|12 Months Ended|
Aug. 31, 2020
Note 12: Related Parties
J. Stephen Holmes, our non-employee Sales Manager, is an advisor to and significant shareholder of the Company , when giving effect to unexercised Preferred Options convertible into shares of the Company’s common stock. On June 6, 2019, the Company advanced $325,000 in cash to Mr. Holmes as payment for consulting services. On July 18, 2019, Mr. Holmes repaid the advance by returning 558,132 shares of common stock valued at $0.58 per share. The Company classified these shares as treasury stock, which it retired in Fiscal 2020.
The Company incurred $750,000 in professional fees for management consulting services in the years ended August 31, 2020 and 2019, respectively.
On December 23, 2019, the Company issued 428 shares to each of Sean Higgins and Whitney White, both directors of the Company at the time of the share issuance, in settlement of shares promised in December 2018 but not issued. The fair value on the date issued for the combined issuance of 856 shares was $75,000.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef