedging&#8221; and determined that the embedded features should be classified as a derivative liability because the exercise price of these warrants are subject to a variable rate. The Company has determined that warrants are not considered to be solely indexed to the Company&#8217;s own stock and is therefore not afforded equity treatment. In accordance with ASC 815, the Company has recorded a derivative liability. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Upon issuance, the Company valued the derivative using a Black-Scholes model yielding a total value of $674,012 which was expensed during the year ended August 31, 2018. The Company used the following assumptions upon initial measurement: value per common share of $0.09, a remaining life of 3.0 years, an exercise price of $0.165, a risk-free rate of 2.77% and volatility of 195%. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company revalued the derivative liability as of August 31, 2019 and recorded a gain of $504,898 on the change in fair value of derivative liabilities for the year then ended. The Company used the following assumptions upon initial measurement: value per common share of $0.0062, a remaining life of 1.92 years, an exercise price of $0.165, a risk-free rate of 1.5% and volatility of 236%.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The following table summarizes all stock warrant activity for the&nbsp;twelve months ended August 31, 2019: </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Warrants</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Weighted-</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Average</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Exercise</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Price</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Per Share</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Outstanding, August 31, 2018</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Granted</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Exercised</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Forfeited</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Expired</p></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Outstanding, August 31, 2019</p></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom" width="1%"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The following table discloses information regarding outstanding and exercisable warrants at August 31, 2019:</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom" colspan="2"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="10"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Outstanding</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="6"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Exercisable</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Exercise</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Prices</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Number of</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Warrant Shares</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Weighted Average</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Exercise Price</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Weighted Average</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Remaining Life</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>(Years)</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Number of</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Warrant Shares</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Weighted Average</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Exercise Price</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">1.92</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom" width="1%"></td></tr><tr bgcolor="#ffffff"><td valign="bottom"></td><td></td><td valign="bottom"></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom"></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">1.92</p></td><td valign="bottom"></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><u>Convertible Notes Payable</u></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">As discussed in <i><u>Note 5 &#8211; Notes Payable</u></i>, on August 27, 2019, the Company signed a $30,000 convertible promissory note with an investor. The note principal and interest are convertible into shares of common stock at a 25% discount to the lowest traded price of the Company&#8217;s common stock during the 10 prior trading days including the day the notice of conversion is received by the Company. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company analyzed the conversion feature and determine it meets the definition of a derivative liability instrument because the conversion rate is variable and therefore does not meet the &#8220;fixed-for-fixed&#8221; criteria outlined in ASC 815-40-15. As a result, the conversion features of the notes are recorded as a derivative liability at fair value and marked-to-market each period with the changes in fair value each period charged or credited to other income (expense).</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Upon issuance, the Company valued the derivative using a Monte Carlo simulation model yielding a total value of $50,277 which was expensed during the year ended August 31, 2019. The Company used the following assumptions upon initial measurement: value per common share of $0.0089, a remaining life of 6 months, an exercise price of $0.00423, a risk-free rate of 1.98% and volatility of 287%. In addition, the Company calculated the derivative discount as the difference between the conversion price and the fair market value of the Company&#8217;s common stock on the date of issuance. The original issue discount aggregated $27,000, and was recorded as derivative liability in the accompanying consolidated balance sheet.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company revalued the derivative liability as of August 31, 2019 and recorded a gain of $16,886 on the change in fair value of derivative liabilities for the year then ended. The Company used the following assumptions upon initial measurement: value per common share of $0.0062, a remaining life of 6 months, an exercise price of $0.00423, a risk-free rate of 1.99% and volatility of 297%.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Derivative Liability Summary</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">As of August 31, 2019 and 2018, respectively, the Company had derivative liabilities totaling $39,381 and $537,889, respectively, in the accompanying consolidated balance sheet, and gain on change in fair value of the derivative liability of $521,784 and $136,123, respectively, in the accompanying consolidated statement of operations.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On or about September 4, 2019, the Company signed an initial letter of intent with NanoPeak Performances, LLC with a subsequent addendum for the sale of the majority of its existing inventory as well as the exclusive license to Gridiron intellectual property.&nbsp; As of December 13, 2019, the two parties are still negotiating the terms of the contemplated transaction.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On, November 19, 2019, the Company issued 228,571 restricted shares of the Company&#8217;s common stock for the four separate common stock subscriptions granted&nbsp;during the year ended August 31, 2018. The stock subscriptions represented total cash proceeds of $160,000, which funded in the year ended December 31, 2018.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On November 25, 2019, the Company signed a convertible promissory note with an investor. The $140,000 note was issued with an original issue discount of $14,000 and bears interest at 10% per year. The note principal and interest are convertible into shares of common stock equal to the lower of 5% per share or 35% discount to the lowest traded price of the Company&#8217;s common stock during the 10 prior trading days including the day the notice of conversion is received by the Company. The note matures on May 25, 2020. The note has a prepayment penalty of 115% of the principal and interest outstanding if repaid more than 30 days after issuance. If the Company defaults on the note, the payment premium increases to 140% of the principal and interest outstanding. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In November 2019, the Company made a strategic decision to expand into the oil extraction business and on or about November 27, 2019, the Company signed a Supply Agreement with a grower to purchase 10,000 pounds of industrial hemp (biomass) and plans on processing the biomass into crude within the next 60 days. The Company anticipates a third party provider will process the biomass and generate 400 liters of crude with minimum 60% total cannabinoids (CBD). The estimated contract price is $100,000.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">On December 13, 2019, the Company signed a Toll Processing Agreement with a corporation to process industrial hemp (biomass) into the CBD product. The contract is valued at $100,000. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company has evaluated all events occurring subsequently to these financial statements through December 17, 2019 and determined there were no other items&nbsp;to disclose.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">This summary of accounting policies for Gridiron is presented to assist in understanding the Company&#8217;s financial statements. The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221; accounting) and have been consistently applied in the preparation of the financial statements.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates. Estimates are used when accounting for fair value calculations related to embedded conversion features of outstanding convertible notes payable.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company had $18,975 and $774,468 of cash and cash equivalents as of August 31, 2019 and 2018. As of August 31, 2018, the Company held cash of $524,468 with one financial institution in excess of the FDIC insured limit of $250,000.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company recognizes revenue under&nbsp;ASU No. 2014-09,&nbsp;<i>&#8220;Revenue from Contracts with Customers (Topic 606),&#8221;</i>&nbsp;(&#8220;ASC 606&#8221;).&nbsp;&nbsp;&nbsp;The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer.&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i)&nbsp;identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">The&nbsp;Company&nbsp;only&nbsp;applies&nbsp;the&nbsp;five-step&nbsp;model&nbsp;to&nbsp;contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company&#8217;s performance obligations are transferred to customers at a point in time, typically upon delivery.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company generally does not use derivative financial instruments to hedge exposures to cash flow or market risks. However, certain other financial instruments, such as warrants and embedded conversion features on the convertible debt, are classified as derivative liabilities due to protection provisions within the agreements.&nbsp;Convertible notes payable&nbsp;are initially recorded at fair value using the Monte Carlo model and subsequently adjusted to fair value at the close of each reporting period. The preferred stock warrants are initially recorded at fair value using the Black Scholes model and subsequently adjusted to fair value at the close of each reporting period. The Company accounts for derivative instruments and debt instruments in accordance with the interpretive guidance of ASC 815, ASU 2017-11, and associated pronouncements related to the classification and measurement of warrants and instruments with conversion features.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Income taxes are accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Use of net operating loss carry forwards for income tax purposes may be limited by Internal Revenue Code section 382 if a change of ownership occurs.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The consolidated financial statements represent the results of Gridiron BioNutrients, Inc, its wholly owned subsidiary, Gridiron Ventures and the assets, processes, and results therefrom. All intercompany transactions and balances have been eliminated. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America. </p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Property and equipment are carried at cost. Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery system for federal income tax purposes. The estimated useful lives of depreciable assets are:</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td></td><td width="2%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="25%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Estimated Useful Lives</b></p></td></tr><tr bgcolor="#cceeff"><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Computer and other equipment</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center">3 years</p></td></tr><tr bgcolor="#ffffff"><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Vehicle</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center">5 years</p></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company&#8217;s property and equipment consisted of the following as of August 31, 2019 and 2018:</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31,</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2019</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31,</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2018</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Computer Equipment</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="10%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">2,467</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="10%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">2,466</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Vehicle</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">2,977</p></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Other</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">3,587</p></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Accumulated depreciation</p></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">(2,446</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">)</p></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">(529</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">)</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Net book value</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">6,585</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">1,937</p></td><td valign="bottom"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">Depreciation expense for the years ended August 31, 2019 and 2018 was $1,916 and $530, respectively.</p></div></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Inventories consist of raw materials, packing materials, bottled water and concentrates, capsules, gummy products, drops and other items and are stated at the lower of cost or net realizable value using the first&#8209;in, first&#8209;out method. The Company periodically assesses the recoverability of its inventory and reduces the carrying value of the inventory when items are determined to be obsolete, defective or in excess of forecasted sales requirements. Inventory write&#8209;downs for excess, defective and obsolete inventory are recorded as a cost of revenue. During August 2019, the Company wrote-off $40,136 of expired inventory, The Company did not have any other write downs of inventory during the years ended August 31, 2019 and 2018. Inventory balances were $203,563 and $53,110 as of August 31, 2019 and 2018, respectively. </p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">A summary of the Company&#8217;s inventory as of August 31, 2019 and 2018 is as follows:</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><b>Type</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31, </b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2019</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31, </b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2018</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Raw Materials</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td valign="bottom" width="9%" align="right">19,477</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td valign="bottom" width="9%" align="right">33,010</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Packaging Materials</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">6,558</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">1,860</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Gridrion Water &amp; Concentrates</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">126,773</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">10,566</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Gridiron Capsules</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">32,044</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">1,233</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Gummy and Other Products</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">18,710</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">6,440</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Total Inventory</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">203,563</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">53,110</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></div></div></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Basic income (loss) per share is calculated by dividing the Company&#8217;s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company&#8217;s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. The conversion of preferred shares, warrants and convertible debt to common shares could potentially bring the number of common shares to a total of approximately 194,000,000. The preferred conversion and warrants would account for approximately 51,394,000 additional shares, the convertible debt would account for approximately 7,096,900 additions shares and an additional 228,571 that have not been issued yet, along with the 135,280,651 outstanding at August 31, 2019. The Company's convertible notes and warrants are excluded from the computation of diluted earnings per share as they are anti-dilutive due to the Company's losses for the years ended August 31, 2019 and 2018.&nbsp;</p></div></div></div></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">As discussed in <i>Note 5 &#8211; Stockholders Equity (Deficit), </i>during the year ended August 31, 2018, the Company issued preferred stock which accrues dividends at a rate of 5% annually. There was $23,695 and $4,192 of dividends payable at August 31, 2019 and August 31, 2018, respectively. The dividends have not been declared and are accrued in the accompanying consolidated balance sheets as a result of a contractual obligation in the Company&#8217;s preferred stock offering.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company&#8217;s policy regarding advertising is to expense advertising when incurred. The Company incurred advertising costs totaling $94,443 and $61,812 during the years ended August 31, 2019 and 2018, respectively. </p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The Company accounts for share-based compensation in accordance with the fair value recognition provisions of the Financial Accounting Standards Board (&#8220;FASB&#8221;) Accounting Standards Codification (&#8220;ASC&#8221;) No. 718 and No. 505. After December 15, 2018, the scope of Topic 718, Compensation&#8212;Stock Compensation, was expanded to include share-based payments issued to nonemployees for goods and services. The Company issues restricted stock to employees and consultants for their services. Cost for these transactions are measured at the fair value of the equity instruments issued at the date of grant. These shares are considered fully vested and the fair market value is recognized as expense in the period granted. The Company recognized consulting expenses and a corresponding increase to additional paid-in-capital related to stock issued for services. For agreements requiring future services, the consulting expense is to be recognized ratably over the requisite service period.&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">There was $18,775 and $-0- of stock-based compensation during the years ended August 31, 2019 and 2018, respectively.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The registrant follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Pursuant to Section 850-10-20 the Related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825&#8211;10&#8211;15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the registrant; (e) management of the registrant; (f) other parties with which the registrant may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, <i>&#8221;Disclosure Update and Simplification,&#8221;</i> amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders&#8217; equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders&#8217; equity presented in the balance sheet must be provided in a note or separate statement. This analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective as of November 5, 2018. The adoption of this final rule did not have a material impact on the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In June 2018, the FASB issued ASU 2018-07, <i>&#8221;Compensation &#8211; Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,&#8221; </i>which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from non-employees. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company elected to early-adopt this standard in the current period; the adoption of this standard did not impact the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In November 2016, the FASB issued ASU 2016-18, &#8221;<i>Statement of Cash Flows (Topic 230): Restricted Cash</i>,&#8221; which provides amendments to current guidance to address the classifications and presentation of changes in restricted cash in the statement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017. The Company adopted the standard effective September&nbsp;1, 2018; the adoption of this standard did not have a material impact on the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In October 2016, the FASB issued ASU 2016-16, &#8220;<i>Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory</i>.&#8221; The amendments in this update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the standard effective&nbsp;September 1, 2018; the adoption of this standard did not have a material impact on the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In June 2016, the FASB issued ASU 2016-13, <i>&#8221;Financial Instruments &#8211; Credit Losses (Topic 326)&#8221; </i>which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In February 2016, the FASB issued ASU 2016-02, &#8220;<i>Leases (Topic 842</i>)<i>,&#8221; </i>which supersedes the guidance in ASC 840, <i>&#8221;Leases</i>.&#8221; The purpose of the new standard is to improve transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Although the standard initially required the modified retrospective approach for adoption, in July 2018, the FASB issued ASU 2018-18, allowing companies to initially apply the new lease requirements at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Early adoption is permitted. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement Reporting, Comprehensive Income (Topic 220). Effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this guidance by the Company is not expected to have a material impact on our condensed financial statements and related disclosures.</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Accounts receivable balances are established for amounts owed to the Company from its customers from the sale of products. The Company closely monitors the collectability of outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts. There were $-0- and $428 outstanding accounts receivable as of August 31, 2019 and 2018, respectively. </p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">During the period ended August 31, 2017, a related party incurred total costs of $2,800 to acquire five trademarks on behalf of the Company. Trademark costs are capitalized as incurred to the extent the Company expects the costs incurred to result in a trademark being awarded. The trademarks are deemed to have an indefinite life and are reviewed for impairment loss considerations annually. At August 31,2019, two of the trademarks for $1,120 were deemed impaired and were written off in the accompanying statement of operations. As of August 31, 2019, and 2018, respectively, the Company had trademarks totaling $1,680 and $2,800, respectively.</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td></td><td width="2%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="25%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Estimated Useful Lives</b></p></td></tr><tr bgcolor="#cceeff"><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Computer and other equipment</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center">3 years</p></td></tr><tr bgcolor="#ffffff"><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Vehicle</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center">5 years</p></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31,</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2019</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31,</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2018</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Computer Equipment</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="10%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">2,467</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="10%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">2,466</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Vehicle</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">2,977</p></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Other</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">3,587</p></td><td valign="bottom"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Accumulated depreciation</p></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">(2,446</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">)</p></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">(529</p></td><td valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">)</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Net book value</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">6,585</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">1,937</p></td><td valign="bottom"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="margin:0px;Font:10pt Times New Roman;padding:0px"><font color="black">&nbsp;</font></p><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><b><font color="black">Type</font></b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b><font color="black">August 31, </font></b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b><font color="black">2019</font></b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b><font color="black">August 31, </font></b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b><font color="black">2018</font></b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><font color="black">Raw Materials</font></p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td valign="bottom" width="9%" align="right">19,477</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td valign="bottom" width="9%" align="right">33,010</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><font color="black">Packaging Materials</font></p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">6,558</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">1,860</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><font color="black">Gridrion Water &amp; Concentrates</font></p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">126,773</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">10,566</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><font color="black">Gridiron Capsules</font></p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">32,044</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right">1,233</td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><font color="black">Gummy and Other Products</font></p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">18,710</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">6,440</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="9%" align="right"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify"><font color="black">Total Inventory</font></p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">203,563</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">53,110</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px"><font color="black">&nbsp;</font></p></div></div></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2019</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2018</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Income tax provision at the federal statutory rate</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">21</p></td><td valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">%</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">21</p></td><td valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">%</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Effect on operating losses</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">(21</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">%)</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">(21</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">%)</p></td></tr><tr bgcolor="#cceeff"><td></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31,</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2019</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>August 31,</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>2018</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Deferred tax asset</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">254,847</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">208,570</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Valuation allowance</p></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">(254,847</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">)</p></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">(208,570</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">)</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Net deferred tax asset</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Warrants</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Weighted-</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Average</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Exercise</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Price</b></p><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="center"><b>Per Share</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Outstanding, August 31, 2018</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Granted</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Exercised</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Forfeited</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Expired</p></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">-</p></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">Outstanding, August 31, 2019</p></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom" width="1%"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></div> <div style="font: 10pt TIMES NEW ROMAN; text-align: justify;"><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td valign="bottom" colspan="2"></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="10"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Outstanding</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="6"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Exercisable</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Exercise</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Prices</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Number of</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Warrant Shares</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Weighted Average</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Exercise Price</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Weighted Average</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Remaining Life</b></p><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="center"><b>(Years)</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Number of</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Warrant Shares</b></p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Weighted Average</b></p><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="center"><b>Exercise Price</b></p></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td width="9%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">1.92</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom" width="1%"></td><td valign="bottom" width="1%"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom" width="1%"></td></tr><tr bgcolor="#ffffff"><td valign="bottom"></td><td></td><td valign="bottom"></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom"></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">1.92</p></td><td valign="bottom"></td><td valign="bottom"></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">8,480,000</p></td><td valign="bottom"></td><td valign="bottom"><p style="margin:0px;Font:10pt Times New Roman;padding:0px" align="justify">&nbsp;</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="justify">$</p></td><td style="BORDER-BOTTOM: 3px double" valign="bottom"><p style="margin:0px 0px 0px 0in;Font:10pt Times New Roman;padding:0px" align="right">0.165</p></td><td valign="bottom"></td></tr></table><p style="margin:0px;Font:10pt Times New Roman;padding:0px">&nbsp;</p></div> Nevada 2017-07-20 70000000 0.57 3972 1105 75907 P3Y P5Y -529 -2446 2467 2466 3587 2977 19477 33010 6558 1860 126773 10566 32044 1233 18710 6440 250000 1916 40136 530 1120 2800 774468 18975 524468 18775 0 0.05 135280651 51394000 7096900 194000000 -24096 0 475 30000 3000 0.1 0.25 2020-02-27 30033 27049 After February 27, 2020, the payment premium increases to 125% of the principal and interest outstanding and if in default, the payment premium increases to 140% of the principal and interest outstanding. 1.1 1014 0.05 38449 0 3435 5725 75000 125000 70000000 5000000 25000000 9000000 9000000 0.125 8480000 228571 The preferred stock is redeemable by the Company at a premium during the first 180 days after issuance and premium after the 180th day from issuance 100000 150000 200000 467043 302586 493001 .0321 .0458 .0458 .0427 .0458 .0337 .0294 .0294 3210 6405 9160 19355 15370 8884 14470 930521 467043 302586 493001 1006000 0.21 0.21 -0.21 -0.21 254847 208570 -254847 -208570 46277 The U.S. Tax Cuts and Jobs Act (TCJA) legislation reduces the U.S. federal corporate income tax rate from 35.0% to 21.0% and is effective June 22, 2018 for the Company. 19104 6500 8480000 8480000 0.165 0.165 8480000 8480000 0.165 0.165 P1Y11M1D P1Y11M1D 8480000 8480000 0.165 0.165 0.09 0.0062 0.0062 16886 504898 8480000 P3Y -674012 P3Y P6M P1Y2M1D 1.95 2.97 2.36 0.165 0.00423 0.165 0.0277 0.0199 0.015 50277 0.0089 P6M 0.0198 2.87 27000 100000 The Company signed a Supply Agreement with a grower to purchase 10,000 pounds of industrial hemp (biomass) and plans on processing the biomass into crude within the next 60 days. 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link:presentationLink link:calculationLink link:definitionLink 000037 - Disclosure - SUBSEQUENT EVENTS (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.LAB 8 gmvp-20190831_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Amendment Flag Entity Voluntary Filers Current Fiscal Year End Date Entity Well Known Seasoned Issuer Entity Small Business Entity Shell Company Entity Emerging Growth Company Entity Current Reporting Status Document Period End Date Entity Filer Category Document Fiscal Period Focus Document Fiscal Year Focus Entity Ex Transition Period Entity Common Stock Shares Outstanding Entity Public Float CONSOLIDATED BALANCE SHEETS Current assets: Cash Accounts receivable Inventory Prepaid expenses Total current assets [Assets, Current] Other assets Equipment, net of accumulated depreciation of $2,446 and $529, respectively Trademarks Total other assets [Other Assets] Total Assets [Assets] Current liabilities: Accounts payable and accrued expenses Derivative liability Note payable, current portion Note payable, convertible net of discount Dividends payable Total current liabilities [Liabilities, Current] Commitments and contingencies Stockholders' equity: Common stock subscribed Preferred stock, $0.001 par value; 25,000,000 shares authorized; 8,480,000 and 8,480,000 issued and outstanding as of August 31, 2019 and August 31, 2018, respectively Common stock, $0.001 par value; 200,000,000 shares authorized; 135,280,651 and 132,637,500 shares issued and outstanding as of August 31, 2019 and August 31, 2018, respectively Additional paid in capital Accumulated deficit Total stockholders' equity [Stockholders' Equity Attributable to Parent] Total Liabilities and Stockholders' equity [Liabilities and Equity] Other assets Accumulated depreciation Stockholders' equity Preferred stock, shares par value Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Common stock, shares par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding CONSOLIDATED STATEMENTS OF OPERATIONS Revenue Cost of Revenue Gross margin Operating expenses: Advertising Consulting fees General and administrative Professional fees Stock compensation expense Impairment Expense Total operating expenses Net operating income (loss) Other (income) expense: Interest expense Gain on change in fair value of derivative liability for preferred warrants and convertible note Debt/Equity issuance costs Total Other income (expense) Loss before provision for taxes Provision for income taxes Net income (loss) Basic and diluted income (loss) per share Weighted average number of common shares outstanding - basic and diluted CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) Statement [Table] Statement [Line Items] Equity Components [Axis] Preferred Stock [Member] Additional Paid-in Capital [Member] Retained Earnings [Member] Common Stock [Member] Common Stock to be Issued [Member] Balance, shares [Shares, Issued] Balance, amount Issuance of common stock for reverse merger, Shares Issuance of common stock for reverse merger, Amount Forgiveness of related party payable Common stock subscribed for cash Dividends on preferred stock accrued Issuance of preferred stock for cash, Shares Net Income (Loss) Issuance of preferred stock for cash, Amount Stock compensation issued, Shares Stock compensation issued, Amount Conversion of stock from dividends payables, Amount Conversion of stock from dividends payables, Shares Balance, shares Balance, amount Statements of Cash Flow Cash flows from operating activities Net income (loss) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation Debt/stock based issue costs Gain on change in fair value of derivative liability Penalties assessed on unpaid dividends Stock based compensation Debt discount interest Impairment expense Changes in operating assets and liabilities: Accounts receivable [Increase (Decrease) in Accounts Receivable] Inventory [Increase (Decrease) in Inventories] Prepaid expenses [Increase (Decrease) in Prepaid Expense] Accounts payable and accrued expenses [Increase (Decrease) in Accounts Payable and Accrued Liabilities] Related party payable Net cash used in operating activities Cash flows from investing activities: Purchase of equipment Net cash used in investing activities Cash flows from financing activities Proceeds from notes payable Proceeds from convertible notes payable Proceeds from common stock subscriptions Proceeds from the sale of preferred stock and warrants Cash contributed in merger Net cash provided by financing activities Net increase (decrease) in cash Cash - beginning of the year Cash - end of the year Supplemental disclosures: Interest paid Income taxes Non-cash transactions: Preferred stock dividends declared Discount on convertible note payable Accounts payable and accrued expenses assumed in reverse merger Forgiveness of related party payable [Debt Instrument, Decrease, Forgiveness] Common shares issued in reverse merger at par value Trademark costs paid by related party ORGANIZATION AND DESCRIPTION OF BUSINESS NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GOING CONCERN NOTE 3 - GOING CONCERN NOTES PAYABLES NOTE 4 - NOTES PAYABLES RELATED PARTY TRANSACTIONS NOTE 5 - RELATED PARTY TRANSACTIONS STOCKHOLDERS EQUITY NOTE 6 - STOCKHOLDERS EQUITY INCOME TAXES NOTE 7 - INCOME TAXES COMMITMENTS AND CONTINGENCIES NOTE 8 - COMMITMENTS AND CONTINGENCIES DERIVATIVE LIABILITY NOTE 9 - DERIVATIVE LIABILITY SUBSEQUENT EVENTS NOTE 10 - SUBSEQUENT EVENTS Basis of presentation Use of Estimates Cash Cash and Cash Equivalents, Policy [Policy Text Block] Revenue Recognition Derivative Liabilities Income Taxes Principals of Consolidation Property and Equipment Inventories Basic Income (Loss) Per Share Dividends Advertising Costs Stock-Based Compensation Related Parties Recently Issued Accounting Standards Accounts Receivable Trademark Property, Plant and Equipment, estimated useful lives Property, Plant and Equipment Schedule of inventories Federal income tax rate Schedule of deferred tax assets Summarizes of stock option activity Summarizes of outstanding and exercisable of stock options Title Of Individual Axis Plan Name [Axis] My Cloudz [Member] Reverse Merger [Member] State of incorporation Date of incorporation Common stock, shares received Common shares issued and outstanding, Percentage Cash [Cash] Accounts payable Related party payable [Accounts Payable, Related Parties] Property Plant And Equipment By Type Axis Computer Equipment [Member] Vehicles [Member] Property and equipment, estimated useful life Other [Member] Accumulated depreciation [Accumulated depreciation] Net book value Property and equipment Category of Item Purchased [Axis] Raw Materials [Member] Packaging Materials [Member] Gridrion Water & Concentrates [Member] Gridiron Capsules [Member] Gummy and Other Products [Member] Inventory FDIC insured limit Depreciation expense Inventory expired Inventory Trademarks Trademark write-off Cash Cash, uninsured amount Dividends payable Advertising costs Stock based compensation [Stock Issued During Period, Value, Issued for Services] Accounts receivable Preferred stock, dividend rate, percentage Common stock shares outstanding Convertible Preferred Stock, Shares Issued upon Conversion Additional unissued outstanding shares Amortization expense Weighted average common shares outstanding Accumulated deficit Working capital deficit Net loss Notes payable Notes payable description Notes payable interest Accrued interest Convertible notes payable Notes discount Notes payable interest rate Discount on conversion into common stock Convertible notes payable maturity date Notes prepayment penelty Unpaid accrued interest Outstanding principle balance Related Party [Axis] President And Director [Member] Due to related party Accelerated Share Repurchases, Date [Axis] Award Date [Axis] Statement Class Of Stock Axis Consulting Agreement [Member] [Consulting Agreement [Member]] On April 5, 2019 [Member] [On April 5, 2019 [Member]] Consulting Agreement [Member] On April 5, 2019 [Member] Series A Preferred Stock [Member] Common stock, par value Common stock, shares authorized Stock issued for aquisation Cash proceeds from subscriptions of common stock Common stock, shares issued Common stock, shares outstanding Preferred Stock shares authorized Dividends Rate Convertible preferred stock, conversion price Number of warrants shares issued Preferred stock, shares issued Preferred stock, shares outstanding Common stock shares subscribed Preferred stock, terms of redemption Common stock shares issuable for servicies Common stock shares issuable par value Common stock shares issuable value [Common stock shares issuable value] Accrued interest converted amount Shares issuable for conversion of accrued interest Issuance of preferred stock for cash Common stock shares issuable value Restricted shares of common stock Income tax provision at the federal statutory rate Effect on operating losses Deferred tax asset Valuation allowance Net deferred tax asset Change in valuation allowance Income tax description Legal Entity Axis Green Money Enterprise [Member] Bank withdrawal Paid back of money to bank Derivative Instrument [Axis] Warrant [Member] Number of warrants/rights, Outstanding, August 31, 2018 Number of warrants/rights, Granted Number of warrants/rights, Exercised Number of warrants/rights, Forfeited Number of warrants/rights, Expired Number of warrants/rights, Outstanding, August 31, 2019 Weighted Average Exercise Price Per Share, Outstanding, August 31, 2018 Weighted Average Exercise Price Per Share, Granted Weighted Average Exercise Price Per Share, Exercised Weighted Average Exercise Price Per Share, Forfeited Weighted Average Exercise Price Per Share, Expired Weighted Average Exercise Price Per Share, Outstanding, August 31, 2019 Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range Axis Stock option [Member] 0.165 [Member] Number of Warrants Shares, Outstanding Weighted Average Exercise Price, Outstanding Weighted average remaining contractual life (Years), Outstanding Number of Outstanding, Exercisable [Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number] Weighted Average Exercise Price, Exercisable [Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price] Restatement [Axis] Derivative [Member] Derivative liability 1 [Member] Derivative liability [Member] Issuance [Member] Convertible notes payable Discount on conversion into common stock Gain on change in fair value of derivative liability Derivative liability Value per common share Detachable warrants Exercisable period Debt issue costs Expected term (in years) Expected volatility rate Exercise price Risk-free interest rate Expected volatility rate [Expected volatility rate] Debt/Equity issuance costs Original issue discount Risk-free interest rate [Debt Conversion, Original Debt, Interest Rate of Debt] Subsequent Event Type [Axis] Related Party Transaction [Axis] Debt Instrument [Axis] Subsequent Event [Member] Toll Processing Agreement [Member] Convertible Promissory Note [Member] Investor [Member] Contract price Convertible promissory note issued Original issue discount [Original issue discount] Interest rate Debt conversion, description Maturity date Prepayment penalty of the principal and interest outstanding, description Principal and interest outstanding, defaults Supply agreement with grower to purchase description Common stock shares subscribed Cash proceeds from subscriptions of common 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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Aug. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

 

This summary of accounting policies for Gridiron is presented to assist in understanding the Company’s financial statements. The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting) and have been consistently applied in the preparation of the financial statements.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates. Estimates are used when accounting for fair value calculations related to embedded conversion features of outstanding convertible notes payable.

 

Cash

 

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company had $18,975 and $774,468 of cash and cash equivalents as of August 31, 2019 and 2018. As of August 31, 2018, the Company held cash of $524,468 with one financial institution in excess of the FDIC insured limit of $250,000.

 

Revenue Recognition

 

The Company recognizes revenue under ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASC 606”).   The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer. 

 

Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

 

The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery.

 

Fair Value of Financial Instruments

 

Fair value of certain of the Company’s financial instruments including cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.

 

Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk.

 

Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:

 

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

 

Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and

 

Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values.

 

Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.

 

As discussed in Note 9 – Derivative Liability, the Company valued its derivative liability using Level 3 inputs as of August 31, 2019 and August 31, 2018. The Company did not identify any additional assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 825-10 as of August 31, 2019 and 2018.

 

Derivative Liabilities

 

The Company generally does not use derivative financial instruments to hedge exposures to cash flow or market risks. However, certain other financial instruments, such as warrants and embedded conversion features on the convertible debt, are classified as derivative liabilities due to protection provisions within the agreements. Convertible notes payable are initially recorded at fair value using the Monte Carlo model and subsequently adjusted to fair value at the close of each reporting period. The preferred stock warrants are initially recorded at fair value using the Black Scholes model and subsequently adjusted to fair value at the close of each reporting period. The Company accounts for derivative instruments and debt instruments in accordance with the interpretive guidance of ASC 815, ASU 2017-11, and associated pronouncements related to the classification and measurement of warrants and instruments with conversion features.

 

Income Taxes

 

Income taxes are accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Use of net operating loss carry forwards for income tax purposes may be limited by Internal Revenue Code section 382 if a change of ownership occurs.

 

Principals of Consolidation

 

The consolidated financial statements represent the results of Gridiron BioNutrients, Inc, its wholly owned subsidiary, Gridiron Ventures and the assets, processes, and results therefrom. All intercompany transactions and balances have been eliminated. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America.

 

Property and Equipment

 

Property and equipment are carried at cost. Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.

 

Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery system for federal income tax purposes. The estimated useful lives of depreciable assets are:

 

 

Estimated Useful Lives

Computer and other equipment

 

3 years

Vehicle

 

5 years

 

The Company’s property and equipment consisted of the following as of August 31, 2019 and 2018:

 

 

August 31,

2019

 

August 31,

2018

 

Computer Equipment

 

$

2,467

 

$

2,466

 

Vehicle

 

2,977

 

-

 

Other

 

3,587

 

-

 

Accumulated depreciation

 

(2,446

)

 

(529

)

Net book value

 

$

6,585

 

$

1,937

 

Depreciation expense for the years ended August 31, 2019 and 2018 was $1,916 and $530, respectively.

 

Inventories

 

Inventories consist of raw materials, packing materials, bottled water and concentrates, capsules, gummy products, drops and other items and are stated at the lower of cost or net realizable value using the first‑in, first‑out method. The Company periodically assesses the recoverability of its inventory and reduces the carrying value of the inventory when items are determined to be obsolete, defective or in excess of forecasted sales requirements. Inventory write‑downs for excess, defective and obsolete inventory are recorded as a cost of revenue. During August 2019, the Company wrote-off $40,136 of expired inventory, The Company did not have any other write downs of inventory during the years ended August 31, 2019 and 2018. Inventory balances were $203,563 and $53,110 as of August 31, 2019 and 2018, respectively.

 

A summary of the Company’s inventory as of August 31, 2019 and 2018 is as follows:

 

Type

 

August 31,

2019

 

August 31,

2018

 

Raw Materials

 

$

19,477

 

$

33,010

 

Packaging Materials

 

6,558

 

1,860

 

Gridrion Water & Concentrates

 

126,773

 

10,566

 

Gridiron Capsules

 

32,044

 

1,233

 

Gummy and Other Products

 

18,710

 

6,440

 

Total Inventory

 

$

203,563

 

$

53,110

 

Basic Income (Loss) Per Share

 

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. The conversion of preferred shares, warrants and convertible debt to common shares could potentially bring the number of common shares to a total of approximately 194,000,000. The preferred conversion and warrants would account for approximately 51,394,000 additional shares, the convertible debt would account for approximately 7,096,900 additions shares and an additional 228,571 that have not been issued yet, along with the 135,280,651 outstanding at August 31, 2019. The Company's convertible notes and warrants are excluded from the computation of diluted earnings per share as they are anti-dilutive due to the Company's losses for the years ended August 31, 2019 and 2018. 

 

Dividends

 

As discussed in Note 5 – Stockholders Equity (Deficit), during the year ended August 31, 2018, the Company issued preferred stock which accrues dividends at a rate of 5% annually. There was $23,695 and $4,192 of dividends payable at August 31, 2019 and August 31, 2018, respectively. The dividends have not been declared and are accrued in the accompanying consolidated balance sheets as a result of a contractual obligation in the Company’s preferred stock offering.

 

Advertising Costs

 

The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred advertising costs totaling $94,443 and $61,812 during the years ended August 31, 2019 and 2018, respectively.

 

Stock-Based Compensation

 

The Company accounts for share-based compensation in accordance with the fair value recognition provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 718 and No. 505. After December 15, 2018, the scope of Topic 718, Compensation—Stock Compensation, was expanded to include share-based payments issued to nonemployees for goods and services. The Company issues restricted stock to employees and consultants for their services. Cost for these transactions are measured at the fair value of the equity instruments issued at the date of grant. These shares are considered fully vested and the fair market value is recognized as expense in the period granted. The Company recognized consulting expenses and a corresponding increase to additional paid-in-capital related to stock issued for services. For agreements requiring future services, the consulting expense is to be recognized ratably over the requisite service period. 

 

There was $18,775 and $-0- of stock-based compensation during the years ended August 31, 2019 and 2018, respectively.

 

Related Parties

 

The registrant follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the Related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the registrant; (e) management of the registrant; (f) other parties with which the registrant may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

Recently Issued Accounting Standards

 

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, ”Disclosure Update and Simplification,” amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. This analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective as of November 5, 2018. The adoption of this final rule did not have a material impact on the financial statements.

 

In June 2018, the FASB issued ASU 2018-07, ”Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from non-employees. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company elected to early-adopt this standard in the current period; the adoption of this standard did not impact the financial statements.

 

In November 2016, the FASB issued ASU 2016-18, ”Statement of Cash Flows (Topic 230): Restricted Cash,” which provides amendments to current guidance to address the classifications and presentation of changes in restricted cash in the statement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017. The Company adopted the standard effective September 1, 2018; the adoption of this standard did not have a material impact on the financial statements.

 

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The amendments in this update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the standard effective September 1, 2018; the adoption of this standard did not have a material impact on the financial statements.

 

In June 2016, the FASB issued ASU 2016-13, ”Financial Instruments – Credit Losses (Topic 326)” which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

 

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which supersedes the guidance in ASC 840, ”Leases.” The purpose of the new standard is to improve transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Although the standard initially required the modified retrospective approach for adoption, in July 2018, the FASB issued ASU 2018-18, allowing companies to initially apply the new lease requirements at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Early adoption is permitted. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

 

In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement Reporting, Comprehensive Income (Topic 220). Effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this guidance by the Company is not expected to have a material impact on our condensed financial statements and related disclosures.

 

Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.

 

Accounts Receivable

 

Accounts receivable balances are established for amounts owed to the Company from its customers from the sale of products. The Company closely monitors the collectability of outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts. There were $-0- and $428 outstanding accounts receivable as of August 31, 2019 and 2018, respectively.

 

Trademark

 

During the period ended August 31, 2017, a related party incurred total costs of $2,800 to acquire five trademarks on behalf of the Company. Trademark costs are capitalized as incurred to the extent the Company expects the costs incurred to result in a trademark being awarded. The trademarks are deemed to have an indefinite life and are reviewed for impairment loss considerations annually. At August 31, 2019, two of the trademarks for $1,120 were deemed impaired and were written off in the accompanying statement of operations. As of August 31, 2019, and 2018, respectively, the Company had trademarks totaling $1,680 and $2,800, respectively.

XML 15 R4.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
12 Months Ended
Aug. 31, 2019
Aug. 31, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS    
Revenue $ 79,246 $ 16,771
Cost of Revenue 129,337 81,025
Gross margin (50,091) (64,254)
Operating expenses:    
Advertising 94,443 61,812
Consulting fees 69,592 72,349
General and administrative 163,129 103,881
Professional fees 270,837 133,822
Stock compensation expense 18,775
Impairment Expense 1,120
Total operating expenses 617,896 371,864
Net operating income (loss) (667,987) (436,118)
Other (income) expense:    
Interest expense 587 1,517
Gain on change in fair value of derivative liability for preferred warrants and convertible note (521,784) (136,123)
Debt/Equity issuance costs 23,277 674,012
Total Other income (expense) (497,920) 539,406
Loss before provision for taxes (170,067) (975,524)
Provision for income taxes
Net income (loss) $ (170,067) $ (975,524)
Basic and diluted income (loss) per share $ (0.00) $ (0.01)
Weighted average number of common shares outstanding - basic and diluted 134,300,278 125,158,048
XML 16 R26.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
GOING CONCERN (Details Narrative) - USD ($)
12 Months Ended
Aug. 31, 2019
Aug. 31, 2018
GOING CONCERN    
Accumulated deficit $ (1,213,559) $ (993,192)
Working capital deficit (24,096)  
Net loss $ (170,067) $ (975,524)
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htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
12 Months Ended
Aug. 31, 2019
Computer Equipment [Member]  
Property and equipment, estimated useful life 3 years
Vehicles [Member]  
Property and equipment, estimated useful life 5 years
XML 19 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Aug. 31, 2019
COMMITMENTS AND CONTINGENCIES  
NOTE 8 - COMMITMENTS AND CONTINGENCIES

The Company could become a party to various legal actions arising in the ordinary course of business. Matters that are probable of unfavorable outcomes to the Company and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, the Company’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. As of the date of this report, there are no pending legal proceedings to which the Company is a party or of which any of their property is the subject, nor are there any such proceedings known to be contemplated by governmental authorities.

 

There was a bank account set up during the third quarter of 2019 to work in conjunction with a marketing company in the name of Green Money Enterprises, LLC. The arrangement allowed for merchant services payments to flow to this account and day to day expenses for marketing and consulting services to be accessed and for Green Money Enterprises to access this account per those expenses. In March 2019, the representative from Green Money Enterprises whom had the authority to access the bank account took various withdrawals from the account totaling $19,104. They were not authorized to take this money from the account and have since paid back $6,500 of the original $19,104. The net amount of these is recorded within the general and administrative expenses in the accompanying consolidated statement of operations. The Company is contemplating legal action against Green Money Enterprises for the money not paid back.

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
NOTES PAYABLES
12 Months Ended
Aug. 31, 2019
NOTES PAYABLES  
NOTE 4 - NOTES PAYABLES

Short-Term Notes Payable

 

As of August 31, 2019, and 2018, the Company had two notes payable with a principal balance of $49,500, owed to two separate noteholders. Each note payable is unsecured with one bearing interest at 5% and the other at 0% respectively. The Company had an outstanding accrued interest balance of $1,014 and $475 as of August 31, 2019 and 2018, respectively, which has been included in the consolidated balance sheets under accounts payable and accrued expenses.

 

Convertible Notes Payable

 

On August 27, 2019, the Company signed a convertible promissory note with an investor. The $30,000 note was issued with an original issue discount of $3,000 and bears interest at 10% per year. The note principal and interest are convertible into shares of common stock at a 25% discount to the lowest traded price of the Company’s common stock during the 10 prior trading days including the day the notice of conversion is received by the Company. The note matures on February 27, 2020. The note has a prepayment penalty of 110% of the principal and interest outstanding if repaid before 180 days from issuance. After February 27, 2020, the payment premium increases to 125% of the principal and interest outstanding and if in default, the payment premium increases to 140% of the principal and interest outstanding. The original issue discount is amortized through the term of the note. The unpaid balance including accrued interest was $30,033 at August 31, 2019. At August 31, 2019, the outstanding principle balances, net of original issue debt discount of $2,951 was $27,049.

 

The conversion features meets the definition of a derivative liability instrument because the conversion rate is variable and therefore does not meet the “fixed-for-fixed” criteria outlined in ASC 815-40-15. As a result, the conversion features of the notes are recorded as a derivative liability at fair value and marked-to-market each period with the changes in fair value each period charged or credited to other income (expense). See Note 9 - Derivative Liability, for a further discussion.

 

The Company recorded interest expense on the original issue debt discount of $49 for the year ended August 31, 2019, in the accompanying consolidated statements of operations.

XML 21 R18.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Aug. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Property, Plant and Equipment, estimated useful lives

 

 

Estimated Useful Lives

Computer and other equipment

 

3 years

Vehicle

 

5 years

 

Property, Plant and Equipment

 

 

August 31,

2019

 

August 31,

2018

 

Computer Equipment

 

$

2,467

 

$

2,466

 

Vehicle

 

2,977

 

-

 

Other

 

3,587

 

-

 

Accumulated depreciation

 

(2,446

)

 

(529

)

Net book value

 

$

6,585

 

$

1,937

 

Schedule of inventories

 

Type

 

August 31,

2019

 

 

August 31,

2018

 

Raw Materials

 

$19,477

 

 

$33,010

 

Packaging Materials

 

 

6,558

 

 

 

1,860

 

Gridrion Water & Concentrates

 

 

126,773

 

 

 

10,566

 

Gridiron Capsules

 

 

32,044

 

 

 

1,233

 

Gummy and Other Products

 

 

18,710

 

 

 

6,440

 

 

 

 

 

 

 

 

 

 

Total Inventory

 

$203,563

 

 

$53,110

 

 

XML 22 R33.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
COMMITMENTS AND CONTINGENCIES (Detail Narrative) - Green Money Enterprise [Member]
Aug. 31, 2019
USD ($)
Bank withdrawal $ 19,104
Paid back of money to bank $ 6,500
XML 23 R37.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
SUBSEQUENT EVENTS (Details Narrative) - USD ($)
1 Months Ended
Dec. 13, 2019
Nov. 27, 2019
Nov. 25, 2019
Aug. 27, 2019
Nov. 19, 2019
Aug. 31, 2019
Dec. 31, 2018
Aug. 31, 2018
Maturity date       Feb. 27, 2020        
Common stock shares subscribed               228,571
Cash proceeds from subscriptions of common stock           $ 160,000   $ 160,000
Subsequent Event [Member]                
Contract price $ 100,000            
Supply agreement with grower to purchase description   The Company signed a Supply Agreement with a grower to purchase 10,000 pounds of industrial hemp (biomass) and plans on processing the biomass into crude within the next 60 days. The Company anticipates a third-party provider will process the biomass and generate 400 liters of crude with minimum 60% total cannabinoids (CBD).            
Common stock shares subscribed         228,571    
Cash proceeds from subscriptions of common stock           $ 160,000  
Subsequent Event [Member] | Toll Processing Agreement [Member]                
Contract price $ 100,000            
Subsequent Event [Member] | Investor [Member] | Convertible Promissory Note [Member]                
Convertible promissory note issued     140,000          
Original issue discount     $ 14,000          
Interest rate     10.00%          
Debt conversion, description     The note principal and interest are convertible into shares of common stock equal to the lower of 5% per share or 35% discount to the lowest traded price of the Company’s common stock during the 10 prior trading days including the day the notice of conversion is received by the Company.          
Maturity date     May 25, 2020          
Prepayment penalty of the principal and interest outstanding, description     The note has a prepayment penalty of 115% of the principal and interest outstanding if repaid more than 30 days after issuance.          
Principal and interest outstanding, defaults     140.00%          
XML 24 R19.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
INCOME TAXES (Tables)
12 Months Ended
Aug. 31, 2019
INCOME TAXES  
Federal income tax rate

 

 

2019

 

2018

 

Income tax provision at the federal statutory rate

 

21

%

 

21

%

Effect on operating losses

 

(21

%)

 

(21

%)

 

-

 

-

 

Schedule of deferred tax assets

 

 

August 31,

2019

 

August 31,

2018

 

Deferred tax asset

 

$

254,847

 

$

208,570

 

Valuation allowance

 

(254,847

)

 

(208,570

)

Net deferred tax asset

 

$

-

 

$

-

 

XML 25 R15.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
DERIVATIVE LIABILITY
12 Months Ended
Aug. 31, 2019
DERIVATIVE LIABILITY  
NOTE 9 - DERIVATIVE LIABILITY

Preferred Stock Warrants

 

As discussed in Note 6 – Stockholders’ Equity, the Company issued a total of 8,480,000 warrants to purchase common stock as part of its preferred stock offering. The warrants are exercisable for a period of three years at $0.165 per share. Additionally, the warrant holder is entitled to a cashless exercise after six months from issuance in which the holder is entitled to receive a number of shares equal to: [A] the number of outstanding warrant shares under the original issuance multiplied by [B] the greater of the trailing five day volume weighted average price less [A] the number of outstanding warrant shares under the original issuance multiplied by [C] the exercise price of the warrant under the original issuance divided by [D] the lesser of the arithmetic average of the volume weighted average price during the five trailing trading days or the volume weighted average price for the trading day immediately prior to the cashless exercise election. For clarity, the resulting formula is [(A x B) – (A x C)] / D.

 

The Company analyzed the conversion features of the cashless exercise feature in the warrants issued for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded features should be classified as a derivative liability because the exercise price of these warrants are subject to a variable rate. The Company has determined that warrants are not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with ASC 815, the Company has recorded a derivative liability.

 

Upon issuance, the Company valued the derivative using a Black-Scholes model yielding a total value of $674,012 which was expensed during the year ended August 31, 2018. The Company used the following assumptions upon initial measurement: value per common share of $0.09, a remaining life of 3.0 years, an exercise price of $0.165, a risk-free rate of 2.77% and volatility of 195%.

 

The Company revalued the derivative liability as of August 31, 2019 and recorded a gain of $504,898 on the change in fair value of derivative liabilities for the year then ended. The Company used the following assumptions upon initial measurement: value per common share of $0.0062, a remaining life of 1.92 years, an exercise price of $0.165, a risk-free rate of 1.5% and volatility of 236%.

 

The following table summarizes all stock warrant activity for the twelve months ended August 31, 2019:

 

 

Warrants

 

Weighted-

Average

Exercise

Price

Per Share

 

Outstanding, August 31, 2018

 

8,480,000

 

$

0.165

 

Granted

 

-

 

-

 

Exercised

 

-

 

-

 

Forfeited

 

-

 

-

 

Expired

 

-

 

-

 

Outstanding, August 31, 2019

 

8,480,000

 

$

0.165

 

The following table discloses information regarding outstanding and exercisable warrants at August 31, 2019:

 

 

Outstanding

 

Exercisable

 

Exercise

Prices

 

Number of

Warrant Shares

 

Weighted Average

Exercise Price

 

Weighted Average

Remaining Life

(Years)

 

Number of

Warrant Shares

 

Weighted Average

Exercise Price

 

$

0.165

 

$

8,480,000

 

$

0.165

 

1.92

 

8,480,000

 

$

0.165

 

8,480,000

 

$

0.165

 

1.92

 

8,480,000

 

$

0.165

 

Convertible Notes Payable

 

As discussed in Note 5 – Notes Payable, on August 27, 2019, the Company signed a $30,000 convertible promissory note with an investor. The note principal and interest are convertible into shares of common stock at a 25% discount to the lowest traded price of the Company’s common stock during the 10 prior trading days including the day the notice of conversion is received by the Company.

 

The Company analyzed the conversion feature and determine it meets the definition of a derivative liability instrument because the conversion rate is variable and therefore does not meet the “fixed-for-fixed” criteria outlined in ASC 815-40-15. As a result, the conversion features of the notes are recorded as a derivative liability at fair value and marked-to-market each period with the changes in fair value each period charged or credited to other income (expense).

 

Upon issuance, the Company valued the derivative using a Monte Carlo simulation model yielding a total value of $50,277 which was expensed during the year ended August 31, 2019. The Company used the following assumptions upon initial measurement: value per common share of $0.0089, a remaining life of 6 months, an exercise price of $0.00423, a risk-free rate of 1.98% and volatility of 287%. In addition, the Company calculated the derivative discount as the difference between the conversion price and the fair market value of the Company’s common stock on the date of issuance. The original issue discount aggregated $27,000, and was recorded as derivative liability in the accompanying consolidated balance sheet.

 

The Company revalued the derivative liability as of August 31, 2019 and recorded a gain of $16,886 on the change in fair value of derivative liabilities for the year then ended. The Company used the following assumptions upon initial measurement: value per common share of $0.0062, a remaining life of 6 months, an exercise price of $0.00423, a risk-free rate of 1.99% and volatility of 297%.

 

Derivative Liability Summary

 

As of August 31, 2019 and 2018, respectively, the Company had derivative liabilities totaling $39,381 and $537,889, respectively, in the accompanying consolidated balance sheet, and gain on change in fair value of the derivative liability of $521,784 and $136,123, respectively, in the accompanying consolidated statement of operations.

XML 26 R11.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
RELATED PARTY TRANSACTIONS
12 Months Ended
Aug. 31, 2019
RELATED PARTY TRANSACTIONS  
NOTE 5 - RELATED PARTY TRANSACTIONS

As at August 31, 2019 and 2018, the Company owed $38,449 and -0-, respectively to its President and Director. The balance due is recorded in accounts payable in the accompanying consolidated balance sheets.

XML 27 R32.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
INCOME TAXES (Details Narrative)
12 Months Ended
Aug. 31, 2019
USD ($)
INCOME TAXES  
Change in valuation allowance $ 46,277
Income tax description The U.S. Tax Cuts and Jobs Act (TCJA) legislation reduces the U.S. federal corporate income tax rate from 35.0% to 21.0% and is effective June 22, 2018 for the Company.
XML 28 R36.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
DERIVATIVE LIABILITY (Details Narrative) - USD ($)
12 Months Ended
Aug. 31, 2019
Aug. 31, 2018
Aug. 27, 2019
Convertible notes payable     $ 30,000
Discount on conversion into common stock     25.00%
Gain on change in fair value of derivative liability $ (521,784) $ (136,123)  
Derivative liability $ 39,381 537,889  
Value per common share $ 0.125    
Debt issue costs $ (23,276) (674,012)  
Debt/Equity issuance costs $ 23,277 $ 674,012  
Issuance [Member]      
Value per common share $ 0.0089    
Expected term (in years) 6 months    
Expected volatility rate 287.00%    
Debt/Equity issuance costs $ 50,277    
Original issue discount $ 27,000    
Risk-free interest rate 1.98%    
Derivative [Member]      
Value per common share   $ 0.09  
Detachable warrants   8,480,000  
Exercisable period 3 years  
Debt issue costs $ 674,012  
Expected term (in years) 3 years  
Expected volatility rate   195.00%  
Exercise price   $ 0.165  
Risk-free interest rate   2.77%  
Derivative liability 1 [Member]      
Gain on change in fair value of derivative liability $ 16,886    
Value per common share $ 0.0062    
Expected term (in years) 6 months    
Expected volatility rate 297.00%    
Exercise price $ 0.00423    
Risk-free interest rate 1.99%    
Derivative liability [Member]      
Gain on change in fair value of derivative liability $ 504,898    
Value per common share $ 0.0062    
Expected term (in years) 1 year 2 months 1 day    
Expected volatility rate 236.00%    
Exercise price $ 0.165    
Risk-free interest rate 1.50%    
XML 30 R1.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Document and Entity Information - USD ($)
12 Months Ended
Aug. 31, 2019
Dec. 12, 2019
Feb. 28, 2019
Document And Entity Information      
Entity Registrant Name GRIDIRON BIONUTRIENTS, INC.    
Entity Central Index Key 0001629205    
Document Type 10-K    
Amendment Flag false    
Entity Voluntary Filers No    
Current Fiscal Year End Date --08-31    
Entity Well Known Seasoned Issuer No    
Entity Small Business true    
Entity Shell Company false    
Entity Emerging Growth Company true    
Entity Current Reporting Status Yes    
Document Period End Date Aug. 31, 2019    
Entity Filer Category Non-accelerated Filer    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2019    
Entity Ex Transition Period false    
Entity Common Stock Shares Outstanding   135,509,220  
Entity Public Float     $ 1,228,814
XML 31 R5.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)
Total
Preferred Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Common Stock [Member]
Common Stock to be Issued [Member]
Balance, shares at Aug. 31, 2017 62,637,500
Balance, amount at Aug. 31, 2017 $ (13,276) $ (62,438) $ (13,476) $ 62,638
Issuance of common stock for reverse merger, Shares       70,000,000  
Issuance of common stock for reverse merger, Amount (73,040) (143,040)   $ 70,000  
Forgiveness of related party payable 75,907 75,907      
Common stock subscribed for cash 160,000       160,000
Dividends on preferred stock accrued (4,192)   (4,192)    
Issuance of preferred stock for cash, Shares   8,480,000        
Net Income (Loss) (975,524) $ (975,524)
Issuance of preferred stock for cash, Amount $ 1,006,000 $ 8,480 $ 997,520      
Balance, shares at Aug. 31, 2018 8,480,000 132,637,500
Balance, amount at Aug. 31, 2018 $ 175,875 $ 8,480 $ (993,192) $ 132,638 $ 160,000
Dividends on preferred stock accrued (50,300)   (50,300)    
Net Income (Loss) (170,067) $ (170,067)
Stock compensation issued, Shares       450,000  
Stock compensation issued, Amount 18,775 18,325   450  
Conversion of stock from dividends payables, Amount $ 58,078 $ 55,885   2,193  
Conversion of stock from dividends payables, Shares       $ 2,193,151  
Balance, shares at Aug. 31, 2019 8,480,000 135,280,651
Balance, amount at Aug. 31, 2019 $ 32,361 $ 8,480 $ 942,159 $ (1,213,559) $ 135,281 $ 160,000
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GOING CONCERN
12 Months Ended
Aug. 31, 2019
GOING CONCERN  
NOTE 3 - GOING CONCERN

The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company had a net loss of $170,067 for the year ended August 31, 2019. The Company has working capital deficit of $24,096 and an accumulated deficit of $1,213,559 as of August 31, 2019. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The ability of the Company to fully commence its operations is dependent upon, among other things, obtaining additional financing to continue operations, and execution of its business plan. In response to these concerns, management plans to fund operations through additional debt and equity financing. Debt instruments may be convertible or non-convertible and will vary based on the Company’s needs and financing options available at such times. There can be no assurance that management’s plan will be successful.

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NOTES PAYABLES (Details Narrative) - USD ($)
1 Months Ended
Aug. 27, 2019
Aug. 31, 2019
Aug. 31, 2018
NOTES PAYABLES      
Notes payable   $ 49,500 $ 49,500
Notes payable description After February 27, 2020, the payment premium increases to 125% of the principal and interest outstanding and if in default, the payment premium increases to 140% of the principal and interest outstanding.    
Notes payable interest   5.00% 0.00%
Accrued interest   $ 1,014 $ 475
Convertible notes payable $ 30,000    
Notes discount $ 3,000    
Notes payable interest rate 10.00%    
Discount on conversion into common stock 25.00%    
Convertible notes payable maturity date Feb. 27, 2020    
Notes prepayment penelty 110.00%    
Unpaid accrued interest   30,033  
Outstanding principle balance $ 27,049  
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)
Aug. 31, 2019
Aug. 31, 2018
Accumulated depreciation $ (2,446) $ (529)
Net book value 6,585 1,937
Computer Equipment [Member]    
Property and equipment 2,467 2,466
Vehicles [Member]    
Property and equipment 2,977
Other [Member]    
Property and equipment $ 3,587
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INCOME TAXES (Details)
12 Months Ended
Aug. 31, 2019
Aug. 31, 2018
INCOME TAXES    
Income tax provision at the federal statutory rate 21.00% 21.00%
Effect on operating losses (21.00%) (21.00%)
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DERIVATIVE LIABILITY (Details) - Warrant [Member]
12 Months Ended
Aug. 31, 2019
$ / shares
shares
Number of warrants/rights, Outstanding, August 31, 2018 8,480,000
Number of warrants/rights, Granted
Number of warrants/rights, Exercised
Number of warrants/rights, Forfeited
Number of warrants/rights, Expired
Number of warrants/rights, Outstanding, August 31, 2019 8,480,000
Weighted Average Exercise Price Per Share, Outstanding, August 31, 2018 | $ / shares $ 0.165
Weighted Average Exercise Price Per Share, Granted | $ / shares
Weighted Average Exercise Price Per Share, Forfeited | $ / shares
Weighted Average Exercise Price Per Share, Expired | $ / shares
Weighted Average Exercise Price Per Share, Outstanding, August 31, 2019 | $ / shares $ 0.165
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Aug. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Basis of presentation

This summary of accounting policies for Gridiron is presented to assist in understanding the Company’s financial statements. The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting) and have been consistently applied in the preparation of the financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates. Estimates are used when accounting for fair value calculations related to embedded conversion features of outstanding convertible notes payable.

Cash

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company had $18,975 and $774,468 of cash and cash equivalents as of August 31, 2019 and 2018. As of August 31, 2018, the Company held cash of $524,468 with one financial institution in excess of the FDIC insured limit of $250,000.

Revenue Recognition

The Company recognizes revenue under ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASC 606”).   The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer. 

 

Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

 

The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery.

Derivative Liabilities

The Company generally does not use derivative financial instruments to hedge exposures to cash flow or market risks. However, certain other financial instruments, such as warrants and embedded conversion features on the convertible debt, are classified as derivative liabilities due to protection provisions within the agreements. Convertible notes payable are initially recorded at fair value using the Monte Carlo model and subsequently adjusted to fair value at the close of each reporting period. The preferred stock warrants are initially recorded at fair value using the Black Scholes model and subsequently adjusted to fair value at the close of each reporting period. The Company accounts for derivative instruments and debt instruments in accordance with the interpretive guidance of ASC 815, ASU 2017-11, and associated pronouncements related to the classification and measurement of warrants and instruments with conversion features.

Income Taxes

Income taxes are accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Use of net operating loss carry forwards for income tax purposes may be limited by Internal Revenue Code section 382 if a change of ownership occurs.

Principals of Consolidation

The consolidated financial statements represent the results of Gridiron BioNutrients, Inc, its wholly owned subsidiary, Gridiron Ventures and the assets, processes, and results therefrom. All intercompany transactions and balances have been eliminated. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America.

Property and Equipment

Property and equipment are carried at cost. Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.

 

Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery system for federal income tax purposes. The estimated useful lives of depreciable assets are:

 

 

Estimated Useful Lives

Computer and other equipment

 

3 years

Vehicle

 

5 years

 

The Company’s property and equipment consisted of the following as of August 31, 2019 and 2018:

 

 

August 31,

2019

 

August 31,

2018

 

Computer Equipment

 

$

2,467

 

$

2,466

 

Vehicle

 

2,977

 

-

 

Other

 

3,587

 

-

 

Accumulated depreciation

 

(2,446

)

 

(529

)

Net book value

 

$

6,585

 

$

1,937

 

Depreciation expense for the years ended August 31, 2019 and 2018 was $1,916 and $530, respectively.

Inventories

Inventories consist of raw materials, packing materials, bottled water and concentrates, capsules, gummy products, drops and other items and are stated at the lower of cost or net realizable value using the first‑in, first‑out method. The Company periodically assesses the recoverability of its inventory and reduces the carrying value of the inventory when items are determined to be obsolete, defective or in excess of forecasted sales requirements. Inventory write‑downs for excess, defective and obsolete inventory are recorded as a cost of revenue. During August 2019, the Company wrote-off $40,136 of expired inventory, The Company did not have any other write downs of inventory during the years ended August 31, 2019 and 2018. Inventory balances were $203,563 and $53,110 as of August 31, 2019 and 2018, respectively.

 

A summary of the Company’s inventory as of August 31, 2019 and 2018 is as follows:

 

Type

 

August 31,

2019

 

 

August 31,

2018

 

Raw Materials

 

$19,477

 

 

$33,010

 

Packaging Materials

 

 

6,558

 

 

 

1,860

 

Gridrion Water & Concentrates

 

 

126,773

 

 

 

10,566

 

Gridiron Capsules

 

 

32,044

 

 

 

1,233

 

Gummy and Other Products

 

 

18,710

 

 

 

6,440

 

 

 

 

 

 

 

 

 

 

Total Inventory

 

$203,563

 

 

$53,110

 

 

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. The conversion of preferred shares, warrants and convertible debt to common shares could potentially bring the number of common shares to a total of approximately 194,000,000. The preferred conversion and warrants would account for approximately 51,394,000 additional shares, the convertible debt would account for approximately 7,096,900 additions shares and an additional 228,571 that have not been issued yet, along with the 135,280,651 outstanding at August 31, 2019. The Company's convertible notes and warrants are excluded from the computation of diluted earnings per share as they are anti-dilutive due to the Company's losses for the years ended August 31, 2019 and 2018. 

Dividends

As discussed in Note 5 – Stockholders Equity (Deficit), during the year ended August 31, 2018, the Company issued preferred stock which accrues dividends at a rate of 5% annually. There was $23,695 and $4,192 of dividends payable at August 31, 2019 and August 31, 2018, respectively. The dividends have not been declared and are accrued in the accompanying consolidated balance sheets as a result of a contractual obligation in the Company’s preferred stock offering.

Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred advertising costs totaling $94,443 and $61,812 during the years ended August 31, 2019 and 2018, respectively.

Stock-Based Compensation

The Company accounts for share-based compensation in accordance with the fair value recognition provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 718 and No. 505. After December 15, 2018, the scope of Topic 718, Compensation—Stock Compensation, was expanded to include share-based payments issued to nonemployees for goods and services. The Company issues restricted stock to employees and consultants for their services. Cost for these transactions are measured at the fair value of the equity instruments issued at the date of grant. These shares are considered fully vested and the fair market value is recognized as expense in the period granted. The Company recognized consulting expenses and a corresponding increase to additional paid-in-capital related to stock issued for services. For agreements requiring future services, the consulting expense is to be recognized ratably over the requisite service period. 

 

There was $18,775 and $-0- of stock-based compensation during the years ended August 31, 2019 and 2018, respectively.

Related Parties

The registrant follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the Related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the registrant; (e) management of the registrant; (f) other parties with which the registrant may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

Recently Issued Accounting Standards

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, ”Disclosure Update and Simplification,” amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. This analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective as of November 5, 2018. The adoption of this final rule did not have a material impact on the financial statements.

 

In June 2018, the FASB issued ASU 2018-07, ”Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from non-employees. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company elected to early-adopt this standard in the current period; the adoption of this standard did not impact the financial statements.

 

In November 2016, the FASB issued ASU 2016-18, ”Statement of Cash Flows (Topic 230): Restricted Cash,” which provides amendments to current guidance to address the classifications and presentation of changes in restricted cash in the statement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017. The Company adopted the standard effective September 1, 2018; the adoption of this standard did not have a material impact on the financial statements.

 

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The amendments in this update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the standard effective September 1, 2018; the adoption of this standard did not have a material impact on the financial statements.

 

In June 2016, the FASB issued ASU 2016-13, ”Financial Instruments – Credit Losses (Topic 326)” which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

 

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which supersedes the guidance in ASC 840, ”Leases.” The purpose of the new standard is to improve transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Although the standard initially required the modified retrospective approach for adoption, in July 2018, the FASB issued ASU 2018-18, allowing companies to initially apply the new lease requirements at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Early adoption is permitted. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

 

In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement Reporting, Comprehensive Income (Topic 220). Effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this guidance by the Company is not expected to have a material impact on our condensed financial statements and related disclosures.

 

Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.

Accounts Receivable

Accounts receivable balances are established for amounts owed to the Company from its customers from the sale of products. The Company closely monitors the collectability of outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts. There were $-0- and $428 outstanding accounts receivable as of August 31, 2019 and 2018, respectively.

Trademark

During the period ended August 31, 2017, a related party incurred total costs of $2,800 to acquire five trademarks on behalf of the Company. Trademark costs are capitalized as incurred to the extent the Company expects the costs incurred to result in a trademark being awarded. The trademarks are deemed to have an indefinite life and are reviewed for impairment loss considerations annually. At August 31,2019, two of the trademarks for $1,120 were deemed impaired and were written off in the accompanying statement of operations. As of August 31, 2019, and 2018, respectively, the Company had trademarks totaling $1,680 and $2,800, respectively.

XML 40 R13.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
INCOME TAXES
12 Months Ended
Aug. 31, 2019
INCOME TAXES  
NOTE 7 - INCOME TAXES

The Company’s policy is to provide for deferred income taxes based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect when the differences are expected to reverse. The U.S. Tax Cuts and Jobs Act (TCJA) legislation reduces the U.S. federal corporate income tax rate from 35.0% to 21.0% and is effective June 22, 2018 for the Company. We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. When it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period.

 

The Company is not aware of any uncertain tax position that, if challenged, would have a material effect on the financial statements for the year ended August 31, 2019 or during the prior three years applicable under FASB ASC 740. We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the consolidated balance sheet. All tax returns for the Company remain open for examination.

 

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows:

 

 

2019

 

2018

 

Income tax provision at the federal statutory rate

 

21

%

 

21

%

Effect on operating losses

 

(21

%)

 

(21

%)

 

-

 

-

 

The net deferred tax assets consist of the following:

 

 

August 31,

2019

 

August 31,

2018

 

Deferred tax asset

 

$

254,847

 

$

208,570

 

Valuation allowance

 

(254,847

)

 

(208,570

)

Net deferred tax asset

 

$

-

 

$

-

 

The change in the valuation allowance for the year ended August 31, 2019 was an increase of $46,277.

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M A0#% @ JHF13U<).$GS50 0G\# !4 ( !&1X! &=M I=G M,C Q.3 X,S%?<')E+GAM;%!+!08 !@ & (H! _= $ ! end XML 43 R3.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
Aug. 31, 2019
Aug. 31, 2018
Other assets    
Accumulated depreciation $ 2,446 $ 529
Stockholders' equity    
Preferred stock, shares par value $ 0.001 $ 0.001
Preferred stock, shares authorized 25,000,000 25,000,000
Preferred stock, shares issued 8,480,000 8,480,000
Preferred stock, shares outstanding 8,480,000 8,480,000
Common stock, shares par value $ 0.001 $ 0.001
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 135,280,651 132,637,500
Common stock, shares outstanding 135,280,651 132,637,500

XML 44 R7.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
ORGANIZATION AND DESCRIPTION OF BUSINESS
12 Months Ended
Aug. 31, 2019
ORGANIZATION AND DESCRIPTION OF BUSINESS  
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Gridiron BioNutrients, Inc. (the “Company” or “Gridiron”) was formed under the laws of the state of Nevada on July 20, 2017 to develop and distribute a retail line of health water infused with probiotics and minerals. The Company has elected an August 31st year end.

 

Acquisition and Reverse Merger

 

On October 10, 2017, the Company completed a reverse merger with My Cloudz, Inc. (“My Cloudz”) pursuant to which the Company merged into My Cloudz on October 10, 2017. Under the terms of the merger, the Company shareholders received 70,000,000 common shares of My Cloudz common stock such that the Company shareholders received approximately 57% of the total common shares issued and outstanding following the merger. Due to the nominal assets and limited operations of My Cloudz prior to the merger, the transaction was accorded reverse recapitalization accounting treatment under the provision of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 805 whereby the Company became the accounting acquirer (legal acquiree) and My Cloudz was treated as the accounting acquiree (legal acquirer). The historical financial records of the Company are those of the accounting acquirer (GridIron) adjusted to reflect the legal capital of the accounting acquiree (My Cloudz). As the transaction was treated as a recapitalization, no intangibles, including goodwill, were recognized. Concurrent with the effective date of the reverse recapitalization transaction, the Company adopted the fiscal year end of the accounting acquirer of August 31.

 

At the date of acquisition, My Cloudz had $3,972 of cash, $1,105 of accounts payable and a related party payable of $75,907. Book values for all assets acquired and liabilities assumed equaled fair values as of the date of acquisition.

XML 45 R25.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
12 Months Ended
Aug. 31, 2019
Aug. 31, 2018
Aug. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      
FDIC insured limit   $ 250,000  
Depreciation expense $ 1,916 530  
Inventory expired 40,136    
Inventory 203,563 53,110  
Trademarks 1,680 2,800 $ 2,800
Trademark write-off 1,120    
Cash 18,975 774,468  
Cash, uninsured amount   524,468  
Dividends payable 23,695 4,192  
Advertising costs 94,443 61,812  
Stock based compensation 18,775 0  
Accounts receivable $ 428  
Preferred stock, dividend rate, percentage 5.00%    
Common stock shares outstanding 135,280,651  
Convertible Preferred Stock, Shares Issued upon Conversion 51,394,000    
Additional unissued outstanding shares 7,096,900    
Amortization expense    
Weighted average common shares outstanding 194,000,000    
XML 46 R21.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - USD ($)
12 Months Ended
Aug. 31, 2019
Aug. 31, 2018
Oct. 10, 2017
State of incorporation Nevada    
Date of incorporation Jul. 20, 2017    
Cash $ 18,975 $ 774,468  
My Cloudz [Member] | Reverse Merger [Member]      
Common stock, shares received     70,000,000
Common shares issued and outstanding, Percentage     57.00%
Cash     $ 3,972
Accounts payable     1,105
Related party payable     $ 75,907
XML 47 R29.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
STOCKHOLDERS EQUITY (Details Narrative) - USD ($)
1 Months Ended 12 Months Ended
Mar. 11, 2019
Feb. 07, 2019
Mar. 01, 2019
Feb. 27, 2019
Feb. 14, 2019
Jan. 30, 2019
Aug. 31, 2019
Aug. 31, 2018
Aug. 01, 2018
Jul. 31, 2018
Jul. 30, 2018
Jul. 16, 2018
Common stock, par value             $ 0.001 $ 0.001      
Common stock, shares authorized             200,000,000 200,000,000        
Stock issued for aquisation     70,000,000        
Cash proceeds from subscriptions of common stock             $ 160,000 $ 160,000        
Common stock, shares issued             135,280,651 132,637,500        
Common stock, shares outstanding             135,280,651 132,637,500        
Preferred Stock shares authorized             25,000,000 25,000,000 25,000,000     5,000,000
Dividends Rate             5.00%          
Convertible preferred stock, conversion price             $ 0.125          
Number of warrants shares issued               8,480,000        
Preferred stock, shares issued             8,480,000 8,480,000        
Preferred stock, shares outstanding             8,480,000 8,480,000        
Common stock shares subscribed               228,571        
Preferred stock, terms of redemption             The preferred stock is redeemable by the Company at a premium during the first 180 days after issuance and premium after the 180th day from issuance          
Common stock shares issuable for servicies 150,000 200,000 493,001 302,586 467,043 100,000            
Common stock shares issuable par value $ .0427 $ .0458 $ .0294 $ .0294 $ .0337 $ .0321            
Common stock shares issuable value $ 6,405 $ 9,160       $ 3,210            
Accrued interest converted amount $ 19,355   $ 14,470 $ 8,884 $ 15,370            
Shares issuable for conversion of accrued interest 930,521   493,001 302,586 467,043            
Issuance of preferred stock for cash               $ 1,006,000        
Series A Preferred Stock [Member]                        
Preferred Stock shares authorized                   9,000,000 9,000,000  
Consulting Agreement [Member] | On April 5, 2019 [Member]                        
Common stock shares issuable par value   $ .0458                    
Common stock shares issuable value   $ 3,435                    
Restricted shares of common stock   75,000                    
Consulting Agreement [Member] | On April 5, 2019 [Member]                        
Common stock shares issuable par value   $ .0458                    
Common stock shares issuable value   $ 5,725                    
Restricted shares of common stock   125,000                    
XML 48 R2.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
CONSOLIDATED BALANCE SHEETS - USD ($)
Aug. 31, 2019
Aug. 31, 2018
Current assets:    
Cash $ 18,975 $ 774,468
Accounts receivable 428
Inventory 203,563 53,110
Prepaid expenses 25,611 30,000
Total current assets 248,149 858,006
Other assets    
Equipment, net of accumulated depreciation of $2,446 and $529, respectively 6,585 1,937
Trademarks 1,680 2,800
Total other assets 8,265 4,737
Total Assets 256,414 862,743
Current liabilities:    
Accounts payable and accrued expenses 84,428 95,287
Derivative liability 39,381 537,889
Note payable, current portion 49,500 49,500
Note payable, convertible net of discount 27,049
Dividends payable 23,695 4,192
Total current liabilities 224,053 686,868
Commitments and contingencies
Stockholders' equity:    
Common stock subscribed 160,000 160,000
Preferred stock, $0.001 par value; 25,000,000 shares authorized; 8,480,000 and 8,480,000 issued and outstanding as of August 31, 2019 and August 31, 2018, respectively 8,480 8,480
Common stock, $0.001 par value; 200,000,000 shares authorized; 135,280,651 and 132,637,500 shares issued and outstanding as of August 31, 2019 and August 31, 2018, respectively 135,281 132,638
Additional paid in capital 942,159 867,949
Accumulated deficit (1,213,559) (993,192)
Total stockholders' equity 32,361 175,875
Total Liabilities and Stockholders' equity $ 256,414 $ 862,743
XML 49 R6.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Statements of Cash Flow - USD ($)
12 Months Ended
Aug. 31, 2019
Aug. 31, 2018
Cash flows from operating activities    
Net income (loss) $ (170,067) $ (975,524)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 1,916 530
Debt/stock based issue costs 23,276 674,012
Gain on change in fair value of derivative liability (521,784) (136,123)
Penalties assessed on unpaid dividends 27,281
Stock based compensation 18,775
Debt discount interest 49
Impairment expense 1,120
Changes in operating assets and liabilities:    
Accounts receivable 428 (428)
Inventory (150,453) (53,110)
Prepaid expenses 4,389 (30,000)
Accounts payable and accrued expenses (10,859) 94,182
Related party payable (16,101)
Net cash used in operating activities (775,929) (442,562)
Cash flows from investing activities:    
Purchase of equipment (6,564) (2,467)
Net cash used in investing activities (6,564) (2,467)
Cash flows from financing activities    
Proceeds from notes payable 49,500
Proceeds from convertible notes payable 27,000
Proceeds from common stock subscriptions 160,000
Proceeds from the sale of preferred stock and warrants 1,006,000
Cash contributed in merger 3,972
Net cash provided by financing activities 27,000 1,219,472
Net increase (decrease) in cash (755,493) 774,443
Cash - beginning of the year 774,468 25
Cash - end of the year 18,975 774,468
Supplemental disclosures:    
Interest paid
Income taxes
Non-cash transactions:    
Preferred stock dividends declared 50,300 4,192
Discount on convertible note payable 3,000
Accounts payable and accrued expenses assumed in reverse merger 1,105
Forgiveness of related party payable 75,907
Common shares issued in reverse merger at par value 75,907
Trademark costs paid by related party $ 70,000
XML 50 R28.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)
Aug. 31, 2019
Aug. 31, 2018
President And Director [Member]    
Due to related party $ 38,449 $ 0
XML 51 R24.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)
Aug. 31, 2019
Aug. 31, 2018
Inventory $ 203,563 $ 53,110
Raw Materials [Member]    
Inventory 19,477 33,010
Packaging Materials [Member]    
Inventory 6,558 1,860
Gridrion Water & Concentrates [Member]    
Inventory 126,773 10,566
Gridiron Capsules [Member]    
Inventory 32,044 1,233
Gummy and Other Products [Member]    
Inventory $ 18,710 $ 6,440
XML 52 R20.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
DERIVATIVE LIABILITY (Tables)
12 Months Ended
Aug. 31, 2019
DERIVATIVE LIABILITY  
Summarizes of stock option activity

 

 

Warrants

 

Weighted-

Average

Exercise

Price

Per Share

 

Outstanding, August 31, 2018

 

8,480,000

 

$

0.165

 

Granted

 

-

 

-

 

Exercised

 

-

 

-

 

Forfeited

 

-

 

-

 

Expired

 

-

 

-

 

Outstanding, August 31, 2019

 

8,480,000

 

$

0.165

 

Summarizes of outstanding and exercisable of stock options

 

 

Outstanding

 

Exercisable

 

Exercise

Prices

 

Number of

Warrant Shares

 

Weighted Average

Exercise Price

 

Weighted Average

Remaining Life

(Years)

 

Number of

Warrant Shares

 

Weighted Average

Exercise Price

 

$

0.165

 

$

8,480,000

 

$

0.165

 

1.92

 

8,480,000

 

$

0.165

 

8,480,000

 

$

0.165

 

1.92

 

8,480,000

 

$

0.165

 

XML 53 R31.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
INCOME TAXES (Details 1) - USD ($)
Aug. 31, 2019
Aug. 31, 2018
INCOME TAXES    
Deferred tax asset $ 254,847 $ 208,570
Valuation allowance (254,847) (208,570)
Net deferred tax asset
XML 54 R35.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
DERIVATIVE LIABILITY (Details 1) - Stock option [Member]
12 Months Ended
Aug. 31, 2019
$ / shares
shares
Number of Warrants Shares, Outstanding | shares 8,480,000
Weighted Average Exercise Price, Outstanding | $ / shares $ 0.165
Weighted average remaining contractual life (Years), Outstanding 1 year 11 months 1 day
Number of Outstanding, Exercisable | shares 8,480,000
Weighted Average Exercise Price, Exercisable | $ / shares $ 0.165
0.165 [Member]  
Number of Warrants Shares, Outstanding | shares 8,480,000
Weighted Average Exercise Price, Outstanding | $ / shares $ 0.165
Weighted average remaining contractual life (Years), Outstanding 1 year 11 months 1 day
Number of Outstanding, Exercisable | shares 8,480,000
Weighted Average Exercise Price, Exercisable | $ / shares $ 0.165
XML 55 R16.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
SUBSEQUENT EVENTS
12 Months Ended
Aug. 31, 2019
SUBSEQUENT EVENTS  
NOTE 10 - SUBSEQUENT EVENTS

On or about September 4, 2019, the Company signed an initial letter of intent with NanoPeak Performances, LLC with a subsequent addendum for the sale of the majority of its existing inventory as well as the exclusive license to Gridiron intellectual property.  As of December 13, 2019, the two parties are still negotiating the terms of the contemplated transaction.

 

On, November 19, 2019, the Company issued 228,571 restricted shares of the Company’s common stock for the four separate common stock subscriptions granted during the year ended August 31, 2018. The stock subscriptions represented total cash proceeds of $160,000, which funded in the year ended December 31, 2018.

 

On November 25, 2019, the Company signed a convertible promissory note with an investor. The $140,000 note was issued with an original issue discount of $14,000 and bears interest at 10% per year. The note principal and interest are convertible into shares of common stock equal to the lower of 5% per share or 35% discount to the lowest traded price of the Company’s common stock during the 10 prior trading days including the day the notice of conversion is received by the Company. The note matures on May 25, 2020. The note has a prepayment penalty of 115% of the principal and interest outstanding if repaid more than 30 days after issuance. If the Company defaults on the note, the payment premium increases to 140% of the principal and interest outstanding.

 

In November 2019, the Company made a strategic decision to expand into the oil extraction business and on or about November 27, 2019, the Company signed a Supply Agreement with a grower to purchase 10,000 pounds of industrial hemp (biomass) and plans on processing the biomass into crude within the next 60 days. The Company anticipates a third party provider will process the biomass and generate 400 liters of crude with minimum 60% total cannabinoids (CBD). The estimated contract price is $100,000.

 

On December 13, 2019, the Company signed a Toll Processing Agreement with a corporation to process industrial hemp (biomass) into the CBD product. The contract is valued at $100,000.

 

The Company has evaluated all events occurring subsequently to these financial statements through December 17, 2019 and determined there were no other items to disclose.

XML 56 R12.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
STOCKHOLDERS EQUITY
12 Months Ended
Aug. 31, 2019
STOCKHOLDERS EQUITY  
NOTE 6 - STOCKHOLDERS EQUITY

Preferred Stock

 

On July 16, 2018, the Board of Directors and one (1) stockholder adopted and approved a resolution to affect an amendment to our Articles of Incorporation to authorize the creation of 5,000,000 shares, designated as our Preferred Stock. On July 16, 2018, the Company filed a Certificate of Amendment to its Articles of Incorporation creating 5,000,000 shares of preferred stock.

 

On July 30, 2018, the Board of Directors of the Company authorized the designation of 9,000,000 shares of Series A Preferred Stock. On July 31, 2018, the Company filed a Certificate of Designation with the Secretary of State of the State of Nevada, creating 9,000,000 shares of Series A Preferred Stock.

 

On August 1, 2018, the Board of Directors and one (1) stockholder adopted and approved a resolution to affect an amendment to our Articles of Incorporation to authorize the creation of 25,000,000 shares, designated as our Preferred Stock. On August 1, 2018, the Company filed a Certificate of Amendment to its Articles of Incorporation creating 25,000,000 shares of preferred stock.

 

The preferred stock accrues dividends at a rate of 5% annually, are convertible to common stock at a rate of $0.125 per share at the option of the holder. Further, the preferred stock is redeemable by the Company at a premium during the first 180 days after issuance and another premium after the 180th day from issuance.

 

During the year ended August 31, 2018, the Company issued a total of 8,480,000 of preferred stock and 8,480,000 of warrants for total cash proceeds of $1,006,000.

 

There were 8,480,000 preferred shares issued and outstanding as of August 31, 2019 and 2018.

 

Common Stock

 

The Company is authorized to issue up to 200,000,000 shares of $0.001 par value common stock.

 

During the year ended August 31, 2018, the Company issued a total of 70,000,000 restricted shares of the Company’s common stock to complete its acquisition and reverse merger as discussed in Note 1 – Organization and Description of Business.

 

On January 30, 2019, the Company entered into a consulting agreement whereby it issued a total of 100,000 restricted shares of the Company’s common stock in exchange for advisory services. The shares were issued on April 5, 2019 and valued at $.0321 per share or $3,210.

 

On February 7, 2019, the Company entered into a consulting agreement whereby it issued a total of 125,000 restricted shares of the Company’s common stock in exchange for business development services. The shares were issued on April 5, 2019 and valued at $.0458 per share or $5,725.

 

On February 7, 2019, the Company entered into a consulting agreement whereby it issued a total of 75,000 restricted shares of the Company’s common stock in exchange for business development services. The shares were issued on April 5, 2019 and valued at $.0458 per share or $3,435.

 

On February 14, 2019, the Company converted accrued interest and preferred dividends penalty totaling $15,370 or $.0337 into 467,043 restricted shares of Company’s common stock.

 

On February 27, 2019, the Company converted accrued interest and preferred dividends penalty totaling $8,884 or $.0294 into 302,586 restricted shares of Company’s common stock.

 

On March 1, 2019, the Company converted accrued interest and preferred dividends penalty totaling $14,470 or $.0294 into 493,001 restricted shares of Company’s common stock.

 

On March 11, 2019, the Company converted accrued interest and preferred dividends penalty totaling $19,355 or $.0208 into 930,521 restricted shares of Company’s common stock.

 

On March 11, 2019, the Company entered into a consulting agreement whereby it issued a total of 150,000 restricted shares of the Company’s common stock in exchange for advisory services. The shares were issued on April 5, 2019 and valued at $.0427 per share or $6,405.

 

There were 135,280,651 and 132,637,500 common shares issued and outstanding as of August 31, 2019 and 2018, respectively.

 

Common Stock Subscribed

 

During the year ended August 31, 2018, the Company accepted four separate common stock subscriptions representing a total of 228,571 common shares for total cash proceeds of $160,000. As of August 31, 2019, the shares have not been issued to the investor.