The Company recognizes licensing revenue on a pro-rated basis over the term of the Licensing Agreement (Note 9) and additional licensing fees as they are earned. As of August 31 2017 the company had received all of the pre-defined Licensing payments to August 31 2017 for cash receipts of $50,000
of Licensing fees and $20,392
of additional fees. During the year ended August 31, 2017, $25,417
of the $50,000
was included (2016 $7,500) on a pro-rated basis and $20,392
(2016 $NIL) of additional fees as licensing revenue.