Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Feb. 28, 2021 | Apr. 19, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | PETROTEQ ENERGY INC. | |
Document Type | 10-Q/A | |
Current Fiscal Year End Date | --08-31 | |
Entity Common Stock, Shares Outstanding | 423,582,347 | |
Amendment Flag | true | |
Amendment Description | The sole purpose of this Amendment No. 1 to our Quarterly Report on Form 10-Q for the period ended February 28, 2021, is to furnish Exhibit 101 to the Form 10-Q which provides certain items from our Form 10-Q formatted in eXtensible Business Reporting Language (commonly referred to as “XBRL”). No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q does not reflect subsequent events occurring after the original date of the Form 10-Q, or modify or update in any way disclosures made in the Form 10-Q. | |
Entity Central Index Key | 0001561180 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Feb. 28, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity File Number | 000-55991 | |
Entity Incorporation, State or Country Code | A6 | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Current assets | ||
Cash | $ 162,016 | $ 62,404 |
Trade and other receivables | 317,303 | 12,830 |
Ore inventory | 24,500 | 14,749 |
Other inventory | 15,000 | 12,250 |
Note receivable | 91,044 | 89,159 |
Prepaid expenses and other current assets | 2,039,468 | 2,043,510 |
Total Current Assets | 2,649,331 | 2,234,902 |
Non-Current assets | ||
Mineral leases | 34,911,143 | 34,911,143 |
Property, plant and equipment | 40,337,115 | 35,582,512 |
Right of use asset | 188,598 | 209,101 |
Intangible assets | 707,671 | 707,671 |
Total Non-Current Assets | 76,144,527 | 71,410,427 |
Total Assets | 78,793,858 | 73,645,329 |
Current liabilities | ||
Accounts payable | 1,973,923 | 2,406,665 |
Accrued expenses | 1,620,401 | 1,769,749 |
Ore Sale advances | 283,976 | 283,976 |
Promissory notes payable | 50,000 | 8,000 |
Debt | 586,733 | 683,547 |
Current portion of convertible debentures | 7,797,628 | 8,227,257 |
Current portion of Federal relief loans | 74,383 | |
Current portion of finance lease liabilities | 163,959 | 172,374 |
Current portion of operating lease liabilities | 45,136 | 42,053 |
Related party payables | 657,892 | 680,647 |
Derivative liability | 363,008 | 841,385 |
Total Current Liabilities | 13,542,656 | 15,190,036 |
Non-Current liabilities | ||
Convertible debentures | 856,039 | 607,067 |
Federal relief loans | 713,726 | 505,969 |
Finance lease liabilities | 75,058 | |
Operating lease liabilities | 143,462 | 167,048 |
Reclamation and restoration provision | 2,970,497 | 2,970,497 |
Total Non-Current Liabilities | 4,683,724 | 4,325,639 |
Total Liabilities | 18,226,380 | 19,515,675 |
Commitments and contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Share capital | 152,676,649 | 144,794,003 |
Deficit | (92,109,171) | (90,664,349) |
Total Shareholders’ Equity | 60,567,478 | 54,129,654 |
Total Liabilities and Shareholders’ Equity | $ 78,793,858 | $ 73,645,329 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Income Statement [Abstract] | ||||
Revenues from licensing fees | $ 2,000,000 | |||
Revenues from hydrocarbon sales | 68,509 | 169,041 | ||
Production and maintenance costs | (19,279) | (728,309) | (364,565) | (1,405,772) |
Advance royalty payments | (111,591) | (203,862) | ||
Gross Profit (Loss) | (19,279) | (771,391) | 1,635,435 | (1,440,593) |
Operating Expenses | ||||
Depreciation, depletion and amortization | 11,522 | 11,522 | 23,045 | 85,842 |
Selling, general and administrative expenses | 706,427 | 1,545,023 | 1,751,284 | 3,927,105 |
Financing costs | 743,601 | 479,548 | 1,364,988 | 988,842 |
Derivative liability movements | (591,914) | 695,432 | (748,912) | 659,885 |
Other expenses (income), net | 145,393 | (290,678) | 689,852 | (707,358) |
Total expenses, net | 1,015,029 | 2,440,847 | 3,080,257 | 4,954,316 |
Net loss before income taxes | 1,034,308 | 3,212,238 | 1,444,822 | 6,394,909 |
Income tax expense | ||||
Net loss and comprehensive loss | $ 1,034,308 | $ 3,212,238 | $ 1,444,822 | $ 6,394,909 |
Weighted Average Number of Shares Outstanding – Basic and Diluted (in Shares) | 401,858,398 | 202,239,760 | 353,952,701 | 197,106,454 |
Basic and Diluted Loss per Share (in Dollars per share) | $ 0 | $ 0.02 | $ 0 | $ 0.03 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Share Capital | Deficit | Total |
Balance at Aug. 31, 2019 | $ 136,104,245 | $ (78,285,282) | $ 57,818,963 |
Balance (in Shares) at Aug. 31, 2019 | 176,241,746 | ||
Settlement of acquisition obligation | $ 75,000 | 75,000 | |
Settlement of acquisition obligation (in Shares) | 250,000 | ||
Settlement of debentures | $ 200,000 | 200,000 | |
Settlement of debentures (in Shares) | 1,111,111 | ||
Settlement of liabilities | $ 705,687 | 705,687 | |
Settlement of liabilities (in Shares) | 3,243,666 | ||
Common shares subscriptions | $ 2,494,744 | 2,494,744 | |
Common shares subscriptions (in Shares) | 17,002,446 | ||
Share-based payments | $ 28,500 | 28,500 | |
Share-based payments (in Shares) | 90,000 | ||
Share-based compensation | $ 178,157 | 178,157 | |
Fair value of convertible debt warrants issued | 310,422 | 310,422 | |
Net loss | (3,182,671) | (3,182,671) | |
Balance at Nov. 30, 2019 | $ 139,724,435 | (81,467,953) | 58,628,802 |
Balance (in Shares) at Nov. 30, 2019 | 197,938,969 | ||
Balance at Aug. 31, 2019 | $ 136,104,245 | (78,285,282) | 57,818,963 |
Balance (in Shares) at Aug. 31, 2019 | 176,241,746 | ||
Net loss | (6,394,909) | ||
Balance at Feb. 29, 2020 | $ 141,192,204 | (84,680,191) | 56,512,013 |
Balance (in Shares) at Feb. 29, 2020 | 202,986,092 | ||
Balance at Nov. 30, 2019 | $ 139,724,435 | (81,467,953) | 58,628,802 |
Balance (in Shares) at Nov. 30, 2019 | 197,938,969 | ||
Settlement of liabilities | $ 891,489 | 891,489 | |
Settlement of liabilities (in Shares) | 4,997,123 | ||
Reallocation of subscription receipts | $ (216,930) | (216,930) | |
Share-based payments | $ 6,943 | 6,943 | |
Share-based payments (in Shares) | 50,000 | ||
Share-based compensation | $ 229,059 | 229,059 | |
Fair value of convertible debt warrants issued | 184,888 | 184,888 | |
Net loss | (3,212,238) | (3,212,238) | |
Balance at Feb. 29, 2020 | $ 141,192,204 | (84,680,191) | 56,512,013 |
Balance (in Shares) at Feb. 29, 2020 | 202,986,092 | ||
Balance at Aug. 31, 2020 | $ 144,794,003 | (90,664,349) | 54,129,654 |
Balance (in Shares) at Aug. 31, 2020 | 274,450,337 | ||
Conversion of convertible debt | $ 1,835,726 | 1,835,726 | |
Conversion of convertible debt (in Shares) | 38,735,555 | ||
Settlement of liabilities | $ 2,849,661 | 2,849,661 | |
Settlement of liabilities (in Shares) | 60,023,777 | ||
Common shares subscriptions | $ 410,000 | 410,000 | |
Common shares subscriptions (in Shares) | 7,416,666 | ||
Warrants exercised | $ 68,045 | 68,045 | |
Warrants exercised (in Shares) | 2,268,169 | ||
Share-based compensation | $ 199,632 | 199,632 | |
Fair value of convertible debt warrants issued | 783,293 | 783,293 | |
Net loss | (410,514) | (410,514) | |
Balance at Nov. 30, 2020 | $ 150,940,360 | (91,074,863) | 59,865,497 |
Balance (in Shares) at Nov. 30, 2020 | 382,894,504 | ||
Balance at Aug. 31, 2020 | $ 144,794,003 | (90,664,349) | 54,129,654 |
Balance (in Shares) at Aug. 31, 2020 | 274,450,337 | ||
Net loss | (1,444,822) | ||
Balance at Feb. 28, 2021 | $ 152,676,649 | (92,109,171) | 60,567,478 |
Balance (in Shares) at Feb. 28, 2021 | 412,292,584 | ||
Balance at Nov. 30, 2020 | $ 150,940,360 | (91,074,863) | 59,865,497 |
Balance (in Shares) at Nov. 30, 2020 | 382,894,504 | ||
Conversion of convertible debt | $ 668,256 | 668,256 | |
Conversion of convertible debt (in Shares) | 14,580,675 | ||
Settlement of liabilities | $ 631,822 | 631,822 | |
Settlement of liabilities (in Shares) | 11,608,460 | ||
Common shares subscriptions | $ 136,923 | 136,923 | |
Common shares subscriptions (in Shares) | 1,032,475 | ||
Warrants exercised | $ 35,293 | 35,293 | |
Warrants exercised (in Shares) | 1,176,470 | ||
Share-based compensation | $ 258,511 | 258,511 | |
Share-based compensation (in Shares) | 1,000,000 | ||
Fair value of convertible debt warrants issued | $ 5,484 | 5,484 | |
Net loss | (1,034,308) | (1,034,308) | |
Balance at Feb. 28, 2021 | $ 152,676,649 | $ (92,109,171) | $ 60,567,478 |
Balance (in Shares) at Feb. 28, 2021 | 412,292,584 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Cash flow used for operating activities: | ||
Net loss | $ (1,444,822) | $ (6,394,909) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation, depletion and amortization | 23,045 | 85,842 |
Amortization of debt discount | 771,892 | 672,372 |
Loss on conversion of debt | 313,198 | |
Loss (gain) on settlement of liabilities | 48,283 | (659,769) |
Loss on debt extinguishment | 330,256 | |
Share-based compensation | 458,143 | 35,443 |
Shares issued for services | 407,216 | |
Mark to market of derivative liabilities | (748,812) | 659,885 |
Other | 11,298 | 153,182 |
Changes in operating assets and liabilities: | ||
Accounts payable | (103,742) | 2,427,654 |
Accounts receivable | (304,473) | 127,183 |
Accrued expenses | 464,102 | 34,953 |
Prepaid expenses and deposits | 4,043 | 503,267 |
Inventory | (12,501) | 7,000 |
Net cash used in operating activities | (190,190) | (1,940,681) |
Cash flows used for investing activities: | ||
Purchase and construction of property and equipment | (1,673,448) | (2,116,484) |
Mineral rights deposits paid | (610,000) | |
Investment in notes receivable | (697,585) | |
Proceeds from notes receivable | 1,039,573 | |
Advance royalty payments | (100,000) | |
Net cash used in investing activities | (1,673,448) | (2,484,496) |
Cash flows from financing activities: | ||
Advances from related parties | 249,621 | |
Repayments to related parties | (22,755) | |
Proceeds on private equity placements | 546,923 | 2,277,814 |
Proceeds from warrants exercised | 103,339 | |
Proceeds from promissory notes | 42,000 | 181,689 |
Proceeds from federal relief loans | 267,716 | |
Payments of debt | (10,000) | (103,203) |
Payment of finance lease liability | (83,473) | |
Proceeds from convertible debt | 1,219,500 | 1,894,938 |
Repayments of convertible debt | (100,000) | (105,000) |
Net cash from financing activities | 1,963,250 | 4,395,859 |
Increase (decrease) in cash | 99,612 | (29,316) |
Cash, beginning of the period | 62,404 | 50,719 |
Cash, end of the period | 162,016 | 21,403 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 197,872 | 43,482 |
Shares issued to settle liabilities | 3,481,483 | 1,597,176 |
Shares issued on conversion of convertible debt | 2,503,982 | 200,000 |
Shares issued to settle acquisition obligation | 75,000 | |
Fair value of warrants issued | 788,777 | |
Value of shares issued for convertible debt funding | $ 495,310 |
General Information
General Information | 6 Months Ended |
Feb. 28, 2021 | |
General Information [Abstract] | |
GENERAL INFORMATION | 1. GENERAL INFORMATION Petroteq Energy Inc. (the “Company”) is an Ontario, Canada corporation which conducts oil sands mining and oil extraction operations in the USA. It operates through its indirectly wholly owned subsidiary company, Petroteq Oil Recovery, LLC (“POSR”), which is engaged in mining and oil extraction from tar sands. The Company’s registered office is located at Suite 6000, 1 First Canadian Place, 100 King Street West, Toronto, Ontario, M5X 1E2, Canada, and its principal operating office is located at 15315 W. Magnolia Blvd, Suite 120, Sherman Oaks, California 91403, USA. POSR is engaged in a tar sands mining and oil processing operation, using a closed-loop solvent based extraction system that recovers bitumen from surface mining, and has completed the construction of an oil processing plant in the Asphalt Ridge area of Utah. In November 2017, the Company formed a wholly owned subsidiary, Petrobloq, LLC, to design and develop a blockchain-powered supply chain management platform for the oil and gas industry. On June 1, 2018, the Company finalized the acquisition of a 100% interest in two leases for 1,312 acres of land within the Asphalt Ridge, Utah area. On January 18, 2019, the Company paid $10,800,000 for the acquisition of 50% of the operating rights under U.S. federal oil and gas leases, administered by the U.S. Department of Interior’s Bureau of Land Management (“BLM”) covering approximately 5,960 gross acres (2,980 net acres) within the State of Utah. The total consideration of $10,800,000 was settled by the payment of $1,800,000 and by the issuance of 15,000,000 shares at an issue price of $0.60 per share. On July 22, 2019, the Company acquired the remaining 50% of the operating rights under U.S. federal oil and gas leases, administered by the BLM covering approximately 5,960 gross acres (2,980 net acres) within the State of Utah for a total consideration of $13,000,000 settled by the issuance of 30,000,000 shares at an issue price of $0.40 per share, and cash of $1,000,000, of which $100,000 is still owing. Between March 14, 2019 and February 28, 2021, the Company made cash deposits of $1,907,000, included in prepaid expenses and other current assets on the consolidated balance sheets for the acquisition of 100% of the operating rights under U.S. federal oil and gas leases, administered by the BLM in Garfield and Wayne Counties covering approximately 8,480 gross acres in P.R. Springs and the Tar Sands Triangle within the State of Utah. The total consideration of $3,000,000 has been partially settled by a cash payment of $1,907,000, with the balance of $1,093,000 still outstanding. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments), which the Company considers necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three months and six months ended February 28, 2021may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The unaudited condensed consolidated financial statements have been prepared on a historical cost basis except for certain financial assets and financial liabilities which are measured at fair value. The Company’s reporting currency and the functional currency of all of its operations is the U.S. dollar, as it is the principal currency of the primary economic environment in which the Company operates. Accordingly, all amounts referred to in the notes to the unaudited condensed consolidated financial statements are in U.S. dollars unless stated otherwise. The Company is an “SEC Issuer” as defined under National Instrument 52-107 “Accounting Principles and Audit Standards” “Continuous Disclosure Obligations” The unaudited condensed consolidated financial statements were authorized for issue by the Board of Directors on April 19, 2021. (b) Consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has at least a majority voting interest. All significant inter-company accounts and transactions have been eliminated in the unaudited condensed consolidated financial statements. The entities included in these unaudited condensed consolidated financial statements are as follows: Entity % of Jurisdiction Petroteq Energy Inc. Parent Canada Petroteq Energy CA, Inc. 100 % USA Petroteq Oil Recovery, LLC 100 % USA TMC Capital, LLC 100 % USA Petrobloq, LLC 100 % USA (c) Estimates The preparation of these unaudited condensed consolidated financial statements in accordance with US GAAP requires the Company to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company continually evaluates its estimates, including those related to recovery of long-lived assets. The Company bases its estimates on historical experience and on other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to the Company’s reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. The Company believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of the unaudited condensed consolidated financial statements. Significant estimates include the following; ● the useful lives and depreciation rates for intangible assets and property, plant and equipment; ● the carrying and fair value of oil and gas properties and product and equipment inventories; ● all provisions; ● the fair value of reporting units and the related assessment of goodwill for impairment, if applicable; ● the fair value of intangibles other than goodwill; ● income taxes and the recoverability of deferred tax assets ● legal and environmental risks and exposures; and ● general credit risks associated with receivables, if any. (d) Foreign currency translation adjustments The Company’s reporting currency and the functional currency of all its operations is the U.S. dollar. Assets and liabilities of the Canadian parent company are translated to U.S. dollars using the applicable exchange rate as of the end of a reporting period. Income, expenses and cash flows are translated using an average exchange rate during the reporting period. Since the reporting currency as well as the functional currency of all entities is the U.S. Dollar there is no translation difference recorded. (e) Revenue recognition The Company recognizes revenue in terms of ASC 606 – Revenue from Contracts with Customers (ASC 606). Revenue transaction are assessed using a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration in exchange for those goods or services. The five steps are as follows: i. identify the contract with a customer; ii. identify the performance obligations in the contract; iii. determine the transaction price; iv. allocate the transaction price to performance obligations in the contract; and v. recognize revenue as the performance obligation is satisfied. Revenue from License Fees Revenue from license fees include the sale of rights to utilize the technology developed by the Company. The License fee is recognized immediately as there is no requirement to provide ongoing services or support to the Licensee in terms of the License Agreement. Revenue from hydrocarbon sales Revenue from hydrocarbon sales include the sale of hydrocarbon products and are recognized when production is sold to a purchaser at a fixed or determinable price, delivery has occurred, control has transferred and collectability of the revenue is probable. The Company’s performance obligations are satisfied at a point in time. This occurs when control is transferred to the purchaser upon delivery of contract specified production volumes at a specified point. The transaction price used to recognize revenue is a function of the contract billing terms. Revenue is invoiced, if required, upon delivery based on volumes at contractually based rates with payment typically received within 30 days after invoice date. Taxes assessed by governmental authorities on hydrocarbon sales, if any, are not included in such revenues, but are presented separately in the consolidated comprehensive statements of loss and comprehensive loss. Transaction price allocated to remaining performance obligations The Company does not anticipate entering into long-term supply contracts, rather it expects all contracts to be short-term in nature with a contract term of one year or less. The Company intends applying the practical expedient in ASC 606 exempting the disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For contracts with terms greater than one year, the Company will apply the practical expedient in ASC 606 exempting the disclosure of the transaction price allocated to remaining performance obligations if there is any variable consideration to be allocated entirely to a wholly unsatisfied performance obligation. The Company anticipates that with respect to the contracts it will enter into, each unit of product will typically represent a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. Contract balances The Company does not anticipate that it will receive cash relating to future performance obligations. However if such cash is received, the revenue will be deferred and recognized when all revenue recognition criteria are met. Disaggregation of revenue The Company has limited revenues to date. Disaggregation of revenue disclosures can be found in Note 21. Customers The Company anticipates that it will have a limited number of customers which will make up the bulk of its revenues due to the nature of the oil and gas industry. (f) General and administrative expenses General and administrative expenses will be presented net of any working interest owners, if any, of the oil and gas properties owned or leased by the Company. (g) Share-based payments The Company may grant stock options to directors, officers, employees and others providing similar services. The fair value of these stock options is measured at grant date using the Black-Scholes option pricing model taking into account the terms and conditions upon which the options were granted. Share-based compensation expense is recognized on a straight-line basis over the period during which the options vest, with a corresponding increase in equity. The Company may also grant equity instruments to consultants and other parties in exchange for goods and services. Such instruments are measured at the fair value of the goods and services received on the date they are received and are recorded as share-based compensation expense with a corresponding increase in equity. If the fair value of the goods and services received are not reliably determinable, their fair value is measured by reference to the fair value of the equity instruments granted. (h) Income taxes The Company utilizes ASC 740, Accounting for Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740, “Income Taxes”. Accounting guidance addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements, under which a company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accordingly, the Company would report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company elects to recognize any interest and penalties, if any, related to unrecognized tax benefits in tax expense. (i) Net income (loss) per share Basic net income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed on the basis of the weighted average number of common shares and common share equivalents outstanding. Dilutive securities having an anti-dilutive effect on diluted net income (loss) per share are excluded from the calculation. Dilution is computed by applying the treasury stock method for stock options and share purchase warrants. Under this method, “in-the-money” stock options and share purchase warrants are assumed to be 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 shares at the average market price during the period. (j) Cash and cash equivalents The Company considers all highly liquid investments with original contractual maturities of three months or less to be cash equivalents. (k) Accounts receivable The Company had minimal sales during the period of which all proceeds were collected therefore there are no accounts receivable balances. (l) Oil and gas property and equipment The Company follows the successful efforts method of accounting for its oil and gas properties. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with delay rentals and exploration overhead are charged against earnings as incurred. Costs of successful exploratory efforts along with acquisition costs and the costs of development of surface mining sites are capitalized. Site development costs are initially capitalized, or suspended, pending the determination of proved reserves. If proved reserves are found, site development costs remain capitalized as proved properties. Costs of unsuccessful site developments are charged to exploration expense. For site development costs that find reserves that cannot be classified as proved when development is completed, costs continue to be capitalized as suspended exploratory site development costs if there have been sufficient reserves found to justify completion as a producing site and sufficient progress is being made in assessing the reserves and the economic and operating viability of the project. If management determines that future appraisal development activities are unlikely to occur, associated suspended exploratory development costs are expensed. In some instances, this determination may take longer than one year. The Company reviews the status of all suspended exploratory site development costs quarterly. Capitalized costs of proved oil and gas properties are depleted by an equivalent unit-of-production method. Proved leasehold acquisition costs, less accumulated amortization, are depleted over total proved reserves, which includes proved undeveloped reserves. Capitalized costs of related equipment and facilities, including estimated asset retirement costs, net of estimated salvage values and less accumulated amortization are depreciated over proved developed reserves associated with those capitalized costs. Depletion is calculated by applying the depreciation, depletion and amortization (“DD&A”) rate (amortizable base divided by beginning of period proved reserves) to current period production. Costs associated with unproved properties are excluded from the depletion calculation until it is determined whether or not proved reserves can be assigned to such properties. The Company assesses its unproved properties for impairment annually, or more frequently if events or changes in circumstances dictate that the carrying value of those assets may not be recoverable. Proved properties will be assessed for impairment annually, or more frequently if events or changes in circumstances dictate that the carrying value of those assets may not be recoverable. Individual assets are grouped for impairment purposes based on a common operating location. If there is an indication the carrying amount of an asset may not be recovered, the asset is assessed for potential impairment by management through an established process. If, upon review, the sum of the undiscounted pre-tax cash flows is less than the carrying value of the asset, the carrying value is written down to estimated fair value. Because there is usually a lack of quoted market prices for long-lived assets, the fair value of impaired assets is typically determined based on the present values of expected future cash flows using discount rates believed to be consistent with those used by principal market participants or by comparable transactions. The expected future cash flows used for impairment reviews and related fair value calculations are typically based on judgmental assessments of future production volumes, commodity prices, operating costs, and capital investment plans, considering all available information at the date of review. Gains or losses are recorded for sales or dispositions of oil and gas properties which constitute an entire common operating field or which result in a significant alteration of the common operating field’s DD&A rate. These gains and losses are classified as asset dispositions in the accompanying consolidated statements of loss and comprehensive loss. Partial common operating field sales or dispositions deemed not to significantly alter the DD&A rates are generally accounted for as adjustments to capitalized costs with no gain or loss recognized. The Company capitalizes interest costs incurred and attributable to material unproved oil and gas properties and major development projects of oil and gas properties. (m) Other property and equipment Depreciation and amortization of other property and equipment, including corporate and leasehold improvements, are provided using the straight-line method based on estimated useful lives ranging from three to ten years. Interest costs incurred and attributable to major corporate construction projects are also capitalized. (n) Asset retirement obligations and environmental liabilities The Company recognizes liabilities for retirement obligations associated with tangible long-lived assets, such as producing sites when there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The initial measurement of an asset retirement obligation is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the consolidated balance sheet. When the assumptions used to estimate a recorded asset retirement obligation change, a revision is recorded to both the asset retirement obligation and the asset retirement cost. The Company’s asset retirement obligations also include estimated environmental remediation costs which arise from normal operations and are associated with the retirement of such long-lived assets. The asset retirement cost is depreciated using a systematic and rational method similar to that used for the associated property and equipment. (o) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Liabilities for environmental remediation or restoration claims resulting from allegations of improper operation of assets are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. Expenditures related to such environmental matters are expensed or capitalized in accordance with the Company’s accounting policy for property and equipment. (p) Fair value measurements Certain of the Company’s assets and liabilities are measured at fair value at each reporting date. Fair value represents the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants. This price is commonly referred to as the “exit price.” Fair value measurements are classified according to a hierarchy that prioritizes the inputs underlying the valuation techniques. This hierarchy consists of three broad levels: ● Level 1 – Inputs consist of unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority. When available, the Company measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. ● Level 2 – Inputs consist of quoted prices that are generally observable for the asset or liability. Common examples of Level 2 inputs include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in markets not considered to be active. ● Level 3 – Inputs are not observable from objective sources and have the lowest priority. The most common Level 3 fair value measurement is an internally developed cash flow model. (q) Comparative amounts The comparative amounts presented in these consolidated financial statements have been reclassified where necessary to conform to the presentation used in the current year. (r) Recent accounting standards Issued accounting standards not yet adopted In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (subtopic 470-20): and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). Certain accounting models for convertible debt instruments with beneficial conversion features or cash conversion features are removed from the guidance and for equity instruments the contracts affected are free standing instruments and embedded features that are accounted for as derivatives, the settlement assessment was simplified by removing certain settlement requirements. This ASU is effective for fiscal years and interim periods beginning after December 15, 2021. The effects of this ASU on the Company’s unaudited condensed consolidated financial statements is currently being assessed and is expected to have an impact on the treatment of certain convertible instruments, if any, and the derivative liabilities, if any, associated with these convertible instruments. The FASB issued several additional updates during the period, none of these standards are either applicable to the Company or require adoption at a future date and none are expected to have a material impact on the consolidated financial statements upon adoption. Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
Going Concern
Going Concern | 6 Months Ended |
Feb. 28, 2021 | |
Going Concern [Abstract] | |
GOING CONCERN | 3. GOING CONCERN The Company has incurred losses for several years and, at February 28, 2021, has an accumulated deficit of $92,109,171, (August 31, 2020 - $90,664,349) and working capital (deficiency) of $10,893,325 (August 31, 2020 - $12,955,134). These unaudited condensed consolidated financial statements have been prepared on the basis that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The ability of the Company to continue as a going concern is dependent on obtaining additional financing, which it is currently in the process of obtaining. There is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These unaudited condensed consolidated financial statements do not reflect the adjustments or reclassifications that would be necessary if the Company were unable to continue operations in the normal course of business. |
Notes Receivable
Notes Receivable | 6 Months Ended |
Feb. 28, 2021 | |
Notes Receivable Disclosure [Abstract] | |
NOTES RECEIVABLE | 4. NOTES RECEIVABLE The Company’s notes receivables consist of: Maturity Date Interest February 28, 2021 August 31, Private debtor March 16, 2020 5 % $ 76,000 $ 76,000 Interest accrued 15,044 13,159 $ 91,044 $ 89,159 Disclosed as follows: Current portion $ 91,044 $ 89,159 - - $ 91,044 $ 89,159 Manhatten Enterprises The Company advanced Manhatten Enterprises the sum of $76,000 pursuant to a promissory note on March 16, 2017. The note, which bears interest at 5% per annum, matured on March 16, 2020. The Note has reached its maturity date and is currently on demand until a new agreement is negotiated. |
Mineral Leases
Mineral Leases | 6 Months Ended |
Feb. 28, 2021 | |
Mineral Leases [Abstract] | |
MINERAL LEASES | 5. MINERAL LEASES TMC SITLA BLM Mineral Mineral Mineral Lease Lease Lease Total Cost August 31, 2019 $ 11,091,388 $ 19,755 $ 23,800,000 $ 34,911,143 Additions - - - - August 31, 2020 11,091,388 19,755 23,800,000 34,911,143 Additions - - - - February 28, 2021 $ 11,091,388 $ 19,755 $ 23,800,000 $ 34,911,143 Accumulated Amortization August 31, 2019, August 31, 2020 and February 28, 2021 $ - $ - $ - $ - Carrying Amounts August 31, 2019 $ 11,091,388 $ 19,755 $ 23,800,000 $ 34,911,143 August 31, 2020 $ 11,091,388 $ 19,755 $ 23,800,000 $ 34,911,143 February 28, 2021 $ 11,091,388 $ 19,755 $ 23,800,000 $ 34,911,143 (a) TMC Mineral Lease On June 1, 2015, the Company acquired TMC Capital, LLC (“TMC”), which then held a mining and mineral lease, subleased from Asphalt Ridge, Inc., on the Asphalt Ridge property located in Uintah County, Utah. Effective August 10, 2020, the TMC mineral lease was terminated and a new Short-Term Mining Lease agreement between Valkor LLC (“Valkor”) and Asphalt Ridge, Inc. (the “Lease”) was entered into with a back to back Short-Term Mining and Mineral Sublease entered into between Valkor and TMC, whereby all of the rights and obligations of the lease were sublet to TMC (the “TMC Mineral Lease” or the “Sublease”). The salient terms of the TMC Mineral Lease are as follows: 1. The exclusive right and privilege during the term of the Sublease to explore for and mine by any methods now known or hereafter developed, extract and sell or otherwise dispose of, any and all asphalt, bitumen, maltha, tar sands, oil sands (“Tar Sands”) and any and all other minerals of whatever kind or nature which are associated with or contained in any Tar Sands deposit, whether hydrocarbon, metalliferous, non-metalliferous or otherwise, including, but not limited to, gold, silver, platinum, sand and clays on and in the Property, and whether heretofore known or hereafter discovered (collectively, “Minerals”), from the ground surface to a depth of 3,000 feet above Mean Sea level (MSL), together with the products and byproducts of the processing of the Minerals, and together with the right to use so much of the surface of the Property as may be necessary in the exercise of said rights and in furtherance of the purposes expressed herein, including ingress and egress, and together with the right to construct on the Property such improvements as may be reasonably necessary to the exploration for and the mining, extraction, removal, processing, beneficiating, sale or other disposition of the Minerals, but not including the construction of any new roads without the prior written consent of Valkor as the Sublessor; and 2. The right to use any or all of the Water Rights (as defined in the Sublease) at any time during the term of the Sublease in conducting its activities as provided for therein; provided that approval of change applications may need to be obtained in order to allow use of the Water Rights on the Property for mining purposes. 3. The term of the Sublease (the “Term”) is for the period ending June 30, 2021 unless the Short Term Mining Lease between Valkor and Asphalt Ridge is terminated earlier. 4. During the Term and subject to certain rights reserved to Asphalt Ridge, Inc. as Lessor under the Lease (the “Lessor Reserved Rights”), TMC as the Sublessee shall have the right to explore, develop, mine, drill, pump, process, produce and market the Minerals in, on, or under the Property, including any existing stockpiles or dumps, whether by drilling, surface, strip, contour, quarry, bench, underground, solution, in situ or other mining methods, and in connection therewith, Sublessee shall have the right to conduct the following activities and operations (“Operations”) on the Property in accordance with the terms of the Sublease and applicable laws and regulations: a. To mine, process, mill, beneficiate, treat, concentrate, extract, refine, leach, convert, upgrade, prepare for market, any and all Minerals mined or otherwise extracted from the Property; b. To temporarily store or permanently dispose on the Property Minerals, water, waste or other materials resulting from Operations on the Property; c. to use and develop any and all ditches, flumes, water and Water Rights and appurtenant to the Property; and d. to use so much of the surface and surface resources of the Property as may be reasonably necessary in the exercise of said rights, or which Sublessee may deem desirable or convenient, including rights of ingress and egress in connection with its operations on the Property. During the term of the Sublease the Sublessee has the right to use any or all of the Water Rights at any time during the Term in conducting its activities as provided for therein; provided that approval of change applications may need to be obtained in order to allow use of the Water Rights on the Property for mining purposes. 5. TMC will pay Valkor the sum of $25,000 on lease commencement, and thereafter $15,000 per month until expiration of the lease 6. TMC will pay a production royalty as follows: a. For “Bitumen Product” produced from Tar Sands mined or otherwise extracted from the Property shall be eight percent (8%) of the gross sales revenue received by Sublessee from the sale of such Bitumen Product at the Property. As used herein, the term “Bitumen Product” means naturally occurring oil in the Tar Sands that is sold in whatever form, including run-of-mine, screened, processed, or after the addition of any additives and/or upgrading of the Bitumen Product b. The Production Royalty on all other Minerals produced from Bitumen Product mined or otherwise extracted from the Property and sold shall be eight percent (8%) of the gross sales revenue received by Sublessee. Subject to certain provisions, wherein sales of products and byproducts are wholly accounted for, should sales occur to a third party purchaser that is engaged in marketing a variety of products or by-products made from such materials, payments to Sublessor may vary. If Sublessee’s receipts are measurably greater than comparable sales by others of similar products or byproducts which may be due to the nature of high end by-products such as frac sands produced and sold by the third party, the Production Royalty to Sublessor shall be the greater of a 5% royalty on the gross value of the product and by-products sold by the third party or 50% of the gross revenue received by Sublessee from the sale of such products or byproducts, as the case may be. c. The Production Royalty on oil and gas, and associated hydrocarbons produced by Sublessee using standard oil and gas drilling recovery techniques above 3000 feet MSL and sold shall be 1/6 of the gross market value. d. Any sales of Minerals to third parties shall be of such a nature that the sales price adequately represents the market value of all potential products or by-products. e. Minerals shall be deemed sold at the time they leave the Property or at the time the Minerals are transferred by Sublessee to an Affiliate. “Affiliate” means any business entity which, directly or indirectly, is owned or controlled by Sublessee or owns or controls Sublessee, or any entity or firm acquiring Minerals from Sublessee otherwise than at arm’s-length. 7. Prior to commencing any Operations, Sublessee shall have obtained final approval of all necessary mining and reclamation plans from the Utah Division of Oil, Gas and Mining, or its successor agency (the “Division”) authorizing Sublessee’s Operations and shall have posted with and obtained approval from the Division of a surety bond or other financial guarantee (“Reclamation Surety”) in the amount and form acceptable to the Division and sufficient to guarantee Sublessee’s performance of reclamation in accordance with Utah laws and regulations. The amount of the surety bond or financial guarantee shall be periodically reviewed in accordance with Division’s regulations and, if the Division directs, increased or otherwise modified as directed by the Division. Sublessee shall keep Sublessor fully informed as to reclamation costs and bonding requirements and Sublessor’s approval of the bond amount shall be required. Sublessor will not unreasonably withhold such approval. 8. Under the terms of the Lease, Asphalt Ridge, Inc. has reserved to itself the Lessor Reserved Rights, including the right at any time during the term of the Lease to convey all or part of the Property or the Water Rights, or rights therein, subject to the Lease. Lessor is required to give Valkor, as Sublessor, notice of any such conveyance. Upon Sublessor’s receipt of notice of any sale or conveyance of the Property by Lessor, Sublessor must promptly notify TMC, as Sublessee, in writing of any such conveyance. (b) SITLA Mineral Lease (Petroteq Oil Recovery, LLC mineral lease) On June 1, 2018, the Company acquired mineral rights under two mineral leases entered into between the State of Utah’s School and Institutional Trust Land Administration (“SITLA”), as lessor, and POSR, as lessee, covering lands in Asphalt Ridge that largely adjoin the lands held under the TMC Mineral Lease (collectively, the “SITLA Mineral Leases”). The SITLA Mineral Leases are valid until May 30, 2028 and have rights for extensions based on reasonable production. The leases remain in effect beyond the original lease term so long as mining and sale of the tar sands are continued and sufficient to cover operating costs of the Company. Advanced royalty of $10 per acre are due annually each year the lease remains in effect and can be applied against actual production royalties. The advanced royalty is subject to price adjustment by the lessor after the tenth year of the lease and then at the end of each period of five years thereafter. Production royalties payable are 8% of the market price of marketable product or products produced from the tar sands and sold under arm’s length contract of sale. Production royalties have a minimum of $3 per barrel of produced substance and may be increased by the lessor after the first ten years of production at a maximum rate of 1% per year and up to 12.5%. (c) BLM Mineral Lease On January 18, 2019, the Company paid $10,800,000 for the acquisition of 50% of the operating rights under U.S. federal oil and gas leases, administered by the U.S. Department of Interior’s Bureau of Land Management (“BLM”) covering approximately 5,960 gross acres (2,980 net acres) within the State of Utah. The total consideration of $10,800,000 was settled by a cash payment of $1,800,000 and by the issuance of 15,000,000 shares at an issue price of $0.60 per share, amounting to $9,000,000. On July 22, 2019, the Company acquired the remaining 50% of the operating rights under U.S. federal oil and gas leases, administered by the BLM covering approximately 5,960 gross acres (2,980 net acres) within the State of Utah, for a total consideration of $13,000,000 settled by the issuance of 30,000,000 shares at an issue price of $0.40 per share, amounting to $12,000,000 and cash of $1,000,000, of which $100,000 has not been paid to date. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Feb. 28, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT Oil Other Total Cost August 31, 2019 $ 35,555,827 $ 438,168 $ 35,993,995 Additions 2,072,058 692 2,072,750 August 31, 2020 37,627,885 438,860 38,066,745 Additions 4,777,648 - 4,777.648 February 28, 2021 $ 42,405,533 $ 438,860 $ 42,844,393 Accumulated Amortization August 31, 2019 $ 2,148,214 $ 232,131 $ 2,380,345 Additions - 103,888 103,888 August 31, 2020 2,148,214 336,019 2,484,233 Additions - 23,045 23,045 February 28, 2021 $ 2,148,214 $ 359,064 $ 2,507,278 Carrying Amount August 31, 2019 $ 33,407,613 $ 206,037 $ 33,613,650 August 31, 2020 $ 35,479,671 $ 102,841 $ 35,582,512 February 28, 2021 $ 40,253,319 $ 79,796 $ 40,337,115 (a) Oil Extraction Plant In June 2011, the Company commenced the development of an oil extraction facility on its mineral lease in Maeser, Utah and entered into construction and equipment fabrication contracts for this purpose. On September 1, 2015, the first phase of the plant was completed and was ready for production of hydrocarbon products for resale to third parties. During the year ended August 31, 2017 the Company began the dismantling and relocating the oil extraction facility to its TMC Mineral Lease facility to improve production and logistical efficiencies while continuing its project to increase production capacity to a minimum capacity of 400-500 barrels per day. The plant has been substantially relocated to the TMC mining site and expansion of the plant to production of 400-500 barrels per day has been substantially completed. As a result of the relocation of the plant and the expansion that has taken place to date, the Company reassessed the reclamation and restoration provision and raised an additional liability of $2,375,159 during the fiscal year ended August 31, 2019 which is capitalized to the cost of the plant and will be depreciated according to our depreciation policy. As a result of the relocation of the plant and the planned expansion of the plant’s production capacity to 400-500 barrels per day, and subsequently to an additional 3,000 barrels per day, the Company re-evaluated the depreciation policy of the oil extraction plant and the oil extraction technologies (Note 11) and determined that depreciation should be recorded on the basis of the expected production of the completed plant at various capacities. No amortization has been recorded during the 2020 and 2019 fiscal years as there has only been test production during these years. |
Leases
Leases | 6 Months Ended |
Feb. 28, 2021 | |
Leases Abstract | |
LEASES | 7. LEASES The Company entered into a real property lease for office space located at 15315 Magnolia Blvd., Sherman Oaks, California. The lease commenced on September 1, 2019 and expires on August 31, 2024, monthly rental expense is $4,941 per month with annual 3% escalations during the term of the lease. The initial value of the right-of-use asset was $245,482 and the operating lease liability was $245,482. The Company monitors for events or changes in circumstances that require a reassessment of our lease. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding right-of-use asset unless doing so would reduce the carrying amount of the right-of-use asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative right-of-use asset balance is recorded as a loss in the statement of operations and comprehensive loss. During April 2015, the Company entered into two equipment loan agreements in the aggregate amount of $282,384, with financial institutions to acquire equipment for the oil extraction facility. The loans had a term of 60 months and bore interest at rates between 4.3% and 4.9% per annum. Principal and interest were paid in monthly installments. These loans were secured by the acquired assets. On May 7, 2018, the Company entered into a negotiable promissory note and security agreement with Commercial Credit Group to acquire a crusher from Power Equipment Company for $660,959. An implied interest rate was calculated as 12.36% based on the timing of the initial repayment of $132,200 and subsequent 42 monthly instalments of $15,571. The terms of the note were renegotiated during June 2020, and the instalments were amended to $16,140 per month due to payments not being made during the pandemic. The promissory note is secured by the crusher. Discount Rate To determine the present value of minimum future lease payments for operating leases at September 1, 2019, the Company was required to estimate a rate of interest that it would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment (the “incremental borrowing rate” or “IBR”). The Company determined the appropriate IBR by identifying a reference rate and making adjustments that take into consideration financing options and certain lease-specific circumstances. For the reference rate, the Company used the 5 year ARM (adjustable-rate mortgage) interest rate at the time of entering into the agreement and compared that rate to the Company’s weighted average cost of funding at the time of entering into the operating lease. The Company determined that 10.00% was an appropriate incremental borrowing rate to apply to its real-estate operating lease. Right of use assets Right of use assets included in the consolidated Balance Sheet are as follows: February 28, 2021 August 31, Non-current assets Right of use assets – operating leases, net of amortization $ 188,598 $ 209,101 Right of use assets – finance leases, net of depreciation – included in property, plant and equipment 698,023 718,193 Lease costs consist of the following: Six months 2021 Six months 2020 Finance lease cost: $ 36,412 $ 107,992 Depreciation of right of use assets 23,045 85,842 Interest expense on lease liabilities 13,367 22,150 Operating lease expense 19,764 62,610 Total lease cost $ 56,176 $ 170,602 Other lease information: Six months 2021 Six months 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ (13,367 ) $ (22,150 ) Operating cash flows from operating leases (19,764 ) (62,610 ) Financing cash flows from finance leases $ (83,473 ) $ (103,203 ) Right-of -use assets obtained in exchange for new operating leases $ - 245,482 Weighted average remaining lease term – finance leases 0.86 years 2.25 years Weighted average remaining lease term – operating leases 2.50 years 3.50 years Weighted average discount rate – finance leases 13.52 % 12.86 % Weighted average discount rate – operating leases 10.00 % 10.00 % Maturity of Leases The amount of future minimum lease payments under finance leases is as follows: February 28, August 31, Undiscounted minimum future lease payments Total instalments due: Within 1 year $ 177,540 $ 193,680 1 to 2 years - 80,700 2 to 3 years - - 177,540 274,380 Imputed interest (13,581 ) (26,948 ) Total finance lease liability $ 163,959 $ 247,432 Disclosed as: Current portion $ 163,959 $ 172,374 Non-current portion - 75,058 $ 163,959 $ 247,432 The amount of future minimum lease payments under operating leases is as follows: February 28, August 31, Undiscounted minimum future lease payments Total instalments due: Within 1 year $ 61,987 $ 61,070 1 to 2 years 63,846 62,903 2 to 3 years 65,762 64,790 3 to 4 years 33,367 66,734 224,962 255,497 Imputed interest (36,364 ) (46,396 ) Total operating lease liability $ 188,598 $ 209,101 Disclosed as: Current portion $ 45,136 $ 42,053 Non-current portion 143,462 167,048 $ 188,598 $ 209,101 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Feb. 28, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 8. INTANGIBLE ASSETS Oil Technologies Cost August 31, 2019 $ 809,869 Additions - August 31, 2020 809,869 Additions - February 28, 2021 $ 809,869 Accumulated Amortization August 31, 2019 $ 102,198 Additions - August 31, 2020 102,198 Additions - February 28, 2021 $ 102,198 Carrying Amounts August 31, 2019 $ 707,671 August 31, 2020 $ 707,671 February 28, 2021 $ 707,671 Oil Extraction Technologies During the year ended August 31, 2012, the Company acquired a closed-loop solvent based oil extraction technology which facilitates the extraction of oil from a wide range of bituminous sands and other hydrocarbon sediments. The Company has filed patents for this technology in the USA and Canada and has employed it in its oil extraction plant. The Company commenced partial production from its oil extraction plant on September 1, 2015 and was amortizing the cost of the technology over fifteen years, the expected life of the oil extraction plant. Since the company has increased the capacity of the plant to 400 to 500 barrels daily during 2018, and expects to further expand the capacity to an additional 3,000 barrels daily, it determined that a more appropriate basis for the amortization of the technology is the units of production at the plant after commercial production begins again. No amortization of the technology was recorded during the 2021 and 2020 fiscal years. |
Debt
Debt | 6 Months Ended |
Feb. 28, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | 9. DEBT Principal Principal Lender Maturity Date Interest February 28, 2021 August 31, Private lenders On demand 10.00 % 105,000 115,000 Private lenders August 31, 2020 5.00 % 481,733 468,547 Private lenders On demand 10.00 % - 100,000 $ 586,733 $ 683,547 The maturity date of debt is as follows: February 28, 2021 August 31, Principal classified as repayable within one year $ 586,733 $ 683,547 Principal classified as repayable later than one year - - $ 586,733 $ 683,547 (a) Private lenders (i) On July 3, 2018, the Company received a $200,000 advance from a private lender bearing interest at 10% per annum and repayable on September 2, 2018. The loan is guaranteed by the Chairman of the Board. During the year ended August 31, 2020 the Company repaid $35,000 of the principal outstanding and a further $10,000 during the six months ended February 28, 2021. On July 6, 2020 in accordance with the terms of a debt settlement agreement entered into, the lender converted $50,000 into 1,250,000 shares at a conversion price of $0.04 per share. (ii) On October 10, 2014, the Company issued two secured debentures for an aggregate principal amount of CAD $1,100,000 to two private lenders. The debentures initially bore interest at a rate of 12% per annum, were originally scheduled to mature on October 15, 2017 and are secured by all of the assets of the Company. In addition, the Company issued common share purchase warrants to acquire an aggregate of 16,667 common shares of the Company. On September 22, 2016, the two secured debentures were amended to extend the maturity date to January 31, 2017. The terms of these debentures were renegotiated with the debenture holders to allow for the conversion of the secured debentures into common shares of the Company at a rate of CAD $4.50 per common share and to increase the interest rate, starting June 1, 2016, to 15% per annum. On January 31, 2017, the two secured debentures were amended to extend the maturity date to July 31, 2017. Additional transaction costs and penalties incurred for the loan modifications amounted to $223,510. On February 9, 2018, the two secured debentures were renegotiated with the debenture holders to extend the loan to May 1, 2019. A portion of the debenture amounting to CAD $628,585 was amended to be convertible into common shares of the Company, of which, CAD $365,000 were converted on May 1, 2018. The remaining convertible portion is interest free and was to be converted from August 1, 2018 to January 1, 2019. The remaining non-convertible portion of the debenture was to be paid off in 12 equal monthly instalments beginning May 1, 2018, bearing interest at 5% per annum. On September 11, 2018, the remaining convertible portion of the debenture was converted into common shares of the Company and a portion of the non-convertible portion of the debenture was settled through the issue of 316,223 common shares of the Company. On December 13, 2019, the maturity date of the non-convertible portion of the debenture was extended to January 31, 2020 and the interest rate was increased to 10% per annum. Effective January 31, 2020, the terms of the debenture were renegotiated and the maturity date was extended to August 31, 2020. The maturity date of the debentures are currently being renegotiated. (iii) On October 4, 2018, the Company entered into a debenture line of credit of $9,500,000 from Bay Private Equity and received an advance of $100,000. The debenture matured on September 17, 2019 and bears interest at 10% per annum. On September 23, 2020, the principal amount of the debenture of $100,000 plus accrued interest of $18,904 was converted into 2,161,892 shares at a conversion price of $0.055 per share. |
Convertible Debentures
Convertible Debentures | 6 Months Ended |
Feb. 28, 2021 | |
Convertible Debentures Disclosure [Abstract] | |
CONVERTIBLE DEBENTURES | 10. CONVERTIBLE DEBENTURES Principal Principal Lender Maturity Date Interest February 28, August 31, Calvary Fund I LP July 31, 2021 12.00 % 250,000 250,000 July 31, 2021 12.00 % 480,000 480,000 August 7, 2021 0 % 150,000 150,000 SBI Investments LLC December 15, 2020 10.00 % 200,000 250,000 January 16, 2021 10.00 % 55,000 55,000 Bay Private Equity, Inc. March 31, 2021 5.00 % - 3,661,874 February 20, 2021 5.00 % 2,400,000 2,400,000 Cantone Asset Management LLC October 19, 2020 7.00 % 250,000 300,000 December 17, 2020 7.00 % 240,000 240,000 January 14, 2021 7.00 % 40,000 240,000 December 30, 2021 7.00 % 300,000 - Private lender October 29, 2020 10.00 % 200,000 200,000 Petroleum Capital Funding LP. November 26, 2023 10.00 % 318,000 318,000 December 4, 2023 10.00 % 432,000 432,000 March 30, 2024 10.00 % 471,000 471,000 Power Up Lending Group LTD May 7, 2021 12.00 % - 64,300 June 4, 2021 12.00 % - 69,900 June 19, 2021 12.00 % - 82,500 November 11, 2021 12.00 % 140,800 - January 12, 2022 12.00 % 86,350 - February 24, 2022 12.00 % 86,350 - EMA Financial, LLC April 22, 2021 8.00 % 36,131 150,000 Morison Management S.A July 31, 2021 10.00 % - 192,862 Bellridge Capital LP. March 31, 2021 15.00 % 2,900,000 - Stirling Bridge Resources October 29, 2021 10.00 % 15,000 - Alpha Capital Anstalt August 6, 2021 21.00 % 500,000 - Rijtec Enterprises Limited Pension Scheme November 11, 2021 10.00 % 32,000 - Private lender November 30, 2021 10.00 % 150,000 - 9,732,631 10,007,436 Unamortized debt discount (1,221,277 ) (1,173,112 ) Total loans $ 8,511,354 $ 8,834,324 The maturity date of the convertible debentures are as follows: February 28, August 31, Principal classified as repayable within one year $ 7,797,628 $ 8,227,257 Principal classified as repayable later than one year 713,726 607,067 $ 8,511,354 $ 8,834,324 (a) Cavalry Fund I LP (i) On October 12, 2018, the Company issued 250 one year units to Cavalry for gross proceeds of $250,000, each unit consisting of a $1,000 principal convertible unsecured debenture, bearing interest at 10% per annum and convertible into common shares at $0.86 per share, and a common share purchase warrant exercisable for 290,500 shares at an exercise price of $0.86 per share, which warrant expired on October 12, 2019. During December 2019, the maturity date of the convertible debenture was amended to October 12, 2020 and the conversion price was amended to $0.18 per share. In terms of the ARA entered into on August 7, 2020, the maturity date of the convertible debenture was amended to July 31, 2021, the interest rate was amended to 12% per annum and the conversion price was amended to $0.0412 per share. (ii) On August 19, 2019, the Company issued a convertible debenture to Calvary for an aggregate principal amount of $480,000, including an original issue discount of $80,000, for net proceeds of $374,980 after certain legal expenses, and a warrant exercisable for 2,666,666 common shares at an exercise price of $0.15 per share. The convertible debenture bore interest at 3.3% per annum and matured on August 29, 2020. The convertible debenture may be converted into common shares of the Company at a conversion price of $0.17 per share. In terms of the ARA entered into on August 7, 2020, the maturity date of the convertible debenture was amended to July 31, 2021 and the conversion price was amended to $0.0412 per share and the exercise price of the warrant was amended to $0.0412 per share and the maturity date was amended to July 31, 2021. (iii) On August 7, 2020, the Company issued a convertible debenture to Calvary for an aggregate principal amount of $150,000, including an original issue discount of $25,000, for net proceeds of $125,000, and a warrant exercisable for 3,033,980 common shares at an exercise price of $0.0412 per share. The convertible debenture bore interest at 0.0% per annum and matured on August 7, 2021. The convertible debenture may be converted into common shares of the Company at a conversion price of $0.0412 per share. (b) SBI Investments, LLC (i) On October 15, 2018, the Company entered into an agreement with SBI Investments, LLC (“SBI”) whereby the Company issued 250 one year units for proceeds of $250,000, each debenture consisting of a $1,000 principal convertible unsecured debenture, bearing interest at 10% per annum and convertible into common shares at $0.86 per share, and a warrant exercisable for 1,162 shares of common stock at an exercise price of $0.86 per share. The warrants expired on October 15, 2019 unexercised. During December 2019, the maturity date of the convertible loan was extended to October 12, 2020 and the conversion price of the note was reset to $0.18 per share. The Company repaid $50,000, and the maturity date of the loan has been extended to December 15, 2020. The Company is busy renegotiating the terms of the loan. (ii) On January 16, 2020, the Company entered into an agreement with SBI whereby the Company issued a convertible promissory note for $55,000 for gross proceeds of $50,000, bearing interest at 10% per annum and convertible into common shares at $0.14 per share. The convertible note matures on January 16, 2021. In conjunction with the convertible promissory note, the Company issued a warrant exercisable for 357,142 shares of common stock at an exercise price of $0.14 per share, expiring on January 16, 2021. The terms of the note are currently being renegotiated. (c) Bay Private Equity, Inc. (i) On September 17, 2018, the Company issued 3 one year convertible units of $1,100,000 each to Bay Private Equity, Inc. (“Bay”), including an original issue discount (“OID”) of $100,000 per unit, for net proceeds of $2,979,980. These units bear interest at 5% per annum and matured one year from the date of issue. Each unit consists of one senior secured convertible debenture of $1,100,000 and 250,000 common share purchase warrants. Each convertible debenture may be converted to common shares of the Company at a conversion price of $1.00 per share. Each common share purchase warrant entitles the holder to purchase an additional common share of the Company at a price of $1.10 per share for one year after the issue date. On January 23, 2019, $400,000 of the principal outstanding was repaid out of the proceeds raised on the January 16, 2019 Bay convertible debenture, see (ii) below. On September 17, 2019, the warrants expired, unexercised. During December 2019, the maturity date was extended to January 15, 2020. The maturity date was not extended further during the year and the note was in default as at August 31, 2020. On September 1, 2020, the convertible debenture was assigned to Bellridge Capital, LP (“Bellridge”). Bellridge enforced the penalty provisions of the original agreement, resulting in an increase in the capital due under the debenture by $610,312 , and an increase of 10% to the interest rate, from the date of original default which was September 19, 2019. On September 23, 2020, in accordance with the terms of the amended agreement entered into with Bellridge, the maturity date was extended to March 31, 2021 and the conversion price was amended to $0.055 per share. (ii) On January 16, 2019, the Company issued a convertible debenture of $2,400,000, including an OID of $400,000, for net proceeds of $2,000,000. The convertible debenture bears interest at 5% per annum and matured on October 15, 2019. The convertible debenture may be converted to 5,000,000 common shares of the Company at a conversion price of $0.40 per share. $400,000 of the proceeds raised was used to repay a portion of the $3,300,000 convertible debenture issued to Bay Private Equity on September 17, 2018 (Note 14(d)(i)). On August 20, 2020, in accordance with the terms of an amendment entered into with Bay, the maturity date was extended to February 20, 2021. The Company is currently renegotiating the terms of this loan. (d) Cantone Asset Management, LLC (i) On July 19, 2019, the Company issued a convertible debenture to Cantone Asset Management, LLC (“Cantone”) in the aggregate principal amount of $300,000, including an OID of $50,000 for net proceeds of $234,000 after certain issue expenses. The convertible debenture bears interest at 7% per annum and the gross proceeds, less the OID, of $250,000 is convertible into common shares at a conversion price of $0.19 per share, and matured on October 19, 2020. In conjunction with the convertible debenture, the Company issued a warrant exercisable for 1,315,789 common shares at an exercise price of $0.24 per share, expiring on October 19, 2020. On July 7, 2020, the Company entered into an Amending Agreement (“the Amendment”) whereby the conversion price of the convertible debenture was amended to $0.037 per share and the warrant exercise price was amended to $0.03 per share. On September 23, 2020, $50,000 of the principal was repaid out of the proceeds of the $300,000 convertible note issued to Cantone Asset Management. (ii) On September 19, 2019, the Company issued a convertible debenture to Cantone in the aggregate principal amount of $240,000, including an original issue discount of $40,000, for net proceeds of $200,000. The convertible debenture bears interest at 7% per annum and the gross proceeds less the OID, of $200,000 is convertible into common shares at a conversion price of $0.21 per share, and matures on December 17, 2020. In conjunction with the convertible debenture, the Company issued a warrant exercisable for 952,380 common shares at an exercise price of $0.26 per share, expiring on December 17, 2020. In accordance with the terms of the Amendment entered into on July 7, 2020, the conversion price was amended to $0.037 per share and the warrant exercise price was amended to $0.03 per share. (iii) On October 14, 2019, the Company issued a convertible debenture to Cantone in the aggregate principal amount of $240,000, including an original issue discount of $40,000, for net proceeds of $200,000. The convertible debenture bears interest at 7% per annum and the gross proceeds less the OID, of $200,000 is convertible into common shares at a conversion price of $0.17 per share, and matures on January 14, 2021. In conjunction with the convertible debenture, the Company issued a warrant exercisable for 1,176,470 common shares at an exercise price of $0.17 per share, expiring on January 16, 2021. In accordance with the terms of the Amendment entered into on July 7, 2020, the conversion price of the convertible debenture was amended to $0.037 per share and the warrant exercise price was amended to $0.03 per share. On January 14, 2021, $200,000 of the convertible debenture was converted into 5,405,405 shares of common stock at a conversion price of $0.037 per share. (iv) On September 23, 2020, the Company issued a convertible debenture to Cantone Asset Management in the aggregate principal amount of $300,000, including an original issue discount of $50,000, for net proceeds of $247,500. The convertible debenture bears interest at 7% per annum and the gross proceeds less the OID, of $250,000 is convertible into common shares at a conversion price of $0.055 per share until September 23, 2021 and thereafter at $0.08 per share. The convertible debenture matures on December 23, 2021. In conjunction with the convertible debenture, the Company issued a warrant exercisable for 4,545,454 common shares at an exercise price of $0.055 per share, expiring on December 23, 2021. (e) Private lender On October 29, 2019, the Company issued a convertible debenture to a private lender in the aggregate principal amount of $200,000. The convertible debenture bears interest at 10.0% per annum and matured on October 29, 2020. The convertible debenture may be converted into common shares of the Company at a conversion price of $0.18 per share. The Company is currently renegotiating the terms of the convertible debenture with the lender. In conjunction with the convertible debenture, the Company issued a warrant exercisable for 555,555 common shares at an exercise price of $0.18 per share, which warrant expired on October 29, 2020. (f) Petroleum Capital Funding LP. All of the convertible notes issued to Petroleum Capital Funding LP. (“PCF”) are secured by a first priority lien on all bitumen reserves at the Asphalt Ridge property consisting of 8,000 acres. The Company may force the conversion of all of the convertible debentures if the trading price of the Company’s common shares on the TSX Venture Exchange is above $0.40 for 20 consecutive trading days, with an average daily volume of greater than 1 million common shares, and has agreed to certain restrictions on paying dividends, registration rights and rights of first refusal on further debt and equity offerings. (i) On November 26, 2019, further to a term sheet entered into with PCF, the Company issued a convertible debenture in the aggregate principal amount of $318,000, including an OID of $53,000 for net proceeds of $226,025 after certain issue expenses. The convertible debenture bears interest at 10% per annum and the gross proceeds less the OID of $265,000 is convertible into common shares at a conversion price of $0.21 per share, and matures on November 26, 2023. In conjunction with the convertible debenture, the Company issued a warrant exercisable for 1,558,730 common shares and a brokers warrant exercisable for 124,500 common shares, at an exercise price of $0.17 per share, expiring on November 26, 2023. On September 22, 2020, the Company entered into an Amending Agreement, whereby the conversion price of the convertible debenture was amended to $0.055 per share and the exercise price of the warrant exercisable for 1,558,730 shares was amended to $0.055 per share. (ii) On December 4, 2019, the Company concluded its second closing as contemplated by the term sheet entered into with PCF per (i) above and issued a convertible debenture in the aggregate principal amount of $432,000, including an OID of $72,000 for net proceeds of $318,600 after certain issue expenses. The convertible debenture bears interest at 10% per annum and the gross proceeds less the OID of $360,000 is convertible into common shares at a conversion price of $0.21 per share, and matures on December 4, 2023. In conjunction with the convertible debenture, the Company issued a warrant exercisable for 2,117,520 common shares and a brokers warrant exercisable for 169,200 common shares, at an exercise price of $0.17 per share, expiring on December 4, 2023. On September 22, 2020, the Company entered into an Amending Agreement, whereby the conversion price of the convertible debenture was amended to $0.055 per share and the exercise price of the warrant exercisable for 2,117,520 shares was amended to $0.055 per share. (iii) On March 30, 2020, the Company concluded its third closing as contemplated by the term sheet entered into with PCF per (i) above and issued a convertible debenture in the aggregate principal amount of $471,000, including an OID of $78,500 for net proceeds of $347,363 after certain issue expenses. The convertible debenture bears interest at 10% per annum and the gross proceeds less the OID of $392,500 is convertible into common shares at a conversion price of $0.21 per share, and matures on March 30, 2024. In conjunction with the convertible debenture, the Company issued a warrant exercisable for 4,906,250 common shares and a brokers warrant exercisable for 392,500 common shares, at an exercise price of $0.17 per share, expiring on March 30, 2024. On September 22, 2020, the Company entered into an Amending Agreement, whereby the conversion price of the convertible debenture was amended to $0.055 per share and the exercise price of the warrant exercisable for 4,906,250 shares was amended to $0.055 per share. (g) Power Up Lending Group LTD. (i) On May 7, 2020, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $64,300, including an original issue discount of $6,300, for net proceeds of $55,000 after certain expenses. The note bears interest at 12% per annum and matures on May 7, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. Between November 11, 2020 and November 13, 2020, Power Up converted the aggregate principal sum of $64,300, including interest thereon of $3,480 into 2,256,939 common shares at an average conversion price of $0.03 per share, thereby extinguishing the note. (ii) On June 4, 2020, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $69,900, including an original issue discount of $6,900, for net proceeds of $60,000 after certain expenses. The note bears interest at 12% per annum and matures on June 4, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. Between December 15, 2020 and January. 4, 2021, Power Up converted the aggregate principal sum of $69,900, including interest thereon of $3,780 into 2,306,558 common shares at an average conversion price of $0.03 per share, thereby extinguishing the note. (iii) On June 19, 2020, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $82,500, including an original issue discount of $7,500, for net proceeds of $72,000 after certain expenses. The note bears interest at 12% per annum and matures on June 19, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. Between January 7, 2021 and January 20, 2021, Power Up converted the aggregate principal sum of $82,500, including interest thereon of $4,500 into 2,668,712 common shares at an average conversion price of $0.03 per share, thereby extinguishing the note. (iv) On November 6, 2020, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $140,800, including an original issue discount of $12,800, for net proceeds of $125,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. (v) On January 12, 2021, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $86,350, including an original issue discount of $11,350, for net proceeds of $75,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. (vi) On February 25, 2021, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $86,350, including an original issue discount of $11,350, for net proceeds of $75,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. (h) EMA Financial, LLC (i) On July 22, 2020, the Company issued a convertible promissory note to EMA for the aggregate principal sum of $150,000, including an original issue discount of $15,000, for net proceeds of $130,500 after certain expenses. The note bears interest at 8% per annum and matures on April 22, 2021. The note may be prepaid subject to a prepayment penalty of 130%. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to the lower of; (i) the lowest trading price of the Company’s common stock during the 15 trading days including and immediately preceding the issue date; and (ii) 70% of the two lowest average trading prices during the fifteen prior trading days including and immediately preceding the conversion date. Between January 25, 2021 and February 22, 2021, EMA converted the aggregate principal sum of $128,869 into 4,200,000 common shares at an average conversion price of $0.03 per share. (i) Morison Management S.A. On August 26, 2020, the convertible debenture originally issued to GS Capital Partners in the aggregate principal sum of $143,750 together with accrued interest and penalty interest thereon of $49,112 was purchased and assigned to Morison Management S.A. (“Morison”). The Company cancelled the convertible debenture issued to GS and issued a replacement convertible debenture to Morison in the aggregate principal sum of $192,862 with a maturity date of August 26, 2021 and bearing interest at 10% per annum. The note is convertible into common shares at a conversion price equal to 50% of the lowest trading price on the preceding 20 days prior to the notice of conversion. On October 1, 2020, in terms of a debt conversion agreement entered into the $192,862 convertible debenture was converted into 10,285,991 shares of common stock at a conversion price of $0.019 per share. (j) Bellridge Capital LP. On September 1, 2020, in terms of an assignment agreement entered into between Bay Private Equity, Inc (“Bay”) and Bellridge Capital LP (“Bellridge”), Bay assigned a convertible debenture dated September 17, 2018, with a principal balance outstanding of $3,661,874 and interest accrued thereon of $525,203 to Bellridge. On September 23, 2020, the company entered into an amending agreement with Bellridge, whereby the maturity date of the loan was extended to March 31, 2021 and the conversion price was amended to $0.055 per share, simultaneously Bellridge entered into a debt conversion agreement with the Company converting $1,321,689 of the convertible debt into 24,030,713 shares of common stock at a conversion price of $0.055 per share. (k) Stirling Bridge Resources On November 24, 2020, the Company issued a convertible debenture to Stirling Bridge Resources in the aggregate principal amount of $15,000, for net proceeds of $15,000. The convertible debenture bears interest at 10% per annum and is convertible into common units at a conversion price of $0.0562 per unit. Each unit consisting of a common share and a two year share purchase warrant, exercisable for a common share at an exercise price of $0.0562 per share. The convertible debenture matures on November 24, 2021. (l) Alpha Capital Anstalt On November 6, 2020 , (l) Rijtec Enterprises Limited Pension Scheme On November 11, 2020 , m) Private lender On November 30, 2020 , |
Federal Relief Loans
Federal Relief Loans | 6 Months Ended |
Feb. 28, 2021 | |
Federal Relief Loans [Abstract] | |
FEDERAL RELIEF LOANS | 11. FEDERAL RELIEF LOANS Small Business Administration Disaster Relief loan On June 16, 2020, Petroteq Oil Recovery, LLC, received a Small Business Economic Injury Disaster loan amounting to $150,000, bearing interest at 3.75% per annum and repayable in monthly installments of $731 commencing twelve months after inception with the balance of interest and principal repayable on June 16, 2050. The loan is secured by all tangible and intangible assets of the Company. The proceeds are to be used for working capital purposes to alleviate economic injury caused by the COVID-19 pandemic. On May 1, 2020 and July 27, 2020, Petroteq CA, Inc, received a Small Business Economic Injury Disaster loan amounting to $10,000 and $150,000, respectively, bearing interest at 3.75% per annum and repayable in monthly installments of $731 commencing twelve months after inception with the balance of interest and principal repayable on July 27, 2050. The loan is secured by all tangible and intangible assets of the Company. The proceeds are to be used for working capital purposes to alleviate economic injury caused by the COVID-19 pandemic. Payroll Protection Plan loans (“PPP Loans”) On April 11, 2020, Petroteq Oil Recovery, LLC, received a PPP Loan amounting to $133,600, bearing interest at 1.00% per annum and repayable in a single payment after 2 years. The loan may be forgiven subject to certain terms and conditions and the use of funds by the Company. Forgiveness is not automatic and will be assessed by the lender once applied for. On January 20, 2021, Petroteq Oil Recovery, LLC, received a further PPP Loan amounting to $133,826, bearing interest at 1.00% per annum and repayable in a single payment after 5 years. The loan may be forgiven subject to certain terms and conditions and the use of funds by the Company. Forgiveness is not automatic and will be assessed by the lender once applied for. On April 23, 2020, Petroteq CA, Inc, received a PPP Loan amounting to $133,890, bearing interest at 0.98% per annum and repayable in monthly installments commencing on October 23, 2020. The loan may be forgiven subject to certain terms and conditions and the use of funds by the Company. Forgiveness is not automatic and will be assessed by the lender once applied for. On February 3, 2021, Petroteq CA, Inc, received a PPP Loan amounting to $133,890, bearing interest at 0.98% per annum and repayable in monthly installments commencing on December 3, 2021. The loan may be forgiven subject to certain terms and conditions and the use of funds by the Company. Forgiveness is not automatic and will be assessed by the lender once applied for. |
Derivative Liability
Derivative Liability | 6 Months Ended |
Feb. 28, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE LIABILITY | 12. DERIVATIVE LIABILITY Convertible notes issued to several lenders, disclosed in note 10(g) and (h), above have conversion rights that are linked to the Company’s stock price, at a factor ranging from 50% to 75% of an average stock price over a period ranging from 15 to 20 days prior to the date of conversion. These conversion rights may also include a fixed maximum conversion price. The number of shares issuable upon conversion of these convertible notes is therefore not determinable until conversion takes place. The Company has determined that these conversion features meet the requirements for classification as derivative liabilities and has measured their fair value using a Black Scholes valuation model which takes into account the following factors: ● Historical share price volatility; ● Maturity dates of the underlying securities being valued; ● Risk free interest rates; and ● Expected dividend policies of the Company. The fair value of the derivative liabilities was initially recognized as a debt discount and was re-assessed at February 28, 2021, with a total change in fair value of $718,912 credited to the unaudited condensed consolidated statement of loss and comprehensive loss. The value of the derivative liability will be re-assessed at each financial reporting date, with any movement thereon recorded in the statement of loss and comprehensive loss in the period in which it is incurred. The following assumptions were used in the Black-Scholes valuation model: Six months ended February 28, 2021 Conversion price CAD$0.0375 to CAD$0.06 Risk free interest rate 0.04 to 0.21 % Expected life of derivative liability 6 to 12 months Expected volatility of underlying stock 106.5% to 171.20 % Expected dividend rate 0 % The movement in derivative liability is as follows: February 28, 2021 August 31, Opening balance $ 841,385 $ - Derivative financial liability arising from convertible notes 270,535 653,984 Fair value adjustment to derivative liability (748,912 ) 187,401 363,008 $ 841,385 |
Reclamation and Restoration Pro
Reclamation and Restoration Provisions | 6 Months Ended |
Feb. 28, 2021 | |
Reclamationand Restoration Provisions [Abstract] | |
RECLAMATION AND RESTORATION PROVISIONS | 13. RECLAMATION AND RESTORATION PROVISIONS Oil Extraction Site Facility Restoration Total Balance at August 31, 2019 $ 498,484 2,472,013 2,970,497 Accretion expense - - - Balance at August 31, 2020 498,484 2,472,013 2,970,497 Accretion expense - - - Balance at February 28, 2021 $ 498,484 $ 2,472,013 $ 2,970,497 (a) Oil Extraction Plant In accordance with the terms of the sub-lease agreement disclosed in note 5 above, the Company is required to dismantle its oil extraction plant at the end of the lease term. During the year ended August 31, 2015, the Company recorded a provision of $350,000 for dismantling the facility. During the year ended August 31, 2019, in accordance with the requirements to provide a surety bond to the Utah Division of Oil Gas and Mining in terms of the amendment to the Notice of Intent to Commence Large Mining Operations at an estimated production of 4,000 barrels per day, the Company estimated that the cost of dismantling the oil extraction plant and related equipment would increase to $498,484. The discount rate used in the calculation is estimated to be 2.32% on operations that are expected to commence in September 2021. Because of the long-term nature of the liability, the greatest uncertainties in estimating this provision are the costs that will be incurred and the timing of the dismantling of the oil extraction facility. In particular, the Company has assumed that the oil extraction facility will be dismantled using technology and equipment currently available and that the plant will continue to be economically viable until the end of the lease term. (b) Site restoration In accordance with environmental laws in the United States, the Company’s environmental permits and the lease agreements, the Company is required to restore contaminated and disturbed land to its original condition before the end of the lease term, which is expected to be in 25 years. During the year ended August 31, 2015, the Company provided $200,000 for this purpose. The site restoration provision represents rehabilitation and restoration costs related to oil extraction sites. This provision has been created based on the Company’s internal estimates. Significant assumptions in estimating the provision include the technology and equipment currently available, future environmental laws and restoration requirements, and future market prices for the necessary restoration works required. During the year ended August 31, 2019, in accordance with the requirements to provide a surety bond to the Utah Division of Oil Gas and Mining in terms of the amendment to the Notice of Intent to Commence Large Mining Operations at an estimated production of 4,000 barrels per day, the Company estimated that the cost of restoring the site would increase to $2,472,013. The discount rate used in the calculation is estimated to be 2.32% on operations that are expected to commence in September 2021. |
Common Shares
Common Shares | 6 Months Ended |
Feb. 28, 2021 | |
Common Shares [Abstract] | |
COMMON SHARES | 14. COMMON SHARES Authorized unlimited common shares without par value Issued and Outstanding 412,292,584 common shares as at February 28, 2021 (a) Settlement of liabilities Between September 21, 2020 and December 10, 2020, the Company issued 71,632,237 common shares to certain lenders to settle $3,433,200 of trade debt, including a loss realized thereon of $48,283. (b) Common share subscriptions On November 13, 2020 and February 4, 2021, the Company issued 7,416,666 and 1,032,475 common shares, respectively, to various investors for net proceeds of $506,949. (c) Restricted stock awards On January 25 2021, the Company issued 1,000,000 restricted shares to its COO as part of his compensation package. (d) Convertible debt conversions Between October 1, 2020 and February 22, 2021, in terms of conversion notices received, the Company issued 53,316,230 common shares for convertible debt in the aggregate sum of $2,503,982, realizing a loss thereon of $313,198. (e) Warrants exercised On September 17, 2020 and December 9, 2020, warrants were exercised for 2,268,169 and 1,176,470 shares, respectively at an exercise price of $0.03 per share for gross proceeds of $103,339. |
Stock Options
Stock Options | 6 Months Ended |
Feb. 28, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | 15. STOCK OPTIONS During the six months ended February 28, 2021 the share-based compensation expense of $399,264 relates to the vesting of options granted during the current and prior fiscal year. Stock option transactions under the stock option plan were: Six months ended Year ended Number of Options Weighted Number of options Weighted Balance, beginning of period 9,470,000 CAD$ 0.63 9,808,333 CAD$ 1.20 Options granted - 5,220,000 0.10 Options forfeited (2,220,000 ) CAD$ 0.11 (5,558,333 ) CAD$ 1.14 Balance, end of period 7,250,000 CAD$ 0.71 9,470,000 CAD$ 0.63 Stock options outstanding and exercisable as at February 28, 2021 are: Expiry Date Exercise Options Options February 20, 2021 CAD$ 0.110 - 2,220,000 August 7, 2025 CAD$ 0.085 3,000,000 - November 30, 2027 CAD$ 2.270 950,000 950,000 June 5, 2028 CAD$ 1.000 3,300,000 2,475,000 7,250,000 5,645,000 Weighted average remaining contractual life 6.0 years 4.8 years |
Share Purchase Warrants
Share Purchase Warrants | 6 Months Ended |
Feb. 28, 2021 | |
Share Purchase Warrants Disclosure [Abstract] | |
SHARE PURCHASE WARRANTS | 16. SHARE PURCHASE WARRANTS Share purchase warrants outstanding as at February 28, 2021 are: Expiry Date Exercise Price Warrants Mar 29, 2021 US$ 0.465 1,481,481 April 8, 2021 CAD$ 4.73 57,756 May 22, 2021 US$ 0.91 6,000,000 May 22, 2021 US$ 0.30 1,133,333 May 22, 2021 US$ 1.50 65,759 July 5, 2021 US$ 0.25 52,631 July 5, 2021 US$ 0.28 131,578 July 5, 2021 US$ 0.35 3,917,771 July 21, 2021 US$ 0.0412 2,666,666 August 7, 2021 US$ 0.0412 3,033,980 August 16, 2021 CAD$ 0.29 120,000 August 16, 2021 US$ 0.18 4,210,785 September 20, 2021 US$ 0.23 1,111,111 September 30, 2021 US$ 0.23 2,777,777 December 30, 2021 US$ 0.055 4,545,454 November 26, 2023 US$ 0.17 1,683,230 December 4, 2023 US$ 0.17 2,286,720 March 30, 2024 US$ 0.08 392,500 March 30, 2024 US$ 0.15 4,906,250 January 25, 2025 US$ 0.14 151,785 40,726,567 Weighted average remaining contractual life 1.02 years Weighted average exercise price USD$ 0.26 Warrants exercisable for 5,476,311 common shares at exercise prices ranging from $0.14 and $1.50 per share expired during the six months ended February 28, 2021. On September 17, 2020 and December 9, 2020, warrants for 2,268,169 and 1,176,470 shares were exercised at an exercise price of $0.03 per share for gross proceeds of $103,339. On September 30, 2020, the Company issued warrant exercisable for 4,545,454 shares to a convertible debt note holder. The fair value of the warrants granted was estimated at $101,475 using the relative fair value method. In addition, warrants valued on debt extinguishment agreements entered into with certain convertible note holders, whereby the exercise price and in certain cases, the expiry date of the warrant were amended, amounted to $149,354. The fair value of share purchase warrants was estimated using the Black-Scholes valuation model utilizing the following weighted average assumptions: Six months ended February 28, 2021 Share price CAD$ 0.075 Exercise price US$ 0.055 Expected share price volatility 147.2 % Risk-free interest rate 0.21 % Expected term 1.27 |
Diluted Loss Per Share
Diluted Loss Per Share | 6 Months Ended |
Feb. 28, 2021 | |
Earnings Per Share [Abstract] | |
DILUTED LOSS PER SHARE | 17. DILUTED LOSS PER SHARE The Company’s potentially dilutive instruments are convertible debentures and stock options and share purchase warrants. Conversion of these instruments would have been anti-dilutive for the periods presented and consequently, no adjustment was made to basic loss per share to determine diluted loss per share. These instruments could potentially dilute earnings per share in future periods. For the six months ended February 28, 2021 and 2020, the following stock options, share purchase warrants and convertible securities were excluded from the computation of diluted loss per share as the result of the computation was anti-dilutive: Six months Six months Share purchase options 7,250,000 9,808,333 Share purchase warrants 40,726,567 47,709,138 Convertible securities 116,995,941 36,590,875 164,972,508 94,108,346 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Feb. 28, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS Related party transactions not otherwise separately disclosed in these consolidated financial statements are: (a) Key management personnel and director compensation At February 28, 2021, $875,930 was due to members of key management and directors for unpaid salaries, expenses and directors’ fees (August 31, 2020 – $547,660). (b) Transactions with directors and officers During the six months ended February 28, 2021, the Company granted 1,000,000 restricted shares and five year options exercisable for 3,000,000 shares at an exercise price of $0.085 were granted as compensation to our Chief operating Officer. On October 31, 2019 and March 11, 2020, a director advanced the Company $50,000 and $25,000, respectively as a short-term loan. The loan is interest free and is expected to be repaid within twelve months. The total loan outstanding as of February 28, 2021 was $125,000. (c) Due to/from director As of February 28, 2021 and August 31, 2020, the Company owed the chairman of the Board and the various companies controlled by him $532,892 and $395,647 respectively, in funds advanced to the Company for working capital purposes, in addition, the Company owes the chairman of the board $280,000, and $160,000 respectively, in unpaid salaries. As of February 28, 2010 and August 31, 2020, the Company owed a director $125,000 and $125,000, respectively in working capital advances to the Company. The advance is interest free with no fixed terms of repayment. |
Financing Costs, Net
Financing Costs, Net | 6 Months Ended |
Feb. 28, 2021 | |
Financing Costs Net [Abstract] | |
FINANCING COSTS, NET | 19. FINANCING COSTS, NET Financing costs, net, consists of the following: Three months Three months Six months Six months Interest expense on borrowings $ 305,457 $ 148,632 $ 593,096 $ 291,940 Amortization of debt discount 438,144 319,277 771,892 672,372 Other - 11,639 - 24,530 $ 743,601 $ 479,548 $ 1,364,988 $ 988,842 |
Other Expense (Income), Net
Other Expense (Income), Net | 6 Months Ended |
Feb. 28, 2021 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE (INCOME), NET | 20. OTHER EXPENSE (INCOME), NET Other expense (income), net, consists of the following: Three months Three months Six months Six months Loss (gain) on settlement of liabilities $ (86,207 ) $ (265,360 ) $ 48,283 $ (427,907 ) Loss (gain) on conversion of convertible debt 232,535 - 313,196 (231,862 ) Loss on debt extinguishment - - 330,256 - Interest income (935 ) (25,318 ) (1,883 ) (47,589 ) $ 145,393 $ (290,678 ) $ 689,852 $ (707,358 ) |
Segment Information
Segment Information | 6 Months Ended |
Feb. 28, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 21. SEGMENT INFORMATION The Company operated in two reportable segments within the USA during the six months ended February 28, 2021 and 2020, oil extraction and processing operations and mining operations. The presentation of the consolidated statements of loss and comprehensive loss provides information about the oil extraction and processing segment. There were limited operations in the mining operations segment during the six months ended February 28, 2021 and 2020. Other information about reportable segments are: February 28, 2021 Oil Mining (in ’000s of dollars) Extraction Operations Consolidated Additions to non-current assets $ 4,778 $ - $ 4,778 Reportable segment assets 45,554 33,240 78,794 Reportable segment liabilities $ 18,076 $ 150 $ 18,226 February 29, 2020 Oil Mining (in ’000s of dollars) Extraction Operations Consolidated Additions to non-current assets $ 2,116 $ 610 $ 2,726 Reportable segment assets 41,123 34,025 75,148 Reportable segment liabilities $ 17,636 $ 1,000 $ 18,636 February 28, 2021 (in ’000s of dollars) Oil Mining Consolidated Revenue from license fees $ 2,000 $ - $ 2,000 Revenues from hydrocarbon sales - - - Other production and maintenance costs (365 ) - (365 ) Gross Profit 1,635 - 1,635 Operating Expenses Depreciation, depletion and amortization 23 - 23 Selling, general and administrative expenses 1,751 - 1,751 Investor relations 40 - 40 Professional fees 578 - 578 Salaries and wages 178 - 178 Share-based compensation 458 - 458 Travel and promotional expenses 114 - 114 Other 383 - 383 Financing costs 1,365 - 1,365 Other expense (income) 689 - 689 Gain on settlement of liabilities 48 - 48 Loss on conversion of convertible debt 313 - 313 Loss on debt extinguishment 330 - 330 (2 (2 ) Derivative liability movements (749 ) - (749 ) Net loss $ 1,444 $ - $ 1,444 February 29, 2020 (in ’000s of dollars) Oil Mining Consolidated Revenues from hydrocarbon sales $ 110 $ 59 $ 169 Other production and maintenance costs 1,406 - 1,406 Advance royalty payments - 204 204 Gross Loss (1,296 ) (145 ) (1,441 ) Expenses Depreciation, depletion and amortization 86 - 86 Selling, general and administrative expenses 3,924 3 3,927 Investor relations 41 - 41 Professional fees 1,572 1 1,573 Salaries and wages 495 - 495 Share-based compensation 407 - 407 Travel and promotional expenses 632 - 632 Other 777 2 779 Financing costs, net 989 - 989 Other income (707 ) - (707 ) Loss on settlement of liabilities (428 ) (428 ) Loss on settlement of convertible debt (232 ) - (232 ) Interest income (47 ) - (47 ) Derivative liability movements 659 - 659 Net loss $ 6,247 $ 148 $ 6,395 |
Commitments
Commitments | 6 Months Ended |
Feb. 28, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 22. COMMITMENTS The company has commitments under equipment financing arrangements entered into in prior periods, see Note 7, above. Maturity of Leases The amount of future minimum lease payments under finance leases is as follows: February 28, August 31, Undiscounted minimum future lease payments Total instalments due: Within 1 year $ 177,540 $ 193,680 1 to 2 years - 80,700 2 to 3 years - - 177,540 274,380 The amount of future minimum lease payments under operating leases is as follows: February 28, August 31, Undiscounted minimum future lease payments Total instalments due: Within 1 year $ 61,987 $ 61,070 1 to 2 years 63,846 62,903 2 to 3 years 65,762 64,790 3 to 4 years 33,367 66,734 224,962 255,497 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Feb. 28, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 23. SUBSEQUENT EVENTS Events after the reporting date not otherwise separately disclosed in these consolidated financial statements are: On March 5, 2021, a lender irrevocably elected to convert $400,000 of principal under its amended convertible debenture for 9,708,738 common shares. On March 17, 2021, pursuant to a Debt Conversion Agreement dated as of that date, Petroteq issued: (a) 581,026 common shares (the “ Interest Conversion Shares (b) 500,000 common share purchase warrants exercisable for $0.0475 per share until October 19, 2021, as consideration for the amendment of the debenture originally due on October 19, 2020 and now extended to October 19, 2021; and (c) 500,000 common share purchase warrants exercisable for $0.0475 per share until December 17, 2021, as consideration for the amendment of the debenture originally due on December 17, 2020 and now extended to December 17, 2021. The company has received irrevocable subscription agreements for an aggregate of 2,666,665 common shares of at a price of $0.06 per share from certain investor. The subscriptions include a $70,000 subscription from Mr. Alex Blyumkin, an officer and director of Petroteq, for 1,666,666 common shares. These subscriptions remain subject to approval of the Company’s board of directors as well as the approval of the Exchange. In addition, the Company announced that it has reached an agreement to amend a previously issued $2,400,000 principal amount secured convertible debenture with an arm’s length lender that bears interest at 5.0% per annum and that matured on February 20, 2021. The Debenture had an original maturity of October 15, 2019 but was extended to February 20, 2021 pursuant to an amending agreement dated August 20, 2020. The Company and the Lender have agreed to (i) settle all accrued and unpaid interest and penalties under the Debenture to March 26, 2020, in the aggregate principal amount of $1,227,066.43, for 26,334,246 common shares of the Company, (ii) settle $600,000 of the original principal amount of the Debenture for 15,000,000 common shares of the Company, at a deemed price of $0.04 per share, and (iii) amend the Debenture (which will have a principal amount outstanding of $1,400,000) by (a) extending the maturity date to September 30, 2021, and (b) amending the conversion price from $0.40 to $0.048. The foregoing transactions are subject to negotiation and execution of definitive agreements, approval of the directors of the Company and regulatory approval from the Exchange. |
Supplemental Information on Oil
Supplemental Information on Oil and Gas Operations | 6 Months Ended |
Feb. 28, 2021 | |
Oil and Gas Property [Abstract] | |
SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS | 25. SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS Supplemental unaudited information regarding the Company’s oil and gas activities is presented in this note. The Company has not commenced commercial operations, therefore the disclosure of the results of operations of hydrocarbon activities is limited to advance royalties paid. All expenditure incurred to date is capitalized as part of the development cost of the company’s oil extraction plant. The Company does not have any proven hydrocarbon reserves or historical data to forecast the standardized measure of discounted future net cash flows related to proven hydrocarbon reserve quantities. Upon the commencement of production, the Company will be able to forecast future revenues and expenses of its hydrocarbon activities. Costs incurred The following table reflects the costs incurred in hydrocarbon property acquisition and development expenses. All costs were incurred in the US. (In US$ 000’s) Three months Three months Six months Six months ended February 29, Advanced royalty payments $ - $ 40 $ - $ 100 Deposits paid on mineral rights - 50 - 610 Construction of oil extraction plant 605 223 4,778 2,116 $ 605 $ 313 $ 4,778 $ 2,826 Results of operations The only operating expenses incurred to date on hydrocarbon activities relate to minimum royalties paid on mineral leases that the Company has entered into and certain maintenance and personnel costs incurred. All costs were incurred in the US. (In US$ 000’s) Three months Three months Six months Six months Advanced royalty payments applied or expired - 112 - 204 Production and maintenance costs 19 728 365 1,406 $ 19 $ 840 $ 365 $ 1,610 Proven reserves The Company does not have any proven hydrocarbon reserves as of February 28, 2021and August 31, 2020. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
Basis of preparation | (a) Basis of preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments), which the Company considers necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three months and six months ended February 28, 2021may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The unaudited condensed consolidated financial statements have been prepared on a historical cost basis except for certain financial assets and financial liabilities which are measured at fair value. The Company’s reporting currency and the functional currency of all of its operations is the U.S. dollar, as it is the principal currency of the primary economic environment in which the Company operates. Accordingly, all amounts referred to in the notes to the unaudited condensed consolidated financial statements are in U.S. dollars unless stated otherwise. The Company is an “SEC Issuer” as defined under National Instrument 52-107 “Accounting Principles and Audit Standards” “Continuous Disclosure Obligations” The unaudited condensed consolidated financial statements were authorized for issue by the Board of Directors on April 19, 2021. |
Consolidation | (b) Consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has at least a majority voting interest. All significant inter-company accounts and transactions have been eliminated in the unaudited condensed consolidated financial statements. The entities included in these unaudited condensed consolidated financial statements are as follows: Entity % of Jurisdiction Petroteq Energy Inc. Parent Canada Petroteq Energy CA, Inc. 100 % USA Petroteq Oil Recovery, LLC 100 % USA TMC Capital, LLC 100 % USA Petrobloq, LLC 100 % USA |
Estimates | (c) Estimates The preparation of these unaudited condensed consolidated financial statements in accordance with US GAAP requires the Company to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company continually evaluates its estimates, including those related to recovery of long-lived assets. The Company bases its estimates on historical experience and on other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to the Company’s reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. The Company believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of the unaudited condensed consolidated financial statements. Significant estimates include the following; ● the useful lives and depreciation rates for intangible assets and property, plant and equipment; ● the carrying and fair value of oil and gas properties and product and equipment inventories; ● all provisions; ● the fair value of reporting units and the related assessment of goodwill for impairment, if applicable; ● the fair value of intangibles other than goodwill; ● income taxes and the recoverability of deferred tax assets ● legal and environmental risks and exposures; and ● general credit risks associated with receivables, if any. |
Foreign currency translation adjustments | (d) Foreign currency translation adjustments The Company’s reporting currency and the functional currency of all its operations is the U.S. dollar. Assets and liabilities of the Canadian parent company are translated to U.S. dollars using the applicable exchange rate as of the end of a reporting period. Income, expenses and cash flows are translated using an average exchange rate during the reporting period. Since the reporting currency as well as the functional currency of all entities is the U.S. Dollar there is no translation difference recorded. |
Revenue recognition | (e) Revenue recognition The Company recognizes revenue in terms of ASC 606 – Revenue from Contracts with Customers (ASC 606). Revenue transaction are assessed using a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration in exchange for those goods or services. The five steps are as follows: i. identify the contract with a customer; ii. identify the performance obligations in the contract; iii. determine the transaction price; iv. allocate the transaction price to performance obligations in the contract; and v. recognize revenue as the performance obligation is satisfied. Revenue from License Fees Revenue from license fees include the sale of rights to utilize the technology developed by the Company. The License fee is recognized immediately as there is no requirement to provide ongoing services or support to the Licensee in terms of the License Agreement. Revenue from hydrocarbon sales Revenue from hydrocarbon sales include the sale of hydrocarbon products and are recognized when production is sold to a purchaser at a fixed or determinable price, delivery has occurred, control has transferred and collectability of the revenue is probable. The Company’s performance obligations are satisfied at a point in time. This occurs when control is transferred to the purchaser upon delivery of contract specified production volumes at a specified point. The transaction price used to recognize revenue is a function of the contract billing terms. Revenue is invoiced, if required, upon delivery based on volumes at contractually based rates with payment typically received within 30 days after invoice date. Taxes assessed by governmental authorities on hydrocarbon sales, if any, are not included in such revenues, but are presented separately in the consolidated comprehensive statements of loss and comprehensive loss. Transaction price allocated to remaining performance obligations The Company does not anticipate entering into long-term supply contracts, rather it expects all contracts to be short-term in nature with a contract term of one year or less. The Company intends applying the practical expedient in ASC 606 exempting the disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For contracts with terms greater than one year, the Company will apply the practical expedient in ASC 606 exempting the disclosure of the transaction price allocated to remaining performance obligations if there is any variable consideration to be allocated entirely to a wholly unsatisfied performance obligation. The Company anticipates that with respect to the contracts it will enter into, each unit of product will typically represent a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. Contract balances The Company does not anticipate that it will receive cash relating to future performance obligations. However if such cash is received, the revenue will be deferred and recognized when all revenue recognition criteria are met. Disaggregation of revenue The Company has limited revenues to date. Disaggregation of revenue disclosures can be found in Note 21. Customers The Company anticipates that it will have a limited number of customers which will make up the bulk of its revenues due to the nature of the oil and gas industry. |
General and administrative expenses | (f) General and administrative expenses General and administrative expenses will be presented net of any working interest owners, if any, of the oil and gas properties owned or leased by the Company. |
Share-based payments | (g) Share-based payments The Company may grant stock options to directors, officers, employees and others providing similar services. The fair value of these stock options is measured at grant date using the Black-Scholes option pricing model taking into account the terms and conditions upon which the options were granted. Share-based compensation expense is recognized on a straight-line basis over the period during which the options vest, with a corresponding increase in equity. The Company may also grant equity instruments to consultants and other parties in exchange for goods and services. Such instruments are measured at the fair value of the goods and services received on the date they are received and are recorded as share-based compensation expense with a corresponding increase in equity. If the fair value of the goods and services received are not reliably determinable, their fair value is measured by reference to the fair value of the equity instruments granted. |
Income taxes | (h) Income taxes The Company utilizes ASC 740, Accounting for Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740, “Income Taxes”. Accounting guidance addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements, under which a company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accordingly, the Company would report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company elects to recognize any interest and penalties, if any, related to unrecognized tax benefits in tax expense. |
Net income (loss) per share | (i) Net income (loss) per share Basic net income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed on the basis of the weighted average number of common shares and common share equivalents outstanding. Dilutive securities having an anti-dilutive effect on diluted net income (loss) per share are excluded from the calculation. Dilution is computed by applying the treasury stock method for stock options and share purchase warrants. Under this method, “in-the-money” stock options and share purchase warrants are assumed to be 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 shares at the average market price during the period. |
Cash and cash equivalents | (j) Cash and cash equivalents The Company considers all highly liquid investments with original contractual maturities of three months or less to be cash equivalents. |
Accounts receivable | (k) Accounts receivable The Company had minimal sales during the period of which all proceeds were collected therefore there are no accounts receivable balances. |
Oil and gas property and equipment | (l) Oil and gas property and equipment The Company follows the successful efforts method of accounting for its oil and gas properties. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with delay rentals and exploration overhead are charged against earnings as incurred. Costs of successful exploratory efforts along with acquisition costs and the costs of development of surface mining sites are capitalized. Site development costs are initially capitalized, or suspended, pending the determination of proved reserves. If proved reserves are found, site development costs remain capitalized as proved properties. Costs of unsuccessful site developments are charged to exploration expense. For site development costs that find reserves that cannot be classified as proved when development is completed, costs continue to be capitalized as suspended exploratory site development costs if there have been sufficient reserves found to justify completion as a producing site and sufficient progress is being made in assessing the reserves and the economic and operating viability of the project. If management determines that future appraisal development activities are unlikely to occur, associated suspended exploratory development costs are expensed. In some instances, this determination may take longer than one year. The Company reviews the status of all suspended exploratory site development costs quarterly. Capitalized costs of proved oil and gas properties are depleted by an equivalent unit-of-production method. Proved leasehold acquisition costs, less accumulated amortization, are depleted over total proved reserves, which includes proved undeveloped reserves. Capitalized costs of related equipment and facilities, including estimated asset retirement costs, net of estimated salvage values and less accumulated amortization are depreciated over proved developed reserves associated with those capitalized costs. Depletion is calculated by applying the depreciation, depletion and amortization (“DD&A”) rate (amortizable base divided by beginning of period proved reserves) to current period production. Costs associated with unproved properties are excluded from the depletion calculation until it is determined whether or not proved reserves can be assigned to such properties. The Company assesses its unproved properties for impairment annually, or more frequently if events or changes in circumstances dictate that the carrying value of those assets may not be recoverable. Proved properties will be assessed for impairment annually, or more frequently if events or changes in circumstances dictate that the carrying value of those assets may not be recoverable. Individual assets are grouped for impairment purposes based on a common operating location. If there is an indication the carrying amount of an asset may not be recovered, the asset is assessed for potential impairment by management through an established process. If, upon review, the sum of the undiscounted pre-tax cash flows is less than the carrying value of the asset, the carrying value is written down to estimated fair value. Because there is usually a lack of quoted market prices for long-lived assets, the fair value of impaired assets is typically determined based on the present values of expected future cash flows using discount rates believed to be consistent with those used by principal market participants or by comparable transactions. The expected future cash flows used for impairment reviews and related fair value calculations are typically based on judgmental assessments of future production volumes, commodity prices, operating costs, and capital investment plans, considering all available information at the date of review. Gains or losses are recorded for sales or dispositions of oil and gas properties which constitute an entire common operating field or which result in a significant alteration of the common operating field’s DD&A rate. These gains and losses are classified as asset dispositions in the accompanying consolidated statements of loss and comprehensive loss. Partial common operating field sales or dispositions deemed not to significantly alter the DD&A rates are generally accounted for as adjustments to capitalized costs with no gain or loss recognized. The Company capitalizes interest costs incurred and attributable to material unproved oil and gas properties and major development projects of oil and gas properties. |
Other property and equipment | (m) Other property and equipment Depreciation and amortization of other property and equipment, including corporate and leasehold improvements, are provided using the straight-line method based on estimated useful lives ranging from three to ten years. Interest costs incurred and attributable to major corporate construction projects are also capitalized. |
Asset retirement obligations and environmental liabilities | (n) Asset retirement obligations and environmental liabilities The Company recognizes liabilities for retirement obligations associated with tangible long-lived assets, such as producing sites when there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The initial measurement of an asset retirement obligation is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the consolidated balance sheet. When the assumptions used to estimate a recorded asset retirement obligation change, a revision is recorded to both the asset retirement obligation and the asset retirement cost. The Company’s asset retirement obligations also include estimated environmental remediation costs which arise from normal operations and are associated with the retirement of such long-lived assets. The asset retirement cost is depreciated using a systematic and rational method similar to that used for the associated property and equipment. |
Commitments and contingencies | (o) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Liabilities for environmental remediation or restoration claims resulting from allegations of improper operation of assets are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. Expenditures related to such environmental matters are expensed or capitalized in accordance with the Company’s accounting policy for property and equipment. |
Fair value measurements | (p) Fair value measurements Certain of the Company’s assets and liabilities are measured at fair value at each reporting date. Fair value represents the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants. This price is commonly referred to as the “exit price.” Fair value measurements are classified according to a hierarchy that prioritizes the inputs underlying the valuation techniques. This hierarchy consists of three broad levels: ● Level 1 – Inputs consist of unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority. When available, the Company measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. ● Level 2 – Inputs consist of quoted prices that are generally observable for the asset or liability. Common examples of Level 2 inputs include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in markets not considered to be active. ● Level 3 – Inputs are not observable from objective sources and have the lowest priority. The most common Level 3 fair value measurement is an internally developed cash flow model. |
Comparative amounts | (q) Comparative amounts The comparative amounts presented in these consolidated financial statements have been reclassified where necessary to conform to the presentation used in the current year. |
Recent accounting standards | (r) Recent accounting standards Issued accounting standards not yet adopted In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (subtopic 470-20): and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). Certain accounting models for convertible debt instruments with beneficial conversion features or cash conversion features are removed from the guidance and for equity instruments the contracts affected are free standing instruments and embedded features that are accounted for as derivatives, the settlement assessment was simplified by removing certain settlement requirements. This ASU is effective for fiscal years and interim periods beginning after December 15, 2021. The effects of this ASU on the Company’s unaudited condensed consolidated financial statements is currently being assessed and is expected to have an impact on the treatment of certain convertible instruments, if any, and the derivative liabilities, if any, associated with these convertible instruments. The FASB issued several additional updates during the period, none of these standards are either applicable to the Company or require adoption at a future date and none are expected to have a material impact on the consolidated financial statements upon adoption. Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
Schedule of unaudited condensed consolidated financial statements | Entity % of Jurisdiction Petroteq Energy Inc. Parent Canada Petroteq Energy CA, Inc. 100 % USA Petroteq Oil Recovery, LLC 100 % USA TMC Capital, LLC 100 % USA Petrobloq, LLC 100 % USA |
Notes Receivable (Tables)
Notes Receivable (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Notes Receivable Disclosure [Abstract] | |
Schedule of notes receivables | Maturity Date Interest February 28, 2021 August 31, Private debtor March 16, 2020 5 % $ 76,000 $ 76,000 Interest accrued 15,044 13,159 $ 91,044 $ 89,159 Disclosed as follows: Current portion $ 91,044 $ 89,159 - - $ 91,044 $ 89,159 |
Mineral Leases (Tables)
Mineral Leases (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Mineral Leases [Abstract] | |
Schedule of mineral leases | TMC SITLA BLM Mineral Mineral Mineral Lease Lease Lease Total Cost August 31, 2019 $ 11,091,388 $ 19,755 $ 23,800,000 $ 34,911,143 Additions - - - - August 31, 2020 11,091,388 19,755 23,800,000 34,911,143 Additions - - - - February 28, 2021 $ 11,091,388 $ 19,755 $ 23,800,000 $ 34,911,143 Accumulated Amortization August 31, 2019, August 31, 2020 and February 28, 2021 $ - $ - $ - $ - Carrying Amounts August 31, 2019 $ 11,091,388 $ 19,755 $ 23,800,000 $ 34,911,143 August 31, 2020 $ 11,091,388 $ 19,755 $ 23,800,000 $ 34,911,143 February 28, 2021 $ 11,091,388 $ 19,755 $ 23,800,000 $ 34,911,143 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Oil Other Total Cost August 31, 2019 $ 35,555,827 $ 438,168 $ 35,993,995 Additions 2,072,058 692 2,072,750 August 31, 2020 37,627,885 438,860 38,066,745 Additions 4,777,648 - 4,777.648 February 28, 2021 $ 42,405,533 $ 438,860 $ 42,844,393 Accumulated Amortization August 31, 2019 $ 2,148,214 $ 232,131 $ 2,380,345 Additions - 103,888 103,888 August 31, 2020 2,148,214 336,019 2,484,233 Additions - 23,045 23,045 February 28, 2021 $ 2,148,214 $ 359,064 $ 2,507,278 Carrying Amount August 31, 2019 $ 33,407,613 $ 206,037 $ 33,613,650 August 31, 2020 $ 35,479,671 $ 102,841 $ 35,582,512 February 28, 2021 $ 40,253,319 $ 79,796 $ 40,337,115 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Leases Abstract | |
Schedule of right of use assets included in the unaudited condensed consolidated Balance Sheet | February 28, 2021 August 31, Non-current assets Right of use assets – operating leases, net of amortization $ 188,598 $ 209,101 Right of use assets – finance leases, net of depreciation – included in property, plant and equipment 698,023 718,193 |
Schedule of lease costs | Six months 2021 Six months 2020 Finance lease cost: $ 36,412 $ 107,992 Depreciation of right of use assets 23,045 85,842 Interest expense on lease liabilities 13,367 22,150 Operating lease expense 19,764 62,610 Total lease cost $ 56,176 $ 170,602 |
Schedule of other lease information | Six months 2021 Six months 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ (13,367 ) $ (22,150 ) Operating cash flows from operating leases (19,764 ) (62,610 ) Financing cash flows from finance leases $ (83,473 ) $ (103,203 ) Right-of -use assets obtained in exchange for new operating leases $ - 245,482 Weighted average remaining lease term – finance leases 0.86 years 2.25 years Weighted average remaining lease term – operating leases 2.50 years 3.50 years Weighted average discount rate – finance leases 13.52 % 12.86 % Weighted average discount rate – operating leases 10.00 % 10.00 % |
Schedule of future minimum lease payments under finance leases | February 28, August 31, Undiscounted minimum future lease payments Total instalments due: Within 1 year $ 177,540 $ 193,680 1 to 2 years - 80,700 2 to 3 years - - 177,540 274,380 Imputed interest (13,581 ) (26,948 ) Total finance lease liability $ 163,959 $ 247,432 Disclosed as: Current portion $ 163,959 $ 172,374 Non-current portion - 75,058 $ 163,959 $ 247,432 |
Schedule of future minimum lease payments under operating leases | February 28, August 31, Undiscounted minimum future lease payments Total instalments due: Within 1 year $ 61,987 $ 61,070 1 to 2 years 63,846 62,903 2 to 3 years 65,762 64,790 3 to 4 years 33,367 66,734 224,962 255,497 Imputed interest (36,364 ) (46,396 ) Total operating lease liability $ 188,598 $ 209,101 Disclosed as: Current portion $ 45,136 $ 42,053 Non-current portion 143,462 167,048 $ 188,598 $ 209,101 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Oil Technologies Cost August 31, 2019 $ 809,869 Additions - August 31, 2020 809,869 Additions - February 28, 2021 $ 809,869 Accumulated Amortization August 31, 2019 $ 102,198 Additions - August 31, 2020 102,198 Additions - February 28, 2021 $ 102,198 Carrying Amounts August 31, 2019 $ 707,671 August 31, 2020 $ 707,671 February 28, 2021 $ 707,671 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Principal Principal Lender Maturity Date Interest February 28, 2021 August 31, Private lenders On demand 10.00 % 105,000 115,000 Private lenders August 31, 2020 5.00 % 481,733 468,547 Private lenders On demand 10.00 % - 100,000 $ 586,733 $ 683,547 |
Schedule of maturity date of debt | February 28, 2021 August 31, Principal classified as repayable within one year $ 586,733 $ 683,547 Principal classified as repayable later than one year - - $ 586,733 $ 683,547 |
Convertible Debentures (Tables)
Convertible Debentures (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Convertible Debentures Disclosure [Abstract] | |
Schedule of convertible debentures | Principal Principal Lender Maturity Date Interest February 28, August 31, Calvary Fund I LP July 31, 2021 12.00 % 250,000 250,000 July 31, 2021 12.00 % 480,000 480,000 August 7, 2021 0 % 150,000 150,000 SBI Investments LLC December 15, 2020 10.00 % 200,000 250,000 January 16, 2021 10.00 % 55,000 55,000 Bay Private Equity, Inc. March 31, 2021 5.00 % - 3,661,874 February 20, 2021 5.00 % 2,400,000 2,400,000 Cantone Asset Management LLC October 19, 2020 7.00 % 250,000 300,000 December 17, 2020 7.00 % 240,000 240,000 January 14, 2021 7.00 % 40,000 240,000 December 30, 2021 7.00 % 300,000 - Private lender October 29, 2020 10.00 % 200,000 200,000 Petroleum Capital Funding LP. November 26, 2023 10.00 % 318,000 318,000 December 4, 2023 10.00 % 432,000 432,000 March 30, 2024 10.00 % 471,000 471,000 Power Up Lending Group LTD May 7, 2021 12.00 % - 64,300 June 4, 2021 12.00 % - 69,900 June 19, 2021 12.00 % - 82,500 November 11, 2021 12.00 % 140,800 - January 12, 2022 12.00 % 86,350 - February 24, 2022 12.00 % 86,350 - EMA Financial, LLC April 22, 2021 8.00 % 36,131 150,000 Morison Management S.A July 31, 2021 10.00 % - 192,862 Bellridge Capital LP. March 31, 2021 15.00 % 2,900,000 - Stirling Bridge Resources October 29, 2021 10.00 % 15,000 - Alpha Capital Anstalt August 6, 2021 21.00 % 500,000 - Rijtec Enterprises Limited Pension Scheme November 11, 2021 10.00 % 32,000 - Private lender November 30, 2021 10.00 % 150,000 - 9,732,631 10,007,436 Unamortized debt discount (1,221,277 ) (1,173,112 ) Total loans $ 8,511,354 $ 8,834,324 |
Schedule of classified as repayable convertible debentures | February 28, August 31, Principal classified as repayable within one year $ 7,797,628 $ 8,227,257 Principal classified as repayable later than one year 713,726 607,067 $ 8,511,354 $ 8,834,324 |
Derivative Liability (Tables)
Derivative Liability (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Black-Scholes valuation model | Six months ended February 28, 2021 Conversion price CAD$0.0375 to CAD$0.06 Risk free interest rate 0.04 to 0.21 % Expected life of derivative liability 6 to 12 months Expected volatility of underlying stock 106.5% to 171.20 % Expected dividend rate 0 % |
Schedule of derivative liability | February 28, 2021 August 31, Opening balance $ 841,385 $ - Derivative financial liability arising from convertible notes 270,535 653,984 Fair value adjustment to derivative liability (748,912 ) 187,401 363,008 $ 841,385 |
Reclamation and Restoration P_2
Reclamation and Restoration Provisions (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Reclamationand Restoration Provisions [Abstract] | |
Schedule of reclamation and restoration provisions | Oil Extraction Site Facility Restoration Total Balance at August 31, 2019 $ 498,484 2,472,013 2,970,497 Accretion expense - - - Balance at August 31, 2020 498,484 2,472,013 2,970,497 Accretion expense - - - Balance at February 28, 2021 $ 498,484 $ 2,472,013 $ 2,970,497 |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock option transactions | Six months ended Year ended Number of Options Weighted Number of options Weighted Balance, beginning of period 9,470,000 CAD$ 0.63 9,808,333 CAD$ 1.20 Options granted - 5,220,000 0.10 Options forfeited (2,220,000 ) CAD$ 0.11 (5,558,333 ) CAD$ 1.14 Balance, end of period 7,250,000 CAD$ 0.71 9,470,000 CAD$ 0.63 |
Schedule of stock options outstanding and exercisable | Expiry Date Exercise Options Options February 20, 2021 CAD$ 0.110 - 2,220,000 August 7, 2025 CAD$ 0.085 3,000,000 - November 30, 2027 CAD$ 2.270 950,000 950,000 June 5, 2028 CAD$ 1.000 3,300,000 2,475,000 7,250,000 5,645,000 Weighted average remaining contractual life 6.0 years 4.8 years |
Share Purchase Warrants (Tables
Share Purchase Warrants (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Share Purchase Warrants Disclosure [Abstract] | |
Schedule of share purchase warrants outstanding | Expiry Date Exercise Price Warrants Mar 29, 2021 US$ 0.465 1,481,481 April 8, 2021 CAD$ 4.73 57,756 May 22, 2021 US$ 0.91 6,000,000 May 22, 2021 US$ 0.30 1,133,333 May 22, 2021 US$ 1.50 65,759 July 5, 2021 US$ 0.25 52,631 July 5, 2021 US$ 0.28 131,578 July 5, 2021 US$ 0.35 3,917,771 July 21, 2021 US$ 0.0412 2,666,666 August 7, 2021 US$ 0.0412 3,033,980 August 16, 2021 CAD$ 0.29 120,000 August 16, 2021 US$ 0.18 4,210,785 September 20, 2021 US$ 0.23 1,111,111 September 30, 2021 US$ 0.23 2,777,777 December 30, 2021 US$ 0.055 4,545,454 November 26, 2023 US$ 0.17 1,683,230 December 4, 2023 US$ 0.17 2,286,720 March 30, 2024 US$ 0.08 392,500 March 30, 2024 US$ 0.15 4,906,250 January 25, 2025 US$ 0.14 151,785 40,726,567 Weighted average remaining contractual life 1.02 years Weighted average exercise price USD$ 0.26 |
Schedule of assumptions in Black Scholes valuation model | Six months ended February 28, 2021 Share price CAD$ 0.075 Exercise price US$ 0.055 Expected share price volatility 147.2 % Risk-free interest rate 0.21 % Expected term 1.27 |
Diluted Loss Per Share (Tables)
Diluted Loss Per Share (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of diluted loss per share as the result of the computation was anti-dilutive | Six months Six months Share purchase options 7,250,000 9,808,333 Share purchase warrants 40,726,567 47,709,138 Convertible securities 116,995,941 36,590,875 164,972,508 94,108,346 |
Financing Costs, Net (Tables)
Financing Costs, Net (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Financing Costs Net [Abstract] | |
Schedule of financing costs net | Three months Three months Six months Six months Interest expense on borrowings $ 305,457 $ 148,632 $ 593,096 $ 291,940 Amortization of debt discount 438,144 319,277 771,892 672,372 Other - 11,639 - 24,530 $ 743,601 $ 479,548 $ 1,364,988 $ 988,842 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of other expense (income), net | Three months Three months Six months Six months Loss (gain) on settlement of liabilities $ (86,207 ) $ (265,360 ) $ 48,283 $ (427,907 ) Loss (gain) on conversion of convertible debt 232,535 - 313,196 (231,862 ) Loss on debt extinguishment - - 330,256 - Interest income (935 ) (25,318 ) (1,883 ) (47,589 ) $ 145,393 $ (290,678 ) $ 689,852 $ (707,358 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Segment Reporting [Abstract] | |
Schedule of oil extraction and processing segment | February 28, 2021 Oil Mining (in ’000s of dollars) Extraction Operations Consolidated Additions to non-current assets $ 4,778 $ - $ 4,778 Reportable segment assets 45,554 33,240 78,794 Reportable segment liabilities $ 18,076 $ 150 $ 18,226 February 29, 2020 Oil Mining (in ’000s of dollars) Extraction Operations Consolidated Additions to non-current assets $ 2,116 $ 610 $ 2,726 Reportable segment assets 41,123 34,025 75,148 Reportable segment liabilities $ 17,636 $ 1,000 $ 18,636 |
Schedule of segment operating results | February 28, 2021 (in ’000s of dollars) Oil Mining Consolidated Revenue from license fees $ 2,000 $ - $ 2,000 Revenues from hydrocarbon sales - - - Other production and maintenance costs (365 ) - (365 ) Gross Profit 1,635 - 1,635 Operating Expenses Depreciation, depletion and amortization 23 - 23 Selling, general and administrative expenses 1,751 - 1,751 Investor relations 40 - 40 Professional fees 578 - 578 Salaries and wages 178 - 178 Share-based compensation 458 - 458 Travel and promotional expenses 114 - 114 Other 383 - 383 Financing costs 1,365 - 1,365 Other expense (income) 689 - 689 Gain on settlement of liabilities 48 - 48 Loss on conversion of convertible debt 313 - 313 Loss on debt extinguishment 330 - 330 (2 (2 ) Derivative liability movements (749 ) - (749 ) Net loss $ 1,444 $ - $ 1,444 February 29, 2020 (in ’000s of dollars) Oil Mining Consolidated Revenues from hydrocarbon sales $ 110 $ 59 $ 169 Other production and maintenance costs 1,406 - 1,406 Advance royalty payments - 204 204 Gross Loss (1,296 ) (145 ) (1,441 ) Expenses Depreciation, depletion and amortization 86 - 86 Selling, general and administrative expenses 3,924 3 3,927 Investor relations 41 - 41 Professional fees 1,572 1 1,573 Salaries and wages 495 - 495 Share-based compensation 407 - 407 Travel and promotional expenses 632 - 632 Other 777 2 779 Financing costs, net 989 - 989 Other income (707 ) - (707 ) Loss on settlement of liabilities (428 ) (428 ) Loss on settlement of convertible debt (232 ) - (232 ) Interest income (47 ) - (47 ) Derivative liability movements 659 - 659 Net loss $ 6,247 $ 148 $ 6,395 |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under finance leases | February 28, August 31, Undiscounted minimum future lease payments Total instalments due: Within 1 year $ 177,540 $ 193,680 1 to 2 years - 80,700 2 to 3 years - - 177,540 274,380 |
Schedule of future minimum lease payments under operating leases | February 28, August 31, Undiscounted minimum future lease payments Total instalments due: Within 1 year $ 61,987 $ 61,070 1 to 2 years 63,846 62,903 2 to 3 years 65,762 64,790 3 to 4 years 33,367 66,734 224,962 255,497 |
Supplemental Information on O_2
Supplemental Information on Oil and Gas Operations (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Oil and Gas Property [Abstract] | |
Schedule of hydrocarbon property acquisition and development expenses | (In US$ 000’s) Three months Three months Six months Six months ended February 29, Advanced royalty payments $ - $ 40 $ - $ 100 Deposits paid on mineral rights - 50 - 610 Construction of oil extraction plant 605 223 4,778 2,116 $ 605 $ 313 $ 4,778 $ 2,826 |
Schedule of operating expenses related to plant maintenance | (In US$ 000’s) Three months Three months Six months Six months Advanced royalty payments applied or expired - 112 - 204 Production and maintenance costs 19 728 365 1,406 $ 19 $ 840 $ 365 $ 1,610 |
General Information (Details)
General Information (Details) | 1 Months Ended | 6 Months Ended | |||
Jul. 22, 2019USD ($) | Jan. 18, 2019USD ($)$ / sharesshares | Feb. 28, 2021USD ($) | Feb. 29, 2020USD ($) | Jun. 01, 2018m² | |
General Information (Details) [Line Items] | |||||
Interest acquisition percentage | 100.00% | ||||
Area of land (in Square Meters) | m² | 1,312 | ||||
Stock issued | $ 3,481,483 | $ 1,597,176 | |||
BLM Mineral Lease [Member] | |||||
General Information (Details) [Line Items] | |||||
Operating leases, indemnification agreements, description | On July 22, 2019, the Company acquired the remaining 50% of the operating rights under U.S. federal oil and gas leases, administered by the BLM covering approximately 5,960 gross acres (2,980 net acres) within the State of Utah for a total consideration of $13,000,000 settled by the issuance of 30,000,000 shares at an issue price of $0.40 per share, and cash of $1,000,000, of which $100,000 is still owing. | On January 18, 2019, the Company paid $10,800,000 for the acquisition of 50% of the operating rights under U.S. federal oil and gas leases, administered by the U.S. Department of Interior’s Bureau of Land Management (“BLM”) covering approximately 5,960 gross acres (2,980 net acres) within the State of Utah. | |||
Cash reserve deposit required and made | $ 13,000,000 | $ 10,800,000 | 3,000,000 | ||
Stock issued | $ 1,800,000 | $ 1,907,000 | |||
Issuance of shares (in Shares) | shares | 15,000,000 | ||||
Issue price (in Dollars per share) | $ / shares | $ 0.60 | ||||
Acquisition of operating rights, description | Between March 14, 2019 and February 28, 2021, the Company made cash deposits of $1,907,000, included in prepaid expenses and other current assets on the consolidated balance sheets for the acquisition of 100% of the operating rights under U.S. federal oil and gas leases, administered by the BLM in Garfield and Wayne Counties covering approximately 8,480 gross acres in P.R. Springs and the Tar Sands Triangle within the State of Utah. | ||||
Outstanding balance form total consideration | $ 1,093,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
Tax benefits, percentage | 50.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of unaudited condensed consolidated financial statements | 12 Months Ended |
Dec. 31, 2008 | |
Petroteq Energy Inc. [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
% of ownership | Parent |
Jurisdiction | Canada |
Petroteq Energy CA, Inc. [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
% of ownership | 100% |
Jurisdiction | USA |
Petroteq Oil Recovery, LLC [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
% of ownership | 100% |
Jurisdiction | USA |
TMC Capital, LLC [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
% of ownership | 100% |
Jurisdiction | USA |
Petrobloq, LLC [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
% of ownership | 100% |
Jurisdiction | USA |
Going Concern (Details)
Going Concern (Details) - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Going Concern [Abstract] | ||
Accumulated deficit | $ (92,109,171) | $ (90,664,349) |
Working capital deficit | $ 10,893,325 | $ 12,955,134 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Mar. 16, 2017 | Feb. 28, 2021 | Feb. 29, 2020 | |
Notes Receivable (Details) [Line Items] | |||
Payment to advanced | $ 697,585 | ||
Maturity Date of note | Mar. 16, 2020 | ||
Promissory Note Agreement [Member] | Manhatten Enterprises [Member] | |||
Notes Receivable (Details) [Line Items] | |||
Payment to advanced | $ 76,000 | ||
Interest rate | 5.00% |
Notes Receivable (Details) - Sc
Notes Receivable (Details) - Schedule of notes receivables - USD ($) | 1 Months Ended | 6 Months Ended | |
Mar. 16, 2017 | Feb. 28, 2021 | Aug. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity Date | Mar. 16, 2020 | ||
Total | $ 91,044 | $ 89,159 | |
Disclosed as follows: | |||
Current portion | 91,044 | 89,159 | |
Net of current portion | |||
Total | 91,044 | 89,159 | |
Interest accrued [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal due | $ 15,044 | 13,159 | |
Private debtor [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity Date | Mar. 16, 2020 | ||
Interest Rate | 5.00% | ||
Principal due | $ 76,000 | $ 76,000 |
Mineral Leases (Details)
Mineral Leases (Details) - USD ($) | Feb. 04, 2021 | Jun. 01, 2018 | Jul. 22, 2019 | Jan. 18, 2019 | Feb. 28, 2021 | Nov. 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Feb. 28, 2021 |
Mineral Leases (Details) [Line Items] | |||||||||
Payment on lease commencement | $ 25,000 | $ 25,000 | |||||||
Monthly lease payment | 15,000 | $ 15,000 | |||||||
Percentage of gross sales revenue | 8.00% | ||||||||
Percentage of royalty | 5.00% | ||||||||
Percentage of gross revenue | 50.00% | ||||||||
Stock Issued | $ 506,949 | 631,822 | $ 2,849,661 | $ 891,489 | $ 705,687 | ||||
Stock issued during period, value, acquisitions | $ 75,000 | ||||||||
Petroteq Oil Recovery, LLC Mineral Lease [Member] | |||||||||
Mineral Leases (Details) [Line Items] | |||||||||
Advance Royalty Per Acre | $ 10 | ||||||||
Percentage of royalties payable | 8.00% | ||||||||
Production royalties minimum per barrel | $ 3 | ||||||||
BLM Mineral Lease [Member] | |||||||||
Mineral Leases (Details) [Line Items] | |||||||||
Operating leases, indemnification agreements, description | On July 22, 2019, the Company acquired the remaining 50% of the operating rights under U.S. federal oil and gas leases, administered by the BLM covering approximately 5,960 gross acres (2,980 net acres) within the State of Utah, for a total consideration of $13,000,000 settled by the issuance of 30,000,000 shares at an issue price of $0.40 per share, amounting to $12,000,000 and cash of $1,000,000, of which $100,000 has not been paid to date. | On January 18, 2019, the Company paid $10,800,000 for the acquisition of 50% of the operating rights under U.S. federal oil and gas leases, administered by the U.S. Department of Interior’s Bureau of Land Management (“BLM”) covering approximately 5,960 gross acres (2,980 net acres) within the State of Utah. | |||||||
Cash reserve deposit required and made | $ 13,000,000 | $ 10,800,000 | $ 3,000,000 | $ 3,000,000 | |||||
Stock Issued | $ 1,000,000 | $ 1,800,000 | |||||||
Stock issued during period, shares, acquisitions (in Shares) | 30,000,000 | 15,000,000 | |||||||
Shares issued, price per share (in Dollars per share) | $ 0.40 | $ 0.60 | |||||||
Stock issued during period, value, acquisitions | $ 12,000,000 | $ 9,000,000 | |||||||
Stock issued during period, value not yet paid, acquisitions | $ 100,000 | ||||||||
Minimum [Member] | Petroteq Oil Recovery, LLC Mineral Lease [Member] | |||||||||
Mineral Leases (Details) [Line Items] | |||||||||
Percentage of royalties payable | 1.00% | ||||||||
Maximum [Member] | Petroteq Oil Recovery, LLC Mineral Lease [Member] | |||||||||
Mineral Leases (Details) [Line Items] | |||||||||
Percentage of royalties payable | 12.50% |
Mineral Leases (Details) - Sche
Mineral Leases (Details) - Schedule of mineral leases - USD ($) | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Cost | |||
Balance | $ 34,911,143 | ||
Additions | |||
Balance | 34,911,143 | 34,911,143 | |
Accumulated Amortization | |||
Accumulated Amortization | |||
Carrying Amounts | |||
Carrying Amounts, balance | 34,911,143 | 34,911,143 | 34,911,143 |
TMC Mineral Lease [Member] | |||
Cost | |||
Balance | 11,091,388 | ||
Additions | |||
Balance | 11,091,388 | 11,091,388 | |
Accumulated Amortization | |||
Accumulated Amortization | |||
Carrying Amounts | |||
Carrying Amounts, balance | 11,091,388 | 11,091,388 | 11,091,388 |
SITLA Mineral Lease [Member] | |||
Cost | |||
Balance | 19,755 | ||
Additions | |||
Balance | 19,755 | 19,755 | |
Accumulated Amortization | |||
Accumulated Amortization | |||
Carrying Amounts | |||
Carrying Amounts, balance | 19,755 | 19,755 | 19,755 |
BLM Mineral Lease [Member] | |||
Cost | |||
Balance | 23,800,000 | ||
Additions | |||
Balance | 23,800,000 | 23,800,000 | |
Accumulated Amortization | |||
Accumulated Amortization | |||
Carrying Amounts | |||
Carrying Amounts, balance | $ 23,800,000 | $ 23,800,000 | $ 23,800,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2017 | Aug. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Planned expansion, description | As a result of the relocation of the plant and the planned expansion of the plant’s production capacity to 400-500 barrels per day, and subsequently to an additional 3,000 barrels per day, the Company re-evaluated the depreciation policy of the oil extraction plant and the oil extraction technologies (Note 11) and determined that depreciation should be recorded on the basis of the expected production of the completed plant at various capacities. | the Company began the dismantling and relocating the oil extraction facility to its TMC Mineral Lease facility to improve production and logistical efficiencies while continuing its project to increase production capacity to a minimum capacity of 400-500 barrels per day. The plant has been substantially relocated to the TMC mining site and expansion of the plant to production of 400-500 barrels per day has been substantially completed. | |
Additional liability | $ 2,375,159 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of property, plant and equipment - USD ($) | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Cost | |||
Beginning balance, cost | $ 38,066,745 | $ 35,993,995 | |
Additions | 4,777.648 | 2,072,750 | |
Ending balance, cost | 42,844,393 | 38,066,745 | |
Accumulated Amortization | |||
Accumulated amortization, beginning balance | 2,484,233 | 2,380,345 | |
Additions | 23,045 | 103,888 | |
Accumulated amortization, ending balance | 2,507,278 | 2,484,233 | |
Carrying Amount | |||
Balance, carrying amount | 40,337,115 | 35,582,512 | $ 33,613,650 |
Oil Extraction Plant [Member] | |||
Cost | |||
Beginning balance, cost | 37,627,885 | 35,555,827 | |
Additions | 4,777,648 | 2,072,058 | |
Ending balance, cost | 42,405,533 | 37,627,885 | |
Accumulated Amortization | |||
Accumulated amortization, beginning balance | 2,148,214 | 2,148,214 | |
Additions | |||
Accumulated amortization, ending balance | 2,148,214 | 2,148,214 | |
Carrying Amount | |||
Balance, carrying amount | 40,253,319 | 35,479,671 | 33,407,613 |
Other Property and Equipment [Member] | |||
Cost | |||
Beginning balance, cost | 438,860 | 438,168 | |
Additions | 692 | ||
Ending balance, cost | 438,860 | 438,860 | |
Accumulated Amortization | |||
Accumulated amortization, beginning balance | 336,019 | 232,131 | |
Additions | 23,045 | 103,888 | |
Accumulated amortization, ending balance | 359,064 | 336,019 | |
Carrying Amount | |||
Balance, carrying amount | $ 79,796 | $ 102,841 | $ 206,037 |
Leases (Details)
Leases (Details) - USD ($) | May 07, 2018 | Apr. 30, 2015 | Nov. 30, 2020 | Feb. 28, 2021 |
Leases (Details) [Line Items] | ||||
Rental expense | $ 4,941 | |||
Operating lease percentage | 3.00% | |||
Right-of-use asset | $ 245,482 | |||
operating lease liability | $ 245,482 | |||
Debt instrument, term | 60 months | |||
Description of operating lease | the Company entered into a negotiable promissory note and security agreement with Commercial Credit Group to acquire a crusher from Power Equipment Company for $660,959. An implied interest rate was calculated as 12.36% based on the timing of the initial repayment of $132,200 and subsequent 42 monthly instalments of $15,571. | |||
Instalment value | $ 16,140 | |||
Incremental borrowing rate | 10.00% | |||
Loan Agreement [Member] | ||||
Leases (Details) [Line Items] | ||||
Operating lease cost | $ 282,384 | |||
Minimum [Member] | ||||
Leases (Details) [Line Items] | ||||
Interest rate | 4.30% | |||
Maximum [Member] | ||||
Leases (Details) [Line Items] | ||||
Interest rate | 4.90% |
Leases (Details) - Schedule of
Leases (Details) - Schedule of right of use assets included in consolidated Balance Sheet - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Non-current assets | ||
Right of use assets - operating leases, net of amortization | $ 188,598 | $ 209,101 |
Right of use assets - finance leases, net of depreciation – included in property, plant and equipment | $ 698,023 | $ 718,193 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of lease costs - USD ($) | 6 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Schedule of lease costs [Abstract] | ||
Finance lease cost: | $ 36,412 | $ 107,992 |
Depreciation of right of use assets | 23,045 | 85,842 |
Interest expense on lease liabilities | 13,367 | 22,150 |
Operating lease expense | 19,764 | 62,610 |
Total lease cost | $ 56,176 | $ 170,602 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of other lease information - USD ($) | 6 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from finance leases | $ (13,367) | $ (22,150) |
Operating cash flows from operating leases | (19,764) | (62,610) |
Financing cash flows from finance leases | (83,473) | (103,203) |
Right-of -use assets obtained in exchange for new operating leases | $ 245,482 | |
Weighted average remaining lease term – finance leases | 313 days | 2 years 3 months |
Weighted average remaining lease term – operating leases | 2 years 6 months | 3 years 6 months |
Weighted average discount rate – finance leases | 13.52% | 12.86% |
Weighted average discount rate – operating leases | 10.00% | 10.00% |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of future minimum lease payments under finance leases - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Total instalments due: | ||
Within 1 year | $ 177,540 | $ 193,680 |
1 to 2 years | 80,700 | |
2 to 3 years | ||
Total minimum lease payments | 177,540 | 274,380 |
Imputed interest | (13,581) | (26,948) |
Total finance lease liability | 163,959 | 247,432 |
Disclosed as: | ||
Current portion | 163,959 | 172,374 |
Non-current portion | 75,058 | |
Total lease liabilities | $ 163,959 | $ 247,432 |
Leases (Details) - Schedule o_5
Leases (Details) - Schedule of future minimum lease payments under operating leases - Operating lease [Member] - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Total instalments due: | ||
Within 1 year | $ 61,987 | $ 61,070 |
1 to 2 years | 63,846 | 62,903 |
2 to 3 years | 65,762 | 64,790 |
3 to 4 years | 33,367 | 66,734 |
Total minimum lease payments | 224,962 | 255,497 |
Imputed interest | (36,364) | (46,396) |
Total operating lease liability | 188,598 | 209,101 |
Disclosed as: | ||
Current portion | 45,136 | 42,053 |
Non-current portion | 143,462 | 167,048 |
Total lease liabilities | $ 188,598 | $ 209,101 |
Intangible Assets (Details)
Intangible Assets (Details) | 12 Months Ended |
Aug. 31, 2012 | |
Oil Extraction Technologies [Member] | |
Intangible Assets (Details) [Line Items] | |
Intangible assets, description | The Company commenced partial production from its oil extraction plant on September 1, 2015 and was amortizing the cost of the technology over fifteen years, the expected life of the oil extraction plant. Since the company has increased the capacity of the plant to 400 to 500 barrels daily during 2018, and expects to further expand the capacity to an additional 3,000 barrels daily, it determined that a more appropriate basis for the amortization of the technology is the units of production at the plant after commercial production begins again. |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of intangible assets - Oil Extraction Technologies [Member] - USD ($) | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Cost | |||
Balance | $ 809,869 | $ 809,869 | |
Additions | |||
Balance | 809,869 | 809,869 | |
Accumulated Amortization | |||
Accumulated Amortization, beginning balance | 102,198 | 102,198 | |
Additions | |||
Accumulated Amortization, ending balance | 102,198 | 102,198 | |
Carrying Amounts | |||
Carrying Amounts, balance | $ 707,671 | $ 707,671 | $ 707,671 |
Debt (Details)
Debt (Details) | Sep. 23, 2020$ / sharesshares | Jul. 06, 2020USD ($)$ / sharesshares | Oct. 04, 2018USD ($) | Jul. 03, 2018USD ($) | Oct. 10, 2014 | Mar. 16, 2017 | Feb. 28, 2021 | Aug. 31, 2020 |
Debt (Details) [Line Items] | ||||||||
Maturity date | Mar. 16, 2020 | |||||||
Bay Private Equity [Member] | ||||||||
Debt (Details) [Line Items] | ||||||||
Advance from related party | $ | $ 100,000 | |||||||
Interest rate | 10.00% | |||||||
Conversion price per share | $ / shares | $ 0.055 | |||||||
Line of credit | $ | $ 9,500,000 | |||||||
Maturity date | Sep. 17, 2019 | |||||||
Debenture line of credit commitment shares | shares | 100,000 | |||||||
Finder's fee to third party shares | shares | 18,904 | |||||||
Converted shares | shares | 2,161,892 | |||||||
Private lenders [Member] | ||||||||
Debt (Details) [Line Items] | ||||||||
Advance from related party | $ | $ 200,000 | |||||||
Interest rate | 10.00% | |||||||
Principal amount | 10,000 | 35,000 | ||||||
Debt settlement agreement | $ | $ 50,000 | |||||||
Lender converted shares | shares | 1,250,000 | |||||||
Conversion price per share | $ / shares | $ 0.04 | |||||||
Long term debt, description | the Company issued two secured debentures for an aggregate principal amount of CAD $1,100,000 to two private lenders. The debentures initially bore interest at a rate of 12% per annum, were originally scheduled to mature on October 15, 2017 and are secured by all of the assets of the Company. In addition, the Company issued common share purchase warrants to acquire an aggregate of 16,667 common shares of the Company. On September 22, 2016, the two secured debentures were amended to extend the maturity date to January 31, 2017. The terms of these debentures were renegotiated with the debenture holders to allow for the conversion of the secured debentures into common shares of the Company at a rate of CAD $4.50 per common share and to increase the interest rate, starting June 1, 2016, to 15% per annum. On January 31, 2017, the two secured debentures were amended to extend the maturity date to July 31, 2017. Additional transaction costs and penalties incurred for the loan modifications amounted to $223,510. On February 9, 2018, the two secured debentures were renegotiated with the debenture holders to extend the loan to May 1, 2019. A portion of the debenture amounting to CAD $628,585 was amended to be convertible into common shares of the Company, of which, CAD $365,000 were converted on May 1, 2018. The remaining convertible portion is interest free and was to be converted from August 1, 2018 to January 1, 2019. The remaining non-convertible portion of the debenture was to be paid off in 12 equal monthly instalments beginning May 1, 2018, bearing interest at 5% per annum. On September 11, 2018, the remaining convertible portion of the debenture was converted into common shares of the Company and a portion of the non-convertible portion of the debenture was settled through the issue of 316,223 common shares of the Company. On December 13, 2019, the maturity date of the non-convertible portion of the debenture was extended to January 31, 2020 and the interest rate was increased to 10% per annum. Effective January 31, 2020, the terms of the debenture were renegotiated and the maturity date was extended to August 31, 2020. The maturity date of the debentures are currently being renegotiated. |
Debt (Details) - Schedule of lo
Debt (Details) - Schedule of long-term debt - USD ($) | 6 Months Ended | |
Feb. 28, 2021 | Aug. 31, 2020 | |
Debt (Details) - Schedule of long-term debt [Line Items] | ||
Principal due | $ 586,733 | $ 683,547 |
Private lenders [Member] | ||
Debt (Details) - Schedule of long-term debt [Line Items] | ||
Maturity Date | On demand | |
Interest Rate | 10.00% | |
Principal due | $ 105,000 | 115,000 |
Private lenders One [Member] | ||
Debt (Details) - Schedule of long-term debt [Line Items] | ||
Maturity Date | August 31, 2020 | |
Interest Rate | 5.00% | |
Principal due | $ 481,733 | 468,547 |
Private Lenders Two [Member] | ||
Debt (Details) - Schedule of long-term debt [Line Items] | ||
Maturity Date | On demand | |
Interest Rate | 10.00% | |
Principal due | $ 100,000 |
Debt (Details) - Schedule of ma
Debt (Details) - Schedule of maturity date of debt - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Debt (Details) - Schedule of maturity date of debt [Line Items] | ||
Long-term debt | $ 586,733 | $ 683,547 |
Principal classified as repayable within one year [Member] | ||
Debt (Details) - Schedule of maturity date of debt [Line Items] | ||
Long-term debt | 586,733 | 683,547 |
Principal classified as repayable later than one year [Member] | ||
Debt (Details) - Schedule of maturity date of debt [Line Items] | ||
Long-term debt |
Convertible Debentures (Details
Convertible Debentures (Details) - USD ($) | Jan. 14, 2021 | Nov. 13, 2020 | Nov. 11, 2020 | Nov. 06, 2020 | Oct. 02, 2020 | Sep. 22, 2020 | Sep. 02, 2020 | Jul. 07, 2020 | Jul. 07, 2020 | Jun. 04, 2020 | May 07, 2020 | Jan. 12, 2020 | Dec. 04, 2019 | Oct. 14, 2019 | Aug. 07, 2019 | Jul. 07, 2019 | Jun. 04, 2019 | Oct. 15, 2018 | Oct. 12, 2018 | Nov. 30, 2020 | Nov. 24, 2020 | Sep. 23, 2020 | Sep. 23, 2020 | Aug. 26, 2020 | Jul. 22, 2020 | Jun. 19, 2020 | Mar. 30, 2020 | Feb. 25, 2020 | Jan. 16, 2020 | Dec. 31, 2019 | Nov. 26, 2019 | Sep. 19, 2019 | Jul. 19, 2019 | Jan. 23, 2019 | Jan. 16, 2019 | Sep. 17, 2018 | Feb. 22, 2021 | Oct. 12, 2020 | Aug. 07, 2020 | Oct. 29, 2019 | Aug. 31, 2019 | Aug. 19, 2019 |
Calvary Fund I LP [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Description of convertible debenture | (i) On October 12, 2018, the Company issued 250 one year units to Cavalry for gross proceeds of $250,000, each unit consisting of a $1,000 principal convertible unsecured debenture, bearing interest at 10% per annum and convertible into common shares at $0.86 per share, and a common share purchase warrant exercisable for 290,500 shares at an exercise price of $0.86 per share, which warrant expired on October 12, 2019. | |||||||||||||||||||||||||||||||||||||||||
Convertible shares (in Shares) | 290,500 | |||||||||||||||||||||||||||||||||||||||||
Warrant exercise price (in Dollars per share) | $ 0.0412 | $ 0.86 | $ 0.0412 | $ 0.15 | ||||||||||||||||||||||||||||||||||||||
Conversion price per share (in Dollars per share) | $ 0.18 | $ 0.0412 | ||||||||||||||||||||||||||||||||||||||||
Interest rate | 0.00% | 12.00% | 3.30% | |||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 0.0412 | $ 0.0412 | $ 200,000 | |||||||||||||||||||||||||||||||||||||||
Principal amount | $ 150,000 | |||||||||||||||||||||||||||||||||||||||||
Original issue discount amount | 25,000 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from convertible debt | $ 125,000 | |||||||||||||||||||||||||||||||||||||||||
Warrant exercisable (in Shares) | 3,033,980 | 2,666,666 | ||||||||||||||||||||||||||||||||||||||||
EMA Financial LLC [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Description of convertible debenture | the Company issued a convertible promissory note to EMA for the aggregate principal sum of $150,000, including an original issue discount of $15,000, for net proceeds of $130,500 after certain expenses. The note bears interest at 8% per annum and matures on April 22, 2021. The note may be prepaid subject to a prepayment penalty of 130%. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to the lower of; (i) the lowest trading price of the Company’s common stock during the 15 trading days including and immediately preceding the issue date; and (ii) 70% of the two lowest average trading prices during the fifteen prior trading days including and immediately preceding the conversion date. Between January 25, 2021 and February 22, 2021, EMA converted the aggregate principal sum of $128,869 into 4,200,000 common shares at an average conversion price of $0.03 per share. | |||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 480,000 | |||||||||||||||||||||||||||||||||||||||||
Original issue discount amount | 80,000 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from convertible debt | $ 374,980 | |||||||||||||||||||||||||||||||||||||||||
Percentage of conversion price on common stock | 50000.00% | |||||||||||||||||||||||||||||||||||||||||
Power Up Lending Group, Ltd. [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Description of convertible debenture | Between November 11, 2020 and November 13, 2020, Power Up converted the aggregate principal sum of $64,300, including interest thereon of $3,480 into 2,256,939 common shares at an average conversion price of $0.03 per share, thereby extinguishing the note. | the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $140,800, including an original issue discount of $12,800, for net proceeds of $125,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. (v) On January 12, 2021, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $86,350, including an original issue discount of $11,350, for net proceeds of $75,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. (vi) On February 25, 2021, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $86,350, including an original issue discount of $11,350, for net proceeds of $75,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. | The note bears interest at 12% per annum and matures on June 4, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. Between December 15, 2020 and January. 4, 2021, Power Up converted the aggregate principal sum of $69,900, including interest thereon of $3,780 into 2,306,558 common shares at an average conversion price of $0.03 per share, thereby extinguishing the note. (iii) On June 19, 2020, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $82,500, including an original issue discount of $7,500, for net proceeds of $72,000 after certain expenses. The note bears interest at 12% per annum and matures on June 19, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. Between January 7, 2021 and January 20, 2021, Power Up converted the aggregate principal sum of $82,500, including interest thereon of $4,500 into 2,668,712 common shares at an average conversion price of $0.03 per share, thereby extinguishing the note. (iv) On November 6, 2020, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $140,800, including an original issue discount of $12,800, for net proceeds of $125,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. (v) On January 12, 2021, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $86,350, including an original issue discount of $11,350, for net proceeds of $75,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. (vi) On February 25, 2021, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $86,350, including an original issue discount of $11,350, for net proceeds of $75,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. | The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. | the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $82,500, including an original issue discount of $7,500, for net proceeds of $72,000 after certain expenses. The note bears interest at 12% per annum and matures on June 19, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. Between January 7, 2021 and January 20, 2021, Power Up converted the aggregate principal sum of $82,500, including interest thereon of $4,500 into 2,668,712 common shares at an average conversion price of $0.03 per share, thereby extinguishing the note. (iv) On November 6, 2020, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $140,800, including an original issue discount of $12,800, for net proceeds of $125,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. (v) On January 12, 2021, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $86,350, including an original issue discount of $11,350, for net proceeds of $75,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. (vi) On February 25, 2021, the Company issued a convertible promissory note to Power Up in the aggregate principal sum of $86,350, including an original issue discount of $11,350, for net proceeds of $75,000 after certain expenses. The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. | The note bears interest at 12% per annum and matures on November 6, 2021. The note may be prepaid subject to certain prepayment penalties ranging from 110% to 130% based on the period of prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company’s common stock at a conversion price equal to 75% of the average of the lowest three trading bid prices during the previous fifteen prior trading days. | ||||||||||||||||||||||||||||||||||||
Interest rate | 12.00% | |||||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 0.75 | |||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 64,300 | $ 0.17 | ||||||||||||||||||||||||||||||||||||||||
Original issue discount amount | 6,300 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from convertible debt | $ 55,000 | |||||||||||||||||||||||||||||||||||||||||
Percentage of conversion price on common stock | 7.00% | |||||||||||||||||||||||||||||||||||||||||
Power Up Lending Group, Ltd. [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of prepayment | 110.00% | 110.00% | ||||||||||||||||||||||||||||||||||||||||
Power Up Lending Group, Ltd. [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of prepayment | 130.00% | 130.00% | ||||||||||||||||||||||||||||||||||||||||
SBI Investments, LLC [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Description of convertible debenture | (i) On October 15, 2018, the Company entered into an agreement with SBI Investments, LLC (“SBI”) whereby the Company issued 250 one year units for proceeds of $250,000, each debenture consisting of a $1,000 principal convertible unsecured debenture, bearing interest at 10% per annum and convertible into common shares at $0.86 per share, and a warrant exercisable for 1,162 shares of common stock at an exercise price of $0.86 per share. | the Company entered into an agreement with SBI whereby the Company issued a convertible promissory note for $55,000 for gross proceeds of $50,000, bearing interest at 10% per annum and convertible into common shares at $0.14 per share. The convertible note matures on January 16, 2021. In conjunction with the convertible promissory note, the Company issued a warrant exercisable for 357,142 shares of common stock at an exercise price of $0.14 per share, expiring on January 16, 2021. | ||||||||||||||||||||||||||||||||||||||||
Warrant exercise price (in Dollars per share) | $ 0.14 | |||||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 0.14 | $ 0.18 | ||||||||||||||||||||||||||||||||||||||||
Warrant exercisable (in Shares) | 357,142 | |||||||||||||||||||||||||||||||||||||||||
Repaid loan | $ 50,000 | |||||||||||||||||||||||||||||||||||||||||
Bay Private Equity, Inc. [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Description of convertible debenture | Bellridge enforced the penalty provisions of the original agreement, resulting in an increase in the capital due under the debenture by $610,312 , and an increase of 10% to the interest rate, from the date of original default which was September 19, 2019. | The convertible debenture bears interest at 5% per annum and matured on October 15, 2019. The convertible debenture may be converted to 5,000,000 common shares of the Company at a conversion price of $0.40 per share. $400,000 of the proceeds raised was used to repay a portion of the $3,300,000 convertible debenture issued to Bay Private Equity on September 17, 2018 (Note 14(d)(i)). | (i) On September 17, 2018, the Company issued 3 one year convertible units of $1,100,000 each to Bay Private Equity, Inc. (“Bay”), including an original issue discount (“OID”) of $100,000 per unit, for net proceeds of $2,979,980. | |||||||||||||||||||||||||||||||||||||||
Interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 1 | |||||||||||||||||||||||||||||||||||||||||
Convertible secured note | $ 1,100,000 | |||||||||||||||||||||||||||||||||||||||||
Common stock purchase warrant (in Shares) | 250,000 | |||||||||||||||||||||||||||||||||||||||||
Exercise price (in Dollars per share) | $ 1.10 | |||||||||||||||||||||||||||||||||||||||||
Petroleum Capital Funding LP. [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Description of convertible debenture | the Company concluded its second closing as contemplated by the term sheet entered into with PCF per (i) above and issued a convertible debenture in the aggregate principal amount of $432,000, including an OID of $72,000 for net proceeds of $318,600 after certain issue expenses. The convertible debenture bears interest at 10% per annum and the gross proceeds less the OID of $360,000 is convertible into common shares at a conversion price of $0.21 per share, and matures on December 4, 2023. | the Company concluded its third closing as contemplated by the term sheet entered into with PCF per (i) above and issued a convertible debenture in the aggregate principal amount of $471,000, including an OID of $78,500 for net proceeds of $347,363 after certain issue expenses. The convertible debenture bears interest at 10% per annum and the gross proceeds less the OID of $392,500 is convertible into common shares at a conversion price of $0.21 per share, and matures on March 30, 2024. | the Company issued a convertible debenture in the aggregate principal amount of $318,000, including an OID of $53,000 for net proceeds of $226,025 after certain issue expenses. The convertible debenture bears interest at 10% per annum and the gross proceeds less the OID of $265,000 is convertible into common shares at a conversion price of $0.21 per share, and matures on November 26, 2023. In conjunction with the convertible debenture, the Company issued a warrant exercisable for 1,558,730 common shares and a brokers warrant exercisable for 124,500 common shares, at an exercise price of $0.17 per share, expiring on November 26, 2023. | |||||||||||||||||||||||||||||||||||||||
Warrant exercise price (in Dollars per share) | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.055 | ||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 0.055 | |||||||||||||||||||||||||||||||||||||||||
Warrant exercisable (in Shares) | 4,906,250 | 2,117,520 | 2,117,520 | 4,906,250 | ||||||||||||||||||||||||||||||||||||||
Exercise price (in Dollars per share) | $ 0.055 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Private Placement | $ 400,000 | |||||||||||||||||||||||||||||||||||||||||
Brokers warrant exercisable (in Shares) | 392,500 | 4,545,454 | ||||||||||||||||||||||||||||||||||||||||
Common shares value | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||
Bellridge Capital LP [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 0.055 | $ 0.055 | $ 0.055 | |||||||||||||||||||||||||||||||||||||||
Principal amount | $ 3,661,874 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from convertible debt | $ 1,321,689 | |||||||||||||||||||||||||||||||||||||||||
Convertible Shares (in Shares) | 24,030,713 | |||||||||||||||||||||||||||||||||||||||||
Interest accrued | $ 525,203 | |||||||||||||||||||||||||||||||||||||||||
Cantone Asset Management LLC [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Description of convertible debenture | In conjunction with the convertible debenture, the Company issued a warrant exercisable for 1,176,470 common shares at an exercise price of $0.17 per share, expiring on January 16, 2021. | In conjunction with the convertible debenture, the Company issued a warrant exercisable for 952,380 common shares at an exercise price of $0.26 per share, expiring on December 17, 2020. | $0.055 | In conjunction with the convertible debenture, the Company issued a warrant exercisable for 1,315,789 common shares at an exercise price of $0.24 per share, expiring on October 19, 2020. | ||||||||||||||||||||||||||||||||||||||
Warrant exercise price (in Dollars per share) | $ 0.03 | $ 0.03 | $ 0.17 | $ 0.26 | $ 0.18 | |||||||||||||||||||||||||||||||||||||
Conversion price per share (in Dollars per share) | $ 0.21 | |||||||||||||||||||||||||||||||||||||||||
Interest rate | 7.00% | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 0.037 | $ 0.037 | $ 0.037 | $ 0.17 | $ 0.037 | $ 0.19 | ||||||||||||||||||||||||||||||||||||
Principal amount | $ 240,000 | $ 69,900 | $ 300,000 | $ 300,000 | $ 240,000 | $ 300,000 | $ 2,400,000 | |||||||||||||||||||||||||||||||||||
Original issue discount amount | 40,000 | 6,900 | 40,000 | 50,000 | 400,000 | |||||||||||||||||||||||||||||||||||||
Proceeds from convertible debt | $ 200,000 | $ 60,000 | 247,500 | 200,000 | $ 234,000 | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||
Warrant exercisable (in Shares) | 2,117,520 | 2,117,520 | 1,176,470 | 952,380 | 555,555 | |||||||||||||||||||||||||||||||||||||
Exercise price (in Dollars per share) | $ 0.037 | $ 0.03 | $ 0.08 | |||||||||||||||||||||||||||||||||||||||
Conversion price of common stock | $ 200,000 | $ 250,000 | $ 200,000 | $ 250,000 | ||||||||||||||||||||||||||||||||||||||
Debt instrument, description | On September 23, 2020, $50,000 of the principal was repaid out of the proceeds of the $300,000 convertible note issued to Cantone Asset Management. | |||||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Conversion of Units (in Shares) | 5,405,405 | |||||||||||||||||||||||||||||||||||||||||
Convertible Debenture [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Warrant exercise price (in Dollars per share) | $ 0.03 | $ 0.03 | ||||||||||||||||||||||||||||||||||||||||
Common shares value | $ 2,503,982 | |||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 169,200 | |||||||||||||||||||||||||||||||||||||||||
Private lender [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Interest rate | 10.00% | |||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 200,000 | |||||||||||||||||||||||||||||||||||||||||
GS Capital Partners [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 0.18 | |||||||||||||||||||||||||||||||||||||||||
Private lender [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Description of convertible debenture | On September 22, 2020, the Company entered into an Amending Agreement, whereby the conversion price of the convertible debenture was amended to $0.055 per share and the exercise price of the warrant exercisable for 1,558,730 shares was amended to $0.055 per share. | |||||||||||||||||||||||||||||||||||||||||
Warrant exercise price (in Dollars per share) | $ 0.0562 | $ 0.0562 | ||||||||||||||||||||||||||||||||||||||||
Interest rate | 10.00% | |||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 150,000 | |||||||||||||||||||||||||||||||||||||||||
Original issue discount amount | $ 150,000 | |||||||||||||||||||||||||||||||||||||||||
Warrant exercisable (in Shares) | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||
Gross proceed | $ 0.0562 | |||||||||||||||||||||||||||||||||||||||||
Morison Management S.A. [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Description of convertible debenture | the convertible debenture originally issued to GS Capital Partners in the aggregate principal sum of $143,750 together with accrued interest and penalty interest thereon of $49,112 was purchased and assigned to Morison Management S.A. (“Morison”). The Company cancelled the convertible debenture issued to GS and issued a replacement convertible debenture to Morison in the aggregate principal sum of $192,862 with a maturity date of August 26, 2021 and bearing interest at 10% per annum. The note is convertible into common shares at a conversion price equal to 50% of the lowest trading price on the preceding 20 days prior to the notice of conversion. | |||||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 0.019 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from convertible debt | $ 192,862 | |||||||||||||||||||||||||||||||||||||||||
Convertible Shares (in Shares) | 10,285,991 | |||||||||||||||||||||||||||||||||||||||||
Stirling Bridge Resources [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Description of convertible debenture | Each unit consisting of a common share and a two year share purchase warrant, exercisable for a common share at an exercise price of $0.0562 per share. The convertible debenture matures on November 24, 2021. (l)Alpha Capital Anstalt On November 6, 2020, the Company issued a convertible debenture to Alpha Capital Anstalt in the aggregate principal amount of $500,000, for net proceeds of $500,000. The convertible debenture bears interest at 21% per annum and is convertible into common units at a conversion price of $0.0562 per unit. Each unit consisting of a common share and a five year share purchase warrant, exercisable for a common share at an exercise price of $0.0562 per share. The convertible debenture matures on August 6, 2021. (l)Rijtec Enterprises Limited Pension Scheme On November 11, 2020, the Company issued a convertible debenture to Rijtec Enterprises limited Pension Scheme in the aggregate principal amount of $500,000, for net proceeds of $500,000. The convertible debenture bears interest at 10% per annum and is convertible into common units at a conversion price of $0.0562 per unit. Each unit consisting of a common share and a two year share purchase warrant, exercisable for a common share at an exercise price of $0.0562 per share. The convertible debenture matures on November 11, 2021. m)Private lender On November 30, 2020, the Company issued a convertible debenture to a private lender in the aggregate principal amount of $150,000, for net proceeds of $150,000. The convertible debenture bears interest at 10% per annum and is convertible into common units at a conversion price of $0.0562 per unit. | |||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 15,000 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from convertible debt | $ 15,000 | |||||||||||||||||||||||||||||||||||||||||
Alpha Capital Anstalt [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Interest rate | 21.00% | |||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 500,000 | |||||||||||||||||||||||||||||||||||||||||
Original issue discount amount | $ 500,000 | |||||||||||||||||||||||||||||||||||||||||
Gross proceed | $ 0.0562 | |||||||||||||||||||||||||||||||||||||||||
Rijtec Enterprises Limited Pension Scheme [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Warrant exercise price (in Dollars per share) | $ 0.0562 | |||||||||||||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 2 | |||||||||||||||||||||||||||||||||||||||||
Principal amount | $ 500,000 | |||||||||||||||||||||||||||||||||||||||||
Original issue discount amount | $ 500,000 | |||||||||||||||||||||||||||||||||||||||||
Warrant exercisable (in Shares) | 0.10 | |||||||||||||||||||||||||||||||||||||||||
Exercise price (in Dollars per share) | $ 0.0562 | |||||||||||||||||||||||||||||||||||||||||
Placement agent warrants [Member] | Petroleum Capital Funding LP. [Member] | ||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Warrant exercise price (in Dollars per share) | $ 0.03 | |||||||||||||||||||||||||||||||||||||||||
Warrant exercisable (in Shares) | 2,256,939 |
Convertible Debentures (Detai_2
Convertible Debentures (Details) - Schedule of convertible debentures - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Principal due Total | $ 9,732,631 | $ 10,007,436 |
Unamortized debt discount | (1,221,277) | (1,173,112) |
Total loans | $ 8,511,354 | 8,834,324 |
Calvary Fund I LP [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Jul. 31, 2021 | |
Interest Rate | 12.00% | |
Principal due Total | $ 250,000 | 250,000 |
Calvary Fund I LP One [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Jul. 31, 2021 | |
Interest Rate | 12.00% | |
Principal due Total | $ 480,000 | 480,000 |
Calvary Fund I LP Two [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Aug. 7, 2021 | |
Interest Rate | 0.00% | |
Principal due Total | $ 150,000 | 150,000 |
SBI Investments LLC [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Dec. 15, 2020 | |
Interest Rate | 10.00% | |
Principal due Total | $ 200,000 | 250,000 |
SBI Investments LLC One [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Jan. 16, 2021 | |
Interest Rate | 10.00% | |
Principal due Total | $ 55,000 | 55,000 |
Bay Private Equity, Inc. [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Mar. 31, 2021 | |
Interest Rate | 5.00% | |
Principal due Total | 3,661,874 | |
Bay Private Equity, Inc. One [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Feb. 20, 2021 | |
Interest Rate | 5.00% | |
Principal due Total | $ 2,400,000 | 2,400,000 |
Cantone Asset Management LLC [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Oct. 19, 2020 | |
Interest Rate | 7.00% | |
Principal due Total | $ 250,000 | 300,000 |
Cantone Asset Management LLC One [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Dec. 17, 2020 | |
Interest Rate | 7.00% | |
Principal due Total | $ 240,000 | 240,000 |
Cantone Asset Management LLC Two [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Jan. 14, 2021 | |
Interest Rate | 7.00% | |
Principal due Total | $ 40,000 | 240,000 |
Cantone Asset Management LLC Three [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Dec. 30, 2021 | |
Interest Rate | 7.00% | |
Principal due Total | $ 300,000 | |
Private lender [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Oct. 29, 2020 | |
Interest Rate | 10.00% | |
Principal due Total | $ 200,000 | 200,000 |
Petroleum Capital Funding LP. [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Nov. 26, 2023 | |
Interest Rate | 10.00% | |
Principal due Total | $ 318,000 | 318,000 |
Petroleum Capital Funding LP. One [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Dec. 4, 2023 | |
Interest Rate | 10.00% | |
Principal due Total | $ 432,000 | 432,000 |
Petroleum Capital Funding LP. Two [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Mar. 30, 2024 | |
Interest Rate | 10.00% | |
Principal due Total | $ 471,000 | 471,000 |
Power Up Lending Group LTD [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | May 7, 2021 | |
Interest Rate | 12.00% | |
Principal due Total | 64,300 | |
Power Up Lending Group LTD One [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Jun. 4, 2021 | |
Interest Rate | 12.00% | |
Principal due Total | 69,900 | |
Power Up Lending Group LTD Two [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Jun. 19, 2021 | |
Interest Rate | 12.00% | |
Principal due Total | 82,500 | |
Power Up Lending Group LTD Three [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Nov. 11, 2021 | |
Interest Rate | 12.00% | |
Principal due Total | $ 140,800 | |
Power Up Lending Group LTD Four [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Jan. 12, 2022 | |
Interest Rate | 12.00% | |
Principal due Total | $ 86,350 | |
Power Up Lending Group LTD Five [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Feb. 24, 2022 | |
Interest Rate | 12.00% | |
Principal due Total | $ 86,350 | |
EMA Financial, LLC [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Apr. 22, 2021 | |
Interest Rate | 8.00% | |
Principal due Total | $ 36,131 | 150,000 |
Morison Management S.A [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Jul. 31, 2021 | |
Interest Rate | 10.00% | |
Principal due Total | 192,862 | |
Bellridge Capital LP. [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Mar. 31, 2021 | |
Interest Rate | 15.00% | |
Principal due Total | $ 2,900,000 | |
Stirling Bridge Resources [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Oct. 29, 2021 | |
Interest Rate | 10.00% | |
Principal due Total | $ 15,000 | |
Alpha Capital Anstalt [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Aug. 6, 2021 | |
Interest Rate | 21.00% | |
Principal due Total | $ 500,000 | |
Rijtec Enterprises Limited Pension Scheme [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Nov. 11, 2021 | |
Interest Rate | 10.00% | |
Principal due Total | $ 32,000 | |
Private lender [Member] | ||
Convertible Debentures (Details) - Schedule of convertible debentures [Line Items] | ||
Maturity Date | Nov. 30, 2021 | |
Interest Rate | 10.00% | |
Principal due Total | $ 150,000 |
Convertible Debentures (Detai_3
Convertible Debentures (Details) - Schedule of classified as repayable convertible debentures - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Convertible Debentures (Details) - Schedule of classified as repayable convertible debentures [Line Items] | ||
Total | $ 8,511,354 | $ 8,834,324 |
Principal classified as repayable within one year [Member] | ||
Convertible Debentures (Details) - Schedule of classified as repayable convertible debentures [Line Items] | ||
Total | 7,797,628 | 8,227,257 |
Principal classified as repayable later than one year [Member] | ||
Convertible Debentures (Details) - Schedule of classified as repayable convertible debentures [Line Items] | ||
Total | $ 713,726 | $ 607,067 |
Federal Relief Loans (Details)
Federal Relief Loans (Details) - USD ($) | Apr. 11, 2020 | Jan. 20, 2021 | Jun. 16, 2020 | Jul. 27, 2020 | Feb. 03, 2021 | Apr. 23, 2020 |
Petroteq Oil Recovery, LLC [Member] | ||||||
Federal Relief Loans (Details) [Line Items] | ||||||
Debt instrument, description | On June 16, 2020, Petroteq Oil Recovery, LLC, received a Small Business Economic Injury Disaster loan amounting to $150,000, bearing interest at 3.75% per annum and repayable in monthly installments of $731 commencing twelve months after inception with the balance of interest and principal repayable on June 16, 2050. | |||||
Loan amount | $ 133,600 | $ 133,826 | ||||
Interest rate | 1.00% | 1.00% | ||||
Debt maturity period | 2 years | 5 years | ||||
Petroteq CA, Inc [Member] | ||||||
Federal Relief Loans (Details) [Line Items] | ||||||
Debt instrument, description | On May 1, 2020 and July 27, 2020, Petroteq CA, Inc, received a Small Business Economic Injury Disaster loan amounting to $10,000 and $150,000, respectively, bearing interest at 3.75% per annum and repayable in monthly installments of $731 commencing twelve months after inception with the balance of interest and principal repayable on July 27, 2050. | |||||
Loan amount | $ 133,890 | $ 133,890 | ||||
Interest rate | 0.98% | 0.98% |
Derivative Liability (Details)
Derivative Liability (Details) | 6 Months Ended |
Feb. 28, 2021USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Description of short-term convertible note | Convertible notes issued to several lenders, disclosed in note 10(g) and (h), above have conversion rights that are linked to the Company’s stock price, at a factor ranging from 50% to 75% of an average stock price over a period ranging from 15 to 20 days prior to the date of conversion. |
Derivative financial liabilities re-assessed | $ 718,912 |
Derivative Liability (Details)
Derivative Liability (Details) - Schedule of Black-Scholes valuation model | 6 Months Ended |
Feb. 28, 2021$ / shares | |
Derivative [Line Items] | |
Expected dividend rate | 0.00% |
Minimum [Member] | |
Derivative [Line Items] | |
Conversion price (in Dollars per share) | $ 0.0375 |
Risk free interest rate | 0.04% |
Expected life of derivative liability | 6 months |
Expected volatility of underlying stock | 106.50% |
Maximum [Member] | |
Derivative [Line Items] | |
Conversion price (in Dollars per share) | $ 0.06 |
Risk free interest rate | 0.21% |
Expected life of derivative liability | 12 months |
Expected volatility of underlying stock | 171.20% |
Derivative Liability (Details_2
Derivative Liability (Details) - Schedule of derivative liability - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Derivative [Line Items] | ||
Opening balance | $ 841,385 | |
Derivative financial liability arising from convertible notes | 270,535 | 653,984 |
Fair value adjustment to derivative liability | (748,912) | 187,401 |
Total | $ 363,008 | $ 841,385 |
Reclamation and Restoration P_3
Reclamation and Restoration Provisions (Details) - USD ($) | 6 Months Ended | 8 Months Ended | 12 Months Ended | ||
Feb. 28, 2021 | Aug. 31, 2015 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 30, 2019 | |
Reclamation and Restoration Provisions (Details) [Line Items] | |||||
Reclamation and restoration provisions description | During the year ended August 31, 2019, in accordance with the requirements to provide a surety bond to the Utah Division of Oil Gas and Mining in terms of the amendment to the Notice of Intent to Commence Large Mining Operations at an estimated production of 4,000 barrels per day, the Company estimated that the cost of restoring the site would increase to $2,472,013. The discount rate used in the calculation is estimated to be 2.32% on operations that are expected to commence in September 2021. | ||||
Oil and gas reclamation liability, noncurrent | $ 2,970,497 | $ 2,970,497 | $ 2,970,497 | ||
Oil Extraction Plant [Member] | |||||
Reclamation and Restoration Provisions (Details) [Line Items] | |||||
Provision for dismantling facility | $ 350,000 | ||||
Reclamation and restoration provisions description | in accordance with the requirements to provide a surety bond to the Utah Division of Oil Gas and Mining in terms of the amendment to the Notice of Intent to Commence Large Mining Operations at an estimated production of 4,000 barrels per day, the Company estimated that the cost of dismantling the oil extraction plant and related equipment would increase to $498,484. The discount rate used in the calculation is estimated to be 2.32% on operations that are expected to commence in September 2021. | ||||
Oil and gas reclamation liability, noncurrent | 498,484 | $ 498,484 | 498,484 | 498,484 | |
Site Restoration [Member] | |||||
Reclamation and Restoration Provisions (Details) [Line Items] | |||||
Provision for dismantling facility | $ 200,000 | ||||
Oil and gas reclamation liability, noncurrent | $ 2,472,013 | $ 2,472,013 | $ 2,472,013 | $ 2,472,013 | |
Oil extraction plant lease term | 25 years |
Reclamation and Restoration P_4
Reclamation and Restoration Provisions (Details) - Schedule of reclamation and restoration provisions - USD ($) | 6 Months Ended | 12 Months Ended |
Feb. 28, 2021 | Aug. 31, 2020 | |
Reclamation and Restoration Provisions (Details) - Schedule of reclamation and restoration provisions [Line Items] | ||
Beginning Balance | $ 2,970,497 | |
Accretion expense | ||
Ending Balance | 2,970,497 | 2,970,497 |
Oil Extraction Facility [Member] | ||
Reclamation and Restoration Provisions (Details) - Schedule of reclamation and restoration provisions [Line Items] | ||
Beginning Balance | 498,484 | 498,484 |
Accretion expense | ||
Ending Balance | 498,484 | 498,484 |
Site Restoration [Member] | ||
Reclamation and Restoration Provisions (Details) - Schedule of reclamation and restoration provisions [Line Items] | ||
Beginning Balance | 2,472,013 | 2,472,013 |
Accretion expense | ||
Ending Balance | $ 2,472,013 | $ 2,472,013 |
Common Shares (Details)
Common Shares (Details) - USD ($) | Feb. 04, 2021 | Dec. 09, 2020 | Nov. 13, 2020 | Sep. 17, 2020 | Jan. 25, 2021 | Feb. 28, 2021 | Dec. 10, 2020 | Nov. 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Feb. 22, 2021 | Feb. 28, 2021 | Feb. 29, 2020 | Jul. 07, 2020 |
Common Shares (Details) [Line Items] | ||||||||||||||
Common stock, shares issued and outstanding | 412,292,584 | 412,292,584 | ||||||||||||
Issued shares as settlement of trade debt | 71,632,237 | |||||||||||||
Issued value as settlement of trade debt (in Dollars) | $ 3,433,200 | |||||||||||||
Loss realized (in Dollars) | $ 48,283 | |||||||||||||
Issuance of common stock, value (in Dollars) | $ 506,949 | $ 631,822 | $ 2,849,661 | $ 891,489 | $ 705,687 | |||||||||
Restricted shares | 1,000,000 | |||||||||||||
Loss realized (in Dollars) | $ (330,256) | |||||||||||||
Gross proceeds (in Dollars) | $ 35,293 | $ 68,045 | ||||||||||||
Convertible Debt [Member] | ||||||||||||||
Common Shares (Details) [Line Items] | ||||||||||||||
Issuance of common stock, shares | 53,316,230 | |||||||||||||
Issuance of common stock, value (in Dollars) | $ 2,503,982 | |||||||||||||
Loss realized (in Dollars) | $ 313,198 | |||||||||||||
Exercise price (in Dollars per share) | $ 0.03 | |||||||||||||
Various Investors [Member] | ||||||||||||||
Common Shares (Details) [Line Items] | ||||||||||||||
Issuance of common stock, shares | 1,032,475 | 7,416,666 | ||||||||||||
Warrant [Member] | ||||||||||||||
Common Shares (Details) [Line Items] | ||||||||||||||
Warrants exercised | 2,268,169 | |||||||||||||
Gross proceeds (in Dollars) | $ 1,176,470 | |||||||||||||
Exercise price (in Dollars per share) | $ 0.03 |
Stock Options (Details)
Stock Options (Details) | 6 Months Ended |
Feb. 28, 2021USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation expense | $ 399,264 |
Stock Options (Details) - Sched
Stock Options (Details) - Schedule of stock option transactions - $ / shares | 6 Months Ended | |
Feb. 28, 2021 | Aug. 31, 2020 | |
Schedule of stock option transactions [Abstract] | ||
Number of Options, Balance, beginning of period | 9,470,000 | 9,808,333 |
Weighted average exercise price, Balance, beginning of period | $ 0.63 | $ 1.20 |
Number of Options, Options granted | 5,220,000 | |
Weighted average exercise price, Options granted | $ 0.10 | |
Number of Options, Options forfeited | (2,220,000) | (5,558,333) |
Weighted average exercise price, Options forfeited | $ 0.11 | $ 1.14 |
Number of Options, Balance, end of period | 7,250,000 | 9,470,000 |
Weighted average exercise price, Balance, end of period | $ 0.71 | $ 0.63 |
Stock Options (Details) - Sch_2
Stock Options (Details) - Schedule of stock options outstanding and exercisable | 6 Months Ended |
Feb. 28, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding | 7,250,000 |
Options Exercisable | 5,645,000 |
Options Outstanding, Weighted average remaining contractual life | 6 years |
Options Exercisable, Weighted average remaining contractual life | 4 years 292 days |
February 20, 2021 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price (in Dollars per share and Dollars per share) | $ / shares | $ 0.110 |
Options Exercisable | 2,220,000 |
August 7, 2025 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price (in Dollars per share and Dollars per share) | $ / shares | $ 0.085 |
Options Outstanding | 3,000,000 |
November 30, 2027 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price (in Dollars per share and Dollars per share) | $ / shares | $ 2.270 |
Options Outstanding | 950,000 |
Options Exercisable | 950,000 |
June 5, 2028 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price (in Dollars per share and Dollars per share) | $ / shares | $ 1 |
Options Outstanding | 3,300,000 |
Options Exercisable | 2,475,000 |
Share Purchase Warrants (Detail
Share Purchase Warrants (Details) - USD ($) | Dec. 09, 2020 | Sep. 17, 2020 | Sep. 30, 2020 | Nov. 30, 2020 |
Share Purchase Warrants (Details) [Line Items] | ||||
Warrant, description | Warrants exercisable for 5,476,311 common shares at exercise prices ranging from $0.14 and $1.50 per share expired during the six months ended February 28, 2021. | |||
Gross proceeds | $ 103,339 | |||
Shares issued warrants | 4,545,454 | |||
Warrant [Member] | ||||
Share Purchase Warrants (Details) [Line Items] | ||||
Shares issued warrants | 1,176,470 | 2,268,169 | ||
Exercise Price | $ 0.03 | |||
Exercise Price Five [Member] | ||||
Share Purchase Warrants (Details) [Line Items] | ||||
Fair value of warrants granted price per share | $ 101,475 | |||
Warrant amended, amounted | $ 149,354 |
Share Purchase Warrants (Deta_2
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding | 3 Months Ended |
Feb. 28, 2021$ / sharesshares | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Warrants Outstanding | shares | 40,726,567 |
Weighted average remaining contractual life | 1 year 7 days |
Weighted average exercise price | $ / shares | $ 0.26 |
Mar 29, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.465 |
Warrants Outstanding | shares | 1,481,481 |
May 22, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.91 |
Warrants Outstanding | shares | 6,000,000 |
May 22, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.30 |
Warrants Outstanding | shares | 1,133,333 |
May 22, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 1.50 |
Warrants Outstanding | shares | 65,759 |
July 5, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.25 |
Warrants Outstanding | shares | 52,631 |
July 5, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.28 |
Warrants Outstanding | shares | 131,578 |
July 5, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.35 |
Warrants Outstanding | shares | 3,917,771 |
July 21, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.0412 |
Warrants Outstanding | shares | 2,666,666 |
August 7, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.0412 |
Warrants Outstanding | shares | 3,033,980 |
August 16, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.18 |
Warrants Outstanding | shares | 4,210,785 |
September 20, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.23 |
Warrants Outstanding | shares | 1,111,111 |
September 30, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.23 |
Warrants Outstanding | shares | 2,777,777 |
December 30, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.055 |
Warrants Outstanding | shares | 4,545,454 |
November 26, 2023 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.17 |
Warrants Outstanding | shares | 1,683,230 |
December 4, 2023 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.17 |
Warrants Outstanding | shares | 2,286,720 |
March 30, 2024 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.08 |
Warrants Outstanding | shares | 392,500 |
March 30, 2024 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.15 |
Warrants Outstanding | shares | 4,906,250 |
January 25, 2025 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.14 |
Warrants Outstanding | shares | 151,785 |
CAD [Member] | April 8, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 4.73 |
Warrants Outstanding | shares | 57,756 |
CAD [Member] | August 16, 2021 [Member] | |
Share Purchase Warrants (Details) - Schedule of share purchase warrants outstanding [Line Items] | |
Exercise Price | $ / shares | $ 0.29 |
Warrants Outstanding | shares | 120,000 |
Share Purchase Warrants (Deta_3
Share Purchase Warrants (Details) - Schedule of assumptions in Black Scholes valuation model - 6 months ended Feb. 28, 2021 | $ / shares | $ / shares |
Schedule of assumptions in Black Scholes valuation model [Abstract] | ||
Share price (in Dollars per share and Dollars per share) | $ 0.075 | |
Exercise price (in Dollars per share) | $ 0.055 | |
Expected share price volatility | 147.20% | |
Risk-free interest rate | 0.21% | |
Expected term | 1 year 98 days |
Diluted Loss Per Share (Details
Diluted Loss Per Share (Details) - Schedule of diluted loss per share as the result of the computation was anti-dilutive - shares | 6 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities were excluded from the computation of diluted loss per share | 164,972,508 | 94,108,346 |
Convertible securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities were excluded from the computation of diluted loss per share | 116,995,941 | 36,590,875 |
Share purchase options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities were excluded from the computation of diluted loss per share | 7,250,000 | 9,808,333 |
Share purchase warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities were excluded from the computation of diluted loss per share | 40,726,567 | 47,709,138 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Feb. 28, 2021 | Aug. 31, 2020 | Mar. 11, 2020 | Oct. 31, 2019 | |
Related Party Transactions (Details) [Line Items] | ||||
Granted restricted shares (in Shares) | 1,000,000 | |||
Options exercisable shares (in Shares) | 3,000,000 | |||
Options exercise price (in Dollars per share) | $ 0.085 | |||
Total loan outstanding | $ 125,000 | |||
Key Management and Directors [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Unpaid salaries | $ 875,930 | $ 547,660 | ||
Director [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Short-term loan | $ 25,000 | $ 50,000 | ||
Short term loan, expected repayment | 12 months | |||
Working capital advances | $ 125,000 | 125,000 | ||
Chairman of the Board [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Due to chairman | 532,892 | 395,647 | ||
Working capital advances | $ 280,000 | $ 160,000 |
Financing Costs, Net (Details)
Financing Costs, Net (Details) - Schedule of financing costs net - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Schedule of financing costs net [Abstract] | ||||
Interest expense on borrowings | $ 305,457 | $ 148,632 | $ 593,096 | $ 291,940 |
Amortization of debt discount | 438,144 | 319,277 | 771,892 | 672,372 |
Other | 11,639 | 24,530 | ||
Total | $ 743,601 | $ 479,548 | $ 1,364,988 | $ 988,842 |
Other Expense (Income), Net (De
Other Expense (Income), Net (Details) - Schedule of other expense (income), net - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Schedule of other expense (income), net [Abstract] | ||||
Loss (gain) on settlement of liabilities | $ (86,207) | $ (265,360) | $ 48,283 | $ (427,907) |
Loss (gain) on conversion of convertible debt | 232,535 | 313,196 | (231,862) | |
Loss on debt extinguishment | 330,256 | |||
Interest income | (935) | (25,318) | (1,883) | (47,589) |
Total | $ 145,393 | $ (290,678) | $ 689,852 | $ (707,358) |
Segment Information (Details)
Segment Information (Details) | 6 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Segment Reporting [Abstract] | ||
Number of reportable segemts | 6 | 2 |
Segment Information (Details) -
Segment Information (Details) - Schedule of oil extraction and processing segment - Segments [Member] - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Additions to non-current assets | $ 4,778 | $ 2,726 |
Reportable segment assets | 78,794 | 75,148 |
Reportable segment liabilities | 18,226 | 18,636 |
Oil Extraction [Member] | ||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Additions to non-current assets | 4,778 | 2,116 |
Reportable segment assets | 45,554 | 41,123 |
Reportable segment liabilities | 18,076 | 17,636 |
Mining Operations [Member] | ||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Additions to non-current assets | 610 | |
Reportable segment assets | 33,240 | 34,025 |
Reportable segment liabilities | $ 150 | $ 1,000 |
Segment Information (Details)_2
Segment Information (Details) - Schedule of segment operating results - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues from hydrocarbon sales | $ 68,509 | $ 169,041 | ||
Gross Profit | (19,279) | (771,391) | 1,635,435 | (1,440,593) |
Depreciation, depletion and amortization | 11,522 | 11,522 | 23,045 | 85,842 |
Selling, general and administrative expenses | 706,427 | 1,545,023 | 1,751,284 | 3,927,105 |
Share-based compensation | (458,143) | (35,443) | ||
Interest income | (935) | (25,318) | (1,883) | (47,589) |
Gain (Loss) on settlement of liabilities | (86,207) | (265,360) | 48,283 | (427,907) |
Loss on debt extinguishment | (330,256) | |||
Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from license fees | 2,000 | |||
Revenues from hydrocarbon sales | 169 | |||
Advance royalty payments | 204 | |||
Other production and maintenance costs | (365) | 1,406 | ||
Gross Profit | 1,635 | (1,441) | ||
Depreciation, depletion and amortization | 23 | 86 | ||
Selling, general and administrative expenses | 1,751 | 3,927 | ||
Investor relations | 40 | 41 | ||
Professional fees | 578 | 1,573 | ||
Salaries and wages | 178 | 495 | ||
Share-based compensation | 458 | 407 | ||
Travel and promotional expenses | 114 | 632 | ||
Other | 383 | 779 | ||
Financing costs | 1,365 | 989 | ||
Other expense (income) | 689 | (707) | ||
Loss on settlement of convertible debt | (232) | |||
Interest income | (47) | |||
Gain (Loss) on settlement of liabilities | 48 | (428) | ||
Loss on conversion of convertible debt | 313 | |||
Loss on debt extinguishment | 330 | |||
Financing costs | (2) | |||
Derivative liability movements | (749) | 659 | ||
Net loss | 1,444 | 6,395 | ||
Oil Extraction [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from license fees | 2,000 | |||
Revenues from hydrocarbon sales | 110 | |||
Advance royalty payments | ||||
Other production and maintenance costs | (365) | 1,406 | ||
Gross Profit | 1,635 | (1,296) | ||
Depreciation, depletion and amortization | 23 | 86 | ||
Selling, general and administrative expenses | 1,751 | 3,924 | ||
Investor relations | 40 | 41 | ||
Professional fees | 578 | 1,572 | ||
Salaries and wages | 178 | 495 | ||
Share-based compensation | 458 | 407 | ||
Travel and promotional expenses | 114 | 632 | ||
Other | 383 | 777 | ||
Financing costs | 1,365 | 989 | ||
Other expense (income) | 689 | (707) | ||
Loss on settlement of convertible debt | (232) | |||
Interest income | (47) | |||
Gain (Loss) on settlement of liabilities | 48 | (428) | ||
Loss on conversion of convertible debt | 313 | |||
Loss on debt extinguishment | 330 | |||
Financing costs | 2 | |||
Derivative liability movements | (749) | 659 | ||
Net loss | 1,444 | 6,247 | ||
Mining Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from license fees | ||||
Revenues from hydrocarbon sales | 59 | |||
Advance royalty payments | 204 | |||
Other production and maintenance costs | ||||
Gross Profit | (145) | |||
Depreciation, depletion and amortization | ||||
Selling, general and administrative expenses | 3 | |||
Investor relations | ||||
Professional fees | 1 | |||
Salaries and wages | ||||
Share-based compensation | ||||
Travel and promotional expenses | ||||
Other | 2 | |||
Financing costs | ||||
Other expense (income) | ||||
Loss on settlement of convertible debt | ||||
Interest income | ||||
Gain (Loss) on settlement of liabilities | ||||
Loss on conversion of convertible debt | ||||
Loss on debt extinguishment | ||||
Derivative liability movements | ||||
Net loss | $ 148 |
Commitments (Details) - Schedul
Commitments (Details) - Schedule of future minimum lease payments under finance leases - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Undiscounted minimum future lease payments | ||
Within 1 year | $ 177,540 | $ 193,680 |
1 to 2 years | 80,700 | |
2 to 3 years | ||
Total finance lease liability | $ 177,540 | $ 274,380 |
Commitments (Details) - Sched_2
Commitments (Details) - Schedule of future minimum lease payments under operating leases - USD ($) | Feb. 28, 2021 | Aug. 31, 2020 |
Undiscounted minimum future lease payments | ||
Within 1 year | $ 61,987 | $ 61,070 |
1 to 2 years | 63,846 | 62,903 |
2 to 3 years | 65,762 | 64,790 |
3 to 4 years | 33,367 | 66,734 |
Total operating lease liability | $ 224,962 | $ 255,497 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 05, 2021 | Mar. 17, 2021 | Feb. 28, 2021 |
Subsequent Events (Details) [Line Items] | |||
Subscription agreements, description | The company has received irrevocable subscription agreements for an aggregate of 2,666,665 common shares of at a price of $0.06 per share from certain investor. The subscriptions include a $70,000 subscription from Mr. Alex Blyumkin, an officer and director of Petroteq, for 1,666,666 common shares. These subscriptions remain subject to approval of the Company’s board of directors as well as the approval of the Exchange. | ||
Description about convertible promissory note | the Company announced that it has reached an agreement to amend a previously issued $2,400,000 principal amount secured convertible debenture with an arm’s length lender that bears interest at 5.0% per annum and that matured on February 20, 2021. The Debenture had an original maturity of October 15, 2019 but was extended to February 20, 2021 pursuant to an amending agreement dated August 20, 2020. The Company and the Lender have agreed to (i) settle all accrued and unpaid interest and penalties under the Debenture to March 26, 2020, in the aggregate principal amount of $1,227,066.43, for 26,334,246 common shares of the Company, (ii) settle $600,000 of the original principal amount of the Debenture for 15,000,000 common shares of the Company, at a deemed price of $0.04 per share, and (iii) amend the Debenture (which will have a principal amount outstanding of $1,400,000) by (a) extending the maturity date to September 30, 2021, and (b) amending the conversion price from $0.40 to $0.048. | ||
Subsequent Event [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Amount of convertible debt | $ 400,000 | ||
Debt conversion agreement, description | pursuant to a Debt Conversion Agreement dated as of that date, Petroteq issued: (a)581,026 common shares (the “Interest Conversion Shares”) at a deemed issue price of $0.39 per Interest Conversion Share, upon conversion of interest under certain convertible debentures that were originally scheduled to mature on October 19, 2020 and December 17, 2020, respectively, and; (b)500,000 common share purchase warrants exercisable for $0.0475 per share until October 19, 2021, as consideration for the amendment of the debenture originally due on October 19, 2020 and now extended to October 19, 2021; and (c)500,000 common share purchase warrants exercisable for $0.0475 per share until December 17, 2021, as consideration for the amendment of the debenture originally due on December 17, 2020 and now extended to December 17, 2021. | ||
Subsequent Event [Member] | Common Shares [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Number of shares converted by convertible debt | 9,708,738 |
Supplemental Information on O_3
Supplemental Information on Oil and Gas Operations (Details) - Schedule of hydrocarbon property acquisition and development expenses - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Schedule of hydrocarbon property acquisition and development expenses [Abstract] | ||||
Advanced royalty payments | $ 40 | $ 100 | ||
Deposits paid on mineral rights | 50 | 610 | ||
Construction of oil extraction plant | 605 | 223 | 4,778 | 2,116 |
Total | $ 605 | $ 313 | $ 4,778 | $ 2,826 |
Supplemental Information on O_4
Supplemental Information on Oil and Gas Operations (Details) - Schedule of operating expenses related to plant maintenance - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Schedule of operating expenses related to plant maintenance [Abstract] | ||||
Advanced royalty payments applied or expired | $ 112 | $ 204 | ||
Production and maintenance costs | 19 | 728 | 365 | 1,406 |
Total | $ 19 | $ 840 | $ 365 | $ 1,610 |