Quarterly report pursuant to Section 13 or 15(d)

Organization, Business and Going Concern

Organization, Business and Going Concern
6 Months Ended
Feb. 28, 2017
Organization, Business and Going Concern [Text Block]

Organization, Business and Going Concern


The Company was formed on December 9, 2004 under the laws of the State of Nevada as an independent oil and gas company engaged in the exploration, development and acquisition of oil and gas properties in the United States and Canada. In March of 2014, the Company began its entry into the medicinal marijuana and alternative health and wellness business and discontinued its involvement in the oil and gas business in November 2014. In May 2016, the Company also commenced out-licensing its patented technology for the purpose of entering into the US regulated medical and adult use cannabis edibles marketplace. The Company has its office in Kelowna, BC, Canada.


The Company’s unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has a net loss attributable to its shareholders of $843,227 for the six months ended February 28, 2017 (2016: $642,312) and at February 28, 2017 had a deficit accumulated since its inception of $12,143,889 (August 31, 2016: $11,300,662). The Company had a working capital balance of $470,145 as at February 28, 2017 with net cash used in operating activities of $589,072 during the six months ended Febraury 28, 2017. The Company requires additional funds to maintain its operations and developments. These conditions raise substantial doubt about our Company’s ability to continue as a going concern. Management’s plans in this regard are to continue to raise equity and debt financing as required, but there is no certainty that such financing will be available or that it will be available at acceptable terms. The outcome of these matters cannot be predicted at this time and the financing environment is difficult.


These unaudited interim consolidated financial statements do not include any adjustments to reflect the future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result from the outcome of this uncertainty.