|3 Months Ended|
Nov. 30, 2018
|Notes to Financial Statements|
|Note 9: Subsequent Events||
The Company granted 60,000 incentive stock options to employees with a weighted average grant-date exercise price of $2.62, which vest over a service period of 48 months. The stock options were valued using the Black-Scholes option-pricing model.
The Company issued 1,285,245 shares of common stock as repayment of $1,780,606 in principal and $139,300 in accrued interest of convertible notes.
On December 7, 2018, the Board of Directors adopted a resolution providing for the award on December 11, 2018, to two of its independent directors Sean Higgins and Whitney White, of 32,895 shares for services each, as part of their compensation under their Director Agreements for the 1 year period ending as of September 29, 2019; 50% of the shares will vest on March 28, 2019, following the completion of six months of service, the remaining 50% of the shares will vest on September 27, 2019 following the completion of another year of service under their Director agreements through that date.
On December 20, 2018, the Company entered into settlement agreements with its institutional investors relating to technical defaults by the Company in failing to meet deadlines set forth in agreements between the Company and the investors for filing a registration statement and for having the registration statement declared effective by the SEC. Under the settlement agreements, the Company increased the principal amount of the notes payable to the investors by $888,888 in full settlement of the previously accrued $3.5 million default amount thereby decreasing the total liabilities reported on the Company’s November 30, 2018, and August 31, 2018, balance sheet by $2.6 million, respectively.
Management has evaluated subsequent events pursuant to the issuance of the interim unaudited consolidated financial statements and has determined that other than listed above, no other subsequent events exist through the date of this filing.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef