Sauer Energy 10-Q 14 Jul 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - May. 31, 2015 - shares	Total
Document and Entity Information:
Entity Registrant Name	SAUER ENERGY, INC.
Document Type	10-Q
Document Period End Date	May 31, 2015
Amendment Flag	false
Entity Central Index Key	1,446,152
Current Fiscal Year End Date	--08-31
Entity Common Stock, Shares Outstanding	139,082,945
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	2,015
Document Fiscal Period Focus	Q3

Statement of Financial Position

Statement of Financial Position - USD ($)	May. 31, 2015	Aug. 31, 2014
Assets, Current
Cash and Cash Equivalents, at Carrying Value	$ 27,068	$ 460,863
Prepaid Expense, Current		593
Assets, Current	27,068	461,456
Assets, Noncurrent
Property, Plant and Equipment, Gross	117,487	146,704
Indefinite-Lived Intangible Assets (Excluding Goodwill)	1,355,502	1,410,973
Other Assets, Noncurrent	14,000	14,000
Assets, Noncurrent	1,486,989	1,571,677
Assets	1,514,057	2,033,133
Liabilities, Current
Accrued Liabilities, Current	4,932	21,516
Loans Payable, Current	375,000	600,000
Derivative Instruments and Hedges, Liabilities	406,250	1,025,000
Liabilities, Current	786,182	1,646,516
Liabilities, Noncurrent
Liabilities	786,182	1,646,516
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
Common Stock, Value, Issued	13,036	11,515
Additional Paid in Capital, Common Stock	8,888,172	8,191,503
CommonStockOtherValueOutstanding	25,000
Retained Earnings (Accumulated Deficit)	(8,198,333)	(7,816,401)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	727,875	386,617
Liabilities and Equity	$ 1,514,057	$ 2,033,133

Statement of Financial Positio3

Statement of Financial Position - Parenthetical - $ / shares	May. 31, 2015	Aug. 31, 2014
Balance Sheets
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	650,000,000	650,000,000
Common Stock, Shares Issued	130,359,505	115,150,246
Common Stock, Shares Outstanding	130,359,505	115,150,246

Statement of Income

Statement of Income - USD ($)	3 Months Ended		9 Months Ended
	May. 31, 2015	May. 31, 2014	May. 31, 2015	May. 31, 2014
Operating Expenses
Professional Fees	$ 46,060	$ 42,224	$ 94,832	$ 133,922
Consulting	155,920	49,375	229,734	101,578
Research and Development Expense	161,579	31,435	295,274	84,469
General and Administrative Expense	106,198	93,209	321,038	250,745
Operating Expenses	469,757	216,243	940,878	570,714
Operating Income (Loss)	(469,757)	(216,243)	(940,878)	(570,714)
Interest and Debt Expense
Interest Expense	59,805		59,805	1,667
Settlement Expense		974,200		1,101,685
Commitment Fees				(325,000)
Derivative Loss On Derivative	72,917	101,217	(618,750)	49,655
Interest and Debt Expense	132,722	1,075,417	(558,945)	828,007
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(602,479)	(1,291,660)	(381,933)	(1,398,721)
IncomeTaxExpenseBenefitContinuingOperationsAbstract
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	(602,479)	(1,291,660)	(381,933)	(1,398,721)
Net Income (Loss) Attributable to Parent	(602,479)	(1,291,660)	(381,933)	(1,398,721)
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParentAbstract
ComprehensiveIncomeNetOfTax	$ (602,479)	$ (1,291,660)	$ (381,933)	$ (1,398,721)
Earnings Per Share
Earnings Per Share, Basic	$ 0	$ (0.01)	$ 0	$ (0.01)
Weighted Average Number of Shares Outstanding, Basic	122,118,859	103,765,349	117,780,618	98,679,393
Earnings Per Share, Diluted	$ 0	$ (0.01)	$ 0	$ (0.01)
Weighted Average Number of Shares Outstanding, Diluted	122,118,859	103,765,349	117,780,618	98,679,393

Statement of Cash Flows

Statement of Cash Flows - USD ($)	9 Months Ended
	May. 31, 2015	May. 31, 2014
Net Cash Provided by (Used in) Operating Activities
Net Income (Loss)	$ (381,933)	$ (1,398,721)
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Depreciation	45,227	19,128
Amortization	55,472	55,472
Fair Value Change of Derivative Liability	(618,750)	49,655
Allocated Share Based Compensation Expense		18,094
Issuance of Stock and Warrants for Services or Claims	344,405	25,000
Other Noncash Income (Expense)		1,102,325
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	(555,579)	(129,047)
Increase (Decrease) in Operating Assets
Increase (Decrease) in Prepaid Expense and Other Assets	593	(651)
Increase (Decrease) in Other Operating Assets
Increase (Decrease) in Operating Assets	593	(651)
Increase (Decrease) in Operating Liabilities
Increase (Decrease) in Accounts Payable and Accrued Liabilities	(16,584)	1,242
Increase (Decrease) in Operating Capital	(16,584)	1,242
Net Cash Provided by (Used in) Operating Activities	(571,570)	(128,456)
Net Cash Provided by (Used in) Investing Activities
Payments to Acquire Property, Plant, and Equipment	(16,010)	(22,547)
Net Cash Provided by (Used in) Investing Activities	(16,010)	(22,547)
Net Cash Provided by (Used in) Financing Activities
Proceeds from (Repayments of) Notes Payable	(225,000)	(120,000)
Proceeds from Issuance of Common Stock	378,785	714,615
Net Cash Provided by (Used in) Financing Activities	153,785	594,615
Cash and Cash Equivalents, Period Increase (Decrease)	(433,795)	443,612
Cash and Cash Equivalents, at Carrying Value	460,863	19,178
Cash and Cash Equivalents, at Carrying Value	$ 27,068	$ 462,790

Note 1 - Organization and Summa

Note 1 - Organization and Summary of Significant Accounting Policies	9 Months Ended
	May. 31, 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 May 31, 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 nine month period ended May 31, 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. (the “Old Sauer”) was incorporated in California on August 7, 2008. The Company is a developing 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 – Use of estimates - Cash and cash equivalents - Fixed assets - Vehicle & Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 years Furniture & Fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Years Fair Value of Financial Instruments - - 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 May, 31, 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 “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. All taxes have been filed since inception and no taxes or penalties are assessed or owed. Research and development costs - Advertising. Basic and Diluted Earnings (Loss) Per Share - Recent Accounting Pronouncements 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. FASB ASU 2015-03: Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability, to be presented consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. This will be effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company does not anticipate significant impact upon its financial statements at this time and will continue to evaluation the potential for such impact. 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, For the three months ended May 31, 2015, we recognized no expenses for share based expense due to the issuance of common stock warrants.

Note 2 - Going Concern

Note 2 - Going Concern	9 Months Ended
	May. 31, 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 $8,193,333 as of May, 31, 2015. 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	9 Months Ended
	May. 31, 2015
Notes
Note 3 - Property and Equipment	Note 3 – Property and Equipment Property and Equipment consisted of the following at May, 31, 2015, and August 31, 2014 May, 31, 2015 August 31, 2014 Computer, equipment & truck $ 269,290 $ 253,280 Less: Accumulated depreciation (151,803) (106,576) Property and equipment, net $ 117,487 $ 146,704

Note 4 - Intangible Property

Note 4 - Intangible Property	9 Months Ended
	May. 31, 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 years. The restrictive covenants were fully amortized as of August 31, 2014. 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 May 31, 2015, and August 31, 2014 are as follows: May 31, 2015 August 31, 2014 Patents $ 109,092 $ 109,092 Purchased Patents 1,467,500 1,467,500 Goodwill 5,000 5,000 Less Amortization (226,090) (170,619) $ 1,410,973

Note 5 - Convertible Loans and

Note 5 - Convertible Loans and Interest Payable	9 Months Ended
	May. 31, 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. May 31, 2015 August 31,2014 Convertible Loans and Accrued Interest: St George Investments $ 375,000 $ 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 May 31, 2015 and 2014, the fully convertible shares would be 15,625,000 and 12,500,000 common shares, respectively. May 31, 2015 August 31, 2014 Derivative Liabilities on Convertible Loans: St. George Investments $ 406,250 $ 1,025,000

Note 7 - Commitments and Contin

Note 7 - Commitments and Contingencies	9 Months Ended
	May. 31, 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. The current least terminates on August 31, 2015. Lease Commitments – as of May 31, 2015, remaining for the fiscal year: Fiscal year ended August 31, 2015 $ 21,000 Consulting Agreement: On May 22, 2015, the Company entered into an agreement with Synergy Business Consultants, LLC, for investor relations consulting, with payments of $2,500 per month, for a term of six months, , with an immediate issuance of 500,000 shares of common stock, effective May 26, 2015.

Note 8- Federal Income Taxes

Note 8- Federal Income Taxes	9 Months Ended
	May. 31, 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 approximately $8,198,333, 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. 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 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 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 9 - Capital Stock

Note 9 - Capital Stock	9 Months Ended
	May. 31, 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 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. On March 5, 2015, the Company authorized 636,132 shares of common stock at $0.0393 per share 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 at $0.036 per share to be issued in exchange for cancellation of $25,000 of the convertible loan. On April 13, 2015, the Company authorized 816,993 shares of common stock at $0.0306 per share to be issued in exchange for cancellation of $25,000 of the convertible loan. On April 28, 2015, the Company authorized 989,861 shares of common stock to be issued for $35,635 at $0.03600 per share pursuant to an Equity Purchase Agreement. On May 1, 2015, the Company authorized 4.4 million shares of common stock at $0.059 per share to be issued for services rendered. On May 4, 2015, the Company authorized 868,056 shares of common stock at $0.228 to be issued in exchange for cancellation of $25,000 of the convertible loan. On May 5, 2015, the Company authorized 1,704,282 shares of common stock to be issued for $58,900 at $0.03456 per share pursuant to an Equity Purchase Agreement. On May 18, 2015, the Company authorized 1,828,704 shares of common stock to be issued for $59,250 at $0.03240 per share pursuant to an Equity Purchase Agreement. On May 20, 2015, the Company authorized 905,797 shares of common stock at $0.0276 per share to be issued in exchange for cancellation of $25,000 of the convertible loan. On May 26, 2015, the Company entered into a consulting agreement wherein 500,000 shares were due and payable. On June 9, 2015, the Company authorized 500,000 shares of common stock at $0.05 per share to be issued pursuant to the consulting agreement of May 26, 2015. For the year ended August 31, 2014, the Company recognized two equity transactions in warrants which had a total Black-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 May 31 The following table is a summary of information about the outstanding stock warrants as of May 31 Shares Underlying \ Weighted Average Remaining Weighted Exercise Warrants Outstanding Contractual Life Average Price ______________________________________________________________________________ 800,000 Shares \ 800,000 Warrants. .13 years $0.32 $0.40 5,000,000 Shares \5,000,000 Warrants .56 years $0.25 $0.30 The following table is a summary of activity of outstanding stock warrants for the three months ended May 31, 2015: Activity Number of Warrants Weighted Average Exercise Price Balance, August 31, 2014 6,800,000 $0.29 Warrants expired (1,000,000) .18 Warrants cancelled - - Warrants Granted - - Warrants exercised - - Balance, May 31, 2015 5,800,000 $0.31

Note 11 - Contingencies, Litiga

Note 11 - Contingencies, Litigation	9 Months Ended
	May. 31, 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 May 31, 2015, the Company still owed St. George $375,000. See Note 5.

Note 12 - Equity Purchase Agree

Note 12 - Equity Purchase Agreement and Registration Rights Agreement	9 Months Ended
	May. 31, 2015
Notes
Note 12 - Equity Purchase Agreement and Registration Rights Agreement	NOTE 12 – Equity Purchase Agreement and Registration Rights Agreement 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 agreements required the Registrant to file a registration statement for the common stock underlying the EPA. Subject to various limitations set forth in the EPA, BCPLLC, after effectiveness of such registration statement, was required to purchase up to $3,000,000 worth of the Registrant’s common stock at a price equal to 72% of the market price as determined under the EPA (prior ten trading days). The EPA provides for volume limitations on the amount of shares that BVPLC must purchase at any time and provides that the Registrant will be paid for the common stock upon electronic delivery of the shares to BCPLLC. BCPLLC bore the attorney fees relating to the Registration Statement and is not charging the Registrant any additional fees. The Registration Statement was filed by the Registrant on March 17, 2015. It was deemed effective by the Sec on April 27, 2015.

Note 13 - Correction of An Erro

Note 13 - Correction of An Error	9 Months Ended
	May. 31, 2015
Notes
Note 13 - Correction of An Error	NOTE 13 – 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 loss for the three months May 31, 2014, is an increase of the loss of $69,642, and for the nine months a difference of $25,171 increase 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 nine months ended, the increase of $25,171, increased 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 14 - Subsequent Events

Note 14 - Subsequent Events	9 Months Ended
	May. 31, 2015
Notes
Note 14 - Subsequent Events	NOTE 14 – Subsequent Events Management has reviewed and evaluated subsequent events and transactions occurring after the balance sheet date, May 31, 2015, through the filing of this Quarterly Report on Form 10-Q on July 13, 2015 and determined that only the following additional subsequent event has occurred: Conversion of Settlement Debt — On June 10, 2015, the Company authorized 992,063 shares of common stock to be issued in exchange for cancellation of $25,000 of the St. George convertible loan. On June 30, 2015, the Company authorized 1,402,918 shares of common stock at $0.01782 to be issued in exchange for cancellation of $25,000 of the St. George convertible loan. Contract Term--- Equity Purchases--- On June 23, 2015, the Company authorized 2,009,646 shares of common stock to be issued for $45,000 at $0.02239 per share pursuant to an Equity Purchase Agreement. On July 6, 2015, the Company authorized 2,020,202 shares of common stock to be issued for $40,000 at $0.01980 per share pursuant to an Equity Purchase Agreement.

Compensation Related Costs, Gen

Compensation Related Costs, General	9 Months Ended
	May. 31, 2014USD ($)
Compensation Related Costs, General:
Allocated Share Based Compensation Expense	$ 18,094

Note 1 - Organization and Sum19

Note 1 - Organization and Summary of Significant Accounting Policies: Basis of Presentation (Policies)	9 Months Ended
	May. 31, 2015
Policies
Basis of Presentation	Basis of presentation –

Note 1 - Organization and Sum20

Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates, Policy (Policies)	9 Months Ended
	May. 31, 2015
Policies
Use of Estimates, Policy	Use of estimates -

Note 1 - Organization and Sum21

Note 1 - Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	9 Months Ended
	May. 31, 2015
Policies
Cash and Cash Equivalents	Cash and cash equivalents -

Note 1 - Organization and Sum22

Note 1 - Organization and Summary of Significant Accounting Policies: Property, Plant, and Equipment and Intangible Assets (Policies)	9 Months Ended
	May. 31, 2015
Policies
Property, Plant, and Equipment and Intangible Assets	Fixed assets - Vehicle & Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 years Furniture & Fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Years

Note 1 - Organization and Sum23

Note 1 - Organization and Summary of Significant Accounting Policies: Fair Value Measurement, Policy (Policies)	9 Months Ended
	May. 31, 2015
Policies
Fair Value Measurement, Policy	Fair Value of Financial Instruments - - 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 May, 31, 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 Sum24

Note 1 - Organization and Summary of Significant Accounting Policies: Income Tax, Policy (Policies)	9 Months Ended
	May. 31, 2015
Policies
Income Tax, Policy	Federal income taxes “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. All taxes have been filed since inception and no taxes or penalties are assessed or owed.

Note 1 - Organization and Sum25

Note 1 - Organization and Summary of Significant Accounting Policies: Research, Development, and Computer Software, Policy (Policies)	9 Months Ended
	May. 31, 2015
Policies
Research, Development, and Computer Software, Policy	Research and development costs -

Note 1 - Organization and Sum26

Note 1 - Organization and Summary of Significant Accounting Policies: Advertising (Policies)	9 Months Ended
	May. 31, 2015
Policies
Advertising	Advertising.

Note 1 - Organization and Sum27

Note 1 - Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies)	9 Months Ended
	May. 31, 2015
Policies
Earnings Per Share, Policy	Basic and Diluted Earnings (Loss) Per Share -

Note 1 - Organization and Sum28

Note 1 - Organization and Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	9 Months Ended
	May. 31, 2015
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements 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. FASB ASU 2015-03: Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability, to be presented consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. This will be effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company does not anticipate significant impact upon its financial statements at this time and will continue to evaluation the potential for such impact.

Note 1 - Organization and Sum29

Note 1 - Organization and Summary of Significant Accounting Policies: Share Based Payments and Awards (Policies)	9 Months Ended
	May. 31, 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, For the three months ended May 31, 2015, we recognized no expenses for share based expense due to the issuance of common stock warrants.

Note 3 - Property and Equipme30

Note 3 - Property and Equipment: Property, Plant and Equipment (Tables)	9 Months Ended
	May. 31, 2015
Tables/Schedules
Property, Plant and Equipment	Property and Equipment consisted of the following at May, 31, 2015, and August 31, 2014 May, 31, 2015 August 31, 2014 Computer, equipment & truck $ 269,290 $ 253,280 Less: Accumulated depreciation (151,803) (106,576) Property and equipment, net $ 117,487 $ 146,704

Note 4 - Intangible Property_ S

Note 4 - Intangible Property: Schedule of Intangible Assets and Goodwill (Tables)	9 Months Ended
	May. 31, 2015
Tables/Schedules
Schedule of Intangible Assets and Goodwill	May 31, 2015 August 31, 2014 Patents $ 109,092 $ 109,092 Purchased Patents 1,467,500 1,467,500 Goodwill 5,000 5,000 Less Amortization (226,090) (170,619) $ 1,410,973

Note 5 - Convertible Loans an32

Note 5 - Convertible Loans and Interest Payable: Convertible Debt (Tables)	9 Months Ended
	May. 31, 2015
Tables/Schedules
Convertible Debt	May 31, 2015 August 31,2014 Convertible Loans and Accrued Interest: St George Investments $ 375,000 $ 600,000

Note 5 - Convertible Loans an33

Note 5 - Convertible Loans and Interest Payable: Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Tables)	9 Months Ended
	May. 31, 2015
Tables/Schedules
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments	May 31, 2015 August 31, 2014 Derivative Liabilities on Convertible Loans: St. George Investments $ 406,250 $ 1,025,000

Note 9 - Capital Stock_ Schedul

Note 9 - Capital Stock: Schedule of Stockholders Equity (Tables)	9 Months Ended
	May. 31, 2015
Tables/Schedules
Schedule of Stockholders Equity	The following table is a summary of activity of outstanding stock warrants for the three months ended May 31, 2015: Activity Number of Warrants Weighted Average Exercise Price Balance, August 31, 2014 6,800,000 $0.29 Warrants expired (1,000,000) .18 Warrants cancelled - - Warrants Granted - - Warrants exercised - - Balance, May 31, 2015 5,800,000 $0.31

Note 3 - Property and Equipme35

Note 3 - Property and Equipment: Property, Plant and Equipment (Details) - USD ($)	May. 31, 2015	Aug. 31, 2014
Details
Machinery and Equipment, Gross	$ 269,290	$ 253,280
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(151,803)	(106,576)
Property, Plant, and Equipment, Owned, Net	$ 117,487	$ 146,704

Note 4 - Intangible Property_36

Note 4 - Intangible Property: Schedule of Intangible Assets and Goodwill (Details) - USD ($)	May. 31, 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	$ (226,090)	$ (170,619)

Note 5 - Convertible Loans an37

Note 5 - Convertible Loans and Interest Payable: Convertible Debt (Details) - USD ($)	May. 31, 2015	Aug. 31, 2014
Details
Convertible Notes Payable, Noncurrent	$ 375,000	$ 600,000

Note 5 - Convertible Loans an38

Note 5 - Convertible Loans and Interest Payable: Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($)	May. 31, 2015	Aug. 31, 2014
Details
Derivative Instruments and Hedges, Liabilities	$ 406,250	$ 1,025,000