Sauer Energy S-1/A 20 Apr 15 2015 FY IPO registration (amended) Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	6 Months Ended
	Feb. 28, 2015	Mar. 12, 2015	Feb. 28, 2014
Document and Entity Information:
Entity Registrant Name	Sauer Energy, Inc.
Document Type	S-1
Document Period End Date	28-Feb-15
Amendment Flag	FALSE
Entity Central Index Key	1446152
Current Fiscal Year End Date	-23
Entity Common Stock, Shares Outstanding		118,151,368
Entity Public Float			$11,815,136
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	2015
Document Fiscal Period Focus	FY

Statement_of_Financial_Positio

Statement of Financial Position (USD $)	Feb. 28, 2015	Aug. 31, 2014	Aug. 31, 2013
Balance Sheets
Cash and Cash Equivalents, at Carrying Value	$36,676	$459,363	$19,178
Prepaid Expense, Current	612	593
Other Assets, Current		1,500
Assets, Current	37,288	461,456	19,178
Property, Plant and Equipment, Gross	121,036	146,704	62,782
Indefinite-Lived Intangible Assets (Excluding Goodwill)	1,373,992	1,410,973	1,425,231
Other Assets, Noncurrent	14,000	14,000	14,000
Assets, Noncurrent	1,509,028	1,571,677	1,502,013
Assets	1,546,316	2,033,133	1,521,191
Accrued Liabilities, Current	5,820	21,516	5,267
Loans Payable, Current	500,000	600,000	424,456
Derivative Instruments and Hedges, Liabilities	333,333	1,025,000	350,344
Liabilities, Current	839,153	1,646,516	780,067
Liabilities	839,153	1,646,516	780,067
Common Stock, Value, Issued	11,752	11,515	9,374
Additional Paid in Capital, Common Stock	8,291,266	8,191,503	6,329,521
Retained Earnings (Accumulated Deficit)	-7,595,855	-7,816,401	-5,597,771
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	707,163	386,617	741,124
Liabilities and Equity	$1,546,316	$2,033,133	$1,521,191

Statement_of_Financial_Positio1

Statement of Financial Position - Parenthetical (USD $)	Feb. 28, 2015	Aug. 31, 2014	Aug. 31, 2013
Balance Sheets
Common Stock, Par Value	$0.00	$0.00	$0.00
Common Stock, Shares Authorized	650,000,000	650,000,000	650,000,000
Common Stock, Shares Issued	117,515,236	115,150,246	93,742,564
Common Stock, Shares Outstanding	117,515,236	115,150,246	93,742,564

Statement_of_Income

Statement of Income (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014	Aug. 31, 2014	Aug. 31, 2013
Income Statement
Professional Fees	$20,347	$39,608	$48,772	$91,699	$115,469	$63,201
Consulting	30,000	28,072	73,814	52,203	140,364	418,629
Other Cost and Expense, Operating		-325,000		-325,000
Research and Development Expense	94,081	29,328	133,695	53,033	128,387	91,493
General and Administrative Expense	119,799	70,258	214,840	157,535	384,058	775,040
Operating Expenses	264,227	-157,734	471,121	29,470	768,278	1,348,363
Operating Income (Loss)	-264,227	157,734	-471,121	-29,470	-768,278	-1,348,363
Interest Expense				1,667	-325,989	546,123
Settlement Expense		127,485		127,485	1,101,685
Derivative Loss On Derivative	-441,667	-43,225	-691,667	-51,561	674,656	350,344
Interest and Debt Expense	-441,667	84,260	-691,667	77,591	1,450,352	896,467
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	177,440	73,474	220,546	-107,061	-2,218,630	-2,244,830
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	177,440	73,474	220,546	-107,061	-2,218,630	-2,244,830
Net Income (Loss) Attributable to Parent	177,440	73,474	220,546	-107,061	-2,218,630	-2,244,830
ComprehensiveIncomeNetOfTax	$177,440	$73,474	$220,546	($107,061)	($2,218,630)	($2,244,830)
Earnings Per Share, Basic	$0	$0	$0	$0	($0.02)	($0.02)
Weighted Average Number of Shares Outstanding, Basic	116,005,571	97,507,653	115,575,546	96,094,266	102,456,356	90,897,168
Earnings Per Share, Diluted	$0	$0	$0	$0	($0.02)	($0.02)
Weighted Average Number of Shares Outstanding, Diluted	116,005,571	97,507,653	115,575,546	96,094,266	102,456,356	90,897,168

Statement_of_Shareholders_Equi

Statement of Shareholders' Equity (USD $)	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Stockholders' Equity at Aug. 31, 2013	$9,374	$6,329,521	($5,597,771)	$741,124
Shares, Outstanding at Aug. 31, 2013	93,742,564			93,742,564
Stock Issued During Period, Value, New Issues	2,141	1,861,982		1,864,123
Stock Issued During Period, Shares, New Issues	21,407,682			21,407,682
Adjustments to Additional Paid in Capital, Warrant Issued		0		0
Stock Repurchased and Retired During Period, Shares				0
Net Income (Loss)			-2,218,630	-2,218,630
Stockholders' Equity at Aug. 30, 2014	11,515	8,191,503	-7,816,401	386,617
Shares, Outstanding at Aug. 30, 2014	115,150,246			115,150,246
Stockholders' Equity at Aug. 31, 2014	11,515	8,191,503	-7,816,401	386,617
Shares, Outstanding at Aug. 31, 2014	115,150,246			115,150,246
Stock Issued During Period, Value, New Issues	237	99,763		100,000
Stock Issued During Period, Shares, New Issues	2,364,990			2,364,990
Adjustments to Additional Paid in Capital, Warrant Issued		0		0
Stock Repurchased and Retired During Period, Shares				0
Net Income (Loss)			220,546	220,546
Stockholders' Equity at Feb. 28, 2015	$11,752	$8,291,266	($7,595,855)	$707,163
Shares, Outstanding at Feb. 28, 2015	117,515,236			117,515,236

Statement_of_Cash_Flows

Statement of Cash Flows (USD $)	6 Months Ended		12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Aug. 31, 2014	Aug. 31, 2013
Statement of Cash Flows
Net Income (Loss)	$220,546	($107,061)	($2,218,630)	($2,244,830)
Amortization	29,243	11,276	73,962	529,157
Depreciation	36,981	36,981	30,169	33,485
Fair Value Change of Derivative Liability	-691,667	-51,561	674,650	350,344
Issuance of Stock and Warrants for Services or Claims		18,094	25,000	73,323
Adjustment of Warrants Granted for Services			27,449
Other Noncash Income (Expense)		128,125	778,125
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	-404,898	35,854	-609,275	-1,258,521
Increase (Decrease) in Inventories				1,000
Increase (Decrease) in Prepaid Expense and Other Assets	1,480		-2,093
Increase (Decrease) in Operating Assets	1,480		-2,093	1,000
Increase (Decrease) in Accounts Payable and Accrued Liabilities	-15,695	-3,401	16,249	5,267
Increase (Decrease) in Operating Capital	-15,695	-3,401	16,249	5,267
Net Cash Provided by (Used in) Operating Activities	-419,113	32,453	-595,119	-1,252,254
Payments to Acquire Property, Plant, and Equipment	-3,574		-114,091	-3,700
Payments to Acquire Intangible Assets			-59,704	-479,388
Net Cash Provided by (Used in) Investing Activities	-3,574		-173,795	-483,088
Payments for (Proceeds from) Deposit on Loan			204,200	351,132
Proceeds from (Repayments of) Notes Payable	-100,000	-120,000		-7,487
Proceeds from (Repayments of) Other Long-term Debt				-10,000
Proceeds from Issuance of Common Stock	100,000	146,328	754,899	1,373,920
Proceeds from Other Equity			250,000
Payments for Repurchase of Common Stock		-27,000
Net Cash Provided by (Used in) Financing Activities		-672	1,209,099	1,707,565
Cash and Cash Equivalents, Period Increase (Decrease)	-422,687	31,781	440,185	-27,777
Cash and Cash Equivalents, at Carrying Value	459,363	19,178	19,178	46,955
Cash and Cash Equivalents, at Carrying Value	$36,676		$459,363	$19,178

Note_1_Organization_and_Summar

Note 1 - Organization and Summary of Significant Accounting Policies	6 Months Ended
	Feb. 28, 2015
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 three months ended February 28, 2015, 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, 2014, 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 threemonth period ended February 28, 2015, are not necessarily indicative of results for the entire year ending August 31, 2015.
	Following is a summary of our organization and significant accounting policies:
	Organization and nature of business – Sauer Energy, Inc. (formerly: BCO Hydrocarbon Ltd.) (identified in these footnotes as “we” or the “Company”) was incorporated in the State of Nevada, United States of America on August 19, 2008. It was a natural resource exploration stage company and anticipated acquiring, exploring, and if warranted and feasible, developing natural resource assets. BCO had the right to acquire a 50% working interest in an oil and gas lease in Alberta, Canada.
	Sauer Energy, Inc. (the “Old Sauer”) was incorporated in California on August 7, 2008. The Company is a development stage company engaged in the design and manufacture of vertical axis wind turbine (VAWT) systems.
	On July 25, 2010, the Company, the president and sole director Malcolm Albery (“MA”) and Dieter Sauer, Jr. (“DS”) completed a closing (the “Closing”) under an Agreement and Plan of Reorganization, dated as of June 23, 2010 (the “Agreement”).  The Agreement provided: (a) for the purchase by DS of all of the 39,812,500 shares of the Company owned by MA for $55,200; (b) the contribution by DS of all of the shares of Old Sauer, a California corporation (“SEI”) to the Company; (c) the assignment of certain patent rights related to wind turbine technology held by DS to the Company; and (d) the election of DS to the Company’s board of directors.  In connection with the Closing, Mr. Sauer was elected President and CEO of the Company and two former shareholders of the Company agreed to (i) indemnify the Company against any claims resulting from breaches of representations and warranties by the Company in the Agreement; (ii) to acquire and cause to be returned for cancellation an aggregate of 67,437,500 shares of the Company’s common Stock, including all of the shares owned by former officer and director Daniel Brooks and; (3) assume all of the Company’s obligations in connection with certain oil and gas leases in Canada.
	The agreement was executed on July 25, 2010. Sauer Energy, Inc. became a wholly-owned subsidiary of the Company. On August 29, Malcolm Albery resigned as President and was replaced by Dieter Sauer.  In the following month, the Company changed its name from BCO Hydrocarbon Ltd. to Sauer Energy, Inc.
	The Company’s fiscal year-end is August 31.
	Basis of presentation – Our accounting and reporting policies conform to U.S. generally accepted accounting principles applicable to development stage enterprises.
	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 amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
	Cash and cash equivalents - For purposes of the statement of cash flows, we consider all cash in banks, money market funds, and certificates of deposit with a maturity of less than three months to be cash equivalents.
	Fixed assets - Property, plant and equipment is valued at cost less accumulated depreciation and impairment losses. If the costs of certain components of an item of property, plant and equipment are significant in relation to the total cost of the item, they are accounted for and depreciated separately.   Depreciation expense is recognized using the straight-line method for the vehicle and the double declining method for all remaining assets and is amortized over the estimated useful life of the related asset. The following useful lives are assumed:
	Vehicle & Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 years
	Furniture & Fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Years
	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 February 28, 2015, reflect:
	- Cash: Level One measurement based on bank reporting.
	- Loan receivable and loans from Officers and related parties: Level 2 based on promissory notes.
	- Derivative liability: Level two measurement based upon the relative fair market value of the Company’s free trading common stock.
	Federal income taxes -The Company utilizes FASB ACS 740, “Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is recorded when, in the opinion of management, it is “more likely-than-not” that a deferred tax asset will not be realized. The Company generated a deferred tax credit through net operating loss carry-forward.  A valuation allowance of 100% has been established.
	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.
	All taxes have been filed since inception and no taxes or penalties are assessed or owed.
	Research and development costs  - The Company expenses costs of research and development cost as incurred. Research and development costs for the sixmonths ended February 28, 2015, and February 28, 2014, was$133,695and $53,033 respectively.
	Advertising - Advertising and marketing expenses for the sixmonths ended February 28, 2015, and February 28, 2014,was $10,613and $2,776 respectively.
	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 has potentially dilutive securities outstanding consisting of warrants to purchase common stock, (see Note 9) and the conversion of convertible loans (see Note 6).  For the three months ended February 28, 2015, the warrants would not have been exercised since they are priced significantly higher than the market value of the Company’s trading common stock, while the convertible loans would likely be converted due to the discount that would be applied to the market price. As of February 28, 2015, 11,904,762possible shares under the convertible loan would be considered dilutive.  Alternatively, for the three months ended February 28, 2014,the exercise of warrants or conversions would be anti-dilutive since the Company was in a loss position, and they are not counted in the calculation of loss per share. The total common stock equivalents on a fully diluted basis if all outstanding agreements were exercised at February 28, 2015, and 2014 were 18,704,762and 7,175,879 shares, respectively.
	Recent Accounting Pronouncements — Management has considered all recent accounting pronouncements.  The following pronouncement was deemed applicable to our financial statements.
	In April of 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements and Property Plant, and Equipment Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this Update affect an entity that has a component that is disposed of or held for sale. We are evaluating the inclusion of this information should it apply in the future. This pronouncement will be adopted should it become relevant.
	In June of 2014, the FASB issued ASU 2014-10, “Development State Entities Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, the amendments in this Update affect entities that are development stage entities under U.S. GAAP. A development stage entity is defined in the Master Glossary of the Accounting Standards Codification as follows: An entity devoting substantially all of its efforts to establishing anew business and for which either of the following conditions exists:
	a.Planned principal operations have not commenced.
	b.Planned principal operations have commenced, but there has been no significant revenue therefrom.
	This update applies to the Company as no significant revenue has been received, although there will be no significant impact on the financial statements since the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This amendment will become effective as of December 15, 2014 for the Company, after which the presentation of the financial statements will be revised as noted above.
	In August of 2014, the FASB issued ASU 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. The amendments in this Update apply to all entities and will become effective as of the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will implement this Update if substantial doubt is ever raised about the Company’s ability to continue as a going concern within one year after the financial statements are issued or at the date the financial statements are available to be issue when applicable.
	Share based payments and awards
	The company has adopted the use of Statement of Financial Accounting Standards No. 123R, “Share-Based Payment” (SFAS No. 123R) (now contained in FASB Codification Topic 718, Compensation-Stock Compensation, orTopic 718), which supersedes APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and its related implementation guidance and eliminates the alternative to use Opinion 25’s intrinsic value method of accounting that was provided in Statement 123 as originally issued. This Statement requires an entity to measure the cost of employee services received in exchange for an award of an equity instruments, which includes grants of stock options and stock warrants, based on the fair value of the award, measured at the grant date, (with limited exceptions). Under this standard, the fair value of each award is estimated on the grant date, using an option-pricing model that meets certain requirements. We use the Black- Scholes option-pricing model to estimate the fair value of our equity awards, including stock options and warrants. The Black-Scholes model meets the requirements of Topic 718; however the fair values generated may not reflect their actual fair values, as it does not consider certain factors, such as vesting requirements, employee attrition and transferability limitations. The Black-Scholes model valuation is affected by our stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. We estimate the expected volatility and estimated life of our stock options at grant date based on historical volatility; however, due to the thinly traded nature of our stock, we have chosen to use an average of the annual volatility of like companies in our industry. For the “risk-free interest rate”, we use the Constant Maturity Treasury rate on 90 day government securities. The term is equal to the time until the option expires. The dividend yield is not applicable, as the company has not paid any dividends, nor do we anticipate paying them in the foreseeable future. The fair value of our restricted stock is based on the market value of our free trading common stock, on the grant date calculated using a 20 trading day average. At the time of grant, the share based-compensation expense is recognized in our financial statements based on awards that are ultimately expected to vest using historical employee attrition rates and the expense is reduced accordingly. For the three months ended February 28, 2015, we recognized $0 in share based expense due to the issuance of common stock warrants.

Note_2_Going_Concern

Note 2 - Going Concern	6 Months Ended
	Feb. 28, 2015
Notes
Note 2 - Going Concern	Note 2 – 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 $7,595,855as of February 28, 2015, and has no revenues.
	In view of the matters described above, 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. No assurance can be given that additional financing will be available when needed or that such financing will be available on terms acceptable to the Company.  This would have a material adverse effect on the Company and raises substantial doubt about the Company’s ability to continue as a going concern.  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_3_Property_and_Equipment

Note 3 - Property and Equipment	6 Months Ended
	Feb. 28, 2015
Notes
Note 3 - Property and Equipment	Note 3 – Property and Equipment
	Property and Equipment consisted of the following at February 28, 2015 and August 31, 2014	28-Feb-15	31-Aug-14
	Computer & equipment & truck	$                256,855	$        253,280
	Less: Accumulated depreciation/amortization	(135,819)	(106,576)
	Property and equipment, net	$                121,036	$        146,704

Note_4_Intangible_Property

Note 4 - Intangible Property	6 Months Ended
	Feb. 28, 2015
Notes
Note 4 - Intangible Property	Note 4 – 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 ye ars.  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.  The balances as of  February 28, 2015, and  August 31, 2014 are as follows:
		28-Feb-15	August 31,2014
	Patents	$                            109,092	$                            109,092
	Purchased Patents	1,467,500	1,467,500
	Goodwill	5,000	5,000
	Less Amortization	(207600.00)	(170619.00)
		$                         1,373,992	$                         1,410,973

Note_5_Convertible_Loans_and_I

Note 5 - Convertible Loans and Interest Payable	6 Months Ended
	Feb. 28, 2015
Notes
Note 5 - Convertible Loans and Interest Payable	Note 5 – Convertible Loans and Interest Payable
	The Company entered into note agreements and subsequent modifications and settlements on convertible notes.  These notes are convertible into the Company’s common stock and are due usually within one year.  The notes were issued with original issuance discounts of twelve percent which was immediately convertible into common stock and if the note was not repaid in ninety days the zero percent interest rate was replaced with an immediate prepaid interest charge at ten percent with was subject to conversion.  The Conversion terms were both fixed and variable if the trading prices did not meet the fix conversion price.  See the derivative discussion in Note 6 concerning these loans.
		28-Feb-15	August 31,2014
	Convertible Loans and Accrued Interest:
	St. George Investments	$                       500,000	$                       600,000
	St. George Investments, 10% interest prepaid	-
	JMJ Investments,  10% interest prepaid
		$                       500,000	$                       600,000
	Note 6 – Derivative Liabilities
	The Company entered into certain convertible loan agreements during 2012 and 2013.  These agreements contained terms that allowed for the conversion of the debt into common stock.  The basic agreement was originally with $0.25 conversion prices unless the stock sold at less than $0.25.  If the trades were at less than original term, the debt holders could elect to convert their debt at sixty percent of the lowest trading price in the 25 trading days prior to the conversion notice.  Because of these terms, the debt conversion clause requires that the Company account for these note balances as derivatives valued at the fair market value of the Company’s common stock on the day of any financial reporting period.   At February 28, 2015 and 2014, the fully convertible shares would be 11,904,762 and 4,596,667 common shares, respectively.
		28-Feb-15	February 28,2014
	Derivative Liabilities on Convertible Loans:
	St. George Investments	$                  333,333	$                  183,867
		$                  333,333	$                    183,86

Note_7_Commitments_and_Conting

Note 7 - Commitments and Contingencies	6 Months Ended
	Feb. 28, 2015
Notes
Note 7 - Commitments and Contingencies	Note 7 – Commitments and Contingencies
	Rental Agreement:
	On August 17, 2012, the Company leased a 10,410 square foot “industrial condominium” in Camarillo, California, for three years for monthly lease payments of $7,000 per month. There are no common area costs. All company operations are concentrated at the site.
	Lease Commitments – as of February 28, 2015,remaining for the fiscal year:
	Fiscal year endedAugust 31, 2015                             $  42,000

Note_8_Federal_Income_Taxes

Note 8- Federal Income Taxes	6 Months Ended
	Feb. 28, 2015
Notes
Note 8- Federal Income Taxes	Note 8– Federal Income Taxes
	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 2034. 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 approxim ately $7,595,855, which will expire in 2028 through 2034 if not utilized.  The Company uses 35% for a composite tax rate to estimate the value of net operating losses for deferred taxes.
	The Company incurred net income of $177,440 for the three months ended February 28, 2015. Although the company has no revenue, the net income was the result of the change in the derivative liability on convertible loans. The Company has net operating losses carried forward of approximately $7,595,855for tax purposes which will expire in 2028 through 2034, if not utilized.
	No provision was made for federal income tax, since the Company had an overall net operating loss and has accumulated net operating loss carryforwards.
	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. The Company may be assessed penalties and interest related to the underpayment of income taxes.  Such assessments would be treated as a provision of income tax expense on the financial statements.  For the year ended August 31, 2014 and 2013, no income tax expense has been realized as a result of operations and no income tax penalties and 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, and 2013, 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 yearend or at the quarterly reporting dates.  Any valuations relating to these income tax provisions will comply with U.S. generally accepted accounting principles.

Note_9_Capital_Stock

Note 9 - Capital Stock	6 Months Ended
	Feb. 28, 2015
Notes
Note 9 - Capital Stock	Note 9 – Capital Stock
	The Company engaged in the following stock transactions for the period beginning after August 31, 2013:
	On August 16, 2013, the Company issued 151,515 shares of common stock for $19,956 at $0.132 per share pursuant to a convertible note.
	On September 16, 2013, the Company issued 110,375 shares of common stock for $10,000 at $0.0906 per share pursuant to a convertible note.
	On October 1, 2013, the Company issued 200,000 shares of common stock for $13,600 at $0.06800 per share pursuant to a convertible note.
	On October 9, 2013, the Company issued 500,000 shares of common stock for $28,000 at $0.0560 per share pursuant to a convertible note.
	Some of the following disclosures are net of wire fees and expenses.
	On October 16, 2013, the Company issued 555,720 shares of common stock for $74,915 at $0.16870 per share pursuant to an Equity Purchase Agreement to repay loan, interest and fees.
	On November 6, 2013, the Company issued 250,000 shares of common stock for $26,355 at $0.1056 per share pursuant to an Equity Purchase Agreement.
	On November 11, 2013, the Company issued 300,000 shares of common stock for $30,819 at $0.10288 per share pursuant to an Equity Purchase Agreement.
	On November 14, 2013, the Company issued 300,000 shares of common stock for $20,160 at $0.0672 per share pursuant to a convertible note.
	On November 18, 2013, the Company issued 300,000 shares of common stock for $32,091 at $0.1071 per share pursuant to an Equity Purchase Agreement.
	On December 2, 2013, the Company issued 290,000 shares of common stock for $19,314 at $0.06660 per share pursuant to a convertible note.
	On December 2, 2013, the Company issued 300,000 shares of common stock for $29,619 at $0.09888 per share pursuant to an Equity Purchase Agreement.
	On December 9, 2013, the Company issued 300,000 shares of common stock for $28,707 at $0.09584 per share pursuant to an Equity Purchase Agreement.
	On January 6, 2014, the Company issued 300,000 shares of common stock for $18,180 at $0.06060 per share pursuant to a convertible note.
	On January 9, 2014, the Company issued 332,742 shares of common stock for $29,955 at $0.0902 per share pursuant to an Equity Purchase Agreement.
	On January 21, 2014, the Company issued 349,097 shares of common stock for $29,955 at $0.0857 per share pursuant to an Equity Purchase Agreement.
	On January 29, 2014, the Company issued 310,000 shares of common stock for $15,066 at $0.0486 per share pursuant to a convertible note.
	On February 14, 2014, the Company issued 500,741 shares of common stock for $24,336 at $0.0486 per share pursuant to a convertible note.
	On March 3, 2014, the Company issued 330,235 shares of common stock for $26,980 at $0.08176 per share pursuant to an Equity Purchase Agreement.
	On March 28, 2014, the Company issued 577,741 shares of common stock for $49,980 at $0.0900 per share pursuant to an Equity Purchase Agreement.
	On April 1, 2014, the Company issued 371,645 shares of common stock for $34,980 at $0.0942 per share pursuant to an Equity Purchase Agreement.
	On April 9, 2014, the Company issued 400,000 shares of common stock for $37,996 at $0.0950 per share pursuant to an Equity Purchase Agreement.
	On April 15, 2014, the Company issued 352,936 shares of common stock for $34,954 at $0.0992 per share pursuant to an Equity Purchase Agreement.
	On April 24, 2014, the Company issued 320,000 shares of common stock for $32,277 at $0.1010 per share pursuant to an Equity Purchase Agreement.
	On May 7, 2014, the Company issued 310,000 shares of common stock for $27,280 at $0.0880 per share pursuant to an Equity Purchase Agreement.
	On May 23, 2014, the Company issued 310,000 shares of common stock for $25,567 at $0.0826 per share pursuant to an Equity Purchase Agreement.
	On June 9, 2014, the Company issued 300,000 shares of common stock for $20,229 at $0.06758 per share pursuant to an Equity Purchase Agreement.
	On June 23, 2014, the Company issued 323,950 shares of common stock for $19,956 at $0.06174 per share pursuant to an Equity Purchase Agreement.
	On May 30, 2014, the Company issued 500,000 shares of common stock for $0.05 per share for consulting services of $25,000.
	On July 7, 2014, the Company entered into a private placement agreement that involved issuing 5,000,000 units of securities at $0.05 per unit for a total amount of cash of $250,000. Each unit consisted of one (1) share of common stock, par value $0.0001 per share and one (1) common stock purchase warrants for a total of 5,000,000 warrants with an exercise price of $0.30 each expiring January 31, 2016.
	On January 7, 2015, the Company issued 698,324 shares of common stock for $30,000 at $0.04296 per share pursuant to a convertible note.
	On January 29, 2015, the Company issued 476,190 shares of common stock for $20,000 at $0.042 per share pursuant to a convertible note.
	On February 11, 2015, the Company issued 714,286 shares of common stock for $30,000 at $0.042 per share pursuant to a convertible note.
	On February 24, 2015, the Company issued 476,190 shares of common stock for $20,000 at $0.042 per share pursuant to a convertible note.
	For the year ended August 31, 2014, the Company recognized two equity transactions in warrants which hada totalBlack-Scholes value of $27,449.
	Note 10 – Warrants
	A private placement of 400,000 units of securities consisted of one (1) share of common stock, par value $0.0001 per share and two (2) common stock purchase warrants with an exercise price of $0.40 and expiring July 31, 2015.
	During the fiscal year ended August 31, 2014, the Company entered into four private placement agreements for total cash proceeds of $250,000.  The private placements of 5,000,000 units consist of one (1) share of common stock, par value $0.0001 per share and one (1) common stock purchase warrant with an exercise price of $0.30 and expiring January 31, 2016.  The Company also issued 1,000,000 warrants to an investor in consideration of a loan for $50,000.  These warrants had an exercise price of $0.18 and expired on March 20, 2015.
	During the three months ended February 28, 2015, the Company did not issue any additional warrants or other convertible securities.
	The following table is a summary of information about the outstanding stock warrants as of February 28, 2015:
	Shares Underlying \Warrants Outstanding	Weighted Average Remaining Contractual Life		Weighted Average	Exercise Price
					$0.40
	$0.40	800,000 Shares \ 800,000 Warrants		5.0months	$0.30
	$0.30	5,000,000 Shares \5,000,000 Warrants		11.1.months	$0.18
	$0.18	1,000,000 Warrants		7.0 months
	The following table is a summary of activity of outstanding stock warrants for the three months ended February 28, 2015:Activity	Number of Warrants	Weighted Average Exercise Price
	Balance, August 31, 2014	6,800,000	$0.29
	Warrants expired	-	-
	Warrants cancelled	-	-
	Warrants Granted	-	-
	Warrants exercised	-	-
	Balance, February 28, 2015	6,800,000	$0.29

Note_11_Contingencies_Litigati

Note 11 - Contingencies, Litigation	6 Months Ended
	Feb. 28, 2015
Notes
Note 11 - Contingencies, Litigation	NOTE 11 - Contingencies, Litigation
	There were no loss contingencies or legal proceedings against the Company with respect to matters arising in the ordinary course of business.
	St. George Investment Settlement:
	On October 23, 2013, the Company filed a complaint against St George Investments, LLC (“St. George") in Superior Court, Ventura County California seeking declaratory relief as to contracts relating to the Company’s May, 2012 purchase of the assets of Helix Wind from St. George for treasury stock then valued in excess of $1.8 Million and a subsequent February 2013 promissory note for $275,000 executed under the terms of an amendment to the May, 2012 asset purchase agreement.  The Company alleged that the Helix Wind asset purchase price had been substantially paid and, in fact, may have been overpaid in light of St. George’s failure to deliver all of the intellectual property of Helix Wind.
	On February 3, 2014, the parties participated in a mediation session at the Federal Court and executed an agreement reflecting a settlement in principal (the “Settlement”) which becomes binding only if the parties are unable to come to terms on more formal settlement agreements.  The parties have since executed more formal settlement agreements which are included as an exhibit hereto.  The basic terms of the Settlement required the issuance of an additional 5,000,000 shares of our common stock to St George under the Helix APA; required St. George to purchase additional shares of our common stock for $300,000 ($0.15 per share) which is a price above the market price at the time of the Settlement; fixed the amount due on the note issued to St George in connection with the Helix APA at $600,000 and granted the Company certain prepayment rights.  The Settlement provides for limitations on the amounts of our common stock that St. George may sell into the market.
	As of February 28, 2015, the Company still owed St. George $500,000. See Note 14.

Note_12_Correction_of_An_Error

Note 12 - Correction of An Error	6 Months Ended
	Feb. 28, 2015
Notes
Note 12 - Correction of An Error	NOTE 12 – Correction of an Error
	The Company had previously entered into debt agreements, which included original issue discounts, in delayed prepaid interest, which were not recognized as part of derivative financial instrument.  The Company also had previously acquired intangible property and had not assigned lives nor began amortization as appropriate.
	The difference in the income for the three months February 28, 2014, is an increase of $41,760, and for the six months a difference of $45,470 decrease of the net loss.  These changes represent the net corrections to derivative valuation expense and interest expense, and amortization of patent costs for these time periods.  For the six months ended, the increase of $45,470, decreased accumulated deficit and decreased current year loss by the same amount and had no effect on periods after August 31, 2014.  It had no effect upon the earnings per share for the period then ended.

Note_13_Subsequent_Events

Note 13 - Subsequent Events	6 Months Ended
	Feb. 28, 2015
Notes
Note 13 - Subsequent Events	NOTE 13 – Subsequent Events
	Management has reviewed and evaluated subsequent events and transactions occurring after the balance sheet date, February 28, 2015, through the filing of this QuarterlyReport on Form 10-Q on April 14, 2015 and determined that only the following additional subsequent event has occurred:
	Conversion of Settlement Debt— On March 5, 2015, the Company authorized 636,132 shares of common stock to be issued in exchange for cancellation of $25,000 of the convertible loan.  On March 19, 2015, the Company authorized 694,444 shares of common stock to be issued in exchange for cancellation of $25,000 of the convertible loan.
	As of February 27, 2015, the Registrant entered into two agreements with Beaufort Capital Partners, LLC, a New York limited liability corporation (“BCPLLC”), an Equity Purchase Agreement (the “EPA”) and a Registration Rights Agreement (the “RRA”).  The two agreements we filed as exhibits to the Registrant’s Current Report on Form 8-K dated March 17, 2015 and the Registrant’s Registration Statement on Form S-1 Number 333-202819 and the following summary is qualified in its entirety by reference to such exhibits.

Note_1_Organization_and_Summar1

Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates, Policy (Policies)	6 Months Ended
	Feb. 28, 2015
Policies
Use of Estimates, Policy	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 amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Note_1_Organization_and_Summar2

Note 1 - Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	6 Months Ended
	Feb. 28, 2015
Policies
Cash and Cash Equivalents	Cash and cash equivalents - For purposes of the statement of cash flows, we consider all cash in banks, money market funds, and certificates of deposit with a maturity of less than three months to be cash equivalents.

Note_1_Organization_and_Summar3

Note 1 - Organization and Summary of Significant Accounting Policies: Property, Plant, and Equipment and Intangible Assets (Policies)	6 Months Ended
	Feb. 28, 2015
Policies
Property, Plant, and Equipment and Intangible Assets	Fixed assets - Property, plant and equipment is valued at cost less accumulated depreciation and impairment losses. If the costs of certain components of an item of property, plant and equipment are significant in relation to the total cost of the item, they are accounted for and depreciated separately.   Depreciation expense is recognized using the straight-line method for the vehicle and the double declining method for all remaining assets and is amortized over the estimated useful life of the related asset. The following useful lives are assumed:
	Vehicle & Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 years
	Furniture & Fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Years

Note_1_Organization_and_Summar4

Note 1 - Organization and Summary of Significant Accounting Policies: Fair Value Measurement, Policy (Policies)	6 Months Ended
	Feb. 28, 2015
Policies
Fair Value Measurement, Policy	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 February 28, 2015, reflect:
	- Cash: Level One measurement based on bank reporting.
	- Loan receivable and loans from Officers and related parties: Level 2 based on promissory notes.
	- Derivative liability: Level two measurement based upon the relative fair market value of the Company’s free trading common stock.

Note_1_Organization_and_Summar5

Note 1 - Organization and Summary of Significant Accounting Policies: Income Tax, Policy (Policies)	6 Months Ended
	Feb. 28, 2015
Policies
Income Tax, Policy	Federal income taxes -The Company utilizes FASB ACS 740, “Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is recorded when, in the opinion of management, it is “more likely-than-not” that a deferred tax asset will not be realized. The Company generated a deferred tax credit through net operating loss carry-forward.  A valuation allowance of 100% has been established.
	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.
	All taxes have been filed since inception and no taxes or penalties are assessed or owed.

Note_1_Organization_and_Summar6

Note 1 - Organization and Summary of Significant Accounting Policies: Research and Development Costs (Policies)	6 Months Ended
	Feb. 28, 2015
Policies
Research and Development Costs	Research and development costs  - The Company expenses costs of research and development cost as incurred. Research and development costs for the sixmonths ended February 28, 2015, and February 28, 2014, was$133,695and $53,033 respectively.

Note_1_Organization_and_Summar7

Note 1 - Organization and Summary of Significant Accounting Policies: Advertising (Policies)	6 Months Ended
	Feb. 28, 2015
Policies
Advertising	Advertising - Advertising and marketing expenses for the sixmonths ended February 28, 2015, and February 28, 2014,was $10,613and $2,776 respectively.

Note_1_Organization_and_Summar8

Note 1 - Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies)	6 Months Ended
	Feb. 28, 2015
Policies
Earnings Per Share, Policy	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 has potentially dilutive securities outstanding consisting of warrants to purchase common stock, (see Note 9) and the conversion of convertible loans (see Note 6).  For the three months ended February 28, 2015, the warrants would not have been exercised since they are priced significantly higher than the market value of the Company’s trading common stock, while the convertible loans would likely be converted due to the discount that would be applied to the market price. As of February 28, 2015, 11,904,762possible shares under the convertible loan would be considered dilutive.  Alternatively, for the three months ended February 28, 2014,the exercise of warrants or conversions would be anti-dilutive since the Company was in a loss position, and they are not counted in the calculation of loss per share. The total common stock equivalents on a fully diluted basis if all outstanding agreements were exercised at February 28, 2015, and 2014 were 18,704,762and 7,175,879 shares, respectively.

Note_1_Organization_and_Summar9

Note 1 - Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements, Policy (Policies)	6 Months Ended
	Feb. 28, 2015
Policies
New Accounting Pronouncements, Policy
	Recent Accounting Pronouncements — Management has considered all recent accounting pronouncements.  The following pronouncement was deemed applicable to our financial statements.
	In April of 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements and Property Plant, and Equipment Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this Update affect an entity that has a component that is disposed of or held for sale. We are evaluating the inclusion of this information should it apply in the future. This pronouncement will be adopted should it become relevant.
	In June of 2014, the FASB issued ASU 2014-10, “Development State Entities Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, the amendments in this Update affect entities that are development stage entities under U.S. GAAP. A development stage entity is defined in the Master Glossary of the Accounting Standards Codification as follows: An entity devoting substantially all of its efforts to establishing anew business and for which either of the following conditions exists:
	a.Planned principal operations have not commenced.
	b.Planned principal operations have commenced, but there has been no significant revenue therefrom.
	This update applies to the Company as no significant revenue has been received, although there will be no significant impact on the financial statements since the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This amendment will become effective as of December 15, 2014 for the Company, after which the presentation of the financial statements will be revised as noted above.
	In August of 2014, the FASB issued ASU 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. The amendments in this Update apply to all entities and will become effective as of the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will implement this Update if substantial doubt is ever raised about the Company’s ability to continue as a going concern within one year after the financial statements are issued or at the date the financial statements are available to be issue when applicable.

Recovered_Sheet1

Note 1 - Organization and Summary of Significant Accounting Policies: Share Based Payments and Awards (Policies)	6 Months Ended
	Feb. 28, 2015
Policies
Share Based Payments and Awards	Share based payments and awards
	The company has adopted the use of Statement of Financial Accounting Standards No. 123R, “Share-Based Payment” (SFAS No. 123R) (now contained in FASB Codification Topic 718, Compensation-Stock Compensation, orTopic 718), which supersedes APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and its related implementation guidance and eliminates the alternative to use Opinion 25’s intrinsic value method of accounting that was provided in Statement 123 as originally issued. This Statement requires an entity to measure the cost of employee services received in exchange for an award of an equity instruments, which includes grants of stock options and stock warrants, based on the fair value of the award, measured at the grant date, (with limited exceptions). Under this standard, the fair value of each award is estimated on the grant date, using an option-pricing model that meets certain requirements. We use the Black- Scholes option-pricing model to estimate the fair value of our equity awards, including stock options and warrants. The Black-Scholes model meets the requirements of Topic 718; however the fair values generated may not reflect their actual fair values, as it does not consider certain factors, such as vesting requirements, employee attrition and transferability limitations. The Black-Scholes model valuation is affected by our stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. We estimate the expected volatility and estimated life of our stock options at grant date based on historical volatility; however, due to the thinly traded nature of our stock, we have chosen to use an average of the annual volatility of like companies in our industry. For the “risk-free interest rate”, we use the Constant Maturity Treasury rate on 90 day government securities. The term is equal to the time until the option expires. The dividend yield is not applicable, as the company has not paid any dividends, nor do we anticipate paying them in the foreseeable future. The fair value of our restricted stock is based on the market value of our free trading common stock, on the grant date calculated using a 20 trading day average. At the time of grant, the share based-compensation expense is recognized in our financial statements based on awards that are ultimately expected to vest using historical employee attrition rates and the expense is reduced accordingly. For the three months ended February 28, 2015, we recognized $0 in share based expense due to the issuance of common stock warrants.

Note_3_Property_and_Equipment_

Note 3 - Property and Equipment: Property, Plant and Equipment (Tables)	6 Months Ended
	Feb. 28, 2015
Tables/Schedules
Property, Plant and Equipment
	Property and Equipment consisted of the following at February 28, 2015 and August 31, 2014	28-Feb-15	31-Aug-14
	Computer & equipment & truck	$                256,855	$        253,280
	Less: Accumulated depreciation/amortization	(135,819)	(106,576)
	Property and equipment, net	$                121,036	$        146,704

Note_4_Intangible_Property_Sch

Note 4 - Intangible Property: Schedule of Intangible Assets and Goodwill (Tables)	6 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Intangible Assets and Goodwill
		28-Feb-15	August 31,2014
	Patents	$                            109,092	$                            109,092
	Purchased Patents	1,467,500	1,467,500
	Goodwill	5,000	5,000
	Less Amortization	(207600.00)	(170619.00)
		$                         1,373,992	$                         1,410,973

Note_5_Convertible_Loans_and_I1

Note 5 - Convertible Loans and Interest Payable: Convertible Debt (Tables)	6 Months Ended
	Feb. 28, 2015
Tables/Schedules
Convertible Debt
		28-Feb-15	August 31,2014
	Convertible Loans and Accrued Interest:
	St. George Investments	$                       500,000	$                       600,000
	St. George Investments, 10% interest prepaid	-
	JMJ Investments,  10% interest prepaid
		$                       500,000	$                       600,000

Note_5_Convertible_Loans_and_I2

Note 5 - Convertible Loans and Interest Payable: Derivative Liability on Convertible Loans (Tables)	6 Months Ended
	Feb. 28, 2015
Tables/Schedules
Derivative Liability on Convertible Loans
		28-Feb-15	February 28,2014
	Derivative Liabilities on Convertible Loans:
	St. George Investments	$                  333,333	$                  183,867
		$                  333,333	$                    183,86

Note_9_Capital_Stock_Schedule_

Note 9 - Capital Stock: Schedule of Stockholders Equity (Tables)	6 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Stockholders Equity
	The following table is a summary of activity of outstanding stock warrants for the three months ended February 28, 2015:Activity	Number of Warrants	Weighted Average Exercise Price
	Balance, August 31, 2014	6,800,000	$0.29
	Warrants expired	-	-
	Warrants cancelled	-	-
	Warrants Granted	-	-
	Warrants exercised	-	-
	Balance, February 28, 2015	6,800,000	$0.29

Note_3_Property_and_Equipment_1

Note 3 - Property and Equipment: Property, Plant and Equipment (Details) (USD $)	Feb. 28, 2015	Aug. 31, 2014
Details
Machinery and Equipment, Gross	$256,855	$253,280
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	-135,819	-106,576
Property, Plant, and Equipment, Owned, Net	$121,036	$146,704

Note_4_Intangible_Property_Sch1

Note 4 - Intangible Property: Schedule of Intangible Assets and Goodwill (Details) (USD $)	Feb. 28, 2015	Aug. 31, 2014
Details
Patents	$109,092	$109,092
Finite-Lived Patents, Gross	1,467,500	1,467,500
Goodwill, Gross	5,000	5,000
Finite-Lived Intangible Assets, Accumulated Amortization	($207,600)	($170,619)

Note_5_Convertible_Loans_and_I3

Note 5 - Convertible Loans and Interest Payable: Convertible Debt (Details) (USD $)	Feb. 28, 2015	Aug. 31, 2014
Details
Convertible Notes Payable, Noncurrent	$500,000	$600,000

Note_5_Convertible_Loans_and_I4

Note 5 - Convertible Loans and Interest Payable: Derivative Liability on Convertible Loans (Details) (USD $)	Feb. 28, 2015	Aug. 31, 2014	Feb. 28, 2014	Aug. 31, 2013
Details
Derivative Instruments and Hedges, Liabilities	$333,333	$1,025,000	$183,867	$350,344

Note_8_Federal_Income_Taxes_De

Note 8- Federal Income Taxes (Details) (USD $)	Feb. 28, 2015
Details
Deferred Tax Assets, Gross	$177,440
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	$7,595,855