Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
May 31, 2021 | Jul. 08, 2021 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ARTELO BIOSCIENCES, INC. | |
Entity Central Index Key | 0001621221 | |
Document Transition Report | false | |
Trading Symbol | ARTL | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 24,493,982 | |
Entity Interactive Data Current | Yes | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2021 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 33-1220924 | |
Entity Address, Address Line One | 888 Prospect Street | |
Entity Address, City or Town | La Jolla | |
Entity Address, State or Province | CA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 10,052,288 | $ 2,142,072 |
Prepaid expenses other current assets | 175,472 | 195,127 |
Deferred offering costs | 72,523 | |
Total Current Assets | 10,300,283 | 2,337,199 |
Equipment, net of accumulated depreciation of $1,584 and $1,363, respectively | 63 | 246 |
Intangible asset | 2,039,417 | 2,039,417 |
TOTAL ASSETS | 12,339,763 | 4,376,862 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 418,943 | 490,218 |
Due to related party | 5,000 | 11,959 |
Total Current Liabilities | 423,943 | 502,177 |
STOCKHOLDERS' EQUITY | ||
Preferred Stock, par value $0.001, 6,250,000 shares authorized, 0 shares issued and outstanding | 0 | 0 |
Common Stock, par value $0.001, 750,000,000 shares authorized, 23,149,112 and 4,991,587 shares issued and outstanding, respectively | 23,149 | 4,992 |
Additional paid-in capital | 26,859,264 | 13,271,549 |
Accumulated deficit | (15,015,976) | (9,465,618) |
Accumulated other comprehensive income | 49,383 | 63,762 |
Total Stockholders' Equity | 11,915,820 | 3,874,685 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 12,339,763 | $ 4,376,862 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation on equipment (in dollars) | $ 1,584 | $ 1,363 |
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 | 750,000,000 | 750,000,000 |
Common stock, shares issued | 23,149,112 | 4,991,587 |
Common stock, shares outstanding | 23,149,112 | 4,991,587 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
OPERATING EXPENSES | ||||
General and administrative | $ 1,074,166 | $ 389,195 | $ 2,462,300 | $ 1,226,324 |
Professional fees | 226,042 | 303,524 | 868,293 | 785,133 |
Research and development | 951,204 | 258,676 | 2,223,540 | 1,646,920 |
Total Operating Expenses | 2,251,412 | 951,395 | 5,554,133 | 3,658,377 |
Loss from Operations | (2,251,412) | (951,395) | (5,554,133) | (3,658,377) |
OTHER INCOME | ||||
Interest income | 636 | 204 | 1,456 | 1,198 |
Net change in fair value of marketable securities | 984 | 2,319 | ||
Change in fair value of derivative liabilities | 29,501 | |||
Total other income | 1,620 | 204 | 3,775 | 30,699 |
NET LOSS | (2,249,792) | (951,191) | (5,550,358) | (3,627,678) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustments | 1,483 | 34,547 | (14,379) | 60,310 |
Total Other Comprehensive Income (Loss) | 1,483 | 34,547 | (14,379) | 60,310 |
TOTAL COMPREHENSIVE LOSS | $ (2,248,309) | $ (916,644) | $ (5,564,737) | $ (3,567,368) |
Basic and Diluted Loss per Common Share (in dollars per share) | $ (0.10) | $ (0.27) | $ (0.33) | $ (1.06) |
Basic and Diluted Weighted Average Common Shares Outstanding (in shares) | 23,111,046 | 3,466,385 | 16,784,419 | 3,418,148 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (loss) | Total |
Balances at Aug. 31, 2019 | $ 3,354 | $ 10,278,421 | $ (4,810,756) | $ (9,806) | $ 5,461,213 |
Balances (in shares) at Aug. 31, 2019 | 3,353,616 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issuance costs | (15,151) | (15,151) | |||
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 | (6,117,117) | 6,538 | 4,963,364 |
Balances (in shares) at Nov. 30, 2019 | 3,426,276 | ||||
Balances at Aug. 31, 2019 | $ 3,354 | 10,278,421 | (4,810,756) | (9,806) | 5,461,213 |
Balances (in shares) at Aug. 31, 2019 | 3,353,616 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss for the period | (3,627,678) | ||||
Foreign currency translation adjustments | 60,310 | ||||
Balances at May. 31, 2020 | $ 3,734 | 11,609,266 | (8,438,434) | 50,504 | 3,225,070 |
Balances (in shares) at May. 31, 2020 | 3,733,604 | ||||
Balances at Nov. 30, 2019 | $ 3,426 | 11,070,517 | (6,117,117) | 6,538 | 4,963,364 |
Balances (in shares) at Nov. 30, 2019 | 3,426,276 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Additional common shares issued | $ 7 | (7) | |||
Additional common shares issued (shares) | 7,373 | ||||
Common shares issued for services - officers | 10,500 | 10,500 | |||
Cancellation of common shares | $ 6 | (2,494) | (2,500) | ||
Cancellation of common shares (shares) | (6,250) | ||||
Stock option expense | 97,397 | 97,397 | |||
Net loss for the period | (1,370,126) | (1,370,126) | |||
Foreign currency translation adjustments | 9,419 | 9,419 | |||
Balances at Feb. 29, 2020 | $ 3,427 | 11,175,913 | (7,487,243) | 15,957 | 3,708,054 |
Balances (in shares) at Feb. 29, 2020 | 3,427,399 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common shares issued for cash | $ 307 | 380,371 | 380,678 | ||
Common shares issued for cash (in shares) | 306,205 | ||||
Common shares issued for services - officers | 10,500 | 10,500 | |||
Stock option expense | 42,482 | 42,482 | |||
Net loss for the period | (951,191) | (951,191) | |||
Foreign currency translation adjustments | 34,547 | 34,547 | |||
Balances at May. 31, 2020 | $ 3,734 | 11,609,266 | (8,438,434) | 50,504 | 3,225,070 |
Balances (in shares) at May. 31, 2020 | 3,733,604 | ||||
Balances at Aug. 31, 2020 | $ 4,992 | 13,271,549 | (9,465,618) | 63,762 | $ 3,874,685 |
Balances (in shares) at Aug. 31, 2020 | 4,991,587 | 4,991,587 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common shares issued for cash | $ 10,120 | 6,568,433 | $ 6,578,553 | ||
Common shares issued for cash (in shares) | 10,120,000 | ||||
Common shares issued for services - officers | 10,500 | 10,500 | |||
Stock option expense | 40,868 | 40,868 | |||
Net loss for the period | (1,434,645) | (1,434,645) | |||
Foreign currency translation adjustments | (16,235) | (16,235) | |||
Balances at Nov. 30, 2020 | $ 15,112 | 19,891,350 | (10,900,263) | 47,527 | 9,053,726 |
Balances (in shares) at Nov. 30, 2020 | 15,111,587 | ||||
Balances at Aug. 31, 2020 | $ 4,992 | 13,271,549 | (9,465,618) | 63,762 | $ 3,874,685 |
Balances (in shares) at Aug. 31, 2020 | 4,991,587 | 4,991,587 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss for the period | $ (5,550,358) | ||||
Foreign currency translation adjustments | (14,379) | ||||
Balances at May. 31, 2021 | $ 23,149 | 26,859,264 | (15,015,976) | 49,383 | $ 11,915,820 |
Balances (in shares) at May. 31, 2021 | 23,149,112 | 23,149,112 | |||
Balances at Nov. 30, 2020 | $ 15,112 | 19,891,350 | (10,900,263) | 47,527 | $ 9,053,726 |
Balances (in shares) at Nov. 30, 2020 | 15,111,587 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common shares issued for exercise of warrant | $ 7,101 | 5,319,043 | 5,326,144 | ||
Common shares issued for exercise of warrant (in shares) | 7,101,525 | ||||
Common shares issued for services - officers | 10,500 | 10,500 | |||
Stock option expense | 330,949 | 330,949 | |||
Net loss for the period | (1,865,921) | (1,865,921) | |||
Foreign currency translation adjustments | 373 | 373 | |||
Balances at Feb. 28, 2021 | $ 22,213 | 25,551,842 | (12,766,184) | 47,900 | 12,855,771 |
Balances (in shares) at Feb. 28, 2021 | 22,213,112 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common shares issued for cash | $ 16 | (16) | |||
Common shares issued for cash (in shares) | 16,000 | ||||
Common shares issued for exercise of warrant | $ 920 | 689,080 | 690,000 | ||
Common shares issued for exercise of warrant (in shares) | 920,000 | ||||
Common shares issued for services - officers | 8,667 | 8,667 | |||
Stock option expense | 609,691 | 609,691 | |||
Net loss for the period | 2,249,792 | (2,249,792) | |||
Foreign currency translation adjustments | 1,483 | 1,483 | |||
Balances at May. 31, 2021 | $ 23,149 | $ 26,859,264 | $ (15,015,976) | $ 49,383 | $ 11,915,820 |
Balances (in shares) at May. 31, 2021 | 23,149,112 | 23,149,112 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (5,550,358) | $ (3,627,678) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock based compensation | 1,011,175 | 326,398 |
Depreciation | 183 | 372 |
Net change in fair value of marketable securities | (2,319) | |
Change in fair value of derivative liabilities | (29,501) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 24,314 | (56,027) |
Accounts payable and accrued liabilities | (84,999) | (88,231) |
Net proceeds of investment in trading marketable securities | 2,319 | |
Net cash used in operating activities | (4,599,685) | (3,474,667) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of equipment | (1,176) | |
Net cash used in investing activities | (1,176) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common shares for cash | 7,614,120 | 380,678 |
Payment of common stock issuance costs | (1,108,090) | (113,866) |
Proceeds from exercise of warrants | 6,016,144 | |
Refund for fractional stock | (117) | |
Advances from related parties | 1,392 | 7,116 |
Repayments to related parties | (8,338) | (3,040) |
Net cash provided by financing activities | 12,515,228 | 270,771 |
Effect of exchange rate changes on cash | (5,327) | 60,363 |
Net change in cash and cash equivalents | 7,910,216 | (3,144,709) |
Cash and cash equivalents - beginning of period | 2,142,072 | 4,423,965 |
Cash and cash equivalents - end of period | 10,052,288 | 1,279,256 |
Supplemental Cash Flow Information | ||
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 | |
Additional issuance of Series D shares per the terms of the subscription agreements | 7 | |
Cancellation of common shares | $ 6 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
May 31, 2021 | |
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, and 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 (“GAAP”), and the Company’s fiscal year end is August 31. 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. On January 8, 2020, Trinity Research and Development Limited changed its name to Artelo Biosciences Limited. The Company incorporated a fully owned subsidiary in Canada, Artelo Biosciences Corporation, on March 18, 2020. Operations in the subsidiaries have been consolidated in the financial statements. We are a clinical stage biopharmaceutical company focused on the development of therapeutics that target lipid-signaling pathways, including the endocannabinoid system (the “ECS”), a family of receptors and neurotransmitters that form a biochemical communication network throughout the body. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
May 31, 2021 | |
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 GAAP 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 GAAP 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 nine months ended May 31, 2021 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, 2020, contained in the Company’s Form 10-K filed on November 4, 2020. Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation. Basis of Consolidation The financial statements have been prepared on a consolidated basis, with the Company’s wholly-owned subsidiaries, Trinity Reliant Ventures Limited, Artelo Biosciences Limited and Artelo Biosciences Corporation. All intercompany transactions and balances have been eliminated. Loss per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method and as if converted method. Dilutive potential common shares include outstanding stock options and warrants. For the three and nine months ended May 31, 2021 and 2020, respectively, the following common stock equivalents were excluded from the computation of diluted net loss per share as the result was anti-dilutive. May 31, 2021 2020 Stock options 2,966,934 281,834 Warrants 4,433,412 2,334,937 7,400,346 2,616,771 Covid 19 As the COVID-19 pandemic is still evolving at this time and much of its impact remains unknown, the Company is not able to predict the impact it may have on the development of its product candidates and business. The severity of the COVID-19 pandemic could also negatively impact the Company’s access to its existing supply chain by delaying the delivery of key raw materials used in its product candidates and therefore delay the delivery of such products for use in its clinical trials. Any of these results could have a material adverse impact to our business. Cash and Cash Equivalents Cash and cash equivalents include cash in banks, money market funds, commercial paper, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. Periodically, the Company may carry cash balances at financial institutions in excess of the federally insured limit of $250,000 The amount in excess of the FDIC insurance as of May 31, 2021 was approximately $9.2 million. The Company has not experienced losses on these accounts and management believes, based upon the quality of the financial institutions, that the credit risk with regard to these deposits is not significant. Marketable Securities Our investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized gains and losses on trading debt securities as well as realized gains and losses on available-for-sale debt securities are included in net income. The marketable securities previously held by the Company had matured during the three months ended May 31, 2021, and had an outstanding balance of $0 as of May 31, 2021. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
May 31, 2021 | |
Going Concern [Abstract] | |
GOING CONCERN | NOTE 3 - GOING CONCERN The Company’s financial statements are prepared using GAAP, applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. During the nine months ended May 31, 2021, the Company had a net loss of $5,550,358. As of May 31, 2021, the Company had an accumulated deficit of $15,015,976. The Company has not established any revenue to cover its operating costs and will require 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 minimum operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing this plan. 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. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
May 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 4 - RELATED PARTY TRANSACTIONS During the nine months ended May 31, 2021, the president and an officer of the Company incurred $1,392 of expenses on behalf of the Company and the Company repaid $7,248. The amount owed to this related party as of May 31, 2021 and August 31, 2020 is $0 and $5,855, respectively. The amounts are non-interest bearing and have no terms of repayment. During the nine months ended May 31, 2021, the Company repaid the Senior Vice President, European Operations, $1,090, including foreign exchange loss of $14. The amount owed to this related party as of May 31, 2021 and August 31, 2020 is $0 and $1,104, respectively. The amounts are non-interest bearing and have no terms of repayment. During the nine months ended May 31, 2021 and 2020, a company owned by the Senior Vice President, European Operations, provided consulting services worth $45,000 and $49,000, respectively of which, $5,000 was outstanding, as of May 31, 2021 and August 31, 2020. During the nine months ended May 31, 2021, the Company entered into a leasing arrangement with an entity controlled by a close family member of a director of the Company (Note 7). |
INTANGIBLE ASSET
INTANGIBLE ASSET | 9 Months Ended |
May 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSET | NOTE 5 – INTANGIBLE ASSET The Company has capitalized the costs associated with acquiring the exclusive worldwide license to develop and commercialize products comprising or containing the compound NEO1940 as an intangible asset at a value of $2,039,417 as of May 31, 2021 and August 31, 2020. The amount capitalized consisted of a $1,500,000 payment and the fair value of 61,297 shares of common stock of $539,417. During the nine months ended May 31, 2021, no additional costs met the criteria for capitalization as an intangible asset. |
EQUITY
EQUITY | 9 Months Ended |
May 31, 2021 | |
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 nine months ended May 31, 2021, there were no issuances of preferred stock. Common Shares Amendment to Articles of Incorporation or Bylaws On December 3, 2020, the Company held a special meeting of stockholders and approved an amendment of the Company’s articles of incorporation to increase the number of authorized shares of the Company’s common stock, par value $0.001, (“Common Stock”) from 18,750,000 to 750,000,000. The Company has authorized 750,000,000 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. On October 9, 2020, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with Ladenburg Thalmann & Co. Inc., as representative of the underwriters described in the Underwriting Agreement (the “Underwriter”), pursuant to which the Company issued and sold, in a firm commitment underwritten public offering by the Company (the “Public Offering”), 8,800,000 units (the “Units”), with each Unit consisting of one share of Common Stock and one warrant to purchase one share of Common Stock at an exercise price equal to $0.75 per share of Common Stock that expires on October 14, 2025 (referred to individually as a “Warrant” and collectively as the “Warrants”). Each Unit was offered to the public at an offering price of $0.75 per Unit. In addition, pursuant to the Underwriting Agreement, the Company granted the Underwriter a 45-day option (the “Overallotment Option”) to purchase up to (i) 1,320,000 additional shares of Common Stock and/or (ii) additional Warrants to purchase up to 1,320,000 additional shares of Common Stock, solely to cover over-allotments. The Overallotment Option was exercised in full on October 9, 2020. On October 14, 2020, the Public Offering closed, and the Company issued and sold (i) 10,120,000 shares of Common Stock (which includes 1,320,000 shares of Common Stock sold pursuant to the exercise of the Overallotment Option) and (ii) Warrants to purchase 10,120,000 shares of Common Stock (which includes Warrants to purchase 1,320,000 shares of Common Stock sold pursuant to the exercise of the Overallotment Option), pursuant to the Registration Statement and the Underwriting Agreement. The net proceeds to the Company, after deducting the underwriting discount and commissions and offering expenses payable by the Company, were $6,578,553. During the nine months ended May 31, 2021, the Company issued 8,021,525 shares of common stock for the exercise of warrants for proceeds of $6,016,144. During the three months ended May 31, 2021, the Company issued 16,000 shares of common stock at a price of $1.51 per share in connection with the Company’s at-the-market equity program for proceeds, net of commission fee, of $23,396. The agent of the program was entitled to compensation at a commission rate of 3.0% of the gross sales price per sold share of common stock. The Company also incurred offering costs of $95,919, of which $72,523 was recorded as deferred offering costs as of May 31, 2021. Stock based compensation During the nine months ended May 31, 2021, the Company recorded $29,667 of stock compensation expense for common stock issued to four members of the Company’s Board of Directors in 2017. The unamortized value of the stock-based compensation as of May 31, 2021 is $4,167. Warrants A summary of activity during the nine months ended May 31, 2021 follows: Weighted Number of Weighted Average Average shares Exercise Price Life (years) Outstanding, August 31, 2020 2,334,937 $ 8.12 3.30 Granted 10,120,000 0.75 5.00 Forfeited — — — Exercised (8,021,525 ) 0.75 4.68 Outstanding, May 31, 2021 4,433,412 $ 4.63 3.42 The intrinsic value of the warrants as of May 31, 2021 is $1,028,253. All of the outstanding warrants are exercisable as of May 31, 2021. Stock Options Amended and Restated 2018 Equity Incentive Plan On September 1, 2020, the Amendment and Restated 2018 Equity Plan (the “Plan”) was increased to permit the issuance of an additional 748,738 shares of common stock. On December 3, 2020, the Company held a special meeting of stockholders and approved an amendment to increase the number of shares of Common Stock reserved for issuance by 2,000,000 shares and to extend the term of the Plan. As of May 31, 2021, the Plan permits the Company to issue up to 3,548,738 shares of common stock awards of which 581,804 is available to be issued. On November 30, 2020, the Company appointed a new director and granted 120,000 options of the Company’s common stock vesting monthly over a four-year period for his service on the Board at exercise price of $0.6035, expiring ten years after grant date. The director will be eligible for equity award grants on the same terms as other non-employee members of the Board. The Company intends to pay the director an annual cash retainer payable in quarterly installments. The Company expects the compensation to be $15,000 to $20,000 per year for the first year and $20,000 to $30,000 for the second year and thereafter, subject to formal approval by the Board. On February 12, 2021, the Company granted an option to the Company’s president to purchase 834,500 shares of the Company’s common stock with an exercise price of $2.66 and vesting as follows: 50% shall vest on the one-year anniversary of the grant date and 50% shall vest on the two-year anniversary of the grant date, subject to our president’s continued service to the Company. On February 12, 2021, the Company granted an option to the Company’s ’ directors to purchase a total of 705,500 shares of the Company’s common stock with an exercise price of $2.66 and vesting as follows: 50% shall vest on the one-year anniversary of the grant date and 50% shall vest on the two-year anniversary of the grant date, subject to our directors’ continued service to the Company. On February 12, 2021, the Company granted an option to the Company’s employees to purchase a total of 420,000 shares of the Company’s common stock with an exercise price of $2.66 and vesting as follows: 25% shall vest on the one-year anniversary of the vesting commencement date, and 1/48th of the shares subject to the option shall vest each month thereafter on the same day of the month as the vesting commencement date. On March 5, 2021, the Company granted an option to the Company’s president to purchase a total of 575,100 shares of the Company’s common stock with an exercise price of $1.52 and vesting as follows: 25% shall vest on the one-year anniversary of the vesting commencement date, and 1/48th of the shares subject to the option shall vest each month thereafter on the same day of the month as the vesting commencement date. On March 5, 2021, the Company granted an option to a director of the Company to purchase 30,000 shares of the Company’s common stock with an exercise price of $1.52 and vesting as follows: one third shall vest on the one-year anniversary of the vesting commencement date, one third shall vest on the two-year anniversary of the vesting commencement date and one third shall vest on the three-year anniversary of the vesting commencement date, subject to this director’s continued service to the Company. The Company utilizes the Black-Scholes model to value the stock options using the following assumptions: Nine Months Ended May 31, 2021 Expected term 5 years Expected average volatility 151 - 156 % Expected dividend yield — Risk-free interest rate 0.36 -0.79 % During the nine months ended May 31, 2021, the Company granted 2,685,100 options valued at $5,695,329. During the nine months ended May 31, 2021, the Company recognized stock option expense of $981,508, of which $871,510 was to related parties, and as of May 31, 2021, $5,122,786 remains unamortized, of which $4,477,549 is with related parties. The intrinsic value of the 2,966,934 options outstanding as of May 31, 2021 is $76,380. The following is a summary of stock option activity during the six months ended February 28, 2021: Options Outstanding Weighted Average Number of Weighted Average Remaining life Options Exercise Price (years) Outstanding, August 31, 2020 281,834 $ 3.57 8.90 Granted 2,685,100 2.31 10.00 Exercised — — — Forfeited/canceled — — — Outstanding, May 31, 2021 2,966,934 $ 2.43 9.57 Exercisable options, May 31, 2021 265,572 $ 3.38 8.56 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
May 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7 – COMMITMENTS AND CONTINGENCIES The Company has certain financial commitments relating to research and development contracts as of May 31, 2021, as follows: • The Company is invoiced monthly and quarterly in connection with 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. • The Company’s 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 Artelo Biosciences Limited (U.K.). We do not currently own any properties, laboratories, or manufacturing facilities. The leases for our office space are month-to-month. As of May 31, 2021, the Company had committed to a lease that had not yet commenced with a related party (Note 4) for a lease of office space with a commencement date of June 1, 2021 and a term of 39 months. Under the terms of the lease the Company will make payments totalling $32,918 within one year and $110,680 within three years and three months. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
May 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 8 – SUBSEQUENT EVENTS Subsequent to May 31, 2021, the Company issued an aggregate of 1,344,870 shares of common stock under the ATM Offering at an average price of $1.20 per common share for net proceeds of $1,564,171. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
May 31, 2021 | |
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 GAAP 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 GAAP 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 nine months ended May 31, 2021 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, 2020, contained in the Company’s Form 10-K filed on November 4, 2020. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation. |
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, Artelo Biosciences Limited and Artelo Biosciences Corporation. All intercompany transactions and balances have been eliminated. |
Loss per Share | Loss per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method and as if converted method. Dilutive potential common shares include outstanding stock options and warrants. For the three and nine months ended May 31, 2021 and 2020, respectively, the following common stock equivalents were excluded from the computation of diluted net loss per share as the result was anti-dilutive. May 31, 2021 2020 Stock options 2,966,934 281,834 Warrants 4,433,412 2,334,937 7,400,346 2,616,771 |
Covid 19 | Covid 19 As the COVID-19 pandemic is still evolving at this time and much of its impact remains unknown, the Company is not able to predict the impact it may have on the development of its product candidates and business. The severity of the COVID-19 pandemic could also negatively impact the Company’s access to its existing supply chain by delaying the delivery of key raw materials used in its product candidates and therefore delay the delivery of such products for use in its clinical trials. Any of these results could have a material adverse impact to our business. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash in banks, money market funds, commercial paper, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. Periodically, the Company may carry cash balances at financial institutions in excess of the federally insured limit of $250,000 The amount in excess of the FDIC insurance as of May 31, 2021 was approximately $9.2 million. The Company has not experienced losses on these accounts and management believes, based upon the quality of the financial institutions, that the credit risk with regard to these deposits is not significant. |
Marketable Securities | Marketable Securities Our investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized gains and losses on trading debt securities as well as realized gains and losses on available-for-sale debt securities are included in net income. The marketable securities previously held by the Company had matured during the three months ended May 31, 2021, and had an outstanding balance of $0 as of May 31, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
May 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of computation of diluted net loss per share | May 31, 2021 2020 Stock options 2,966,934 281,834 Warrants 4,433,412 2,334,937 7,400,346 2,616,771 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
May 31, 2021 | |
Equity [Abstract] | |
Schedule of activity warrants outstanding | Weighted Number of Weighted Average Average shares Exercise Price Life (years) Outstanding, August 31, 2020 2,334,937 $ 8.12 3.30 Granted 10,120,000 0.75 5.00 Forfeited — — — Exercised (8,021,525 ) 0.75 4.68 Outstanding, May 31, 2021 4,433,412 $ 4.63 3.42 |
Schedule of stock options assumptions | Nine Months Ended May 31, 2021 Expected term 5 years Expected average volatility 151 - 156 % Expected dividend yield — Risk-free interest rate 0.36 -0.79 % |
Schedule of stock option activity | Options Outstanding Weighted Average Number of Weighted Average Remaining life Options Exercise Price (years) Outstanding, August 31, 2020 281,834 $ 3.57 8.90 Granted 2,685,100 2.31 10.00 Exercised — — — Forfeited/canceled — — — Outstanding, May 31, 2021 2,966,934 $ 2.43 9.57 Exercisable options, May 31, 2021 265,572 $ 3.38 8.56 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net loss | 7,400,346 | 2,616,771 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net loss | 2,966,934 | 281,834 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net loss | 4,433,412 | 2,334,937 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) | 9 Months Ended |
May 31, 2021USD ($) | |
Accounting Policies [Abstract] | |
Federally cash insured limit | $ 250,000 |
Excess amount of FDIC insurance | 9,200,000 |
Marketable securities | $ 0 |
GOING CONCERN (Detail Textuals)
GOING CONCERN (Detail Textuals) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | May 31, 2021 | May 31, 2020 | Aug. 31, 2020 | |
Going Concern [Abstract] | |||||||||
Net loss | $ (2,249,792) | $ (1,865,921) | $ (1,434,645) | $ (951,191) | $ (1,370,126) | $ (1,306,361) | $ (5,550,358) | $ (3,627,678) | |
Accumulated deficit | $ (15,015,976) | $ (15,015,976) | $ (9,465,618) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($) | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | Aug. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Due to related parties | $ 5,000 | $ 11,959 | |
Senior Vice President, European Operations | |||
Related Party Transaction [Line Items] | |||
Repayments to related party | 1,090 | ||
Due to related parties | 0 | 1,104 | |
Foreign exchange loss of related party | (14) | ||
Consulting services | 45,000 | $ 49,000 | |
Consulting services outstanding | 5,000 | 5,000 | |
President and Officer | |||
Related Party Transaction [Line Items] | |||
Expenses paid by related party | 1,392 | ||
Repayments to related party | 7,248 | ||
Due to related parties | $ 0 | $ 5,855 |
INTANGIBLE ASSET (Detail Textua
INTANGIBLE ASSET (Detail Textuals) - USD ($) | 12 Months Ended | |
Aug. 31, 2020 | May 31, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible asset | $ 2,039,417 | $ 2,039,417 |
NEO1940 | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible asset | 2,039,417 | $ 2,039,417 |
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 |
EQUITY (Details)
EQUITY (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
May 31, 2021 | Aug. 31, 2020 | |
Number Of Shares [Roll Forward] | ||
Number of warrant outstanding | 2,334,937 | |
Number of warrant granted | 10,120,000 | |
Number of warrant forfeited | 0 | |
Number of warrant exercised | (8,021,525) | |
Number of warrant outstanding | 4,433,412 | 2,334,937 |
Weighted Average Exercise Price Of Warrants [Roll Forward] | ||
Weighted Average Exercise Price, Outstanding | $ 8.12 | |
Weighted Average Exercise Price Granted | 0.75 | |
Weighted Average Exercise Price Forfeited | 0 | |
Weighted Average Exercise Price Exercised | 0.75 | |
Weighted Average Exercise Price, Outstanding | $ 4.63 | $ 8.12 |
Weighted Average Life [Roll Forward] | ||
Weighted Average Life (years), Outstanding | 3 years 5 months 1 day | 3 years 3 months 18 days |
Weighted Average Life (years), Granted | 5 years | |
Weighted Average Life (years), Exercised | 4 years 8 months 4 days |
EQUITY (Details 1)
EQUITY (Details 1) | 9 Months Ended |
May 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 5 years |
Expected dividend yield | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected average volatility | 151.00% |
Risk-free interest rate | 0.36% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected average volatility | 156.00% |
Risk-free interest rate | 0.79% |
EQUITY (Details 2)
EQUITY (Details 2) - $ / shares | 9 Months Ended | 12 Months Ended |
May 31, 2021 | Aug. 31, 2020 | |
Number of Options Outstanding | ||
Number of Options Outstanding | 281,834 | |
Number of Options Granted | 2,685,100 | |
Number of Options Exercised | 0 | |
Number of Options Forfeited/canceled | 0 | |
Number of Options Outstanding | 2,966,934 | 281,834 |
Number of Options Exercisable | 265,572 | |
Weighted Average Exercise Price Options Outstanding | ||
Weighted Average Exercise Price, Outstanding | $ 3.57 | |
Weighted Average Exercise Price, Granted | 2.31 | |
Weighted Average Exercise Price, Exercised | 0 | |
Weighted Average Exercise Price, Forfeited/canceled | 0 | |
Weighted Average Exercise Price, Outstanding | 2.43 | $ 3.57 |
Weighted Average Exercise Price, Exercisable | $ 3.38 | |
Weighted Average Remaining Contractual life, Outstanding (in years) | 9 years 6 months 25 days | 8 years 10 months 24 days |
Weighted Average Remaining Contractual life, Granted (in years) | 10 years | |
Weighted Average Remaining Contractual life, Exercisable (in years) | 8 years 6 months 21 days |
EQUITY (Detail Textuals)
EQUITY (Detail Textuals) | Oct. 14, 2020USD ($)shares | Oct. 09, 2020Warrantshares$ / shares | May 31, 2021USD ($)$ / sharesshares | May 31, 2021USD ($)$ / sharesshares | May 31, 2020USD ($) | Aug. 31, 2020$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock par value before amendment | $ / shares | $ 0.001 | $ 0.001 | ||||
Common stock shares authorized before amendment | 18,750,000 | 18,750,000 | ||||
Preferred stock, shares authorized | 6,250,000 | 6,250,000 | 6,250,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, shares issued | 0 | 0 | 0 | |||
Common stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Common stock holder voting rights | Each share of common stock entitles the holder to one vote, in person or proxy | |||||
Common Stock, Shares, Issued | 10,120,000 | 23,149,112 | 23,149,112 | 4,991,587 | ||
Sale of Stock, Price Per Share | $ / shares | $ 1.51 | $ 1.51 | ||||
Common Stock sold pursuant to exercise of Overallotment Option | 1,320,000 | |||||
Number of common stock called by warrants | 10,120,000 | |||||
Number of common stock purchased by warrants which sold pursuant to the exercise of the Overallotment Option | 1,320,000 | |||||
Proceeds from issuance of common stock net of underwriting discount and commissions and offering expenses | $ | $ 6,578,553 | $ 7,614,120 | $ 380,678 | |||
Number of common shares issued for cash | 16,000 | |||||
Commission fee | $ | $ 23,396 | |||||
Commission rate | 3.00% | |||||
Offering Costs | $ | $ 95,919 | |||||
Deferred offering costs | $ | 72,523 | 72,523 | ||||
Stock based compensation | $ | 29,667 | |||||
Unamortized value of stock-based compensation | $ | 4,167 | 4,167 | ||||
Warrant Intrinsic Value | $ | $ 1,028,253 | $ 1,028,253 | ||||
Number of warrant exercised | 8,021,525 | |||||
Proceeds from exercise of warrants | $ | $ 6,016,144 | |||||
Underwriting Agreement with Ladenburg Thalmann & Co. Inc | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of units issued | 8,800,000 | |||||
Exercise price of common stock | $ / shares | $ 0.75 | |||||
Units issued, offering price per unit | $ / shares | $ 0.75 | |||||
Number of purchase common stock shares | 1,320,000 | |||||
Number of warrant purchase | Warrant | 1,320,000 |
EQUITY (Detail Textuals 1)
EQUITY (Detail Textuals 1) - USD ($) | Mar. 05, 2021 | Feb. 12, 2021 | Nov. 30, 2020 | Sep. 30, 2020 | May 31, 2021 | Aug. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Options Granted | 2,685,100 | |||||
Unamortized value of stock-based compensation | $ 4,167 | |||||
Number of options outstanding | 2,966,934 | 281,834 | ||||
Stock based compensation | $ 29,667 | |||||
Expected term | 5 years | |||||
Stock option granted for services | $ 5,695,329 | |||||
Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Options Granted | 30,000 | 705,500 | 120,000 | |||
Stock options exercise price per share | $ 1.52 | $ 2.66 | $ 0.6035 | |||
Vesting period of stock option | 4 years | |||||
Expiration period of stock options | 10 years | |||||
Expects compensation for first year | $15,000 to $20,000 per year for the first year | |||||
Expects compensation for second year and thereafter | $20,000 to $30,000 for the second year and thereafter | |||||
Description of stock options plan | one third shall vest on the one-year anniversary of the vesting commencement date, one third shall vest on the two-year anniversary of the vesting commencement date and one third shall vest on the three-year anniversary of the vesting commencement date, subject to this director’s continued service | 50% shall vest on the one-year anniversary of the grant date and 50% shall vest on the two-year anniversary of the grant date, subject to our directors’ continued service | ||||
President | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Options Granted | 575,100 | 834,500 | ||||
Stock options exercise price per share | $ 1.52 | $ 2.66 | ||||
Description of stock options plan | 25% shall vest on the one-year anniversary of the vesting commencement date, and 1/48th of the shares subject to the option shall vest each month thereafter on the same day of the month as the vesting commencement date. | 50% shall vest on the one-year anniversary of the grant date and 50% shall vest on the two-year anniversary of the grant date, subject to our president’s continued service | ||||
Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Options Granted | 420,000 | |||||
Stock options exercise price per share | $ 2.66 | |||||
Description of stock options plan | 25% shall vest on the one-year anniversary of the vesting commencement date, and 1/48th of the shares subject to the option shall vest each month thereafter on the same day of the month as the vesting commencement date | |||||
Amendment and Restated 2018 Equity Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of common stock shares authorized | 748,738 | 3,548,738 | ||||
Number of additional common stock shares authorized | 2,000,000 | |||||
Number of shares available to be issued | 581,804 | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense to related parties | $ 871,510 | |||||
Unamortized value of stock-based compensation | 5,122,786 | |||||
Unamortized value of stock based compensation to related parties | $ 4,477,549 | |||||
Number of options outstanding | 2,966,934 | |||||
Intrinsic value | $ 76,380 | |||||
Stock based compensation | $ 981,508 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Detail Textuals) | 9 Months Ended |
May 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease not yet commenced year one | $ 32,918 |
Operating lease not yet commenced within three years and three months | $ 110,680 |
SUBSEQUENT EVENTS (Detail Textu
SUBSEQUENT EVENTS (Detail Textuals) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jul. 12, 2021 | Nov. 30, 2020 | May 31, 2020 | |
Subsequent Event [Line Items] | |||
Value for issuance of common shares | $ 6,578,553 | $ 380,678 | |
Subsequent event | |||
Subsequent Event [Line Items] | |||
Number of issuance of common shares | 1,344,870 | ||
Average issued price per share | $ 1.20 | ||
Value for issuance of common shares | $ 1,564,171 |