Sauer Energy 10-Q 23 Apr 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	6 Months Ended
	Feb. 28, 2018	Jan. 19, 2018	Feb. 28, 2016
Document and Entity Information:
Entity Registrant Name	SAUER ENERGY, INC.
Document Type	10-Q
Document Period End Date	Feb. 28, 2018
Amendment Flag	false
Entity Central Index Key	1,446,152
Current Fiscal Year End Date	--08-31
Entity Common Stock, Shares Outstanding		336,894,876
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Public Float			$ 4,292,836
Trading Symbol	seny

Statement of Financial Position

Statement of Financial Position - USD ($)	Feb. 28, 2018	Aug. 31, 2017
Assets, Current
Cash and Cash Equivalents, at Carrying Value	$ 1,015	$ 1,952
Other Assets, Current	1,500	1,500
Assets, Current	2,515	3,452
Assets, Noncurrent
Property, Plant and Equipment, Net	33,617	41,635
Indefinite-Lived Intangible Assets (Excluding Goodwill)	1,067,543	1,112,631
Other Assets, Noncurrent	13,507	13,507
Assets, Noncurrent	1,081,050	1,126,138
Assets	1,117,182	1,171,225
Liabilities, Current
Accrued Liabilities, Current	114,595	37,947
Due To Related Parties Current	5,000	3,000
Notes Payable, Current	45,000	105,000
Liabilities, Current	164,595	145,947
Liabilities, Noncurrent
Liabilities	164,595	145,947
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
Common Stock, Value, Issued	43,703	35,121
Additional Paid in Capital, Common Stock	13,130,256	12,473,432
Retained Earnings (Accumulated Deficit)	(12,221,372)	(11,483,275)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	952,587	1,025,278
Liabilities and Equity	$ 1,117,182	$ 1,171,225

Statement of Financial Positio3

Statement of Financial Position - Parenthetical - $ / shares	Feb. 28, 2018	Aug. 31, 2017
Balance Sheets
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	650,000,000	650,000,000
Common Stock, Shares Issued	437,040,839	351,229,209
Common Stock, Shares Outstanding	437,040,839	351,229,209

Statement of Income

Statement of Income - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Revenues
Sales Revenue Goods, Net			$ 29,649
Revenues			29,649
Cost of Revenue
Cost of Goods Sold			15,106
Cost of Revenue			15,106
Gross Profit			14,543
Operating Expenses
Professional Fees	$ 21,672	$ 28,443	38,449	$ 41,445
Consulting	25,007	67,650	79,780	120,500
Rent Expense	44,022	45,013	89,035	84,086
Research and Development Expense	39,857	79,494	84,710	151,428
General and Administrative Expense	56,737	111,528	123,868	187,127
Operating Expenses	187,295	332,128	415,842	584,586
Operating Income (Loss)	(187,295)	(332,128)	(401,299)	(584,586)
Interest and Debt Expense
Interest Expense	190,008	149,076	356,631	276,483
Derivative Loss On Derivative	667		(19,833)
Interest and Debt Expense	190,675	149,076	336,798	276,483
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(377,970)	(481,204)	(738,097)	(861,069)
IncomeTaxExpenseBenefitContinuingOperationsAbstract
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	(377,970)	(481,204)	(738,097)	(861,069)
Net Income (Loss) Attributable to Parent	(377,970)	(481,204)	(738,097)	(861,069)
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParentAbstract
ComprehensiveIncomeNetOfTax	$ (377,970)	$ (481,204)	$ (738,097)	$ (861,069)
Earnings Per Share
Earnings Per Share, Basic	$ 0	$ 0	$ 0	$ (0.01)
Weighted Average Number of Shares Outstanding, Basic	415,700,229	308,790,424	351,229,209	170,260,964
Earnings Per Share, Diluted	$ 0	$ 0	$ 0	$ (0.01)
Weighted Average Number of Shares Outstanding, Diluted	415,700,229	308,790,424	351,229,209	170,260,964

Statement of Cash Flows

Statement of Cash Flows - USD ($)	6 Months Ended
	Feb. 28, 2018	Feb. 28, 2017
Net Cash Provided by (Used in) Operating Activities
Net Income (Loss)	$ (738,097)	$ (861,069)
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Depreciation	53,106	66,932
Fair Value Change of Derivative Liability	74,147
Issuance of Stock and Warrants for Services or Claims	264,779	274,494
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	(346,065)	(519,643)
Increase (Decrease) in Operating Assets
Increase (Decrease) in Prepaid Expense and Other Assets		2,995
Increase (Decrease) in Other Operating Assets
Increase (Decrease) in Operating Assets		2,995
Increase (Decrease) in Operating Liabilities
Increase (Decrease) in Accounts Payable	2,000
Increase (Decrease) in Accounts Payable and Accrued Liabilities	81,729	(21,609)
Increase (Decrease) in Operating Capital	83,729	(21,609)
Net Cash Provided by (Used in) Operating Activities	(262,336)	(538,257)
Net Cash Provided by (Used in) Financing Activities
Proceeds from (Repayments of) Short-term Debt		(90,000)
Proceeds from Issuance of Common Stock	261,399	689,500
Net Cash Provided by (Used in) Financing Activities	261,399	599,500
Cash and Cash Equivalents, Period Increase (Decrease)	(937)	61,243
Cash and Cash Equivalents, at Carrying Value	1,952	46,585
Cash and Cash Equivalents, at Carrying Value	$ 1,015	$ 107,828

Note 1 - Organization and Summa

Note 1 - Organization and Summary of Significant Accounting Policies	6 Months Ended
	Feb. 28, 2018
Notes
Note 1 - Organization and Summary of Significant Accounting Policies:	Note 1 - Organization and summary of significant accounting policies: These unaudited interim financial statements as of and for the six months ended February 28, 2018, reflect all adjustments which, in the opinion of management, are necessary to fairly state the Company’s financial position and the results of its operations for the periods presented, in accordance with the accounting principles generally accepted in the United States of America. All adjustments are of a normal recurring nature. These unaudited interim financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s fiscal year end August 31, 2017, report. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the six month period ended February 28, 2018, are not necessarily indicative of results for the entire year ending August 31, 2018. Organization Sauer Energy, Inc. was incorporated in California on August 7, 2008. The Company was incorporated to develop and market wind power electric generators. Current Business of the Company On July 25, 2010, the Company executed a plan of reorganization with BCO Hydrocarbon Ltd., a Nevada exploration stage enterprise, in which Sauer Energy Inc. became a subsidiary of BCO. BCO changed its name to Sauer Energy, Inc. The Company leases warehouse/office facilities in Oxnard, California, in which the Company develops wind power technology. A production prototype of a vertical axis wind turbine (“VAWT”) has been developed. Its compact size is aimed at the small business and home market. The company is focused on plans to manufacture and distribute the product. In May, 2012, the acquisition of the entire assets of a wind turbine company added two more wind turbine models to the Company, together with patents and a distribution network. During 2016 and 2017, the Company continued to develop its technology. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared using the basis of accounting generally accepted in the United States of America. Under this basis of accounting, revenues are recorded as earned and expenses are recorded at the time liabilities are incurred. The Company has adopted August 31 as the fiscal year-end. Cash and Cash Equivalents The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Fair Value of Financial Instruments The Financial Accounting Standards Board issued ASC (Accounting Standards Codification) 820-10 (SFAS No. 157), “Fair Value Measurements and Disclosures" for financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. FASB ASC 820-10 defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required by the standard that the Company uses to measure fair value: · Level 1: Quoted prices in active markets for identical assets or liabilities. · Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. · Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of the Company ’ s financial instruments as of August 31, 2017, reflect: · Cash: Level 1 Measurement based on bank reporting. Level 2 Loans from Officers and related parties · Federal income taxes The Company utilizes FASB ACS 740, “ Income Taxes ” , Interest and penalties on tax deficiencies recognized in accordance with ASC accounting standards are classified as income taxes in accordance with ASC Topic 740-10-50-19. Research and development costs The Company expenses costs of research and development cost as incurred. The costs for the three months ended February 28, 2018 , and three months ended February 28, 2017 , were $ 39,857and $79,494 respectively. The costs for the six months ended February 28, 2018 , and February 28, 2017 , were $84,710 and $151,428 respectively. Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation and ASC 505, Equity Based Payments to Non-Employees, which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based awards made to employees and directors, including stock options. ASC 718 requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The Company uses the Black-Scholes option-pricing model as its method of determining fair value. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the statement of operations over the requisite service period. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Basic and Diluted Earnings (Loss) Per Share – Net loss per share is calculated in accordance with FASB ASC 260, Earnings Per Share, for the period presented. Basic net loss per share is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The Company does not have potentially dilutive securities outstanding consisting of warrants to purchase common stock or convertible loans. Recent Accounting Pronouncements Management has considered all recent accounting pronouncements. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, the Company’s management has not determined whether implementation of such standards would be material to its financial statements. The Company is reviewing the effects of following recent updates. The Company has no expectation that any of these items will have a material effect upon the financial statements. · Update 2016-15 · Update 2016-09 · Update 2016-07 · Update 2016-06 · Update 2016-03 · Update 2016-01 · Update 2015-17 · Update 2015-16—Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments · Update 2015-15—Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update) Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported losses, total assets, or stockholders ’ equity as previously reported.

Note 3 - Going Concern

Note 3 - Going Concern	6 Months Ended
	Feb. 28, 2018
Notes
Note 3 - Going Concern	Note 3 – Going Concern The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has accumulated a deficit of $(12,221,372) as of February 28, 2018 , and had no revenues, which raises substantial doubt as to the Company’s ability to continue as a going concern. In view of these matters, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company ’ s ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management plans to raise additional capital through the sale of stock to pursue business development activities.

Note 4 - Property and Equipment

Note 4 - Property and Equipment	6 Months Ended
	Feb. 28, 2018
Notes
Note 4 - Property and Equipment	Note 4 – Property and Equipment Property and Equipment consisted of the following at February 28, 2018, and August 31, 2017: 2/28/17 8/31/17 Property Plant and Equipment $ 282,427 $ 282,427 Less accumulated depreciation (248,810) (240,792) Property and equipment, net $ 33,617 $ 41,635 The Company depreciates its property and equipment using accelerated methods over lives of five or seven years. In six months ended February 28, 2018 , and 2017, depreciation was $8018and $9,480, respectively.

Note 5 & 6 - Goodwill & Intangi

Note 5 & 6 - Goodwill & Intangible Asset Disclosure	6 Months Ended
	Feb. 28, 2018
Notes
Note 5 & 6 - Goodwill & Intangible Asset Disclosure	Note 5 – Asset Purchase On May 11, 2012, the Company entered into an Asset Purchase Agreement Tangible Assets Equipment $ 23,000 Supplies 1,000 Inventory 1,000 Total Intangible Assets $ 25,000 Intangible Assets Goodwill $ 5,000 Intellectual Property (10 patents, 2 trademarks, network systems, wind turbine monitoring system, URL) 1,467,500 Restrictive Covenant 2,500 Total Intangible Assets $ 1,475,000 Note 6 – Intangible Property The Company has acquired intangible property in patents, patents pending and goodwill. The patents are ­­­being amortized over their expected lives of not more than seventeen years. The restrictive covenants were fully amortized as of August 31, 2013. Those patent costs allocated to pending patents do not begin amortizing until the underlying patent is issued. If for some reason a patent is not issued the costs ­­­associated with the acquisition and the continuation of the application are fully amortized in the year of the denial. February 28, 2018 August 31, 2017 Patents $ 109,092 $ 109,092 Purchased Patents 1,467,500 1,467,500 Goodwill 5,000 5,000 Less Amortization (514,049) (468,961) $ 1,062,543 $ 1,112,631 In six months ended February 28, 2018 and 2017, amortization was $45,088 and $45,088, respectively.

Note 7 & 8 - Notes Payable

Note 7 & 8 - Notes Payable	6 Months Ended
	Feb. 28, 2018
Notes
Note 7 & 8 - Notes Payable	Note 7 - Notes Payable On July 26, 2016, the Company entered into short term note agreement with Beaufort Capital Partners, LLC., in the amount of $50,000 with an interest rate of 10% per annum, with a due date of October 26, 2016. It has been paid in full. On August 30, 2016, the Company entered into a short term note agreement with Beaufort Capital Partners, LLC., in the amount of $40,000 with an interest rate of 10% per annum, with a due date of December 1, 2016.The balance has been paid in full. On May 2, 2017, the Company entered into a short-term note agreement with an investor in the amount of $50,000 with an interest rate of 10% per annum, with a due date of September 2, 2017. The balance has been paid in full. On May 24, 2017, the Company entered into a convertible promissory note with an investor in the amount of $105,000 with an interest rate of 8% per annum, with a due date of May 24, 2018. Convertible 180 days after issuance, at 80% of the lowest trading price over the previous 20 trading days. The balance has been paid in full. On February 21, 2018, the Company entered into a Promissory Note in the amount of $45,000, with an interest rate of 8% per annum, with a due date of November 21, 2018, which can be prepaid at any time, without consequence, and is not convertible. Note 8 - Related Party Note As of August 31, 2016, we have related party payable to Dieter Sauer in the amount of $5,000 for consulting in the month of August, 2016, and as of three months ended February 28, 2017 we had a related party payable.

Note 9 - Commitments and Contin

Note 9 - Commitments and Contingencies	6 Months Ended
	Feb. 28, 2018
Notes
Note 9 - Commitments and Contingencies	Note 9 – Commitments and Contingencies Rental Agreement: On August 7, 2015, the Company entered into a Commercial Single-Tenant Lease for a 26,550 square foot building in Oxnard, California, with monthly payments of $13,507 for sixty months, plus common area costs of $507.38 per month. All company operations will be concentrated at the site. Lease Commitments – following five fiscal years: Fiscal year ended August 31, Year Lease 2018 84,086 2019 168,173 2020 168,173 For the three months ending February 28, 2018, and 2017, the rent expense was $42,043 and $42,043, respectively. For the six months ending February 28, 2018, and 2017, the rent expense was $84,086 and $84,086, respectively.

Note 10 - Federal Income Tax

Note 10 - Federal Income Tax	6 Months Ended
	Feb. 28, 2018
Notes
Note 10 - Federal Income Tax	Note 10 - Federal income tax No provision was made for federal income tax, since the Company has had significant net operating losses. Net operating loss carryforwards may be used to reduce taxable income through the year 2035. The availability of the Company’s net operating loss carryforwards are subject to limitation if there is a 50% or more positive change in the ownership of the Company’s stock, unless the same or similar business is carried on. The net operating loss carryforward for federal and state income tax purposes was approximately $12,221,372, which will expire in 2029 through 2035 if not utilized. The Company uses 21% for a composite tax rate to estimate the value of net operating losses for deferred taxes. The Company as of six months ended February 28, 2018 , and 2017, recognized net operating losses of approximately $738,097 and $861,069, respectively. The total estimated deferred tax asset as of three months ended February 28, 2018 , was $2,566,488. The Company recorded a 100% valuation allowance for the deferred tax asset since it is more likely than not that some part or all of the deferred tax asset will not be realized. Although Management believes that its estimates are reasonable, no assurance can be given that the final tax outcome of these matters will not be different than that which is reflected in our tax provisions. Ultimately, the actual tax benefits to be realized will be based upon future taxable earnings levels, which are very difficult to predict. No provision was made for federal income tax, since the Company had an overall net operating loss and has accumulated net operating loss carryforwards. For the three and six months ended February 28, 2018, and 2017, no income tax expense has been realized as a result of operations and no income tax penalties and/or interest have been accrued related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and in the State of California. These filings are subject to a three-year statute of limitations. The Company’s evaluation of income tax positions included the years ended August 31, 2014, through 2018 could be subject to agency examinations. No filings are currently under examination. No adjustments have been made to reduce the estimated income tax benefit at fiscal year-end or at the quarterly reporting dates. Any valuations relating to these income tax provisions will comply with U.S. generally accepted accounting principles.

Note 11 - Capital Stock

Note 11 - Capital Stock	6 Months Ended
	Feb. 28, 2018
Notes
Note 11 - Capital Stock	Note 11 – Capital Stock The Company went public on 7/25/ 2010. Its Common Stock is traded on the open market under the symbol OTCQB: SENY. During the quarter ending November 30, 2016, the Company issued 26,075,562 shares of common stock for $322,500 pursuant to an Equity Purchase Agreement. During the quarter ending February 28, 2017, the Company issued 24,365,406 shares of common stock for $367,000 pursuant to an Equity Purchase Agreement. During the quarter ending May 31, 2017, the Company issued 5,259,032 shares of common stock for $73,075 pursuant to an Equity Purchase Agreement. During the quarter ending August 31, 2017, the Company issued 22,095,545 shares of common stock for $210,000 pursuant to an Equity Purchase Agreement. During the quarter ending November 30, 2017, the Company issued 29,068,414 shares of common stock for $185,000 pursuant to an Equity Purchase Agreement. During the quarter ending February 28, 2018, the Company issued 27,507,176 shares of common stock for $75,481.72 pursuant to a convertible note. During the quarter ending February 28, 2018, the Company issued 21,236,040 shares of common stock for $76,398.84 pursuant to an Equity Purchase Agreement.

Note 12- Subsequent Events

Note 12- Subsequent Events	6 Months Ended
	Feb. 28, 2018
Notes
Note 12- Subsequent Events	NOTE 12 – Subsequent Events Management has reviewed and evaluated subsequent events and transactions occurring after the balance sheet date, February 28, 2018, through the filing of this Quarterly report on April 23, 2018, and determined that the following additional subsequent events have occurred: On February 28, 2018, the Company entered into a convertible Promissory Note with Geneva Roth Remark Holdings, Inc., in the amount of $78,000, with an interest rate of 12% per annum and a due date of February 28, 2019, which can be prepaid prior to 180 days. The unpaid portion becomes convertible after 180 days, at 61% of the average of the lowest two trading prices over the 15 trading days prior to the conversion date. Funds were received on March, 1, 2018. The Company has initiated a one for five reverse split of its outstanding and authorized shares of common stock. Effecting this corporate action is subject to regulatory (FINRA) approval, which has not, as of the date of this report, been obtained.

Note 1 - Organization and Sum15

Note 1 - Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	6 Months Ended
	Feb. 28, 2018
Policies
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents.

Note 1 - Organization and Sum16

Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates (Policies)	6 Months Ended
	Feb. 28, 2018
Policies
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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.

Note 1 - Organization and Sum17

Note 1 - Organization and Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)	6 Months Ended
	Feb. 28, 2018
Policies
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Financial Accounting Standards Board issued ASC (Accounting Standards Codification) 820-10 (SFAS No. 157), “Fair Value Measurements and Disclosures" for financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. FASB ASC 820-10 defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required by the standard that the Company uses to measure fair value: · Level 1: Quoted prices in active markets for identical assets or liabilities. · Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. · Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of the Company ’ s financial instruments as of August 31, 2017, reflect: · Cash: Level 1 Measurement based on bank reporting. Level 2 Loans from Officers and related parties ·

Note 1 - Organization and Sum18

Note 1 - Organization and Summary of Significant Accounting Policies: Federal Income Taxes (Policies)	6 Months Ended
	Feb. 28, 2018
Policies
Federal Income Taxes	Federal income taxes The Company utilizes FASB ACS 740, “ Income Taxes ” , Interest and penalties on tax deficiencies recognized in accordance with ASC accounting standards are classified as income taxes in accordance with ASC Topic 740-10-50-19.

Note 1 - Organization and Sum19

Note 1 - Organization and Summary of Significant Accounting Policies: Research and Development Costs (Policies)	6 Months Ended
	Feb. 28, 2018
Policies
Research and Development Costs	Research and development costs The Company expenses costs of research and development cost as incurred. The costs for the three months ended February 28, 2018 , and three months ended February 28, 2017 , were $ 39,857and $79,494 respectively. The costs for the six months ended February 28, 2018 , and February 28, 2017 , were $84,710 and $151,428 respectively.

Note 1 - Organization and Sum20

Note 1 - Organization and Summary of Significant Accounting Policies: Stock-based Compensation (Policies)	6 Months Ended
	Feb. 28, 2018
Policies
Stock-based Compensation	Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation and ASC 505, Equity Based Payments to Non-Employees, which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based awards made to employees and directors, including stock options. ASC 718 requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The Company uses the Black-Scholes option-pricing model as its method of determining fair value. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the statement of operations over the requisite service period. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

Note 1 - Organization and Sum21

Note 1 - Organization and Summary of Significant Accounting Policies: Basic and Diluted Earnings (loss) Per Share - (Policies)	6 Months Ended
	Feb. 28, 2018
Policies
Basic and Diluted Earnings (loss) Per Share -	Basic and Diluted Earnings (Loss) Per Share – Net loss per share is calculated in accordance with FASB ASC 260, Earnings Per Share, for the period presented. Basic net loss per share is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The Company does not have potentially dilutive securities outstanding consisting of warrants to purchase common stock or convertible loans.

Note 1 - Organization and Sum22

Note 1 - Organization and Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	6 Months Ended
	Feb. 28, 2018
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements Management has considered all recent accounting pronouncements. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, the Company’s management has not determined whether implementation of such standards would be material to its financial statements. The Company is reviewing the effects of following recent updates. The Company has no expectation that any of these items will have a material effect upon the financial statements. · Update 2016-15 · Update 2016-09 · Update 2016-07 · Update 2016-06 · Update 2016-03 · Update 2016-01 · Update 2015-17 · Update 2015-16—Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments · Update 2015-15—Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update)

Note 1 - Organization and Sum23

Note 1 - Organization and Summary of Significant Accounting Policies: Reclassifications (Policies)	6 Months Ended
	Feb. 28, 2018
Policies
Reclassifications	Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported losses, total assets, or stockholders ’ equity as previously reported.

Note 4 - Property and Equipme24

Note 4 - Property and Equipment: Property Plant & Equipment Table (Tables)	6 Months Ended
	Feb. 28, 2018
Tables/Schedules
Property Plant & Equipment Table	Property and Equipment consisted of the following at February 28, 2018, and August 31, 2017: 2/28/17 8/31/17 Property Plant and Equipment $ 282,427 $ 282,427 Less accumulated depreciation (248,810) (240,792) Property and equipment, net $ 33,617 $ 41,635

Note 5 & 6 - Goodwill & Intan25

Note 5 & 6 - Goodwill & Intangible Asset Disclosure: Schedule of Other Assets (Tables)	6 Months Ended
	Feb. 28, 2018
Tables/Schedules
Schedule of Other Assets	On May 11, 2012, the Company entered into an Asset Purchase Agreement Tangible Assets Equipment $ 23,000 Supplies 1,000 Inventory 1,000 Total Intangible Assets $ 25,000 Intangible Assets Goodwill $ 5,000 Intellectual Property (10 patents, 2 trademarks, network systems, wind turbine monitoring system, URL) 1,467,500 Restrictive Covenant 2,500 Total Intangible Assets $ 1,475,000

Note 5 & 6 - Goodwill & Intan26

Note 5 & 6 - Goodwill & Intangible Asset Disclosure: Schedule of Intangible Assets and Goodwill (Tables)	6 Months Ended
	Feb. 28, 2018
Tables/Schedules
Schedule of Intangible Assets and Goodwill	The Company has acquired intangible property in patents, patents pending and goodwill. The patents are ­­­being amortized over their expected lives of not more than seventeen years. The restrictive covenants were fully amortized as of August 31, 2013. Those patent costs allocated to pending patents do not begin amortizing until the underlying patent is issued. If for some reason a patent is not issued the costs ­­­associated with the acquisition and the continuation of the application are fully amortized in the year of the denial. February 28, 2018 August 31, 2017 Patents $ 109,092 $ 109,092 Purchased Patents 1,467,500 1,467,500 Goodwill 5,000 5,000 Less Amortization (514,049) (468,961) $ 1,062,543 $ 1,112,631