Cover
Cover - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Nov. 29, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Aug. 31, 2023 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --08-31 | |
Entity File Number | 000-52403 | |
Entity Registrant Name | CNBX PHARMACEUTICALS INC. | |
Entity Central Index Key | 0001343009 | |
Entity Tax Identification Number | 20-3373669 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | #3 Bethesda Metro Center | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Bethesda | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20814 | |
City Area Code | 877 | |
Local Phone Number | 424-2429 | |
Title of 12(b) Security | Common Stock, $.0001 Par Value | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
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 Public Float | $ 437,714 | |
Entity Common Stock, Shares Outstanding | 28,311,352 | |
ICFR Auditor Attestation Flag | false | |
Document Financial Statement Error Correction [Flag] | false | |
Auditor Firm ID | 6629 | |
Auditor Name | Weinstein International. C.P.A. | |
Auditor Location | Tel - Aviv, Israel |
Audited Consolidated Balance Sh
Audited Consolidated Balance Sheets - USD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 129,696 | $ 117,515 |
Prepaid expenses and other receivables | 94,612 | 80,772 |
Total current assets | 224,308 | 198,287 |
Available for sale Investment | 0 | 176,087 |
Equipment, net | 274,731 | 436,792 |
Total assets | 499,039 | 811,166 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 335,915 | 461,128 |
Convertible loan | 1,343,584 | 1,758,702 |
Due to a related party | 836,829 | 223,645 |
Total current liabilities | 2,516,328 | 2,443,475 |
Stockholders' equity (deficit): | ||
Preferred stock, $.0001 par value, 5,000,000 shares authorized no shares issued and outstanding. | 0 | 0 |
Common stock, $.0001 par value, 900,000,000 shares authorized, 22,611,352and 1,238,659 shares issued and outstanding at August 31, 2023 and August 31, 2022 respectively. | 2,261 | 124 |
Additional paid-in capital | 22,239,652 | 18,031,869 |
Issuance of warrants | 0 | 3,459,510 |
Other comprehensive loss | 0 | (2,574,846) |
Accumulated deficit | (24,259,202) | (20,548,968) |
Total stockholders' equity (deficit) | (2,017,289) | (1,632,311) |
Total liabilities and stockholders' equity | $ 499,039 | $ 811,166 |
Audited Consolidated Balance _2
Audited Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2023 | Aug. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 22,611,352 | 1,238,659 |
Common stock, shares outstanding | 22,611,352 | 1,238,659 |
Audited Consolidated Statements
Audited Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 410,165 | $ 29,958 |
Operating expenses: | ||
Research and development expense | 431,565 | 1,183,281 |
General and administrative expenses | 909,980 | 1,800,647 |
Total operating expenses | 1,341,545 | 2,983,928 |
Loss from operations | (931,380) | (2,953,970) |
Other income | ||
Capital Gain (loss) | (2,726,231) | 12,800 |
Financial loss, net | (52,623) | (782,080) |
Net (loss) income | (3,710,234) | (3,723,250) |
(Loss) Profit from available for sale assets | 0 | (669,131) |
Total comprehensive (loss) income | $ (3,710,234) | $ (4,392,381) |
Audited Consolidated Statemen_2
Audited Consolidated Statements of Operations (Parenthetical) - $ / shares | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Income Statement [Abstract] | ||
Net (loss) per share - basic | $ (0.42) | $ (3.59) |
Net (loss) per share - diluted | $ (0.42) | $ (3.59) |
Weighted average number of shares outstanding - Basic | 8,824,636 | 1,222,641 |
Weighted average number of shares outstanding - Diluted | 8,824,636 | 1,222,641 |
Audited Consolidated Statemen_3
Audited Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Cash flows from operating activities: | ||
Net (Loss) Profit | $ (3,710,234) | $ (3,723,250) |
Adjustments required to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 162,061 | 198,527 |
Share based payment | 180,480 | 728,869 |
Interest on Convertible loan | 54,811 | 722,236 |
Capital loss (Gain) | 2,726,232 | (12,800) |
Changes in operating assets and liabilities: | ||
Accounts Receivable and prepaid expenses | (13,840) | 123,603 |
Accounts payable and accrued liabilities | 487,969 | 283,623 |
Net cash used in operating activities | (112,521) | (1,679,192) |
Cash flows from investing activities: | ||
Sale of equipment | 0 | 26,885 |
Realization of Held for trading investments | 24,702 | 0 |
Acquisition of equipment | 0 | (1,656) |
Net cash used in investing activities | 24,702 | 25,229 |
Cash flows from financing activities: | ||
Proceeds from issuance of a Convertible loan | 100,000 | 389,858 |
Net cash provided by financing activities | 100,000 | 389,858 |
Net increase (decrease) in cash | 12,181 | (1,264,105) |
Effect of exchange rate fluctuations on cash | 0 | (4,853) |
Cash and cash equivalents at beginning of year | 117,515 | 1,386,473 |
Cash and cash equivalents at end of the year | 129,696 | 117,515 |
Significant non-cash transactions: | ||
Exercise of a Convertible loan to shares of common stock. | $ 569,930 | $ 225,286 |
Audited Consolidated Statemen_4
Audited Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Warrants [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Aug. 31, 2021 | $ 14,475 | $ 17,063,363 | $ (1,905,715) | $ 3,459,510 | $ (16,825,718) | $ 1,805,915 |
Beginning balance, shares at Aug. 31, 2021 | 1,206,230 | |||||
Share based Payment | 728,869 | 728,869 | ||||
Exercise of a Convertible loan to shares of common stock. | $ 2 | 225,284 | 225,286 | |||
Exercise of a Convertible loan to shares of common stock, shares | 20,027 | |||||
Post-split adjustment | $ (14,353) | 14,353 | ||||
Post-split adjustment, shares | 12,402 | |||||
Other comprehensive loss | (669,131) | (669,131) | ||||
Net loss | (3,723,250) | (3,723,250) | ||||
Ending balance, value at Aug. 31, 2022 | $ 124 | 18,031,869 | (2,574,846) | 3,459,510 | (20,548,968) | (1,632,311) |
Ending balance, shares at Aug. 31, 2022 | 1,238,659 | |||||
Share based Payment | 180,480 | 180,480 | ||||
Exercise of a Convertible loan to shares of common stock. | $ 2,137 | 567,793 | 569,930 | |||
Exercise of a Convertible loan to shares of common stock, shares | 21,372,693 | |||||
Expiration of warrants | 3,459,510 | (3,459,510) | ||||
Other comprehensive loss | 2,574,846 | 2,574,846 | ||||
Net loss | (3,710,234) | (3,710,234) | ||||
Ending balance, value at Aug. 31, 2023 | $ 2,261 | $ 22,239,652 | $ (24,259,202) | $ (2,017,289) | ||
Ending balance, shares at Aug. 31, 2023 | 22,611,352 |
Nature of Business, Presentatio
Nature of Business, Presentation and Going Concern | 12 Months Ended |
Aug. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business, Presentation and Going Concern | Note 1 – Nature of Business, Presentation and Going Concern Organization CNBX Pharmaceuticals Inc. (the "Company"), was incorporated in the State of Nevada, on September 15, 2004, under the name of Thrust Energy Corp. The Company was originally engaged in the exploration, exploitation, development and production of oil and gas projects within North America, but was unable to operate profitably. In May 2011, the Company changed its name to American Mining Corporation, suspending its oil and gas operations and changing its business to toll milling and refining, mineral exploration and mine development. On April 25, 2014, the Company experienced a change in control. Cannabics, Inc. (“Cannabics”) acquired a majority of the issued and outstanding common stock of the Company in accordance with stock purchase agreements by and between Cannabics and Thomas Mills (“Mills”). On the closing date, April 25, 2014, pursuant to the terms of the Stock Purchase Agreement, Cannabics purchased from Mills 41,000,000 shares of the Company’s outstanding restricted common stock for $198,000, representing 51%. On May 21, 2014, the Company changed its name, via merger in the state of Nevada, to CNBX Pharmaceuticals Inc. The Company’s principal offices are in Bethesda, Maryland. As of May 21, 2014, the Company has changed its course of business to laboratory research and development. On August 25, 2014, the Company organized G.R.I.N. Ultra Ltd. (“GRIN”), an Israeli corporation, as a wholly-owned subsidiary. GRIN will provide research and development activities for the Company’s products in Israel. Stock Split On June 3, 2014, the Company’s Board of Directors declared a two-to-one forward stock split of all outstanding shares of common stock. The stock split was approved by FINRA on June 25, 2014. The effect of the stock split increased the number of shares of common stock outstanding from 40,880,203 to 81,760,406. All common share and per common share data in these financial statements and related notes hereto have been retroactively adjusted to account for the effect of the stock split for all periods presented prior to June 3, 2014. The total number of authorized common shares and the par value thereof was not changed by the split. Additionally, on May 12, 2022, the Company effected a reverse-split of its common stock on a 1:120 basis. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission (“SEC”). Going Concern The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred a net loss of $ 3,710,234 24,259,202 The Company’s continuation as a going concern is dependent upon its ability to generate revenues, its ability to continue to raise investment capital, and implementing its business plan. No assurance can be given that the Company will be successful in these efforts. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern. No assurance can be given that the Company will be successful in these efforts. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Functional currency The currency of the primary economic environment in which the operations of the Company and its Subsidiary are conducted is the U.S. dollar (“$” or “dollar”). Therefore, the functional currency of the Company and its Subsidiary is the dollar. Transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been re-measured to dollars in accordance with the provisions of ASC 830-10 (formerly Statement of Financial Accounting Standard 52), "Foreign Currency Translation". All transaction gains and losses from re-measurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statement of operations as financial income or expenses, as appropriate. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying financial statements include the amortization period for intangible assets, impairment valuation of intangible assets, valuation of share-based payments and the valuation allowance on deferred tax assets. Principles of Consolidation The consolidated financial statements include the accounts of Cannabics Pharmaceutical Inc. and its wholly-owned subsidiary, G.R.I.N. Ultra Ltd. All significant inter-company balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At August 31, 2023 and 2022, cash equivalents consisted of bank accounts held at financial institutions. Concentration of Credit Risk The Company places its cash and cash equivalents with high credit quality financial institutions. There is Federal Deposit Insurance on the Company’s U.S. bank accounts for up to $ 250,000 Equipment, net Equipment at August 31, 2023 consists of computer equipment, office equipment and cars recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation of property and equipment is computed by the straight-line method (after taking into account their respective estimated residual values) over the assets estimated useful lives of 3 years for computer equipment, 14 years for office equipment and 7 years for cars. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the consolidated statements of operations. Depreciation expense was $ 162,061 198,527 Revenue recognition Revenue is recognized when delivery has occurred, evidence of an arrangement exists, title and risks and rewards for the products are transferred to the customer, collection is reasonably assured and product returns can be reliably estimated. Revenue from license agreements is recognized over the periods from which the Company is entitled to the respective payments. Impairment or Disposal of Long-Lived Assets The Company accounts for the impairment or disposal of long-lived assets according to the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 360 “Property, Plant and Equipment”. ASC 360 clarifies the accounting for the impairment of long-lived assets and for long-lived assets to be disposed of, including the disposal of business segments and major lines of business. Long-lived assets are reviewed when facts and circumstances indicate that the carrying value of the asset may not be recoverable. When necessary, impaired assets are written down to estimated fair value based on the best information available. Estimated fair value is generally based on either appraised value or measured by discounting estimated future cash flows. Considerable management judgment is necessary to estimate discounted future cash flows. Accordingly, actual results could vary significantly from such estimates. Fair Value of Financial Instruments The following provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which fair value is observable: Level 1 - fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3 - fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of August 31, 2023 and 2022. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. The Company applied ASC 820 for all non-financial assets and liabilities measured at fair value on a non-recurring basis. The adoption of ASC 820 for non-financial assets and liabilities did not have a significant impact on the Company’s financial statements. As of August 31, 2023, the company had no 1,343,584 As of August 31, 2023, the fair values of the Company’s financial instruments approximate their historical carrying amount. Research and development, net Research and development expenses include costs directly attributable to the conduct of research and development programs, including the cost of salaries, employee benefits, the cost of supplies, the cost of services provided by outside contractors, including services related to the Company’s clinical trials, clinical trial expenses and the full cost of manufacturing product for use in research and preclinical development. All costs associated with research and developments are expensed as incurred. Clinical trial costs are a significant component of research and development expenses and include costs associated with third-party contractors. The Company outsources a substantial portion of its clinical trial activities, utilizing external entities such as Contract Research Organizations, independent clinical investigators, and other third-party service providers to assist the Company with the execution of its clinical studies. For each clinical trial that the Company conducts, clinical trial costs are expensed immediately. Stock Based Compensation The Company accounts for Stock-Based Compensation under ASC 718 “Compensation – Stock Compensation”, which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company accounts for stock-based compensation awards to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. Under ASC 505-50, the Company determines the fair value of the warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. Any stock options or warrants issued to non-employees are recorded in expense and additional paid-in capital in shareholders' deficit over the applicable service periods using variable accounting through the vesting dates based on the fair value of the options or warrants at the end of each period. The Company issues stock to consultants for various services. The costs for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty's performance is complete. The Company recognized consulting expense and a corresponding increase to additional paid-in-capital related to stock issued for services. Income Taxes Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, future tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of assets and liabilities and their respective tax bases. Future tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability settled. The effect of a change in income tax rates on future income tax liabilities and assets is recognized in income in the period that the change occurs. Future income tax assets are recognized to the extent that they are considered more likely than not to be realized. The FASB has issued ASC 740 “Income Taxes”. ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by ASC 740 and concluded that the tax position of the Company has not met the more-likely-than-not threshold as of August 31, 2023. Comprehensive Income The Company adopted ASC 220, Comprehensive Income Basic and Diluted Loss per Share The Company computes income (loss) per share in accordance with ASC 260, “Earnings per Share”, which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the statement of operations. Basic EPS is computed by dividing income (loss) available to common shareholders by the weighted average number of shares outstanding during the period. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of August 31, 2023, and 2022, the potentially dilutive shares were anti-dilutive. Segment Information In accordance with the provisions of ASC 280-10, “Disclosures about Segments of an Enterprise and Related Information”, the Company is required to report financial and descriptive information about its reportable operating segments. The Company does not consider itself to have any operating segments as of August 31, 2023, and 2022. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 3 – Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”, which provides guidance in evaluating entities for inclusion in consolidations. ASU 2015-02 is effective for fiscal years beginning after December 15, 2015. The Company does not believe the adoption of ASU 2015-02 will have a material effect on its consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-10 (“ASU 2014-10”), Development Stage Entities (Topic 915), Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The amendment eliminating the exception to the sufficiency-of-equity-at-risk criterion for development stage entities in paragraph 810-10-15-16 should be applied retrospectively for annual reporting periods beginning after December 15, 2015 and interim periods therein. Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued. The Company has adopted ASU 2014-10 in the fourth quarter of 2014 and does not expect this adoption to have a material impact on its consolidated financial condition, results of operations or cash flows. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-16 (ASU 2015-16) "Simplifying the Accounting for Measurement Period Adjustments". ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in ASU 2015-16 require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in ASU 2015-16 require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in ASU 2015-16 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in ASU 2015-16 should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. For all other entities, the amendments in ASU 2015-16 are effective for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2017. The amendments in ASU 2015-16 should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not yet been made available for issuance. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 4 – Related Party Transactions During the year ended August 31, 2023, and August 31, 2022, the Company paid approximately of $ 79,100 334,395 During the year ended August 31, 2023 the Company accrued additional $ 416,497 196,687 As of August 31, 2023, the Company had a balance outstanding payable to our CEO and chairman: Gabriel Yariv and Eyal Barad in the total of $ 613,184 196,687 During the year ended August 31, 2023, and August 31, 2022, the Company paid approximately of $ 40,321 75,318 During the year ended August 31, 2023 the Company accrued $ 43,000 36,000 Cannabics Inc. (the parent company) balance as of August 31, 2023, and on August 31, 2022 was $ 223,645 During the year ended August 31, 2023, the Company recorded a non cash expense of $ 168,551 670,850 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5 – Commitments and Contingencies As security for its obligation under a property lease agreement, cars lease and credit cards of the Company’s subsidiary provided a bank guarantee in the amount of $ 5,000 |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) | 12 Months Ended |
Aug. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity (Deficit) | Note 6 – Stockholders’ Equity (Deficit) Authorized Shares The Company is authorized to issue up to 900,000,000 .0001 5,000,000 .0001 Common Stock On May 12, 2022, the Company effected a reverse-split of its common stock on a 1:120 During the year ended August 31, 2023, the Company issued 21,372,693 569,930 Stock Based Compensation On October 6, 2021, the Compensation Committee adopted, and the Board ratified the Company’s Equity Incentive Plan. The Plan is intended to secure for the Company the benefits arising from ownership of the Company’s common stock by the employees, officers, directors and consultants of the Company, all of whom are, and will be, responsible for the Company’s future growth. The Plan is designed to help attract and retain for the Company, qualified personnel for positions of exceptional responsibility, to reward employees, officers, directors and consultants for their services to the Company and to motivate such individuals through added incentives to further contribute to the success of the Company. The Plan provides an opportunity for an employee, officer, director or consultant of the Company, subject to certain national securities and taxation laws, to receive (i) incentive stock options, (ii) nonqualified stock options; (iii) restricted stock; (iv) stock awards; (v) shares in performance of services; or (vi) any combination of the foregoing. Incentive stock options granted under the Plan are intended to qualify as “ incentive stock options Code On May 2, 2022, the Compensation Committee approved amending the Plan to increase the number of shares reserved for issuance under the Plan to 15% of the common stock outstanding immediately following consummation of this offering. Private Placement of Notes and Warrant On December 16, 2020, we entered into a Securities Purchase Agreement (“SPA”) with an institutional investor for a private placement of senior secured convertible notes totaling up to an aggregate of $ 2,750,000 42 42 18.00 On December 21, 2020, we closed the first tranche and issued a note in the amount of $ 825,000 550,000 1,375,000 75,000 50,000 125,000 32,614 On April 23, 2021, we entered into a senior secured promissory note (the “Senior Secured Note”) for $ 1,375,000 2,750,000 10 45,833 60 On February 15, 2022, we entered into a forbearance agreements with the institutional investor relating to that certain Senior Secured Note. Pursuant to the forbearance agreement, the investor, through March 7, 2022, agreed to forbear from exercising any rights and remedies against the Company related to the outstanding payments and to waive certain other defaults under the Senior Secured Note and related rights pursuant to the registration rights agreement entered into in December 2020 between the Company and the investor. On November 28, 2022, we entered into a forbearance agreements with the institutional investor relating to that certain Senior Secured Note. Pursuant to the forbearance agreement, the investor, through December 12, 2022, agreed to forbear from exercising any rights and remedies against the Company related to the outstanding payments and to waive certain other defaults under the Senior Secured Note and related rights pursuant to the registration rights agreement entered into in December 2020 between the Company and the investor. On March 16, 2022, we issued to the investor a demand promissory note (the “Demand Note”) in the principal amount of $ 280,000 40,000 On November 28, 2022, we entered into a forbearance agreements with the institutional investor relating to that certain Senior Secured Note. Pursuant to the forbearance agreement, the investor, through December 12, 2022, agreed to forbear from exercising any rights and remedies against the Company related to the outstanding payments and to waive certain other defaults under the Senior Secured Note and related rights pursuant to the registration rights agreement entered into in May 16, 2022 between the Company and the investor. On June 15, 2022, the Company entered into a Securities Purchase Agreement providing for the issuance of the Convertible Promissory Note in the principal amount of $ 154,250 154,000 9 th . In the period of January through March , 2023, the Company entered into a Securities Purchase Agreement providing for the issuance of the Convertible Promissory Note in the principal amount of $ 35,000 35,000 5 th On June 12, 2023, the Company entered into a Securities Purchase Agreement providing for the issuance of the Convertible Promissory Note in the principal amount of $ 65,000 65,000 5 th |
Warrants
Warrants | 12 Months Ended |
Aug. 31, 2023 | |
Warrants | |
Warrants | Note 7 – Warrants 1. On September 24, 2018, as part of a securities purchase agreement the company issued 41,667 Warrants, to purchase common shares of the Company at $1.00 per share; said Warrants are valid for five years, expiring on August 24 th . The fair value of each warrant is approximately $66 and the total value of the 41,667 warrants is $ 2,784,387 The fair value of the warrants are estimated using the Black Scholes option-pricing model with the following assumptions: Schedule of assumptions PV of exercise Share price $ 1 Expected Volatility 102.0 Risk Free Interest Rate 1.58 Expected Term (years) 5 Expected Dividend Yield 0 The said warrants expired on August 24, 2023 1. On December 16, 2020, as part of a convertible loan agreement the company issued 45,667 Warrants, to purchase common shares of the Company at $0.50 per share; said Warrants are valid for three years, expiring on August 24 th . The first trench was received on December 22, 2020, the second trench was received on February 2,2021 and the third trench was received on April 23, 2021, in the total sum of $2,456,750 net of issuance expenses. The fair value of the first, second and third trenches are approximately $10.8, $10.8 and $12 respectively and the total value of the 45,667 warrants is $ 515,818 The fair value of the warrants are estimated using the Black Scholes option-pricing model with the following assumptions: Schedule of assumptions PV of exercise Share price $ 0.50 Expected Volatility 117.0 Risk Free Interest Rate 0.3 Expected Term (years) 3 Expected Dividend Yield 0 The said warrants expired on August 24, 2023 Schedule of warrant activity 2023 2022 2021 Weighted Average Exercise Weighted Average Exercise Weighted Average Exercise Warrants Price Warrants Price Warrants Price Warrants outstanding as of September 1 87,500 $ 88.6 87,500 $ 88.6 41,667 $ 120 Issued – $ – – $ – 45,667 $ 60 Exercised – $ – – $ – – $ – Expired (87,500 ) $ 88.6 – $ – – $ – Warrants outstanding as of August 31 – $ – 87,500 $ 88.6 87,500 $ 88.6 Warrants exercisable as of August 31 – $ – 87,500 $ 88.6 87,500 $ 88.6 |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes Taxes on income included in the consolidated statements of operations represent current taxes due to taxable income of the Company and its Subsidiary. Corporate taxation in the U.S. The applicable corporate tax rate for the Company is 21 No provision for income tax was made for the period from September 15, 2004 (Inception) to August 31, 2023, as the Company had cumulative operating losses. For the years ended August 31, 2023, and 2022, the Company incurred net losses for tax purposes of $ 1,848,572 903,813 Corporate taxation in Israel: The Subsidiary is taxed in accordance with Israeli tax laws. The corporate tax rate applicable is 23 As of August 31, 2023, the Subsidiary has an accumulated tax loss carry forward of approximately $ 12,593,815 12,373,689 The income tax expense (benefit) differs from the amount computed by applying the United States Statutory corporate income tax rate as follows: Schedule of effective income tax rate For the Year Ended August 31, 2023 2022 United States statutory corporate income tax rate 21.0 21.0 Change in valuation allowance on deferred tax assets -21.0 -21.0 Provision for income tax – – Deferred income taxes reflect the tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. The components of the net deferred income tax assets are approximately as follows: Schedule of deferred income tax assets August 31, 2023 2022 US Deferred income tax assets: Net operating loss carry forwards benefit $ 3,035,360 $ 2,576,499 Valuation allowance (3,035,360 ) (2,576,499 ) Net deferred income tax assets $ – $ – Outside US Deferred income tax assets: Net operating loss carry forwards benefit $ 2,949,564 $ 2,804,533 Valuation allowance (2,949,564 ) (2,804,533 ) $ – $ – August 31, 2023 2022 Consolidated Deferred income tax assets: Net operating loss carry forwards benefit $ 5,984,924 $ 5,381,031 Valuation allowance (5,984,924 ) (5,381,031 ) Net deferred income tax assets $ – $ – The amount taken into income as deferred income tax assets must reflect that portion of the income tax loss carry forwards that is more likely than not to be realized from future operations. The Company has established a full valuation allowance on its net deferred tax assets because of a lack of sufficient positive evidence to support its realization. The valuation allowance increased by $ 603,893 1,055,107 No provision for income taxes has been provided in these financial statements due to the net loss for the years ended August 31, 2023 and 2021. At August 31, 2023, the Company has net operating loss carry forwards of approximately $ 24,259,202 IRS Section 382 places limitations (the “Section 382 Limitation”) on the amount of taxable income which can be offset by net operating loss carry forwards after a change in control (generally greater than 50% change in ownership) of a loss corporation. Generally, after a change in control, a loss corporation cannot deduct operating loss carry forwards in excess of the Section 382 Limitation. Due to these “change in ownership” provisions, utilization of the net operating loss and tax credit carry forwards may be subject to an annual limitation regarding their utilization against taxable income in future periods. The Company has not concluded its analysis of Section 382 through August 31, 2023, but believes the provisions will not limit the availability of losses to offset future income. The Company is subject to income taxes in the U.S. federal jurisdiction and is subject to examination for a period of three years for current filings and indefinitely for any delinquent filings. The tax regulations within each jurisdiction are subject to interpretation of related tax laws and regulations and require significant judgment to apply. The Company estimates that the amount of penalties, if any, will not have a material effect on the results of operations, cash flows or financial position. No provisions have been made in the financial statements for such penalties, if any. |
Capital loss
Capital loss | 12 Months Ended |
Aug. 31, 2023 | |
Capital Loss | |
Capital loss | Note 9 – Capital loss On December 9th, 2022, the Company sold her holdings in Sativusin in consideration of $ 24,200 2,726,231 |
General & administrate expenses
General & administrate expenses | 12 Months Ended |
Aug. 31, 2023 | |
Other Income and Expenses [Abstract] | |
General & administrate expenses | Note 10 General & administrate expenses Schedule of general and administrative expenses For the year Ended For the year Ended Salaries and related expenses $ 461,375 $ 379,618 Share based payment to related parties 180,480 728,870 Legal and professional fees 149,108 443,851 Insurance 68,278 93,192 Marketing expenses 1,223 15,977 Other expenses 49,516 139,139 Total general and administrative expenses $ 909,980 $ 1,800,647 * * In the year ended August 31, 2022 revenues of $29,958 was presented under General and administrative expenses, was allocated to Revenues under previous year results. |
Financial (Income) expenses
Financial (Income) expenses | 12 Months Ended |
Aug. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Financial (Income) expenses | Note 11 Financial (Income) expenses Schedule of financial income expenses For the year For the year Interest and bank charges $ 1,174 $ 1,273 Loss (Gain) from convertible loan valuation 54,810 722,236 Currency exchange differences loss (profit) (3,361 ) 58,571 Total other income expenses $ 52,623 $ 782,080 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Aug. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 – Subsequent Events On October 13, 2023, the Company entered into a Securities Purchase Agreement providing for the issuance of the Convertible Promissory Note in the principal amount of $25,000.00. ($25,000 net of issuance expenses). The Convertible Promissory Note carry interest of 5% and due on January 1st 2024. During the period September through October, 2023, the company issued 5,700,000 shares as a result of a convertible of a loan at the total of $65,908. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Functional currency | Functional currency The currency of the primary economic environment in which the operations of the Company and its Subsidiary are conducted is the U.S. dollar (“$” or “dollar”). Therefore, the functional currency of the Company and its Subsidiary is the dollar. Transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been re-measured to dollars in accordance with the provisions of ASC 830-10 (formerly Statement of Financial Accounting Standard 52), "Foreign Currency Translation". All transaction gains and losses from re-measurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statement of operations as financial income or expenses, as appropriate. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying financial statements include the amortization period for intangible assets, impairment valuation of intangible assets, valuation of share-based payments and the valuation allowance on deferred tax assets. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Cannabics Pharmaceutical Inc. and its wholly-owned subsidiary, G.R.I.N. Ultra Ltd. All significant inter-company balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At August 31, 2023 and 2022, cash equivalents consisted of bank accounts held at financial institutions. |
Concentration of Credit Risk | Concentration of Credit Risk The Company places its cash and cash equivalents with high credit quality financial institutions. There is Federal Deposit Insurance on the Company’s U.S. bank accounts for up to $ 250,000 |
Equipment, net | Equipment, net Equipment at August 31, 2023 consists of computer equipment, office equipment and cars recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation of property and equipment is computed by the straight-line method (after taking into account their respective estimated residual values) over the assets estimated useful lives of 3 years for computer equipment, 14 years for office equipment and 7 years for cars. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the consolidated statements of operations. Depreciation expense was $ 162,061 198,527 |
Revenue recognition | Revenue recognition Revenue is recognized when delivery has occurred, evidence of an arrangement exists, title and risks and rewards for the products are transferred to the customer, collection is reasonably assured and product returns can be reliably estimated. Revenue from license agreements is recognized over the periods from which the Company is entitled to the respective payments. |
Impairment or Disposal of Long-Lived Assets | Impairment or Disposal of Long-Lived Assets The Company accounts for the impairment or disposal of long-lived assets according to the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 360 “Property, Plant and Equipment”. ASC 360 clarifies the accounting for the impairment of long-lived assets and for long-lived assets to be disposed of, including the disposal of business segments and major lines of business. Long-lived assets are reviewed when facts and circumstances indicate that the carrying value of the asset may not be recoverable. When necessary, impaired assets are written down to estimated fair value based on the best information available. Estimated fair value is generally based on either appraised value or measured by discounting estimated future cash flows. Considerable management judgment is necessary to estimate discounted future cash flows. Accordingly, actual results could vary significantly from such estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which fair value is observable: Level 1 - fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3 - fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of August 31, 2023 and 2022. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. The Company applied ASC 820 for all non-financial assets and liabilities measured at fair value on a non-recurring basis. The adoption of ASC 820 for non-financial assets and liabilities did not have a significant impact on the Company’s financial statements. As of August 31, 2023, the company had no 1,343,584 As of August 31, 2023, the fair values of the Company’s financial instruments approximate their historical carrying amount. |
Research and development, net | Research and development, net Research and development expenses include costs directly attributable to the conduct of research and development programs, including the cost of salaries, employee benefits, the cost of supplies, the cost of services provided by outside contractors, including services related to the Company’s clinical trials, clinical trial expenses and the full cost of manufacturing product for use in research and preclinical development. All costs associated with research and developments are expensed as incurred. Clinical trial costs are a significant component of research and development expenses and include costs associated with third-party contractors. The Company outsources a substantial portion of its clinical trial activities, utilizing external entities such as Contract Research Organizations, independent clinical investigators, and other third-party service providers to assist the Company with the execution of its clinical studies. For each clinical trial that the Company conducts, clinical trial costs are expensed immediately. |
Stock Based Compensation | Stock Based Compensation The Company accounts for Stock-Based Compensation under ASC 718 “Compensation – Stock Compensation”, which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company accounts for stock-based compensation awards to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. Under ASC 505-50, the Company determines the fair value of the warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. Any stock options or warrants issued to non-employees are recorded in expense and additional paid-in capital in shareholders' deficit over the applicable service periods using variable accounting through the vesting dates based on the fair value of the options or warrants at the end of each period. The Company issues stock to consultants for various services. The costs for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty's performance is complete. The Company recognized consulting expense and a corresponding increase to additional paid-in-capital related to stock issued for services. |
Income Taxes | Income Taxes Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, future tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of assets and liabilities and their respective tax bases. Future tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability settled. The effect of a change in income tax rates on future income tax liabilities and assets is recognized in income in the period that the change occurs. Future income tax assets are recognized to the extent that they are considered more likely than not to be realized. The FASB has issued ASC 740 “Income Taxes”. ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by ASC 740 and concluded that the tax position of the Company has not met the more-likely-than-not threshold as of August 31, 2023. |
Comprehensive Income | Comprehensive Income The Company adopted ASC 220, Comprehensive Income |
Basic and Diluted Loss per Share | Basic and Diluted Loss per Share The Company computes income (loss) per share in accordance with ASC 260, “Earnings per Share”, which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the statement of operations. Basic EPS is computed by dividing income (loss) available to common shareholders by the weighted average number of shares outstanding during the period. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of August 31, 2023, and 2022, the potentially dilutive shares were anti-dilutive. |
Segment Information | Segment Information In accordance with the provisions of ASC 280-10, “Disclosures about Segments of an Enterprise and Related Information”, the Company is required to report financial and descriptive information about its reportable operating segments. The Company does not consider itself to have any operating segments as of August 31, 2023, and 2022. |
Reclassification | Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Class of Warrant or Right [Line Items] | |
Schedule of warrant activity | Schedule of warrant activity 2023 2022 2021 Weighted Average Exercise Weighted Average Exercise Weighted Average Exercise Warrants Price Warrants Price Warrants Price Warrants outstanding as of September 1 87,500 $ 88.6 87,500 $ 88.6 41,667 $ 120 Issued – $ – – $ – 45,667 $ 60 Exercised – $ – – $ – – $ – Expired (87,500 ) $ 88.6 – $ – – $ – Warrants outstanding as of August 31 – $ – 87,500 $ 88.6 87,500 $ 88.6 Warrants exercisable as of August 31 – $ – 87,500 $ 88.6 87,500 $ 88.6 |
Warrant 1 [Member] | |
Class of Warrant or Right [Line Items] | |
Schedule of assumptions | Schedule of assumptions PV of exercise Share price $ 1 Expected Volatility 102.0 Risk Free Interest Rate 1.58 Expected Term (years) 5 Expected Dividend Yield 0 |
Warrant 2 [Member] | |
Class of Warrant or Right [Line Items] | |
Schedule of assumptions | Schedule of assumptions PV of exercise Share price $ 0.50 Expected Volatility 117.0 Risk Free Interest Rate 0.3 Expected Term (years) 3 Expected Dividend Yield 0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate | Schedule of effective income tax rate For the Year Ended August 31, 2023 2022 United States statutory corporate income tax rate 21.0 21.0 Change in valuation allowance on deferred tax assets -21.0 -21.0 Provision for income tax – – |
Schedule of deferred income tax assets | Schedule of deferred income tax assets August 31, 2023 2022 US Deferred income tax assets: Net operating loss carry forwards benefit $ 3,035,360 $ 2,576,499 Valuation allowance (3,035,360 ) (2,576,499 ) Net deferred income tax assets $ – $ – Outside US Deferred income tax assets: Net operating loss carry forwards benefit $ 2,949,564 $ 2,804,533 Valuation allowance (2,949,564 ) (2,804,533 ) $ – $ – August 31, 2023 2022 Consolidated Deferred income tax assets: Net operating loss carry forwards benefit $ 5,984,924 $ 5,381,031 Valuation allowance (5,984,924 ) (5,381,031 ) Net deferred income tax assets $ – $ – |
General & administrate expens_2
General & administrate expenses (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of general and administrative expenses | Schedule of general and administrative expenses For the year Ended For the year Ended Salaries and related expenses $ 461,375 $ 379,618 Share based payment to related parties 180,480 728,870 Legal and professional fees 149,108 443,851 Insurance 68,278 93,192 Marketing expenses 1,223 15,977 Other expenses 49,516 139,139 Total general and administrative expenses $ 909,980 $ 1,800,647 * |
Financial (Income) expenses (Ta
Financial (Income) expenses (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of financial income expenses | Schedule of financial income expenses For the year For the year Interest and bank charges $ 1,174 $ 1,273 Loss (Gain) from convertible loan valuation 54,810 722,236 Currency exchange differences loss (profit) (3,361 ) 58,571 Total other income expenses $ 52,623 $ 782,080 |
Nature of Business, Presentat_2
Nature of Business, Presentation and Going Concern (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net loss | $ 3,710,234 | $ 3,723,250 |
Cumulative losses | $ 24,259,202 | $ 20,548,968 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Platform Operator, Crypto-Asset [Line Items] | ||
Federal deposit insurance | $ 250,000 | |
Depreciation expense | 162,061 | $ 198,527 |
Fair Value, Inputs, Level 1 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Fair value of financial instruments | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Fair value of financial instruments | $ 1,343,584 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Chief Financial Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Compensation paid | $ 40,321 | $ 75,318 |
C E O And Chairman [Member] | ||
Related Party Transaction [Line Items] | ||
Compensation paid | 79,100 | 334,395 |
Accrued salaries | 416,497 | 196,687 |
Outstanding payable | 613,184 | 196,687 |
Three Directors [Member] | ||
Related Party Transaction [Line Items] | ||
Accrued salaries | 43,000 | 36,000 |
Cannabics Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 223,645 | 223,645 |
Chairman And Board Members [Member] | Share Based Payment [Member] | ||
Related Party Transaction [Line Items] | ||
Non cash expense | $ 168,551 | $ 670,850 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Aug. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Bank guarantee | $ 5,000 |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 12, 2023 | Jun. 15, 2022 | May 12, 2022 | Mar. 16, 2022 | Apr. 23, 2021 | Feb. 22, 2021 | Dec. 21, 2020 | Dec. 16, 2020 | Mar. 31, 2023 | Aug. 31, 2023 | Aug. 31, 2022 | |
Class of Stock [Line Items] | |||||||||||
Common stock, shares authorized | 900,000,000 | 900,000,000 | |||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | |||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||||||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |||||||||
Stock split | 1:120 | ||||||||||
Stock issued for exercise of convertible debt, value | $ 569,930 | $ 225,286 | |||||||||
Senior Secured Note [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Senior secured note | $ 1,375,000 | ||||||||||
Principal amount | $ 2,750,000 | ||||||||||
Original issue discount percentage | 10% | ||||||||||
Warrants issued | 45,833 | ||||||||||
Warrants exercise price | $ 60 | ||||||||||
Demand Note [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Principal amount | $ 280,000 | ||||||||||
Original issue discount | $ 40,000 | ||||||||||
Initial Note [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Notes payable | $ 825,000 | ||||||||||
Unamortized Discount | $ 75,000 | ||||||||||
Second Note [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Notes payable | $ 550,000 | ||||||||||
Unamortized Discount | $ 50,000 | ||||||||||
Note [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Notes payable | $ 1,375,000 | ||||||||||
Unamortized Discount | $ 125,000 | ||||||||||
Securities Purchase Agreement [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Senior convertible notes issued | $ 2,750,000 | ||||||||||
Conversion price | $ 42 | ||||||||||
Lower conversion price | $ 42 | ||||||||||
Interest rate | 5% | 9% | 18% | 5% | |||||||
Principal amount | $ 65,000 | $ 154,250 | $ 35,000 | ||||||||
Net of issuance expenses | $ 65,000 | $ 154,000 | $ 35,000 | ||||||||
Investor [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Convertible shares | 21,372,693 | ||||||||||
Stock issued for exercise of convertible debt, value | $ 569,930 | ||||||||||
Investor [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Convertible shares | 32,614 |
Warrants (Details - Fair value)
Warrants (Details - Fair value) - Warrant 1 [Member] | Sep. 24, 2018 $ / shares |
Class of Warrant or Right [Line Items] | |
PV of exercise Share price | $ 1 |
Expected Volatility | 102% |
Risk Free Interest Rate | 1.58% |
Expected Term (years) | 5 years |
Expected Dividend Yield | 0% |
Warrants (Details - Fair Valu_2
Warrants (Details - Fair Value) - Warrant 2 [Member] | Dec. 16, 2020 $ / shares |
Class of Warrant or Right [Line Items] | |
PV of exercise Share price | $ 0.50 |
Expected Volatility | 117% |
Risk Free Interest Rate | 0.30% |
Expected Term (years) | 3 years |
Expected Dividend Yield | 0% |
Warrants (Details - Warrant act
Warrants (Details - Warrant activity) - Warrants [Member] - $ / shares | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Class of Warrant or Right [Line Items] | |||
Warrants outstanding, beginning balance | 87,500 | 87,500 | 41,667 |
Weighted average exercise price, warrants outstanding, beginning balance | $ 88.6 | $ 88.6 | $ 120 |
Warrants issued | 0 | 0 | 45,667 |
Weighted average exercise price, warrants issued | $ 0 | $ 0 | $ 60 |
Warrants exercised | 0 | 0 | 0 |
Weighted average exercise price, warrants exercised | $ 0 | $ 0 | $ 0 |
Warrants expired | (87,500) | 0 | 0 |
Weighted average exercise price, warrants expired | $ 88.6 | $ 0 | $ 0 |
Warrants outstanding, ending balance | 0 | 87,500 | 87,500 |
Weighted average exercise price, warrants outstanding, ending balance | $ 0 | $ 88.6 | $ 88.6 |
Warrants exercisable | 0 | 87,500 | 87,500 |
Weighted average exercise price, warrants exercisable | $ 0 | $ 88.6 | $ 88.6 |
Warrants (Details Narrative)
Warrants (Details Narrative) - USD ($) | Dec. 16, 2020 | Sep. 24, 2018 |
Warrant 1 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants issued, shares | 41,667 | |
Expiry date | Aug. 24, 2023 | |
Fair value of warrants issued | $ 2,784,387 | |
Warrant 2 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants issued, shares | 45,667 | |
Expiry date | Aug. 24, 2023 | |
Fair value of warrants issued | $ 515,818 |
Income Taxes (Details - rate)
Income Taxes (Details - rate) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
United States statutory corporate income tax rate | 21% | 21% |
Change in valuation allowance on deferred tax assets | (21.00%) | (21.00%) |
Provision for income tax | 0% | 0% |
Income Taxes (Details - Deferre
Income Taxes (Details - Deferred tax assets) - USD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards benefit | $ 5,984,924 | $ 5,381,031 |
Valuation allowance | (5,984,924) | (5,381,031) |
Net deferred income tax assets | 0 | 0 |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards benefit | 3,035,360 | 2,576,499 |
Valuation allowance | (3,035,360) | (2,576,499) |
Net deferred income tax assets | 0 | 0 |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards benefit | 2,949,564 | 2,804,533 |
Valuation allowance | (2,949,564) | (2,804,533) |
Net deferred income tax assets | $ 0 | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Effective tax rate | 21% | 21% |
Net operating loss carryforwards | $ 24,259,202 | |
Increase (decrease) in valuation allowance | 603,893 | $ 1,055,107 |
Israel Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 12,593,815 | 12,373,689 |
Effective tax rate, Israel | 23% | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective tax rate | 21% | |
United States [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 1,848,572 | $ 903,813 |
Capital loss (Details Narrative
Capital loss (Details Narrative) | Dec. 09, 2022 USD ($) |
Capital Loss | |
Sale consideration | $ 24,200 |
Capital loss | $ 2,726,231 |
General and administrative expe
General and administrative expenses (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Other Income and Expenses [Abstract] | ||
Salaries and related expenses | $ 461,375 | $ 379,618 |
Share based payment to related parties | 180,480 | 728,870 |
Legal and professional fees | 149,108 | 443,851 |
Insurance | 68,278 | 93,192 |
Marketing expenses | 1,223 | 15,977 |
Other expenses | 49,516 | 139,139 |
Total general and administrative expenses | $ 909,980 | $ 1,800,647 |
Financial (Income) expenses (De
Financial (Income) expenses (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Other Income and Expenses [Abstract] | ||
Interest and bank charges | $ 1,174 | $ 1,273 |
Loss (Gain) from convertible loan valuation | 54,810 | 722,236 |
Currency exchange differences loss (profit) | (3,361) | 58,571 |
Total other income expenses | $ 52,623 | $ 782,080 |