Cover
Cover | 3 Months Ended |
Nov. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Nov. 30, 2021 |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --08-31 |
Entity Registrant Name | Engine Gaming and Media, Inc. |
Entity Central Index Key | 0001714562 |
Entity Address, Address Line One | 77 King Street West |
Entity Address, Address Line Two | Suite 3000 |
Entity Address, Address Line Three | PO Box 95 |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M5K 1G8 |
Interim Condensed Consolidated
Interim Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 |
Current | ||
Cash | $ 9,678,803 | $ 15,305,996 |
Restricted cash | 360,372 | 331,528 |
Accounts and other receivables | 10,061,734 | 8,646,807 |
Government remittances | 1,195,102 | 1,070,216 |
Publisher advance, current | 3,055,401 | 3,197,102 |
Prepaid expenses and other | 2,707,176 | 3,006,033 |
Total current assets | 27,058,588 | 31,557,682 |
Non-Current | ||
Publisher advance, non-current | 575,651 | 1,337,116 |
Investment at FVTPL | 2,629,851 | 2,629,851 |
Property and equipment | 389,104 | 403,811 |
Goodwill | 18,466,209 | 18,495,121 |
Intangible assets | 11,528,591 | 12,482,244 |
Right-of-use assets | 490,582 | 557,022 |
Total Non-Current | 34,079,988 | 35,905,165 |
Total assets | 61,138,576 | 67,462,847 |
Current | ||
Accounts payable | 9,610,276 | 10,403,665 |
Accrued liabilities | 8,568,864 | 5,722,470 |
Players liability account | 360,372 | 331,528 |
Deferred revenue | 1,759,166 | 2,644,948 |
Lease obligation, current | 198,663 | 222,583 |
Long-term debt, current | 69,507 | 96,664 |
Promissory notes payable | 753,652 | 821,948 |
Warrant liability | 1,851,311 | 4,868,703 |
Convertible debt, current | 2,557,504 | 914,427 |
Arbitration reserve | 3,728,278 | 6,468,330 |
Total current liabilities | 29,457,593 | 32,495,266 |
Convertible debt, non-current | 5,628,060 | 9,037,069 |
Lease obligation, non-current | 325,631 | 364,968 |
Non-current liabilities | 5,953,691 | 9,402,037 |
Total liabilities | 35,411,284 | 41,897,303 |
SHAREHOLDERS’ EQUITY (DEFICIENCY) | ||
Share capital | 123,422,989 | 122,741,230 |
Contributed surplus | 18,459,260 | 17,819,933 |
Foreign currency translation reserve | (2,154,607) | (2,324,025) |
Deficit | (114,168,493) | (112,814,973) |
Attributable to shareholders | 25,559,149 | 25,422,165 |
Non-controlling interest | 168,143 | 143,379 |
Total equity | 25,727,292 | 25,565,544 |
Total liabilities and equity | $ 61,138,576 | $ 67,462,847 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
REVENUE | ||
Net revenue | $ 14,349,478 | $ 7,466,391 |
EXPENSES | ||
Salaries and wages | 5,000,546 | 3,777,476 |
Consulting | 1,318,638 | 895,952 |
Professional fees | 738,793 | 685,852 |
Revenue sharing expense | 8,966,736 | 4,491,427 |
Sponsorships and tournaments | 449,086 | 364,229 |
Advertising and promotion | 512,365 | 859,826 |
Office and general | 1,589,803 | 705,819 |
Technology expenses | 731,071 | 580,854 |
Amortization and depreciation | 1,042,847 | 1,416,140 |
Share-based payments | 1,321,038 | 1,088,638 |
Interest expense | 214,608 | 408,089 |
Loss on foreign exchange | 166,251 | (37,249) |
Transaction costs | 7,119 | |
Non-operational professional fees | 974,447 | |
Arbitration settlement reserve | (2,740,052) | |
Change in fair value of warrant liability | (2,941,546) | (4,759,776) |
Change in fair value of convertible debt | (1,683,172) | 1,323,745 |
Total | 15,668,578 | 11,801,022 |
ASSOCIATES | ||
Share of net loss of associate | 66,686 | |
Net loss for the period before discontinued operations | (1,319,100) | (4,401,317) |
DISCONTINUED OPERATIONS | ||
Loss on disposal of Motorsports | (678,931) | |
Loss from discontinued operations | (9,656) | (950,215) |
Net loss for the period | (1,328,756) | (6,030,463) |
Net (income) loss attributable to non-controlling interest | (24,764) | 31,030 |
Net loss attributable to owners of the Company | (1,353,520) | (5,999,433) |
Items that may be reclassified subsequently to profit or loss | ||
Foreign currency translation differences | 169,418 | 133,845 |
Comprehensive loss for the period | $ (1,184,102) | $ (5,865,588) |
LOSS PER SHARE | ||
Basic loss per share - continuing operations | $ (0.09) | $ (0.57) |
Basic loss per share - discontinued operations | 0 | (0.21) |
Basic and diluted loss per share | $ (0.09) | $ (0.78) |
Weighted average number of shares outstanding - Basic | 15,565,638 | 7,699,907 |
Games development [member] | ||
REVENUE | ||
Net revenue | $ 2,102,126 | $ 499,955 |
Direct to Consumer [Member] | ||
REVENUE | ||
Net revenue | 32,850 | 49,832 |
Software as a Service [Member] | ||
REVENUE | ||
Net revenue | 2,080,710 | 1,436,997 |
Advertising [member] | ||
REVENUE | ||
Net revenue | 10,042,734 | 5,122,090 |
Professional Services [Member] | ||
REVENUE | ||
Net revenue | $ 91,058 | $ 357,517 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Shareholders' Equity (Deficiency) (Unaudited) - USD ($) | Issued capital [member] | Share to be Issued [member] | Contributed Surplus [Member] | Foreign Currency Translation Reserve [Member] | Retained earnings [member] | Total Equity Before Non Controlling Interest [Member] | Non-controlling interests [member] | Total |
Balance at Aug. 31, 2020 | $ 69,380,807 | $ 1,059,214 | $ 4,034,323 | $ (2,334,275) | $ (72,094,162) | $ 45,907 | $ 217,385 | $ 263,292 |
Balance, shares at Aug. 31, 2020 | 7,746,136 | |||||||
IfrsStatementLineItems [Line Items] | ||||||||
Share-based payments | 1,088,638 | 1,088,638 | 1,088,638 | |||||
Shares issued on vesting of RSUs | $ 410,189 | (230,189) | 180,000 | 180,000 | ||||
Shares issued on vesting of RSUs, shares | 66,666 | |||||||
Convertible debt conversion | $ 164,343 | 164,343 | 164,343 | |||||
Convertible debt conversion, shares | 36,666 | |||||||
Common shares issued on exercise of warrants | $ 56,079 | 56,079 | 56,079 | |||||
Common shares issued on exercise of warrants, shares | 7,166 | |||||||
Disposal of Motorsports | (1,059,214) | (1,059,214) | (1,059,214) | |||||
Non-controlling interest in subsidiary | (7,704) | (7,704) | (7,704) | |||||
Net loss for the period | (5,999,433) | (5,999,433) | (31,030) | (6,030,463) | ||||
Foreign currency translation differences | 133,845 | 133,845 | 133,845 | |||||
Balance at Nov. 30, 2020 | $ 70,011,418 | 4,885,068 | (2,200,430) | (78,093,595) | (5,397,539) | 186,355 | (5,211,184) | |
Balance, shares at Nov. 30, 2020 | 7,856,634 | |||||||
Balance at Aug. 31, 2021 | $ 122,741,230 | 17,819,933 | (2,324,025) | (112,814,973) | 25,422,165 | 143,379 | 25,565,544 | |
Balance, shares at Aug. 31, 2021 | 15,543,309 | |||||||
IfrsStatementLineItems [Line Items] | ||||||||
Share-based payments | 1,321,038 | 1,321,038 | 1,321,038 | |||||
Shares issued on vesting of RSUs | $ 681,759 | (681,759) | ||||||
Shares issued on vesting of RSUs, shares | 91,635 | 91,635 | ||||||
Non-controlling interest in subsidiary | 48 | 48 | $ 48 | |||||
Net loss for the period | (1,353,520) | (1,353,520) | 24,764 | (1,328,756) | ||||
Foreign currency translation differences | 169,418 | 169,418 | 169,418 | |||||
Balance at Nov. 30, 2021 | $ 123,422,989 | $ 18,459,260 | $ (2,154,607) | $ (114,168,493) | $ 25,559,149 | $ 168,143 | $ 25,727,292 | |
Balance, shares at Nov. 30, 2021 | 15,634,944 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net loss for the period before non-controlling interest | $ (1,328,756) | $ (6,030,463) |
Items not affecting cash: | ||
Amortization and depreciation | 1,042,847 | 1,617,475 |
Arbitration settlement reserve | (2,740,052) | |
Loss on disposal of Motorsports | 678,931 | |
Share of net loss of associate | 66,686 | |
Change in fair value of warrant liability | (2,941,546) | (4,759,776) |
Change in fair value of convertible debt | (1,683,172) | 1,323,745 |
Accretion of debt | 2,317 | 74,383 |
Share-based payments | 1,321,038 | 1,088,638 |
Total Adjustments | (6,327,324) | (5,940,381) |
Changes in non-cash working capital: | ||
Restricted cash | (28,844) | 47,676 |
Accounts and other receivables | (1,414,927) | (1,402,037) |
Government remittances | (124,886) | 79,392 |
Publisher advance | 903,166 | |
Prepaid expenses and other | 298,857 | 188,688 |
Accounts payable | (853,263) | (268,393) |
Accrued liabilities | 2,846,394 | 1,765,531 |
Players liability account | 28,844 | (47,676) |
Deferred revenue | (885,782) | 110,256 |
Changes in non-cash working capital | 769,559 | 473,437 |
Net cash used in operating activities | (5,557,765) | (5,466,944) |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (13,829) | (64,145) |
Acquisition of intangible assets | (11,797) | |
Cash from disposal of Motorsports | 24,348 | |
Net cash used in investing activities | (13,829) | (51,594) |
FINANCING ACTIVITIES | ||
Proceeds from convertible debentures | 4,901,393 | |
Net (payments) proceeds from promissory notes payable | (68,296) | (1,800,820) |
Proceeds from exercise of warrants | 44,675 | |
Payments on lease financing | (70,258) | (54,260) |
Payments on long-term debt | (25,486) | (80,744) |
Net cash provided by financing activities | (164,040) | 3,010,244 |
Impact of foreign exchange on cash | 108,441 | (8,421) |
Change in cash | (5,627,193) | (2,516,715) |
Cash and cash equivalents at beginning of period | 15,305,996 | 5,243,278 |
Cash and cash equivalents at end of period | $ 9,678,803 | $ 2,726,563 |
Corporate information and going
Corporate information and going concern | 3 Months Ended |
Nov. 30, 2021 | |
Corporate Information And Going Concern | |
Corporate information and going concern | 1. Corporate information and going concern (a) Corporate information Engine Gaming and Media Inc. (formerly Engine Media Holdings, Inc.) (“Engine” or the “Company”) was incorporated under the Business Corporations Act (Ontario) on April 8, 2011. The registered head office of the Company is 77 King St. West, Suite 3000, PO Box 95, TD Centre – North Tower, Toronto, Ontario, M5K 1G8, Canada. Pursuant to shareholder approval at the October 6, 2021, shareholders’ meeting, effective October 19, 2021, the Company changed its name to Engine Gaming and Media, Inc. The Company’s common shares trade on the TSX Venture Exchange under the trading symbol GAME.V and NASDAQ under the trading symbol GAME. The Company focuses on accelerating new, live, immersive esports and interactive gaming experiences for consumers through its partnerships with traditional and emerging media companies and providing online interactive technology and monetization services. (b) Going concern These interim condensed consolidated financial statements have been prepared on a going concern basis, which contemplates that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern, and therefore be required to realize its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying consolidated financial statements. Such adjustments could be material. It is not possible to predict whether the Company will be able to raise adequate financing or to ultimately attain profit levels of operations. The Company has not yet realized profitable operations and has incurred significant losses to date resulting in a cumulative deficit of $ 114,168,493 112,814,973 2,399,004 937,584 Note 3(b) These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern and, therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. |
Basis of preparation
Basis of preparation | 3 Months Ended |
Nov. 30, 2021 | |
Basis Of Preparation | |
Basis of preparation | 2. Basis of preparation (a) Statement of compliance These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These unaudited interim condensed consolidated financial statements are prepared on a basis consistent with the accounting policies disclosed in the audited consolidated financial statements for the fiscal year ended August 31, 2021; and should be read in conjunction with those audited consolidated financial statements. Interim results are not necessarily indicative of the results expected for the fiscal year. Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) These interim condensed consolidated financial statements were authorized for issuance by the Board of Directors of the Company on January 13, 2022. (b) Basis of consolidation The interim condensed consolidated financial statements comprise the accounts of the Company and its controlled subsidiaries. The financial statements of subsidiaries are included in the interim condensed consolidated financial statements from the date that control commences until the date that control ceases. Consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances. All transactions and balances between the Company and its subsidiaries are eliminated on consolidation, including unrealized gains and losses on transactions between companies. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Company’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. The Company’s material subsidiaries as of November 30, 2021, are as follows: Schedule of Material Subsidiaries Name of Subsidiary Country of Incorporation Ownership Percentage Functional Currency Frankly Inc. Canada 100% Canadian Dollar UMG Media Ltd. Canada 100% Canadian Dollar Eden Games S.A France 96% Euro Stream Hatchet S.L. Spain 100% Euro SideQik, Inc. USA 100% US Dollar WinView, Inc. USA 100% US Dollar Non-controlling interests are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) 2. Basis of preparation (cont’d) (c) Functional and presentation currency The functional currency of the Company is the US Dollar (“USD). The functional currencies of the Company’s subsidiaries are disclosed in Note 2(b) (d) Income taxes The Company had no |
Significant judgments, estimate
Significant judgments, estimates and assumptions | 3 Months Ended |
Nov. 30, 2021 | |
Significant Judgments Estimates And Assumptions | |
Significant judgments, estimates and assumptions | 3. Significant judgments, estimates and assumptions The preparation of these interim condensed consolidated financial statements requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the interim condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates primarily relate to unsettled transactions and events as at the date of the interim condensed consolidated financial statements. On an ongoing basis, management evaluates its judgments and estimates in relation to assets, liabilities, revenues, and expenses. Management uses historical experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgments and estimates. Actual outcomes may differ from these estimates under different assumptions and conditions. Significant estimates and judgments made by management in the preparation of these interim condensed consolidated financial statements are outlined below. The assessment of the Company’s ability to execute its strategy by funding future working capital requirements involves judgment. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There is a material uncertainty regarding the Company’s ability to continue as a going concern. Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) 3. Significant judgments, estimates and assumptions (cont’d) (a) Significant estimates and critical judgments Information about significant estimates and critical judgements in applying accounting policies that have the most significant effect on the amounts recognized in the interim condensed consolidated financial statements is included in the following notes: Note 1 Going concern; Note 25 Expected credit losses; Note 16 Valuation of warrant liability; Notes 9 and 10 Goodwill and intangible assets; Notes 18 and 19 Valuation of share-based payments; Note 15 Valuation of convertible debt; and Note 21 Contingencies. (b) Uncertainty about the effects of COVID-19 In December 2019, a novel strain of coronavirus (“COVID-19”) emerged and has since extensively impacted global health and the economic environment. To contain the spread of COVID-19, domestic and international governments around the world enacted various measures, including orders to close all businesses not deemed “essential,” quarantine orders for individuals to stay in their homes or places of residence, and to practice social distancing when engaging in essential activities. The Company anticipates that these actions and the global health crisis caused by COVID-19 will continue to negatively impact many business activities and financial markets across the globe. In an effort to protect the health and safety of our employees, much of the Company’s workforce is currently working from home. The Company has implemented business continuity plans and has increased support and resources to enable employees to work remotely and thus far has been able to operate with minimal disruption. The global COVID-19 pandemic remains an evolving situation. The Company will continue to actively monitor the developments of the pandemic and may take further actions that could alter business operations as may be required by federal, state, local, or foreign authorities, or that management determines are in the best interests of our employees, customers, partners, and shareholders. It is not clear what effects any such potential actions may have on the Company’s business, including the effects on our employees, players and consumers, customers, partners, development and content pipelines, the Company’s reputation, financial condition, results of operations, revenue, cash flows, liquidity, or stock price. |
Changes in significant accounti
Changes in significant accounting policies | 3 Months Ended |
Nov. 30, 2021 | |
Changes In Significant Accounting Policies | |
Changes in significant accounting policies | 4. Changes in significant accounting policies Future accounting pronouncements The following standards have not yet been adopted and are being evaluated to determine their impact on the Company: Amendments to IAS 37 – Onerous Contracts – Cost of Fulfilling a Contract; Amendments to IAS 16 – Property, Plant and Equipment: Proceeds before Intended Use Amendments to IFRS 3 – Reference to the Conceptual Framework Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or the Company is still assessing what the impact will be to the Company’s financial statements. |
Net income (loss) per share
Net income (loss) per share | 3 Months Ended |
Nov. 30, 2021 | |
Profit or loss [abstract] | |
Net income (loss) per share | 5. Net income (loss) per share Basic net income (loss) per share is calculated using the weighted-average number of common shares outstanding during each period. Diluted net income (loss) per share assumes the conversion, exercise, or issuance of all potential common share equivalents unless the effect is to reduce the loss or increase the income per share. For purposes of this calculation, stock options, warrants and RSU’s are potential common shares and are only included in the calculation of diluted net income (loss) per share when their effect is dilutive. Due to the net loss incurred during the three months ended November 30, 2021, and 2020, all outstanding options, restricted share units and warrants were excluded from diluted weighted-average common shares outstanding as their effect was anti-dilutive. Weighted average common shares outstanding for the three months ended November 30, 2021, and 2020 were 15,565,638 7,699,907 |
Accounts, other receivables, an
Accounts, other receivables, and customer advance | 3 Months Ended |
Nov. 30, 2021 | |
Accounts Other Receivables And Customer Advance | |
Accounts, other receivables, and customer advance | 6. Accounts, other receivables, and customer advance (a) Accounts and other receivables The Company’s accounts and other receivables are comprised of the following: Schedule of Accounts and Other Receivables November 30, August 31, $ $ Trade accounts receivable 11,096,122 9,677,725 Other receivables 49,917 53,387 Allowance for doubtful accounts (1,084,305 ) (1,084,305 ) Total accounts and other receivables 10,061,734 8,646,807 A continuity of the Company’s allowance for doubtful accounts is as follows: Schedule of Allowance for Doubtful Accounts November 30, August 31, $ $ Allowance for doubtful accounts, August 31 (1,084,305 ) (874,438 ) Acquisition of SideQik - (140,896 ) Provision, bad debt expense - (72,636 ) Writeoffs - 3,665 Allowance for doubtful accounts, November 30 (1,084,305 ) (1,084,305 ) Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) (b) Publisher advance On February 7, 2021, the Company’s subsidiary Frankly Media LLC, amended its commercial agreement with its largest publisher, which secured a long-term extension. The contract is expected to go through early calendar year 2023. One of the key terms of the amended agreement required the Company to advance $ 6 (i) $ 4 (ii) $ 1 (iii) $ 1 The advance is to be recouped through additional withholding on future advertising revenue share payments made to the publisher, beyond Frankly’s share, and is effective for amounts billed for periods February 1, 2021, forward. As of November 30, 2021, $ 6 2,368,948 3,631,052 The breakout of the publisher advance into current and non-current portions is based on an estimate of advertising billings over the next twelve months and the resulting additional withholding on the related advertising revenue share payments. |
Investment at FVTPL
Investment at FVTPL | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure of detailed information about investment property [abstract] | |
Investment at FVTPL | 7. Investment at FVTPL On August 25, 2020, the Company acquired a 20.48% The Company accounted for this investment as an investment in associate under the equity method from acquisition through January 5, 2021. The Company’s share in the loss of One Up for the period from September 1, 2020, to January 5, 2021, amounted to $ 103,930 On January 5, 2021, the Company’s interest in One Up was reduced to 18.62% 99,961 The fair value of the Company’s investment in One Up is estimated at each reporting period, with reference to valuations underlying privately placed financing transactions closed by One Up and is classified with a level 3 in the fair value hierarchy (Note 25) 2,629,851 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) |
Property and equipment
Property and equipment | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property and equipment | 8. Property and equipment Disclosure of Detailed Information About Property Plant and Equipment Cost Leasehold Computer equipment Furniture Total $ $ $ $ August 31, 2020 221,653 486,340 173,091 881,084 Additions - 64,145 - 64,145 Disposal of Motorsports (2,631 ) (47,645 ) (18,118 ) (68,394 ) Effect of foreign exchange (49 ) (432 ) (382 ) (863 ) November 30, 2020 218,973 502,408 154,591 875,972 August 31, 2021 218,851 603,607 173,044 995,502 Property and equipment, cost, beginning balance 218,851 603,607 173,044 995,502 Additions - 13,829 - 13,829 Foreign exchange (398 ) 776 (2,467 ) (2,089 ) November 30, 2021 218,453 618,212 170,577 1,007,242 Property and equipment, cost, ending balance 218,453 618,212 170,577 1,007,242 Accumulated depreciation Leasehold Computer equipment Furniture Total $ $ $ $ August 31, 2020 57,517 307,508 106,670 471,695 Depreciation (120 ) 15,634 1,772 17,286 Disposal of Motorsports - (11,068 ) (9,910 ) (20,978 ) Foreign exchange 10 425 (224 ) 211 November 30, 2020 57,407 312,499 98,308 468,214 August 31, 2021 63,367 406,231 122,093 591,691 Accumulated depreciation, beginning balance 63,367 406,231 122,093 591,691 Depreciation 1,743 22,953 4,222 28,918 Foreign exchange (258 ) (2,160 ) (53 ) (2,471 ) November 30, 2021 64,852 427,024 126,262 618,138 Accumulated depreciation, ending balance 64,852 427,024 126,262 618,138 Net book value Leasehold Computer equipment Furniture Total $ $ $ $ August 31, 2021 155,484 197,376 50,951 403,811 November 30, 2021 153,601 191,188 44,315 389,104 Property and equipment, net book value 153,601 191,188 44,315 389,104 |
Goodwill
Goodwill | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure Of Detailed Information About Goodwil | |
Goodwill | 9. Goodwill Disclosure of Detailed Information About Goodwil 2021 2020 $ $ Balance, August 31, 18,495,121 18,785,807 Effect of foreign exchange (28,912 ) 26,903 Balance, November 30, 18,466,209 18,812,710 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) |
Intangible assets
Intangible assets | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible assets | 10. Intangible assets A continuity of the Company’s accumulated impairment losses for intangibles is as follows: Disclosure of Detailed Information About Intangible Assets Cost Patents Application Platforms Software Brand Customer Total $ $ $ $ $ $ August 31, 2020 9,430,265 1,322,802 10,763,975 2,310,475 3,671,954 27,499,471 Disposal of Motorsports - - (3,598,869 ) (201,627 ) (222,650 ) (4,023,146 ) Foreign exchange and other - 20,516 322,019 101,056 14,663 458,254 November 30, 2020 9,430,265 1,343,318 7,487,125 2,209,904 3,463,967 23,934,579 August 31, 2021 9,430,265 1,073,045 8,330,683 2,137,449 3,624,300 24,595,742 Intangible Assets, Balance 9,430,265 1,073,045 8,330,683 2,137,449 3,624,300 24,595,742 Foreign exchange and other - (11,723 ) (219,879 ) (63,862 ) (11,917 ) (307,381 ) November 30, 2021 9,430,265 1,061,322 8,110,804 2,073,587 3,612,383 24,288,361 Intangible Assets, Balance 9,430,265 1,061,322 8,110,804 2,073,587 3,612,383 24,288,361 Accumulated amortization Patents Application Platforms Software Brand Customer Total $ $ $ $ $ $ August 31, 2020 628,684 793,041 4,909,000 1,077,491 648,933 8,057,149 Amortization 471,513 51,594 779,385 122,746 145,910 1,571,148 Disposal of Motorsports - - (532,412 ) (201,627 ) (222,650 ) (956,689 ) Foreign exchange - 17,427 301,761 49,090 (69,603 ) 298,675 November 30, 2020 1,100,197 862,062 5,457,734 1,047,700 502,590 8,970,283 August 31, 2021 2,514,737 966,444 6,340,302 1,375,647 916,368 12,113,498 Intangible Assets, Amortization, Balance 2,514,737 966,444 6,340,302 1,375,647 916,368 12,113,498 Amortization 471,513 28,000 212,167 101,666 135,615 948,961 Foreign exchange - (11,723 ) (219,879 ) (46,975 ) (24,112 ) (302,689 ) November 30, 2021 2,986,250 982,721 6,332,590 1,430,338 1,027,871 12,759,770 Intangible Assets, Amortization, Balance 2,986,250 982,721 6,332,590 1,430,338 1,027,871 12,759,770 Net book value Patents Application Platforms Software Brand Customer Total $ $ $ $ $ $ August 31, 2021 6,915,528 106,601 1,990,381 761,802 2,707,932 12,482,244 November 30, 2021 6,444,015 78,601 1,778,214 643,249 2,584,512 11,528,591 Intangible assets other than goodwil 6,444,015 78,601 1,778,214 643,249 2,584,512 11,528,591 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) |
Right-of-use assets
Right-of-use assets | 3 Months Ended |
Nov. 30, 2021 | |
Right-of-use Assets | |
Right-of-use assets | 11. Right-of-use assets Disclosure of Detailed Information about Right-of-Use Assets 2021 2020 $ $ Balance, August 31, 557,022 550,478 Acquired - - Depreciation (64,968 ) (29,041 ) Effect of foreign exchange (1,472 ) (58 ) Balance, November 30, 490,582 521,379 Right of use assets consist primarily of leases for corporate office facilities and are amortized monthly over the term of the lease, or useful life, if shorter. |
Lease liabilities
Lease liabilities | 3 Months Ended |
Nov. 30, 2021 | |
Lease Liabilities | |
Lease liabilities | 12. Lease liabilities Lease liabilities are measured at the present value of the lease payments that were not paid at that date. The lease payments are discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. The continuity of the lease liabilities is presented in the table below: Disclosure of Detailed Information About Continuity of the Lease Liabilities Equipment Office lease Total $ $ $ Balance, August 31, 2020 35,457 536,691 572,148 Interest expense 562 9,094 9,656 Payments (3,345 ) (50,915 ) (54,260 ) Effect of foreign exchange - (36 ) (36 ) Balance, November 30, 2020 32,674 494,834 527,508 Balance, August 31, 2021 24,048 563,503 587,551 Interest expense 375 8,266 8,641 Payments (3,345 ) (66,913 ) (70,258 ) Effect of foreign exchange - (1,640 ) (1,640 ) Balance, November 30, 2021 21,078 503,216 524,294 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) The Company’s lease obligation is classified between current and non-current liabilities as follows: Equipment Office lease Total $ $ $ As of November 30, 2020: Less than one year 11,595 178,279 189,874 Greater than one year 21,079 316,555 337,634 Total lease obligation 32,674 494,834 527,508 Equipment Office lease Total $ $ $ As of November 30, 2021: Less than one year 12,373 186,290 198,663 Greater than one year 8,705 316,926 325,631 Total lease obligation 21,078 503,216 524,294 The future minimum undiscounted lease payments as of November 30, 2021, are presented below: Disclosure of Detailed Information About Future Minimum Undiscounted Lease Payments Total $ Current 221,334 2 years 177,301 3 years 141,342 4 years 29,797 Total undiscounted lease obligation 569,774 |
Players liability account
Players liability account | 3 Months Ended |
Nov. 30, 2021 | |
Players Liability Account | |
Players liability account | 13. Players liability account The Players liability account consists of UMG and Winview cash deposited by players, plus any prize winnings, less any fees for match game play and withdrawal requests processed to date. As of November 30, 2021, the players liability account balance is the total amount payable if all players were to request closure of their accounts. As of November 30, 2021, the players account liability and corresponding restricted cash balances were the same. |
Promissory notes payable and ot
Promissory notes payable and other borrowings | 3 Months Ended |
Nov. 30, 2021 | |
Promissory Notes Payable And Other Borrowings | |
Promissory notes payable and other borrowings | 14. Promissory notes payable and other borrowings (a) Promissory notes The Company has promissory notes with a balance of $ 200,000 200,000 18% 154,721 139,644 The Company, through its WinView subsidiary, has a secured promissory note outstanding for amounts due for the provision of services by the noteholder. As of November 30, 2021, $ 398,931 4,823,042 8% (b) Paycheck Protection Program (the “PPP”) loans During April and May 2020, the Company entered into promissory notes (the “Notes”) with three banks. The Notes evidence loans to the Company of $ 1,589,559 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) Interest will accrue on the outstanding balance of the Notes at a rate of 1.00% Subject to any forgiveness granted under the PPP, the Notes are scheduled to mature in April 2022 and require 18 equal monthly payments of principal and interest beginning November 2020. Upon the receipt of the proceeds of $ 1,589,559 1,589,559 209,875 |
Convertible debt
Convertible debt | 3 Months Ended |
Nov. 30, 2021 | |
Convertible Debt | |
Convertible debt | 15. Convertible debt The continuity of convertible debt for the three months ended November 30, 2021, and 2020, is as follows: Disclosure of Detailed Information About Continuity of Convertible Debt 2019 2020 Total $ $ $ Balance, August 31, 2020 2,121,869 8,671,590 10,793,459 Issuances - 4,282,477 4,282,477 Conversion - common shares issued (164,343 ) - (164,343 ) Conversion - warrants issued (140,880 ) - (140,880 ) Interest expense 19,001 137,775 156,776 Accrued interest on conversion (14,792 ) - (14,792 ) Effect of foreign exchange 17,152 - 17,152 Change in fair value 370,969 952,776 1,323,745 Balance, November 30, 2020 2,208,976 14,044,618 16,253,594 2019 2020 EB CD Total $ $ $ $ Balance, August 31, 2021 914,428 2,097,127 6,939,941 9,951,496 Total convertible debt obligation beginning balance 914,428 2,097,127 6,939,941 9,951,496 Interest expense 6,622 49,863 125,000 181,485 Accrued interest on conversion / interest payments - - (250,000 ) (250,000 ) Effect of foreign exchange (14,245 ) - - (14,245 ) Change in fair value (292,982 ) (203,308 ) (1,186,882 ) (1,683,172 ) Balance, November 30, 2021 613,823 1,943,682 5,628,059 8,185,564 2019 2020 EB CD Total $ $ $ $ As of November 30, 2021: Less than one year 613,823 1,943,682 - 2,557,505 Greater than one year - - 5,628,059 5,628,059 Total convertible debt obligation 613,823 1,943,682 5,628,059 8,185,564 Total convertible debt obligation ending balance 613,823 1,943,682 5,628,059 8,185,564 (a) 2019 Series As of November 30, 2021, the fair value of the 2019 Series convertible debentures was estimated using the binomial lattice model with the below assumptions: Disclosure of Detailed Information About Fair Value of Convertible Debentures 2019 Series November 30, August 31, Share price 4.93 8.42 Conversion price 7.50 7.50 Warrant exercise price 7.50 7.50 Term, in years .60 .69 .85 .94 Interest rate 6 % 6 % Expected volatility 85.00 % 90.00 % Risk-free interest rate 0.43 0.50 % 0.25 0.26 % Exchange rate 0.7817 0.7947 Expected dividend yield 0 % 0 % Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) (b) 2020 Series The 2020 Series debentures will mature twenty-four (24) months 5% The interest rate under the 2020 Series debentures will increase from 5% 10% The 2020 Series debenture holders may convert all or a portion of the principal amount of the debentures into units (“Units”) of the Company at a price (the “Conversion Price”) equal to the lesser of (a) $ 11.25 15% 7.50 Notwithstanding the foregoing, if by December 19, 2020, the Company has not obtained registration rights in the United States to allow sale in the United States of the common shares (“Common Shares”) of the Company and the exercise of warrants (the “Warrants”) of the Company to be issued pursuant to the conversion of the 2020 Series debentures, holders of 2020 Series debentures may convert such debentures into Units at $ 7.50 Each Unit is comprised of one common share and one-half of one Warrant, with each Warrant exercisable into one common share of the Company at an exercise price of $ 15.00 30.00 In the event that the Company’s common shares are listed for trading on the NASDAQ Capital Market and the Company completes a Public Offering for an aggregate amount of at least US$ 30,000,000 (c) 2020 Series - One Up These convertible debentures (the “2020 Series One Up” debentures) have identical terms as the 2020 Series debentures except that the minimum conversion price of $ 7.50 9.50 3,078,550 (d) 2020 Series – Standby In September 2020, the Company entered into an $ 8,000,000 7.50 8.90 224,719 2,000,000 15.00 two years The proceeds of $ 2,000,000 1,381,084 618,916 224,719 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) The remaining $ 6,000,000 As of November 30, 2021, the fair value of the 2020 Series convertible debentures was estimated using the binomial lattice model with the below assumptions: Disclosure of Detailed Information About Fair Value of Convertible Debentures 2020 Series November 30, August 31, Share price 3.85 6.66 Conversion price 8.90 8.90 Warrant exercise price - - Term, in years 1.26 1.26 Interest rate 10 % 10 % Expected volatility 85.00 % 90.00 % Risk-free interest rate 0.23 % 0.10 % Expected dividend yield 0 % 0 % (e) EB CD On February 24, 2021, the Company extinguished the Amended EB Loan and issued the Lender a secured convertible debenture in the principal amount of $ 5 10.25 15.00 three years Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) As of November 30, 2021, the fair value of the EB CD convertible debenture was estimated using the binomial lattice model with the below assumptions: Disclosure of Detailed Information About Fair Value of Convertible Debentures EB CD November 30, August 31, Share price 3.85 6.66 Conversion price 10.25 10.25 Warrant exercise price 15.00 15.00 Term, in years 2.24 1.26 Interest rate 10 % 10 % Expected volatility 85.00 % 90.00 % Risk-free interest rate 0.59 % 0.30 % Expected dividend yield 0 % 0 % Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) (f) Fair value The following table gives information about how the fair values of these financial liabilities are determined (in particular, the valuation technique and key inputs used). Disclosure of Key Inputs of Convertible Debt Financial assets / financial liabilities Valuation technique Key Inputs Relationship and sensitivity of unobservable inputs to fair value to fair value Convertible debt The fair value of the convertible debentures as of November 30, 2021 has been calculated using a binomial lattice methodology. Key observable inputs The estimated fair value would increase (decrease) if: Share price CAD $ 4.93 3.85 The share price was higher (lower) Risk-free interest rate ( 0.23% 0.59% The risk-free interest rate was higher (lower) Dividend yield ( 0% The dividend yield was lower (higher) Key unobservable inputs Credit spread ( 7.69% 9.88% The credit spread was lower (higher) Discount for lack of marketability ( 0% The discount for lack of marketability was lower (higher) Convertible debt The fair value of the convertible debentures as of August 31, 2021 has been calculated using a binomial lattice methodology. Key observable inputs The estimated fair value would increase (decrease) if: Share price CAD$ 8.42 6.66 The share price was higher (lower) Risk-free interest rate ( 0.10% 0.30% The risk-free interest rate was higher (lower) Dividend yield ( 0% The dividend yield was lower (higher) Key unobservable inputs Credit spread ( 1.14% 8.45% The credit spread was lower (higher) Discount for lack of marketability ( 0% The discount for lack of marketability was lower (higher) Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) |
Warrant liability
Warrant liability | 3 Months Ended |
Nov. 30, 2021 | |
Warrant Liability | |
Warrant liability | 16. Warrant liability Liability measured warrants having CAD exercise price The following tables reflect the continuity of the Company’s liability measured warrants for the three months ended November 30, 2021, and 2020: Schedule of Measured Warrants Amount $ Balance at August 31, 2020 14,135,321 Issued on conversion of convertible debt 140,880 Issued in private convertible debt 618,916 Exercised (11,404 ) Change in fair value (4,759,776 ) Foreign exchange 122,209 Balance, November 30, 2020 10,246,146 Amount $ Balance at August 31, 2021 4,868,703 Beginning Balance 4,868,703 Change in fair value (2,941,546 ) Foreign exchange (75,846 ) Balance, November 30, 2021 1,851,311 Ending Balance 1,851,311 Schedule of Outstanding Warrants Number of warrants Weighted-average exercise price # $ Outstanding, August 31, 2020 2,405,369 9.60 Issued on conversion of convertible debt 36,666 7.50 Issued in private placement of convertible debentures 224,719 19.45 Exercised (7,166 ) 8.28 Expired (430 ) 153.81 Outstanding as at November 30, 2020 2,659,158 10.39 Weighted-average Number of exercise price warrants CAD # $ Outstanding, August 31, 2021 1,452,843 8.96 Issued in private placement of convertible debentures - - Outstanding as at November 30, 2021 1,452,843 8.96 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) Schedule of Warrants Issued and Outstanding The following table reflects the liability measured warrants issued and outstanding as of November 30, 2021: Warrants outstanding Expiry date Number Average Average remaining contractual March 13, 2022 123,159 10.50 0.28 December 20, 2022 29,066 27.00 1.05 March 20, 2023 27,777 13.50 1.30 March 30, 2023 46,909 13.50 1.33 March 31, 2023 17,222 13.50 1.33 May 27, 2023 130,304 13.50 1.49 July 8, 2024 445,982 7.50 2.61 July 25, 2024 401,624 7.50 2.65 August 8, 2024 230,800 7.50 2.69 1,452,843 $ 8.96 2.22 As at November 30, 2021, the fair value of the 1,452,843 1,452,843 1,851,311 4,868,703 0.28 2.69 0.53 2.94 4.93 8.42 7.50 27.00 7.50 27.00 70% 85% 70% 90% 0.76% 1.22% 0.28% 0.63% 0% Equity measured warrants having USD exercise price The Company’s 3,736,396 15 The following table reflects the equity measured warrants issued and outstanding as of November 30, 2021: Warrants outstanding Expiry date Number outstanding Average Average remaining contractual November 20, 2022 224,719 15.00 0.97 January 8, 2024 1,868,787 15.00 2.11 January 22, 2024 522,898 15.00 2.15 February 24, 2024 1,058,227 15.00 2.24 August 19, 2024 49,999 15.00 2.72 September 15, 2024 11,666 15.00 2.79 3,736,296 $ 15.00 2.09 If all equity measured warrants outstanding and exercisable as of November 30, 2021, were exercised, the Company would receive cash from exercise of approximately $ 56.0 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) |
Share capital
Share capital | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure of classes of share capital [abstract] | |
Share capital | 17. Share capital (a) Authorized The Company is authorized to issue an unlimited number of common shares and an unlimited number of preference shares. (b) Issued and outstanding, common shares Schedule of Shares Issued and Outstanding Shares Consideration # $ Balance, August 31, 2020 7,746,136 69,380,807 Shares issued on vesting of RSUs 66,666 410,189 Convertible debt conversion 36,666 164,343 Common shares issued on exercise of warrants 7,166 56,079 Balance, November 30, 2020 7,856,634 70,011,418 Shares Consideration # $ Balance, August 31, 2021 15,543,309 122,741,230 Shares issued on vesting of RSUs 91,635 681,759 Balance, November 30, 2021 15,634,944 123,422,989 (c) Activity for the period During the three months ended November 30, 2021, the Company issued 91,635 |
Stock options
Stock options | 3 Months Ended |
Nov. 30, 2021 | |
Stock Options | |
Stock options | 18. Stock options On October 6, 2021, the Company adopted an amended and restated equity incentive plan (“Omnibus Plan”), which amends and restates the equity incentive plan which was previously established as of July 15, 2020. Under the amendments, there were no changes in the terms of previously issued awards. Under the Omnibus Plan, the total number of common shares reserved and available for grant and issuance pursuant to stock options shall not exceed 10 Options may be exercisable over periods of up to 10 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) The following table reflects the continuity of stock options for the three months ended November 30, 2021, and 2020: Disclosure of Detailed Information About Number and Weighted Average Exercise Prices of Share Options Weighted-average Number of Exercise Grant-date Remaining # $ $ (yrs.) Balance, August 31, 2020 253,121 12.73 4.39 4.31 Expired/Cancelled (2,353 ) 112.73 29.40 Balance, November 30, 2020 250,768 11.79 4.43 4.06 Balance, August 31, 2021 692,938 11.64 7.06 4.46 Granted 10,000 9.82 2.92 Issued on exercise of options - - - Expired/Cancelled - - - Balance, November 30, 2021 702,938 11.61 7.00 4.30 Exercisable as at November 30, 2021 181,936 12.10 4.36 2.43 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) The following tables reflect the stock options issued and outstanding as of November 30, 2021: Disclosure of Detailed Information About Options Issued and Outstanding Outstanding Weighted average exercise price Weighted average remaining contractual term Expiry date options CAD USD (Years) December 10, 2021 1,564 93.30 71.84 0.03 June 30, 2022 4,428 153.45 118.15 0.58 April 1, 2023 84,165 11.25 7.91 1.33 October 31, 2023 64,997 11.25 7.91 1.92 January 29, 2025 46 106.50 76.43 3.17 August 25, 2025 340 106.50 76.43 3.74 September 23, 2025 11 106.50 76.43 3.82 February 10, 2026 1,443 106.50 76.43 4.20 May 19, 2026 4 106.50 76.43 4.47 May 23, 2026 9 106.50 76.43 4.48 June 24, 2026 375,188 15.04 12.21 4.57 July 1, 2026 10,000 14.87 12.00 4.59 July 2, 2026 57,762 15.08 12.21 4.59 August 20, 2026 32,500 7.78 6.05 4.72 March 3, 2027 1,256 106.50 76.43 5.26 July 31, 2027 159 106.50 76.43 5.67 November 3, 2027 133 106.50 76.43 5.93 November 7, 2029 46,251 7.50 5.38 7.94 April 20, 2030 666 7.05 5.06 8.39 December 2, 2030 1,333 9.50 7.38 9.01 June 14, 2031 10,683 14.20 11.69 9.54 November 23, 2031 10,000 12.45 9.82 9.99 702,938 14.82 11.61 4.30 Of the 702,938 692,938 181,936 209,950 841,712 49,054 |
Restricted share units
Restricted share units | 3 Months Ended |
Nov. 30, 2021 | |
Restricted Share Units | |
Restricted share units | 19. Restricted share units The Omnibus Plan allows the Company to award restricted share units to officers, employees, directors and consultants of the Company and its subsidiaries upon such conditions as the Board may establish, including the attainment of performance goals recommended by the Company’s compensation committee. The purchase price for common shares of the Company issuable under each Restricted Share Unit (“RSU”) award, if any, shall be established by the Board at its discretion. Common shares issued pursuant to any RSU award may be made subject to vesting conditions based upon the satisfaction of service requirements, conditions, restrictions, time periods or performance goals established by the board. The TSXV requires the Company to fix the number of common shares to be issued in settlement of awards that are not options. The maximum number of common shares available for issuance pursuant to the settlement of RSUs shall be an aggregate of 1,548,174 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) The Company’s outstanding RSUs are as follows: Disclosure of Detailed Information About Restricted Stock Units Outstanding Number # Balance, August 31, 2020 402,372 Granted 322,547 Vested (66,666 ) Cancelled - Balance, November 30, 2020 658,253 Balance, August 31, 2021 490,174 Granted 100,626 Vested (91,635 ) Cancelled (5,034 ) Balance, November 30, 2021 494,131 In October 2021, the Company granted 100,626 During the three months ended November 30, 2021, share-based compensation expense for the Company’s RSUs was $ 479,326 1,039,584 |
Capital management
Capital management | 3 Months Ended |
Nov. 30, 2021 | |
Capital Management | |
Capital management | 20. Capital management The Company considers its capital to be its shareholders’ equity. As of November 30, 2021, the Company had shareholders’ equity (deficit) before non-controlling interests of $ 25,559,149 25,422,165 The Company may also return capital to shareholders through the repurchase of shares, pay dividends or reduce debt where it determines any of these to be an effective method of achieving the above objective. The Company does not use ratios in the management of its capital. There have been no changes to management’s approach to managing its capital during the three months ended November 30, 2021, and 2020. Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Nov. 30, 2021 | |
Commitments And Contingencies | |
Commitments and contingencies | 21. Commitments and contingencies Litigation and arbitration In April 2020, the Company announced its renegotiation of the acquisition of Allinsports. The revised purchase agreement provided for the acquisition of 100 966,667 1,200,000 In response, in November 2020, the shareholders of Allinsports commenced arbitration in Alberta, Canada seeking, among other things, to compel the Company to complete the acquisition of Allinsports without the audited financial statements, and to issue 966,667 20,000,000 2,625,657 966,667 3,728,278 Separately, in April of 2021, the Company received a copy of a complaint filed by 3CI Holdings, LLP in the Circuit Court for the 11th Judicial Circuit for Miami-Dade naming Allinsports, A1 Simulation LLC (an entity purported to be a subsidiary of Allinsports), and the Company, seeking to hold the parties, including Company, responsible for unpaid rent under a lease agreement between 3CI’s predecessors in interest and A1 Simulation, and seeking damages of at least $ 2,890,000 On January 21, 2021, eight former shareholders of Winview filed a Complaint in Delaware Chancery Court against four Winview directors (David Lockton, et al. v. Thomas S. Rogers, et al.) alleging that the defendants breached their fiduciary duties in connection with the sale of Winview to Engine. The relief sought includes rescission of the sale of Winview to Engine and compensatory damages. The defendants have filed a motion to dismiss the claims, which is pending. Neither the Company nor Winview have been named as parties to this action. Under the March 9, 2020, Business Combination Agreement pursuant to which the Company acquired Winview, the Company agreed to indemnify Winview’s directors for any claims arising out of their service as directors for Winview. In July of 2021, Winview Inc. filed separate patent infringement lawsuits against DraftKings Inc. and FanDuel, Inc in the United States District Court for the District of New Jersey, alleging that Sportsbook and Daily Fantasy Sports offerings of DraftKings and FanDuel infringe four of Winview’s patents. These actions seek the recovery of damages and other appropriate relief. Draft Kings and FanDuel have filed motions to dismiss, which are pending. While potential damages may be significant if these lawsuits are wholly or partially successful, at this time the Company cannot predict the outcome of the suits or determine the extent of potential damages if they are successful in whole or in part. The outcomes of pending litigations in which the Company is involved are necessarily uncertain as are the Company’s expenses in prosecuting and defending these actions. From time to time the Company may modify litigation strategy and/or the terms on which it retains counsel and other professionals in connection with such actions, which may affect the outcomes of and/or the expenses incurred in connection with such actions. Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) The Company is subject to various other claims, lawsuits and other complaints arising in the ordinary course of business. The Company records provisions for losses when claims become probable, and the amounts are estimable. Although the outcome of such matters cannot be determined, it is the opinion of management that the final resolution of these matters will not have a material adverse effect on the Company’s financial condition, operations, or liquidity. |
Discontinued operations
Discontinued operations | 3 Months Ended |
Nov. 30, 2021 | |
Discontinued Operations | |
Discontinued operations | 22. Discontinued operations On November 3, 2020, the Company, following a detailed strategic review in connection with the merger of Torque Esports, Frankly and WinView, announced that it has completed the sale of IDEAS+CARS, The Race Media, WTF1, Driver DataDB and Lets Go Racing (collectively the “Motorsport Group”) to Ideas + Cars Holdings Limited, a third party investment group based in the UK. As a result, the Company is eliminating its funding obligations related to the cost of maintaining and growing these auto media businesses and certain accrued liabilities. Accordingly, the operational results for this group have been presented as a discontinued operation. Consideration transferred for the Motorsport Group was as follows: Schedule of Loss on Disposal Amount $ Consideration received or receivable: Accounts payable assumed 101,322 Deferred purchase consideration of LGR 333,503 Fair value of contingent consideration 1,321,281 Total disposal consideration 1,756,106 Carrying amount of net assets sold (2,334,303 ) Loss on disposal before income tax and reclassification of foreign currency translation reserve (578,197 ) Reclassification of foreign currency translation reserve (100,734 ) Loss on disposal of Motorsports (678,931 ) Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) The net assets of the Motorsport Group as at the date of sale were as follows: Disclosure of Net Asset Amount $ Carrying amounts of assets as at the date of sale: Cash and cash equivalents (24,348 ) Accounts and other receivables 126,590 Government remittances 25,095 Prepaid expenses and other 24,113 Property and equipment 47,416 Intangible assets 3,066,457 Total assets of disposal group 3,265,323 Carrying amount of liabilities directly associated with assets as at the date of sale: Accounts payable 508,881 Accrued liabilities 422,139 Total liabilities of disposal group 931,020 Net assets of disposal group 2,334,303 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) The operating results and net cash flows of the Motorsports Group for the three months ended November 30, 2021, and 2020 are presented as discontinued operations as follows: Schedule of Discontinued Operations Nov 30, 2021 Nov 30, 2020 For the three months ended Nov 30, 2021 Nov 30, 2020 $ $ Revenues Advertising revenue - 90,934 Operating expenses Salaries and wages - 212,546 Consulting - 267,933 Professional fees - 22,681 Sponsorships and tournaments - 203,637 Advertising and promotion - 1,740 Office and general - 7,374 Technology expenses - 86,590 Amortization and depreciation - 201,335 Interest expense - 572 (Gain) loss on foreign exchange 9,656 36,741 Net loss from discontinued operations (9,656 ) (950,215 ) |
Segmented information
Segmented information | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure of operating segments [abstract] | |
Segmented information | 23. Segmented information Information reported to the Company’s Chief Executive Officer, the Chief Operating Decision Maker (“CODM”), for the purposes of resource allocation and assessment of segment performance is focused on the category of services for each type of activity. The principal categories of services are E-Sports, Media and Advertising, and Corporate and Other. The Group’s reportable segments under IFRS 8 are therefore as follows: Gaming - Services related to competitive organized video gaming or sporting events; Media - Platform and advertising services provided to other broadcasters, primarily local TV and radio broadcasters; Corporate and Other - Services provided to other businesses and other revenues; The Corporate and Other segment primarily consists of support costs not allocated to the two other segments. Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) The following is an analysis of the Company’s revenue and results by reportable segment for the three months ended November 30, 2021: Schedule of Segment Reporting Gaming Media Corporate Total $ $ $ $ Revenue External sales 2,537,394 11,812,084 - 14,349,478 Results Segment loss (2,511,025 ) (1,981,915 ) - (4,492,940 ) Central administration costs - - 2,828,505 2,828,505 Other gains and losses 1,006,452 (1,643 ) (7,221,762 ) (6,216,953 ) Finance costs 17,357 375 196,876 214,608 Income (loss) before tax (3,534,834 ) (1,980,647 ) 4,196,381 (1,319,100 ) Income tax - - - - Gain (Loss) for the year from: Share of net loss of associate - - (66,686 ) (66,686 ) Discontinued operations (9,656 ) - - (9,656 ) Non-controlling interest in net loss - - (24,764 ) (24,764 ) Net income (loss) (3,544,490 ) (1,980,647 ) 4,171,617 (1,353,520 ) The following is an analysis of the Company’s revenue and results by reportable segment for the three months ended November 30, 2020: Gaming Media Corporate Total $ $ $ $ Revenue External sales 762,941 6,703,450 - 7,466,391 Results Segment loss (2,697,438 ) (1,392,595 ) - (4,090,033 ) Central administration costs - - 3,309,789 3,309,789 Other gains and losses (2,352 ) (3,693 ) (3,467,235 ) (3,473,280 ) Finance costs 59,571 186,990 161,528 408,089 Loss before tax (2,754,657 ) (1,575,892 ) (4,082 ) (4,334,631 ) Income tax - - - - Gain (Loss) for the year from: Share of net loss of associate - - (66,686 ) (66,686 ) Discontinued operations (950,215 ) - (678,931 ) (1,629,146 ) Non-controlling interest in net loss - - 31,030 31,030 Net loss (3,704,872 ) (1,575,892 ) (718,669 ) (5,999,433 ) Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) Geographical breakdown North European Total $ $ $ August 31, 2021 Assets 64,943,049 2,519,798 67,462,847 Long-term assets 35,796,241 108,924 35,905,165 November 30, 2021 Assets 58,654,084 2,484,492 61,138,576 Long-term assets 33,994,329 85,659 34,079,988 |
Related party transactions and
Related party transactions and balances | 3 Months Ended |
Nov. 30, 2021 | |
Related party transactions [abstract] | |
Related party transactions and balances | 24. Related party transactions and balances (a) Key management compensation Key management includes the Company’s directors, officers and any consultants with the authority and responsibility for planning, directing, and controlling the activities of an entity, directly or indirectly. Compensation awarded to key management for the three months ended November 30, 2021 includes the following: Schedule of Compensation Award to Key Management For the three months ended November 30, 2021 November 30, 2020 $ $ Total compensation paid to key management 347,256 534,738 Share based payments 153,671 895,814 Total compensation paid to key management is recorded in consulting fees, salaries and wages and share based payments in the consolidated statement of loss and comprehensive loss for the three months ended November 30, 2021, and 2020. Amounts due to related parties as of November 30, 2021, with respect to the above fees were $ 0 33,349 Commitment to former holders of WinView to proceeds from the patent portfolio enforcement action Pursuant to the Business Combination agreement dated March 9, 2020, among the Company, Frankly Inc. and Winview Inc., the Company is required to pay to certain former Winview securities holders (“Stubholders”) fifty percent ( 50% Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) |
Financial instruments and risk
Financial instruments and risk management | 3 Months Ended |
Nov. 30, 2021 | |
Financial Instruments And Risk Management | |
Financial instruments and risk management | 25. Financial instruments and risk management (a) Financial risk management objectives and policies The Company’s activities expose it to a variety of financial risks including foreign currency risk, interest rate risk, credit risk, and liquidity risk. These financial instrument risks are actively managed by the Company under the policies approved by the Board of Directors. The principal financial risks are managed by the Company’s finance department, within Board approved policies and guidelines. On an ongoing basis, the finance department actively manages market conditions with a view to minimizing the exposure of the Company to changing market factors, while at the same time limiting the funding costs to the Company. (b) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company uses information supplied by independent rating agencies where available, and if not available, the Company uses other publicly available financial information and its own records to rate its customers. Credit risk arises from cash and deposits with banks as well as credit exposure to outstanding receivables, the carrying amounts represent the Company’s maximum exposure to credit risk. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company establishes an allowance for doubtful accounts that represents its estimate of expected losses in respect of accounts receivable. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets. The Company’s accounts receivable are concentrated among customers in the media and broadcasting industry, which may be affected by adverse economic factors impacting that industry. The Company performs ongoing credit evaluations of its major customers, maintains reserves for expected credit losses, and does not require any collateral deposits. As of November 30, 2021, one customer (August 31, 2021 – one) accounted for greater than 10 13% 13 61% 58% The below table reflects the aging of the Company’s aging by invoice date of gross trade accounts receivable and allowance for doubtful accounts as of November 30, 2021: Schedule of Gross Trade Accounts Receivable and Allowance for Doubtful Accounts 0 - 30 31 - 60 61 - 90 91+ Total Trade accounts receivable 8,579,042 250,750 235,950 2,030,380 11,096,122 Allowance for doubtful accounts 3,500 1,500 - 1,079,305 1,084,305 % Allowance 0 % 1 % 0 % 53 % 10 % Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) (c) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company is exposed to liquidity risk with respect to its contractual obligations and financial liabilities. The Company manages liquidity risk by continuously monitoring forecasted and actual cash flows and matching maturity profiles of financial assets and liabilities. The Company seeks to ensure that it has sufficient capital to meet short term financial obligations after considering its operating obligations and cash on hand. The Company’s policy is to seek to ensure adequate funding is available from operations and other sources, including debt and equity capital markets, as required. Schedule of Funding Available From Operations and Other Sources < 1 year 1-2 years 2-5 years $ $ $ Accounts payable 9,610,276 - - Accrued liabilities 8,568,864 - - Players liability account 360,372 - - Lease obligation 198,663 325,631 - Long-term debt 69,507 - - Promissory notes payable 753,652 - - Convertible debt 2,557,505 - 5,628,059 (d) Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to fair value risk with respect to debt which bear interest at fixed rates. (e) Foreign exchange rates The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to fluctuations of financial instruments related to cash, accounts and other receivables, and accounts payable denominated in Euros and GBP, as well as debt denominated in Canadian dollars. (f) Fair value hierarchy The following tables combine information about: ● classes of financial instruments based on their nature and characteristics; ● the carrying amounts of financial instruments; ● fair values of financial instruments (except financial instruments when carrying amount approximates their fair value); and ● fair value hierarchy levels of financial assets and financial liabilities for which fair value was disclosed. Fair value hierarchy levels 1 to 3 are based on the degree to which the fair value is observable. Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) Schedule of Fair Value Measurement Carrying value at November 30, 2021 FVTPL - Amortized $ $ Financial assets: Cash - 9,678,803 Restricted cash - 360,372 Accounts and other receivables - 10,061,734 Government remittances - 1,195,102 Publisher advance - 3,631,052 Investment at FVTPL 2,629,851 - 2,629,851 24,927,063 Carrying value at November 30, 2021 FVTPL - FVTPL - Amortized $ $ $ Financial liabilities: Accounts payable - - 9,610,276 Accrued liabilities - - 8,568,864 Players liability account - - 360,372 Arbitration reserve - 3,728,278 - Long-term debt - - 69,507 Promissory notes payable - - 753,652 Warrant liability 1,851,311 - - Convertible debt - 8,185,564 - 1,851,311 11,913,842 19,362,671 Carrying value at August 31, 2021 FVTPL - Amortized $ $ Financial assets: Cash - 15,305,996 Restricted cash - 331,528 Accounts and other receivables - 8,646,807 Government remittances - 1,070,216 Publisher advance - 4,534,218 Investment at FVTPL 2,629,851 - Financial assets 2,629,851 29,888,765 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) Carrying value at August 31, 2021 FVTPL - FVTPL - Amortized $ $ $ Financial liabilities: Accounts payable - - 10,403,665 Accrued liabilities - - 5,722,470 Players liability account - - 331,528 Arbitration reserve - 6,468,330 - Long-term debt - - 96,664 Promissory notes payable - - 821,948 Warrant liability 4,868,703 - - Convertible debt - 9,951,496 - Financial liabilities 4,868,703 16,419,826 17,376,275 A summary of instruments, with their classification in the fair value hierarchy is as follows: Schedule of Hierarchy Levels of Fair Value Level 1 Level 2 Level 3 Fair value as $ $ $ $ Warrant liability - 1,851,311 - 1,851,311 Convertible debt - - 8,185,564 8,185,564 Investment at FVTPL - - 2,629,851 2,629,851 Level 1 Level 2 Level 3 Fair value as $ $ $ $ Warrant liability - 4,868,703 - 4,868,703 Convertible debt - - 9,951,496 9,951,496 Investment at FVTPL - - 2,629,851 2,629,851 Some of the Company’s financial assets and financial liabilities are measured at fair value at the end of each reporting period. |
Subsequent events
Subsequent events | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent events | 26. Subsequent events The Company has evaluated subsequent events from the balance sheet date through January 14, 2022, the date at which the interim condensed consolidated financial statements were available to be issued and determined there were no additional items to be disclosed. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Basis Of Preparation | |
Schedule of Material Subsidiaries | The Company’s material subsidiaries as of November 30, 2021, are as follows: Schedule of Material Subsidiaries Name of Subsidiary Country of Incorporation Ownership Percentage Functional Currency Frankly Inc. Canada 100% Canadian Dollar UMG Media Ltd. Canada 100% Canadian Dollar Eden Games S.A France 96% Euro Stream Hatchet S.L. Spain 100% Euro SideQik, Inc. USA 100% US Dollar WinView, Inc. USA 100% US Dollar |
Accounts, other receivables, _2
Accounts, other receivables, and customer advance (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Accounts Other Receivables And Customer Advance | |
Schedule of Accounts and Other Receivables | The Company’s accounts and other receivables are comprised of the following: Schedule of Accounts and Other Receivables November 30, August 31, $ $ Trade accounts receivable 11,096,122 9,677,725 Other receivables 49,917 53,387 Allowance for doubtful accounts (1,084,305 ) (1,084,305 ) Total accounts and other receivables 10,061,734 8,646,807 |
Schedule of Allowance for Doubtful Accounts | A continuity of the Company’s allowance for doubtful accounts is as follows: Schedule of Allowance for Doubtful Accounts November 30, August 31, $ $ Allowance for doubtful accounts, August 31 (1,084,305 ) (874,438 ) Acquisition of SideQik - (140,896 ) Provision, bad debt expense - (72,636 ) Writeoffs - 3,665 Allowance for doubtful accounts, November 30 (1,084,305 ) (1,084,305 ) |
Property and equipment (Tables)
Property and equipment (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of Detailed Information About Property Plant and Equipment | Disclosure of Detailed Information About Property Plant and Equipment Cost Leasehold Computer equipment Furniture Total $ $ $ $ August 31, 2020 221,653 486,340 173,091 881,084 Additions - 64,145 - 64,145 Disposal of Motorsports (2,631 ) (47,645 ) (18,118 ) (68,394 ) Effect of foreign exchange (49 ) (432 ) (382 ) (863 ) November 30, 2020 218,973 502,408 154,591 875,972 August 31, 2021 218,851 603,607 173,044 995,502 Property and equipment, cost, beginning balance 218,851 603,607 173,044 995,502 Additions - 13,829 - 13,829 Foreign exchange (398 ) 776 (2,467 ) (2,089 ) November 30, 2021 218,453 618,212 170,577 1,007,242 Property and equipment, cost, ending balance 218,453 618,212 170,577 1,007,242 Accumulated depreciation Leasehold Computer equipment Furniture Total $ $ $ $ August 31, 2020 57,517 307,508 106,670 471,695 Depreciation (120 ) 15,634 1,772 17,286 Disposal of Motorsports - (11,068 ) (9,910 ) (20,978 ) Foreign exchange 10 425 (224 ) 211 November 30, 2020 57,407 312,499 98,308 468,214 August 31, 2021 63,367 406,231 122,093 591,691 Accumulated depreciation, beginning balance 63,367 406,231 122,093 591,691 Depreciation 1,743 22,953 4,222 28,918 Foreign exchange (258 ) (2,160 ) (53 ) (2,471 ) November 30, 2021 64,852 427,024 126,262 618,138 Accumulated depreciation, ending balance 64,852 427,024 126,262 618,138 Net book value Leasehold Computer equipment Furniture Total $ $ $ $ August 31, 2021 155,484 197,376 50,951 403,811 November 30, 2021 153,601 191,188 44,315 389,104 Property and equipment, net book value 153,601 191,188 44,315 389,104 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure Of Detailed Information About Goodwil | |
Disclosure of Detailed Information About Goodwil | Disclosure of Detailed Information About Goodwil 2021 2020 $ $ Balance, August 31, 18,495,121 18,785,807 Effect of foreign exchange (28,912 ) 26,903 Balance, November 30, 18,466,209 18,812,710 |
Intangible assets (Tables)
Intangible assets (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of Detailed Information About Intangible Assets | A continuity of the Company’s accumulated impairment losses for intangibles is as follows: Disclosure of Detailed Information About Intangible Assets Cost Patents Application Platforms Software Brand Customer Total $ $ $ $ $ $ August 31, 2020 9,430,265 1,322,802 10,763,975 2,310,475 3,671,954 27,499,471 Disposal of Motorsports - - (3,598,869 ) (201,627 ) (222,650 ) (4,023,146 ) Foreign exchange and other - 20,516 322,019 101,056 14,663 458,254 November 30, 2020 9,430,265 1,343,318 7,487,125 2,209,904 3,463,967 23,934,579 August 31, 2021 9,430,265 1,073,045 8,330,683 2,137,449 3,624,300 24,595,742 Intangible Assets, Balance 9,430,265 1,073,045 8,330,683 2,137,449 3,624,300 24,595,742 Foreign exchange and other - (11,723 ) (219,879 ) (63,862 ) (11,917 ) (307,381 ) November 30, 2021 9,430,265 1,061,322 8,110,804 2,073,587 3,612,383 24,288,361 Intangible Assets, Balance 9,430,265 1,061,322 8,110,804 2,073,587 3,612,383 24,288,361 Accumulated amortization Patents Application Platforms Software Brand Customer Total $ $ $ $ $ $ August 31, 2020 628,684 793,041 4,909,000 1,077,491 648,933 8,057,149 Amortization 471,513 51,594 779,385 122,746 145,910 1,571,148 Disposal of Motorsports - - (532,412 ) (201,627 ) (222,650 ) (956,689 ) Foreign exchange - 17,427 301,761 49,090 (69,603 ) 298,675 November 30, 2020 1,100,197 862,062 5,457,734 1,047,700 502,590 8,970,283 August 31, 2021 2,514,737 966,444 6,340,302 1,375,647 916,368 12,113,498 Intangible Assets, Amortization, Balance 2,514,737 966,444 6,340,302 1,375,647 916,368 12,113,498 Amortization 471,513 28,000 212,167 101,666 135,615 948,961 Foreign exchange - (11,723 ) (219,879 ) (46,975 ) (24,112 ) (302,689 ) November 30, 2021 2,986,250 982,721 6,332,590 1,430,338 1,027,871 12,759,770 Intangible Assets, Amortization, Balance 2,986,250 982,721 6,332,590 1,430,338 1,027,871 12,759,770 Net book value Patents Application Platforms Software Brand Customer Total $ $ $ $ $ $ August 31, 2021 6,915,528 106,601 1,990,381 761,802 2,707,932 12,482,244 November 30, 2021 6,444,015 78,601 1,778,214 643,249 2,584,512 11,528,591 Intangible assets other than goodwil 6,444,015 78,601 1,778,214 643,249 2,584,512 11,528,591 |
Right-of-use assets (Tables)
Right-of-use assets (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Right-of-use Assets | |
Disclosure of Detailed Information about Right-of-Use Assets | Disclosure of Detailed Information about Right-of-Use Assets 2021 2020 $ $ Balance, August 31, 557,022 550,478 Acquired - - Depreciation (64,968 ) (29,041 ) Effect of foreign exchange (1,472 ) (58 ) Balance, November 30, 490,582 521,379 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Lease Liabilities | |
Disclosure of Detailed Information About Continuity of the Lease Liabilities | Disclosure of Detailed Information About Continuity of the Lease Liabilities Equipment Office lease Total $ $ $ Balance, August 31, 2020 35,457 536,691 572,148 Interest expense 562 9,094 9,656 Payments (3,345 ) (50,915 ) (54,260 ) Effect of foreign exchange - (36 ) (36 ) Balance, November 30, 2020 32,674 494,834 527,508 Balance, August 31, 2021 24,048 563,503 587,551 Interest expense 375 8,266 8,641 Payments (3,345 ) (66,913 ) (70,258 ) Effect of foreign exchange - (1,640 ) (1,640 ) Balance, November 30, 2021 21,078 503,216 524,294 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) The Company’s lease obligation is classified between current and non-current liabilities as follows: Equipment Office lease Total $ $ $ As of November 30, 2020: Less than one year 11,595 178,279 189,874 Greater than one year 21,079 316,555 337,634 Total lease obligation 32,674 494,834 527,508 Equipment Office lease Total $ $ $ As of November 30, 2021: Less than one year 12,373 186,290 198,663 Greater than one year 8,705 316,926 325,631 Total lease obligation 21,078 503,216 524,294 |
Disclosure of Detailed Information About Future Minimum Undiscounted Lease Payments | The future minimum undiscounted lease payments as of November 30, 2021, are presented below: Disclosure of Detailed Information About Future Minimum Undiscounted Lease Payments Total $ Current 221,334 2 years 177,301 3 years 141,342 4 years 29,797 Total undiscounted lease obligation 569,774 |
Convertible debt (Tables)
Convertible debt (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
IfrsStatementLineItems [Line Items] | |
Disclosure of Detailed Information About Continuity of Convertible Debt | The continuity of convertible debt for the three months ended November 30, 2021, and 2020, is as follows: Disclosure of Detailed Information About Continuity of Convertible Debt 2019 2020 Total $ $ $ Balance, August 31, 2020 2,121,869 8,671,590 10,793,459 Issuances - 4,282,477 4,282,477 Conversion - common shares issued (164,343 ) - (164,343 ) Conversion - warrants issued (140,880 ) - (140,880 ) Interest expense 19,001 137,775 156,776 Accrued interest on conversion (14,792 ) - (14,792 ) Effect of foreign exchange 17,152 - 17,152 Change in fair value 370,969 952,776 1,323,745 Balance, November 30, 2020 2,208,976 14,044,618 16,253,594 2019 2020 EB CD Total $ $ $ $ Balance, August 31, 2021 914,428 2,097,127 6,939,941 9,951,496 Total convertible debt obligation beginning balance 914,428 2,097,127 6,939,941 9,951,496 Interest expense 6,622 49,863 125,000 181,485 Accrued interest on conversion / interest payments - - (250,000 ) (250,000 ) Effect of foreign exchange (14,245 ) - - (14,245 ) Change in fair value (292,982 ) (203,308 ) (1,186,882 ) (1,683,172 ) Balance, November 30, 2021 613,823 1,943,682 5,628,059 8,185,564 2019 2020 EB CD Total $ $ $ $ As of November 30, 2021: Less than one year 613,823 1,943,682 - 2,557,505 Greater than one year - - 5,628,059 5,628,059 Total convertible debt obligation 613,823 1,943,682 5,628,059 8,185,564 Total convertible debt obligation ending balance 613,823 1,943,682 5,628,059 8,185,564 |
Disclosure of Detailed Information About Fair Value of Convertible Debentures | As of November 30, 2021, the fair value of the EB CD convertible debenture was estimated using the binomial lattice model with the below assumptions: Disclosure of Detailed Information About Fair Value of Convertible Debentures EB CD November 30, August 31, Share price 3.85 6.66 Conversion price 10.25 10.25 Warrant exercise price 15.00 15.00 Term, in years 2.24 1.26 Interest rate 10 % 10 % Expected volatility 85.00 % 90.00 % Risk-free interest rate 0.59 % 0.30 % Expected dividend yield 0 % 0 % |
Disclosure of Key Inputs of Convertible Debt | The following table gives information about how the fair values of these financial liabilities are determined (in particular, the valuation technique and key inputs used). Disclosure of Key Inputs of Convertible Debt Financial assets / financial liabilities Valuation technique Key Inputs Relationship and sensitivity of unobservable inputs to fair value to fair value Convertible debt The fair value of the convertible debentures as of November 30, 2021 has been calculated using a binomial lattice methodology. Key observable inputs The estimated fair value would increase (decrease) if: Share price CAD $ 4.93 3.85 The share price was higher (lower) Risk-free interest rate ( 0.23% 0.59% The risk-free interest rate was higher (lower) Dividend yield ( 0% The dividend yield was lower (higher) Key unobservable inputs Credit spread ( 7.69% 9.88% The credit spread was lower (higher) Discount for lack of marketability ( 0% The discount for lack of marketability was lower (higher) Convertible debt The fair value of the convertible debentures as of August 31, 2021 has been calculated using a binomial lattice methodology. Key observable inputs The estimated fair value would increase (decrease) if: Share price CAD$ 8.42 6.66 The share price was higher (lower) Risk-free interest rate ( 0.10% 0.30% The risk-free interest rate was higher (lower) Dividend yield ( 0% The dividend yield was lower (higher) Key unobservable inputs Credit spread ( 1.14% 8.45% The credit spread was lower (higher) Discount for lack of marketability ( 0% The discount for lack of marketability was lower (higher) |
2019 Series Convertible Debenture [Member] | |
IfrsStatementLineItems [Line Items] | |
Disclosure of Detailed Information About Fair Value of Convertible Debentures | As of November 30, 2021, the fair value of the 2019 Series convertible debentures was estimated using the binomial lattice model with the below assumptions: Disclosure of Detailed Information About Fair Value of Convertible Debentures 2019 Series November 30, August 31, Share price 4.93 8.42 Conversion price 7.50 7.50 Warrant exercise price 7.50 7.50 Term, in years .60 .69 .85 .94 Interest rate 6 % 6 % Expected volatility 85.00 % 90.00 % Risk-free interest rate 0.43 0.50 % 0.25 0.26 % Exchange rate 0.7817 0.7947 Expected dividend yield 0 % 0 % |
2020 Series Convertible Debenture [Member] | |
IfrsStatementLineItems [Line Items] | |
Disclosure of Detailed Information About Fair Value of Convertible Debentures | As of November 30, 2021, the fair value of the 2020 Series convertible debentures was estimated using the binomial lattice model with the below assumptions: Disclosure of Detailed Information About Fair Value of Convertible Debentures 2020 Series November 30, August 31, Share price 3.85 6.66 Conversion price 8.90 8.90 Warrant exercise price - - Term, in years 1.26 1.26 Interest rate 10 % 10 % Expected volatility 85.00 % 90.00 % Risk-free interest rate 0.23 % 0.10 % Expected dividend yield 0 % 0 % |
Warrant liability (Tables)
Warrant liability (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Warrant Liability | |
Schedule of Measured Warrants | The following tables reflect the continuity of the Company’s liability measured warrants for the three months ended November 30, 2021, and 2020: Schedule of Measured Warrants Amount $ Balance at August 31, 2020 14,135,321 Issued on conversion of convertible debt 140,880 Issued in private convertible debt 618,916 Exercised (11,404 ) Change in fair value (4,759,776 ) Foreign exchange 122,209 Balance, November 30, 2020 10,246,146 Amount $ Balance at August 31, 2021 4,868,703 Beginning Balance 4,868,703 Change in fair value (2,941,546 ) Foreign exchange (75,846 ) Balance, November 30, 2021 1,851,311 Ending Balance 1,851,311 |
Schedule of Outstanding Warrants | Schedule of Outstanding Warrants Number of warrants Weighted-average exercise price # $ Outstanding, August 31, 2020 2,405,369 9.60 Issued on conversion of convertible debt 36,666 7.50 Issued in private placement of convertible debentures 224,719 19.45 Exercised (7,166 ) 8.28 Expired (430 ) 153.81 Outstanding as at November 30, 2020 2,659,158 10.39 Weighted-average Number of exercise price warrants CAD # $ Outstanding, August 31, 2021 1,452,843 8.96 Issued in private placement of convertible debentures - - Outstanding as at November 30, 2021 1,452,843 8.96 |
Schedule of Warrants Issued and Outstanding | Schedule of Warrants Issued and Outstanding The following table reflects the liability measured warrants issued and outstanding as of November 30, 2021: Warrants outstanding Expiry date Number Average Average remaining contractual March 13, 2022 123,159 10.50 0.28 December 20, 2022 29,066 27.00 1.05 March 20, 2023 27,777 13.50 1.30 March 30, 2023 46,909 13.50 1.33 March 31, 2023 17,222 13.50 1.33 May 27, 2023 130,304 13.50 1.49 July 8, 2024 445,982 7.50 2.61 July 25, 2024 401,624 7.50 2.65 August 8, 2024 230,800 7.50 2.69 1,452,843 $ 8.96 2.22 As at November 30, 2021, the fair value of the 1,452,843 1,452,843 1,851,311 4,868,703 0.28 2.69 0.53 2.94 4.93 8.42 7.50 27.00 7.50 27.00 70% 85% 70% 90% 0.76% 1.22% 0.28% 0.63% 0% Equity measured warrants having USD exercise price The Company’s 3,736,396 15 The following table reflects the equity measured warrants issued and outstanding as of November 30, 2021: Warrants outstanding Expiry date Number outstanding Average Average remaining contractual November 20, 2022 224,719 15.00 0.97 January 8, 2024 1,868,787 15.00 2.11 January 22, 2024 522,898 15.00 2.15 February 24, 2024 1,058,227 15.00 2.24 August 19, 2024 49,999 15.00 2.72 September 15, 2024 11,666 15.00 2.79 3,736,296 $ 15.00 2.09 If all equity measured warrants outstanding and exercisable as of November 30, 2021, were exercised, the Company would receive cash from exercise of approximately $ 56.0 |
Share capital (Tables)
Share capital (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure of classes of share capital [abstract] | |
Schedule of Shares Issued and Outstanding | Schedule of Shares Issued and Outstanding Shares Consideration # $ Balance, August 31, 2020 7,746,136 69,380,807 Shares issued on vesting of RSUs 66,666 410,189 Convertible debt conversion 36,666 164,343 Common shares issued on exercise of warrants 7,166 56,079 Balance, November 30, 2020 7,856,634 70,011,418 Shares Consideration # $ Balance, August 31, 2021 15,543,309 122,741,230 Shares issued on vesting of RSUs 91,635 681,759 Balance, November 30, 2021 15,634,944 123,422,989 |
Stock options (Tables)
Stock options (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Stock Options | |
Disclosure of Detailed Information About Number and Weighted Average Exercise Prices of Share Options | The following table reflects the continuity of stock options for the three months ended November 30, 2021, and 2020: Disclosure of Detailed Information About Number and Weighted Average Exercise Prices of Share Options Weighted-average Number of Exercise Grant-date Remaining # $ $ (yrs.) Balance, August 31, 2020 253,121 12.73 4.39 4.31 Expired/Cancelled (2,353 ) 112.73 29.40 Balance, November 30, 2020 250,768 11.79 4.43 4.06 Balance, August 31, 2021 692,938 11.64 7.06 4.46 Granted 10,000 9.82 2.92 Issued on exercise of options - - - Expired/Cancelled - - - Balance, November 30, 2021 702,938 11.61 7.00 4.30 Exercisable as at November 30, 2021 181,936 12.10 4.36 2.43 |
Disclosure of Detailed Information About Options Issued and Outstanding | The following tables reflect the stock options issued and outstanding as of November 30, 2021: Disclosure of Detailed Information About Options Issued and Outstanding Outstanding Weighted average exercise price Weighted average remaining contractual term Expiry date options CAD USD (Years) December 10, 2021 1,564 93.30 71.84 0.03 June 30, 2022 4,428 153.45 118.15 0.58 April 1, 2023 84,165 11.25 7.91 1.33 October 31, 2023 64,997 11.25 7.91 1.92 January 29, 2025 46 106.50 76.43 3.17 August 25, 2025 340 106.50 76.43 3.74 September 23, 2025 11 106.50 76.43 3.82 February 10, 2026 1,443 106.50 76.43 4.20 May 19, 2026 4 106.50 76.43 4.47 May 23, 2026 9 106.50 76.43 4.48 June 24, 2026 375,188 15.04 12.21 4.57 July 1, 2026 10,000 14.87 12.00 4.59 July 2, 2026 57,762 15.08 12.21 4.59 August 20, 2026 32,500 7.78 6.05 4.72 March 3, 2027 1,256 106.50 76.43 5.26 July 31, 2027 159 106.50 76.43 5.67 November 3, 2027 133 106.50 76.43 5.93 November 7, 2029 46,251 7.50 5.38 7.94 April 20, 2030 666 7.05 5.06 8.39 December 2, 2030 1,333 9.50 7.38 9.01 June 14, 2031 10,683 14.20 11.69 9.54 November 23, 2031 10,000 12.45 9.82 9.99 702,938 14.82 11.61 4.30 |
Restricted share units (Tables)
Restricted share units (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Restricted Share Units | |
Disclosure of Detailed Information About Restricted Stock Units Outstanding | The Company’s outstanding RSUs are as follows: Disclosure of Detailed Information About Restricted Stock Units Outstanding Number # Balance, August 31, 2020 402,372 Granted 322,547 Vested (66,666 ) Cancelled - Balance, November 30, 2020 658,253 Balance, August 31, 2021 490,174 Granted 100,626 Vested (91,635 ) Cancelled (5,034 ) Balance, November 30, 2021 494,131 |
Discontinued operations (Tables
Discontinued operations (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Discontinued Operations | |
Schedule of Loss on Disposal | Consideration transferred for the Motorsport Group was as follows: Schedule of Loss on Disposal Amount $ Consideration received or receivable: Accounts payable assumed 101,322 Deferred purchase consideration of LGR 333,503 Fair value of contingent consideration 1,321,281 Total disposal consideration 1,756,106 Carrying amount of net assets sold (2,334,303 ) Loss on disposal before income tax and reclassification of foreign currency translation reserve (578,197 ) Reclassification of foreign currency translation reserve (100,734 ) Loss on disposal of Motorsports (678,931 ) |
Disclosure of Net Asset | The net assets of the Motorsport Group as at the date of sale were as follows: Disclosure of Net Asset Amount $ Carrying amounts of assets as at the date of sale: Cash and cash equivalents (24,348 ) Accounts and other receivables 126,590 Government remittances 25,095 Prepaid expenses and other 24,113 Property and equipment 47,416 Intangible assets 3,066,457 Total assets of disposal group 3,265,323 Carrying amount of liabilities directly associated with assets as at the date of sale: Accounts payable 508,881 Accrued liabilities 422,139 Total liabilities of disposal group 931,020 Net assets of disposal group 2,334,303 |
Schedule of Discontinued Operations | The operating results and net cash flows of the Motorsports Group for the three months ended November 30, 2021, and 2020 are presented as discontinued operations as follows: Schedule of Discontinued Operations Nov 30, 2021 Nov 30, 2020 For the three months ended Nov 30, 2021 Nov 30, 2020 $ $ Revenues Advertising revenue - 90,934 Operating expenses Salaries and wages - 212,546 Consulting - 267,933 Professional fees - 22,681 Sponsorships and tournaments - 203,637 Advertising and promotion - 1,740 Office and general - 7,374 Technology expenses - 86,590 Amortization and depreciation - 201,335 Interest expense - 572 (Gain) loss on foreign exchange 9,656 36,741 Net loss from discontinued operations (9,656 ) (950,215 ) |
Segmented information (Tables)
Segmented information (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Disclosure of operating segments [abstract] | |
Schedule of Segment Reporting | The following is an analysis of the Company’s revenue and results by reportable segment for the three months ended November 30, 2021: Schedule of Segment Reporting Gaming Media Corporate Total $ $ $ $ Revenue External sales 2,537,394 11,812,084 - 14,349,478 Results Segment loss (2,511,025 ) (1,981,915 ) - (4,492,940 ) Central administration costs - - 2,828,505 2,828,505 Other gains and losses 1,006,452 (1,643 ) (7,221,762 ) (6,216,953 ) Finance costs 17,357 375 196,876 214,608 Income (loss) before tax (3,534,834 ) (1,980,647 ) 4,196,381 (1,319,100 ) Income tax - - - - Gain (Loss) for the year from: Share of net loss of associate - - (66,686 ) (66,686 ) Discontinued operations (9,656 ) - - (9,656 ) Non-controlling interest in net loss - - (24,764 ) (24,764 ) Net income (loss) (3,544,490 ) (1,980,647 ) 4,171,617 (1,353,520 ) The following is an analysis of the Company’s revenue and results by reportable segment for the three months ended November 30, 2020: Gaming Media Corporate Total $ $ $ $ Revenue External sales 762,941 6,703,450 - 7,466,391 Results Segment loss (2,697,438 ) (1,392,595 ) - (4,090,033 ) Central administration costs - - 3,309,789 3,309,789 Other gains and losses (2,352 ) (3,693 ) (3,467,235 ) (3,473,280 ) Finance costs 59,571 186,990 161,528 408,089 Loss before tax (2,754,657 ) (1,575,892 ) (4,082 ) (4,334,631 ) Income tax - - - - Gain (Loss) for the year from: Share of net loss of associate - - (66,686 ) (66,686 ) Discontinued operations (950,215 ) - (678,931 ) (1,629,146 ) Non-controlling interest in net loss - - 31,030 31,030 Net loss (3,704,872 ) (1,575,892 ) (718,669 ) (5,999,433 ) Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) Geographical breakdown North European Total $ $ $ August 31, 2021 Assets 64,943,049 2,519,798 67,462,847 Long-term assets 35,796,241 108,924 35,905,165 November 30, 2021 Assets 58,654,084 2,484,492 61,138,576 Long-term assets 33,994,329 85,659 34,079,988 |
Related party transactions an_2
Related party transactions and balances (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Related party transactions [abstract] | |
Schedule of Compensation Award to Key Management | Schedule of Compensation Award to Key Management For the three months ended November 30, 2021 November 30, 2020 $ $ Total compensation paid to key management 347,256 534,738 Share based payments 153,671 895,814 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Financial Instruments And Risk Management | |
Schedule of Gross Trade Accounts Receivable and Allowance for Doubtful Accounts | The below table reflects the aging of the Company’s aging by invoice date of gross trade accounts receivable and allowance for doubtful accounts as of November 30, 2021: Schedule of Gross Trade Accounts Receivable and Allowance for Doubtful Accounts 0 - 30 31 - 60 61 - 90 91+ Total Trade accounts receivable 8,579,042 250,750 235,950 2,030,380 11,096,122 Allowance for doubtful accounts 3,500 1,500 - 1,079,305 1,084,305 % Allowance 0 % 1 % 0 % 53 % 10 % |
Schedule of Funding Available From Operations and Other Sources | The Company’s policy is to seek to ensure adequate funding is available from operations and other sources, including debt and equity capital markets, as required. Schedule of Funding Available From Operations and Other Sources < 1 year 1-2 years 2-5 years $ $ $ Accounts payable 9,610,276 - - Accrued liabilities 8,568,864 - - Players liability account 360,372 - - Lease obligation 198,663 325,631 - Long-term debt 69,507 - - Promissory notes payable 753,652 - - Convertible debt 2,557,505 - 5,628,059 |
Schedule of Fair Value Measurement | Schedule of Fair Value Measurement Carrying value at November 30, 2021 FVTPL - Amortized $ $ Financial assets: Cash - 9,678,803 Restricted cash - 360,372 Accounts and other receivables - 10,061,734 Government remittances - 1,195,102 Publisher advance - 3,631,052 Investment at FVTPL 2,629,851 - 2,629,851 24,927,063 Carrying value at November 30, 2021 FVTPL - FVTPL - Amortized $ $ $ Financial liabilities: Accounts payable - - 9,610,276 Accrued liabilities - - 8,568,864 Players liability account - - 360,372 Arbitration reserve - 3,728,278 - Long-term debt - - 69,507 Promissory notes payable - - 753,652 Warrant liability 1,851,311 - - Convertible debt - 8,185,564 - 1,851,311 11,913,842 19,362,671 Carrying value at August 31, 2021 FVTPL - Amortized $ $ Financial assets: Cash - 15,305,996 Restricted cash - 331,528 Accounts and other receivables - 8,646,807 Government remittances - 1,070,216 Publisher advance - 4,534,218 Investment at FVTPL 2,629,851 - Financial assets 2,629,851 29,888,765 Engine Gaming and Media, Inc. (formerly Engine Media Holdings, Inc) Notes to the Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2021 and 2020 (Unaudited) (Expressed in United States Dollars) Carrying value at August 31, 2021 FVTPL - FVTPL - Amortized $ $ $ Financial liabilities: Accounts payable - - 10,403,665 Accrued liabilities - - 5,722,470 Players liability account - - 331,528 Arbitration reserve - 6,468,330 - Long-term debt - - 96,664 Promissory notes payable - - 821,948 Warrant liability 4,868,703 - - Convertible debt - 9,951,496 - Financial liabilities 4,868,703 16,419,826 17,376,275 |
Schedule of Hierarchy Levels of Fair Value | A summary of instruments, with their classification in the fair value hierarchy is as follows: Schedule of Hierarchy Levels of Fair Value Level 1 Level 2 Level 3 Fair value as $ $ $ $ Warrant liability - 1,851,311 - 1,851,311 Convertible debt - - 8,185,564 8,185,564 Investment at FVTPL - - 2,629,851 2,629,851 Level 1 Level 2 Level 3 Fair value as $ $ $ $ Warrant liability - 4,868,703 - 4,868,703 Convertible debt - - 9,951,496 9,951,496 Investment at FVTPL - - 2,629,851 2,629,851 |
Corporate information and goi_2
Corporate information and going concern (Details Narrative) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 | Aug. 30, 2021 |
Corporate Information And Going Concern | |||
Cumulative deficit | $ 114,168,493 | $ 112,814,973 | |
Working capital deficiency | $ 2,399,004 | $ 937,584 |
Schedule of Material Subsidiari
Schedule of Material Subsidiaries (Details) | 3 Months Ended |
Nov. 30, 2021 | |
Frankly Inc [member] | |
IfrsStatementLineItems [Line Items] | |
Name of subsidiary | Frankly Inc. |
Country of incorporation | Canada |
Proportion of ownership interest in subsidiary | 100.00% |
Functional currency | Canadian Dollar |
UMG Media Ltd [member] | |
IfrsStatementLineItems [Line Items] | |
Name of subsidiary | UMG Media Ltd. |
Country of incorporation | Canada |
Proportion of ownership interest in subsidiary | 100.00% |
Functional currency | Canadian Dollar |
Eden Games S. A. [member] | |
IfrsStatementLineItems [Line Items] | |
Name of subsidiary | Eden Games S.A |
Country of incorporation | France |
Proportion of ownership interest in subsidiary | 96.00% |
Functional currency | Euro |
Stream Hatchet S. L. [member] | |
IfrsStatementLineItems [Line Items] | |
Name of subsidiary | Stream Hatchet S.L. |
Country of incorporation | Spain |
Proportion of ownership interest in subsidiary | 100.00% |
Functional currency | Euro |
Side Qik Inc [member] | |
IfrsStatementLineItems [Line Items] | |
Name of subsidiary | SideQik, Inc. |
Country of incorporation | USA |
Proportion of ownership interest in subsidiary | 100.00% |
Functional currency | US Dollar |
Win View Inc [member] | |
IfrsStatementLineItems [Line Items] | |
Name of subsidiary | WinView, Inc. |
Country of incorporation | USA |
Proportion of ownership interest in subsidiary | 100.00% |
Functional currency | US Dollar |
Basis of preparation (Details N
Basis of preparation (Details Narrative) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Basis Of Preparation | ||
Income tax expense | $ 0 | $ 0 |
Net income (loss) per share (De
Net income (loss) per share (Details Narrative) - shares | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Profit or loss [abstract] | ||
Weighted average common shares outstanding | 15,565,638 | 7,699,907 |
Schedule of Accounts and Other
Schedule of Accounts and Other Receivables (Details) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 | Aug. 31, 2020 |
Accounts Other Receivables And Customer Advance | |||
Trade accounts receivable | $ 11,096,122 | $ 9,677,725 | |
Other receivables | 49,917 | 53,387 | |
Allowance for doubtful accounts | (1,084,305) | (1,084,305) | $ (874,438) |
Total accounts and other receivables | $ 10,061,734 | $ 8,646,807 |
Schedule of Allowance for Doubt
Schedule of Allowance for Doubtful Accounts (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2021 | |
Accounts Other Receivables And Customer Advance | ||
Allowance for doubtful accounts, August 31 | $ (1,084,305) | $ (874,438) |
Acquisition of SideQik | (140,896) | |
Provision, bad debt expense | (72,636) | |
Writeoffs | 3,665 | |
Allowance for doubtful accounts, November 30 | $ (1,084,305) | $ (1,084,305) |
Accounts, other receivables, _3
Accounts, other receivables, and customer advance (Details Narrative) - USD ($) | 3 Months Ended | |||
Nov. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Feb. 07, 2021 | |
IfrsStatementLineItems [Line Items] | ||||
Advance amount receivable | $ 3,631,052 | $ 6,000,000 | ||
Publisher advance amount | 6,000,000 | |||
Repayments on advance deducted from payables to customer | $ 2,368,948 | |||
Frankly Media LLC [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Advance amount receivable | $ 1,000,000 | $ 1,000,000 | $ 4,000,000 |
Investment at FVTPL (Details Na
Investment at FVTPL (Details Narrative) - USD ($) | Jan. 05, 2021 | Nov. 30, 2021 | Aug. 31, 2021 | Aug. 25, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Fair value of investment | $ 2,629,851 | $ 2,629,851 | ||
One Up Group LLC [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Percentage of voting equity interests acquired | 18.62% | 20.48% | ||
Share of loss | $ 103,930 | |||
Gain on retained interest | $ 99,961 |
Disclosure of Detailed Informat
Disclosure of Detailed Information About Property Plant and Equipment (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Property and equipment, cost, beginning balance | $ 995,502 | $ 881,084 | |
Additions | 13,829 | 64,145 | |
Disposal of Motorsports | (68,394) | ||
Foreign exchange | (2,089) | (863) | |
Property and equipment, cost, ending balance | 1,007,242 | 875,972 | |
Accumulated depreciation, beginning balance | 591,691 | 471,695 | |
Depreciation | 28,918 | 17,286 | |
Disposal of Motorsports | (20,978) | ||
Foreign exchange | (2,471) | 211 | |
Accumulated depreciation, ending balance | 618,138 | 468,214 | |
Property and equipment, net book value | 389,104 | $ 403,811 | |
Leasehold improvements [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, cost, beginning balance | 218,851 | 221,653 | |
Additions | |||
Disposal of Motorsports | (2,631) | ||
Foreign exchange | (398) | (49) | |
Property and equipment, cost, ending balance | 218,453 | 218,973 | |
Accumulated depreciation, beginning balance | 63,367 | 57,517 | |
Depreciation | 1,743 | (120) | |
Disposal of Motorsports | |||
Foreign exchange | (258) | 10 | |
Accumulated depreciation, ending balance | 64,852 | 57,407 | |
Property and equipment, net book value | 153,601 | 155,484 | |
Computer equipment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, cost, beginning balance | 603,607 | 486,340 | |
Additions | 13,829 | 64,145 | |
Disposal of Motorsports | (47,645) | ||
Foreign exchange | 776 | (432) | |
Property and equipment, cost, ending balance | 618,212 | 502,408 | |
Accumulated depreciation, beginning balance | 406,231 | 307,508 | |
Depreciation | 22,953 | 15,634 | |
Disposal of Motorsports | (11,068) | ||
Foreign exchange | (2,160) | 425 | |
Accumulated depreciation, ending balance | 427,024 | 312,499 | |
Property and equipment, net book value | 191,188 | 197,376 | |
Furniture and fixtures [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, cost, beginning balance | 173,044 | 173,091 | |
Additions | |||
Disposal of Motorsports | (18,118) | ||
Foreign exchange | (2,467) | (382) | |
Property and equipment, cost, ending balance | 170,577 | 154,591 | |
Accumulated depreciation, beginning balance | 122,093 | 106,670 | |
Depreciation | 4,222 | 1,772 | |
Disposal of Motorsports | (9,910) | ||
Foreign exchange | (53) | (224) | |
Accumulated depreciation, ending balance | 126,262 | $ 98,308 | |
Property and equipment, net book value | $ 44,315 | $ 50,951 |
Disclosure of Detailed Inform_2
Disclosure of Detailed Information About Goodwil (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Disclosure Of Detailed Information About Goodwil | ||
Beginning balance | $ 18,495,121 | $ 18,785,807 |
Effect of foreign exchange | (28,912) | 26,903 |
Ending balance | $ 18,466,209 | $ 18,812,710 |
Disclosure of Detailed Inform_3
Disclosure of Detailed Information About Intangible Assets (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Intangible Assets, Balance | $ 24,595,742 | $ 27,499,471 | |
Disposal of Motorsports | (4,023,146) | ||
Foreign exchange and other | (307,381) | 458,254 | |
Intangible Assets, Balance | 24,288,361 | 23,934,579 | |
Intangible Assets, Amortization, Balance | 12,113,498 | 8,057,149 | |
Amortization | 948,961 | 1,571,148 | |
Disposal of Motorsports | (956,689) | ||
Foreign exchange | (302,689) | 298,675 | |
Intangible Assets, Amortization, Balance | 12,759,770 | 8,970,283 | |
Intangible assets other than goodwill | 11,528,591 | $ 12,482,244 | |
Patent [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible Assets, Balance | 9,430,265 | 9,430,265 | |
Disposal of Motorsports | |||
Foreign exchange and other | |||
Intangible Assets, Balance | 9,430,265 | 9,430,265 | |
Intangible Assets, Amortization, Balance | 2,514,737 | 628,684 | |
Amortization | 471,513 | 471,513 | |
Disposal of Motorsports | |||
Foreign exchange | |||
Intangible Assets, Amortization, Balance | 2,986,250 | 1,100,197 | |
Intangible assets other than goodwill | 6,444,015 | 6,915,528 | |
Application Platforms [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible Assets, Balance | 1,073,045 | 1,322,802 | |
Disposal of Motorsports | |||
Foreign exchange and other | (11,723) | 20,516 | |
Intangible Assets, Balance | 1,061,322 | 1,343,318 | |
Intangible Assets, Amortization, Balance | 966,444 | 793,041 | |
Amortization | 28,000 | 51,594 | |
Disposal of Motorsports | |||
Foreign exchange | (11,723) | 17,427 | |
Intangible Assets, Amortization, Balance | 982,721 | 862,062 | |
Intangible assets other than goodwill | 78,601 | 106,601 | |
Computer software [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible Assets, Balance | 8,330,683 | 10,763,975 | |
Disposal of Motorsports | (3,598,869) | ||
Foreign exchange and other | (219,879) | 322,019 | |
Intangible Assets, Balance | 8,110,804 | 7,487,125 | |
Intangible Assets, Amortization, Balance | 6,340,302 | 4,909,000 | |
Amortization | 212,167 | 779,385 | |
Disposal of Motorsports | (532,412) | ||
Foreign exchange | (219,879) | 301,761 | |
Intangible Assets, Amortization, Balance | 6,332,590 | 5,457,734 | |
Intangible assets other than goodwill | 1,778,214 | 1,990,381 | |
Brand [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible Assets, Balance | 2,137,449 | 2,310,475 | |
Disposal of Motorsports | (201,627) | ||
Foreign exchange and other | (63,862) | 101,056 | |
Intangible Assets, Balance | 2,073,587 | 2,209,904 | |
Intangible Assets, Amortization, Balance | 1,375,647 | 1,077,491 | |
Amortization | 101,666 | 122,746 | |
Disposal of Motorsports | (201,627) | ||
Foreign exchange | (46,975) | 49,090 | |
Intangible Assets, Amortization, Balance | 1,430,338 | 1,047,700 | |
Intangible assets other than goodwill | 643,249 | 761,802 | |
Customer Lists and Contracts [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible Assets, Balance | 3,624,300 | 3,671,954 | |
Disposal of Motorsports | (222,650) | ||
Foreign exchange and other | (11,917) | 14,663 | |
Intangible Assets, Balance | 3,612,383 | 3,463,967 | |
Intangible Assets, Amortization, Balance | 916,368 | 648,933 | |
Amortization | 135,615 | 145,910 | |
Disposal of Motorsports | (222,650) | ||
Foreign exchange | (24,112) | (69,603) | |
Intangible Assets, Amortization, Balance | 1,027,871 | $ 502,590 | |
Intangible assets other than goodwill | $ 2,584,512 | $ 2,707,932 |
Disclosure of Detailed Inform_4
Disclosure of Detailed Information about Right-of-Use Assets (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Right-of-use Assets | ||
Balance, beginning of year | $ 557,022 | $ 550,478 |
Acquired | ||
Depreciation | (64,968) | (29,041) |
Effect of foreign exchange | (1,472) | (58) |
Balance, ending of year | $ 490,582 | $ 521,379 |
Disclosure of Detailed Inform_5
Disclosure of Detailed Information About Continuity of the Lease Liabilities (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Lease liabilities, balance | $ 587,551 | $ 572,148 |
Interest expense | 8,641 | 9,656 |
Payments | (70,258) | (54,260) |
Effect of foreign exchange | (1,640) | (36) |
Lease liabilities, balance | 524,294 | 527,508 |
Less than one year | 198,663 | 189,874 |
Greater than one year | 325,631 | 337,634 |
Total lease obligation | 524,294 | 527,508 |
Equipments [member] | ||
IfrsStatementLineItems [Line Items] | ||
Lease liabilities, balance | 24,048 | 35,457 |
Interest expense | 375 | 562 |
Payments | (3,345) | (3,345) |
Effect of foreign exchange | ||
Lease liabilities, balance | 21,078 | 32,674 |
Less than one year | 12,373 | 11,595 |
Greater than one year | 8,705 | 21,079 |
Total lease obligation | 21,078 | 32,674 |
Office lease [member] | ||
IfrsStatementLineItems [Line Items] | ||
Lease liabilities, balance | 563,503 | 536,691 |
Interest expense | 8,266 | 9,094 |
Payments | (66,913) | (50,915) |
Effect of foreign exchange | (1,640) | (36) |
Lease liabilities, balance | 503,216 | 494,834 |
Less than one year | 186,290 | 178,279 |
Greater than one year | 316,926 | 316,555 |
Total lease obligation | $ 503,216 | $ 494,834 |
Disclosure of Detailed Inform_6
Disclosure of Detailed Information About Future Minimum Undiscounted Lease Payments (Details) | Nov. 30, 2021USD ($) |
Lease Liabilities | |
Current | $ 221,334 |
2 years | 177,301 |
3 years | 141,342 |
4 years | 29,797 |
Total undiscounted lease obligation | $ 569,774 |
Promissory notes payable and _2
Promissory notes payable and other borrowings (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
May 31, 2020 | Apr. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||||||
Interest expense | $ 214,608 | $ 408,089 | ||||
Unsecured promissory note [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Principal amount | $ 200,000 | $ 200,000 | ||||
Interest rate | 18.00% | |||||
Interest expense | $ 154,721 | 139,644 | ||||
Secured promissory note [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Interest rate | 8.00% | |||||
Proceeds from debt | $ 398,931 | $ 4,823,042 | ||||
Paycheck protection program loans [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Principal amount | 209,875 | |||||
Interest rate | 1.00% | 1.00% | ||||
Proceeds from debt | $ 1,589,559 | $ 1,589,559 | $ 1,589,559 | $ 1,589,559 | ||
Maturity | the Notes are scheduled to mature in April 2022 and require 18 equal monthly payments of principal and interest beginning November 2020. |
Disclosure of Detailed Inform_7
Disclosure of Detailed Information About Continuity of Convertible Debt (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Total convertible debt obligation beginning balance | $ 9,951,496 | $ 10,793,459 |
Issuances | 4,282,477 | |
Conversion - common shares issued | (164,343) | |
Conversion - warrants issued | (140,880) | |
Interest expense | 181,485 | 156,776 |
Accrued interest on conversion / interest payments | (250,000) | (14,792) |
Effect of foreign exchange | (14,245) | 17,152 |
Change in fair value | (1,683,172) | 1,323,745 |
Total convertible debt obligation ending balance | 8,185,564 | 16,253,594 |
Less than one year | 2,557,505 | |
Greater than one year | 5,628,059 | |
2019 Series Convertible Debenture [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total convertible debt obligation beginning balance | 914,428 | 2,121,869 |
Issuances | ||
Conversion - common shares issued | (164,343) | |
Conversion - warrants issued | (140,880) | |
Interest expense | 6,622 | 19,001 |
Accrued interest on conversion / interest payments | (14,792) | |
Effect of foreign exchange | (14,245) | 17,152 |
Change in fair value | (292,982) | 370,969 |
Total convertible debt obligation ending balance | 613,823 | 2,208,976 |
Less than one year | 613,823 | |
Greater than one year | ||
2020 Series Convertible Debenture [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total convertible debt obligation beginning balance | 2,097,127 | 8,671,590 |
Issuances | 4,282,477 | |
Conversion - common shares issued | ||
Conversion - warrants issued | ||
Interest expense | 49,863 | 137,775 |
Accrued interest on conversion / interest payments | ||
Effect of foreign exchange | ||
Change in fair value | (203,308) | 952,776 |
Total convertible debt obligation ending balance | 1,943,682 | $ 14,044,618 |
Less than one year | 1,943,682 | |
Greater than one year | ||
EB CD [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total convertible debt obligation beginning balance | 6,939,941 | |
Interest expense | 125,000 | |
Accrued interest on conversion / interest payments | (250,000) | |
Effect of foreign exchange | ||
Change in fair value | (1,186,882) | |
Total convertible debt obligation ending balance | 5,628,059 | |
Less than one year | ||
Greater than one year | $ 5,628,059 |
Disclosure of Detailed Inform_8
Disclosure of Detailed Information About Fair Value of Convertible Debentures (Details) | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2021$ / shares | Nov. 30, 2021$ / shares$ / shares | Aug. 31, 2021$ / shares | Aug. 31, 2021$ / shares$ / shares | Nov. 30, 2021$ / shares | Aug. 31, 2021$ / shares | |
IfrsStatementLineItems [Line Items] | ||||||
Share price | $ 4.93 | $ 8.42 | ||||
2019 series [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Share price | $ 4.93 | $ 8.42 | ||||
Conversion price | $ 7.50 | $ 7.50 | ||||
Warrant exercise price | $ 7.50 | $ 7.50 | ||||
Interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% |
Expected volatility | 85.00% | 85.00% | 90.00% | 90.00% | ||
Exchange rate | 0.7817 | 0.7817 | 0.7947 | 0.7947 | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | ||
2019 series [member] | Bottom of range [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Terms, in years | 7 months 6 days | 7 months 6 days | 10 months 6 days | 10 months 6 days | ||
Risk-free interest rate | 0.43% | 0.43% | 0.25% | 0.25% | ||
2019 series [member] | Top of range [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Terms, in years | 8 months 8 days | 8 months 8 days | 11 months 8 days | 11 months 8 days | ||
Risk-free interest rate | 0.50% | 0.50% | 0.26% | 0.26% | ||
2020 Series [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Share price | $ 3.85 | $ 6.66 | ||||
Conversion price | 8.90 | $ 8.90 | 8.90 | $ 8.90 | ||
Warrant exercise price | ||||||
Terms, in years | 1 year 3 months 3 days | 1 year 3 months 3 days | 1 year 3 months 3 days | 1 year 3 months 3 days | ||
Interest rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Expected volatility | 85.00% | 85.00% | 90.00% | 90.00% | ||
Risk-free interest rate | 0.23% | 0.23% | 0.10% | 0.10% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | ||
EB CD [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Share price | $ 3.85 | $ 6.66 | ||||
Conversion price | 10.25 | $ 10.25 | 10.25 | $ 10.25 | ||
Warrant exercise price | $ 15 | $ 15 | $ 15 | $ 15 | ||
Terms, in years | 2 years 2 months 26 days | 2 years 2 months 26 days | 1 year 3 months 3 days | 1 year 3 months 3 days | ||
Interest rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Expected volatility | 85.00% | 85.00% | 90.00% | 90.00% | ||
Risk-free interest rate | 0.59% | 0.59% | 0.30% | 0.30% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Disclosure of Key Inputs of Con
Disclosure of Key Inputs of Convertible Debt (Details) | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2021$ / shares | Nov. 30, 2021$ / shares | Aug. 31, 2021$ / shares | Aug. 31, 2021$ / shares | |
IfrsStatementLineItems [Line Items] | ||||
Share price | $ 4.93 | $ 8.42 | ||
Convertible [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Share price | $ 3.85 | $ 6.66 | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Discount for lack of marketability | 0.00% | 0.00% | 0.00% | 0.00% |
Convertible [member] | Top of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Risk-free interest rate | 0.23% | 0.23% | 0.30% | 0.30% |
Credit spread | 7.69% | 7.69% | 8.45% | 8.45% |
Convertible [member] | Bottom of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Risk-free interest rate | 0.59% | 0.59% | 0.10% | 0.10% |
Credit spread | 9.88% | 9.88% | 1.14% | 1.14% |
Convertible debt (Details Narra
Convertible debt (Details Narrative) | Feb. 24, 2021USD ($)$ / shares | Dec. 19, 2020USD ($)$ / shares | Nov. 30, 2020USD ($)shares$ / shares | Sep. 30, 2020USD ($)$ / shares | Nov. 30, 2021USD ($)$ / shares |
Two Thousand Twenty Series Debentures [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Maturity | mature twenty-four (24) months | ||||
Interest rate | 5.00% | ||||
Interest rate, description | The interest rate under the 2020 Series debentures will increase from 5% to 10% per annum on a prospective basis on December 19, 2020 | ||||
Conversion price | $ 7.50 | $ 11.25 | |||
Discount on offering price | 15.00% | ||||
Warrant exercise price | $ 15 | ||||
Trading price | $ 30 | ||||
Public offering aggregate amount | $ | $ 30,000,000 | ||||
Two Thousand Twenty Series Debentures [Member] | Bottom of range [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Interest rate | 5.00% | ||||
Two Thousand Twenty Series Debentures [Member] | Top of range [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Interest rate | 10.00% | ||||
Two Thousand Twenty Series One Up Debentures [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Conversion price | $ 9.50 | ||||
Fair value of convertible debentures | $ | $ 3,078,550 | ||||
Two thousand twenty series standby debentures [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Conversion price | $ 8.90 | ||||
Fair value of convertible debentures | $ | $ 8,000,000 | ||||
Two thousand twenty series standby debentures [member] | Warrants [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrant exercise price | $ 15 | ||||
Warrants value | $ | $ 2,000,000 | ||||
Warrant exercisable period | 2 years | ||||
Convertible debt | $ | $ 1,381,084 | ||||
Warrants issued | shares | 224,719 | ||||
Remaining of convertible debentures | $ | $ 6,000,000 | ||||
Two thousand twenty series standby debentures [member] | Convertible Debt [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Convertible debt | $ | $ 618,916 | ||||
Two thousand twenty series standby debentures [member] | Warrants [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Number of warrants, outstanding | shares | 224,719 | ||||
Two thousand twenty series standby debentures [member] | Bottom of range [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Conversion price | $ 7.50 | ||||
Amended EB loan [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Conversion price | $ 10.25 | ||||
Warrant exercise price | $ 15 | ||||
Amended EB loan [member] | Lender [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrant exercisable period | 3 years | ||||
Proceeds from convertible debt | $ | $ 5,000,000 |
Schedule of Measured Warrants (
Schedule of Measured Warrants (Details) - Liability Warrants [Member] - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Beginning Balance | $ 4,868,703 | $ 14,135,321 |
Issued on conversion of convertible debt | 140,880 | |
Issued in private convertible debt | 618,916 | |
Exercised | (11,404) | |
Change in fair value | (2,941,546) | (4,759,776) |
Foreign exchange | (75,846) | 122,209 |
Ending Balance | $ 1,851,311 | $ 10,246,146 |
Schedule of Outstanding Warrant
Schedule of Outstanding Warrants (Details) - Liability Warrants [Member] | 3 Months Ended | |
Nov. 30, 2021shares$ / shares | Nov. 30, 2020shares$ / shares | |
IfrsStatementLineItems [Line Items] | ||
Number of warrants, outstanding, beginning balance | shares | 1,452,843 | 2,405,369 |
Weighted average exercise price, outstanding, beginning balance | $ / shares | $ 8.96 | $ 9.60 |
Number of warrants, outstanding, Issued on conversion of convertible debt | shares | 36,666 | |
Weighted average exercise price, outstanding, Issued on conversion of convertible debt | $ / shares | $ 7.50 | |
Number of warrants, outstanding, Issued in private placement of convertible debentures | shares | 224,719 | |
Weighted average exercise price, outstanding, Issued in private placement of convertible debentures | $ / shares | $ 19.45 | |
Number of warrants, outstanding, Exercised | shares | (7,166) | |
Weighted average exercise price, outstanding, Exercised | $ / shares | $ 8.28 | |
Number of warrants, outstanding, Expired | shares | (430) | |
Weighted average exercise price, outstanding, Expired | $ / shares | $ 153.81 | |
Number of warrants, outstanding, endiing balance | shares | 1,452,843 | 2,659,158 |
Weighted average exercise price, outstanding, endiing balance | $ / shares | $ 8.96 | $ 10.39 |
Schedule of Warrants Issued and
Schedule of Warrants Issued and Outstanding (Details) | 3 Months Ended | ||||
Nov. 30, 2021shares$ / shares | Nov. 30, 2021shares$ / shares | Aug. 31, 2021shares$ / shares | Nov. 30, 2020shares$ / shares | Aug. 31, 2020shares$ / shares | |
Liability Warrants [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Number of warrants, outstanding | shares | 1,452,843 | 1,452,843 | 1,452,843 | 2,659,158 | 2,405,369 |
Warrants outstanding, Average exercise price | $ / shares | $ 8.96 | $ 8.96 | $ 10.39 | $ 9.60 | |
Warrants outstanding, Average remaining contractual life | 2 years 2 months 19 days | ||||
Equity Warrants [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Number of warrants, outstanding | shares | 3,736,396 | 3,736,396 | 3,736,396 | ||
Warrants outstanding, Average exercise price | $ / shares | $ 15 | ||||
Warrants outstanding, Average remaining contractual life | 2 years 1 month 2 days | ||||
Warrant one [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Mar. 13, 2022 | ||||
Number of warrants, outstanding | shares | 123,159 | 123,159 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 10.50 | ||||
Warrants outstanding, Average remaining contractual life | 3 months 10 days | ||||
Warrant two [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Dec. 20, 2022 | ||||
Number of warrants, outstanding | shares | 29,066 | 29,066 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 27 | ||||
Warrants outstanding, Average remaining contractual life | 1 year 18 days | ||||
Warrant three [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Mar. 20, 2023 | ||||
Number of warrants, outstanding | shares | 27,777 | 27,777 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 13.50 | ||||
Warrants outstanding, Average remaining contractual life | 1 year 3 months 18 days | ||||
Warrant four [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Mar. 30, 2023 | ||||
Number of warrants, outstanding | shares | 46,909 | 46,909 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 13.50 | ||||
Warrants outstanding, Average remaining contractual life | 1 year 3 months 29 days | ||||
Warrantn five [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Mar. 31, 2023 | ||||
Number of warrants, outstanding | shares | 17,222 | 17,222 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 13.50 | ||||
Warrants outstanding, Average remaining contractual life | 1 year 3 months 29 days | ||||
Warrant six [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | May 27, 2023 | ||||
Number of warrants, outstanding | shares | 130,304 | 130,304 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 13.50 | ||||
Warrants outstanding, Average remaining contractual life | 1 year 5 months 26 days | ||||
Warrant seven [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Jul. 8, 2024 | ||||
Number of warrants, outstanding | shares | 445,982 | 445,982 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 7.50 | ||||
Warrants outstanding, Average remaining contractual life | 2 years 7 months 9 days | ||||
Warrant eight [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Jul. 25, 2024 | ||||
Number of warrants, outstanding | shares | 401,624 | 401,624 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 7.50 | ||||
Warrants outstanding, Average remaining contractual life | 2 years 7 months 24 days | ||||
Warrant nine [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Aug. 8, 2024 | ||||
Number of warrants, outstanding | shares | 230,800 | 230,800 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 7.50 | ||||
Warrants outstanding, Average remaining contractual life | 2 years 8 months 8 days | ||||
Equity Warrant One [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Nov. 20, 2022 | ||||
Number of warrants, outstanding | shares | 224,719 | 224,719 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 15 | ||||
Warrants outstanding, Average remaining contractual life | 11 months 19 days | ||||
Equity Warrant Two [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Jan. 8, 2024 | ||||
Number of warrants, outstanding | shares | 1,868,787 | 1,868,787 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 15 | ||||
Warrants outstanding, Average remaining contractual life | 2 years 1 month 9 days | ||||
Equity Warrant Three [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Jan. 22, 2024 | ||||
Number of warrants, outstanding | shares | 522,898 | 522,898 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 15 | ||||
Warrants outstanding, Average remaining contractual life | 2 years 1 month 24 days | ||||
Equity Warrant Four [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Feb. 24, 2024 | ||||
Number of warrants, outstanding | shares | 1,058,227 | 1,058,227 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 15 | ||||
Warrants outstanding, Average remaining contractual life | 2 years 2 months 26 days | ||||
Equity Warrant Five [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Aug. 19, 2024 | ||||
Number of warrants, outstanding | shares | 49,999 | 49,999 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 15 | ||||
Warrants outstanding, Average remaining contractual life | 2 years 8 months 19 days | ||||
Equity Warrant Six [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Warrants expiry date | Sep. 15, 2024 | ||||
Number of warrants, outstanding | shares | 11,666 | 11,666 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 15 | ||||
Warrants outstanding, Average remaining contractual life | 2 years 9 months 14 days | ||||
Equity Warrants [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Number of warrants, outstanding | shares | 3,736,296 | 3,736,296 | |||
Warrants outstanding, Average exercise price | $ / shares | $ 15 |
Warrant liability (Details Narr
Warrant liability (Details Narrative) | 3 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2021USD ($)shares$ / shares | Nov. 30, 2021USD ($)shares$ / shares$ / shares | Aug. 31, 2021USD ($)shares$ / shares | Nov. 30, 2021$ / shares | Aug. 31, 2021$ / shares | Nov. 30, 2020USD ($)shares | Nov. 30, 2020$ / shares | Aug. 31, 2020USD ($)shares | Aug. 31, 2020$ / shares | |
Liability Warrants [Member] | |||||||||
IfrsStatementLineItems [Line Items] | |||||||||
Number of warrant outstanding | shares | 1,452,843 | 1,452,843 | 1,452,843 | 2,659,158 | 2,405,369 | ||||
Fair value of warrants | $ | $ 1,851,311 | $ 1,851,311 | $ 4,868,703 | $ 10,246,146 | $ 14,135,321 | ||||
Share price | $ 4.93 | $ 8.42 | |||||||
Expected dividend yield | 0.00% | ||||||||
Warrants outstanding, Average exercise price | $ 8.96 | $ 8.96 | $ 10.39 | $ 9.60 | |||||
Liability Warrants [Member] | Bottom of range [member] | |||||||||
IfrsStatementLineItems [Line Items] | |||||||||
Expected average life | 3 months 10 days | 6 months 10 days | |||||||
Exercise price | 7.50 | $ 7.50 | |||||||
Expected volatility | 70.00% | 70.00% | |||||||
Risk free interest rate | 0.76% | 0.28% | |||||||
Liability Warrants [Member] | Top of range [member] | |||||||||
IfrsStatementLineItems [Line Items] | |||||||||
Expected average life | 2 years 8 months 8 days | 2 years 11 months 8 days | |||||||
Exercise price | $ 27 | $ 27 | |||||||
Expected volatility | 85.00% | 90.00% | |||||||
Risk free interest rate | 1.22% | 0.63% | |||||||
Equity Warrants [member] | |||||||||
IfrsStatementLineItems [Line Items] | |||||||||
Number of warrant outstanding | shares | 3,736,396 | 3,736,396 | 3,736,396 | ||||||
Warrants outstanding, Average exercise price | $ 15 | $ 15 | |||||||
Proceeds from exercise of warrant | $ | $ 56,000,000 |
Schedule of Shares Issued and O
Schedule of Shares Issued and Outstanding (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Balance | $ 25,565,544 | $ 263,292 |
Shares issued on vesting of RSUs, shares | 91,635 | |
Shares issued on vesting of RSUs | 180,000 | |
Convertible debt conversion | 164,343 | |
Common shares issued on exercise of warrants | 56,079 | |
Balance | $ 25,727,292 | $ (5,211,184) |
Issued capital [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance, shares | 15,543,309 | 7,746,136 |
Balance | $ 122,741,230 | $ 69,380,807 |
Shares issued on vesting of RSUs, shares | 91,635 | 66,666 |
Shares issued on vesting of RSUs | $ 681,759 | $ 410,189 |
Convertible debt conversion, shares | 36,666 | |
Convertible debt conversion | $ 164,343 | |
Common shares issued on exercise of warrants, shares | 7,166 | |
Common shares issued on exercise of warrants | $ 56,079 | |
Balance, shares | 15,634,944 | 7,856,634 |
Balance | $ 123,422,989 | $ 70,011,418 |
Share capital (Details Narrativ
Share capital (Details Narrative) | 3 Months Ended |
Nov. 30, 2021shares | |
Disclosure of classes of share capital [abstract] | |
Shares issued on vesting of RSUs (in shares) | 91,635 |
Disclosure of Detailed Inform_9
Disclosure of Detailed Information About Number and Weighted Average Exercise Prices of Share Options (Details) | 3 Months Ended | |||
Nov. 30, 2021shares$ / shares | Nov. 30, 2021shares$ / shares$ / shares | Nov. 30, 2020shares$ / shares | Aug. 31, 2020shares | |
Stock Options | ||||
Number of stok options, Outstanding, beginning of period | shares | 692,938 | 692,938 | 253,121 | |
Weighted average exercise price, Outstanding, beginning of period | $ 11.64 | $ 12.73 | ||
Weighted average grant date fair value, Outstanding, beginning of period | $ 7.06 | $ 4.39 | ||
Options outstanding, remaining contractual term, beginning of period | 4 years 5 months 15 days | 4 years 5 months 15 days | 4 years 3 months 21 days | |
Number of stok options, Outstanding, Expired/Cancelled | shares | (2,353) | |||
Weighted average exercise price, Outstanding, Expired/Cancelled | $ 112.73 | |||
Weighted average grant date fair value, Outstanding, Expired/Cancelled | $ 29.40 | |||
Number of stok options, Outstanding, ending of period | shares | 702,938 | 702,938 | 250,768 | |
Weighted average exercise price, Outstanding, ending of period | (per share) | $ 11.61 | $ 14.82 | $ 11.79 | |
Weighted average grant date fair value, Outstanding, ending of period | $ 7 | $ 4.43 | ||
Options outstanding, remaining contractual term, ending of period | 4 years 3 months 18 days | 4 years 3 months 18 days | 4 years 21 days | |
Number of stok options, Outstanding, beginning of period | shares | 10,000 | 10,000 | ||
Weighted average exercise price, Outstanding, beginning of period | $ 9.82 | |||
Weighted average grant date fair value, Outstanding, beginning of period | $ 2.92 | |||
Number of stok options, Excersiable | shares | 181,936 | 181,936 | 209,950 | |
Weighted average exercise price, exercisable | $ 12.10 | $ 12.10 | ||
Weighted average grant date fair value, Exercisable | $ 4.36 | $ 4.36 | ||
Options exercisable, remaining contractual term, Exercisable | 2 years 5 months 4 days | 2 years 5 months 4 days |
Disclosure of Detailed Infor_10
Disclosure of Detailed Information About Options Issued and Outstanding (Details) | 3 Months Ended | ||||
Nov. 30, 2021shares$ / shares | Nov. 30, 2021shares$ / shares | Aug. 31, 2021shares$ / shares | Nov. 30, 2020shares$ / shares | Aug. 31, 2020shares$ / shares | |
IfrsStatementLineItems [Line Items] | |||||
Number of stok options, Outstanding, beginning of period | 692,938 | ||||
Weighted average exercise price | (per share) | $ 11.61 | $ 14.82 | $ 11.64 | $ 11.79 | $ 12.73 |
Weighted average remaining contractual term | 4 years 3 months 18 days | ||||
Outstanding options | 702,938 | 702,938 | 692,938 | 250,768 | 253,121 |
Option one [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Dec. 10, 2021 | ||||
Weighted average exercise price | (per share) | $ 71.84 | $ 93.30 | |||
Weighted average remaining contractual term | 10 days | ||||
Outstanding options | 1,564 | 1,564 | |||
Option two [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Jun. 30, 2022 | ||||
Weighted average exercise price | (per share) | $ 118.15 | $ 153.45 | |||
Weighted average remaining contractual term | 6 months 29 days | ||||
Outstanding options | 4,428 | 4,428 | |||
Option three [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Apr. 1, 2023 | ||||
Weighted average exercise price | (per share) | $ 7.91 | $ 11.25 | |||
Weighted average remaining contractual term | 1 year 3 months 29 days | ||||
Outstanding options | 84,165 | 84,165 | |||
Option four [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Oct. 31, 2023 | ||||
Weighted average exercise price | (per share) | $ 7.91 | $ 11.25 | |||
Weighted average remaining contractual term | 1 year 11 months 1 day | ||||
Outstanding options | 64,997 | 64,997 | |||
Option five [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Jan. 29, 2025 | ||||
Weighted average exercise price | (per share) | $ 76.43 | $ 106.50 | |||
Weighted average remaining contractual term | 3 years 2 months 1 day | ||||
Outstanding options | 46 | 46 | |||
Option six [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Aug. 25, 2025 | ||||
Weighted average exercise price | (per share) | $ 76.43 | $ 106.50 | |||
Weighted average remaining contractual term | 3 years 8 months 26 days | ||||
Outstanding options | 340 | 340 | |||
Option seven [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Sep. 23, 2025 | ||||
Weighted average exercise price | (per share) | $ 76.43 | $ 106.50 | |||
Weighted average remaining contractual term | 3 years 9 months 25 days | ||||
Outstanding options | 11 | 11 | |||
Option eight [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Feb. 10, 2026 | ||||
Weighted average exercise price | (per share) | $ 76.43 | $ 106.50 | |||
Weighted average remaining contractual term | 4 years 2 months 12 days | ||||
Outstanding options | 1,443 | 1,443 | |||
Option nine [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | May 19, 2026 | ||||
Weighted average exercise price | (per share) | $ 76.43 | $ 106.50 | |||
Weighted average remaining contractual term | 4 years 5 months 19 days | ||||
Outstanding options | 4 | 4 | |||
Option ten [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | May 23, 2026 | ||||
Weighted average exercise price | (per share) | $ 76.43 | $ 106.50 | |||
Weighted average remaining contractual term | 4 years 5 months 23 days | ||||
Outstanding options | 9 | 9 | |||
Option eleven [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Jun. 24, 2026 | ||||
Weighted average exercise price | (per share) | $ 12.21 | $ 15.04 | |||
Weighted average remaining contractual term | 4 years 6 months 25 days | ||||
Outstanding options | 375,188 | 375,188 | |||
Option twelve [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Jul. 1, 2026 | ||||
Weighted average exercise price | (per share) | $ 12 | $ 14.87 | |||
Weighted average remaining contractual term | 4 years 7 months 2 days | ||||
Outstanding options | 10,000 | 10,000 | |||
Option thirteen [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Jul. 2, 2026 | ||||
Weighted average exercise price | (per share) | $ 12.21 | $ 15.08 | |||
Weighted average remaining contractual term | 4 years 7 months 2 days | ||||
Outstanding options | 57,762 | 57,762 | |||
Option fourteen [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Aug. 20, 2026 | ||||
Weighted average exercise price | (per share) | $ 6.05 | $ 7.78 | |||
Weighted average remaining contractual term | 4 years 8 months 19 days | ||||
Outstanding options | 32,500 | 32,500 | |||
Option fifteen [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Mar. 3, 2027 | ||||
Weighted average exercise price | (per share) | $ 76.43 | $ 106.50 | |||
Weighted average remaining contractual term | 5 years 3 months 3 days | ||||
Outstanding options | 1,256 | 1,256 | |||
Option sixteen [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Jul. 31, 2027 | ||||
Weighted average exercise price | (per share) | $ 76.43 | $ 106.50 | |||
Weighted average remaining contractual term | 5 years 8 months 1 day | ||||
Outstanding options | 159 | 159 | |||
Option seventeen [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Nov. 3, 2027 | ||||
Weighted average exercise price | (per share) | $ 76.43 | $ 106.50 | |||
Weighted average remaining contractual term | 5 years 11 months 4 days | ||||
Outstanding options | 133 | 133 | |||
Option eighteen [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Nov. 7, 2029 | ||||
Weighted average exercise price | (per share) | $ 5.38 | $ 7.50 | |||
Weighted average remaining contractual term | 7 years 11 months 8 days | ||||
Outstanding options | 46,251 | 46,251 | |||
Option nineteen [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Apr. 20, 2030 | ||||
Weighted average exercise price | (per share) | $ 5.06 | $ 7.05 | |||
Weighted average remaining contractual term | 8 years 4 months 20 days | ||||
Outstanding options | 666 | 666 | |||
Option twenty [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Dec. 2, 2030 | ||||
Weighted average exercise price | (per share) | $ 7.38 | $ 9.50 | |||
Weighted average remaining contractual term | 9 years 3 days | ||||
Outstanding options | 1,333 | 1,333 | |||
Option twenty one [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Jun. 14, 2031 | ||||
Weighted average exercise price | (per share) | $ 11.69 | $ 14.20 | |||
Weighted average remaining contractual term | 9 years 6 months 14 days | ||||
Outstanding options | 10,683 | 10,683 | |||
Option twenty two [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options, expiry date | Nov. 23, 2031 | ||||
Weighted average exercise price | (per share) | $ 9.82 | $ 12.45 | |||
Weighted average remaining contractual term | 9 years 11 months 26 days | ||||
Outstanding options | 10,000 | 10,000 |
Stock options (Details Narrativ
Stock options (Details Narrative) | 3 Months Ended | ||||
Nov. 30, 2021USD ($)shares | Nov. 30, 2020USD ($)shares | Oct. 06, 2021 | Aug. 31, 2021shares | Aug. 31, 2020shares | |
IfrsStatementLineItems [Line Items] | |||||
Number of common shares reserved and available for grant, percentage | 10.00% | ||||
Number of stok options, outstanding | 702,938 | 250,768 | 692,938 | 253,121 | |
Number of stok options, exercisable | 181,936 | 209,950 | |||
Shares based compensation expenses | $ | $ 841,712 | $ 49,054 | |||
Board of Directors [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Options exercisable, remaining contractual term, end of period | 10 years |
Disclosure of Detailed Infor_11
Disclosure of Detailed Information About Restricted Stock Units Outstanding (Details) - Restricted stock units [member] - shares | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Number of warrants, outstanding, beginning balance | 490,174 | 402,372 |
Number of warrants, outstanding, Granted | 100,626 | 322,547 |
Number of warrants, outstanding, Vested | (91,635) | (66,666) |
Number of warrants, outstanding, Cancelled | (5,034) | |
Number of warrants, outstanding, endiing balance | 494,131 | 658,253 |
Restricted share units (Details
Restricted share units (Details Narrative) | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2021shares | Nov. 30, 2021USD ($)shares | Nov. 30, 2020USD ($)shares | |
IfrsStatementLineItems [Line Items] | |||
Share-based compensation expense | $ | $ 1,321,038 | $ 1,088,638 | |
Restricted stock units [member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of RSU's aggregate shares | 1,548,174 | ||
Outstanding RSU's, granted | 100,626 | 322,547 | |
Share-based compensation expense | $ | $ 479,326 | $ 1,039,584 | |
Restricted stock units [member] | Directors [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Outstanding RSU's, granted | 100,626 |
Capital management (Details Nar
Capital management (Details Narrative) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 |
Capital Management | ||
Shareholders' equity before non-controlling interests | $ 25,559,149 | $ 25,422,165 |
Commitments and contingencies (
Commitments and contingencies (Details Narrative) - USD ($) | 1 Months Ended | ||||
Apr. 30, 2020 | Nov. 30, 2021 | Aug. 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||||
Convertible debt, non-current | $ 5,628,060 | $ 9,037,069 | |||
Allinsports [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Convertible debt, non-current | $ 3,728,278 | ||||
Allinsports [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Acquisitions percentage | 100.00% | ||||
Number of shares issuance | 966,667 | 966,667 | |||
Payment of share holder | $ 1,200,000 | $ 20,000,000 | $ 2,625,657 | ||
Damages sought value | $ 2,890,000 |
Schedule of Loss on Disposal (D
Schedule of Loss on Disposal (Details) | Nov. 03, 2020USD ($) |
Discontinued Operations | |
Accounts payable assumed | $ 101,322 |
Deferred purchase consideration of LGR | 333,503 |
Fair value of contingent consideration | 1,321,281 |
Total disposal consideration | 1,756,106 |
Carrying amount of net assets sold | (2,334,303) |
Loss on disposal before income tax and reclassification of foreign currency translation reserve | (578,197) |
Reclassification of foreign currency translation reserve | (100,734) |
Loss on disposal of Motorsports | $ (678,931) |
Disclosure of Net Asset (Detail
Disclosure of Net Asset (Details) | Nov. 03, 2020USD ($) |
Discontinued Operations | |
Cash and cash equivalents | $ (24,348) |
Accounts and other receivables | 126,590 |
Government remittances | 25,095 |
Prepaid expenses and other | 24,113 |
Property and equipment | 47,416 |
Intangible assets | 3,066,457 |
Total assets of disposal group | 3,265,323 |
Accounts payable | 508,881 |
Accrued liabilities | 422,139 |
Total liabilities of disposal group | 931,020 |
Net assets of disposal group | $ 2,334,303 |
Schedule of Discontinued Operat
Schedule of Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Advertising revenue | $ 14,349,478 | $ 7,466,391 |
Net loss from discontinued operations | (9,656) | (950,215) |
Motorsports Group [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Advertising revenue | 90,934 | |
Salaries and wages | 212,546 | |
Consulting | 267,933 | |
Professional fees | 22,681 | |
Sponsorships and tournaments | 203,637 | |
Advertising and promotion | 1,740 | |
Office and general | 7,374 | |
Technology expenses | 86,590 | |
Amortization and depreciation | 201,335 | |
Interest expense | 572 | |
(Gain) loss on foreign exchange | 9,656 | 36,741 |
Net loss from discontinued operations | $ (9,656) | $ (950,215) |
Schedule of Segment Reporting (
Schedule of Segment Reporting (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
External sales | $ 14,349,478 | $ 7,466,391 | |
Segment loss | (4,492,940) | (4,090,033) | |
Central administration costs | 2,828,505 | 3,309,789 | |
Other gains and losses | (6,216,953) | (3,473,280) | |
Finance costs | 214,608 | 408,089 | |
Income (loss) before tax | (1,319,100) | (4,334,631) | |
Income tax | |||
Share of net loss of associate | (66,686) | ||
Discontinued operations | (9,656) | (1,629,146) | |
Non-controlling interest in net loss | (24,764) | 31,030 | |
Net income (loss) | (1,353,520) | (5,999,433) | |
Assets | 61,138,576 | $ 67,462,847 | |
Long-term assets | 34,079,988 | 35,905,165 | |
North America Area [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 58,654,084 | 64,943,049 | |
Long-term assets | 33,994,329 | 35,796,241 | |
European union [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 2,484,492 | 2,519,798 | |
Long-term assets | 85,659 | $ 108,924 | |
Gaming [member] | |||
IfrsStatementLineItems [Line Items] | |||
External sales | 2,537,394 | 762,941 | |
Segment loss | (2,511,025) | (2,697,438) | |
Central administration costs | |||
Other gains and losses | 1,006,452 | (2,352) | |
Finance costs | 17,357 | 59,571 | |
Income (loss) before tax | (3,534,834) | (2,754,657) | |
Income tax | |||
Share of net loss of associate | |||
Discontinued operations | (9,656) | (950,215) | |
Non-controlling interest in net loss | |||
Net income (loss) | (3,544,490) | (3,704,872) | |
Media [member] | |||
IfrsStatementLineItems [Line Items] | |||
External sales | 11,812,084 | 6,703,450 | |
Segment loss | (1,981,915) | (1,392,595) | |
Central administration costs | |||
Other gains and losses | (1,643) | (3,693) | |
Finance costs | 375 | 186,990 | |
Income (loss) before tax | (1,980,647) | (1,575,892) | |
Income tax | |||
Share of net loss of associate | |||
Discontinued operations | |||
Non-controlling interest in net loss | |||
Net income (loss) | (1,980,647) | (1,575,892) | |
Corporate and other [member] | |||
IfrsStatementLineItems [Line Items] | |||
External sales | |||
Segment loss | |||
Central administration costs | 2,828,505 | 3,309,789 | |
Other gains and losses | (7,221,762) | (3,467,235) | |
Finance costs | 196,876 | 161,528 | |
Income (loss) before tax | 4,196,381 | (4,082) | |
Income tax | |||
Share of net loss of associate | (66,686) | ||
Discontinued operations | (678,931) | ||
Non-controlling interest in net loss | (24,764) | 31,030 | |
Net income (loss) | $ 4,171,617 | $ (718,669) |
Schedule of Compensation Award
Schedule of Compensation Award to Key Management (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Related party transactions [abstract] | ||
Total compensation paid to key management | $ 347,256 | $ 534,738 |
Share based payments | $ 153,671 | $ 895,814 |
Related party transactions an_3
Related party transactions and balances (Details Narrative) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 | Mar. 09, 2020 |
IfrsStatementLineItems [Line Items] | |||
Amount due to related parties | $ 0 | $ 33,349 | |
Business combination agreement [member] | |||
IfrsStatementLineItems [Line Items] | |||
License fees percent | 50.00% |
Schedule of Gross Trade Account
Schedule of Gross Trade Accounts Receivable and Allowance for Doubtful Accounts (Details) | Nov. 30, 2021USD ($) |
IfrsStatementLineItems [Line Items] | |
Trade accounts receivable | $ 11,096,122 |
Allowance for doubtful accounts | $ 1,084,305 |
% Allowance | 10.00% |
0 - 30 [member] | |
IfrsStatementLineItems [Line Items] | |
Trade accounts receivable | $ 8,579,042 |
Allowance for doubtful accounts | $ 3,500 |
% Allowance | 0.00% |
31 - 60 [member] | |
IfrsStatementLineItems [Line Items] | |
Trade accounts receivable | $ 250,750 |
Allowance for doubtful accounts | $ 1,500 |
% Allowance | 1.00% |
61 - 90 [member] | |
IfrsStatementLineItems [Line Items] | |
Trade accounts receivable | $ 235,950 |
Allowance for doubtful accounts | |
% Allowance | 0.00% |
91+ [member] | |
IfrsStatementLineItems [Line Items] | |
Trade accounts receivable | $ 2,030,380 |
Allowance for doubtful accounts | $ 1,079,305 |
% Allowance | 53.00% |
Schedule of Funding Available F
Schedule of Funding Available From Operations and Other Sources (Details) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Accrued liabilities | $ 35,411,284 | $ 41,897,303 | ||
Players liability account | 360,372 | 331,528 | ||
Lease obligation | 524,294 | 587,551 | $ 527,508 | $ 572,148 |
Long-term debt | 5,628,059 | |||
Promissory notes payable | 753,652 | 821,948 | ||
Convertible debt | 2,557,504 | $ 914,427 | ||
Less than one year [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Accounts payable | 9,610,276 | |||
Accrued liabilities | 8,568,864 | |||
Players liability account | 360,372 | |||
Lease obligation | 198,663 | |||
Long-term debt | 69,507 | |||
Promissory notes payable | 753,652 | |||
Convertible debt | 2,557,505 | |||
One to two years [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Accounts payable | ||||
Accrued liabilities | ||||
Players liability account | ||||
Lease obligation | 325,631 | |||
Long-term debt | ||||
Promissory notes payable | ||||
Convertible debt | ||||
Two to five years [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Accounts payable | ||||
Accrued liabilities | ||||
Players liability account | ||||
Lease obligation | ||||
Long-term debt | ||||
Promissory notes payable | ||||
Convertible debt | $ 5,628,059 |
Schedule of Fair Value Measurem
Schedule of Fair Value Measurement (Details) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Cash | $ 9,678,803 | $ 15,305,996 | $ 2,726,563 | $ 5,243,278 |
Restricted cash | 360,372 | 331,528 | ||
Accounts and other receivables | 10,061,734 | 8,646,807 | ||
Government remittances | 1,195,102 | 1,070,216 | ||
Publisher advance | 3,055,401 | 3,197,102 | ||
Financial assets | 61,138,576 | 67,462,847 | ||
Accounts payable | 9,610,276 | 10,403,665 | ||
Accrued liabilities | 8,568,864 | 5,722,470 | ||
Players liability account | 360,372 | 331,528 | ||
Arbitration reserve | 3,728,278 | 6,468,330 | ||
Long-term debt | 5,628,059 | |||
Promissory notes payable | 753,652 | 821,948 | ||
Warrant liability | 1,851,311 | 4,868,703 | ||
Convertible debt | 8,185,564 | 9,951,496 | ||
Financial liabilities | 35,411,284 | 41,897,303 | ||
FVTPL mandatorily measured [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cash | ||||
Restricted cash | ||||
Accounts and other receivables | ||||
Government remittances | ||||
Publisher advance | ||||
Investment at FVTPL | 2,629,851 | 2,629,851 | ||
Financial assets | 2,629,851 | 2,629,851 | ||
Accounts payable | ||||
Accrued liabilities | ||||
Players liability account | ||||
Arbitration reserve | ||||
Long-term debt | ||||
Promissory notes payable | ||||
Warrant liability | 1,851,311 | 4,868,703 | ||
Convertible debt | ||||
Financial liabilities | 1,851,311 | 4,868,703 | ||
Amortized cost [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cash | 9,678,803 | 15,305,996 | ||
Restricted cash | 360,372 | 331,528 | ||
Accounts and other receivables | 10,061,734 | 8,646,807 | ||
Government remittances | 1,195,102 | 1,070,216 | ||
Publisher advance | 3,631,052 | 4,534,218 | ||
Investment at FVTPL | ||||
Financial assets | 24,927,063 | 29,888,765 | ||
Accounts payable | 9,610,276 | 10,403,665 | ||
Accrued liabilities | 8,568,864 | 5,722,470 | ||
Players liability account | 360,372 | 331,528 | ||
Arbitration reserve | ||||
Long-term debt | 69,507 | 96,664 | ||
Promissory notes payable | 753,652 | 821,948 | ||
Warrant liability | ||||
Convertible debt | ||||
Financial liabilities | 19,362,671 | 17,376,275 | ||
FVTPL Designated [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Accounts payable | ||||
Accrued liabilities | ||||
Players liability account | ||||
Arbitration reserve | 3,728,278 | 6,468,330 | ||
Long-term debt | ||||
Promissory notes payable | ||||
Warrant liability | ||||
Convertible debt | 8,185,564 | 9,951,496 | ||
Financial liabilities | $ 11,913,842 | $ 16,419,826 |
Schedule of Hierarchy Levels of
Schedule of Hierarchy Levels of Fair Value (Details) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Warrant liability | $ 1,851,311 | $ 4,868,703 |
Convertible debt | 8,185,564 | 9,951,496 |
Investment at FVTPL | 2,629,851 | 2,629,851 |
Level 1 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Warrant liability | ||
Convertible debt | ||
Investment at FVTPL | ||
Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Warrant liability | 1,851,311 | 4,868,703 |
Convertible debt | ||
Investment at FVTPL | ||
Level 3 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Warrant liability | ||
Convertible debt | 8,185,564 | 9,951,496 |
Investment at FVTPL | $ 2,629,851 | $ 2,629,851 |
Financial instruments and ris_3
Financial instruments and risk management (Details Narrative) | Nov. 30, 2021 | Aug. 31, 2021 | Nov. 30, 2020 |
One customer [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue credit risk, percent | 61.00% | 58.00% | |
One customer [member] | Accounts receivable [member] | Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Significant unobservable input, assets | 10 | ||
One customer [member] | Accounts and other receivable [member] | |||
IfrsStatementLineItems [Line Items] | |||
Significant unobservable input, assets | 13 | 13 |