LOANS PAYABLE AND ACCRUED LIABILITIES, RELATED PARTY |
12 Months Ended |
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Aug. 31, 2022 | |
| Debt Disclosure [Abstract] | |
| LOANS PAYABLE AND ACCRUED LIABILITIES, RELATED PARTY | NOTE 6– LOANS PAYABLE AND ACCRUED LIABILITIES, RELATED PARTY
On July 22, 2021 the Company entered into a Line of Credit Agreement with Innovative Digital Investors Emerging Technology, L.P. (“IDI”), a limited partnership controlled by Jonathan Bates, the Company’s Chairman, and Raymond Mow, the Company’s Chief Financial Officer and a Director. The Line of Credit Agreement was amended and restated several times (as amended and restated, the “LOC Agreement”). The LOC Agreement, as most recently amended, provides for loans of up to $3,000,000 at the request of the Company to finance the purchase of equipment necessary for the operation of the Company’s business, and related working capital. Loans under the LOC Agreement accrue interest at fifteen percent (15%) per annum, compounded on a 30/360 monthly basis until the loans have been repaid in full.
On August 31, 2022, the Company issued shares of Series A Convertible Preferred Stock to IDI. in satisfaction of all outstanding indebtedness of $3,039,662, comprised of $2,744,108 in principal and $295,554 in interest. See Note 7. Stockholders’ Equity
As of August 31, 2022, and August 31, 2021, the Company owed $-0- and $277,296, respectively, on the LOC. Additionally, these loans accrue interest at the rate of 15% percent per annum. As of August 31, 2022, and August 31, 2021, accrued interest was $-0- and $4,505, respectively.
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