Cover
Cover - shares | 3 Months Ended | |
Nov. 30, 2023 | Jan. 10, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Nov. 30, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --08-31 | |
Entity File Number | 333-127953 | |
Entity Registrant Name | SOLARWINDOW TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001071840 | |
Entity Tax Identification Number | 59-3509694 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 9375 E. Shea Blvd. | |
Entity Address, Address Line Two | Suite 107-B | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85260 | |
City Area Code | 800 | |
Local Phone Number | 213-0689 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 53,198,399 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Nov. 30, 2023 | Aug. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 135,020 | $ 492,610 |
Short-term investments | 5,300,000 | 5,500,000 |
Deferred research and development costs | 103,633 | 56,698 |
Prepaid expenses and other current assets | 320,319 | 241,688 |
Current assets of discontinued operations | 13,775 | 13,522 |
Total current assets | 5,872,746 | 6,304,498 |
Property and Equipment, net of accumulated depreciation of $128,721 and $125,127, respectively | 1,311,688 | 1,315,282 |
Total assets | 7,184,434 | 7,619,780 |
Current liabilities | ||
Accounts payable and accrued expenses | 167,336 | 114,092 |
Related party payables | 24,583 | 37,025 |
Current liabilities of discontinued operations | 139,646 | 136,109 |
Total current liabilities | 331,565 | 287,226 |
Total liabilities | 331,565 | 287,226 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock: $0.10 par value; 1,000,000 shares authorized, no shares issued and outstanding | ||
Common stock: $0.001 par value; 300,000,000 shares authorized, 53,198,399 shares issued and outstanding at November 30, 2023 and August 31, 2023 | 53,198 | 53,198 |
Additional paid-in capital | 82,758,599 | 82,735,384 |
Accumulated other comprehensive income (loss) | (79,687) | (78,159) |
Retained deficit | (75,879,241) | (75,377,869) |
Total stockholders' equity | 6,852,869 | 7,332,554 |
Total liabilities and stockholders' equity | $ 7,184,434 | $ 7,619,780 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Nov. 30, 2023 | Aug. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Property and equipment, net of accumulated depreciation | $ 128,721 | $ 125,127 |
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 53,198,399 | 53,198,399 |
Common stock, shares outstanding | 53,198,399 | 53,198,399 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Income Statement [Abstract] | ||
Revenue | ||
Operating expenses | ||
Selling, general and administrative | 451,501 | 384,484 |
Research and development | 116,696 | 216,566 |
Total operating expenses | 568,197 | 601,050 |
Loss from operations | (568,197) | (601,050) |
Other income (expense) | ||
Interest income | 68,695 | 42,013 |
Total other income (expense) | 68,695 | 42,013 |
Net loss from continuing operations | (499,502) | (559,037) |
Net loss from discontinued operations | (1,870) | (167,120) |
Net loss | (501,372) | (726,157) |
Other comprehensive income (loss) | ||
Foreign currency translation gain/(loss) | (1,528) | (5,431) |
Comprehensive income (loss) | $ (502,900) | $ (731,588) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Income Statement [Abstract] | ||
Loss per Share from continuing operations basic | $ (0.01) | $ (0.01) |
Loss per Share from continuing operations diluted | (0.01) | (0.01) |
Loss per Share from discontinued operations basic | 0 | 0 |
Loss per Share from discontinued operations diluted | 0 | 0 |
Loss per Share basic | (0.01) | (0.01) |
Loss per Share diluted | $ (0.01) | $ (0.01) |
Weighted average number of common shares outstanding - basic | 53,198,399 | 53,198,399 |
Weighted average number of common shares outstanding - diluted | 53,198,399 | 53,198,399 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Aug. 31, 2022 | $ 53,198 | $ 82,576,002 | $ (73,631) | $ (72,981,474) | $ 9,574,095 |
Beginning balance, shares at Aug. 31, 2022 | 53,198,399 | ||||
Stock based compensation due to common stock purchase options | 85,200 | 85,200 | |||
Foreign currency translation adjustment | (5,431) | (5,431) | |||
Net loss | (726,157) | (726,157) | |||
Ending balance, value at Nov. 30, 2022 | $ 53,198 | 82,661,202 | (79,062) | (73,707,631) | 8,927,707 |
Ending balance, shares at Nov. 30, 2022 | 53,198,399 | ||||
Beginning balance, value at Aug. 31, 2023 | $ 53,198 | 82,735,384 | (78,159) | (75,377,869) | 7,332,554 |
Beginning balance, shares at Aug. 31, 2023 | 53,198,399 | ||||
Stock based compensation due to common stock purchase options | 23,215 | 23,215 | |||
Foreign currency translation adjustment | (1,528) | (1,528) | |||
Net loss | (501,372) | (501,372) | |||
Ending balance, value at Nov. 30, 2023 | $ 53,198 | $ 82,758,599 | $ (79,687) | $ (75,879,241) | $ 6,852,869 |
Ending balance, shares at Nov. 30, 2023 | 53,198,399 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Cash flows from operating activities | ||
Loss from continuing operations | $ (499,502) | $ (559,037) |
Loss from discontinued operations | (1,870) | (167,120) |
Adjustments to reconcile net loss to net cash flows used in operating activities: | ||
Depreciation | 3,594 | 3,927 |
Stock based compensation expense | 23,215 | 85,200 |
Changes in operating assets and liabilities: | ||
Deferred research and development costs | (46,935) | (5,327) |
Prepaid expenses and other assets | (78,650) | 68,051 |
Accounts payable and accrued expenses | 55,000 | 39,895 |
Related party payable | (12,442) | 64,964 |
Net cash used in operating activities | (557,590) | (469,447) |
Cash flows from investing activities | ||
Redemption of short-term investments | 200,000 | |
Net cash provided by (used in) investing activities | 200,000 | |
Effect of exchange rate changes on cash and cash equivalents | (500) | |
Net increase (decrease) in cash and cash equivalents | (357,590) | (469,947) |
Cash and cash equivalents at beginning of period | 492,610 | 8,077,849 |
Cash and cash equivalents at end of period | $ 135,020 | $ 7,607,902 |
Organization
Organization | 3 Months Ended |
Nov. 30, 2023 | |
Accounting Policies [Abstract] | |
Organization | NOTE 1 – Organization Organization SolarWindow Technologies, Inc. was incorporated in the State of Nevada on May 5, 1998 (“ SWT Company OPV On August 24, 2020, SolarWindow Technologies, Inc. formed wholly owned SolarWindow Asia (USA) Corp., a Nevada Corporation, as the holding company for SolarWindow Asia Co. Ltd., (the “ Korean Subsidiary Liquidity The Company has not generated any revenue since inception and has sustained recurring losses and negative cash flows from operations since inception. We expect to incur losses as we continue to develop and further refine and promote our technologies and potential product applications. As of November 30, 2023, the Company had $ 5,435,020 5,541,181 |
Interim Statement Presentation
Interim Statement Presentation | 3 Months Ended |
Nov. 30, 2023 | |
Interim Statement Presentation | |
Interim Statement Presentation | NOTE 2 – Interim Statement Presentation Basis of Presentation and Use of Estimates The accompanying unaudited interim consolidated financial statements of SolarWindow Technologies, Inc. and its controlled subsidiary companies (collectively, the “ Company SEC U.S. GAAP The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Actual results may differ from those estimates. The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments (including normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s consolidated financial position as of November 30, 2023, results of operations, stockholders’ equity and cash flows for the three months ended November 30, 2023, and 2022. The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. The Company considers its accounting policies relating to stock-based compensation to be the most significant accounting policy that involves management estimates and judgments. The Company has made accounting estimates based on the facts and circumstances available as of the reporting date. Actual amounts could differ from these estimates, and such differences could be material. These consolidated financial statements presented are those of SolarWindow Technologies, Inc. and its wholly owned subsidiaries, SolarWindow Asia (USA) Corp., and SolarWindow Asia Co. Ltd. All significant intercompany balances and transactions have been eliminated. As more fully described in Note 3, on January 13, 2023, the Board determined that it is in the best interests of the Company to discontinue operations in South Korea and to dissolve the Korean Subsidiary. In accordance with applicable accounting guidance, the results of the Korean Subsidiary are presented as discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss and, as such, have been excluded from continuing operations. Further, the Company reclassified the assets and liabilities of the Korean Subsidiary as assets and liabilities of discontinued operations in the Consolidated Balance Sheet as of August 31, 2022. The Consolidated Statements of Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. Information regarding the Company’s significant accounting policies is contained in Note 2, “Summary of significant accounting policies,” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended August 31, 2023. Presented below and in the following notes is supplemental information that should be read in conjunction with “Notes to Financial Statements” in the Annual Report. Fiscal quarter The Company’s quarterly periods end on November 30, February 28, May 31, and August 31. The Company’s first quarter in fiscal 2024 and 2023 ended on November 30, 2023, and 2022, respectively. Cash and Highly Liquid Investments Cash includes cash on hand and highly liquid investments with original maturities of three months or less from the date of purchase. The Company had $ 5,435,020 127,979 5,307,041 5,239,510 Schedule of cash and highly liquid investments November 30, August 31, 2023 2023 Cash $ 135,020 $ 492,610 Short-term investments 5,300,000 5,500,000 Total cash and short-term investments $ 5,435,020 $ 5,992,610 Short-term investments The Company determines the balance sheet classification of its investments at the time of purchase and evaluates the classification at each balance sheet date. Money market funds, certificates of deposit, and time deposits with maturities of greater than three months but no more than twelve months are carried at cost, which approximates fair value and are recorded in the consolidated balance sheets in short-term investments. As of November 30, 2023, short-term investments consist of a 12-month $4,000,000 fixed-term deposit earning interest of 5.3%, and a 12-month $1,300,000 fixed term deposit earning interest of 4.25% purchased in February 2023 and which $200,000 was redeemed during the three months ended November 30, 2023. Accounting Pronouncements The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable, the Company has not identified any standards that the Company believes merit further discussion. Recent accounting pronouncements not yet adopted None. Recently adopted accounting pronouncements None. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Nov. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 3 – Discontinued Operations On January 13, 2023, the Board determined that it is in the best interests of the Company to discontinue operations in South Korea and to dissolve the Korean Subsidiary. The Company is working to dispose the Korean Subsidiary other than by sale in accordance with Accounting Standards Codification (“ASC”) 360-10-45-15, Long-Lived Assets to Be Disposed of Other Than by Sale. In accordance with ASC 205-20, Discontinued Operations, the results of the Korean Subsidiary are presented as discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss, and, as such, have been excluded from continuing operations. Further, the Company reclassified the assets and liabilities of the Korean Subsidiary as assets and liabilities of discontinued operations in the Consolidated Balance Sheet as of August 31, 2022. The Consolidated Statements of Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. The following table summarizes the significant items included in income from discontinued operations, net of tax in the Consolidated Statement of Operations and Comprehensive Loss for the three months ended November 30, 2023 and 2022: Schedule of statement of operations and comprehensive loss Three Months Ended November 30, 2023 2022 Operating expenses Selling, general and administrative $ 1,870 $ 150,876 Research and development - 16,253 Total operating expenses 1,870 167,129 Other income Interest income - 9 Net loss from discontinued operations $ (1,870 ) (167,120 ) The following table summarizes the carrying value of the significant classes of assets and liabilities classified as discontinued operations as of November 30, 2023 and August 31, 2023: Schedule of significant classes of assets and liabilities November 30, 2023 August 31, 2023 Current assets Prepaid expenses and other current assets $ 13,775 $ 13,522 Total current assets 13,775 13,522 Total assets $ 13,775 $ 13,522 Current liabilities Accounts payable and accrued expenses $ 139,646 $ 136,109 Total current liabilities $ 139,646 $ 136,109 The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows for all periods presented. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Nov. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | NOTE 4 - Net Income (Loss) Per Share The computation of basic earnings per share (“ EPS The shares listed below were not included in the computation of diluted losses per share because to do so would be antidilutive for the periods presented: Schedule of computation of diluted losses per share Three Months Ended November 30, 2023 2022 Stock options 4,183,000 6,684,400 Warrants 16,666,667 18,661,917 20,849,667 25,346,317 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Nov. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 5 – Property and Equipment Property and equipment consists of the following: Schedule of property and equipment November 30, August 31, 2023 2023 Computers, office equipment and software $ 14,102 $ 14,102 Equipment 133,653 133,653 In-process equipment 1,292,655 1,292,655 Total property and equipment 1,440,410 1,440,410 Accumulated depreciation (128,721 ) (125,128 ) Property and equipment, net $ 1,311,688 $ 1,315,282 During the three months ended November 30, 2023 and 2022, the Company recognized straight-line depreciation expense of $ 3,594 3,927 During the year ended August 31, 2019, the Company made deposits for in-process equipment totaling $ 1,292,655 |
Common Stock and Warrants
Common Stock and Warrants | 3 Months Ended |
Nov. 30, 2023 | |
Equity [Abstract] | |
Common Stock and Warrants | NOTE 6 – Common Stock and Warrants Common Stock At November 30, 2023, the Company had 300,000,000 0.001 53,198,399 Warrants Each of the Company’s warrants outstanding entitles the holder to purchase one share of the Company’s common stock for each warrant share held. The following warrants may be exercised on a cashless basis. A summary of the Company’s warrants outstanding and exercisable as of November 30, 2023 and August 31, 2023 is as follows: Schedule of warrants outstanding and exercisable Shares of Common Stock Issuable from Warrants Outstanding as of Description November 30, 2023 August 31, 2023 Weighted Average Exercise Price Date of Issuance Expiration Series T 16,666,667 16,666,667 $ 1.70 November 26, 2018 November 26, 2025 |
Stock Options
Stock Options | 3 Months Ended |
Nov. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Options | NOTE 7 - Stock Options The Company measures share-based compensation cost on the grant date, based on the fair value of the award, and recognizes the expense on a straight-line basis over the requisite service period for awards expected to vest. The Company estimates the grant date fair value of stock options using a Black-Scholes valuation model. No stock options were granted in the past two years. A summary of the Company’s stock option activity for the three months ended November 30, 2023 and related information follows: Schedule of stock option activity Number of Shares Subject to Option Grants Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value ($) Outstanding at August 31, 2023 4,207,400 3.04 Forfeitures and cancellations (24,400 ) 3.54 Outstanding at November 30, 2023 4,183,000 3.04 3.56 - Exercisable at November 30, 2023 4,164,200 3.03 3.57 - The aggregate intrinsic value in the table above represents the total pretax intrinsic value for all “in-the-money” options (i.e. the difference between the Company’s closing stock price on the last trading day of the period covered by this report and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all in-the-money option holders exercised their vested options on November 30, 2023. The intrinsic value of the option changes based upon the fair market value of the Company’s common stock. Since the closing stock price was $ 0.70 0.70 no The following table sets forth the share-based compensation cost resulting from stock option grants, including those previously granted and vesting over time, that were recorded in the Company’s Statements of Operations for the three months ended November 30, 2023 and 2022: Schedule of share-based compensation Three Months Ended November 30, Stock compensation expense: 2023 2022 Selling, general and administrative $ 22,510 $ 70,810 Research and development 705 14,390 Total $ 23,215 $ 85,200 As of November 30, 2023, the Company had $ 44,180 0.50 The following table summarizes information about stock options outstanding and exercisable at November 30, 2023: Schedule of stock options outstanding and exercisable Stock Options Outstanding Stock Options Exercisable Range of Number of Shares Weighted Weighted Number Weighted Average Weighted 2.32 153,000 5.86 2.32 153,000 5.86 2.32 2.60 2,500,000 2.59 2.60 2,500,000 2.59 2.60 3.42 50,000 2.89 3.42 50,000 2.89 3.42 3.46 35,000 2.10 3.46 35,000 2.10 3.46 3.54 1,225,000 4.90 3.54 1,206,200 4.95 3.54 4.87 110,000 3.98 4.87 110,000 3.98 4.87 6.21 110,000 7.91 6.21 110,000 7.91 6.21 Total 4,183,000 3.57 3.04 4,165,700 3.56 3.03 |
Transactions with Related Perso
Transactions with Related Persons | 3 Months Ended |
Nov. 30, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Related Persons | NOTE 8 - Transactions with Related Persons A related party with respect to the Company is generally defined as any person (and, if a natural person, inclusive of his or her immediate family) (i) that holds 10% or more of the Company’s securities, (ii) that is part of the Company’s management, (iii) that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Joseph Sierchio, one of the Company’s directors, has maintained his role as the Company’s general counsel since its inception as Principal of the law firm of Sierchio & Partners, LLP, and then as a Partner with Satterlee Stephens LLP and beginning in August 2020, as Principal of Sierchio Law, LLP pursuant to an engagement letter which provides for an annual fee of $175,000 in exchange for general counsel services, and the reimbursement of expenses. Fees for legal services and expense reimbursement billed by Sierchio Law, LLP totaled $ 43,750 43,750 17,083 14,583 2,500 All related party transactions are recorded at the exchange amount established and agreed to between related parties and are in the normal course of business. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 – Commitments and Contingencies On June 9, 2022, the Company was served the Notice of Civil Claim dated May 16, 2022 (the “ Notice of Claim Application Order |
Subsequent Events
Subsequent Events | 3 Months Ended |
Nov. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 10 – Subsequent Events Management has reviewed material events subsequent of the period ended November 30, 2023 and through the date of filing of financial statements in accordance with FASB ASC 855 “Subsequent Events”. In managements opinion, no material subsequent events have occurred as of the date of this quarterly report. |
Interim Statement Presentation
Interim Statement Presentation (Policies) | 3 Months Ended |
Nov. 30, 2023 | |
Interim Statement Presentation | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying unaudited interim consolidated financial statements of SolarWindow Technologies, Inc. and its controlled subsidiary companies (collectively, the “ Company SEC U.S. GAAP The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Actual results may differ from those estimates. The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments (including normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s consolidated financial position as of November 30, 2023, results of operations, stockholders’ equity and cash flows for the three months ended November 30, 2023, and 2022. The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. The Company considers its accounting policies relating to stock-based compensation to be the most significant accounting policy that involves management estimates and judgments. The Company has made accounting estimates based on the facts and circumstances available as of the reporting date. Actual amounts could differ from these estimates, and such differences could be material. These consolidated financial statements presented are those of SolarWindow Technologies, Inc. and its wholly owned subsidiaries, SolarWindow Asia (USA) Corp., and SolarWindow Asia Co. Ltd. All significant intercompany balances and transactions have been eliminated. As more fully described in Note 3, on January 13, 2023, the Board determined that it is in the best interests of the Company to discontinue operations in South Korea and to dissolve the Korean Subsidiary. In accordance with applicable accounting guidance, the results of the Korean Subsidiary are presented as discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss and, as such, have been excluded from continuing operations. Further, the Company reclassified the assets and liabilities of the Korean Subsidiary as assets and liabilities of discontinued operations in the Consolidated Balance Sheet as of August 31, 2022. The Consolidated Statements of Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. Information regarding the Company’s significant accounting policies is contained in Note 2, “Summary of significant accounting policies,” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended August 31, 2023. Presented below and in the following notes is supplemental information that should be read in conjunction with “Notes to Financial Statements” in the Annual Report. |
Fiscal quarter | Fiscal quarter The Company’s quarterly periods end on November 30, February 28, May 31, and August 31. The Company’s first quarter in fiscal 2024 and 2023 ended on November 30, 2023, and 2022, respectively. |
Cash and Highly Liquid Investments | Cash and Highly Liquid Investments Cash includes cash on hand and highly liquid investments with original maturities of three months or less from the date of purchase. The Company had $ 5,435,020 127,979 5,307,041 5,239,510 Schedule of cash and highly liquid investments November 30, August 31, 2023 2023 Cash $ 135,020 $ 492,610 Short-term investments 5,300,000 5,500,000 Total cash and short-term investments $ 5,435,020 $ 5,992,610 |
Short-term investments | Short-term investments The Company determines the balance sheet classification of its investments at the time of purchase and evaluates the classification at each balance sheet date. Money market funds, certificates of deposit, and time deposits with maturities of greater than three months but no more than twelve months are carried at cost, which approximates fair value and are recorded in the consolidated balance sheets in short-term investments. As of November 30, 2023, short-term investments consist of a 12-month $4,000,000 fixed-term deposit earning interest of 5.3%, and a 12-month $1,300,000 fixed term deposit earning interest of 4.25% purchased in February 2023 and which $200,000 was redeemed during the three months ended November 30, 2023. |
Accounting Pronouncements | Accounting Pronouncements The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable, the Company has not identified any standards that the Company believes merit further discussion. Recent accounting pronouncements not yet adopted None. Recently adopted accounting pronouncements None. |
Interim Statement Presentatio_2
Interim Statement Presentation (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Interim Statement Presentation | |
Schedule of cash and highly liquid investments | Schedule of cash and highly liquid investments November 30, August 31, 2023 2023 Cash $ 135,020 $ 492,610 Short-term investments 5,300,000 5,500,000 Total cash and short-term investments $ 5,435,020 $ 5,992,610 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of statement of operations and comprehensive loss | Schedule of statement of operations and comprehensive loss Three Months Ended November 30, 2023 2022 Operating expenses Selling, general and administrative $ 1,870 $ 150,876 Research and development - 16,253 Total operating expenses 1,870 167,129 Other income Interest income - 9 Net loss from discontinued operations $ (1,870 ) (167,120 ) |
Schedule of significant classes of assets and liabilities | Schedule of significant classes of assets and liabilities November 30, 2023 August 31, 2023 Current assets Prepaid expenses and other current assets $ 13,775 $ 13,522 Total current assets 13,775 13,522 Total assets $ 13,775 $ 13,522 Current liabilities Accounts payable and accrued expenses $ 139,646 $ 136,109 Total current liabilities $ 139,646 $ 136,109 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of computation of diluted losses per share | Schedule of computation of diluted losses per share Three Months Ended November 30, 2023 2022 Stock options 4,183,000 6,684,400 Warrants 16,666,667 18,661,917 20,849,667 25,346,317 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Schedule of property and equipment November 30, August 31, 2023 2023 Computers, office equipment and software $ 14,102 $ 14,102 Equipment 133,653 133,653 In-process equipment 1,292,655 1,292,655 Total property and equipment 1,440,410 1,440,410 Accumulated depreciation (128,721 ) (125,128 ) Property and equipment, net $ 1,311,688 $ 1,315,282 |
Common Stock and Warrants (Tabl
Common Stock and Warrants (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Equity [Abstract] | |
Schedule of warrants outstanding and exercisable | Schedule of warrants outstanding and exercisable Shares of Common Stock Issuable from Warrants Outstanding as of Description November 30, 2023 August 31, 2023 Weighted Average Exercise Price Date of Issuance Expiration Series T 16,666,667 16,666,667 $ 1.70 November 26, 2018 November 26, 2025 |
Stock Options (Tables)
Stock Options (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock option activity | Schedule of stock option activity Number of Shares Subject to Option Grants Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value ($) Outstanding at August 31, 2023 4,207,400 3.04 Forfeitures and cancellations (24,400 ) 3.54 Outstanding at November 30, 2023 4,183,000 3.04 3.56 - Exercisable at November 30, 2023 4,164,200 3.03 3.57 - |
Schedule of share-based compensation | Schedule of share-based compensation Three Months Ended November 30, Stock compensation expense: 2023 2022 Selling, general and administrative $ 22,510 $ 70,810 Research and development 705 14,390 Total $ 23,215 $ 85,200 |
Schedule of stock options outstanding and exercisable | Schedule of stock options outstanding and exercisable Stock Options Outstanding Stock Options Exercisable Range of Number of Shares Weighted Weighted Number Weighted Average Weighted 2.32 153,000 5.86 2.32 153,000 5.86 2.32 2.60 2,500,000 2.59 2.60 2,500,000 2.59 2.60 3.42 50,000 2.89 3.42 50,000 2.89 3.42 3.46 35,000 2.10 3.46 35,000 2.10 3.46 3.54 1,225,000 4.90 3.54 1,206,200 4.95 3.54 4.87 110,000 3.98 4.87 110,000 3.98 4.87 6.21 110,000 7.91 6.21 110,000 7.91 6.21 Total 4,183,000 3.57 3.04 4,165,700 3.56 3.03 |
Organization (Details Narrative
Organization (Details Narrative) - USD ($) | Nov. 30, 2023 | Aug. 31, 2023 |
Accounting Policies [Abstract] | ||
Cash, cash equivalents and short-term investments | $ 5,435,020 | $ 5,992,610 |
Working capital | $ 5,541,181 |
Interim Statement Presentatio_3
Interim Statement Presentation (Details) - USD ($) | Nov. 30, 2023 | Aug. 31, 2023 |
Interim Statement Presentation | ||
Cash | $ 135,020 | $ 492,610 |
Short-term investments | 5,300,000 | 5,500,000 |
Total cash and short-term investments | $ 5,435,020 | $ 5,992,610 |
Interim Statement Presentatio_4
Interim Statement Presentation (Details Narrative) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Aug. 31, 2023 | |
Schedule of Investments [Line Items] | ||
Cash held in investments | $ 135,020 | $ 492,610 |
Short term investment description | As of November 30, 2023, short-term investments consist of a 12-month $4,000,000 fixed-term deposit earning interest of 5.3%, and a 12-month $1,300,000 fixed term deposit earning interest of 4.25% purchased in February 2023 and which $200,000 was redeemed during the three months ended November 30, 2023. | |
US Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Cash held in investments | $ 5,435,020 | |
FDIC insured amount | 127,979 | |
Canadian Bank [Member] | ||
Schedule of Investments [Line Items] | ||
Cash held in investments | 5,307,041 | |
FDIC insured amount | $ 5,239,510 |
Discontinued Operations (Detai
Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Operating expenses | ||
Selling, general and administrative | $ 1,870 | $ 150,876 |
Research and development | 16,253 | |
Total operating expenses | 1,870 | 167,129 |
Other income | ||
Interest income | 9 | |
Net loss from discontinued operations | $ (1,870) | $ (167,120) |
Discontinued Operations (Detail
Discontinued Operations (Details 1) - USD ($) | Nov. 30, 2023 | Aug. 31, 2023 |
Current assets | ||
Prepaid expenses and other current assets | $ 13,775 | $ 13,522 |
Total current assets | 13,775 | 13,522 |
Total assets | 13,775 | 13,522 |
Current liabilities | ||
Accounts payable and accrued expenses | 139,646 | 136,109 |
Total current liabilities | $ 139,646 | $ 136,109 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - shares | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 20,849,667 | 25,346,317 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 4,183,000 | 6,684,400 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 16,666,667 | 18,661,917 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Nov. 30, 2023 | Aug. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,440,410 | $ 1,440,410 |
Accumulated depreciation | (128,721) | (125,128) |
Property and equipment, net | 1,311,688 | 1,315,282 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,102 | 14,102 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 133,653 | 133,653 |
In Process Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,292,655 | $ 1,292,655 |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |||
Nov. 30, 2023 | Nov. 30, 2022 | Aug. 31, 2023 | Aug. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 3,594 | $ 3,927 | ||
Deposits for in-process equipment | $ 1,440,410 | $ 1,440,410 | ||
In Process Equipments [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Deposits for in-process equipment | $ 1,292,655 |
Common Stock and Warrants (Deta
Common Stock and Warrants (Details) - Series T [Member] - $ / shares | 3 Months Ended | |
Nov. 30, 2023 | Aug. 31, 2023 | |
Class of Stock [Line Items] | ||
Shares of common stock issuable from warrants outstanding | 16,666,667 | 16,666,667 |
Weighted average exercise price | $ 1.70 | |
Date of issuance | Nov. 26, 2018 | |
Expiration | Nov. 26, 2025 |
Common Stock and Warrants (De_2
Common Stock and Warrants (Details Narrative) - $ / shares | Nov. 30, 2023 | Aug. 31, 2023 |
Equity [Abstract] | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares outstanding | 53,198,399 | 53,198,399 |
Stock Options (Details)
Stock Options (Details) - Equity Option [Member] | 3 Months Ended |
Nov. 30, 2023 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of shares subject to option grants, outstanding beginning balance | shares | 4,207,400 |
Weighted average exercise price, outstanding balance beginning | $ / shares | $ 3.04 |
Number of shares subject to option grants, forfeitures and cancellations | shares | (24,400) |
Weighted average exercise price, forfeitures and cancellations | $ / shares | $ 3.54 |
Number of shares subject to option grants, outstanding ending balance | shares | 4,183,000 |
Weighted average exercise price, outstanding balance ending | $ / shares | $ 3.04 |
Weighted average remaining contractual term (years), outstanding | 3 years 6 months 21 days |
Aggregate intrinsic value, outstanding | $ | |
Number of shares subject to option grants, exercisable | shares | 4,164,200 |
Weighted average exercise price, exercisable | $ / shares | $ 3.03 |
Weighted average remaining contractual term (years), exercisable | 3 years 6 months 25 days |
Aggregate intrinsic value, Exercisable | $ |
Stock Options (Details 1)
Stock Options (Details 1) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Stock compensation expense: | ||
Selling, general and administrative | $ 22,510 | $ 70,810 |
Research and development | 705 | 14,390 |
Total | $ 23,215 | $ 85,200 |
Stock Options (Details 2)
Stock Options (Details 2) | 3 Months Ended |
Nov. 30, 2023 $ / shares shares | |
Equity Option [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Stock options outstanding, number of shares subject to outstanding options | shares | 4,183,000 |
Stock options outstanding, weighted average contractural life (years) | 3 years 6 months 25 days |
Stock options outstanding, weighted average exercise price | $ / shares | $ 3.04 |
Stock options exercisable, number of shares subject to options exercise | shares | 4,165,700 |
Stock options exercisable, weighted average remaining contractural life (Years) | 3 years 6 months 21 days |
Stock options exercisable, weighted average exercise price | $ / shares | $ 3.03 |
$2.32 Per Share [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Stock options outstanding, number of shares subject to outstanding options | shares | 153,000 |
Stock options outstanding, weighted average contractural life (years) | 5 years 10 months 9 days |
Stock options outstanding, weighted average exercise price | $ / shares | $ 2.32 |
Stock options exercisable, number of shares subject to options exercise | shares | 153,000 |
Stock options exercisable, weighted average remaining contractural life (Years) | 5 years 10 months 9 days |
Stock options exercisable, weighted average exercise price | $ / shares | $ 2.32 |
$2.60 Per Share [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Stock options outstanding, number of shares subject to outstanding options | shares | 2,500,000 |
Stock options outstanding, weighted average contractural life (years) | 2 years 7 months 2 days |
Stock options outstanding, weighted average exercise price | $ / shares | $ 2.60 |
Stock options exercisable, number of shares subject to options exercise | shares | 2,500,000 |
Stock options exercisable, weighted average remaining contractural life (Years) | 2 years 7 months 2 days |
Stock options exercisable, weighted average exercise price | $ / shares | $ 2.60 |
$3.42 Per Share [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Stock options outstanding, number of shares subject to outstanding options | shares | 50,000 |
Stock options outstanding, weighted average contractural life (years) | 2 years 10 months 20 days |
Stock options outstanding, weighted average exercise price | $ / shares | $ 3.42 |
Stock options exercisable, number of shares subject to options exercise | shares | 50,000 |
Stock options exercisable, weighted average remaining contractural life (Years) | 2 years 10 months 20 days |
Stock options exercisable, weighted average exercise price | $ / shares | $ 3.42 |
$3.46 Per Share [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Stock options outstanding, number of shares subject to outstanding options | shares | 35,000 |
Stock options outstanding, weighted average contractural life (years) | 2 years 1 month 6 days |
Stock options outstanding, weighted average exercise price | $ / shares | $ 3.46 |
Stock options exercisable, number of shares subject to options exercise | shares | 35,000 |
Stock options exercisable, weighted average remaining contractural life (Years) | 2 years 1 month 6 days |
Stock options exercisable, weighted average exercise price | $ / shares | $ 3.46 |
$3.54 Per Share [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Stock options outstanding, number of shares subject to outstanding options | shares | 1,225,000 |
Stock options outstanding, weighted average contractural life (years) | 4 years 10 months 24 days |
Stock options outstanding, weighted average exercise price | $ / shares | $ 3.54 |
Stock options exercisable, number of shares subject to options exercise | shares | 1,206,200 |
Stock options exercisable, weighted average remaining contractural life (Years) | 4 years 11 months 12 days |
Stock options exercisable, weighted average exercise price | $ / shares | $ 3.54 |
$4.87 Per Share [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Stock options outstanding, number of shares subject to outstanding options | shares | 110,000 |
Stock options outstanding, weighted average contractural life (years) | 3 years 11 months 23 days |
Stock options outstanding, weighted average exercise price | $ / shares | $ 4.87 |
Stock options exercisable, number of shares subject to options exercise | shares | 110,000 |
Stock options exercisable, weighted average remaining contractural life (Years) | 3 years 11 months 23 days |
Stock options exercisable, weighted average exercise price | $ / shares | $ 4.87 |
$6.21 Per Share [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Stock options outstanding, number of shares subject to outstanding options | shares | 110,000 |
Stock options outstanding, weighted average contractural life (years) | 7 years 10 months 28 days |
Stock options outstanding, weighted average exercise price | $ / shares | $ 6.21 |
Stock options exercisable, number of shares subject to options exercise | shares | 110,000 |
Stock options exercisable, weighted average remaining contractural life (Years) | 7 years 10 months 28 days |
Stock options exercisable, weighted average exercise price | $ / shares | $ 6.21 |
Stock Options (Details Narrativ
Stock Options (Details Narrative) - Equity Option [Member] | 3 Months Ended |
Nov. 30, 2023 USD ($) $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Closing stock option exercise price | $ / shares | $ 0.70 |
Option exercise price | $ / shares | $ 0.70 |
Aggregate intrinsic value of options vested | $ | $ 0 |
Share based compensation expenses not yet recognized | $ | $ 44,180 |
Share based compensation recognition period | 6 months |
Transactions with Related Per_2
Transactions with Related Persons (Details Narrative) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Related Party Transaction [Line Items] | ||
Legal service fee | $ 43,750 | $ 43,750 |
Sierchio Law LLP [Member] | ||
Related Party Transaction [Line Items] | ||
Legal service fee | 14,583 | |
Related party payable | 17,083 | |
Board fee | $ 2,500 |