NOTE 3 - RELATED PARTY TRANSACTIONS

During the years ended August 31, 2020 and 2019, the president and an officer of the Company incurred a total of $2,124 and $1,530 of expenses on behalf of the Company. The amounts owed to the related party as of August 31, 2020 and 2019 are $5,855 and $3,732, respectively. The amounts are non-interest bearing and have no terms of repayment.

During the years ended August 31, 2020 and 2019, the former President, and current Senior Vice President, European Operations, who is a major stockholder of the Company, paid for expenses on behalf of the Company for a total of $5,739 and $16,746, respectively. The amount of $4,710 and $17,228 was repaid during the years ended August 31, 2020 and 2019, respectively. The amounts owed to the related party as of August 31, 2020 and 2019 are $1,104 and $0, respectively. The amounts are non-interest bearing and have no terms of repayment.

During the years ended August 31, 2020 and 2019, Blackrock Ventures, Ltd., an entity owned by the Senior Vice President, European Operations, who is a major stockholder of the Company, provided $64,000 and $38,000 worth of consulting services to the Company, of which, $5,000 and $0 was outstanding, as of August 31, 2020 and 2019, respectively. On March 15, 2019, the Board approved the issuance of 25,000 shares of our common stock valued at $240,000 in exchange for its prior services to the Company.

Employment

The Company has an employment contract with a key employee, Mr. Gregory Gorgas, who is an officer of the Company. As of August 31, 2020, and 2019, the Company recorded accrued bonus of $150,480 and $0, respectively. During the years ended August 31, 2020 and 2019, the Company recorded salary and bonus of $581,441 and $258,128 to Mr. Gorgas, respectively.

During the year ended August 31, 2020, the Company has an employment contract with a key employee, Mr. Randy Schreckhise, Vice President, Finance and Operations. As of August 31, 2020, and 2019, the Company recorded accrued bonus of $23,196 and $0, respectively. During the year ended August 31, 2020, the Company recorded salary and bonus of $124,802 to Mr. Schreckhise.

The amounts and terms of the above transactions may not necessarily be indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent third parties.

Stock based compensation

During the years ended August 31, 2020 and 2019, the Company recorded $42,000 and $52,000 of stock compensation expense for our members of the Company's Board of Directors, respectively. The stock-based compensation is related to restricted stock awards issued in 2017. The unamortized value of the stock-based compensation as of August 31, 2020 is $33,833.