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Stock Options and Warrants, Disclosure
 12 Months Ended
Aug. 31, 2024
Notes  
Stock Options and Warrants, Disclosure

NOTE 9. STOCK OPTIONS AND WARRANTS

 

In accordance with ASC-505-10, stock options and warrants are classified as convertible equity instruments as they are convertible into shares of common stock based on a conversion rate. In the case of both stock options and warrants, the conversion is on a 1:1 basis, with conversion occurring when the exercise price has been paid to exercise the stock option or warrant.

 

The Company had the following stock options and warrants outstanding as at August 31, 2024 and 2023 respectively.

 

Options

 

The Company has issued no stock options as at August 31, 2024 and 2023.

 

Warrants

 

On March 15, 2024, the Company issued to an investor in Preferred Stock Series C 200 warrants exercisable into shares of Common Stock at a price of $5.00 per warrant and with an eighteen month term. The warrants are classified as equity as they are securities that are convertible into another security based on a fixed conversion rate.

 

The warrants were issued at fair value which was determined using Level 3 Inputs, using the Black-Scholes option pricing model, which incorporates the Company stock price, volatility, US risk-free interest rate, dividend rate, and estimated life.

 

Dividend yield

 

0.00%

Volatility

 

256.08%

Risk-free rate

 

4.30%

 

The warrants were attached to the Preferred Stock Series C, issued as a dividend and valued at $5,937.

 

The following table summarizes the warrants outstanding and the related prices for the shares of the Company’s common stock at August 31, 2024 and 2023:

 

Warrants

 

Number of

Warrants

 

Weighted

Average

Exercise Price

 

Weighted Avg

Remaining

Contractual Term

(years)

 

Aggregate

Intrinsic

Value

Balance b/f as at September 1, 2022

 

-

 

 

-

 

 

-

 

 

-

Granted

 

-

 

 

-

 

 

-

 

 

-

Exercised

 

-

 

 

-

 

 

-

 

 

-

Canceled

 

-

 

 

-

 

 

-

 

 

-

Revaluation

 

-

 

 

-

 

 

-

 

 

-

Balance outstanding as at August 31, 2023

 

-

 

 

-

 

 

-

 

 

-

Granted

 

200

 

$

5.00

 

 

1.50

 

$

3,800

Exercised

 

-

 

 

-

 

 

-

 

 

-

Canceled

 

-

 

 

-

 

 

-

 

 

-

Revaluation

 

-

 

 

-

 

 

-

 

 

-

Balance outstanding as at August 31, 2024

 

200

 

$

5.00

 

 

1.04

 

$

3,800

Exercisable as at August 31, 2024

 

200

 

$

5.00

 

 

1.04

 

$

3,800

 

The charge to the statement of operations for warrants issued with Preferred Stock Series C during the years ending August 31, 2024 and 2023 was $5,937 and nil, respectively.