Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
May 31, 2018 | Jul. 20, 2018 | Feb. 28, 2017 | |
Document and Entity Information: | |||
Entity Registrant Name | SAUER ENERGY, INC. | ||
Document Type | 10-Q | ||
Document Period End Date | May 31, 2018 | ||
Trading Symbol | seny | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,446,152 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Common Stock, Shares Outstanding | 88,727,057 | ||
Entity Public Float | $ 887,270 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | Q3 |
Statement of Financial Position
Statement of Financial Position - USD ($) | May 31, 2018 | Aug. 31, 2017 |
Assets, Current | ||
Cash and Cash Equivalents, at Carrying Value | $ 2,446 | $ 1,952 |
Other Assets, Current | 1,500 | 1,500 |
Assets, Current | 3,946 | 3,452 |
Assets, Noncurrent | ||
Property, Plant and Equipment, Net | 29,620 | 41,635 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 1,044,999 | 1,112,631 |
Other Assets, Noncurrent | 13,507 | 13,507 |
Assets, Noncurrent | 1,058,506 | 1,126,138 |
Assets | 1,092,072 | 1,171,225 |
Liabilities, Current | ||
Accrued Liabilities, Current | 137,103 | 37,947 |
Due To Related Parties Current | 5,000 | 3,000 |
Notes Payable, Current | 148,703 | 105,000 |
Liabilities, Current | 290,806 | 145,947 |
Liabilities, Noncurrent | ||
Liabilities | 290,806 | 145,947 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | ||
Common Stock, Value, Issued | 8,742 | 35,121 |
Additional Paid in Capital, Common Stock | 13,165,217 | 12,473,432 |
Retained Earnings (Accumulated Deficit) | (12,372,693) | (11,483,275) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 801,266 | 1,025,278 |
Liabilities and Equity | $ 1,092,072 | $ 1,171,225 |
Statement of Financial Positio3
Statement of Financial Position - Parenthetical - $ / shares | May 31, 2018 | Aug. 31, 2017 |
Balance Sheets | ||
Common Stock, Par Value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 650,000,000 | 650,000,000 |
Common Stock, Shares Issued | 87,408,180 | 70,245,842 |
Common Stock, Shares Outstanding | 87,408,180 | 273,433,664 |
Statement of Income
Statement of Income - USD ($) | 2 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Revenues | ||||
Sales Revenue Goods, Net | $ 29,649 | |||
Revenues | 29,649 | |||
Cost of Revenue | ||||
Cost of Goods Sold | 15,106 | |||
Cost of Revenue | 15,106 | |||
Gross Profit | 14,543 | |||
Operating Expenses | ||||
Professional Fees | $ 17,241 | $ 21,000 | 55,689 | $ 62,444 |
Consulting | 20,463 | 51,175 | 100,243 | 171,675 |
Rent Expense | 42,043 | 42,043 | 135,039 | 140,144 |
Research and Development Expense | 1,337 | 117,726 | 86,049 | 269,254 |
General and Administrative Expense | 46,326 | 84,531 | 166,233 | 257,542 |
Operating Expenses | 127,410 | 316,475 | 543,253 | 901,059 |
Operating Income (Loss) | (127,410) | (316,475) | (528,710) | (901,059) |
Interest and Debt Expense | ||||
Interest Expense | 23,911 | 33,989 | 380,542 | 310,474 |
Derivative Loss On Derivative | (19,834) | |||
Interest and Debt Expense | 23,911 | 33,989 | 360,708 | 310,474 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | (151,321) | (350,464) | (889,418) | (1,211,533) |
IncomeTaxExpenseBenefitContinuingOperationsAbstract | ||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | (151,321) | (350,464) | (889,418) | (1,211,533) |
Net Income (Loss) Attributable to Parent | (151,321) | (350,464) | (889,418) | (1,211,533) |
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParentAbstract | ||||
ComprehensiveIncomeNetOfTax | $ (151,321) | $ (350,464) | $ (889,418) | $ (1,211,533) |
Earnings Per Share | ||||
Earnings Per Share, Basic | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) |
Weighted Average Number of Shares Outstanding, Basic | 87,408,168 | 65,725,407 | 81,177,075 | 191,280,841 |
Earnings Per Share, Diluted | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) |
Weighted Average Number of Shares Outstanding, Diluted | 87,408,168 | 65,725,407 | 81,177,075 | 191,280,841 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 2 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Net Cash Provided by (Used in) Operating Activities | ||
Net Income (Loss) | $ (889,418) | $ (1,211,533) |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | ||
Depreciation | 79,648 | 100,239 |
Fair Value Change of Derivative Liability | 78,600 | |
Issuance of Stock and Warrants for Services or Claims | 219,779 | 302,909 |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | (511,391) | (808,385) |
Increase (Decrease) in Operating Assets | ||
Increase (Decrease) in Prepaid Expense and Other Assets | 2,995 | |
Increase (Decrease) in Other Operating Assets | ||
Increase (Decrease) in Operating Assets | 2,995 | |
Increase (Decrease) in Operating Liabilities | ||
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 151,238 | (13,368) |
Increase (Decrease) in Operating Capital | 151,238 | (13,368) |
Net Cash Provided by (Used in) Operating Activities | (360,153) | (818,758) |
Net Cash Provided by (Used in) Financing Activities | ||
Proceeds from (Repayments of) Short-term Debt | 99,250 | 65,000 |
Proceeds from Issuance of Common Stock | 261,397 | 762,575 |
Net Cash Provided by (Used in) Financing Activities | 360,647 | 827,575 |
Cash and Cash Equivalents, Period Increase (Decrease) | 494 | 8,817 |
Cash and Cash Equivalents, at Carrying Value | 1,952 | 46,585 |
Cash and Cash Equivalents, at Carrying Value | $ 2,446 | $ 55,402 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | 9 Months Ended |
May 31, 2018 | |
Notes | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | Note 1 - Organization and summary of significant accounting policies: These unaudited interim financial statements as of and for the nine months ended May 31, 2018, reflect all adjustments which, in the opinion of management, are necessary to fairly state the Companys financial position and the results of its operations for the periods presented, in accordance with the accounting principles generally accepted in the United States of America. All adjustments are of a normal recurring nature. These unaudited interim financial statements should be read in conjunction with the Companys financial statements and notes thereto included in the Companys fiscal year end August 31, 2017, report. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the nine month period ended May 31, 2018, are not necessarily indicative of results for the entire year ending August 31, 2018. Organization Sauer Energy, Inc. was incorporated in California on August 7, 2008. The Company was incorporated to develop and market wind power electric generators. Current Business of the Company On July 25, 2010, the Company executed a plan of reorganization with BCO Hydrocarbon Ltd., a Nevada exploration stage enterprise, in which Sauer Energy Inc. became a subsidiary of BCO. BCO changed its name to Sauer Energy, Inc. The Company leases warehouse/office facilities in Oxnard, California, in which the Company develops wind power technology. A production prototype of a vertical axis wind turbine (VAWT) has been developed. Its compact size is aimed at the small business and home market. The company is focused on plans to manufacture and distribute the product. In May, 2012, the acquisition of the entire assets of a wind turbine company added two more wind turbine models to the Company, together with patents and a distribution network. During 2016 and 2017, the Company continued to develop its technology. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared using the basis of accounting generally accepted in the United States of America. Under this basis of accounting, revenues are recorded as earned and expenses are recorded at the time liabilities are incurred. The Company has adopted August 31 as the fiscal year-end. Cash and Cash Equivalents The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The Financial Accounting Standards Board issued ASC (Accounting Standards Codification) 820-10 (SFAS No. 157), Fair Value Measurements and Disclosures" for financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. FASB ASC 820-10 defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required by the standard that the Company uses to measure fair value: - Level 1: Quoted prices in active markets for identical assets or liabilities. - Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. - Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of the Company s financial instruments as of August 31, 2017, reflect: - Cash: Level 1 Measurement based on bank reporting. Level 2 Loans from Officers and related parties - Level 2 Based on promissory notes. Federal income taxes The Company utilizes FASB ACS 740, Income Taxes , Interest and penalties on tax deficiencies recognized in accordance with ASC accounting standards are classified as income taxes in accordance with ASC Topic 740-10-50-19. Research and development costs The Company expenses costs of research and development cost as incurred. The costs for the three months ended May 31, 2018 , and three months ended May 31, 2017 , were $1,337 and $117,726 respectively. The costs for the nine months ended May 31, 2018 , and May 31, 2017 , were $86,049 and $269,254 respectively. Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation Stock Based Compensation and ASC 505, Equity Based Payments to Non-Employees, which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based awards made to employees and directors, including stock options. ASC 718 requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The Company uses the Black-Scholes option-pricing model as its method of determining fair value. This model is affected by the Companys stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to the Companys expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the statement of operations over the requisite service period. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Basic and Diluted Earnings (Loss) Per Share Net loss per share is calculated in accordance with FASB ASC 260, Earnings Per Share, for the period presented. Basic net loss per share is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The Company does have potentially dilutive securities outstanding consisting of convertible loans. Recent Accounting Pronouncements Management has considered all recent accounting pronouncements. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, the Companys management has not determined whether implementation of such standards would be material to its financial statements. The Company is reviewing the effects of following recent updates. The Company has no expectation that any of these items will have a material effect upon the financial statements. · Update 2018-07 CompensationStock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting · · · · Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported losses, total assets, or stockholders equity as previously reported. |
Substantial Doubt about Going C
Substantial Doubt about Going Concern | 9 Months Ended |
May 31, 2018 | |
Notes | |
Substantial Doubt about Going Concern | Note 3 Going Concern The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has accumulated a deficit of $(12,372,693) as of May 31, 2018 , and has had limited revenues, which raises substantial doubt as to the Companys ability to continue as a going concern. In view of these matters, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company s ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management plans to raise additional capital through the sale of stock to pursue business development activities. |
Property, Plant and Equipment D
Property, Plant and Equipment Disclosure | 9 Months Ended |
May 31, 2018 | |
Notes | |
Property, Plant and Equipment Disclosure | Note 4 Property and Equipment Property and Equipment consisted of the following at May 31, 2018, and August 31, 2017: 5/31/18 8/31/17 Property Plant and Equipment $ 282,427 $ 282,427 Less accumulated depreciation (252,807) (240,792) Property and equipment, net $ 29,620 $ 41,635 The Company depreciates its property and equipment using accelerated methods over lives of five or seven years. In nine months ended May 31, 2018 , and 2017, depreciation was $12,015 and $32,607, respectively. |
Equity Method Investments and J
Equity Method Investments and Joint Ventures Disclosure | 9 Months Ended |
May 31, 2018 | |
Notes | |
Equity Method Investments and Joint Ventures Disclosure | Note 5 Asset Purchase On May 11, 2012, the Company entered into an Asset Purchase Agreement Tangible Assets Equipment $ 23,000 Supplies 1,000 Inventory 1,000 Total Intangible Assets $ 25,000 Intangible Assets Goodwill $ 5,000 Intellectual Property (10 patents, 2 trademarks, network systems, wind turbine monitoring system, URL) 1,467,500 Restrictive Covenant 2,500 Total Intangible Assets $ 1,475,000 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets Disclosure | 9 Months Ended |
May 31, 2018 | |
Notes | |
Goodwill and Intangible Assets Disclosure | Note 6 Intangible Property The Company has acquired intangible property in patents, patents pending and goodwill. The patents are being amortized over their expected lives of not more than seventeen years. The restrictive covenants were fully amortized as of August 31, 2013. Those patent costs allocated to pending patents do not begin amortizing until the underlying patent is issued. If for some reason a patent is not issued the costs associated with the acquisition and the continuation of the application are fully amortized in the year of the denial. May 31, 2018 August 31, 2017 Patents $ 109,092 $ 109,092 Purchased Patents 1,467,500 1,467,500 Goodwill 5,000 5,000 Less Amortization (536,593) (468,961) Intangible Property - Net $ 1,044,999 $ 1,112,631 In six months ended May 31, 2018 and 2017, amortization was $67,632 and $67,632, respectively. |
Debt Disclosure
Debt Disclosure | 9 Months Ended |
May 31, 2018 | |
Notes | |
Debt Disclosure | Note 7 - Notes Payable [AS1] On July 26, 2016, the Company entered into short term note agreement with Beaufort On August 30, 2016, the Company entered into a short term note agreement with Beaufort On May 2, 2017, the Company entered into a short-term note agreement with an investor in the amount of $50,000 with an interest rate of 10% per annum, with a due date of September 2, 2017. The balance has been paid in full. On May 24, 2017, the Company entered into a convertible promissory note with an investor in the amount of $105,000 with an interest rate of 8% per annum, with a due date of May 24, 2018. Convertible 180 days after issuance, at 80% of the lowest trading price over the previous 20 trading days. The balance has been paid in full. On February 21, 2018, the Company entered into a Promissory Note in the amount of $45,000, with an interest rate of 8% per annum, with a due date of November 21, 2018, which can be prepaid at any time, without consequence, and is not convertible. On February 28, 2018, the Company entered into short term note agreement with Geneva Roth Remark, Inc., in the amount of $78,000 with an interest rate of 12% per annum, with a due date of August 28, 2018, that converts after 6 months. There is no balance due as it has been prepaid in full. On April 27, 2018, the Company entered into short term note agreement with Auctus Fund Inc., in the amount of $114,000 with an interest rate of 12% per annum, with a due date of January 27, 2019, that becomes convertible after 180 Days. The proceeds of the Auctus Fund Inc. note were applied to pay the Geneva Roth Remark, Inc. note. Note 8 - Related Party Note As of August 31, 2017 and May 31, 2018, we have related party payable to Dieter Sauer in the amount of $3,000 and 5,000 respectively for consulting services. |
Commitments and Contingencies D
Commitments and Contingencies Disclosure | 9 Months Ended |
May 31, 2018 | |
Notes | |
Commitments and Contingencies Disclosure | Note 9 Commitments and Contingencies Rental Agreement: On August 7, 2015, the Company entered into a Commercial Single-Tenant Lease for a 26,550 square foot building in Oxnard, California, with monthly payments of $13,507 for sixty months, plus common area costs of $507.38 per month. All company operations will be concentrated at the site. Lease Commitments following five fiscal years: Fiscal year ended August 31, Year Lease 2018 42,043 2019 168,173 2020 168,173 For the three months ending May 31 , 2018, and 2017, the rent expense was $42,043 and $42,043, respectively. For the nine months ending May 31 , 2018, and 2017, the rent expense was $135,039 and $140,144, respectively. |
Income Tax Disclosure
Income Tax Disclosure | 9 Months Ended |
May 31, 2018 | |
Notes | |
Income Tax Disclosure | Note 10 - Federal income tax No provision was made for federal income tax, since the Company has had significant net operating losses. Net operating loss carryforwards may be used to reduce taxable income through the year 2035. The availability of the Companys net operating loss carryforwards are subject to limitation if there is a 50% or more positive change in the ownership of the Companys stock, unless the same or similar business is carried on. The net operating loss carryforward for federal and state income tax purposes was approximately $12,372,693, which will expire in 2029 through 2035 if not utilized. The Company uses 21% for a composite tax rate to estimate the value of net operating losses for deferred taxes. The Company for the nine months ended May 31, 2018, and 2017, recognized net operating losses of approximately $889,418 and $1,211,533, respectively. The total estimated deferred tax asset as of May 31, 2018, was $2,598,265. The Company recorded a 100% valuation allowance for the deferred tax asset since it is more likely than not that some part or all of the deferred tax asset will not be realized. Although Management believes that its estimates are reasonable, no assurance can be given that the final tax outcome of these matters will not be different than that which is reflected in our tax provisions. Ultimately, the actual tax benefits to be realized will be based upon future taxable earnings levels, which are very difficult to predict. No provision was made for federal income tax, since the Company had an overall net operating loss and has accumulated net operating loss carryforwards. For the three and nine months ended May 31, 2018, and 2017, no income tax expense has been realized as a result of operations and no income tax penalties and/or interest have been accrued related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and in the State of California. These filings are subject to a three-year statute of limitations. The Companys evaluation of income tax positions included the years ended August 31, 2014, through 2017 could be subject to agency examinations. No filings are currently under examination. No adjustments have been made to reduce the estimated income tax benefit at fiscal year-end or at the quarterly reporting dates. Any valuations relating to these income tax provisions will comply with U.S. generally accepted accounting principles. |
Stockholders' Equity Note Discl
Stockholders' Equity Note Disclosure | 9 Months Ended |
May 31, 2018 | |
Notes | |
Stockholders' Equity Note Disclosure | Note 11 Capital Stock The Company went public on 7/25/ 2010. Its Common Stock is traded on the open market under the symbol OTCQB: SENY. During the quarter ending November 30, 2016, the Company issued 5,215,112 shares of common stock for $322,500 pursuant to an Equity Purchase Agreement. During the quarter ending February 28, 2017, the Company issued 4,873,081 shares of common stock for $367,000 pursuant to an Equity Purchase Agreement. During the quarter ending May 31, 2017, the Company issued 1,051,806 shares of common stock for $73,075 pursuant to an Equity Purchase Agreement. During the quarter ending August 31, 2017, the Company issued 4,419,109 shares of common stock for $210,000 pursuant to an Equity Purchase Agreement. During the quarter ending November 30, 2017, the Company issued 5,813,683 shares of common stock for $185,000 pursuant to an Equity Purchase Agreement. During the quarter ending February 28, 2018, the Company issued 5,501,435 shares of common stock for $75,481.72 pursuant to a convertible note. During the quarter ending February 28, 2018, the Company issued 4,247,208 shares of common stock for $76,398.84 pursuant to an Equity Purchase Agreement. During the quarter ending May 31, 2018, no shares were issued. The Company initiated a one for five reverse split of its outstanding and authorized shares of common stock. Effecting this corporate action was subject to regulatory (FINRA) approval and which was made effective on May 16, 2018. As a result we reclassed $34,961 from common stock to additional paid in capital. |
Subsequent Events
Subsequent Events | 9 Months Ended |
May 31, 2018 | |
Notes | |
Subsequent Events | NOTE 12 Subsequent Events Management has reviewed and evaluated subsequent events and transactions occurring after the balance sheet date, May 31, 2018, through the filing of this Quarterly report on July XX, 2018, and determined that the following additional subsequent events have occurred: On June 13, 2018, the Company issued 452,427 shares of common stock for $11,039.20 pursuant to an Equity Purchase Agreement. On June 27, 2018, the Company issued 866,450 shares of common stock for $13,863.20 pursuant to an Equity Purchase Agreement. On July 10, 2018, the Company issued 420,217 shares of common stock for $10,085.20 pursuant to an Equity Purchase Agreement. |
Organization, Consolidation a16
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies) | 9 Months Ended |
May 31, 2018 | |
Policies | |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents. |
Organization, Consolidation a17
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Use of Estimates, Policy (Policies) | 9 Months Ended |
May 31, 2018 | |
Policies | |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Organization, Consolidation a18
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Fair Value Measurement, Policy (Policies) | 9 Months Ended |
May 31, 2018 | |
Policies | |
Fair Value Measurement, Policy | Fair Value of Financial Instruments The Financial Accounting Standards Board issued ASC (Accounting Standards Codification) 820-10 (SFAS No. 157), Fair Value Measurements and Disclosures" for financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. FASB ASC 820-10 defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required by the standard that the Company uses to measure fair value: - Level 1: Quoted prices in active markets for identical assets or liabilities. - Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. - Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of the Company s financial instruments as of August 31, 2017, reflect: - Cash: Level 1 Measurement based on bank reporting. Level 2 Loans from Officers and related parties - Level 2 Based on promissory notes. |
Organization, Consolidation a19
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Income Tax, Policy (Policies) | 9 Months Ended |
May 31, 2018 | |
Policies | |
Income Tax, Policy | Federal income taxes The Company utilizes FASB ACS 740, Income Taxes , Interest and penalties on tax deficiencies recognized in accordance with ASC accounting standards are classified as income taxes in accordance with ASC Topic 740-10-50-19. |
Organization, Consolidation a20
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Research, Development, and Computer Software, Policy (Policies) | 9 Months Ended |
May 31, 2018 | |
Policies | |
Research, Development, and Computer Software, Policy | Research and development costs The Company expenses costs of research and development cost as incurred. The costs for the three months ended May 31, 2018 , and three months ended May 31, 2017 , were $1,337 and $117,726 respectively. The costs for the nine months ended May 31, 2018 , and May 31, 2017 , were $86,049 and $269,254 respectively. |
Organization, Consolidation a21
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Compensation Related Costs, Policy (Policies) | 9 Months Ended |
May 31, 2018 | |
Policies | |
Compensation Related Costs, Policy | Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation Stock Based Compensation and ASC 505, Equity Based Payments to Non-Employees, which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based awards made to employees and directors, including stock options. ASC 718 requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The Company uses the Black-Scholes option-pricing model as its method of determining fair value. This model is affected by the Companys stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to the Companys expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the statement of operations over the requisite service period. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. |
Organization, Consolidation a22
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Earnings Per Share, Policy (Policies) | 9 Months Ended |
May 31, 2018 | |
Policies | |
Earnings Per Share, Policy | Basic and Diluted Earnings (Loss) Per Share Net loss per share is calculated in accordance with FASB ASC 260, Earnings Per Share, for the period presented. Basic net loss per share is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The Company does have potentially dilutive securities outstanding consisting of convertible loans. |
Organization, Consolidation a23
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: New Accounting Pronouncements, Policy (Policies) | 9 Months Ended |
May 31, 2018 | |
Policies | |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements Management has considered all recent accounting pronouncements. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, the Companys management has not determined whether implementation of such standards would be material to its financial statements. The Company is reviewing the effects of following recent updates. The Company has no expectation that any of these items will have a material effect upon the financial statements. · Update 2018-07 CompensationStock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting · · · · |
Organization, Consolidation a24
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Reclassification, Policy (Policies) | 9 Months Ended |
May 31, 2018 | |
Policies | |
Reclassification, Policy | Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported losses, total assets, or stockholders equity as previously reported. |
Property, Plant and Equipment25
Property, Plant and Equipment Disclosure: Property, Plant and Equipment (Tables) | 9 Months Ended |
May 31, 2018 | |
Tables/Schedules | |
Property, Plant and Equipment | 5/31/18 8/31/17 Property Plant and Equipment $ 282,427 $ 282,427 Less accumulated depreciation (252,807) (240,792) Property and equipment, net $ 29,620 $ 41,635 |
Equity Method Investments and26
Equity Method Investments and Joint Ventures Disclosure: Equity Method Investments (Tables) | 9 Months Ended |
May 31, 2018 | |
Tables/Schedules | |
Equity Method Investments | Tangible Assets Equipment $ 23,000 Supplies 1,000 Inventory 1,000 Total Intangible Assets $ 25,000 Intangible Assets Goodwill $ 5,000 Intellectual Property (10 patents, 2 trademarks, network systems, wind turbine monitoring system, URL) 1,467,500 Restrictive Covenant 2,500 Total Intangible Assets $ 1,475,000 |
Goodwill and Intangible Asset27
Goodwill and Intangible Assets Disclosure: Schedule of Goodwill (Tables) | 9 Months Ended |
May 31, 2018 | |
Tables/Schedules | |
Schedule of Goodwill | May 31, 2018 August 31, 2017 Patents $ 109,092 $ 109,092 Purchased Patents 1,467,500 1,467,500 Goodwill 5,000 5,000 Less Amortization (536,593) (468,961) Intangible Property - Net $ 1,044,999 $ 1,112,631 |
Property, Plant and Equipment28
Property, Plant and Equipment Disclosure: Property, Plant and Equipment (Details) - USD ($) | May 31, 2018 | Aug. 31, 2017 |
Details | ||
Property, Plant and Equipment, Gross | $ 282,427 | $ 282,427 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (252,807) | (240,792) |
Property, Plant and Equipment, Net | $ 29,620 | $ 41,635 |
Goodwill and Intangible Asset29
Goodwill and Intangible Assets Disclosure: Schedule of Goodwill (Details) - USD ($) | May 31, 2018 | Aug. 31, 2017 |
Details | ||
Finite-Lived Patents, Gross | $ 109,092 | $ 109,092 |
Purchased Patents | 1,467,500 | 1,467,500 |
Goodwill | 5,000 | 5,000 |
Amortization | (536,593) | (468,961) |
Intangible Property - Net | $ 1,044,999 | $ 1,112,631 |