KushCo (KSHB) 10-Q 8 Jan 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Nov. 30, 2018	Jan. 07, 2019
Document and Entity Information:
Entity Registrant Name	KushCo Holdings, Inc.
Entity Central Index Key	1,604,627
Trading Symbol	kshb
Current Fiscal Year End Date	--08-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		80,996,975
Document Type	10-Q
Document Period End Date	Nov. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Nov. 30, 2018	Aug. 31, 2018
Current assets:
Cash	$ 3,028,436	$ 13,466,807
Accounts receivable, net	10,339,293	8,600,959
Prepaid expenses and other current assets	20,070,569	13,623,285
Inventory, net	17,373,565	11,813,755
Total current assets	50,811,863	47,504,806
Goodwill	49,564,325	49,564,325
Intangible assets, net	3,822,100	4,487,415
Equity investment	2,326,884
Property and equipment, net	4,995,604	4,135,090
Other assets	1,132,503	250,296
Total Assets	112,653,279	105,941,932
Current liabilities:
Accounts payable	7,547,053	2,821,839
Accrued expenses and other current liabilities	4,402,176	2,738,430
Contingent cash consideration payable	672,849	754,955
Notes payable - current portion	117,192	61,685
Line of credit	6,728,632	918,124
Total current liabilities	19,467,902	7,295,033
Long-term liabilities:
Notes payable	338,675	172,021
Warrant liability	14,646,000	14,430,000
Deferred rent	108,479	106,032
Total long-term liabilities	15,093,154	14,708,053
Total liabilities	34,561,056	22,003,086
Commitments and contingencies (Note 16)
Stockholders' equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.001 par value, 265,000,000 shares authorized, 78,558,571 and 78,273,124 shares issued and outstanding, respectively	78,559	78,273
Additional paid-in capital	97,004,830	94,666,689
Accumulated deficit	(18,991,166)	(10,806,116)
Total stockholders' equity	78,092,223	83,938,846
Total liabilities and stockholders' equity	$ 112,653,279	$ 105,941,932

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Nov. 30, 2018	Aug. 31, 2018
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	265,000,000	265,000,000
Common stock, shares issued	78,558,571	78,273,124
Common stock, shares outstanding	78,558,571	78,273,124

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Income Statement [Abstract]
Net revenue	$ 25,319,642	$ 8,847,115
Cost of goods sold	22,090,504	5,766,576
Gross profit	3,229,138	3,080,539
Operating expenses:
Selling, general and administrative	12,547,638	2,929,096
Gain on disposition of assets	(1,254,414)
Total operating expenses	11,293,224	2,929,096
Income (loss) from operations	(8,064,086)	151,443
Other income (expense):
Change in fair value of warrant liability	(216,000)
Change in fair value of equity investment	536,000
Interest expense	(440,964)	(2,413)
Total other expense	(120,964)	(2,413)
(Loss) income before income taxes	(8,185,050)	149,030
Income tax expense		54,415
Net (loss) income	$ (8,185,050)	$ 94,615
Net (loss) income per share:
Basic net (loss) income per common share outstanding (in dollars per share)	$ (0.10)	$ 0
Diluted net (loss) income per common share outstanding (in dollars per share)	$ (0.10)	$ 0
Basic weighted-average common shares outstanding (in shares)	78,470,987	59,194,323
Diluted weighted-average common shares outstanding (in shares)	78,470,987	65,908,368

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Aug. 31, 2017	$ 58,607	$ 41,529,283	$ (607,244)	$ 40,980,646
Balance (in shares) at Aug. 31, 2017	58,607,066
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock sold to investors	$ 1,367	4,608,188		4,609,555
Stock sold to investors (in shares)	1,367,172
Stock option exercises	$ 5	(5)
Stock option exercises (in shares)	4,709
Stock issued for services	$ 27	268,081		268,108
Stock issued for services (in shares)	27,231
Net income (loss)			94,615	94,615
Balance at Nov. 30, 2017	$ 60,006	46,405,547	(512,629)	45,952,924
Balance (in shares) at Nov. 30, 2017	60,006,178
Balance at Aug. 31, 2018	$ 78,273	94,666,689	(10,806,116)	83,938,846
Balance (in shares) at Aug. 31, 2018	78,273,124
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises	$ 282	41,219		41,501
Stock option exercises (in shares)	280,971
Stock issued for services	$ 4	2,296,922		2,296,926
Stock issued for services (in shares)	4,476
Net income (loss)			(8,185,050)	(8,185,050)
Balance at Nov. 30, 2018	$ 78,559	$ 97,004,830	$ (18,991,166)	$ 78,092,223
Balance (in shares) at Nov. 30, 2018	78,558,571

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Cash flows from operating activities
Net income (loss)	$ (8,185,050)	$ 94,615
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	508,862	243,590
Gain on disposition of assets	(1,254,414)
Change in fair value of equity investment	(536,000)
Stock compensation expense	1,808,969	381,743
Change in fair value of warrant liability	216,000
Changes in operating assets and liabilities:
Accounts receivable	(1,738,334)	(1,069,410)
Prepaids	(6,663,159)	(1,545,793)
Inventory	(5,673,960)	(96,507)
Other assets	(152,777)
Accounts payable	4,520,681	760,577
Accrued expenses and other current liabilities	1,666,193	270,868
Net cash used in operating activities	(15,482,989)	(960,317)
Cash flows from investing activities
Acquisition of web domain		(44,321)
Security deposits	(25,598)
Purchase of property and equipment	(681,408)	(48,580)
Net cash used in investing activities	(707,006)	(92,901)
Cash flows from financing activities
Repayment of capital leases	(18,279)	(5,495)
Repayment of note payable		(333,395)
Proceeds from stock option exercises	41,501
Proceeds from sale of stock		4,609,555
Drawdown on line of credit	30,326,556	1,500,000
Payments on line of credit	(24,516,048)
Payments of contingent cash consideration	(82,106)	(85,000)
Net cash provided by financing activities	5,751,624	5,685,665
Net increase (decrease) in cash	(10,438,371)	4,632,447
Cash at beginning of period	13,466,807	916,984
Cash at end of period	3,028,436	5,549,431
Cash paid for:
Interest	155,069	2,370
Income taxes	0	0
Non-cash investing and financing activities
Property and equipment included in accounts payable	204,533
Capital leases	240,440
Services prepaid for in common stock	703,832	$ 34,077
Equity investment	$ 1,790,884

NATURE OF BUSINESS AND SIGNIFIC

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Nov. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business KushCo Holdings, Inc. (“the Company”) was incorporated in the state of Nevada on February 26, 2014. The Company specializes in marketing and selling packaging products, vaporizers, hydrocarbon gases, solvents, accessories and branding solutions to customers operating in the regulated medical and recreational cannabis industries. The Company provides custom branding on packaging products, and its testing standards meet the requirements set by the Consumer Product Safety Commission. The Company’s packaging products primarily consists of bottles, bags, tubes and containers. The Company maintains relationships with a broad range of manufacturers and also has sophisticated in-house labeling and customization capabilities. The Company sells a wide selection of vaporizer cartridges with a variety of core materials and heating technologies, as well as a wide selection of batteries to match the cartridges. The Company provides ultra-pure hydrocarbon gases, including isobutene, n-butane, propane, ethanol, pre-mixes, custom blends and other solvents, which are essential in the extraction process. The Company’s wholly-owned subsidiary, The Hybrid Creative, LLC, is a full-service creative agency that serves both cannabis and non-cannabis clients across the U.S., Canada and Europe. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related notes include the activity of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information. All intercompany balances and transactions have been eliminated. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The Company’s operating results for the three months period ended November 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ended August 31, 2019, or for any other period. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the fiscal year ended August 31, 2018. The condensed consolidated balance sheet as of August 31, 2018 included herein was derived from the audited financial statements as of that date, but does not include all disclosures as required by GAAP. There have been no changes to the Company’s significant accounting policies, other than the adoption of ASC 606, Revenue Recognition, described in its Annual Report on Form 10-K for the fiscal year ended August 31, 2018 that have had a material impact on the Company’s condensed consolidated financial statements and related notes. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Significant estimates relied upon in preparing these condensed consolidated financial statements include revenue recognition, accounts receivable reserves, inventory and related reserves, valuations and purchase price allocations related to business combinations, expected future cash flows used to evaluate the recoverability of long-lived assets, estimated fair values of long-lived assets used to record impairment charges related to intangible assets and goodwill, amortization periods, accrued expenses, stock-based compensation, and recoverability of the Company’s net deferred tax assets and any related valuation allowance. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if past experience or other assumptions do not turn out to be substantially accurate. The Company is subject to a number of risks similar to those of other companies of similar size and having a focus of serving the cannabis industry, including, the development stage of certain products, competition, limited number of suppliers, integration of acquisitions, substantial indebtedness, government regulations, protection of proprietary rights, and dependence on key individuals. Reclassification Certain classifications have been made to the prior year condensed consolidated financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net income (loss) or accumulated deficit. Accounts Receivable Trade accounts receivable are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis, thus trade receivables do not bear interest. Trade accounts receivables are periodically evaluated for collectability based on past credit history and their current financial condition. The Company’s allowance for doubtful accounts was $1,535,165 and $999,752 as of November 30, 2018 and August 31, 2018, respectively. Inventory Inventories are stated at the lower of cost or net realizable value using the first-in first out (FIFO) method. The Company’s inventory consists of finished goods of $17,373,565 and $11,813,755 as of November 30, 2018 and August 31, 2018, respectively. The Company also makes prepayments against the future delivery of inventory classified as prepaid inventory. The Company’s prepaid inventory was $16,680,000 and $11,019,000 as of November 30, 2018 and August 31, 2018, respectively. Net Income (Loss) Per Share The Company computes earnings per share under Accounting Standards Codification subtopic 260-10, "Earnings per Share" (“ASC 260-10”). Basic net income (loss) per common share is computed by dividing net income or loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and common shares equivalents outstanding during the period using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share: Three Months Ended November 30, 2018 2017 Net income (loss) $ (8,185,050 ) $ 94,615 Weighted average common shares outstanding: Basic 78,470,987 59,194,323 Net effect of dilutive options - 1,973,085 Net effect of contingent equity consideration - 4,740,960 Diluted 78,470,987 65,908,368 Earnings per share: Basic $ (0.10 ) $ 0.00 Diluted $ (0.10 ) $ 0.00 Revenue Recognition The Company markets and sells packaging products, vaporizers, hydrocarbon gases, solvents, accessories and branding solutions to customers operating in the regulated medical and recreational cannabis industries. The Company expenses fulfillment costs as incurred because the amortization period would be less than one year in accordance with the ASC 606 practical expedient. In accordance with ASC 606, the Company applies the following steps to recognize revenue for the sale of products that reflects the consideration to which the Company expects to be entitled to receive in exchange for the promised goods: 1. Identify the contract with a customer A contract with a customer exists when the Company enters into an enforceable contract with a customer. The contract is based on either the acceptance of standard terms, or the execution of terms and conditions contracts. These contracts define each party's rights, payment terms and other contractual terms and conditions of the sale. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience and, in some circumstances, published credit and financial information pertaining to the customer. 2. Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract, whereby the transfer of the goods is separately identifiable from other promises in the contract. The Company has concluded the sale of finished goods and related shipping and handling are accounted for as a single performance obligation. 3. Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled to receive in exchange for transferring goods to the customer. The Company estimates the amount of potential refunds at each reporting period using a portfolio approach of historical data, adjusted for changes in expected customer experience, including seasonality and changes in economic factors. Discounts provided to customers are accounted for as an element of the transaction price and as a reduction to revenue, and were $312,292 and $53,824 for the three months ended November 30, 2018 and 2017, respectively. Revenue is presented net of taxes collected from customers and remitted to governmental authorities. 4. Allocate the transaction price to the performance obligations in the contract The Company’s products are sold at their standalone selling price. 5. Recognize revenue when the Company satisfies a performance obligation Revenue is recognized when control of the finished goods is transferred to the customer. Control of the finished goods is transferred at a point in time, upon delivery to the customer. The period of time between the satisfaction of the performance obligation and when payment is due from the customer is not significant. In the following table, product sales are disaggregated as follows for the three months ended November 30: 2018 2017 Manufacturing $ 24,859,952 $ 8,732,882 Services 459,690 $ 114,233 Total Net Revenue $ 25,319,642 $ 8,847,115 Advertising The Company conducts advertising for the promotion of its products and services. In accordance with ASC subtopic 720-35-25(Topic 720), advertising costs are charged to expense when incurred. Advertising costs were $492,583 and $107,924 for the three months ended November 30, 2018 and 2017, respectively. Recently Issued Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13, “ Fair Value Measurement (Topic 820), - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-01, Business Combinations Clarifying the Definition of a Business In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Other Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the condensed consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

ACQUISITION OF SUMMIT INNOVATIO

ACQUISITION OF SUMMIT INNOVATIONS, LLC	3 Months Ended
	Nov. 30, 2018
ACQUISITION OF SUMMIT INNOVATIONS, LLC
Business Acquisition [Line Items]
ACQUISITION OF SUMMIT INNOVATIONS, LLC	NOTE 2 - ACQUISITION OF SUMMIT INNOVATIONS, LLC On May 2, 2018, the Company completed its acquisition of Summit Innovations, LLC (“Summit”), a leading distributor of hydrocarbon gases to the legal cannabis industry. Pursuant to the terms of the merger agreement with Summit, Summit merged with and into KCH Energy, LLC, a wholly-owned subsidiary of the Company, with KCH Energy, LLC as the surviving entity. The acquisition was accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations. Total purchase consideration at closing consisted of 640,000 shares of common stock with a fair value of $3,577,600 and cash consideration of $905,231, net of cash received. Cash consideration of $187,849 and approximately 640,000 shares of common stock were held back by the Company for a period of 15 months for potential post-closing working capital and/or indemnification claims relating to, among other things, breaches of representations, warranties and covenants contained in the merger agreement. The former members of Summit may become entitled to receive earn-out consideration of up to an additional 1,280,000 shares of the Company’s common stock, in the aggregate, based on the net revenue performance of the Summit business during a one-year period following the closing.

ACQUISITION OF THE HYBRID CREAT

ACQUISITION OF THE HYBRID CREATIVE, LLC	3 Months Ended
	Nov. 30, 2018
ACQUISITION OF HYBRID CREATIVE, LLC
Business Acquisition [Line Items]
ACQUISITION OF THE HYBRID CREATIVE, LLC	NOTE 3 - ACQUISITION OF THE HYBRID CREATIVE, LLC On July 11, 2018, the Company completed its acquisition of Zack Darling Creative Associates (“ZDCA”), and its wholly-owned subsidiary The Hybrid Creative, LLC (“Hybrid”), which together operated as a specialist design agency. Pursuant to the terms of the purchase agreement with the members of ZDCA, the Company purchased the entire issued member interest of ZDCA. Following the acquisition, ZDCA operates as a wholly-owned subsidiary of the Company, with Hybrid continuing to operate as wholly-owned subsidiary of ZDCA. The acquisition was accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations. The consideration paid to the members of Hybrid at the closing included cash consideration consisting of an aggregate of $847,187 in cash, net of cash received, $82,106 in cash held back and share consideration consisting of an aggregate of 360,000 shares of the Company’s common stock. The former members of ZDCA may become entitled to receive earn-out payments of up to $1.37 million consisting of a combination of cash and stock payments, based on the net revenue performance of Hybrid during the period September 1, 2018 through August 31, 2019.

CONCENTRATIONS OF RISK

CONCENTRATIONS OF RISK	3 Months Ended
	Nov. 30, 2018
Risks and Uncertainties [Abstract]
CONCENTRATIONS OF RISK	NOTE 4 - CONCENTRATIONS OF RISK Supplier Concentrations The Company purchases inventory from various suppliers and manufacturers. For the three months ended November 30, 2018, one vendor accounted for approximately 56% of total inventory purchases. For the three months ended November 30, 2017, two vendors accounted for approximately 30% and 13%, respectively, of total inventory purchases. Customer Concentrations During the three months ended November 30, 2018 and 2017, there was one customer which represented over 10% of the Company’s revenues. As of November 30, 2018, there was one customer who represented 16% of accounts receivable. As of November 30, 2017, there were two customers who represented 26% of accounts receivable.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	3 Months Ended
	Nov. 30, 2018
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS	NOTE 5 - RELATED-PARTY TRANSACTIONS The Company sub-leased its former corporate headquarters from 3 Kings Ventures, LLC, a related party owned by Dallas Imbimbo, Director, Nicholas Kovacevich, Chairman and Chief Executive Officer, and Jeffrey Meng, formerly a greater than 5% stockholder. During the three months ended November 30, 2018 and 2017, the Company made rent payments of $0 and $53,660, respectively, to these related parties.

SALE OF RUB

SALE OF RUB	3 Months Ended
	Nov. 30, 2018
Sale Of Rub [Abstract]
SALE OF RUB	NOTE 6 – SALE OF RUB On September 21, 2018, Smoke Cartel, Inc. (“Smoke Cartel”) and the Company entered into an agreement to sell a web domain and inventory related to the Company’s Roll-uh-Bowl (“RUB”) product line. The Company received 1,410,145 shares of Smoke Cartel common stock as part of the consideration for this transaction. The fair value of its equity investment as of September 21, 2018 was based upon the closing stock price of Smoke Cartel. The following sets forth the calculation of the gain on disposition of assets upon completion of the sale: Fair value of Smoke Cartel as of September 21, 2018 $ 1,790,884 RUB web domain and inventory sold (536,470 ) Gain on disposition of assets $ 1,254,414 The sale of the RUB assets did not qualify as a discontinued operation as the sale is not a strategic shift that has (or will have) a major effect on the Company’s operations and financial results.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Nov. 30, 2018
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 7 - PROPERTY AND EQUIPMENT The major classes of fixed assets consist of the following as of November 30, 2018 and August 31, 2018: November 30, August 31, 2018 2018 Machinery and equipment $ 3,138,820 $ 2,937,784 Vehicles 621,350 380,893 Office Equipment 575,819 385,627 Leasehold improvements 1,483,386 1,318,805 5,819,375 5,023,109 Accumulated Depreciation (1,153,886 ) (888,019 ) $ 4,665,489 $ 4,135,090 Of the $621,350 of vehicles as of November 30, 2018, $240,440 consists of capital leased assets. Depreciation and amortization expense was $265,867 and $55,472, for the three months ended November 30, 2018 and 2017, respectively. Of the $265,867 of depreciation and amortization expense related to tangible assets for the three months ended November 30, 2018, $162,959 is included in selling, general and administrative expense and $102,908 is included in cost of goods sold on the condensed consolidated statements of operations. Of the $55,472 of depreciation and amortization expense for the three months ended November 30, 2017, $13,696 is included in selling, general and administrative expense and $41,776 is included in cost of goods sold on the condensed consolidated statements of operations. The Company’s construction-in-progress assets equaled $330,115 and $0, as of November 30, 2018 and August 31, 2018, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Nov. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 8 - INTANGIBLE ASSETS Intangible assets consist of the following as of November 30, 2018 and August 31, 2018: As of November 30, 2018 As of August 31, 2018 Weighted Average Estimated Gross Gross Useful Carrying Accumulated Net Carrying Accumulated Net Description Life Value Amortization Amount Value Amortization Amount Domain name 5 years $ 9,321 $ (943 ) $ 8,378 $ 598,605 $ (166,530 ) $ 432,075 Trade name 6 years 2,600,000 (686,111 ) 1,913,889 2,600,000 (577,778 ) 2,022,222 Non-compete agreement 4 years 2,370,000 (470,167 ) 1,899,833 2,370,000 (336,882 ) 2,033,118 $ 4,979,321 $ (1,157,221 ) $ 3,822,100 $ 5,568,605 $ (1,081,190 ) $ 4,487,415 Amortization expense was $242,995 and $188,118, for the three months ended November 30, 2018 and 2017, respectively. The following table shows the remaining amortization expense associated with finite lived intangible assets as of November 30, 2018: Intangible Assets 2019 (Remaining nine months) $ 710,966 2020 947,954 2021 881,288 2022 747,955 2023 528,511 Thereafter 5,426 $ 3,822,100

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	3 Months Ended
	Nov. 30, 2018
Accrued Liabilities and Other Liabilities [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	NOTE 9 - ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following as of November 30, 2018 and August 31, 2018: November 30, August 31, 2018 2018 Customer deposits $ 1,795,890 $ 768,908 Accrued compensation 1,391,855 992,747 Sales tax payable 415,928 432,491 Other accrued expenses 798,503 544,284 $ 4,402,176 $ 2,738,430

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Nov. 30, 2018
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 10 - NOTES PAYABLE Automobile Contracts Payable The Company has entered into purchase contracts for its vehicles. The loans and automobile contracts are secured by the vehicles and bear interest at an average interest rate of approximately 4% per annum. Future principal payments on these automobile contracts payable is summarized in the table below: Principal Due (Unaudited) 2019 (Remaining nine months) $ 88,971 2020 116,297 2021 110,728 2022 112,767 2023 27,104 $ 455,867

LOAN AGREEMENT

LOAN AGREEMENT	3 Months Ended
	Nov. 30, 2018
Loan Agreement [Abstract]
LOAN AGREEMENT	NOTE 11 - LOAN AGREEMENT On November 16, 2017, the Company and its wholly-owned subsidiary KIM International Corporation (“KIM”) as borrowers, and all of the Company’s other subsidiaries, as credit parties, entered into a Loan and Security Agreement (the “Loan Agreement”) with Gerber Finance Inc., as lender (“Gerber”), effective as of November 6, 2017. The Loan Agreement originally provided a secured revolving credit facility (the “Revolving Line”) in an aggregate principal amount of up to $2.0 million at any time outstanding. Under the original terms of the Loan Agreement, the principal amount of loans, plus the face amount of any outstanding letters of credit, at any time outstanding cannot exceed up to 85% of the Company’s eligible receivables minus reserves. Under the terms of the Loan Agreement, the Company may also request letters of credit from Gerber. The proceeds of the loans under the Loan Agreement will be used for working capital and general corporate purposes. The Revolving Line has a maturity date of November 6, 2019. Borrowings under the Revolving Line accrues interest at a rate based on the prime rate as customarily defined, plus a margin of 3.0%. On March 8, 2018, the Company and KIM entered into a first amendment to the Loan Agreement with Gerber. Pursuant to the first amendment, the aggregate principal amount of the Revolving Line at any time outstanding was increased to $4.0 million and the principal amount of loans, plus the face amount of any outstanding letters of credit, at any time outstanding could not exceed the lesser of (i) 40% of the value of certain inventory and (ii) 50% of certain accounts receivable. On November 9, 2018, the Company and KIM entered into a second amendment to the Loan Agreement with Gerber. Pursuant to the second amendment, the aggregate principal amount of the Revolving Line at any time outstanding was increased to $8.0 million. Additionally, subject to certain exceptions, the face amount of any outstanding letters of credit, at any time outstanding cannot exceed the lesser of (i) 25% of the value of certain inventory (increasing to 40% upon receipt of certain landlord waivers) and (ii) 50% of certain accounts receivable. During the three months ended November 30, 2018, the Company drew down $30,326,556 from its line of credit and repaid $24,516,048. As of November 30, 2018, the amount outstanding on the Revolving Line was $6,728,632.

CONTINGENT CASH CONSIDERATION

CONTINGENT CASH CONSIDERATION	3 Months Ended
	Nov. 30, 2018
Business Combination, Contingent Consideration Arrangements [Abstract]
CONTINGENT CASH CONSIDERATION	NOTE 12 - CONTINGENT CASH CONSIDERATION The Company has contingent consideration outstanding associated with its prior business combinations. The Company accounts for business combinations under the acquisition method and allocates the total purchase price for acquired businesses to the tangible and identified intangible assets acquired and liabilities assumed, based on their estimated fair values as of the acquisition date. A liability for contingent consideration, if applicable, is recorded at fair value as of the acquisition date and, evaluated each period for changes in the fair value and adjusted as appropriate. The Company’s contingent consideration as of November 30, 2018 was $672,849, consisting of $187,849 from the Summit acquisition and $485,000 from the Hybrid acquisition. The Company’s contingent consideration as of August 31, 2018 was $754,955, consisting of $187,849 from the Summit acquisition and $532,106 from the Hybrid acquisition.

WARRANT LIABILITY

WARRANT LIABILITY	3 Months Ended
	Nov. 30, 2018
Warrant Liabilities [Abstract]
WARRANT LIABILITY	NOTE 13 - WARRANT LIABILITY In June of 2018, the Company issued warrants to purchase 3,750,000 shares of its common stock to investors in a registered direct offering. The warrants have a term of five years from the date of issuance. The exercise price of the warrants is protected in the event the Company issues securities with a variable conversion or exercise price during the three-year period following the warrants’ issuance, and the Company is contractually prohibited from making such issuances during the three-year period. Pursuant to ASC Topic 815, the fair value of the warrants of $15,350,000 was recorded as a derivative liability on the issuance dates. The estimated fair values of the warrants were computed at issuance using an option pricing model. The estimated fair value of the outstanding warrant liabilities was $14,646,000 and $14,430,000 as of November 30, 2018 and August 31, 2018, respectively. Increases or decreases in the fair value of the derivative liability are included as a component of other income (expense) in the accompanying condensed consolidated statements of operations for the respective period. The changes to the derivative liability for warrants resulted in an increase of $216,000 in warrant liability and a corresponding loss for the three months ended November 30, 2018. The estimated fair value of the warrants was computed as of November 30, 2018 and August 31, 2018 using the following assumptions: November 30, August 31, 2018 2018 Stock price volatility 86.3% 78.1% - 81.1% Risk-free interest rates 2.83% 2.72% - 2.74% Annual dividend yield 0% 0% Term 4.5 3.8 - 4.0 In addition, management assessed the probabilities of future financing assumptions in the valuation models.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Nov. 30, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 14 - FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value measurements are performed in accordance with the guidance provided by ASC Topic 820, “Fair Value Measurements and Disclosures.” ASC Topic 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities recorded at fair value in the financial statements are categorized based upon the hierarchy of levels of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs that are supportable by little or no market activity and that are significant to the fair value of the asset or liability. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, capital lease obligations and deferred revenue approximate their fair values based on their short-term nature. The carrying amount of the Company’s long-term notes payable approximates its fair value based on interest rates available to the Company for similar debt instruments and similar remaining maturities. The estimated fair value of the contingent consideration related to the Company's business combinations is recorded using significant unobservable measures and other fair value inputs and is therefore classified as a Level 3 financial instrument. The Company accounts for its investment in Smoke Cartel at fair value. On September 21, 2018, Smoke Cartel and the Company entered into an agreement to sell the RUB web domain and inventory related to this product line and in exchange, received 1,410,145 shares of Smoke Cartel common stock (see Note 6 above.) The fair value of its investment as of September 21, 2018 and November 30, 2018 was based upon the closing stock price of Smoke Cartel. The investment was classified as a Level 2 financial instrument. In connection with the Company’s registered direct offering in June 2018, the Company issued warrants to purchase shares of its common stock and recorded embedded conversion features which are accounted for as derivative liabilities (see Note 13 above.) The estimated fair value of the derivatives is recorded using significant unobservable measures and other fair value inputs and is therefore classified as a Level 3 financial instrument. The following table details the fair value measurements within the fair value hierarchy of the Company’s financial instruments, which includes the Level 2 assets and the Level 3 liabilities: Fair Value at November 30, 2018 Total Level 1 Level 2 Level 3 Assets: Equity investment $ 2,326,884 $ - $ 2,326,884 $ - Liabilities: Contingent cash consideration payable $ 672,849 $ - $ - $ 672,849 Warrant liability 14,646,000 14,646,000 Total liabilities $ 15,318,849 $ - $ - $ 15,318,849 Fair Value at August 31, 2018 Total Level 1 Level 2 Level 3 Liabilities: Contingent cash consideration payable $ 754,955 $ - $ - $ 754,955 Warrant liability 14,430,000 - - 14,430,000 Total liabilities $ 15,184,955 $ - $ - $ 15,184,955 The following table reflects the activity for the Company’s investment in Smoke Cartel measured at fair value using Level 2 inputs: I nvestment in Smoke Cartel Balance at August 31, 2018 $ - Acquisition of equity investment 1,790,884 Adjustment to fair value 536,000 Balance at November 30, 2018 $ 2,326,884 The following table reflects the activity for the Company’s warrant derivative liability measured at fair value using Level 3 inputs: Warrant Liability Balance at August 31, 2018 $ 14,430,000 Adjustment to fair value 216,000 Balance at November 30, 2018 $ 14,646,000 The following table reflects the activity for the Company’s contingent consideration measured at fair value using Level 3 inputs: Contingent Consideration Balance at August 31, 2018 $ 754,955 Contingent consideration payments (82,106 ) Balance at November 30, 2018 $ 672,849 The fair value of contingent consideration is evaluated each reporting period using projected revenues, discount rates, and projected timing of revenues. Projected contingent payment amounts are discounted back to the current period using a discount rate. Projected revenues are based on the Company’s most recent internal operational budgets and projections. Increases in projected revenues may result in higher fair value measurements. Increases in discount rates and the time to payment may result in lower fair value measurements. Increases (decreases) in any of those inputs in isolation may result in a significantly lower (higher) fair value measurement. During the three months ended November 30, 2018 and 2017, the net adjustment to the fair value of the Company’s contingent consideration was $0. The weighted-average of the discount rates used was 17% as of November 30, 2018 and August 31, 2018. The projected year of payment ranges from 2019 to 2023.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Nov. 30, 2018
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	NOTE 15 - STOCKHOLDERS' EQUITY Preferred Stock The authorized preferred stock is 10,000,000 shares with a par value of $0.001. As of November 30, 2018, and August 31, 2018, the Company has no shares of preferred stock issued or outstanding. Common Stock The authorized common stock is 265,000,000 shares with a par value of $0.001. As of November 30, 2018, and August 31, 2018, 78,558,571 and 78,273,124 shares were issued and outstanding, respectively. During the three months ended November 30, 2017, the Company sold 1,367,172 shares of its common stock to investors in exchange for cash of $2,045,505. For the same period ended November 30, 2017, the Company collected $2,564,050 of cash in advance of issuing the related 1,709,366 shares in the subsequent period. Share-based Compensation The Company recorded stock compensation expense of $1,808,969 and $381,743 for the three-month periods ended November 30, 2018 and 2017, respectively, in connection with the issuance of shares of common stock and options to purchase common stock. During the three months period ended November 30, 2018, the Company authorized to issue shares of common stock to consultants in exchange for $124,098 of services rendered and $703,832 of prepaid services, for a total of $827,930. The $703,832 of prepaid services is included in prepaid expenses on the condensed consolidated balance sheet as of November 30, 2018. The total fair value of shares vested during the three month period November 30, 2018 is $1,468,996. This amount is included in stock compensation expense on the condensed consolidated statements of operations. During the three months period ended November 30, 2018, the Company issued 4,476 shares of common stock to a consultant in exchange for services rendered. During the three months period ended November 30, 2017, the Company issued 27,231 shares of common stock to consultants in exchange for $20,000 of services rendered and $34,077 of prepaid services, for a total of $54,077. The total fair value of options vested during the three month period November 30, 2017 is $214,031. This amount is included in stock compensation expense on the condensed consolidated statements of operations. Stock Options The Company’s 2016 Stock Incentive Plan (the “Plan”) was adopted on February 9, 2016. The Plan, as amended, permits the grant of share options and shares to its employees and directors for up to 15,000,000 shares of common stock. The Company believes that such awards better align the interests of its employees with those of its shareholders. Option awards are generally granted with an exercise price equal to the market price of the Company's stock at the date of grant; those option awards generally vest based on three years of continuous service and have 10-year contractual terms. The Company estimates the fair value of share-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables such as the expected option term, expected volatility of our stock price over the expected option term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of stock options granted to employees and directors which are subject to ASC Topic 718 requirements. These amounts are estimates and thus may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The Company recognizes compensation on a straight-line basis over the requisite service period for each award. The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted during the three months ended November 30, 2018 and 2017: November 30, November 30, 2018 2017 Expected term in years 3 1-4 Expected volatility 82% - 87% 60% Risk-free interest rate 2.70% - 3.01% 1.14% - 1.97% Expected dividend yield 0% 0% The expected life is computed using the simplified method, which is the average of the vesting term and the contractual term. The expected volatility is based on management's analysis of historical volatility for comparable companies. The risk-free interest rate is based on the U.S. Treasury yields with terms equivalent to the expected term of the related option at the time of the grant. While the Company believes these estimates are reasonable, the compensation expense recorded would increase if the expected life was increased, a higher expected volatility was used, or if the expected dividend yield increased. During the three months ended November 30, 2018 and 2017, the Company issued 2,494,500 and 960,500 stock options, respectively, pursuant to the Company’s 2016 Stock Incentive Plan. A summary of the Company’s stock option activity during the three-month period ended November 30, 2018 is presented below: Weighted Weighted Average Average Remaining Aggregate Stock Exercise Contractual Intrinsic Options Price Term (in years) Value Balance Outstanding, August 31, 2018 9,367,693 $ 3.85 9.1 $ 14,463,235 Granted 2,494,500 $ 5.61 9.8 664,750 Exercised (287,499 ) $ 0.29 - - Forfeited (736,947 ) $ 3.85 - - Balance Outstanding, November 30, 2018 10,837,747 $ 4.35 9.3 $ 15,671,112 Exercisable, November 30, 2018 2,814,806 $ 2.78 8.0 $ 7,212,336 The weighted-average grant-date fair value of options granted during the three months ended November 30, 2018 and 2017, was $3.10 and $2.25, respectively. The weighted-average grant-date fair value of options forfeited during the three months ended November 30, 2018 was $2.01. During the three months ended November 30, 2018, the Company issued 266,667 shares of common stock in exchange for $41,501, pursuant to stock option exercises and issued 18,748 shares of common stock pursuant to a cashless exercise of 20,831 stock options. During the three months ended November 30, 2017, the Company issued 4,709 shares of common stock pursuant to cashless exercises of 10,000 stock options. As of November 30, 2018, there was $17,836,723 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 1.3 years.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Nov. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 16 - COMMITMENTS AND CONTINGENCIES Other Commitments In the ordinary course of business, the Company may enter into contractual purchase obligations and other agreements that are legally binding and specify certain minimum payment terms. Litigation The Company may be subject to legal proceedings and claims which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters should not have a material adverse effect on its financial position, results of operations or liquidity.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Nov. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 17 - SUBSEQUENT EVENTS Subsequent to November 30, 2018 and through January 4, 2019, the Company sold 2,307,141 shares of its common stock to investors in exchange for aggregate gross proceeds of $9,468,394 in a private placement.

NATURE OF BUSINESS AND SIGNIF_2

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Nov. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business KushCo Holdings, Inc. (“the Company”) was incorporated in the state of Nevada on February 26, 2014. The Company specializes in marketing and selling packaging products, vaporizers, hydrocarbon gases, solvents, accessories and branding solutions to customers operating in the regulated medical and recreational cannabis industries. The Company provides custom branding on packaging products, and its testing standards meet the requirements set by the Consumer Product Safety Commission. The Company’s packaging products primarily consists of bottles, bags, tubes and containers. The Company maintains relationships with a broad range of manufacturers and also has sophisticated in-house labeling and customization capabilities. The Company sells a wide selection of vaporizer cartridges with a variety of core materials and heating technologies, as well as a wide selection of batteries to match the cartridges. The Company provides ultra-pure hydrocarbon gases, including isobutene, n-butane, propane, ethanol, pre-mixes, custom blends and other solvents, which are essential in the extraction process. The Company’s wholly-owned subsidiary, The Hybrid Creative, LLC, is a full-service creative agency that serves both cannabis and non-cannabis clients across the U.S., Canada and Europe.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related notes include the activity of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information. All intercompany balances and transactions have been eliminated. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The Company’s operating results for the three months period ended November 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ended August 31, 2019, or for any other period. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the fiscal year ended August 31, 2018. The condensed consolidated balance sheet as of August 31, 2018 included herein was derived from the audited financial statements as of that date, but does not include all disclosures as required by GAAP. There have been no changes to the Company’s significant accounting policies, other than the adoption of ASC 606, Revenue Recognition, described in its Annual Report on Form 10-K for the fiscal year ended August 31, 2018 that have had a material impact on the Company’s condensed consolidated financial statements and related notes.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Significant estimates relied upon in preparing these condensed consolidated financial statements include revenue recognition, accounts receivable reserves, inventory and related reserves, valuations and purchase price allocations related to business combinations, expected future cash flows used to evaluate the recoverability of long-lived assets, estimated fair values of long-lived assets used to record impairment charges related to intangible assets and goodwill, amortization periods, accrued expenses, stock-based compensation, and recoverability of the Company’s net deferred tax assets and any related valuation allowance. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if past experience or other assumptions do not turn out to be substantially accurate. The Company is subject to a number of risks similar to those of other companies of similar size and having a focus of serving the cannabis industry, including, the development stage of certain products, competition, limited number of suppliers, integration of acquisitions, substantial indebtedness, government regulations, protection of proprietary rights, and dependence on key individuals.
Reclassification	Reclassification Certain classifications have been made to the prior year condensed consolidated financial statements to conform to the current year presentation. The reclassification had no impact on previously reported net income (loss) or accumulated deficit.
Accounts Receivable	Accounts Receivable Trade accounts receivable are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis, thus trade receivables do not bear interest. Trade accounts receivables are periodically evaluated for collectability based on past credit history and their current financial condition. The Company’s allowance for doubtful accounts was $1,535,165 and $999,752 as of November 30, 2018 and August 31, 2018, respectively.
Inventory	Inventory Inventories are stated at the lower of cost or net realizable value using the first-in first out (FIFO) method. The Company’s inventory consists of finished goods of $17,373,565 and $11,813,755 as of November 30, 2018 and August 31, 2018, respectively. The Company also makes prepayments against the future delivery of inventory classified as prepaid inventory. The Company’s prepaid inventory was $16,680,000 and $11,019,000 as of November 30, 2018 and August 31, 2018, respectively.
Net Income (Loss) Per Share	Net Income (Loss) Per Share The Company computes earnings per share under Accounting Standards Codification subtopic 260-10, "Earnings per Share" (“ASC 260-10”). Basic net income (loss) per common share is computed by dividing net income or loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and common shares equivalents outstanding during the period using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share: Three Months Ended November 30, 2018 2017 Net income (loss) $ (8,185,050) $ 94,615 Weighted average common shares outstanding: Basic 78,470,987 59,194,323 Net effect of dilutive options - 1,973,085 Net effect of contingent equity consideration - 4,740,960 Diluted 78,470,987 65,908,368 Earnings per share: Basic $ (0.10 ) $ 0.00 Diluted $ (0.10 ) $ 0.00
Revenue Recognition	Revenue Recognition The Company markets and sells packaging products, vaporizers, hydrocarbon gases, solvents, accessories and branding solutions to customers operating in the regulated medical and recreational cannabis industries. The Company expenses fulfillment costs as incurred because the amortization period would be less than one year in accordance with the ASC 606 practical expedient. In accordance with ASC 606, the Company applies the following steps to recognize revenue for the sale of products that reflects the consideration to which the Company expects to be entitled to receive in exchange for the promised goods: 1. Identify the contract with a customer A contract with a customer exists when the Company enters into an enforceable contract with a customer. The contract is based on either the acceptance of standard terms, or the execution of terms and conditions contracts. These contracts define each party's rights, payment terms and other contractual terms and conditions of the sale. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience and, in some circumstances, published credit and financial information pertaining to the customer. 2. Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract, whereby the transfer of the goods is separately identifiable from other promises in the contract. The Company has concluded the sale of finished goods and related shipping and handling are accounted for as a single performance obligation. 3. Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled to receive in exchange for transferring goods to the customer. The Company estimates the amount of potential refunds at each reporting period using a portfolio approach of historical data, adjusted for changes in expected customer experience, including seasonality and changes in economic factors. Discounts provided to customers are accounted for as an element of the transaction price and as a reduction to revenue, and were $312,292 and $53,824 for the three months ended November 30, 2018 and 2017, respectively. Revenue is presented net of taxes collected from customers and remitted to governmental authorities. 4. Allocate the transaction price to the performance obligations in the contract The Company’s products are sold at their standalone selling price. 5. Recognize revenue when the Company satisfies a performance obligation Revenue is recognized when control of the finished goods is transferred to the customer. Control of the finished goods is transferred at a point in time, upon delivery to the customer. The period of time between the satisfaction of the performance obligation and when payment is due from the customer is not significant. In the following table, product sales are disaggregated as follows for the three months ended November 30: 2018 2017 Manufacturing $ 24,859,952 $ 8,732,882 Services 459,690 $ 114,233 Total Net Revenue $ 25,319,642 $ 8,847,115
Advertising	Advertising The Company conducts advertising for the promotion of its products and services. In accordance with ASC subtopic 720-35-25(Topic 720), advertising costs are charged to expense when incurred. Advertising costs were $492,583 and $107,924 for the three months ended November 30, 2018 and 2017, respectively.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13, “ Fair Value Measurement (Topic 820), - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-01, Business Combinations Clarifying the Definition of a Business In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Other Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the condensed consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

NATURE OF BUSINESS AND SIGNIF_3

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Nov. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of basic and diluted earnings per share	Three Months Ended November 30, 2018 2017 Net income (loss) $ (8,185,050 ) $ 94,615 Weighted average common shares outstanding: Basic 78,470,987 59,194,323 Net effect of dilutive options - 1,973,085 Net effect of contingent equity consideration - 4,740,960 Diluted 78,470,987 65,908,368 Earnings per share: Basic $ (0.10 ) $ 0.00 Diluted $ (0.10 ) $ 0.00
Schedule of disaggregation of revenue	2018 2017 Manufacturing $ 24,859,952 $ 8,732,882 Services 459,690 $ 114,233 Total Net Revenue $ 25,319,642 $ 8,847,115

SALE OF RUB (Tables)

SALE OF RUB (Tables)	3 Months Ended
	Nov. 30, 2018
Sale Of Rub [Abstract]
Schedule of gain on disposition of assets	Fair value of Smoke Cartel as of September 21, 2018 $ 1,790,884 RUB web domain and inventory sold (536,470 ) Gain on disposition of assets $ 1,254,414

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Nov. 30, 2018
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	November 30, August 31, 2018 2018 Machinery and equipment $ 3,138,820 $ 2,937,784 Vehicles 621,350 380,893 Office Equipment 575,819 385,627 Leasehold improvements 1,483,386 1,318,805 5,819,375 5,023,109 Accumulated Depreciation (1,153,886 ) (888,019 ) $ 4,665,489 $ 4,135,090

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Nov. 30, 2018
Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	As of November 30, 2018 As of August 31, 2018 Weighted Average Estimated Gross Gross Useful Carrying Accumulated Net Carrying Accumulated Net Description Life Value Amortization Amount Value Amortization Amount Domain name 5 years $ 9,321 $ (943 ) $ 8,378 $ 598,605 $ (166,530 ) $ 432,075 Trade name 6 years 2,600,000 (686,111 ) 1,913,889 2,600,000 (577,778 ) 2,022,222 Non-compete agreement 4 years 2,370,000 (470,167 ) 1,899,833 2,370,000 (336,882 ) 2,033,118 $ 4,979,321 $ (1,157,221 ) $ 3,822,100 $ 5,568,605 $ (1,081,190 ) $ 4,487,415
Schedule of remaining amortization expense associated with finite lived intangible assets	Intangible Assets 2019 (Remaining nine months) $ 710,966 2020 947,954 2021 881,288 2022 747,955 2023 528,511 Thereafter 5,426 $ 3,822,100

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Nov. 30, 2018
Accrued Liabilities and Other Liabilities [Abstract]
Schedule of accrued liabilities	November 30, August 31, 2018 2018 Customer deposits $ 1,795,890 $ 768,908 Accrued compensation 1,391,855 992,747 Sales tax payable 415,928 432,491 Other accrued expenses 798,503 544,284 $ 4,402,176 $ 2,738,430

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Nov. 30, 2018
Debt Disclosure [Abstract]
Schedule of notes payable	Principal Due (Unaudited) 2019 (Remaining nine months) $ 88,971 2020 116,297 2021 110,728 2022 112,767 2023 27,104 $ 455,867

WARRANT LIABILITY (Tables)

WARRANT LIABILITY (Tables)	3 Months Ended
	Nov. 30, 2018
Warrant Liabilities [Abstract]
Schedule of estimated fair value of the warrants	November 30, August 31, 2018 2018 Stock price volatility 86.3% 78.1% - 81.1% Risk-free interest rates 2.83% 2.72% - 2.74% Annual dividend yield 0% 0% Term 4.5 3.8 - 4.0

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Nov. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of fair value of financial instruments	Fair Value at November 30, 2018 Total Level 1 Level 2 Level 3 Assets: Equity investment $ 2,326,884 $ - $ 2,326,884 $ - Liabilities: Contingent cash consideration payable $ 672,849 $ - $ - $ 672,849 Warrant liability 14,646,000 14,646,000 Total liabilities $ 15,318,849 $ - $ - $ 15,318,849 Fair Value at August 31, 2018 Total Level 1 Level 2 Level 3 Liabilities: Contingent cash consideration payable $ 754,955 $ - $ - $ 754,955 Warrant liability 14,430,000 - - 14,430,000 Total liabilities $ 15,184,955 $ - $ - $ 15,184,955
Schedule of fair value investment in smoke cartel	I nvestment in Smoke Cartel Balance at August 31, 2018 $ - Acquisition of equity investment 1,790,884 Adjustment to fair value 536,000 Balance at November 30, 2018 $ 2,326,884
Schedule of warrant derivative liability	Warrant Liability Balance at August 31, 2018 $ 14,430,000 Adjustment to fair value 216,000 Balance at November 30, 2018 $ 14,646,000
Schedule of contingent consideration measured at fair value	Contingent Consideration Balance at August 31, 2018 $ 754,955 Contingent consideration payments (82,106 ) Balance at November 30, 2018 $ 672,849

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Nov. 30, 2018
Stockholders' Equity Note [Abstract]
Schedule of assumptions used	November 30, November 30, 2018 2017 Expected term in years 3 1-4 Expected volatility 82% - 87% 60% Risk-free interest rate 2.70% - 3.01% 1.14% - 1.97% Expected dividend yield 0% 0%
Schedule of stock option activity	Weighted Weighted Average Average Remaining Aggregate Stock Exercise Contractual Intrinsic Options Price Term (in years) Value Balance Outstanding, August 31, 2018 9,367,693 $ 3.85 9.1 $ 14,463,235 Granted 2,494,500 $ 5.61 9.8 664,750 Exercised (287,499 ) $ 0.29 - - Forfeited (736,947 ) $ 3.85 - - Balance Outstanding, November 30, 2018 10,837,747 $ 4.35 9.3 $ 15,671,112 Exercisable, November 30, 2018 2,814,806 $ 2.78 8.0 $ 7,212,336

NATURE OF BUSINESS AND SIGNIF_4

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Calculation of basic and diluted earnings per share (Details) - USD ($)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Accounting Policies [Abstract]
Net income (loss)	$ (8,185,050)	$ 94,615
Weighted average common shares outstanding:
Basic (in shares)	78,470,987	59,194,323
Net effect of dilutive options (in shares)	0	1,973,085
Net effect of contingent equity consideration (in shares)	0	4,740,960
Diluted (in shares)	78,470,987	65,908,368
Earnings per share:
Basic (in dollars per share)	$ (0.10)	$ 0
Diluted (in dollars per share)	$ (0.10)	$ 0

NATURE OF BUSINESS AND SIGNIF_5

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Summary of revenue of product sales (Details 1) - USD ($)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Product Information [Line Items]
Total Net Revenue	$ 25,319,642	$ 8,847,115
Manufacturing
Product Information [Line Items]
Total Net Revenue	24,859,952	8,732,882
Services
Product Information [Line Items]
Total Net Revenue	$ 459,690	$ 114,233

NATURE OF BUSINESS AND SIGNIF_6

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Allowance for doubtful accounts	$ 1,535,165		$ 999,752
Inventory finished goods	17,373,565		11,813,755
Prepaid inventory	16,680,000		$ 11,019,000
Discounts provided to customers of transaction price and as a reduction to revenue	312,292	$ 53,824
Advertising costs	$ 492,583	$ 107,924

ACQUISITION OF SUMMIT INNOVAT_2

ACQUISITION OF SUMMIT INNOVATIONS, LLC (Detail Textuals) - ACQUISITION OF SUMMIT INNOVATIONS, LLC	May 02, 2018USD ($)shares
Business Acquisition [Line Items]
Cash consideration, aggregated in cash | $	$ 905,231
Cash held back | $	$ 187,849
Share consideration held back period	15 months
Fair value of shares issued for purchase consideration | $	$ 3,577,600
Common Stock
Business Acquisition [Line Items]
Company stock (in shares) | shares	640,000
Number of shares issued for purchase consideration (in shares) | shares	640,000
Common Stock | Earn-out Consideration
Business Acquisition [Line Items]
Maximum earn out consideration of common stock shares to be entitled to members | shares	1,280,000

ACQUISITION OF THE HYBRID CRE_2

ACQUISITION OF THE HYBRID CREATIVE, LLC (Detail Textuals) - USD ($)	Jul. 11, 2018	Nov. 30, 2018	Aug. 31, 2018
Business Acquisition [Line Items]
Contingent earn out consideration realized		$ 672,849	$ 754,955
ACQUISITION OF HYBRID CREATIVE, LLC
Business Acquisition [Line Items]
Cash consideration, aggregated in cash	$ 847,187
Cash held back	$ 82,106
Aggregate shares common stock (in shares)	360,000
ACQUISITION OF HYBRID CREATIVE, LLC | Earn-out Consideration
Business Acquisition [Line Items]
Contingent earn out consideration realized	$ 1,370,000

CONCENTRATIONS OF RISK (Detail

CONCENTRATIONS OF RISK (Detail Textuals)	3 Months Ended
	Nov. 30, 2018VendorCustomer	Nov. 30, 2017VendorCustomer
Purchase | Supplier Concentration Risk
Concentration Risk [Line Items]
Number of vendors | Vendor	1	2
Concentration risk description	one vendor accounted for approximately 56% of total inventory purchases	two vendors accounted for approximately 30% and 13%, respectively, of total inventory purchases
Concentration risk, percentage	56.00%
Purchase | Supplier Concentration Risk | Vendor 1
Concentration Risk [Line Items]
Concentration risk, percentage		30.00%
Purchase | Supplier Concentration Risk | Vendor 2
Concentration Risk [Line Items]
Concentration risk, percentage		13.00%
Revenue | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk description	one customer which represented over 10% of the Company's revenues	one customer which represented over 10% of the Company's revenues
Concentration risk, percentage	10.00%	10.00%
Number of customer	1	1
Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk description	one customer who represented 16% of accounts receivable	two customers who represented 26% of accounts receivable
Concentration risk, percentage	16.00%	26.00%
Number of customer	1	2

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Detail Textuals) - USD ($)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Related Party Transactions [Abstract]
Related party transaction ownership percentage	greater than 5% stockholder
Rent payment to related parties	$ 0	$ 53,660

SALE OF RUB (Details)

SALE OF RUB (Details) - USD ($)	1 Months Ended	3 Months Ended
	Sep. 21, 2018	Nov. 30, 2018
Product Information [Line Items]
Gain on disposition of assets		$ 1,254,414
Smoke Cartel, Inc.
Product Information [Line Items]
Fair value of Smoke Cartel as of September 21, 2018	$ 1,790,884
RUB web domain and inventory sold	(536,470)
Gain on disposition of assets	$ 1,254,414

SALE OF RUB (Detail Textuals)

SALE OF RUB (Detail Textuals)	1 Months Ended
	Sep. 21, 2018shares
Smoke Cartel, Inc.
Product Information [Line Items]
Common stock issued for consideration to sell web domain and inventory related to Roll-uh-Bowl ("RUB") product line	1,410,145

PROPERTY AND EQUIPMENT - Major

PROPERTY AND EQUIPMENT - Major classes of fixed assets (Details) - USD ($)	Nov. 30, 2018	Aug. 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 5,819,375	$ 5,023,109
Accumulated Depreciation	(1,153,886)	(888,019)
Property, plant and equipment, net	4,665,489	4,135,090
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	3,138,820	2,937,784
Vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	621,350	380,893
Office Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	575,819	385,627
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,483,386	$ 1,318,805

PROPERTY AND EQUIPMENT (Detail

PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 5,819,375		$ 5,023,109
Depreciation expense	265,867	$ 55,472
Construction in progress	330,115		0
Selling, general and administrative expense
Property, Plant and Equipment [Line Items]
Depreciation expense	162,959	13,696
Cost of goods sold
Property, Plant and Equipment [Line Items]
Depreciation expense	102,908	$ 41,776
Vehicles
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	621,350		$ 380,893
Capital leased assets	$ 240,440

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Details) - USD ($)	3 Months Ended
	Nov. 30, 2018	Aug. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 4,979,321	$ 5,568,605
Accumulated Amortization	(1,157,221)	(1,081,190)
Net Amount	$ 3,822,100	4,487,415
Domain name
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average estimated useful life	5 years
Gross Carrying Value	$ 9,321	598,605
Accumulated Amortization	(943)	(166,530)
Net Amount	$ 8,378	432,075
Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average estimated useful life	6 years
Gross Carrying Value	$ 2,600,000	2,600,000
Accumulated Amortization	(686,111)	(577,778)
Net Amount	$ 1,913,889	2,022,222
Non-compete agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average estimated useful life	4 years
Gross Carrying Value	$ 2,370,000	2,370,000
Accumulated Amortization	(470,167)	(336,882)
Net Amount	$ 1,899,833	$ 2,033,118

INTANGIBLE ASSETS AND GOODWIL_2

INTANGIBLE ASSETS AND GOODWILL (Details 1) - USD ($)	Nov. 30, 2018	Aug. 31, 2018
Year ended August 31,
2019 (Remaining nine months)	$ 710,966
2,020	947,954
2,021	881,288
2,022	747,955
2,023	528,511
Thereafter	5,426
Amortization expense	$ 3,822,100	$ 4,487,415

INTANGIBLE ASSETS AND GOODWIL_3

INTANGIBLE ASSETS AND GOODWILL (Detail Textuals) - USD ($)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 242,995	$ 188,118

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Nov. 30, 2018	Aug. 31, 2018
Accrued Liabilities And Other Liabilities Current [Abstract]
Customer deposits	$ 1,795,890	$ 768,908
Accrued compensation	1,391,855	992,747
Sales tax payable	415,928	432,491
Other accrued expenses	798,503	544,284
Accrued expenses and other current liabilities	$ 4,402,176	$ 2,738,430

NOTES PAYABLE - Automobile Cont

NOTES PAYABLE - Automobile Contracts Payable (Details)	Nov. 30, 2018USD ($)
Debt Disclosure [Abstract]
2019 (Remaining nine months)	$ 88,971
2,020	116,297
2,021	110,728
2,022	112,767
2,023	27,104
Total	$ 455,867

NOTES PAYABLE (Detail Textuals)

NOTES PAYABLE (Detail Textuals)	Nov. 30, 2018
Loans and automobile contract
Debt Instrument [Line Items]
Average interest rate	4.00%

LOAN AGREEMENT (Detail Textuals

LOAN AGREEMENT (Detail Textuals) - USD ($)	Nov. 09, 2018	Mar. 08, 2018	Nov. 06, 2017	Nov. 30, 2018	Nov. 30, 2017
Line of Credit Facility [Line Items]
Drawdown on line of credit				$ 30,326,556	$ 1,500,000
Payments on line of credit				24,516,048
Fair value of amount outstanding				$ 6,728,632
Loan and Security Agreement (the "Loan Agreement") | Kim International Corporation | Gerber Finance Inc., as lender ("Gerber") | Secured revolving credit facility (the "Revolving Line")
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 8,000,000	$ 4,000,000	$ 2,000,000
Percentage of threshold maximum borrowing capacity			85.00%
Maturity date			Nov. 6, 2019
Margin added in interest rate			3.00%
Letters of credit, maximum percentage of inventory	25.00%	40.00%
Letters of credit, maximum percentage of inventory increasing upon receipt of certain landlord waivers	40.00%
Letters of credit, maximum percentage of accounts receivable	50.00%	50.00%

CONTINGENT CASH CONSIDERATION (

CONTINGENT CASH CONSIDERATION (Detail Textuals) - USD ($)	Nov. 30, 2018	Aug. 31, 2018
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	$ 672,849	$ 754,955
Acquisition of Summit Innovations, LLC
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	187,849	187,849
Acquisition Of The Hybrid Creative, Llc
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	$ 485,000	$ 532,106

WARRANT LIABILITY (Details)

WARRANT LIABILITY (Details)	Nov. 30, 2018	Aug. 31, 2018
Stock price volatility
Credit Derivatives [Line Items]
Measurement input	86.3
Stock price volatility | Maximum
Credit Derivatives [Line Items]
Measurement input		81.1
Stock price volatility | Minimum
Credit Derivatives [Line Items]
Measurement input		78.1
Risk-free interest rates
Credit Derivatives [Line Items]
Measurement input	2.83
Risk-free interest rates | Maximum
Credit Derivatives [Line Items]
Measurement input		2.74
Risk-free interest rates | Minimum
Credit Derivatives [Line Items]
Measurement input		2.72
Annual dividend yield
Credit Derivatives [Line Items]
Measurement input	0	0
Expected term (years)
Credit Derivatives [Line Items]
Term of outstanding warrant liabilities	4 years 6 months
Expected term (years) | Maximum
Credit Derivatives [Line Items]
Term of outstanding warrant liabilities		4 years
Expected term (years) | Minimum
Credit Derivatives [Line Items]
Term of outstanding warrant liabilities		3 years 9 months 18 days

WARRANT LIABILITY (Detail Textu

WARRANT LIABILITY (Detail Textuals) - Derivative [Member] - USD ($)	3 Months Ended
	Nov. 30, 2018	Aug. 31, 2018	Jun. 30, 2018
Credit Derivatives [Line Items]
Number of warrants issued			3,750,000
Term of outstanding warrant liabilities			5 years
Estimated fair value of outstanding warrant liabilities	$ 14,646,000	$ 14,430,000	$ 15,350,000
Changes in derivative liability	$ 216,000

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Recurring - USD ($)	Nov. 30, 2018	Aug. 31, 2018
Assets:
Equity investment	$ 2,326,884
Liabilities
Contingent cash consideration payable	672,849	$ 754,955
Warrant liability	14,646,000	14,430,000
Total liabilities	15,318,849	15,184,955
Level 1
Assets:
Equity investment	0
Liabilities
Contingent cash consideration payable	0	0
Warrant liability		0
Total liabilities	0	0
Level 2
Assets:
Equity investment	2,326,884
Liabilities
Contingent cash consideration payable	0	0
Warrant liability		0
Total liabilities	0	0
Level 3
Assets:
Equity investment	0
Liabilities
Contingent cash consideration payable	672,849	754,955
Warrant liability	14,646,000	14,430,000
Total liabilities	$ 15,318,849	$ 15,184,955

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - Level 2 - Smoke Cartel, Inc.	3 Months Ended
	Nov. 30, 2018USD ($)
Investment in Smoke Cartel
Balance at August 31, 2018	$ 0
Acquisition of equity investment	1,790,884
Adjustment to fair value	536,000
Balance at November 30, 2018	$ 2,326,884

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2)	3 Months Ended
	Nov. 30, 2018USD ($)
Warrant Liability
Balance at August 31, 2018	$ 14,430,000
Adjustment to fair value	216,000
Balance at November 30, 2018	$ 14,646,000

FAIR VALUE OF FINANCIAL INSTR_6

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 3) - USD ($)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Contingent Consideration
Balance at August 31, 2018	$ 754,955
Contingent consideration payments	(82,106)	$ (85,000)
Balance at November 30, 2018	$ 672,849

FAIR VALUE OF FINANCIAL INSTR_7

FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail Textuals)	1 Months Ended	3 Months Ended
	Sep. 21, 2018shares	Nov. 30, 2018USD ($)	Nov. 30, 2017USD ($)	Aug. 31, 2018
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Adjustment to the fair value of contingent consideration | $		$ 0	$ 0
Smoke Cartel, Inc.
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Common stock issued for consideration to sell a web domain and inventory related to the Company's Roll-uh-Bowl ("RUB") product line | shares	1,410,145
Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Weighted-average of discount rates (in percent)		17		17

STOCKHOLDERS' EQUITY - Schedule

STOCKHOLDERS' EQUITY - Schedule of assumptions used (Details)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years	3 years
Expected volatility		60.00%
Expected dividend yield	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years		1 year
Expected volatility	82.00%
Risk-free interest rate	2.70%	1.14%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years		4 years
Expected volatility	87.00%
Risk-free interest rate	3.01%	1.97%

STOCKHOLDERS' EQUITY - Stock op

STOCKHOLDERS' EQUITY - Stock option activity (Details 1) - USD ($)	3 Months Ended		12 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018
Stock Options
Balance Outstanding	9,367,693
Granted	2,494,500
Exercised	(287,499)
Forfeited	(736,947)
Balance Outstanding	10,837,747		9,367,693
Exercisable	2,814,806
Weighted Average Exercise Price
Balance Outstanding	$ 3.85
Granted	5.61
Exercised	0.29
Forfeited	3.85
Balance Outstanding	4.35		$ 3.85
Exercisable	$ 2.78
Weighted Average Remaining Contractual Term Outstanding	9 years 3 months 18 days	9 years 1 month 6 days	9 years 1 month 6 days
Weighted Average Remaining Contractual Term Granted	9 years 9 months 18 days	9 years 9 months 18 days
Weighted Average Remaining Contractual Term Exercisable	8 years
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Balance Outstanding	$ 14,463,235
Aggregate Intrinsic Value Granted	664,750
Aggregate Intrinsic Value Exercised	0
Aggregate Intrinsic Value Forfeited	0
Aggregate Intrinsic Value, Balance Outstanding	15,671,112		$ 14,463,235
Aggregate Intrinsic Value Exercisable	$ 7,212,336

STOCKHOLDERS' EQUITY (Detail Te

STOCKHOLDERS' EQUITY (Detail Textuals) - USD ($)	3 Months Ended
	Nov. 30, 2017	Nov. 30, 2018	Aug. 31, 2018
Stockholders Equity [Line Items]
Preferred stock, shares authorized		10,000,000	10,000,000
Preferred stock, par value (in dollars per share)		$ 0.001	$ 0.001
Preferred stock, shares issued		0	0
Preferred stock, shares outstanding		0	0
Common stock, shares authorized		265,000,000	265,000,000
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001
Common stock, shares issued		78,558,571	78,273,124
Common stock, shares outstanding		78,558,571	78,273,124
Common Stock
Stockholders Equity [Line Items]
Number of stock issued to investor in exchange for cash	1,367,172
Value of stock issued to investor in exchange for cash	$ 2,045,505
Amount of cash received in advance	$ 2,564,050
Number of shares issued for cash collected in advance	1,709,366

STOCKHOLDERS' EQUITY (Detail _2

STOCKHOLDERS' EQUITY (Detail Textuals 1) - USD ($)	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total value of stock issued to consultants for services rendered and prepaid services	$ 2,296,926	$ 268,108
Stock compensation expense	1,808,969	381,743
Services prepaid for common stock	703,832	34,077
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total value of stock issued to consultants for services rendered and prepaid services	$ 4	$ 27
Number of shares issued to consultants for services rendered	4,476	27,231
Common Stock | Consultant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of stock issued to consultants for services rendered	$ 124,098	$ 20,000
Total value of stock issued to consultants for services rendered and prepaid services	827,930	54,077
Services prepaid for common stock	703,832	34,077
Total fair value of shares vested	$ 1,468,996	$ 214,031
Number of shares issued to consultants for services rendered	4,476	27,231

STOCKHOLDERS' EQUITY (Detail _3

STOCKHOLDERS' EQUITY (Detail Textuals 2) - USD ($)	3 Months Ended		12 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual term	9 years 3 months 18 days	9 years 1 month 6 days	9 years 1 month 6 days
Number of shares issued	2,494,500
Weighted-average grant-date fair value of options granted	$ 3.10	$ 2.25
Weighted-average grant-date fair value of options forfeited	$ 2.01
Value of common shares issued on exercise of option	$ 41,501
2016 Stock Incentive Plan (the Plan)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued	15,000,000
Share-based payment award vesting period	3 years
Weighted average remaining contractual term	10 years
Number of shares issued	2,494,500	960,500
Unrecognized compensation cost related to non-vested share	$ 17,836,723
Weighted-average period, cost expected to be recognized	1 year 3 months 18 days
Additional number of shares issued		4,709
Cashless exercise of stock options	20,831	10,000
Number of common shares issued on exercise of option	266,667	18,748
Value of common shares issued on exercise of option	$ 41,501

SUBSEQUENT EVENTS (Detail Textu

SUBSEQUENT EVENTS (Detail Textuals) - Subsequent Event - Private placement	1 Months Ended
	Jan. 04, 2019USD ($)shares
Subsequent Event [Line Items]
Number of shares sold for aggregate gross proceeds | shares	2,307,141
Aggregate gross proceeds | $	$ 9,468,394