Cover
Cover - shares | 3 Months Ended | |
Nov. 30, 2022 | Jan. 17, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | INNOVATION1 BIOTECH INC. | |
Entity Central Index Key | 0001629205 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --08-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Nov. 30, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 20,020,239 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-55852 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 82-2275255 | |
Entity Interactive Data Current | Yes | |
Entity Address Address Line 1 | 179 Rte 46W | |
Entity Address Address Line 2 | Suite 15 #147 | |
Entity Address City Or Town | Rockaway | |
Entity Address State Or Province | NJ | |
Entity Address Postal Zip Code | 07866 | |
City Area Code | 929 | |
Local Phone Number | 459-4966 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Nov. 30, 2022 | Aug. 31, 2022 |
Current assets: | ||
Cash | $ 11,251 | $ 156,486 |
Other receivable | 56,421 | 56,421 |
Prepaid expenses | 53,069 | 74,049 |
Total current assets | 120,741 | 286,956 |
Other assets | ||
Equipment, net | 2,353 | 2,615 |
Receivable - Ingenius (Note 3) | 100,000 | 0 |
Trademarks | 1,680 | 1,680 |
Intangibles (Note 3) | 3,380,076 | 42,980,076 |
ROU Asset | 430,434 | 482,086 |
Security Deposit | 210,000 | 210,000 |
Total other assets | 4,124,543 | 43,676,457 |
Total Assets | 4,245,284 | 43,963,413 |
Current liabilities: | ||
Accounts payable | 204,242 | 106,215 |
Accrued expenses | 98,870 | 39,558 |
Accrued expenses - related parties | 361,044 | 116,977 |
Mioxal liability, current portion | 0 | 28,500,000 |
Related party payable | 10,165 | 2,665 |
Lease liability, current portion | 204,225 | 199,203 |
Note payable, current portion | 10,000 | 10,000 |
Dividends payable | 1,025,369 | 837,798 |
Total current liabilities | 1,913,915 | 29,812,416 |
Long-term liabilities: | ||
Lease liability | 245,312 | 298,423 |
Convertible note payable, net of discount | 2,720 | 0 |
Mioxal liability | 0 | 11,000,000 |
Total long-term liabilities | 248,032 | 11,298,423 |
Total liabilities | 2,161,947 | 41,110,839 |
Stockholders' equity (deficit): | ||
Common stock, $0.001 par value; 200,000,000 shares authorized; 20,020,239 and 20,020,239 shares issued and outstanding as of November 30, 2022 and August 31, 2022, respectively | 20,020 | 20,020 |
Additional paid in capital | 47,425,513 | 47,375,513 |
Accumulated deficit | (45,370,280) | (44,551,043) |
Total stockholders' equity (deficit) | 2,083,337 | 2,852,574 |
Total Liabilities and Stockholders' equity (deficit) | 4,245,284 | 43,963,413 |
Preferred stock Series B [Member] | ||
Stockholders' equity (deficit): | ||
Preferred stock, value | 2,695 | 2,695 |
Preferred stock Series A [Member] | ||
Stockholders' equity (deficit): | ||
Preferred stock, value | 0 | 0 |
Series B-1 Preferred Stock [Member] | ||
Stockholders' equity (deficit): | ||
Preferred stock, value | $ 5,389 | $ 5,389 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Nov. 30, 2022 | Aug. 31, 2022 |
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 20,020,239 | 20,020,239 |
Common stock, shares outstanding | 20,020,239 | 20,020,239 |
Preferred stock Series B [Member] | ||
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,695,514 | 2,695,514 |
Preferred stock, shares issued | 2,694,514 | 2,694,514 |
Preferred stock, shares outstanding | 2,694,514 | 2,694,514 |
Preferred stock Series A [Member] | ||
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 22,305,486 | 22,305,486 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series B1 Stocks [Member] | ||
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,389,028 | 5,389,028 |
Preferred stock, shares issued | 5,389,028 | 5,389,028 |
Preferred stock, shares outstanding | 5,389,028 | 5,389,028 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||
Revenue | $ 0 | $ 0 |
Cost of Revenue | 0 | 0 |
Gross margin | 0 | 0 |
Operating expenses: | ||
Advertising | 5,237 | 156 |
Consulting fees | 20,500 | 138,330 |
Depreciation | 261 | 0 |
General and administrative | 161,008 | 12,464 |
Professional fees | 144,976 | 108,931 |
Research and development | 15,000 | 0 |
Salaries | 281,838 | 101,191 |
Total operating expenses | 628,820 | 361,072 |
Net operating loss | (628,820) | (361,072) |
Other (income) expense: | ||
Interest expense | 2,846 | 5,139 |
Impairment expense | 0 | 17,598 |
Gain on extinguishments of debt | 0 | (143,956) |
Total Other (income) expense | 2,846 | (121,219) |
Net loss | (631,666) | (239,853) |
Preferred Dividends | (187,572) | (136,887) |
Net loss available to common shareholders | $ (819,238) | $ (376,740) |
Basic and diluted income (loss) per share | $ (0.04) | $ (0.04) |
Weighted average number of common | ||
shares outstanding - basic and diluted | 20,020,239 | 5,636,864 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIT) (Unaudited) - USD ($) | Total | Series B1 Preferred Stocks [Member] | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Series B, Preferreds Stock |
Balance, shares at Aug. 31, 2021 | 188,616 | 2,694,514 | ||||
Balance, amount at Aug. 31, 2021 | $ (224,839) | $ 0 | $ 188 | $ 2,745,906 | $ (2,973,628) | $ 2,695 |
Series B-1 preferred stock purchase agreements, shares | 5,389,028 | |||||
Series B-1 preferred stock purchase agreements, amount | 4,000,000 | $ 5,389 | $ 0 | 3,994,611 | 0 | 0 |
Common stock issued for asset purchase, shares | 19,831,623 | |||||
Common stock issued for asset purchase, amount | 40,654,827 | 0 | $ 19,832 | 40,634,995 | 0 | 0 |
Dividends on preferred stock accrued | (136,887) | 0 | 0 | 0 | (136,887) | 0 |
Net loss, period ended November 30, 2021 | (239,853) | $ 0 | $ 0 | 0 | (239,853) | $ 0 |
Balance, shares at Nov. 30, 2021 | 5,389,028 | 20,020,239 | 2,694,514 | |||
Balance, amount at Nov. 30, 2021 | (44,053,248) | $ 5,389 | $ 20,020 | 47,375,512 | (3,350,368) | $ 2,695 |
Balance, shares at Aug. 31, 2022 | 5,389,028 | 20,020,239 | 2,694,514 | |||
Balance, amount at Aug. 31, 2022 | 2,852,574 | $ 5,389 | $ 20,020 | 47,375,513 | (44,551,043) | $ 2,695 |
Common stock issued for asset purchase, amount | 40,654,827 | |||||
Dividends on preferred stock accrued | (187,572) | 0 | 0 | 0 | (187,572) | 0 |
Net loss, period ended November 30, 2021 | (631,666) | 0 | 0 | 0 | (631,666) | 0 |
Convertible notes payable warrants and beneficial conversion feature | 50,000 | $ 0 | $ 0 | 50,000 | 0 | $ 0 |
Balance, shares at Nov. 30, 2022 | 5,389,028 | 20,020,239 | 2,694,514 | |||
Balance, amount at Nov. 30, 2022 | $ 2,083,337 | $ 5,389 | $ 20,020 | $ 47,425,513 | $ (45,370,280) | $ 2,695 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (631,666) | $ (239,853) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 261 | 0 |
Amortization of ROU Asset | 51,652 | 0 |
Amortization of discount, warrants, BCF on convertible notes payable | 2,720 | 0 |
Impairment expense | 0 | 17,598 |
Gain on extinguishment of debt | 0 | (143,956) |
Changes in operating assets and liabilities: | ||
Prepaid expenses | 20,980 | (1,450) |
Accounts payable | 49,937 | (22,745) |
Related party payable | 7,500 | (64,600) |
Accrued expenses | 59,313 | 101,242 |
Accrued expenses related party | 244,067 | |
Net cash provided by (used in) operating activities | (195,235) | (353,764) |
Cash flows from investing activities: | ||
Cash paid for asset purchase | 0 | (350,000) |
Notes receivable investment | 0 | (500,000) |
Net cash used in investing activities | 0 | (850,000) |
Cash flows from financing activities | ||
Proceeds from convertible notes payable | 50,000 | 4,000,000 |
Net cash provided by financing activities | 50,000 | 4,000,000 |
Net increase (decrease) in cash | (145,235) | 2,796,236 |
Cash - beginning of the period | 156,486 | 137,476 |
Cash - end of the period | 11,251 | 2,933,712 |
Supplemental disclosures: | ||
Interest paid | 12,043 | 0 |
Non-cash investment and financing activities: | ||
Preferred stock dividends accrued | 187,572 | 136,887 |
Common stock issued for asset purchase | 0 | 40,654,827 |
Sale of Mioxal assets | 39,600,000 | 0 |
Transfer of Mioxal liabilities | (39,500,000) | 0 |
Receivable created with sale of Mioxal assets | $ (100,000) | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Nov. 30, 2022 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Innovation1 Biotech Inc. (the “Company”) was formed under the laws of the state of Nevada in 2014, under the name of My Cloudz, Inc. Gridiron BioNutrients completed a reverse merger with My Cloudz, Inc. in October 2017 and the Company then changed its name to Gridiron BioNutrients, Inc. Effective March 31, 2022, as approved by the shareholders, the name of the Company was changed from Gridiron BioNutrients, Inc. (trading symbol GVMP) to Innovation1 Biotech Inc. (trading symbol IVBT). The Company is currently developing products using five proprietary preclinical prodrugs, all fully synthetic without connection to botanical sourcing: a mushroom-derived psychedelic molecule for treatment post-traumatic stress disorder and depression, a novel cannabinoid and tree bark derived psychedelic for treatment of addiction and three additional novel cannabinoid prodrugs addressing clinical indications of refractory pediatric epilepsy, hypertrophic scarring and ocular inflammation. The Company has elected an August 31 st Change in Control On November 9, 2021, the Company completed the asset acquisition of ST Biosciences, Ltd., consisting substantially of intellectual property assets, relating to Mioxal® as discussed in Note 3 – Asset Acquisition. Going Concern The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company had no revenue and a net loss of $631,666 for the three months ended November 30, 2022. The Company has working capital deficit of $1,793,174 and an accumulated deficit of $45,370,280 as of November 30, 2022. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year of the issuance of these financial statements. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The ability of the Company to fully commence its operations is dependent upon, among other things, obtaining additional financing to continue operations and execution of its business plan. In response to these concerns, management plans to fund operations through additional debt and equity financing. Debt instruments may be convertible or non-convertible and will vary based on the Company’s needs and financing options available at such times. There can be no assurance that management’s plan will be successful. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Nov. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation This summary of accounting policies for Innovation1 is presented to assist in understanding the Company’s financial statements. The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“US GAAP”), which have been consistently applied in the preparation of the financial statements. The accompanying unaudited financial information as of and for the three months ended November 30, 2022 and 2021 has been prepared in accordance with US GAAP for interim financial information and with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, such financial information includes all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial position at such date and the operating results and cash flows for such periods. Operating results for the three months ended November 30, 2022 are not necessarily indicative of the results that may be expected for the entire year or for any other subsequent interim period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules of the U.S. Securities and Exchange Commission, or the SEC. These unaudited financial statements and related notes should be read in conjunction with our audited financial statements for the year ended August 31, 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 15, 2022. The condensed consolidated balance sheet at August 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles in the U.S. for complete financial statements. Cash and cash equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company did not have any cash equivalents as of November 30, 2022 and August 31, 2022. Fair Value of Financial Instruments Fair value of certain of the Company’s financial instruments including cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments. Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk. Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values. Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income. The Company did not have any Level 1 or Level 2 assets and liabilities at November 30, 2022 and August 31, 2022. The Company had Level 3 liabilities related to outstanding warrants at November 30, 2022. All financial assets and liabilities approximately fair value. Other Receivable During the year ended August 31, 2022, the Company discovered duplicate withdrawals from its payroll processing company and has recorded a receivable on its unaudited condensed consolidated balance sheet at November 30, 2022. At the close of the November 30, 2022 quarter, these funds have not yet been reimbursed. There were $56,421 and $56,421 outstanding receivables as of November 30, 2022 and August 31, 2022, respectively. Property and Equipment Property and equipment are carried at cost. Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period. Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery system for federal income tax purposes. The estimated useful lives of depreciable computers and other equipment are three years. With the asset acquisition as discussed in Note 3 – Asset Acquisition Basic and Diluted Income (Loss) Per Share Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The Series B and Series B1 convertible preferred shares would convert to 8,083,542 shares of the Company’s common at November 30, 2022 and 2021. The Company would calculate diluted earnings per share by dividing the Company’s net income available to common shareholders less preferred dividends by the diluted weighted average number of shares outstanding during the period. For the three month periods ended November 30, 2022 and 2021, potentially dilutive convertible preferred stock were excluded from the computation of diluted loss per share because they were anti-dilutive due to net losses in those periods. Recently Issued Accounting Standards In August 2020, the FASB issued ASU 2020-06 , Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity As of November 30, 2022, there were several new accounting pronouncements issued by the Financial Accounting Standards Board. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements. |
ASSET ACQUISITION
ASSET ACQUISITION | 3 Months Ended |
Nov. 30, 2022 | |
ASSET ACQUISITION | |
ASSET ACQUISITION | NOTE 3 – ASSET ACQUISITION On October 27, 2021, the Company entered into an asset acquisition agreement with ST Biosciences, Ltd., a company organized under the laws of England and Wales (“STB”), of certain Transferred Assets, consisting substantially of their intellectual property relating to Mioxal®, a nutraceutical complex composed of essential amino acids, natural coenzymes and minerals. The Company acquired certain intellectual property, and patent rights, and no tangible assets and assumed certain liabilities of STB, as discussed below. The acquisition was completed pursuant to the terms of the Amended and Restated Asset Purchase Agreement dated November 9, 2021. As consideration for the acquisition, the Company paid $350,000 in cash to Ingenius, paid cash of $500,000 to STB and issued 19,831,623 shares of Common Stock to STB valued at $40,654,827 or $2.05 per share based on the closing market price on November 5, 2021, which at the closing of the acquisition represented approximately 70% of the Company’s outstanding shares of Common Stock on a fully diluted basis, for an aggregate purchase price of $41,504,827, resulting in a change in control of the Company. The shares were issued in December 2021. At acquisition the assets and liabilities assumed have been recorded at the fair values as follows: Mioxal® 81,249,827 Other intangible assets 178,000 Less liabilities assumed: Mioxal® liability assumed (39,500,000 ) Other liabilities assumed (423,000 ) Net value acquired in asset acquisition 41,504,827 During the year ended August 31, 2022, additional intangibles of $28,773 were added related to the asset acquisition for payments made subsequent to the acquisition date. The Mioxal® intellectual property, including the patent rights, was acquired by STB from Ingenius Biotech S.L, a Spanish corporation (“Ingenius”) on September 10, 2021. The Ingenius milestone and stock payments set forth in the Purchase Agreement between Ingenius and STB, were assumed by the Company in aggregate of $39,500,000 and are recorded in current and long-term liabilities in the accompanying consolidated balance sheets. The first installment of $1,500,000 was due on January 15, 2022, the second installment of $1,500,000 on April 15, 2022 and a $3,500,000 payment was due within thirty business days following the occurrence of the milestone event. The milestone, a signed sales agreement with a third party to distribute Mioxal throughout Europe, was not reached and therefore the requirement for the milestone payment was forfeited and will never be owed. In addition, $15,000,000 was to be paid through the issuance of the Company’s common stock in three tranches beginning twelve months from execution of agreement with STB on September 10, 2021; 1) on September 10, 2022 - $4,000,000 (not issued as of the date of this filing), 2) on September 10, 2023 - $5,000,000, and 3) on September 10, 2024 - $6,000,000. The remaining balance was to be paid on an earn-out basis whereunder Ingenius would earn an 8% royalty on all sales generated by Mioxal® until the balance was satisfied. On January 13, 2022, the Company entered into Amendment No. 1 to Purchase Agreement with Ingenius Biotech S.L. to modify the terms of the agreement dated September 10, 2021. Under the amended agreement, the first installment of $1,500,000 was due on June 30, 2022, with an additional extension of the due date to August 30, 2022 (not paid), and the second installment was due on December 31, 2022. See Sale of Mioxal Intangible Assets The Mioxal® asset had a 24-year life and was to be tested for impairment on an annual basis. During the three and twelve months ended August 31, 2022, amortization of $846,494 and $2,539,483 was expensed. The other intangible assets for $178,000 have a 21-year life. During the three and twelve months ended August 31, 2022, amortization of $2,119 and $6,357 was expensed. During the twelve months ended August 31, 2022, additional intangibles were added related to the asset acquisition in the amount of $38,638. Impairment of Intangible Assets At August 31, 2022, an asset impairment evaluation resulted in the Company recording $35,762,550 in impairment expense in the fourth quarter of the fiscal year ended August 31, 2022, and a carrying value of $42,980,076 for the intangible assets. The Company had recorded impairment expenses of $17,598 in previous quarters, to total $35,780,148 for the fiscal year ended August 31, 2022. The calculation of the carrying value of the Mioxal net assets was informed by the terms of the sale of those assets on November 7, 2022, as calculated below: Valuation at the sale of Mioxal: Cash to be received by the Company $ 100,000 FV of 350,000 shares transferred to Buyer from third parties ($0.13 per share) (45,500 ) Debt assumed/forgiven by Buyer 39,500,000 NPV of estimated future royalty cash stream 3,425,576 Total estimated value of intangible assets at August 31, 2022 42,980,076 Carrying value of intangible assets at August 31, 2022 $ 78,742,626 Impairment expense at August 31, 2022 on intangible assets $ (35,762,550 ) The assumptions used for estimated future royalty cash stream included 1) 5% royalty on gross margin for a five-year period of estimated sales in the United States, with a two-year introductory delay in taking the product to market, 2) a similar royalty on international sales, with an additional two-year introductory delay and an increased cost of 15% for additive distribution costs, 3) an estimate of approximately 200,000 units sold in year 1 of the projected royalty stream for a total sales estimate of approximately $7,500,000, and 4) sales growth rates of 100% for each of the years 2 through 4, decreasing to 60% in year 5. Growth rate in any subsequent year would be expected to drop off significantly or to 0%, however, those possible future years are not included in the project revenues, costs or gross merging. The projections of foundational sales volumes, revenues and costs were performed by industry experts in January 2022 as part of an independent product evaluation. As with all projections, Management cannot assure that the estimated amounts will be actualized. Sale of the Mioxal Intangible Assets: On November 7, 2022, the Company completed the disposition of all the assets, including intellectual property assets, and obligations relating to Mioxal® to Ingenius Biotech S.L., a corporation organized under the laws of Spain (“Ingenius”). As part of the disposition, certain shareholders of the Company transferred an aggregate of 350,000 shares of the Company’s currently outstanding common stock, to Ingenius and Ingenius agreed to pay the Company (i) $100,000 upon the first to occur of Ingenius’ first sale or commercialization of the Mioxal product or Ingenius’ sale, license, transfer or other disposition of the Mioxal product to a third party, and (ii) a 5% royalty on worldwide net sales of the Mioxal product by Ingenius or a third party commencing on the date of the first sale of Mioxal products and ending on the 18-month anniversary of the last to expire of any patent covering the Mioxal products. Additionally, Ingenius agreed to release the Company from all of its liabilities and obligations relating to the Mioxal products and indemnify the Company from all claims relating to the Mioxal product following the date of the disposition. After the disposition of the assets and liabilities related to Mioxal, the Company recognized a $3,380,076 royalty asset, recorded as an intangible asset on the consolidated balance sheet. The $100,000 of cash yet to be received is recorded as a long-term receivable. |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Nov. 30, 2022 | |
NOTES PAYABLE | |
NOTES PAYABLE | NOTE 4 – NOTES PAYABLE Short-Term Notes Payable On September 14, 2017, the Company issued a $10,000 promissory note to a limited liability company. The loan bears interest at 5% and had a maturity date of September 15, 2018. The unpaid balance including accrued interest was 12,603 and $12,107 at November 30, 2022 and 2021, respectively. The Company is in default with the repayment terms of the note. Interest of $125 and $125 was expensed during the three months ended November 30, 2022 and 2021, respectively. Convertible Notes Payable The Company has entered into a private placement to receive net cash proceeds up to $300,000, after the original issue discount, from secured convertible promissory notes with attached $0.08 warrants to purchase up to 4,411,764 shares of common stock. Each note is discounted 15% with a maturity date of 18 months from original issuance. The notes bear interest of 8% per annum to be paid monthly. Each note is convertible into common shares by dividing the outstanding principal on the note by the conversion price of $0.08. The warrants are exercisable for a period of seven years at an exercise price of $0.08 per share. During the three months ended November 30, 2022, the Company received the first tranche of the convertible notes of $58,823 less a discount of $8,823, for cash proceeds of 50,000. The Company issued 735,294 warrants and recorded a fair value of $27,012 for the warrants. The total fair value of the warrants was estimated using the following weighted average assumptions: November 29, 2022 Market price of common stock on date of issuance $ 0.095 Risk-free interest rate 3.63% Expected dividend yield 0 Expected term (in years) 7 Expected volatility 202.5% Additionally, a beneficial conversion feature 22,988 was determined to exist, which represented the lesser of the conversion price of the convertible instrument or the per share fair value of the underlying stock into which it is convertible. The fair value of the warrants and the beneficial conversion feature, which together consumed the value of the net proceeds, were charged to additional paid in capital at the date of issuance. At November 30, 2022, the Company had outstanding convertible notes payable of $58,823, less remaining unamortized discounts of $56,103 for a net liability of $2,720. The Company recognized a total of $2,720 of discount amortization to interest expense during the three months ended November 30, 2022. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Nov. 30, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 5 – RELATED PARTY TRANSACTIONS The Company has a contract with two consulting and pharmaceutical firms owned by the former Chief Science Officer, Salzman Group LLC and Herring Creek Pharmaceuticals, under which research and development activities are performed on behalf of the Company. During the fiscal year 2022, the Company paid $150,000 for a security deposit, $131,500 for research and development fees and assumed $67,000 in a liability from ST Biosciences at the acquisition of the assets described in Note 3 Asset Acquisition. The $67,000 liability was released during the period and was credited to the Mioxal intangible asset. As of November 30, 2022 and August 31, 2022, the Company owed $10,165 and $2,665 to these two firms and owed salary of $30,769 and $4,615 to Dr. Salzman. As of November 30, 2022 and August 31, 2022, the Company owed Jeffrey Kraws, the Company’s former Chief Executive Officer, $121,154 and $17,308 in unpaid salary and $132,967 and $83,516 in unpaid bonuses, respectively. As of November 30, 2022 and August 31, 2022, the Company owed salary of $76,154 and $11,538, respectively, to Jason Frankovich, a former director. |
LEASE LIABILITY
LEASE LIABILITY | 3 Months Ended |
Nov. 30, 2022 | |
LEASE LIABILITY | |
LEASE LIABILITY | NOTE 6 – LEASE LIABILITY On January 1, 2022, we adopted ASC Topic 842 – Leases. Under this new guidance, lessees are required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases. Upon adoption, we recognized operating lease right-of-use (“ROU”) assets and corresponding lease liabilities of $619,825. Lessee accounting We determine if an arrangement is or contains a lease at inception. Our assessment is based on (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period and (3) whether we have the right to direct the use of the asset. Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for the majority of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. The lease classification affects the expense recognition in the income statement. Operating lease costs are recorded entirely in operating expenses. Finance lease costs are split, where amortization of the ROU asset is recorded in operating expenses and an implied interest component is recorded in interest expense. Under the guidance of ASC 842, operating leases are included in right-of-use assets, current lease liabilities, and noncurrent lease liabilities on our balance sheets. ROU assets and lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at transition date in determining the present value of future payments. The ROU asset includes any lease payments made but excludes lease incentives and initial direct costs incurred, if any. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease extensions Many leases have options to either extend or terminate the lease. In determining the lease term, we considered all available contract extensions that are reasonably certain of occurring. Operating leases On January 1, 2022, the Company entered into an operating lease for office space. The lease is effective for 3 years from the commencement date with automatic renewal at the expiration date. The lease agreement may be terminated earlier upon ninety days’ prior written notice by either party. The lease requires adjustment upon renewal with an increase to the monthly rent by 10% of the monthly rent due for the month preceding such renewal date or market rate, whichever is the greater amount. The following table summarizes balance sheet data related to leases at November 30, 2022 and August 31, 2022: November 30, 2022 August 31, 2022 Assets Operating lease right of use assets $ 619,825 $ 619,825 Less accumulated depreciation (189,391 ) (137,739 ) Total operating lease right of use assets $ 430,434 $ 482,086 Liabilities Operating lease liability, current $ 204,225 $ 199,203 Operating lease liability, noncurrent 245,312 298,423 Total lease liabilities $ 449,537 $ 497,626 Operating lease liability is presented net of lease payments. The Company is required to make monthly payments of $20,000. During the three months ended November 30, 2022, the Company paid $47,957 towards the lease liability, $12,043 in interest expense and recorded $51,652 in amortization expense of the ROU asset. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 3 Months Ended |
Nov. 30, 2022 | |
STOCKHOLDERS EQUITY | |
STOCKHOLDERS EQUITY | NOTE 7 – STOCKHOLDERS’ EQUITY Dividends During the year ended August 31, 2018, the Company issued Series A Convertible Preferred Stock, which accrues dividends at a rate of 5% annually. The Company exchanged the Series A Convertible Preferred for Series B Preferred Stock. As a result of the Exchange agreement, the dividends on the Series A Convertible Preferred Stock was reduced to $0 in the accompanying consolidated balance sheets. The Series B and Series B1 Convertible Preferred Stock accrues dividends at a rate of 10% annually. There was $1,025,369 and $837,798 of dividends payable at November 30, 2022 and August 31, 2022, respectively. The dividends have not been declared and are accrued in the accompanying unaudited condensed consolidated balance sheets as a result of a contractual obligation in the Company’s Series B and Series B1 Preferred Stock offering. Preferred Stock There were no shares of Series A Convertible Preferred Stock issued and outstanding as of November 30, 2022 and August 31, 2022. There were 2,694,514 shares of Series B Convertible Preferred Stock issued and outstanding as of November 30, 2022 and August 31, 2022, respectively. There were 5,389,028 shares of Series B-1 Convertible Preferred Stock issued and outstanding as of November 30, 2022 and August 31, 2022, respectively. Common Stock The Company is authorized to issue up to 200,000,000 shares of $0.001 par value common stock. As discussed in Note 3 – Asset Acquisition, There were 20,020,239 common shares issued and outstanding as of November 30, 2022 and August 31, 2022. Warrants During the three months ended November 30, 2022, the Company issued 735,294 warrants to purchase shares of the Company’s common stock, as part of the convertible notes financing, see Note 4 – Notes Payable At November 30, 2022 and 2021, the following warrants were outstanding: Number of warrants Weighted average exercise price Weighted average term remaining (years) Balance, August 31, 2022 - $ - - Issued 735,294 0.08 7 Balance, November 30, 2022 735,294 0.08 7 Balance, August 31, 2021 - - - Balance, November 30, 2022 - - - |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Nov. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES On September 30, 2022, a party identified as New You Inc. filed a complaint with the District Court of Clark County, Nevada against Innovation 1 Biotech, Inc, ST Biosciences LTD, Jeffrey Kraws and Jason Frankovich. The complaint alleges that during Mr. Frankovich’s service to New You Inc. as Chairman of the Board of Directors, concurrent with Mr. Frankovich’s and Mr. Kraws’s services as executives of ST Biosciences LTD, Mr. Frankovich converted funds away from New You Inc. to satisfy obligations of ST Biosciences LTD and/or Innovation1 and/or to enrich Frankovich and Kraws. The amount of the claim is a total of $249,020 plus damages in excess of $30,000 and includes a claim for legal fees. The Company’s legal firm has evaluated the claims of the complaint and together with Innovation1 management believes the claims to be without merit. The Company intends to defend against the complaint and believes any potential liability to be $0. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Nov. 30, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS The Company evaluates events that have occurred after the balance sheet date of November 30, 2022, through the date which the condensed consolidated financial statements were filed. Based upon the review, other than described below, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the consolidated financial statements. On December 5, 2022, the Board appointed Charles W. Allen and Dr. Shahin Gharakhanian as members of the Board. On December 6, 2022, Mr. Allen was appointed Treasurer and Secretary, replacing Jamie Lynn Coulter as Secretary. On December 6, 2022, Jeffrey Kraws resigned as the Company’s Chief Executive Officer. He remains a member of the Board. Subsequent to November 30, 2022, the Company has received cash proceeds of $100,000 from convertible notes payable, net of discount, with attached $0.08 warrants to purchase up to 1,470,588 shares of the Company’s common stock. At the date of this filing, the Company is behind in two months’ rent. Our monthly rent is approximately $20,000. The Company believes it is possible the landlord may take legal action if timely payment is not made. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Nov. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | This summary of accounting policies for Innovation1 is presented to assist in understanding the Company’s financial statements. The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“US GAAP”), which have been consistently applied in the preparation of the financial statements. The accompanying unaudited financial information as of and for the three months ended November 30, 2022 and 2021 has been prepared in accordance with US GAAP for interim financial information and with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, such financial information includes all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial position at such date and the operating results and cash flows for such periods. Operating results for the three months ended November 30, 2022 are not necessarily indicative of the results that may be expected for the entire year or for any other subsequent interim period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules of the U.S. Securities and Exchange Commission, or the SEC. These unaudited financial statements and related notes should be read in conjunction with our audited financial statements for the year ended August 31, 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 15, 2022. The condensed consolidated balance sheet at August 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles in the U.S. for complete financial statements. |
Cash and cash equivalents | The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company did not have any cash equivalents as of November 30, 2022 and August 31, 2022. |
Fair Value of Financial Instruments | Fair value of certain of the Company’s financial instruments including cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments. Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk. Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values. Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income. The Company did not have any Level 1 or Level 2 assets and liabilities at November 30, 2022 and August 31, 2022. The Company had Level 3 liabilities related to outstanding warrants at November 30, 2022. All financial assets and liabilities approximately fair value. |
Other receivable | During the year ended August 31, 2022, the Company discovered duplicate withdrawals from its payroll processing company and has recorded a receivable on its unaudited condensed consolidated balance sheet at November 30, 2022. At the close of the November 30, 2022 quarter, these funds have not yet been reimbursed. There were $56,421 and $56,421 outstanding receivables as of November 30, 2022 and August 31, 2022, respectively. |
Property and Equipment | Property and equipment are carried at cost. Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period. Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery system for federal income tax purposes. The estimated useful lives of depreciable computers and other equipment are three years. With the asset acquisition as discussed in Note 3 – Asset Acquisition |
Basic and Diluted Income (Loss) Per Share | Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The Series B and Series B1 convertible preferred shares would convert to 8,083,542 shares of the Company’s common at November 30, 2022 and 2021. The Company would calculate diluted earnings per share by dividing the Company’s net income available to common shareholders less preferred dividends by the diluted weighted average number of shares outstanding during the period. For the three month periods ended November 30, 2022 and 2021, potentially dilutive convertible preferred stock were excluded from the computation of diluted loss per share because they were anti-dilutive due to net losses in those periods. |
Recently Issued Accounting Standards | In August 2020, the FASB issued ASU 2020-06 , Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity As of November 30, 2022, there were several new accounting pronouncements issued by the Financial Accounting Standards Board. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements. |
ASSET ACQUISITION (Tables)
ASSET ACQUISITION (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
ASSET ACQUISITION | |
Sechdule of Fair Value of assets and liabilities | Mioxal® 81,249,827 Other intangible assets 178,000 Less liabilities assumed: Mioxal® liability assumed (39,500,000 ) Other liabilities assumed (423,000 ) Net value acquired in asset acquisition 41,504,827 |
Impairment of Intangible Assets | Valuation at the sale of Mioxal: Cash to be received by the Company $ 100,000 FV of 350,000 shares transferred to Buyer from third parties ($0.13 per share) (45,500 ) Debt assumed/forgiven by Buyer 39,500,000 NPV of estimated future royalty cash stream 3,425,576 Total estimated value of intangible assets at August 31, 2022 42,980,076 Carrying value of intangible assets at August 31, 2022 $ 78,742,626 Impairment expense at August 31, 2022 on intangible assets $ (35,762,550 ) |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
NOTES PAYABLE | |
Sechdule of weighted average of fair value warrants | November 29, 2022 Market price of common stock on date of issuance $ 0.095 Risk-free interest rate 3.63% Expected dividend yield 0 Expected term (in years) 7 Expected volatility 202.5% |
LEASE LIABILITY (Tables)
LEASE LIABILITY (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Summary of balance sheet data related to leases | November 30, 2022 August 31, 2022 Assets Operating lease right of use assets $ 619,825 $ 619,825 Less accumulated depreciation (189,391 ) (137,739 ) Total operating lease right of use assets $ 430,434 $ 482,086 Liabilities Operating lease liability, current $ 204,225 $ 199,203 Operating lease liability, noncurrent 245,312 298,423 Total lease liabilities $ 449,537 $ 497,626 |
STOCKHOLDERS EQUITY (Tables)
STOCKHOLDERS EQUITY (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
STOCKHOLDERS EQUITY | |
Schedule of outstanding warrants | Number of warrants Weighted average exercise price Weighted average term remaining (years) Balance, August 31, 2022 - $ - - Issued 735,294 0.08 7 Balance, November 30, 2022 735,294 0.08 7 Balance, August 31, 2021 - - - Balance, November 30, 2022 - - - |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - USD ($) | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||
Net loss | $ (631,666) | $ (239,853) |
Working capital deficit | (1,793,174) | |
Accumulated Deficit | $ (45,370,280) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Aug. 31, 2022 | |
Outstanding accounts receivable | $ 56,421 | $ 56,421 | |
Depreciation expense | $ 261 | $ 0 | |
Preferred stock Series B One [Member] | |||
Common stock issued upon conversion of preferred stock | 8,083,542 | 8,083,542 |
ASSET ACQUISITION (Details)
ASSET ACQUISITION (Details) | 3 Months Ended |
Nov. 30, 2022 USD ($) | |
ASSET ACQUISITION | |
Mioxal assets | $ 81,249,827 |
Other intangible assets | 178,000 |
Less liabilities assumed | |
Mioxal liability assumed | (39,500,000) |
Other liabilities assumed | (423,000) |
Net value acquired in asset acquisition | $ 41,504,827 |
ASSET ACQUISITION (Details 1)
ASSET ACQUISITION (Details 1) | 3 Months Ended |
Nov. 30, 2022 USD ($) | |
ASSET ACQUISITION | |
Cash to be received by the Company | $ 100,000 |
FV of 350,000 shares transferred to Buyer from third parties ($0.13 per share) | (45,500) |
Debt assumed/forgiven by Buyer | 39,500,000 |
NPV of estimated future royalty cash stream | 3,425,576 |
Total estimated value of intangible assets at August 31, 2022 | 42,980,076 |
Carrying value of intangible assets at August 31, 2022 | 78,742,626 |
Impairment expense at August 31, 2022 on intangible assets | $ (35,762,550) |
ASSET ACQUISITION (Details Narr
ASSET ACQUISITION (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Nov. 07, 2022 | Sep. 10, 2022 | Nov. 30, 2022 | Aug. 31, 2022 | Nov. 30, 2021 | Aug. 31, 2022 | Sep. 10, 2021 | Aug. 31, 2021 | |
Impairment expenses | $ 35,780,148 | $ 17,598 | ||||||
Interest on royalty, percentage | 8% | |||||||
Intangible assets | 28,773 | |||||||
Common Stock issued for asset purchase, amount | $ 40,654,827 | $ 40,654,827 | ||||||
Common stock shares outstanding | 20,020,239 | 20,020,239 | 20,020,239 | |||||
Cash | $ 11,251 | $ 156,486 | $ 156,486 | |||||
Common stock, shares par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Common stock shares issued | 20,020,239 | 20,020,239 | 20,020,239 | |||||
Mioxal [Member] | ||||||||
Amortization costs | $ 41,504,827 | $ 846,494 | $ 2,539,483 | |||||
Useful life asset | 24 years | |||||||
Mioxal [Member] | Other Intangible Assets[Member] | ||||||||
Amortization costs | $ 6,357 | 2,119 | ||||||
Useful life asset | 21 years | |||||||
Intangible assets | $ 178,000 | |||||||
Series B-1, Convertible Preferred Stock | Tranche One [Member] | ||||||||
Common Stock issued for asset purchase, amount | 500,000 | |||||||
Series B-1, Convertible Preferred Stock | Tranche Two [Member] | ||||||||
Common Stock issued for asset purchase, amount | 500,000 | |||||||
Series B-1, Convertible Preferred Stock | Initial Tranche [Member] | ||||||||
Common Stock issued for asset purchase, amount | 200,000 | |||||||
Series B-1, Preferred Stock | Tranche Three [Member] | ||||||||
Common Stock issued for asset purchase, amount | $ 1,000,000 | |||||||
Ingenius Biotech [Member] | ||||||||
Current and long-term liabilities | $ 39,500,000 | |||||||
S T Bio Sciences Ltd | ||||||||
Common Stock issued for asset purchase, amount | $ 42,980,076 | |||||||
Amortization costs | 38,638 | |||||||
Cash consideration paid | $ 3,500,000 | |||||||
Common stock, shares par value | $ 2.05 | |||||||
Impereiment expenses | $ 35,762,550 | |||||||
Common stock shares issued | 19,831,623 | |||||||
S T Bio Sciences Ltd | Tranche One [Member] | ||||||||
Amount received | $ 4,000,000 | |||||||
S T Bio Sciences Ltd | Tranche Two [Member] | ||||||||
Amount received | 5,000,000 | |||||||
Ingenius Biotech SL [Member] | Mioxal [Member] | ||||||||
Interest on royalty, percentage | 5% | |||||||
Common stock shares outstanding | 350,000 | |||||||
Cash | $ 100,000 | |||||||
Recognized royalty asset | 3,380,076 | |||||||
Payment to party | $ 100,000 | |||||||
April 15, 2022 [Member] | Ingenius Biotech [Member] | ||||||||
Amount received | 15,000,000 | |||||||
Asset acquisition second installment | 1,500,000 | |||||||
September 10, 2024 [Member] | S T Bio Sciences Ltd | Tranche Three [Member] | ||||||||
Amount received | 6,000,000 | |||||||
January 15, 2022 [Member] | Ingenius Biotech [Member] | ||||||||
Asset acquisition first installment | 1,500,000 | |||||||
Asset acquisition thereafter | 350,000 | |||||||
Ramaining amount | $ 1,500,000 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) | 3 Months Ended |
Nov. 29, 2022 $ / shares | |
NOTES PAYABLE | |
Market price of common stock on date of issuance | $ 0.095 |
Risk-free interest rate | 3.63% |
Expected dividend yield | 0% |
Expected term (in years) | 7 years |
Expected volatility | 202.50% |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Sep. 14, 2017 | |
Outstanding convertible note payable | $ 58,823 | ||
Unamortized debt discounts | 56,103 | ||
Discount amortization of interest expense | 2,720 | ||
Beneficial conversion of convertible note payable | 22,988 | ||
Convertible Note Payable | |||
Promisory notes payable | 58,823 | ||
Proceeds from net cash private palcement | $ 300,000 | ||
Purchase of warrants price per shares | $ 0.08 | ||
Warrants purchase shares | 4,411,764 | ||
Discount rate | 15% | ||
Maturity date | 18 years | ||
Debt conversion price | $ 0.08 | ||
Warrants exercisable period | 7 years | ||
Warrants exercise price | $ 0.08 | ||
Bears Interest | 8% | ||
Debt discount | $ 8,823 | ||
Debt cash proceeds | $ 50,000 | ||
Warrants issued | 735,294 | ||
Issuance of fair value of warrants | $ 27,012 | ||
Short-Term Debts | |||
Promisory notes payable | $ 10,000 | ||
Notes payable, interest rate | 5% | ||
Accrued interest | 12,603 | $ 12,107 | |
Interest expensed | $ 125 | $ 125 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | Aug. 31, 2021 | |
Owed salary | $ 30,769 | $ 4,615 | |
Security deposit | 150,000 | ||
Liability amount from biosciences | 67,000 | ||
Unpaid salary | 121,154 | 17,308 | |
Unpaid bonuses | 132,967 | 83,516 | |
Research and development fee | 15,000 | $ 0 | |
Former Director [Member] | |||
Owed salary | 76,154 | 11,538 | |
ST Bioscience [Member] | |||
Research and development fee | 131,500 | ||
Mioxal [Member] | |||
Liability amount released | 67,000 | ||
Acquire amount | $ 10,165 | $ 2,665 |
LEASE LIABILITY (Details)
LEASE LIABILITY (Details) - USD ($) | Nov. 30, 2022 | Aug. 31, 2022 |
LEASE LIABILITY | ||
Operating lease right of use assets | $ 619,825 | $ 619,825 |
Less accumulated depreciation | (189,391) | (137,739) |
Total operating lease right of use assets | 430,434 | 482,086 |
Operating lease liability, current | 204,225 | 199,203 |
Operating lease liability, noncurrent | 245,312 | 298,423 |
Total lease liabilities | $ 449,537 | $ 497,626 |
LEASE LIABILITY (Details Narrat
LEASE LIABILITY (Details Narrative) | 3 Months Ended |
Nov. 30, 2022 USD ($) | |
LEASE LIABILITY | |
Monthly rent, Description | The lease requires adjustment upon renewal with an increase to the monthly rent by 10% of the monthly rent due for the month preceding such renewal date or market rate, whichever is the greater amount |
Monthly payment | $ 20,000 |
Amount paid | 47,957 |
Interest paid | 12,043 |
Lease liability | 619,825 |
Amortization expense | $ 51,652 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 3 Months Ended |
Nov. 30, 2022 USD ($) | |
COMMITMENTS AND CONTINGENCIES | |
Claim for legal fees | $ 30,000 |
Claim amount | 249,020 |
Potential liability | $ 0 |
STOCKHOLDERS EQUITY (Details)
STOCKHOLDERS EQUITY (Details) | 3 Months Ended |
Nov. 30, 2022 $ / shares shares | |
Number of shares outstanding, ending | 735,294 |
Warrants [Member] | |
Number of shares outstanding, ending | 735,294 |
Number of shares, Issued | 735,294 |
Weighted average exercise price outstanding, ending | $ / shares | $ 0.08 |
Weighted average remaining term outstanding, ending | 7 years |
Weighted average remaining term outstanding, issued | 7 years |
Weighted average exercise price outstanding, issued | $ / shares | $ 0.08 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - USD ($) | 3 Months Ended | ||||
Nov. 09, 2021 | Nov. 30, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2018 | |
Common stock, shares par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 2,000,000 | ||
Number of shares outstanding, ending | 735,294 | ||||
Common stock, shares issued | 20,020,239 | 20,020,239 | |||
Common stock, shares outstanding | 20,020,239 | 20,020,239 | |||
Dividends payable | $ 1,025,369 | $ 837,798 | |||
Dividend interest rate | 5% | ||||
STB [Member] | |||||
Shares issued | 19,831,623 | ||||
Common stock, price per share | $ 2.05 | ||||
Common stock value | $ 40,654,827 | ||||
Series B-1, Convertible Preferred Stock | Tranche One [Member] | |||||
Dividend interest rate | 10% | ||||
Series B-1, Convertible Preferred Stock | Tranche Two [Member] | |||||
Shares issued | 5,389,028 | 5,389,028 | |||
Series B-1, Convertible Preferred Stock | Initial Tranche [Member] | |||||
Common Stock issued for asset purchase, amount | $ 350,000 | ||||
Shares issued | 2,694,514 | 2,694,514 | |||
Convertible Preferred Stock A [Member] | |||||
Preferred stock, shares issued | 0 | 0 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | 3 Months Ended |
Nov. 30, 2022 USD ($) $ / shares shares | |
SUBSEQUENT EVENTS | |
Net cash proceeds | $ 100,000 |
Purchase of warrants | $ / shares | $ 0.08 |
Common stock shares | shares | 1,470,588 |
Monthly rent | $ 20,000 |