Artelo Biosciences (ARTL) 10-Q 14 Jan 20 2020 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Nov. 30, 2019	Jan. 14, 2020
Document And Entity Information [Abstract]
Entity Registrant Name	ARTELO BIOSCIENCES, INC.
Entity Central Index Key	0001621221
Trading Symbol	ARTL
Security Exchange Name	NASDAQ
Title of 12(b) Security	Common Stock, $0.001 par value
Current Fiscal Year End Date	--08-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		3,427,399
Document Type	10-Q
Document Period End Date	Nov. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Interactive Data Current	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Nov. 30, 2019	Aug. 31, 2019
Current Assets
Cash and cash equivalents	$ 3,374,683	$ 4,423,965
Prepaid expenses	86,133	8,336
Deposits	1,500	1,500
Other receivable	45,587	8,787
Total Current Assets	3,507,903	4,442,588
Equipment, net of accumulated depreciation of $886 and $792, respectively	598	721
Intangible asset	2,039,417	2,039,417
TOTAL ASSETS	5,547,918	6,482,726
Current Liabilities
Accounts payable and accrued liabilities	574,530	348,863
Due to related parties	10,024	3,732
Derivative liability		29,501
Stock payable		639,417
Total Current Liabilities	584,554	1,021,513
STOCKHOLDERS' EQUITY
Preferred Stock, par value $0.001, 6,250,000 shares authorized, 0 and 0 shares issued and outstanding, respectively
Common Stock, par value $0.001, 18,750,000 shares authorized, 3,426,276 and 3,353,616 shares issued and outstanding, respectively	3,426	3,354
Additional paid-in capital	11,070,517	10,278,421
Accumulated deficit	(6,117,117)	(4,810,756)
Accumulated other comprehensive loss	6,538	(9,806)
Total Stockholders' Equity	4,963,364	5,461,213
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 5,547,918	$ 6,482,726

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Nov. 30, 2019	Aug. 31, 2019
Statement of Financial Position [Abstract]
Accumulated depreciation on equipment (in dollars)	$ 886	$ 792
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	6,250,000	6,250,000
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	18,750,000	18,750,000
Common stock, shares issued	3,426,276	3,353,616
Common stock, shares outstanding	3,426,276	3,353,616

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
OPERATING EXPENSES
General and administrative	$ 403,159	$ 205,501
Professional fees	266,227	167,293
Research and development	666,938	184,039
Depreciation	124	70
Total Operating Expenses	1,336,448	556,903
Loss from Operations	(1,336,448)	(556,903)
OTHER INCOME (EXPENSE)
Other income	586
Change in fair value of derivative liabilities	29,501
Total other income	30,087
NET LOSS	(1,306,361)	(556,903)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustments	16,344	4,888
Total Other Comprehensive Income (Loss)	16,344	4,888
TOTAL COMPREHENSIVE LOSS	$ (1,290,017)	$ (552,015)
Basic Loss per Common Share (in dollars per share)	$ (0.39)	$ (0.32)
Diluted Loss per Common Share (in dollars per share)	$ (0.40)	$ (0.32)
Basic Weighted Average Common Shares Outstanding (in shares)	3,361,601	1,754,494
Diluted Weighted Average Common Shares Outstanding (in shares)	3,379,000	1,754,494

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Common Stock	Additional paid-in capital	Accumulated Deficit	Accumulated Other Comprehensive Income (loss)	Total
Balances at Aug. 31, 2018	$ 1,750	$ 2,514,136	$ (12,280)	$ (2,638,580)	$ (134,974)
Balances (in shares) at Aug. 31, 2018	1,750,268
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued for cash	$ 29	170,745			170,774
Common shares issued for cash (in shares)	29,300
Common shares issued for services - officers		13,000			13,000
Stock option granted for services		28,051			28,051
Net loss for the period				(556,903)	(556,903)
Foreign currency translation adjustments			4,888		4,888
Balances at Nov. 30, 2018	$ 1,779	2,725,932	(7,392)	(3,195,483)	(475,164)
Balances (in shares) at Nov. 30, 2018	1,779,568
Balances at Aug. 31, 2018	$ 1,750	2,514,136	(12,280)	(2,638,580)	(134,974)
Balances (in shares) at Aug. 31, 2018	1,750,268
Balances at Aug. 31, 2019	$ 3,354	10,278,421	(9,806)	(4,810,756)	$ 5,461,213
Balances (in shares) at Aug. 31, 2019	3,353,616				3,353,616
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issuance costs		(15,151)			$ (15,151)
Common shares issued for cash (in shares)	72,660
Common shares issued for services - officers		13,000			13,000
Common shares issued for acquisition of license	$ 61	539,356			539,417
Common shares issued for acquisition of license (in shares)	61,297
Common shares issued for settlement of debt	$ 11	99,989			100,000
Common shares issued for settlement of debt (in shares)	11,363
Refund for fractional stock		(117)			(117)
Stock option expense		155,019			155,019
Net loss for the period				(1,306,361)	(1,306,361)
Foreign currency translation adjustments			16,344		16,344
Balances at Nov. 30, 2019	$ 3,426	$ 11,070,517	$ 6,538	$ (6,117,117)	$ 4,963,364
Balances (in shares) at Nov. 30, 2019	3,426,276				3,426,276

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,306,361)	$ (556,903)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	168,019	41,051
Depreciation	124	70
Change in fair value of derivative liabilities	(29,501)
Changes in operating assets and liabilities:
Prepaid expenses	(77,797)	(9,462)
Other receivable	(36,800)	18,665
Accounts payable and accrued liabilities	230,667	105,427
Net cash used in operating activities	(1,051,649)	(401,152)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common shares for cash		170,774
Common stock issuance costs	(15,151)
Refund for fractional stock	(117)
Advance from related parties	4,334	3,686
Repayments to related parties	(3,040)	(558)
Net cash provided by financing activities	(13,974)	173,902
Effects on changes in foreign exchange rate	16,341	4,900
Net decrease in cash and cash equivalents	(1,049,282)	(222,350)
Cash and cash equivalents - beginning of period	4,423,965	337,424
Cash and cash equivalents - end of period	3,374,683	115,074
Supplemental Cash Flow
Cash paid for interest	0	0
Cash paid for income taxes	0	$ 0
Non-cash financing and investing activities:
Common shares issued for acquisition of license offset against stock payable	539,417
Common shares issued for settlement of stock payable	$ 100,000

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	3 Months Ended
	Nov. 30, 2019
Organization And Description Of Business [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS ARTELO BIOSCIENCES, INC. (“we”, “us”, “our”, the “Company”) is a Nevada corporation incorporated on May 2, 2011. It is based in San Diego County, California. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, and the Company’s fiscal year end is August 31. Effective on February 10, 2017, the Company changed its name from “KNIGHT KNOX DEVELOPMENT CORP.,” to “REACTIVE MEDICAL INC.” On April 14, 2017, the Company changed its name from “REACTIVE MEDICAL INC.” to “ARTELO BIOSCIENCES, INC.” The Company registered fully owned subsidiaries in Ireland, Trinity Reliant Ventures Limited, on November 11, 2016 and in the UK, Trinity Research & Development Limited, on June 2, 2017. Operations in the subsidiaries have been consolidated in the financial statements. The Company intends to license, develop and commercialize novel cannabinoid therapeutic treatments. To date, the Company’s activities have been limited to its formation and the raising of equity capital. Reverse stock split The Company filed a Certificate of Change with the Secretary of State of Nevada, pursuant to which, effective on June 20, 2019, the Company effected a one-for-eight reverse split of its authorized and issued and outstanding common stock (the “Reverse Stock Split”). The number of authorized shares of common stock was reduced from 150,000,000 to 18,750,000. The Company’s authorized Preferred Stock was reduced from 50,000,000 to 6,250,000. All share and per share information in these financial statements retroactively reflect this reverse stock split.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Nov. 30, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company prepares its financial statements in accordance with rules and regulations of the Securities and Exchange Commission (“SEC”) and GAAP in the United States of America. The accompanying interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information in accordance with Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the Company’s opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended November 30, 2019 are not necessarily indicative of the results for the full year. While management of the Company believes that the disclosures presented herein are adequate and not misleading, these interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the year ended August 31, 2019 contained in the Company’s Form 10-K filed on November 25, 2019. Basis of Consolidation The financial statements have been prepared on a consolidated basis, with the Company’s wholly-owned subsidiaries, Trinity Reliant Ventures Limited, and Trinity Research & Development Limited. Operating Leases The Company determines if an arrangement is a lease at inception in accordance with ASC 842 - Leases . Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our balance sheets. As all of the Company’s leases are month to month, no ROU nor operating lease liabilities have been recorded as of November 30, 2019. The new accounting standards related to ASC – 842 were effective for the Company on November 1, 2019. Adoption of the standard did not have any impact on the Company due to the month to month nature of the Company’s existing leases. Loss per share Loss per share is calculated based upon Net Loss of $1,306,361 and the weighted average number of common shares outstanding of 3,361,601.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Nov. 30, 2019
Going Concern [Abstract]
GOING CONCERN	NOTE 3 - GOING CONCERN The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not established any revenue to cover its operating cost, and requires additional capital to continue its operating plan. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about its ability to continue as a going concern. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan to obtain such resources for the Company includes: sales of equity instruments; traditional financing, such as loans; and obtaining capital from management and significant stockholders sufficient to meet its minimal operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. During the three months ended November 30, 2019, the Company had a net loss of $1,306,361. As of November 30, 2019, the Company had an accumulated deficit of $6,117,117 and has earned no revenues. The Company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for future periods.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Nov. 30, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 4 - RELATED PARTY TRANSACTIONS During the three months ended November 30, 2019, the president of the Company incurred $300 $4,032 and $3,732, respectively. During the three months ended November 30, 2019, the former President, and current Senior Vice President, European Operations, who is a major shareholder, paid for expenses on behalf of the Company for a total of $4,034. $3,040 was $992 and $0, respectively. During the three months ended November 30, 2019, a company owned by the Senior Vice President, European Operations, who is a major shareholder, provided consulting services for $19,000

INTANGIBLE ASSET

INTANGIBLE ASSET	3 Months Ended
	Nov. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSET	NOTE 5 – INTANGIBLE ASSET During the year ended August 31, 2019, the Company made a $1,500,000 payment and recorded stock payable of 61,297 shares of common stock, valued at $539,417 for the exercise of an option for an exclusive worldwide license to develop and commercialize products comprising or containing the compound NEO1940. During the three months ended November 30, 2019, the Company issued 61,297 shares of common stock (Note 6). The Company has capitalized the costs associated with acquiring the worldwide license as an intangible asset at a value of $2,039,417 as of November 30, 2019 and August 31, 2019. During the quarter ended November 30, 2019, no subsequent costs incurred met the criteria for capitalization as an intangible asset.

EQUITY

EQUITY	3 Months Ended
	Nov. 30, 2019
Equity [Abstract]
EQUITY	NOTE 6 - EQUITY Preferred shares The Company has authorized 6,250,000 shares of preferred stock with a par value of $0.001 per share. During the three months ended November 30, 2019, there were no issuances of preferred stock. Common Shares The Company has authorized 18,750,000 shares of common stock with a par value of $0.001 per share. Each share of common stock entitles the holder to one vote, in person or proxy, on any matter on which an action of the stockholders of the Company is sought. During the three months ended November 30, 2019, the Company issued 72,660 shares of common stock as follows: • 61,297 shares of common stock were issued for the exercise of an option for an exclusive worldwide license to develop and commercialize products comprising or containing the compound NEO1940 • 11,363 $100,000 During the three months ended November 30, 2019, the Company recorded $13,000 of stock compensation expense for five members of the Company’s Board of Directors. The unamortized value of the stock-based compensation as of November 30, 2019 is $82,833. Warrants A summary of activity during the three months ended November 30, 2019 follows: Weighted Weighted Number of Average Average shares Exercise Price Life (years) Outstanding, August 31, 2019 2,334,937 $ 8.15 4.14 Granted — — — Forfeited — — — Exercised — — — Outstanding, November 30, 2019 2,334,937 $ 8.15 3.89 The intrinsic value of the warrants as of November 30, 2019 is $0. All of the outstanding warrants are exercisable as of November 30, 2019. Stock Options During the three months ended November 30, 2019, $155,019 was expensed, and as of November 30, 2019, $482,847 remains unamortized. The intrinsic value of the 234,000 options as of November 30, 2019 is $81,312, and the weighted average value of the remaining life of the options is 9.53 years. The following is a summary of stock option activity during the three months ended November 30, 2019: Options Outstanding Number of Weighted Average Weighted Average Options Exercise Price Remaining life (years) Outstanding, August 31, 2019 234,000 $ 3.88 $ 9.78 Granted — — — Exercised — — — Forfeited/canceled — — — Outstanding, November 30, 2019 234,000 $ 3.88 $ 9.53 The following table summarizes information relating to exercisable stock options as of November 30, 2019: Options Outstanding Options Exercisable Number of Weighted Average Remaining Weighted Average Number of Weighted Average Options Contractual life (in years) Exercise Price Shares Exercise Price 50,000 8.72 $ 10.80 25,182 $ 10.80 2,500 9.64 $ 3.12 2,500 $ 3.12 181,500 9.75 $ 1.99 4,689 $ 1.99

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Nov. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 7 – COMMITMENTS AND CONTINGENCIES The Company has certain financial commitments in relation to Research and Development contracts as of November 30, 2019, as follows: • The Company is invoiced monthly and quarterly in relation to several Research and Development contracts. • The Company may be obligated to make additional payments related to Research and Development contracts entered into, dependent on the progress and milestones achieved through the programs. • Our principal executive office is currently located at 888 Prospect Street, Suite 210, La Jolla, CA, 92037, U.S. Additionally, we have an office located at 29 Fitzwilliam Street Upper, Dublin 2 Ireland which serves as administrative space for managing our European subsidiaries: Trinity Reliant Ventures, Ltd (Ireland) and Trinity Research & Development, Ltd. (U.K.). We do not currently own any properties, laboratories, or manufacturing facilities. The leases for our office space are month-to-month.

DERIVATIVE LIABILITY AND FAIR V

DERIVATIVE LIABILITY AND FAIR VALUE MEASUREMENTS	3 Months Ended
	Nov. 30, 2019
Derivative Liability And Fair Value Measurements [Abstract]
DERIVATIVE LIABILITY AND FAIR VALUE MEASUREMENTS	NOTE 8 – DERIVATIVE LIABILITY AND FAIR VALUE MEASUREMENTS The Company recognized a derivative liability related to the purchase price protection clause associated with the Series E private offerings. Additional units would be issued to the unit holder if the Company should issue common stock or the equivalent at a share price less than $7.60. In accordance with ASC 815-10- Derivatives and Hedging we measured the derivative liability using a Monte Carlo pricing model. Accordingly, at the end of each quarterly reporting date, the derivative fair market value is re-measured and adjusted to current market value. Changes in the fair value of the warrant liability were as follows: Fair value – August 31, 2019 $ 29,501 Reclass of warrant derivative liability from equity — Change in fair value for the period of warrant derivative liability (29,501 ) Fair value –November 30, 2019 — As of November 30, 2019, there is no derivative liability associated with Series E shares as they no longer meet the criteria for price protection.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Nov. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9– SUBSEQUENT EVENTS The Company noted the following events that occurred subsequent to November 30, 2019: • 7,373 shares of common stock were issued for an additional issuance of Series D per the terms of the subscription agreements. • 6,250 shares of common stock previously issued to a director of the Company were cancelled upon resignation of the director from the company. • On December 6, 2019, the Company issued 10,000 stock options to a director of the Company. The exercise price per share is $2.65 and the stock options expire on December 6, 2020. The stock options vest 1/24th monthly over a period of two years after the grant date. • On December 6, 2019, the Company issued 40,000 stock options to a director of the Company. The exercise price per share is $2.65 and the stock options expire on December 6, 2020. The stock options vest 1/48th monthly over a period of four years after the grant date.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Nov. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company prepares its financial statements in accordance with rules and regulations of the Securities and Exchange Commission (“SEC”) and GAAP in the United States of America. The accompanying interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information in accordance with Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the Company’s opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended November 30, 2019 are not necessarily indicative of the results for the full year. While management of the Company believes that the disclosures presented herein are adequate and not misleading, these interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the year ended August 31, 2019 contained in the Company’s Form 10-K filed on November 25, 2019.
Basis of Consolidation	Basis of Consolidation The financial statements have been prepared on a consolidated basis, with the Company’s wholly-owned subsidiaries, Trinity Reliant Ventures Limited, and Trinity Research & Development Limited.
Operating Leases	Operating Leases The Company determines if an arrangement is a lease at inception in accordance with ASC 842 - Leases . Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our balance sheets. As all of the Company’s leases are month to month, no ROU nor operating lease liabilities have been recorded as of November 30, 2019. The new accounting standards related to ASC – 842 were effective for the Company on November 1, 2019. Adoption of the standard did not have any impact on the Company due to the month to month nature of the Company’s existing leases.
Loss per share	Loss per share Loss per share is calculated based upon Net Loss of $1,306,361 and the weighted average number of common shares outstanding of 3,361,601.

EQUITY (Tables)

EQUITY (Tables)	3 Months Ended
	Nov. 30, 2019
Equity [Abstract]
Summary of activity warrants outstanding	Weighted Weighted Number of Average Average shares Exercise Price Life (years) Outstanding, August 31, 2019 2,334,937 $ 8.15 4.14 Granted — — — Forfeited — — — Exercised — — — Outstanding, November 30, 2019 2,334,937 $ 8.15 3.89
Summary of stock option activity	Options Outstanding Number of Weighted Average Weighted Average Options Exercise Price Remaining life (years) Outstanding, August 31, 2019 234,000 $ 3.88 $ 9.78 Granted — — — Exercised — — — Forfeited/canceled — — — Outstanding, November 30, 2019 234,000 $ 3.88 $ 9.53
Summary of exercisable stock options outstanding	Options Outstanding Options Exercisable Number of Weighted Average Remaining Weighted Average Number of Weighted Average Options Contractual life (in years) Exercise Price Shares Exercise Price 50,000 8.72 $ 10.80 25,182 $ 10.80 2,500 9.64 $ 3.12 2,500 $ 3.12 181,500 9.75 $ 1.99 4,689 $ 1.99

DERIVATIVE LIABILITY AND FAIR_2

DERIVATIVE LIABILITY AND FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Nov. 30, 2019
Derivative Liability And Fair Value Measurements [Abstract]
Summary of fair value of warrant liability	Fair value – August 31, 2019 $ 29,501 Reclass of warrant derivative liability from equity — Change in fair value for the period of warrant derivative liability (29,501 ) Fair value –November 30, 2019 —

ORGANIZATION AND DESCRIPTION _2

ORGANIZATION AND DESCRIPTION OF BUSINESS (Detail Textuals) - shares	Nov. 30, 2019	Aug. 31, 2019	Aug. 31, 2018
Schedule Of Organization And Description Of Business [Line Items]
Common stock, shares authorized	18,750,000	18,750,000	150,000,000
Preferred stock, shares authorized	6,250,000	6,250,000	50,000,000

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($)	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Accounting Policies [Abstract]
Net loss	$ (1,306,361)	$ (556,903)
Weighted average number of common shares outstanding, basic	3,361,601	1,754,494
Change in fair value for the period of warrant derivative liability	$ 29,501
Weighted average of common shares outstanding, diluted	3,379,000	1,754,494

GOING CONCERN (Detail Textuals)

GOING CONCERN (Detail Textuals) - USD ($)	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Aug. 31, 2019
Going Concern [Abstract]
Net loss	$ (1,306,361)	$ (556,903)
Accumulated deficit	$ (6,117,117)		$ (4,810,756)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($)	3 Months Ended
	Nov. 30, 2019	Aug. 31, 2019
Related Party Transaction [Line Items]
Due to related parties	$ 10,024	$ 3,732
Former President, and current Senior Vice President, European Operations
Related Party Transaction [Line Items]
Expenses paid by related party	4,034
Due to related parties	992	0
Repayments to related party	3,040
President
Related Party Transaction [Line Items]
Expenses paid by related party	300
Due to related parties	4,032	$ 3,732
Senior Vice President, European Operations
Related Party Transaction [Line Items]
Consulting services	19,000
Consulting services outstanding	$ 5,000

INTANGIBLE ASSET (Detail Textua

INTANGIBLE ASSET (Detail Textuals) - USD ($)	12 Months Ended
	Aug. 31, 2019	Nov. 30, 2019
Indefinite-lived Intangible Assets [Line Items]
Intangible asset	$ 2,039,417	$ 2,039,417
NEO1940
Indefinite-lived Intangible Assets [Line Items]
Payments to acquire intangible assets	$ 1,500,000
Number of common stock payable recorded	61,297
Amount of stock options exercise to develop product	$ 539,417
Number of common stock issued	61,297

EQUITY (Details)

EQUITY (Details) - USD ($)	3 Months Ended	12 Months Ended
	Nov. 30, 2019	Aug. 31, 2019
Number of shares
Number of shares Outstanding	2,334,937
Number of warrant granted	0
Number of warrant forfeited	0
Number of warrant exercised	0
Number of shares Outstanding	2,334,937	2,334,937
Weighted Average Exercise Price
Weighted Average Exercise Price,Outstanding	$ 8.15
Weighted Average Exercise Price Granted	0
Weighted Average Exercise Price Forfeited	0
Weighted Average Exercise Price Exercised	0
Weighted Average Exercise Price,Outstanding	$ 8.15	$ 8.15
Weighted Average Life (years)
Weighted Average Life (years), Outstanding	3 years 10 months 20 days	4 years 1 month 20 days

EQUITY (Details 1)

EQUITY (Details 1) - $ / shares	3 Months Ended	12 Months Ended
	Nov. 30, 2019	Aug. 31, 2019
Number of Options Outstanding
Number of Options Outstanding	234,000
Number of Options Granted	0
Number of Options Exercised	0
Number of Options Forfeited/canceled	0
Number of Options Outstanding	234,000	234,000
Weighted Average Exercise Price Options Outstanding
Weighted Average Exercise Price, Outstanding	$ 3.88
Weighted Average Exercise Price, Granted	0
Weighted Average Exercise Price, Exercised	0
Weighted Average Exercise Price, Forfeited/canceled	0
Weighted Average Exercise Price, Outstanding	$ 3.88	$ 3.88
Weighted Average Remaining life (years)	9 years 6 months 10 days	9 years 9 months 10 days

EQUITY (Details 2)

EQUITY (Details 2)	3 Months Ended
	Nov. 30, 2019$ / sharesshares
50,000
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options exercisable | shares	50,000
Weighted Average Remaining Contractual life (in years)	8 years 8 months 19 days
Weighted Average Exercise Price | $ / shares	$ 10.80
Number of Shares Warrants Exercisable | shares	25,182
Warrants Exercisable Weighted Average Exercise Price | $ / shares	$ 10.80
2,500
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options exercisable | shares	2,500
Weighted Average Remaining Contractual life (in years)	9 years 7 months 20 days
Weighted Average Exercise Price | $ / shares	$ 3.12
Number of Shares Warrants Exercisable | shares	2,500
Warrants Exercisable Weighted Average Exercise Price | $ / shares	$ 3.12
181,500
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options exercisable | shares	181,500
Weighted Average Remaining Contractual life (in years)	9 years 9 months
Weighted Average Exercise Price | $ / shares	$ 1.99
Number of Shares Warrants Exercisable | shares	4,689
Warrants Exercisable Weighted Average Exercise Price | $ / shares	$ 1.99

EQUITY (Detail Textuals)

EQUITY (Detail Textuals) - USD ($)	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Aug. 31, 2019	Aug. 31, 2018
Related Party Transaction [Line Items]
Preferred stock, shares authorized	6,250,000		6,250,000	50,000,000
Preferred stock, par value (in dollars per share)	$ 0.001		$ 0.001
Preferred stock, shares issued	0		0
Common stock, shares authorized	18,750,000		18,750,000	150,000,000
Common stock, par value (in dollars per share)	$ 0.001		$ 0.001
Common stock holder voting rights	Each share of common stock entitles the holder to one vote, in person or proxy
Derivative liability			$ 29,501
Common shares issued for settlement of debt	$ 100,000
Common Stock
Related Party Transaction [Line Items]
Number of shares issued during period	72,660	29,300
Common shares issued for acquisition of license (in shares)	61,297
Common shares issued for settlement of debt	$ 11
Common shares issued for settlement of debt (in shares)	11,363

EQUITY (Detail Textuals 1)

EQUITY (Detail Textuals 1)	3 Months Ended
	Nov. 30, 2019USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	$ 13,000
Unamortized value of stock based compensation	$ 82,833
Number of shares granted during period | shares	0
Warrant intrinsic value	$ 0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	155,019
Unamortized value of stock based compensation	$ 482,847
Number of shares granted during period | shares	234,000
Intrinsic value	$ 81,312
Value of the remaining life of the options	9 years 6 months 10 days

DERIVATIVE LIABILITY AND FAIR_3

DERIVATIVE LIABILITY AND FAIR VALUE MEASUREMENTS (Details)	3 Months Ended
	Nov. 30, 2019USD ($)
Fair Value Of Warrant Liability Roll Forward
Fair value - August 31, 2019	$ 29,501
Change in fair value for the period of warrant derivative liability	29,501
Warrant liability
Fair Value Of Warrant Liability Roll Forward
Fair value - August 31, 2019	29,501
Reclass of warrant derivative liability from equity	0
Change in fair value for the period of warrant derivative liability	(29,501)
Fair value - November 30, 2019	$ 0

DERIVATIVE LIABILITY AND FAIR_4

DERIVATIVE LIABILITY AND FAIR VALUE MEASUREMENTS (Detail Textuals)	Nov. 30, 2019$ / shares
Series E offering
Derivative Liability And Fair Value Measurements [Line Items]
Share price	$ 7.60

SUBSEQUENT EVENTS (Detail Textu

SUBSEQUENT EVENTS (Detail Textuals) - $ / shares	Jan. 08, 2020	Dec. 06, 2019	Nov. 30, 2019
Subsequent Event [Line Items]
Number of stock options granted			0
Stock options
Subsequent Event [Line Items]
Number of stock options granted			234,000
Subsequent event | Director
Subsequent Event [Line Items]
Number of shares cancelled	6,250
Subsequent event | Director | Vesting period of 2 years | Stock options
Subsequent Event [Line Items]
Number of stock options granted		10,000
Stock options exercise price per share		$ 2.65
Expiration period of stock option		Dec. 6, 2020
Vesting period of stock option		2 years
Subsequent event | Director | Vesting period of 4 years | Stock options
Subsequent Event [Line Items]
Number of stock options granted		40,000
Stock options exercise price per share		$ 2.65
Expiration period of stock option		Dec. 6, 2020
Vesting period of stock option		4 years
Subsequent event | Series D
Subsequent Event [Line Items]
Number of shares issued during period	7,373