First Level Entertainment 10-K 15 Dec 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Aug. 31, 2015	Dec. 15, 2015
Document And Entity Information
Entity Registrant Name	FIRST LEVEL ENTERTAINMENT GROUP, INC.
Entity Central Index Key	1,503,227
Document Type	10-K
Document Period End Date	Aug. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float	$ 0
Entity Common Stock, Shares Outstanding		40,000,000
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Aug. 31, 2015	Aug. 31, 2014
CURRENT ASSETS:
Cash and equivalents	$ 227	$ 319
Total Current Assets	227	319
CURRENT LIABILITIES:
Accounts payable	137,500	222,989
Accrued expenses	179,750	$ 202,263
Advance from related parties	$ 249,061
Notes payable		$ 70,000
Total Current Liabilities	$ 566,311	$ 495,252
STOCKHOLDERS' DEFICIT:
Preferred Stock, par value $.001; 10,000,000 shares authorized; 0 issued and outstanding at August 31, 2015 and August 31, 2014
Common stock, par value $.001; 500,000,000 shares authorized; 40,000,000 shares issued as of August 31, 2015 and 36,000,000 shares issued as of August 31, 2014	$ 40,000	$ 36,000
Additional paid in capital	2,460,000	1,744,000
Accumulated Deficit	(3,066,084)	(2,274,933)
Total Stockholders' Deficit	(566,084)	(494,933)
Total Liabilities and Stockholders' Deficit	$ 227	$ 319

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Aug. 31, 2015	Aug. 31, 2014
Statement of Financial Position [Abstract]
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	40,000,000	36,000,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Income Statement [Abstract]
Revenue
Operating Expenses:
Advertising and Marketing	$ 50,198	$ 72,813
Legal and Accounting	69,771	17,375
Consulting and Software Development	336,987	629,384
General and Administrative	75,365	65,520
Total Operating Expenses	532,321	785,092
Operating Loss	(532,321)	$ (785,092)
Other Income (Expense)
Impairment of assets	(258,000)
Interest Expense	(830)	$ (8,456)
Total Other Income (Expense)	(258,830)	(8,456)
Net (loss) before Income Taxes	$ (791,151)	$ (793,548)
Provision for Income Taxes
Net (loss)	$ (791,151)	$ (793,548)
Basic and diluted net loss per common share (in dollars per share)	$ (0.02)	$ (0.02)
Basic and diluted weighted average number of common shares outstanding (in shares)	38,800,054	32,204,384

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT - USD ($)	Common Stock [Member]	Additional Paid In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at, Beginning at Aug. 31, 2013	$ 30,000	$ 1,135,000	$ (1,481,385)	$ (316,385)
Balance at, Beginning (in shares) at Aug. 31, 2013	30,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for cash	$ 1,200	59,800		$ 61,000
Common stock issued for cash (in shares)	1,200,000			2,421,300
Common stock issued for services	$ 3,900	437,700		$ 441,600
Common stock issued for services (in shares)	3,900,000			2,378,700
Common stock issued for debt	$ 900	$ 111,500		$ 112,400
Common stock issued for debt (in shares)	900,000
Net Loss			$ (793,548)	(793,548)
Balance at, End at Aug. 31, 2014	$ 36,000	$ 1,744,000	$ (2,274,933)	(494,933)
Balance at, End (in shares) at Aug. 31, 2014	36,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for cash	$ 707	126,493		$ 127,200
Common stock issued for cash (in shares)	706,664			4,000,000
Common stock issued of intellectual property	$ 1,433	256,567		$ 258,000
Common stock issued of intellectual property (in shares)	1,433,333
Common stock issued for related party advances	$ 393	70,407		$ 70,800
Common stock issued for related party advances (in shares)	393,336			393,336
Common stock issued for services	$ 1,336	239,044		$ 240,380
Common stock issued for services (in shares)	1,335,445			1,335,445
Common stock issued for debt	$ 131	$ 23,489		$ 23,620
Common stock issued for debt (in shares)	131,222
Net Loss			$ (791,151)	(791,151)
Balance at, End at Aug. 31, 2015	$ 40,000	$ 2,460,000	$ (3,066,084)	$ (566,084)
Balance at, End (in shares) at Aug. 31, 2015	40,000,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
OPERATING ACTIVITIES:
Net loss	$ (791,151)	$ (793,548)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment of intellectual assets, net	258,000
Expenses paid on behalf of the company	99,015	$ 148,234
Common stock issued for services	240,380	353,766
Changes in operating assets and liabilities:
Accounts payable and accrued expenses	(106,382)	158,614
Net cash used in operating activities	$ (300,138)	$ (132,934)
INVESTING ACTIVITIES:
FINANCING ACTIVITIES:
Net increase/(decrease) in notes payable	$ (48,000)	$ 70,000
Proceeds from related notes payable	$ 238,850
Cash increase due to related notes payable		$ 38,250
Payments on related party debt	$ (18,004)	(36,250)
Issuance of common stock for cash	127,200	61,000
Net cash provided by financing activities	300,046	133,000
NET CHANGE IN CASH	(92)	66
CASH BEGINNING BALANCE	319	253
CASH ENDING BALANCE	$ 227	$ 319
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Taxes paid
Interest paid	$ 830
NON-CASH TRANSACTIONS AFFECTING INVESTING AND FINANCING ACTIVITIES:
Common stock issued for forgiveness of related party advances	70,800
Common stock issued for forgiveness of debt	23,620	$ 200,234
Common stock issued for acquisition intangible asset	$ 258,000

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	12 Months Ended
	Aug. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION First Level Entertainment Group, Inc. (“the Company”), formerly known as Sound Kitchen Entertainment Group, Inc., commenced operations on February 1, 2012 and has incurred losses totaling $3,066,084. The Company was incorporated on June 2, 2008 in the State of Florida and established a fiscal year end of August 31. The Company is in the entertainment business presently focusing on mobile applications. The Company has the following wholly-owned subsidiaries: i) Mobile Sonars Inc.; ii) Am I There Inc.; iii) Message Attic Corp; iv) VIP Wink Corp.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Aug. 31, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements present the consolidated balance sheet, statements of operations, stockholders’ equity and cash flows of the Company including its wholly owned subsidiaries. These consolidated financial statements are presented in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States. Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany balances and transactions within the Company and subsidiary have been eliminated upon consolidation. Use of Estimates and Assumptions Preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Long-Lived Assets In accordance with ASC 360-10-05-4 “Property, Plant, and Equipment-Impairment or Disposal of Long-Lived Assets”, which was previously Financial Accounting SFAS No.144, “Accounting for the Impairment or Disposal of Long-lived Assets”, the Company assesses long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be fully recoverable. Recoverability of asset groups to be held and used in measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of an asset group exceeds the fair value of the asset group. The Company evaluates its long-lived assets for impairment on at least an annual basis. The Company recorded impairment charges of $258,000 and $-0- during the fiscal years ended August 31, 2015 and 2014, respectively. Fair Value for Financial Assets and Financial Liabilities The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification (“ASC”) for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB ASC (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 - Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 - Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Pricing inputs that are generally observable inputs and not corroborated by market data. The carrying amounts of the Company’s financial assets and liabilities, such as cash, advances, and accounts payable approximate their fair values because of the short maturity of these instruments. Income Taxes The Company follows the liability method of accounting for income taxes in accordance with ASC Topic 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment. Revenue and Cost Recognition The Company has no current source of revenue. The Company recognizes revenue based on Account Standards Codification (“ASC”) 605 “Revenue Recognition” Basic and Diluted Net Loss per Common Share Basic loss per share is calculated by dividing the Company’s net loss applicable to common stockholders by the weighted average number of common shares during the period. Diluted loss per share is calculated by dividing the Company’s net loss available to common stockholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of August 31, 2015 or 2014, which were excluded from the calculation of diluted loss per common share as their effect would have been anti-dilutive. Software Development Costs The Company capitalizes its costs to develop its software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Such costs are amortized on a straight-line basis over the estimated useful life of the related asset, which approximates three years. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized and expensed over the estimated useful life of the upgrades. The Company did not capitalize any software development costs in fiscal year 2015 or 2014 because the above criteria have not yet been met. The Company’s capitalized software amortization will be included in depreciation and amortization in the Company’s statements of operations. The company has had consulting and software development expenses of $336,987 for the year ended August 31, 2015 and $629,384 for the year ended August 31, 2014. Stock-based Compensation The Company follows the provisions of ASC 718, “Share-Based Payment.” which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock based compensation. The Company accounts for non-employee share-based awards based upon ASC 505-50, “Equity-Based Payments to Non-Employees.” ASC 505-50 requires the costs of goods and services received in exchange for an award of equity instruments to be recognized using the fair value of the goods and services or the fair value of the equity award, whichever is more reliably measurable. The fair value of the equity award is determined on the measurement date, which is the earlier of the date that a performance commitment is reached or the date that performance is complete. Generally, our awards do not entail performance commitments. When an award vests over time such that performance occurs over multiple reporting periods, we estimate the fair value of the award as of the end of each reporting period and recognize an appropriate portion of the cost based on the fair value on that date. When the award vests, we adjust the cost previously recognized so that the cost ultimately recognized is equivalent to the fair value on the date the performance is complete. The Company recognizes the cost associated with share-based awards that have a graded vesting schedule on a straight-line basis over the requisite service period of the entire award. Related Parties Related parties, which can be a corporation, individual, investor or another entity are considered to be related if the party has the ability, directly or indirectly, to control the other party or exercise significant influence over the Company in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. The Company has these relationships. Recent Accounting Pronouncements In June 2014, the FASB issued ASU 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. The guidance eliminates the definition of a development stage entity thereby removing the incremental financial reporting requirements from U.S. GAAP for development or exploration stage entities, primarily presentation of inception to date financial information. The provisions of the amendments are effective for annual reporting periods beginning after December 15, 2014, and the interim periods therein. However, early adoption is permitted. Accordingly, the Company has adopted this standard as of August 31, 2015.

GOING CONCERN

GOING CONCERN	12 Months Ended
	Aug. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	NOTE 3 – GOING CONCERN The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company does not have material assets, nor does it have operations or a source of revenue sufficient to cover its operation costs and allow it to continue as a going concern. The Company will be dependent upon the raising of additional capital through placement of our common stock in order to implement its business plan. There can be no assurance that the Company will be successful in either situation in order to continue as a going concern. The Company has funded its initial operations from inception by way of issuing common shares and through advances made by related parties. These consolidated 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 result from this uncertainty.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Aug. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 4 – RELATED PARTY TRANSACTIONS The Company does not lease or rent any property. Office space and services are provided without charge by an officer / shareholder. Such costs are immaterial to the consolidated financial statements and accordingly, have not been reflected therein. The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts. During the year ended August 31, 2014 a related party advanced $38,250 to the company and paid $148,234 of additional operating expenses on the Company’s behalf. The Company paid $36,250 in cash against the outstanding payable and paid 320,000 shares of common stock at $0.025 per share in settlement of $8,000 of the outstanding payable and 580,000 shares of common stock at $0.18 per share in settlement of $104,400 leaving an ending balance due of $-0-. All related party balances bear no interest and are due on demand. During the year ended August 31, 2015 a related party advanced $238,850 and paid $99,015 of additional operating expenses on the Company’s behalf. The Company paid 720,000 shares of common stock at $0.18 per share in settlement of $129,600 bonus given to this related party. The Company paid $18,004 in cash against the outstanding payable and paid 393,336 shares of common stock at $0.18 per share in settlement of $70,800 of the outstanding payable. At the end of the period the balance owed to this related party was $249,061.

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
	Aug. 31, 2015
Notes Payable [Abstract]
NOTE PAYABLE	NOTE 5 – NOTES PAYABLE On April 10, 2014, the Company entered into a note agreement with an unrelated third party to borrow a maximum amount of $150,000 (determined from time to time as advances are made) having a stated interest rate of six (6) percent and is convertible into common shares at fair market value at the discretion of the note holder both principal and interest are due April 10, 2015 and can be prepaid without penalty. At August 31 2014, the principal balance of the note outstanding was $70,000 with accrued interest of $790. During the year ended August 31, 2015 the company paid $48,000 in cash and the Company issued 131,222 shares in settlement of the full remaining balances of principal and interest of $22,000 and $1,620, respectively.

STOCKHOLDERS' DEFICIT

STOCKHOLDERS' DEFICIT	12 Months Ended
	Aug. 31, 2015
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' DEFICIT	NOTE 6 – STOCKHOLDERS’ DEFICIT During the year ended August 31, 2014, the Company issued 2,421,300 (post stock-split) shares of common stock valued at $0.08 per share in extinguishment of $200,234 of related party notes and other accounts payable. No gain or loss on extinguishment was recognized in the transactions. The Company also issued 2,378,700 (post stock-split) shares of common stock valued at $0.15 per share for services valued at $353,766. The values of the shares were based on the most recent share price of common stock issued for cash to non-related parties. During the year ended August 31, 2014 the Company also issued 1,200,000 (post stock-split) shares of common stock valued at $0.05 per share for cash proceeds of $61,000. During the year ended August 31, 2015, the Company issued 4,000,000 shares of common stock valued at $0.18 per share. The company received $127,200 of cash for 706,664 shares of common stock issued. The company issued 1,335,445 share of common stock for $240,380 in services, 131,222 shares of common stock for payment of $22,000 notes payable and $1,620 interest, 393,336 shares for payment of $70,800 related party debt, and 1,433,333 shares for the purchase of $258,000 of intangible assets which were subsequently impaired fully during the year ended August 31, 2015.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Aug. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7 – INCOME TAXES Net deferred tax assets consist of the following components: August 31, 2015 August 31, 2014 Deferred tax asset: Net operating loss carryforwards $ (1,213,671 ) $ (898,599 ) Common stock issued for services 550,720 455,770 Impairment expense 205,598 103,688 Valuation allowance 457,353 339,141 Net deferred tax asset $ — $ — The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income statutory tax rates to pretax income (loss) from continuing operations as follows: August 31, 2015 August 31, 2014 Tax benefit at statutory rates $ (315,072 ) $ (313,451 ) Common stock issued for services 94,950 139,738 Impairment expense 101,910 — Change in valuation allowance 118,212 173,713 Net provision for income taxes $ — $ — The Company has accumulated net operating loss carryovers of approximately $3,066,000 as of August 31, 2015, which are available to reduce future taxable income. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for federal income tax reporting purposes may be subject to annual limitations. A change in ownership may limit the utilization of the net operating loss carry forwards in future years. The tax losses begin to expire in 2034.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Aug. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 8 – SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations subsequent to August 31, 2015 through the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements other than the events described above.

SUMMARY OF SIGNIFICANT ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Aug. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The financial statements present the consolidated balance sheet, statements of operations, stockholders’ equity and cash flows of the Company including its wholly owned subsidiaries. These consolidated financial statements are presented in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany balances and transactions within the Company and subsidiary have been eliminated upon consolidation.
Use of Estimates and Assumptions	Use of Estimates and Assumptions Preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.
Long-Lived Assets	Long-Lived Assets In accordance with ASC 360-10-05-4 “Property, Plant, and Equipment-Impairment or Disposal of Long-Lived Assets”, which was previously Financial Accounting SFAS No.144, “Accounting for the Impairment or Disposal of Long-lived Assets”, the Company assesses long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be fully recoverable. Recoverability of asset groups to be held and used in measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of an asset group exceeds the fair value of the asset group. The Company evaluates its long-lived assets for impairment on at least an annual basis. The Company recorded impairment charges of $258,000 and $-0- during the fiscal years ended August 31, 2015 and 2014, respectively.
Fair Value for Financial Assets and Financial Liabilities	Fair Value for Financial Assets and Financial Liabilities The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification (“ASC”) for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB ASC (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 - Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 - Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Pricing inputs that are generally observable inputs and not corroborated by market data. The carrying amounts of the Company’s financial assets and liabilities, such as cash, advances, and accounts payable approximate their fair values because of the short maturity of these instruments.
Income Taxes	Income Taxes The Company follows the liability method of accounting for income taxes in accordance with ASC Topic 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment.
Revenue and Cost Recognition	Revenue and Cost Recognition The Company has no current source of revenue. The Company recognizes revenue based on Account Standards Codification (“ASC”) 605 “Revenue Recognition”
Basic and Diluted Net Loss per Common Share	Basic and Diluted Net Loss per Common Share Basic loss per share is calculated by dividing the Company’s net loss applicable to common stockholders by the weighted average number of common shares during the period. Diluted loss per share is calculated by dividing the Company’s net loss available to common stockholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of August 31, 2015 or 2014, which were excluded from the calculation of diluted loss per common share as their effect would have been anti-dilutive.
Software Development Costs	Software Development Costs The Company capitalizes its costs to develop its software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Such costs are amortized on a straight-line basis over the estimated useful life of the related asset, which approximates three years. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized and expensed over the estimated useful life of the upgrades. The Company did not capitalize any software development costs in fiscal year 2015 or 2014 because the above criteria have not yet been met. The Company’s capitalized software amortization will be included in depreciation and amortization in the Company’s statements of operations. The company has had consulting and software development expenses of $336,987 for the year ended August 31, 2015 and $629,384 for the year ended August 31, 2014.
Stock-based Compensation	Stock-based Compensation The Company follows the provisions of ASC 718, “Share-Based Payment.” which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock based compensation. The Company accounts for non-employee share-based awards based upon ASC 505-50, “Equity-Based Payments to Non-Employees.” ASC 505-50 requires the costs of goods and services received in exchange for an award of equity instruments to be recognized using the fair value of the goods and services or the fair value of the equity award, whichever is more reliably measurable. The fair value of the equity award is determined on the measurement date, which is the earlier of the date that a performance commitment is reached or the date that performance is complete. Generally, our awards do not entail performance commitments. When an award vests over time such that performance occurs over multiple reporting periods, we estimate the fair value of the award as of the end of each reporting period and recognize an appropriate portion of the cost based on the fair value on that date. When the award vests, we adjust the cost previously recognized so that the cost ultimately recognized is equivalent to the fair value on the date the performance is complete. The Company recognizes the cost associated with share-based awards that have a graded vesting schedule on a straight-line basis over the requisite service period of the entire award.
Related Parties	Related Parties Related parties, which can be a corporation, individual, investor or another entity are considered to be related if the party has the ability, directly or indirectly, to control the other party or exercise significant influence over the Company in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. The Company has these relationships.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2014, the FASB issued ASU 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. The guidance eliminates the definition of a development stage entity thereby removing the incremental financial reporting requirements from U.S. GAAP for development or exploration stage entities, primarily presentation of inception to date financial information. The provisions of the amendments are effective for annual reporting periods beginning after December 15, 2014, and the interim periods therein. However, early adoption is permitted. Accordingly, the Company has adopted this standard as of August 31, 2015.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Aug. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of deferred tax assets	Net deferred tax assets consist of the following components: August 31, 2015 August 31, 2014 Deferred tax asset: Net operating loss carryforwards $ (1,213,671 ) $ (898,599 ) Common stock issued for services 550,720 455,770 Impairment expense 205,598 103,688 Valuation allowance 457,353 339,141 Net deferred tax asset $ — $ —
Schedule of net provision for income taxes	The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income statutory tax rates to pretax income (loss) from continuing operations as follows: August 31, 2015 August 31, 2014 Tax benefit at statutory rates $ (315,072 ) $ (313,451 ) Common stock issued for services 94,950 139,738 Impairment expense 101,910 — Change in valuation allowance 118,212 173,713 Net provision for income taxes $ — $ —

NATURE OF OPERATIONS AND BASI17

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details Narrative) - USD ($)	12 Months Ended		87 Months Ended
	Aug. 31, 2015	Aug. 31, 2014	Aug. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Loss since inception	$ (791,151)	$ (793,548)	$ 3,066,084

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Impairment of intangible assets	$ 258,000
Consulting and software development expenses	$ 336,987	$ 629,384
Software Development Costs [Member]
Useful life of software	3 years
Consulting and software development expenses	$ 336,987	$ 629,384

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Related Party Transactions [Abstract]
Advances from related parties	$ 249,061
Cash increase due to related advances notes payable	$ 238,850
Cash increase due to related notes payable		$ 38,250
Operating expenses paid by related party	$ 99,015	148,234
Payments on related party debt	$ 18,004	$ 36,250
Common stock issued for debt (in shares)	393,336	320,000
Share price (in dollars per share)	0.18	0.025
Common stock issued for debt, value	$ 70,800	$ 8,000
Common stock issued for debt (in shares)		580,000
Share price (in dollars per share)		0.18
Common stock issued for debt, value		$ 104,400
Common shares issued to settlement of bonus	720,000
Common shares issued to settlement of bonus per share (in dollars per share)	$ 0.18
Settlement of bonus	$ 129,600

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Notes Payable [Abstract]
Date of agreement for convertible debt	Apr. 10, 2014
Convertible debt	$ 150,000
Percentage of interest (in percent)	6.00%
Maturity date of convertible debt	Apr. 10, 2015
Cash paid on settlement of notes payable	$ 48,000
Common stock issued for notes payable and interest (in shares)	131,222
Note payable -Remaining balances of principal		$ 70,000
Accrued interest		$ 790
Principal payment on remaining balance	$ 22,000
Interest payment on remaining balance	$ 1,620

STOCKHOLDERS' DEFICIT (Details

STOCKHOLDERS' DEFICIT (Details Narrative) - USD ($)	12 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Common stock issued for cash (in shares)	4,000,000	2,421,300
Shares issued price per share	$ 0.18	$ 0.08
Common stock issued for cash	$ 127,200	$ 1,200,000
Common stock issued for cash (in shares)	706,664
Common stock issued for cash per share (in dollars per share)		$ .05
Common stock issued for services (in shares)	1,335,445	2,378,700
Common stock issued for services per share (in dollars per share)		$ 0.15
Common Stock issued for services	$ 240,380	$ 353,766
Note payable		70,000
Accrued interest		790
Common stock issued for related party debt (in shares)	393,336
Common stock issued for related party debt	$ 70,800
Purchase of intangible assets (in shares)	1,433,333
Purchase of intangible assets	$ 258,000
Common stock issued for forgiveness of debt	23,620	200,234
Issuance of common stock for cash	$ 127,200	61,000
Unrelated Third Party [Member]
Common stock issued for notes payable and interest (in shares)	131,222
Note payable	$ 22,000
Accrued interest	$ 1,620
Common stock issued for forgiveness of debt		$ 200,234

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	Aug. 31, 2015USD ($)
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 3,066,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	Aug. 31, 2015	Aug. 31, 2014
Deferred tax asset:
Net operating loss carryforwards	$ (1,213,671)	$ (898,599)
Common stock issued for services	550,720	455,770
Impairment expense	205,598	103,688
Valuation allowance	$ 457,353	$ 339,141
Net deferred tax asset

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Income Tax Disclosure [Abstract]
Tax benefit at statutory rates	$ (315,072)	$ (313,451)
Common stock issued for services	94,950	$ 139,738
Impairment expense	101,910
Change in valuation allowance	$ 118,212	$ 173,713
Net provision for income taxes