DERIVATIVE LIABILITY AND FAIR VALUE MEASUREMENTS
|9 Months Ended|
May 31, 2020
|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 a previous a private placement offering. 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:
As of May 31, 2020, there is no derivative liability associated with the shares of common stock issued pursuant to the Series E private offering as they no longer meet the criteria for price protection.