RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT

12 Months Ended

Aug. 31, 2020

RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT

Note 6 - RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT

As of August 31, 2019, the Company received advances of $15,170 from a related party. These advances are unsecured with no interest. The Company entered into a formal promissory note for the advanced amount as of April 1, 2019, with a maturity date of December 31, 2021 with no stated interest rate. The computed discounted present value of the note payable at issuance, based on a 5% imputed interest rate, was $13,225 with $1,945 recognized as a debt discount, to be amortized over the life of the note using effective interest method. The amortization of the discount for the year ended August 31, 2020 was $ 690 (August 31, 2019 - $278), which is reported as interest expense.

	August 31, 2020			August 31, 2019
Principal amount of notes payable	$	15,170		$	15,170
Less: unamortized discount		(976	)		(1,667	)
Notes payable less unamortized discount	$	14,194		$	13,503