0001493152-18-009898.txt : 20180711 0001493152-18-009898.hdr.sgml : 20180711 20180711111413 ACCESSION NUMBER: 0001493152-18-009898 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 56 CONFORMED PERIOD OF REPORT: 20180531 FILED AS OF DATE: 20180711 DATE AS OF CHANGE: 20180711 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Novo Integrated Sciences, Inc. CENTRAL INDEX KEY: 0001138978 STANDARD INDUSTRIAL CLASSIFICATION: ENGINES & TURBINES [3510] IRS NUMBER: 593691650 FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-109118 FILM NUMBER: 18948281 BUSINESS ADDRESS: STREET 1: 11120 NE 2ND STREET STREET 2: SUITE 200 CITY: BELLEVUE STATE: WA ZIP: 98004 BUSINESS PHONE: (206) 617-9797 MAIL ADDRESS: STREET 1: 11120 NE 2ND STREET STREET 2: SUITE 200 CITY: BELLEVUE STATE: WA ZIP: 98004 FORMER COMPANY: FORMER CONFORMED NAME: TURBINE TRUCK ENGINES INC DATE OF NAME CHANGE: 20010420 10-Q 1 form10-q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2018

[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______, 20___, to _____, 20___.

Commission File Number 333-109118

Novo Integrated Sciences, Inc.

(Exact Name of Registrant as Specified in its Charter)

Nevada		59-3691650
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification Number)

11120 NE 2nd Street, Suite 200 Bellevue, Washington		98004
(Address of Principal Executive Offices)		(Zip Code)

(206) 617-9797

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former name or former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	[ ]	Accelerated filer	[ ]
Non-accelerated filer	[ ]	Smaller reporting company	[X]
Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

There were 214,698,824 shares of the registrant’s $0.001 par value common stock outstanding as of July 9, 2018.

Novo Integrated Sciences, Inc.

Contents

PART I – FINANCIAL INFORMATION		3

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	16

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22

Item 4.	Controls and Procedures	23

PART II – OTHER INFORMATION		23

Item 1.	Legal Proceedings	23

Item 1A.	Risk Factors	24

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24

Item 3.	Defaults Upon Senior Securities	24

Item 4.	Mine Safety Disclosures	24

Item 5.	Other Information	24

Item 6.	Exhibits	25

Signatures		26

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

NOVO INTEGRATED SCIENCES, INC. (formerly Turbine Truck Engines, Inc.)

CONDENSED CONSOLIDATED BALANCE SHEETS

As of May 31, 2018 (unaudited) and August 31, 2017

	May 31, 2018			August 31, 2017
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	863,696		$	1,896,572
Accounts receivable, net		1,311,574			1,128,898
Other receivables		397,168			372,024
Prepaid expenses and other current assets		205,433			252,536
Total current assets		2,777,871			3,650,030

Property and equipment, net		331,101			302,951
Acquisition deposits		1,121,859			1,162,009
Goodwill		609,248			399,400
TOTAL ASSETS	$	4,840,079		$	5,514,390

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

Current Liabilities:
Accounts payable	$	1,310,277		$	1,703,342
Accrued expenses		368,838			341,657
Accrued interest (principally to related parties)		142,413			403,119
Due to related parties		1,094,488			1,812,613
Notes payable, current portion		6,164			13,171
Total current liabilities		2,922,180			4,273,902

Debentures, related parties		1,234,404			5,114,327
Notes payable, net of current portion		399,699			414,351
TOTAL LIABILITIES		4,556,283			9,802,580

Commitments and contingencies		-			-

STOCKHOLDERS’ EQUITY (DEFICIT)
Novo Integrated Sciences, Inc.
Convertible preferred stock, $0.001 par value; 1,000,000 shares authorized; 0 and 0 shares issued and outstanding at May 31, 2018 and August 31, 2017		-			-
Common stock; $0.001 par value; 499,000,000 shares authorized; 214,698,824 and 201,837,254 shares issued and outstanding at May 31, 2018 and August 31, 2017		214,699			201,837
Additional paid-in capital		9,992,354			3,381,643
Other comprehensive income		1,144,998			1,240,844
Accumulated deficit		(11,041,720	)		(9,091,977	)
Total Novo Integrated Sciences, Inc. stockholders’ equity (deficit)		310,331			(4,267,653	)
Noncontrolling interest		(26,535	)		(20,537	)
Total stockholders’ equity (deficit)		283,796			(4,288,190	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	4,840,079		$	5,514,390

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

NOVO INTEGRATED SCIENCES, INC. (formerly Turbine Truck Engines, Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

For the Three and Nine Months Ended May 31, 2018 and 2017 (unaudited)

	Three Months Ended						Nine Months Ended
	May 31, 2018			May 31, 2017			May 31, 2018			May 31, 2017
	(unaudited)			(unaudited)			(unaudited)			(unaudited)

Revenues	$	2,323,169		$	2,089,970		$	6,722,825		$	5,742,729

Cost of revenues		1,417,999			1,376,911			4,133,288			3,730,932

Gross profit		905,170			713,059			2,589,537			2,011,797

Operating expenses:
Selling expenses		17,900			16,374			86,640			34,934
General and administrative expenses		1,064,107			957,558			3,978,861			2,127,800
Total operating expenses		1,082,007			973,932			4,065,501			2,162,734

Loss from operations		(176,837	)		(260,873	)		(1,475,964	)		(150,937	)

Non-operating income (expense)
Interest income		120			8,891			331			30,879
Interest expense		(42,696	)		(105,982	)		(480,981	)		(337,687	)
Total other income (expense)		(42,576	)		(97,091	)		(480,650	)		(306,808	)

Loss before income taxes		(219,413	)		(357,964	)		(1,956,614	)		(457,745	)

Income tax expense (benefit)		-			-			-			-

Net loss	$	(219,413	)	$	(357,964	)	$	(1,956,614	)	$	(457,745	)

Net loss attributed to noncontrolling interest		(1,515	)		(1,223	)		(6,871	)		(5,714	)

Net loss attributed to Novo Integrated Sciences, Inc.	$	(217,898	)	$	(356,741	)	$	(1,949,743	)	$	(452,031	)

Comprehensive loss:
Net loss		(219,413	)		(357,964	)		(1,956,614	)		(457,745	)
Foreign currency translation gain (loss)		(8,505	)		214,786			(95,846	)		281,681
Comprehensive loss:	$	(227,918	)	$	(143,178	)	$	(2,052,460	)	$	(176,064	)

Weighted average common shares outstanding - basic and diluted		214,684,089			173,965,632			207,568,978			169,876,075

Net loss per common share - basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

NOVO INTEGRATED SCIENCES, INC. (formerly Turbine Truck Engines, Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended May 31, 2018 and 2017 (unaudited)

	Nine Months Ended
	May 31, 2018			May 31, 2017
	(unaudited)			(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(1,956,614	)	$	(457,745	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		52,287			46,870
Fair value of vested stock options		1,220,419			197,916
Expense associated with modified stock option terms		31,536			-
Changes in operating assets and liabilities:
Accounts receivable		(227,113	)		(92,593	)
Prepaid expenses and other current assets		39,503			(9,542	)
Accounts payable		(343,102	)		(89,245	)
Accrued expenses		39,552			(194,880	)
Accrued interest		303,488			234,548
Net cash used in operating activities		(840,044	)		(364,671	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of furniture and equipment		(83,950	)		(28,621	)
Amounts loaned for other receivables		(38,929	)		(375,450	)
Cash acquired in reverse merger transaction					12,249
Repayments of other receivables		-			-
Net cash provided by (used in) investing activities		(122,879	)		(391,822	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Advances (repayments) to related parties		(31,580	)		(159,874	)
Proceeds from the sale of common stock		15,564			2,510,550
Payments on notes payable		(7,056	)		(120,285	)
Net cash used in financing activities		(23,072	)		2,230,391

Effect of exchange rate changes on cash and equivalents		(46,881	)		89,953

NET DECREASE IN CASH AND CASH EQUIVALENTS		(1,032,876	)		1,563,851

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		1,896,572			110,315

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	863,696		$	1,674,166

CASH PAID FOR:
Interest	$	170,588		$	129,884
Income taxes	$	-		$	-

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Note payable issued for purchase of assets	$	-		$	375,450

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

NOVO INTEGRATED SCIENCES, INC.

(formerly Turbine Truck Engines, Inc.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Nine Months Ended May 31, 2018 and 2017 (unaudited)

Note 1 - Organization and Basis of Presentation

Organization and Line of Business

Novo Integrated Sciences, Inc. was incorporated in Delaware on November 27, 2000, under the name Turbine Truck Engines, Inc. On February 20, 2008, the Company was re-domiciled to the State of Nevada. Effective July 12, 2017, the Company’s name was changed to Novo Integrated Sciences, Inc. When used herein, the terms the “Company,” “we,” “us” and “our” refer to Novo Integrated Sciences, Inc. and its consolidated subsidiaries.

We provide specialized physiotherapy, chiropractic care, occupational therapy, eldercare, laser therapeutics, massage therapy, acupuncture, chiropodist, neurological functions, kinesiology, private personal training and dental services to our clients. Our multi-disciplinary primary healthcare services and protocols are directed at assessment, treatment, management, rehabilitation and prevention through our 14 corporate owned clinics, 86 affiliate clinics, 9 retirement homes and over 130 long-term care facilities throughout Canada. Through our contractual relationships, we provide specialized services to over 300,000 patients annually. No employee of the Company or any of its subsidiaries practices primary care medicine and the Company’s services do not require a medical or nursing license.

On April 25, 2017 (the “Effective Date”), the Company entered into a Share Exchange Agreement (the “Share Exchange Agreement”) by and between (i) the Company; (ii) NHL, (iii) ALMC-ASAP Holdings Inc. (“ALMC”); (iv) Michael Gaynor Family Trust (the “MGFT”); (v) 1218814 Ontario Inc. (“1218814”) and (vi) Michael Gaynor Physiotherapy Professional Corp. (“MGPP,” and together with ALMC, MGFT and 1218814, the “NHL Shareholders”). Pursuant to the terms of the Share Exchange Agreement, the Company agreed to acquire from the NHL Shareholders all of the shares of both common and preferred stock of NHL, held by the NHL Shareholders, in exchange for the issuance by the Company to the NHL Shareholders of shares of the Company’s common stock, such that following the closing of the Share Exchange Agreement, the NHL Shareholders would own 167,797,406 restricted shares of Company common stock, representing 85% of the issued and outstanding Company common stock, calculated including all granted and issued options or warrants to acquire the Company common stock as of the Effective Date, but to exclude shares of Company common stock that are subject to a then-current Regulation S offering that was undertaking by the Company (the “Exchange”).

On May 9, 2017, the Exchange closed and, as a result, NHL became a wholly owned subsidiary of Novo Integrated Sciences, Inc.

The Exchange was accounted for as a reverse acquisition under the purchase method of accounting since NHL obtained control of Novo Integrated Sciences, Inc. Accordingly, the Exchange was recorded as a recapitalization of NHL, with NHL being treated as the continuing entity. The historical financial statements presented are the financial statements of NHL. The Share Exchange Agreement was treated as a recapitalization and not as a business combination; therefore, no pro forma information is disclosed. At the closing date of the Exchange, the net assets of the legal acquirer, Novo Integrated Sciences, Inc., were $6,904.

On May 9, 2017, our Board of Directors determined, in connection with the closing of the Exchange, to change our fiscal year end from December 31 to August 31 but did not memorialize such determination in writing. On July 17, 2017, the Board ratified and memorialized in writing its May 9, 2017 determination regarding the change in fiscal year end.

The unaudited consolidated financial statements are prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments, consisting only of normal recurring adjustments, which in the opinion of management, are necessary to fairly state the Company’s financial position, the results of its operations, and cash flows for the periods presented. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations. The results of operations for the three and nine months ended May 31, 2018 are not necessarily indicative of the results for the year ending August 31, 2018.

Basis of Presentation

The accompanying consolidated financial statements were prepared in conformity with U.S. GAAP. The Company’s Canadian subsidiaries’ functional currency is the Canadian Dollar (“CAD”); however, the accompanying consolidated financial statements were translated and presented in United States Dollars (“$” or “USD”).

Foreign Currency Translation

The accounts of the Company’s Canadian subsidiaries are maintained in CAD. The accounts of these subsidiaries are translated into USD in accordance with the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Transaction, with the CAD as the functional currency. According to Topic 830, all assets and liabilities are translated at the exchange rate on the balance sheet date, stockholders’ equity is translated at historical rates and statement of operations items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC Topic 220, Comprehensive Income. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the statement of operations and comprehensive income. The following table details the exchange rates used for the respective periods:

	May 31, 2018		May 31, 2017		August 31, 2017

Period end: CAD to USD exchange rate	$	0.7712	$	0.7405	$	0.7988
Average period: CAD to USD exchange rate	$	0.7901	$	0.7509

Note 2 – Summary of Significant Accounting Policies

Use of Estimates

The preparation of consolidated 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 disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, NHL, Novo Peak Health Inc., Novo Healthnet Rehab Limited, Novo Assessments Inc., an 80% interest in Novo Healthnet Kemptville Centre, Inc., a Back on Track Physiotherapy and Health Centre clinic operated by NHL, and a 50% stake in a joint venture with the Sophie Freeman Dental Hygiene Professional Corporation operated as Novo Dental. All of the Company’s subsidiaries are incorporated under the laws of the Province of Ontario, Canada. All intercompany transactions have been eliminated.

Noncontrolling Interest

The Company follows FASB ASC Topic 810, Consolidation, which governs the accounting for and reporting of non-controlling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance.

The net income (loss) attributed to the NCI is separately designated in the accompanying consolidated statements of operations and other comprehensive income (loss).

Cash Equivalents

For the purpose of the statement of cash flows, cash equivalents include time deposits, certificate of deposits, and all highly liquid debt instruments with original maturities of three months or less.

Accounts Receivable

Accounts receivable are recorded, net of allowance for doubtful accounts and sales returns. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentration, customer credit worthiness, current economic trends and changes in customer payment patterns to determine if the allowance for doubtful accounts is adequate. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Delinquent account balances are written-off after management has determined that the likelihood of collection is not probable and known bad debts are written off against the allowance for doubtful accounts when identified. As of May 31, 2018 and August 31, 2017, the allowance for uncollectible accounts receivable was $480,818 and $507,636, respectively.

Property and Equipment

Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the declining balance method for substantially all assets with estimated lives as follows:

	Leasehold improvements	5 years
	Clinical equipment	5 years
	Computer equipment	3 years
	Office equipment	5 years
	Furniture and fixtures	5 years

Long-Lived Assets

The Company applies the provisions of ASC Topic 360, Property, Plant, and Equipment, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair values are reduced for the cost of disposal. Based on its review at May 31, 2018 and August 31, 2017, the Company believes there was no impairment of its long-lived assets.

Goodwill

Goodwill represents the excess of purchase price over the underlying net assets of businesses acquired. Under accounting requirements, goodwill is not amortized but is subject to annual impairment tests. At May 31, 2018, the Company recorded goodwill of $385,600 and $223,648, respectively, related to its acquisition of Apka Health, Inc. during the fiscal year ended August 31, 2017 and Executive Fitness Leaders during the fiscal year ended August 31, 2018.

Acquisition Deposits

The Company has signed letters of understanding with two potential acquisition candidates which includes refundable acquisition deposits totaling $1,121,859 and $1,162,009 at May 31, 2018 and August 31, 2017, respectfully.

Fair Value of Financial Instruments

For certain of the Company’s financial instruments, including cash and equivalents, restricted cash, accounts receivable, advances to suppliers, accounts payable, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities.

FASB ASC Topic 820, Fair Value Measurements and Disclosures, requires disclosure of the fair value of financial instruments held by the Company. FASB ASC Topic 825, Financial Instruments, defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

	●	Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

	●	Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic 480, Distinguishing Liabilities from Equity, and FASB ASC Topic 815, Derivatives and Hedging.

As of May 31, 2018 and August 31, 2017, respectively, the Company did not identify any assets and liabilities required to be presented on the balance sheet at fair value.

Revenue Recognition

The Company recognizes revenue on arrangements in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers. Revenue related to healthcare services provided is recognized at the time services have been performed. Gross service revenue is recorded in the accounting records on an accrual basis at the provider’s established rates, regardless of whether the health care entity expects to collect that amount. The Company reserves a provision for contractual adjustment and discounts and deduct from gross service revenue. The Company recognizes revenue at the time the services have been performed. The Company reports revenues net of any sales, use and value added taxes.

Income Taxes

The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company has no material uncertain tax positions for any of the reporting periods presented.

Stock-Based Compensation

The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.

Basic and Diluted Earnings Per Share

Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share. Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding. Diluted EPS is based on the assumption that all dilutive securities are converted. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. There were 10,030,000 options/warrants outstanding as of May 31, 2018. Due to the net loss incurred potentially dilutive instruments would be anti-dilutive. Accordingly, diluted loss per share is the same as basic loss for all periods presented.

Foreign Currency Transactions and Comprehensive Income

U.S. GAAP generally requires recognized revenue, expenses, gains and losses be included in net income. Certain statements, however, require entities to report specific changes in assets and liabilities, such as gain or loss on foreign currency translation, as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. The functional currency of the Company’s Canadian subsidiaries is the Canadian dollar. Translation gains of $1,144,998 and $1,240,844 at May 31, 2018 and August 31, 2017, respectively, are classified as an item of other comprehensive income in the stockholders’ equity section of the balance sheet.

Statement of Cash Flows

Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rates. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets.

Recent Accounting Pronouncements

In January 2017, the FASB issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. The adoption of this ASU did not have an impact on its financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents on the statement of cash flows and disclosure of how the statement of cash flows reconciles to the balance sheet if restricted cash is shown separately from cash and cash equivalents on the balance sheet. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The adoption of this ASU did not have an impact on its financial statements.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides guidance for targeted changes with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. ASU 2016-15 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The adoption of this ASU did not have an impact on its financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company adopted this ASU beginning on March 1, 2018 and used the modified prospective method of adoption. The adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures.

Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

Note 3 – Related Party Transactions

Due to related parties

Amounts loaned to the Company by stockholders and officers of the Company that are payable upon demand.

At August 31, 2017, the amount due to related parties was $1,812,613. On January 31, 2018, a related party converted $813,125 of outstanding amounts loaned to the Company into 1,976,483 shares of the Company’s common stock. The per share price used for the conversion of this loan was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price. In addition, during the nine months ended May 31, 2018, the Company repaid advances from related parties of $31,580. At May 31, 2018, the amount due to related parties was $1,094,488.

Note 4 – Other Receivables

Other receivables at May 31, 2018 and August 31, 2017 consisted of the following:

	May 31, 2018		August 31, 2017
Notes receivable dated November 15, 2014; accrues interest at 8% per annum; secured by assets; due November 15, 2016.	$	-	$	39,940
Notes receivable dated April 1, 2015 and amended on May 23, 2017; accrued interest at 8% per annum; secured by certain assets; due May 23, 2018. This receivable is currently past due.		289,200		299,550
Advance to corporation; non-interest bearing; unsecured; payable upon demand		30,848		32,534
Advance to corporation; non-interest bearing; unsecured; payable upon demand		77,120		-
Total other receivables	$	397,168	$	372,024

Note 5 – Property and Equipment

Property and equipment at May 31, 2018 and August 31, 2017 consisted of the following:

	May 31, 2018			August 31, 2017
Leasehold Improvements	$	342,305		$	329,985
Clinical equipment		201,505			177,514
Computer equipment		24,873			21,020
Office equipment		32,339			24,319
Furniture and fixtures		39,957			18,218
		640,979			571,056
Accumulated depreciation		(309,878	)		(268,105	)
Total	$	331,101		$	302,951

Depreciation expense for the nine months ended May 31, 2018 and 2017 was $52,287 and $46,870, respectively.

Note 6 – Notes Payable

Notes payable at May 31, 2018 and August 31, 2017 consisted of the following:

	May 31, 2018			August 31, 2017
Notes payable to financial institution; accrues interest at 7.2% per annum; monthly principal and interest payment of $3,567; unsecured; due October 2017. This note has been fully repaid.	$	-		$	7,134
Notes payable issued in connection with purchase of assets; accrues interest at 0% per annum; due on March 27, 2019.		385,600			399,400
Note payable assumed with acquisition; accrues interest at 6% per annum; monthly principal and interest payment of $615; unsecured; due April 8, 2019.		20,263			20,988
		405,863			427,522
Current portion		(6,164	)		(13,171	)
Long-term portion	$	399,699		$	414,351

Aggregate future maturities of notes payable are as follows:

Twelve months ending May 31,
2019	$	6,164
2020		399,699
	$	405,863

Note 7 – Debentures, related parties

On September 30, 2013, the Company issued five debentures totaling CAD6,402,512 ($4,968,900 at November 30, 2017) in connection with the acquisition of certain business assets. The holders of the debentures are current stockholders, officers and/or affiliates of the Company. The debentures are secured by all the assets of the Company, accrue interest at 8% per annum and were originally due on September 30, 2016. On December 2, 2017, the debenture holders agreed to extend the due date to September 30, 2019.

On January 31, 2018, the debenture holders converted 75% of the debenture value of $3,894,809 plus accrued interest of $414,965 into 10,475,872 shares of the Company’s common stock. The per share price used for the conversion of each debenture was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price. At May 31, 2018, the amount of debentures outstanding was $1,234,404.

Note 8 – Stockholders’ Deficit

Convertible preferred stock

The Company has authorized 1,000,000 shares of $0.001 par value convertible preferred stock. At May 31, 2018 and August 31, 2017 there were 0 and 0 convertible preferred shares issued and outstanding, respectively.

Common stock

The Company has authorized 499,000,000 shares of $0.001 par value common stock. At May 31, 2018 and August 31, 2017 there were 214,698,824 and 201,837,254 common shares issued and outstanding, respectively.

During the nine months ended May 31, 2018, the Company issued 384,110 restricted shares of common stock for the acquisition of Executive Fitness Leaders valued at $233,155. The value was based on the closing price of the Company’s common stock on the acquisition date. The shares were issued on December 5, 2017.

During the nine months ended May 31, 2018, the Company issued 12,452,356 restricted shares of common stock for the conversion of debt totaling $5,122,899. The per share price used for the conversion was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price. The shares were issued on February 9, 2018.

In addition, during the same period, the Company issued 25,104 restricted shares of common stock for a $15,564 which was provided to fund the Company’s ongoing operational and product development expenses. The shares were sold at a price of $0.62 per share which was determined as the per share closing price as of the close of business on April 23, 2018. The issuance of shares of common stock was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) in reliance upon Regulation S promulgated pursuant to the Securities Act. The issuances involved offers and sales of securities outside the United States. The offers and sales were made in offshore transactions and no directed selling efforts were made by the issuer, a distributor, their affiliates or any persons acting on their behalf. The shares were issued on April 25, 2018.

Stock options/warrants

On September 8, 2015, the Company adopted the 2015 Incentive Compensation Plan (the “2015 Plan”), which authorized the issuance of up to 5,000,000 shares of common stock to employees, officers, directors or independent consultants of the Company, provided that no person can be granted shares under the 2015 Plan for services related to raising capital or promotional activities. During 2017 and 2016, the Company did not grant any awards under the 2015 Plan. As of August 31, 2017, 4,987,500 shares were available under the 2015 Plan for future grants, awards, options or share issuances. However, because the shares issuable under the 2015 Plan or issuable upon conversion of awards granted under the 2015 Plan are no longer registered under the Securities Exchange Act of 1934, as amended, the Company does not intend to issue any additional grants under the 2015 Plan.

On January 16, 2018, the Company adopted the Novo Integrated Sciences, Inc. 2018 Incentive Plan (the “2018 Plan”). Under the 2018 Plan, 10,000,000 shares of common stock are authorized for issuance to employees, non-employees, directors and key consultants to the Company or its subsidiaries. The 2018 Plan authorizes equity-based and cash-based incentives for participants. There were 9,950,000 shares available for award at May 31, 2018 under the 2018 Plan.

The following is a summary of stock option/warrant activity:

					Weighted
			Weighted		Average
	Options/		Average		Remaining		Aggregate
	Warrants		Exercise		Contractual		Intrinsic
	Outstanding		Price		Life		Value
Outstanding, August 31, 2017		7,860,000	$	0.27		3.53	$	660,000
Granted		2,170,000		0.42
Forfeited		-
Exercised		-
Outstanding, May 31, 2018		10,030,000		0.30		4.81		2,318,200
Exercisable, May 31, 2018		9,030,000	$	0.30		4.88	$	2,128,200

The per share exercise prices for options/warrants outstanding at May 31, 2018 was as follows:

Outstanding			Exercisable
Number of			Number of
Options/	Exercise		Options/		Exercise
Warrants	Price Per Share		Warrants		Price Per Share
5,500,000	$	0.16		5,500,000	$	0.16
1,000,000		0.32		-		0.32
50,000		0.33		50,000		0.33
120,000		0.40		120,000		0.40
2,000,000		0.42		2,000,000		0.42
100,000		0.50		100,000		0.50
1,000,000		0.62		1,000,000		0.62
250,000		0.80		250,000		0.80
10,000		2.00		10,000		2.00
10,030,000				9,030,000

For options granted during fiscal year 2017 where the exercise price equaled the stock price at the date of the grant, the weighted-average fair value of such options was $0.58 and the weighted-average exercise price of such options/warrants was $0.42. No options were granted during fiscal year 2017 where the exercise price was less than the stock price at the date of grant or the exercise price was greater than the stock price at the date of grant.

For options granted during fiscal year 2018 where the exercise price equaled the stock price at the date of the grant, the weighted-average fair value of such options was $0.41 and the weighted-average exercise price of such options/warrants was $0.42. No options were granted during fiscal year 2018 where the exercise price was less than the stock price at the date of grant or the exercise price was greater than the stock price at the date of grant.

The fair value of the stock options is being amortized to stock option expense over the vesting period. The Company recorded stock option expense of $1,220,419 during the nine months ended May 31, 2018. At May 31, 2018, the unamortized stock option expense was $54,512.

The assumptions used in calculating the fair value of options granted using the Black-Scholes option-pricing model for options granted are as follows:

Risk-free interest rate	1.83	%
Expected life of the options	2.5 to 3.5 years
Expected volatility	314	%
Expected dividend yield	0	%

During the nine months ended May 31, 2018, the Company extended the expiration date of 5,600,000 options by three years. The change in fair value between the options using the original terms and the options using the new expiration dates was $31,536 which has been recorded as expense in the accompanying consolidated statement of operations.

Note 9 – Commitments and Contingencies

Litigation

The Company is party to certain legal proceedings from time to time incidental to the conduct of its business. These proceedings could result in fines, penalties, compensatory or treble damages or non-monetary relief. The nature of legal proceedings is such that the Company cannot assure the outcome of any particular matter, and an unfavorable ruling or development could have a materially adverse effect on our consolidated financial position, results of operations and cash flows in the period in which a ruling or settlement occurs. However, based on information available to the Company’s management to date, the Company’s management does not expect that the outcome of any matter pending against the Company is likely to have a materially adverse effect on the Company’s consolidated financial position as of May 31, 2018, results of operations, cash flows or liquidity of the Company.

Leases

The Company leases its office space and certain facilities under long-term operating leases expiring through fiscal year 2023. Rent expense under these leases was $612,343 and $594,842 for the nine months ended May 31, 2018 and 2017, respectively.

Note 10 – Acquisition of Assets

On December 1, 2017, the Company and Executive Fitness Leaders, located in Ottawa Ontario Canada, entered into an Asset Purchase Agreement, pursuant to which the Company acquired substantially all of the assets of Executive Fitness Leaders in exchange for the issuance, by the Company, of 384,110 restricted shares of its common stock valued at $233,155. The purchase price was allocated to furniture and equipment ($7,772) and goodwill ($225,383). The transaction closed on December 1, 2017. The purchase of these assets was not considered significant for accounting purposes; therefore, pro forma financial statements are not presented.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), provide a safe harbor for forward-looking statements made by or on behalf of the Company. The Company and its representatives may from time to time make written or oral statements that are “forward-looking,” including statements contained in this report and other filings with the Securities and Exchange Commission (“SEC”) and in our reports and presentations to stockholders or potential stockholders. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” or similar expressions. Such forward-looking statements include risks and uncertainties and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties can be found in the Part I, Item 1A, “Risk Factors” section of the Company’s Form 10-K for the fiscal year ended August 31, 2017.

Although we believe the expectations reflected in our forward-looking statements are based upon reasonable assumptions, it is not possible to foresee or identify all factors that could have a material effect on the future financial performance of the Company. The forward-looking statements in this report are made on the basis of management’s assumptions and analyses, as of the time the statements are made, in light of their experience and perception of historical conditions, expected future developments and other factors believed to be appropriate under the circumstances.

Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this Quarterly Report on Form 10-Q and the information incorporated by reference in this report to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

Overview of the Company

Our strict adherence to public regulatory standards, as well as self-imposed standards of excellence, have allowed us to navigate with ease through the industry’s licensing and regulatory framework. Compliant treatment, data and administrative protocols are managed through a team of highly-trained, certified healthcare and administrative professionals. Novo Healthnet Limited, our wholly owned subsidiary (“NHL”), and its direct and indirect subsidiaries are regulated under the Financial Services Commission of Ontario (“FSCO”). In 2013, NHL received its accreditation from the Commission on Accreditation of Rehabilitation Facilities (“CARF”). Currently, NHL is undergoing the CARF re-accreditation process.

Recent Developments

Share Exchange Agreement

On May 9, 2017, the Exchange closed and, as a result, NHL became a wholly owned subsidiary of Novo Integrated Sciences, Inc.

Brands International Corporation Letter of Intent

The Company previously entered into a binding letter of intent (the “LOI”) with Brands International Corporation (“Brands”), pursuant to which the Company agreed to acquire 60% of the issued and outstanding shares of Brands in exchange for the arrangement of secured debt financing in the amount of CAD2,350,000 (approximately $1,873,256 per the Bank of Canada posted exchange rate of 0.7977 on December 29, 2017) arranged or provided by the Company (the “Acquisition”). Upon completion of the Acquisition, it was anticipated that the Company would own 60% of Brands’ issued and outstanding shares and Brands will be a partially-owned subsidiary of the Company. As amended, the LOI terminated on June 1, 2018. Negotiations between the Company and Brands are ongoing with the parties continuing, in good faith, to work toward consummation of the Acquisition.

2018 Incentive Plan

On January 16, 2018, the Company adopted the Novo Integrated Sciences, Inc. 2018 Incentive Plan (the “2018 Plan”). Under the 2018 Plan, 10,000,000 shares of common stock are authorized for issuance employees, non-employee directors and key consultants to the Company or its subsidiaries. The 2018 Plan authorizes equity-based and cash-based incentives for participants. There were 9,950,000 shares available for award at May 31, 2018 under the 2018 Plan.

Debt Conversion

On September 30, 2013, NHL issued five debentures totaling approximately $4,968,990 (CAD6,402,512) at November 30, 2017 in connection with the acquisition of certain business assets. The holders of the debentures are current stockholders, officers and/or affiliates of the Company. The debentures are secured by all the assets of the Company, accrue interest at 8% per annum and were originally due on September 30, 2016. On December 2, 2017, the debenture holders agreed to extend the due date to September 30, 2019.

On December 5, 2017, the debenture holders, NHL and the Company signed a binding letter of intent to convert no less than 75% of the respective debenture value plus any interest or fees owed to the Company’s common stock and a per share price equal to the average price of the five trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price.

On January 31, 2018, each of the debenture holders entered into a debenture amendment with NHL and the Company pursuant to which (i) each debenture holder agreed to convert 75% of the amount owed, both principal and interest, under the respective debenture into shares of Company common stock in lieu of accepting a cash payment for 75% of the amount owed, both principal and interest, and (ii) NHL and the Company agreed to issue to each debenture holder shares of common stock at a Canadian-to-United States dollar exchange rate of 0.8111.

NHL and ALMC-ASAP Holdings Inc. (“ALMC”) are parties to that certain loan agreement dated as of January 19, 2016, as amended (the “Loan Agreement”), totaling approximately $875,988 (CAD1,080,000). On January 31, 2018, ALMC, NHL and the Company entered into an amendment to the Loan Agreement pursuant to which (i) ALMC agreed to convert 75% of the amount owed, both principal and interest, under the Loan Agreement into shares of Company common stock in lieu of accepting a cash payment for 75% of the amount owed, both principal and interest, and (ii) NHL and the Company agreed that the Company would issue to ALMC shares of the Company’s common stock at a Canadian-to-United States dollar exchange rate of 0.8111.

As a result, on January 31, 2018, the Company issued an aggregate of 12,452,346 shares of common stock to the debenture holders and ALMC.

Officer Changes

On March 15, 2018, Michael Gaynor resigned his position as the Company’s Treasurer. Mr. Gaynor will continue to act as the Company’s Secretary and as a member of the Company’s board of directors.

Effective March 15, 2018, Emily Mattacchione was appointed as the Company’s Treasurer. As of May 31, 2018, Ms. Mattacchione and her husband, Robert Mattacchione, as co-trustees of the Mattacchione Family Trust, have full share voting and depository power for 128,934,704 shares of the Companies’ outstanding common stock (approximately 59.1%) issued in the name of ALMC-ASAP Holdings Inc. ALMC’s shares are held by the Mattacchione Family Trust.

China Quantum Memorandum of Understanding

On April 8, 2018, NHL, a wholly owned subsidiary of the Company, executed a memorandum of understanding (“MOU”), effective March 26, 2018, with China Quantum Life Science Technologies Holding Limited (“China Quantum”). Pursuant to the MOU, NHL and China Quantum agreed that they would, on an exclusive basis for the term of the MOU, evaluate the possibility of executing a transaction, which includes:

	(i)	a commitment by China Quantum to purchase, on or before May 15, 2018, 10,000,000 shares of restricted Company common stock at a purchase price of $0.50 per share, equal to an aggregate purchase price of $5,000,000,
	(ii)	an agreement that China Quantum will have one board seat on the Company’s board of directors,
	(iii)	an agreement by NHL and China Quantum to form a joint venture entity named Novo China Health Group (the “Joint Venture”), in which China Quantum will be the 70% owner and NHL will be the 30% owner, that will offer physical therapy, chiropractic, rehabilitation, pain management and other holistic care within medical facilities in China, and
	(iv)	an agreement by NHL and China Quantum that the Joint Venture can spin-off into a separate public company when the Joint Venture reaches a level of financial performance and achieves other important milestones that the Joint Venture’s board of directors deems it appropriate.

The MOU has terminated pursuant to its terms. However, negotiations between NHL and China Quantum are ongoing with all parties continuing, in good faith, to work toward consummation of a transaction.

Change in Independent Registered Accounting Firm

On May 31, 2018, the Company’s Board of Directors terminated the engagement of AJ Robbins CPA, LLC as the Company’s independent registered accounting firm, and appointed NVS Chartered Accountants Professional Corporation as the Company’s new independent registered accounting firm.

For the three months ended May 31, 2018 compared to the three months ended May 31, 2017

Revenues for the three months ended May 31, 2018 were $2,323,169, representing an increase of $233,199, or 11.2%, from $2,089,970 for the same period in 2017. The increase in revenue is principally due to the acquisitions of Apka Health, Inc. in April 2017 and Executive Fitness Leaders in December 2017.

Cost of revenues for the three months ended May 31, 2018 was $1,417,999, representing an increase of $41,088, or 3.0%, from $1,376,911 for the same period in 2017. The increase in cost of revenues is principally due to the increase in revenues. Cost of revenues as a percentage of revenue was 61.0% for the three months ended May 31, 2018 and 65.9% for same period in 2017. The decrease in cost of revenues as a percentage of revenue is principally due to slightly lower costs and the sale of higher profit margin services.

Operating costs for the three months ended May 31, 2018 were $1,082,007, representing an increase of $108,075, or 11.1%, from $973,932 for the same period in 2017. The increase in operating costs is attributed to an increase in both operating payroll expenses and professional fees.

Interest expense for the three months ended May 31, 2018 was $42,696, representing a decrease of $63,286, or 59.7%, from $105,982 for the same period in 2017. The decrease for the three months ended May 31, 2018 is due to less debt being outstanding resulting from the conversion of related party debentures and a related party loan into common stock in January 2018.

Net loss for the three months ended May 31, 2018 was $219,413, representing a decrease of $138,551, or 38.7%, from $357,964 for the same period in 2017. The decrease in net loss is due to the reasons described above.

For the nine months ended May 31, 2018 compared to the nine months ended May 31, 2017

Revenues for the nine months ended May 31, 2018 were $6,722,825, representing an increase of $980,096, or 17.1%, from $5,742,729 for the same period in 2017. The increase in revenue is principally due to the Company’s entry into new occupational therapy service contracts in January 2017 and the acquisitions of Apka Health, Inc. in April 2017 and Executive Fitness Leaders in December 2017.

Cost of revenues for the nine months ended May 31, 2018 was $4,133,288, representing an increase of $402,356, or 10.8%, from $3,730,932 for the same period in 2017. The increase in cost of revenues is principally due to the increase in revenues. Cost of revenues as a percentage of revenue was 61.5% for the nine months ended May 31, 2018 and 65.0% for same period in 2017. The decrease in cost of revenues as a percentage of revenue is principally due to lower costs.

Operating costs for the nine months ended May 31, 2018 were $4,065,501, representing an increase of $1,902,767, or 88.0%, from $2,162,734 for the same period in 2017. The increase in operating costs is attributed to stock-based compensation of $1,022,503 ($1,220,419 for the nine months ended May 31, 2018 compared to $197,916 for the same period in 2017), as well as an increase in both operating payroll expenses and professional fees resulting from the acquisitions of Apka Health and Executive Fitness Leaders.

Interest expense for the nine months ended May 31, 2018 was $480,981, representing an increase of $143,294, or 42.4%, from $337,687 for the same period in 2017. The increase for the nine months ended May 31, 2018 is due to interest on debt obligations and interest related to payroll withholdings originating in fiscal years 2014 and 2015.

Net loss for the nine months ended May 31, 2018 was $1,956,614, representing an increase of $1,498,869, or 327.4%, from $457,745 for the same period in 2017. The increase in net loss is due to the reasons described above.

Liquidity and Capital Resources

As shown in the accompanying financial statements, for the nine months ended May 31, 2018, the Company had a net loss of $1,956,614.

During the nine months ended May 31, 2018, the Company used cash in operating activities of $840,044 compared to $364,671 for the same period in 2017. The principal reason for the increase is the additional net loss incurred during the nine months ended May 31, 2018 as compared to the same period in 2017 and a larger increase in operating assets and liabilities during the nine months ended May 31, 2018 compared to the same period in 2017.

During the nine months ended May 31, 2018, the Company used cash in investing activities of $122,879 compared to $391,822 for the same period in 2017. The principal reason for the change is lesser amounts loaned for other receivables during the nine months ended May 31, 2018.

During the nine months ended May 31, 2018, the Company used cash of $23,072 from financing activities compared to cash provided by financing activities of $2,230,391 for the same period in 2017. The principal reason for the increase is due to the proceeds received from the sale of common stock of $2,510,550 during the nine months ended May 31, 2017.

On April 24, 2018, the Company sold 25,104 restricted shares of common stock to a non-U.S. person. The shares were sold at a price of $0.62 per share, for an aggregate purchase price of $15,564, which was provided to fund the Company’s ongoing operational and product development expenses. The issuance of shares of common stock was exempt from the registration requirements of the Securities Act in reliance upon Regulation S promulgated pursuant to the Securities Act. The issuances involved offers and sales of securities outside the United States. The offers and sales were made in offshore transactions and no directed selling efforts were made by the issuer, a distributor, their affiliates or any persons acting on their behalf. The shares were issued on April 25, 2018.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

We believe that the following critical policies affect our more significant judgments and estimates used in preparation of our financial statements.

Use of Estimates

Noncontrolling Interest

The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation, which governs the accounting for and reporting of non-controlling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance.

The net income (loss) attributed to the NCI is separately designated in the accompanying consolidated statements of operations and other comprehensive income (loss).

Revenue Recognition

Stock-Based Compensation

Basic and Diluted Earnings Per Share

Foreign Currency Transactions and Comprehensive Income

U.S. GAAP generally requires recognized revenue, expenses, gains and losses be included in net income. Certain statements, however, require entities to report specific changes in assets and liabilities, such as gain or loss on foreign currency translation, as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. The functional currency of the Company’s Canadian subsidiaries is the Canadian dollar. Translation gains (losses) are classified as an item of other comprehensive income in the stockholders’ equity section of the balance sheet.

New Accounting Pronouncements

Recent accounting pronouncements issued by the FASB, the AICPA and the SEC did not or are not believed by management to have a material effect on the Company’s financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

The Company’s President and Principal Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of May 31, 2018. Based upon such evaluation, the Company’s President and Principal Financial Officer have concluded that, as of May 31, 2018, the Company’s disclosure controls and procedures were not effective. The Company’s disclosure controls and procedures were determined to be ineffective due to the lack of segregation of duties. Currently, management contracts with an outside certified public accountant to assist the Company with preparation of its filings required pursuant to the Exchange Act.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or 15d-15 of the Exchange Act that occurred during the fiscal quarter ended May 31, 2018 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Except as set forth herein, as of the date of this Quarterly Report on Form 10-Q, there are no material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which we are a party or which our property is the subject. In addition, none of our officers, directors, affiliates or 5% stockholders (or any associates thereof) is a party adverse to us, or has a material interest adverse to us, in any material proceeding.

The Company is currently involved in litigation in Taiwan, wherein the Company engaged Formosan Brothers, a Taiwan-based law firm, to file a criminal complaint with the Taipei, Taiwan District Prosecutors Office (the “Prosecutor”) seeking criminal charges against the principal partners of ETS, Mr. Chen, Chong-Ping (“Alan Chen”) and Huang, Ren-Ju (“Mr. Huang”) for fraud in connection with their actions related to the Company’s business initiative to commercialize the HPBS technology in Asia.

On December 25, 2015, the Company received a written ruling from the Taiwan District Prosecutor’s Office that it had declined to prosecute Alan Chen and Mr. Huang for criminal fraud.

On January 4, 2016, the Company filed an appeal to the Taiwan High Prosecution Office. On February 1, 2016, the Company’s appeal was granted and the case was returned to the Taiwan District Court Prosecutor with instructions to conduct a new investigation of the facts and evidence. The Company intends to continue to pursue this matter until a final resolution is obtained.

On June 12, 2017, Mr. Chen was indicted and charged with criminal fraud and the Company was informed that Mr. Huang will not be indicted.

On the recommendation of both the Company’s Taiwan attorneys and the judge overseeing the criminal fraud case against Mr. Chen, the Company filed an ancillary civil action against Mr. Chen allowing the judge overseeing the criminal fraud case to initiate a mediation proceeding between the Company and Mr. Chen for a potential financial settlement. Mr. Chen did not appear for an August 1, 2017 mediation hearing but did appear for the subsequent criminal hearing. The defendant pleaded not guilty and the judge notified both parties the case will proceed to trial.

In late August 2017, the Company filed a Confiscation Application with the Taiwan Taipei District Court Criminal Division requesting the prosecutor’s office search for and confiscate any assets the prosecutor can locate in the name of Alan Chen as security for the compensation to the Company pending the criminal trial’s outcome. As of the date of this filing, the Company is awaiting the results of this Confiscation Application.

On November 23, 2017, Mr. Chen and the Company’s legal team appeared for a hearing to determine accepted facts and any additional evidence.

On April 26, 2018, Mr. Chen and the Company’s legal team appeared for a hearing before the Taiwan Taipei District Court Criminal Division. The judge directed certain evidentiary related questions and comments to both Mr. Chen and the Company’s legal counsel. Both parties were requested to provide the court and the prosecutor with any additional briefs and evidence. The next hearing date has not been established by the court.

ITEM 1A. RISK FACTORS

Not required for smaller reporting companies.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

There have been no defaults in any material payments during the covered period.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a) None.

(b) There have been no material changes to the procedures by which security holders may recommend nominees to the Company’s Board of Directors since the Company last provided disclosure in response to the requirements of Item 407(c)(3) of Regulation S-K.

ITEM 6. EXHIBITS

Exhibit Number		Description of Document

31.1		Rule 13a-14(a) Certification of Principal Executive Officer

31.2		Rule 13a-14(a) Certification of Principal Financial Officer

32.1		Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Principal Executive Officer and Principal Financial Officer

101.INS		XBRL Instance Document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase

101.DEF		XBRL Taxonomy Extension Definition Linkbase

101.LAB		XBRL Taxonomy Extension Labels Linkbase

101.PRE		XBRL Taxonomy Extension Presentation Linkbase

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned, thereto duly authorized:

	NOVO INTEGRATED SCIENCES, INC.

Dated: July 11, 2018	By:	/s/ Klara Radulyne
		Klara Radulyne
		Principal Financial Officer

EX-31.1 2 ex31-1.htm

EXHIBIT 31.1

CERTIFICATIONS

I, Christopher David, certify that:

1.	I have reviewed this quarterly report on Form 10-Q for the quarter ended May 31, 2018 of Novo Integrated Sciences, Inc.; and

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; and

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 11, 2018	By:	/s/ Christopher David
		Christopher David
		President (principal executive officer)

EX-31.2 3 ex31-2.htm

EXHIBIT 31.2

CERTIFICATIONS

I, Klara Radulyne, certify that:

1.	I have reviewed this quarterly report on Form 10-Q for the quarter ended May 31, 2018 of Novo Integrated Sciences, Inc.; and

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; and

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 11, 2018	By:	/s/ Klara Radulyne
		Klara Radulyne
		Principal Financial Officer

EX-32.1 4 ex32-1.htm

EXHIBIT 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Novo Integrated Sciences, Inc. (the “Company”) on Form 10-Q for the quarter ended May 31, 2018 as filed with the Securities and Exchange Commission (the “Report”), I, Christopher David, President of the Company, and I, Klara Radulyne, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: July 11, 2018	/s/ Christopher David
	Christopher David, President (principal executive officer)

	/s/ Klara Radulyne
	Klara Radulyne, Principal Financial Officer (principal financial officer)

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

EX-101.INS 5 nvos-20180531.xml XBRL INSTANCE FILE 0001138978 2017-09-01 2018-05-31 0001138978 2018-07-09 0001138978 2017-08-31 0001138978 2018-05-31 0001138978 NVOS:TurbineTruckEnginesIncMember 2017-09-01 2018-05-31 0001138978 NVOS:TurbineTruckEnginesIncOneMember 2017-09-01 2018-05-31 0001138978 NVOS:ShareExchangeAgreementMember NVOS:NHLMember 2017-04-23 2017-04-25 0001138978 NVOS:PeriodEndMember currency:CAD 2017-08-31 0001138978 NVOS:NovoHealthnetKemptvilleCentreIncMember 2018-05-31 0001138978 2016-09-01 2017-05-31 0001138978 us-gaap:LeaseholdImprovementsMember 2017-09-01 2018-05-31 0001138978 NVOS:ClinicalEquipmentMember 2017-09-01 2018-05-31 0001138978 us-gaap:ComputerEquipmentMember 2017-09-01 2018-05-31 0001138978 us-gaap:OfficeEquipmentMember 2017-09-01 2018-05-31 0001138978 us-gaap:FurnitureAndFixturesMember 2017-09-01 2018-05-31 0001138978 NVOS:NotesReceivableDatedNovemberFifteenTwoThousandAndFourteenMember 2017-08-31 0001138978 NVOS:NotesReceivableDatedAprilOneTwoThousandAndFifteenAndMayTwentyThreeTwoThousandSeventeenMember 2017-08-31 0001138978 NVOS:AdvanceToCorporationOneMember 2017-08-31 0001138978 NVOS:AdvanceToCorporationTwoMember 2017-08-31 0001138978 NVOS:NotesReceivableDatedNovemberFifteenTwoThousandAndFourteenMember 2016-09-01 2017-08-31 0001138978 NVOS:NotesReceivableDatedNovemberFifteenTwoThousandAndFourteenMember 2017-09-01 2018-05-31 0001138978 NVOS:NotesReceivableDatedAprilOneTwoThousandAndFifteenAndMayTwentyThreeTwoThousandSeventeenMember 2016-09-01 2017-08-31 0001138978 NVOS:NotesReceivableDatedAprilOneTwoThousandAndFifteenAndMayTwentyThreeTwoThousandSeventeenMember 2017-09-01 2018-05-31 0001138978 us-gaap:LeaseholdImprovementsMember 2017-08-31 0001138978 NVOS:ClinicalEquipmentMember 2017-08-31 0001138978 us-gaap:ComputerEquipmentMember 2017-08-31 0001138978 us-gaap:OfficeEquipmentMember 2017-08-31 0001138978 us-gaap:FurnitureAndFixturesMember 2017-08-31 0001138978 us-gaap:LeaseholdImprovementsMember 2018-05-31 0001138978 NVOS:ClinicalEquipmentMember 2018-05-31 0001138978 us-gaap:ComputerEquipmentMember 2018-05-31 0001138978 us-gaap:OfficeEquipmentMember 2018-05-31 0001138978 us-gaap:FurnitureAndFixturesMember 2018-05-31 0001138978 NVOS:NotePayableOneMember 2017-08-31 0001138978 NVOS:NotePayableTwoMember 2017-08-31 0001138978 NVOS:NotePayableThreeMember 2017-08-31 0001138978 NVOS:NotePayableOneMember 2018-05-31 0001138978 NVOS:NotePayableTwoMember 2018-05-31 0001138978 NVOS:NotePayableThreeMember 2018-05-31 0001138978 NVOS:NotePayableOneMember 2016-09-01 2017-08-31 0001138978 NVOS:NotePayableTwoMember 2016-09-01 2017-08-31 0001138978 NVOS:NotePayableThreeMember 2016-09-01 2017-08-31 0001138978 NVOS:ExercisePriceRangeOneMember 2018-05-31 0001138978 NVOS:ExercisePriceRangeTwoMember 2018-05-31 0001138978 NVOS:ExercisePriceRangeThreeMember 2018-05-31 0001138978 NVOS:ExercisePriceRangeFourMember 2018-05-31 0001138978 NVOS:ExercisePriceRangeFiveMember 2018-05-31 0001138978 NVOS:NotePayableOneMember 2017-09-01 2018-05-31 0001138978 NVOS:NotePayableTwoMember 2017-09-01 2018-05-31 0001138978 NVOS:NotePayableThreeMember 2017-09-01 2018-05-31 0001138978 2017-05-31 0001138978 NVOS:FiveDebenturesMember 2013-09-30 0001138978 NVOS:FiveDebenturesMember currency:CAD 2013-09-30 0001138978 NVOS:FiveDebenturesMember 2017-11-29 2017-12-02 0001138978 NVOS:TwoThousandAndFifteenIncentiveCompensationPlanMember srt:MaximumMember 2015-09-07 2015-09-08 0001138978 NVOS:TwoThousandAndFifteenIncentiveCompensationPlanMember 2016-09-01 2017-08-31 0001138978 NVOS:ExercisePriceRangeSixMember 2018-05-31 0001138978 2016-08-31 0001138978 NVOS:PeriodEndMember currency:CAD 2018-05-31 0001138978 NVOS:PeriodEndMember currency:CAD 2017-05-31 0001138978 NVOS:AveragePeriodMember currency:CAD 2018-05-31 0001138978 NVOS:AveragePeriodMember currency:CAD 2017-05-31 0001138978 NVOS:NotesReceivableDatedNovemberFifteenTwoThousandAndFourteenMember 2018-05-31 0001138978 NVOS:NotesReceivableDatedAprilOneTwoThousandAndFifteenAndMayTwentyThreeTwoThousandSeventeenMember 2018-05-31 0001138978 NVOS:AdvanceToCorporationOneMember 2018-05-31 0001138978 NVOS:AdvanceToCorporationTwoMember 2018-05-31 0001138978 NVOS:TwoThousandEighteenMember 2017-09-01 2018-05-31 0001138978 NVOS:ExercisePriceRangeSevenMember 2018-05-31 0001138978 2018-03-01 2018-05-31 0001138978 2017-03-01 2017-05-31 0001138978 NVOS:ApkaHealthIncMember 2018-05-31 0001138978 NVOS:ExecutiveFitnessLeadersMember 2018-05-31 0001138978 2018-01-29 2018-01-31 0001138978 2018-01-31 0001138978 NVOS:AssetPurchaseAgreementMember NVOS:ExecutiveFitnessLeadersMember 2017-11-28 2017-12-02 0001138978 NVOS:FiveDebenturesMember 2013-09-29 2013-09-30 0001138978 us-gaap:RestrictedStockMember NVOS:ExecutiveFitnessLeadersMember 2017-09-01 2018-05-31 0001138978 NVOS:TwoThousandAndEighteenIncentivePlanMember 2018-01-15 2018-01-16 0001138978 2016-09-01 2017-08-31 0001138978 NVOS:ExercisePriceRangeEightMember 2018-05-31 0001138978 NVOS:ExercisePriceRangeNineMember 2018-05-31 0001138978 srt:MinimumMember 2017-09-01 2018-05-31 0001138978 srt:MaximumMember 2017-09-01 2018-05-31 0001138978 NVOS:FiveDebenturesMember 2017-11-30 0001138978 us-gaap:RestrictedStockMember 2017-09-01 2018-05-31 0001138978 NVOS:AssetPurchaseAgreementMember NVOS:ExecutiveFitnessLeadersMember 2018-05-31 0001138978 NVOS:DebenturesMember 2018-01-29 2018-01-31 0001138978 NVOS:DebenturesMember 2018-01-31 0001138978 2018-04-23 0001138978 NVOS:TwoThousandAndEighteenIncentivePlanMember 2017-09-01 2018-05-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure Novo Integrated Sciences, Inc. 0001138978 10-Q 2018-05-31 false --08-31 Smaller Reporting Company Q3 214698824

1896572

863696

1674166

110315

1128898

1311574

372024

397168

39940

299550

32534

289200

30848

77120

252536

205433

302951

331101

5514390

4840079

1703342

1310277

341657

368838

403119

142413

414965

1812613

1094488

13171

6164

414351

399699

9802580

4556283

201837

214699

3381643

9992354

1240844

1144998

-9091977

-11041720

5514390

4840079

6722825

5742729

2323169

2089970

4133288

3730932

1417999

1376911

2589537

2011797

905170

713059

86640

34934

17900

16374

4065501

2162734

1082007

973932

-1475964

-150937

-176837

-260873

-480650

-306808

-42576

-97091

-1956614

-457745

-219413

-357964

-6871

-5714

-1515

-1223

-1949743

-452031

-217898

-356741

-2052460

-176064

-227918

-143178

-0.01

-0.00

207568978

169876075

214684089

173965632

0.001

1000000

0.001

499000000

201837254

214698824

201837254

214698824

52287

46870

-343102

-89245

39552

-194880

303488

234548

-46881

89953

-1032876

1563851

227113

92593

83950

28621

38929

375450

7056

120285

Delaware State of Nevada 2000-11-27 2008-02-20

0.80

25104

167797406

384110

0.7988

0.7712

0.7405

0.7901

0.7509

10030000

P5Y

P3Y

P5Y

0.08

2017-10-31

2019-03-27

2019-04-08

2017-10-31

2019-03-27

2019-04-08

2016-09-30

571056

640979

329985

177514

21020

24319

18218

342305

201505

24873

32339

39957

268105

309878

427522

405863

7134

399400

20988

385600

20263

6164

399699

405863

7860000

10030000

2170000

9030000

0.27

0.30

0.42

0.30

P3Y6M10D

660000

2318200

2128200

10030000

5500000

1000000

50000

120000

2000000

100000

1000000

250000

10000

0.16

0.32

0.33

0.40

0.42

0.50

0.62

0.80

2.00

9030000

5500000

50000

120000

2000000

100000

1000000

250000

10000

0.16

0.32

0.33

0.40

0.42

0.50

0.62

0.80

2.00

0.0183

P2Y6M

P3Y6M

3.14

0.00

0.41

0.58

0.42

1220419

197916

2023

612343

594842

0.85

6402512

4968900

3894809

-20537

-26535

-4288190

283796

-4267653

310331

3978861

2127800

1064107

957558

331

30879

120

8891

480981

337687

42696

105982

-1956614

-457745

-219413

-357964

6904

233155

507636

480818

0.08

2016-11-15

2018-05-23

0.072

0.00

0.06

0.072

0.00

0.06

P4Y10M17D

2018

5114327

1234404

399400

609248

385600

223648

225383

170588

129884

The per share price used for the conversion of this loan was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price.

The per share price used for the conversion was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price.

The per share price used for the conversion of each debenture was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price.

5000000

10000000

4987500

9950000

2019-09-30

1162009

1121859

3567

615

3567

615

54512

P4Y9M22D

15564

233155

NVOS

3650030

2777871

4273902

2922180

-95846

281681

-8505

214786

813125

5122899

1976483

12452356

10475872

0.4114

7772

384110

0.75

31536

12249

15564

2510550

375450

-39503

9542

31580

159874

-840044

-364671

-122879

-391822

-23072

2230391

Note 1 - Organization and Basis of Presentation   Organization and Line of Business   Novo Integrated Sciences, Inc. was incorporated in Delaware on November 27, 2000, under the name Turbine Truck Engines, Inc. On February 20, 2008, the Company was re-domiciled to the State of Nevada. Effective July 12, 2017, the Company’s name was changed to Novo Integrated Sciences, Inc. When used herein, the terms the “Company,” “we,” “us” and “our” refer to Novo Integrated Sciences, Inc. and its consolidated subsidiaries.   We provide specialized physiotherapy, chiropractic care, occupational therapy, eldercare, laser therapeutics, massage therapy, acupuncture, chiropodist, neurological functions, kinesiology, private personal training and dental services to our clients. Our multi-disciplinary primary healthcare services and protocols are directed at assessment, treatment, management, rehabilitation and prevention through our 14 corporate owned clinics, 86 affiliate clinics, 9 retirement homes and over 130 long-term care facilities throughout Canada. Through our contractual relationships, we provide specialized services to over 300,000 patients annually. No employee of the Company or any of its subsidiaries practices primary care medicine and the Company’s services do not require a medical or nursing license.   On April 25, 2017 (the “Effective Date”), the Company entered into a Share Exchange Agreement (the “Share Exchange Agreement”) by and between (i) the Company; (ii) NHL, (iii) ALMC-ASAP Holdings Inc. (“ALMC”); (iv) Michael Gaynor Family Trust (the “MGFT”); (v) 1218814 Ontario Inc. (“1218814”) and (vi) Michael Gaynor Physiotherapy Professional Corp. (“MGPP,” and together with ALMC, MGFT and 1218814, the “NHL Shareholders”). Pursuant to the terms of the Share Exchange Agreement, the Company agreed to acquire from the NHL Shareholders all of the shares of both common and preferred stock of NHL, held by the NHL Shareholders, in exchange for the issuance by the Company to the NHL Shareholders of shares of the Company’s common stock, such that following the closing of the Share Exchange Agreement, the NHL Shareholders would own 167,797,406 restricted shares of Company common stock, representing 85% of the issued and outstanding Company common stock, calculated including all granted and issued options or warrants to acquire the Company common stock as of the Effective Date, but to exclude shares of Company common stock that are subject to a then-current Regulation S offering that was undertaking by the Company (the “Exchange”).   On May 9, 2017, the Exchange closed and, as a result, NHL became a wholly owned subsidiary of Novo Integrated Sciences, Inc.   The Exchange was accounted for as a reverse acquisition under the purchase method of accounting since NHL obtained control of Novo Integrated Sciences, Inc. Accordingly, the Exchange was recorded as a recapitalization of NHL, with NHL being treated as the continuing entity. The historical financial statements presented are the financial statements of NHL. The Share Exchange Agreement was treated as a recapitalization and not as a business combination; therefore, no pro forma information is disclosed. At the closing date of the Exchange, the net assets of the legal acquirer, Novo Integrated Sciences, Inc., were $6,904.   On May 9, 2017, our Board of Directors determined, in connection with the closing of the Exchange, to change our fiscal year end from December 31 to August 31 but did not memorialize such determination in writing. On July 17, 2017, the Board ratified and memorialized in writing its May 9, 2017 determination regarding the change in fiscal year end.   The unaudited consolidated financial statements are prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments, consisting only of normal recurring adjustments, which in the opinion of management, are necessary to fairly state the Company’s financial position, the results of its operations, and cash flows for the periods presented. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations. The results of operations for the three and nine months ended May 31, 2018 are not necessarily indicative of the results for the year ending August 31, 2018.   Basis of Presentation   The accompanying consolidated financial statements were prepared in conformity with U.S. GAAP. The Company’s Canadian subsidiaries’ functional currency is the Canadian Dollar (“CAD”); however, the accompanying consolidated financial statements were translated and presented in United States Dollars (“$” or “USD”).   Foreign Currency Translation   The accounts of the Company’s Canadian subsidiaries are maintained in CAD. The accounts of these subsidiaries are translated into USD in accordance with the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Transaction, with the CAD as the functional currency. According to Topic 830, all assets and liabilities are translated at the exchange rate on the balance sheet date, stockholders’ equity is translated at historical rates and statement of operations items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC Topic 220, Comprehensive Income. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the statement of operations and comprehensive income. The following table details the exchange rates used for the respective periods:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">May 31, 2017</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">August 31, 2017</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 46%; line-height: 107%">Period end: CAD to USD exchange rate</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 15%; text-align: right; line-height: 107%">0.7712</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 15%; text-align: right; line-height: 107%">0.7405</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 15%; text-align: right; line-height: 107%">0.7988</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Average period: CAD to USD exchange rate</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%">$</td> <td style="text-align: right; line-height: 107%">0.7901</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%">$</td> <td style="text-align: right; line-height: 107%">0.7509</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> </table>

Note 2 – Summary of Significant Accounting Policies   Use of Estimates   The preparation of consolidated 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 disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.   Principles of Consolidation   The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, NHL, Novo Peak Health Inc., Novo Healthnet Rehab Limited, Novo Assessments Inc., an 80% interest in Novo Healthnet Kemptville Centre, Inc., a Back on Track Physiotherapy and Health Centre clinic operated by NHL, and a 50% stake in a joint venture with the Sophie Freeman Dental Hygiene Professional Corporation operated as Novo Dental. All of the Company’s subsidiaries are incorporated under the laws of the Province of Ontario, Canada. All intercompany transactions have been eliminated.   Noncontrolling Interest   The Company follows FASB ASC Topic 810, Consolidation, which governs the accounting for and reporting of non-controlling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance.   The net income (loss) attributed to the NCI is separately designated in the accompanying consolidated statements of operations and other comprehensive income (loss).   Cash Equivalents   For the purpose of the statement of cash flows, cash equivalents include time deposits, certificate of deposits, and all highly liquid debt instruments with original maturities of three months or less.   Accounts Receivable   Accounts receivable are recorded, net of allowance for doubtful accounts and sales returns. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentration, customer credit worthiness, current economic trends and changes in customer payment patterns to determine if the allowance for doubtful accounts is adequate. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Delinquent account balances are written-off after management has determined that the likelihood of collection is not probable and known bad debts are written off against the allowance for doubtful accounts when identified. As of May 31, 2018 and August 31, 2017, the allowance for uncollectible accounts receivable was $480,818 and $507,636, respectively.   Property and Equipment   Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the declining balance method for substantially all assets with estimated lives as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 57%; line-height: 107%">Leasehold improvements</td> <td style="width: 35%; line-height: 107%">5 years</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Clinical equipment</td> <td style="line-height: 107%">5 years</td></tr> <tr style="vertical-align: top"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Computer equipment</td> <td style="line-height: 107%">3 years</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Office equipment</td> <td style="line-height: 107%">5 years</td></tr> <tr style="vertical-align: top"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Furniture and fixtures</td> <td style="line-height: 107%">5 years</td></tr> </table>   Long-Lived Assets   The Company applies the provisions of ASC Topic 360, Property, Plant, and Equipment, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair values are reduced for the cost of disposal. Based on its review at May 31, 2018 and August 31, 2017, the Company believes there was no impairment of its long-lived assets.   Goodwill   Goodwill represents the excess of purchase price over the underlying net assets of businesses acquired. Under accounting requirements, goodwill is not amortized but is subject to annual impairment tests. At May 31, 2018, the Company recorded goodwill of $385,600 and $223,648, respectively, related to its acquisition of Apka Health, Inc. during the fiscal year ended August 31, 2017 and Executive Fitness Leaders during the fiscal year ended August 31, 2018.   Acquisition Deposits   The Company has signed letters of understanding with two potential acquisition candidates which includes refundable acquisition deposits totaling $1,121,859 and $1,162,009 at May 31, 2018 and August 31, 2017, respectfully.   Fair Value of Financial Instruments   For certain of the Company’s financial instruments, including cash and equivalents, restricted cash, accounts receivable, advances to suppliers, accounts payable, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities.   FASB ASC Topic 820, Fair Value Measurements and Disclosures, requires disclosure of the fair value of financial instruments held by the Company. FASB ASC Topic 825, Financial Instruments, defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 34px; text-align: justify; line-height: 107%"> </td> <td style="width: 24px; text-align: justify; line-height: 107%">●</td> <td style="text-align: justify; line-height: 107%">Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%">●</td> <td style="text-align: justify; line-height: 107%">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%">●</td> <td style="text-align: justify; line-height: 107%">Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement. </td></tr> </table>   The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic 480, Distinguishing Liabilities from Equity, and FASB ASC Topic 815, Derivatives and Hedging.   As of May 31, 2018 and August 31, 2017, respectively, the Company did not identify any assets and liabilities required to be presented on the balance sheet at fair value.   Revenue Recognition   The Company recognizes revenue on arrangements in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers. Revenue related to healthcare services provided is recognized at the time services have been performed. Gross service revenue is recorded in the accounting records on an accrual basis at the provider’s established rates, regardless of whether the health care entity expects to collect that amount. The Company reserves a provision for contractual adjustment and discounts and deduct from gross service revenue. The Company recognizes revenue at the time the services have been performed. The Company reports revenues net of any sales, use and value added taxes.    Income Taxes   The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.   Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company has no material uncertain tax positions for any of the reporting periods presented.   Stock-Based Compensation   The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.   Basic and Diluted Earnings Per Share   Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share. Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding. Diluted EPS is based on the assumption that all dilutive securities are converted. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. There were 10,030,000 options/warrants outstanding as of May 31, 2018. Due to the net loss incurred potentially dilutive instruments would be anti-dilutive. Accordingly, diluted loss per share is the same as basic loss for all periods presented.   Foreign Currency Transactions and Comprehensive Income   U.S. GAAP generally requires recognized revenue, expenses, gains and losses be included in net income. Certain statements, however, require entities to report specific changes in assets and liabilities, such as gain or loss on foreign currency translation, as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. The functional currency of the Company’s Canadian subsidiaries is the Canadian dollar. Translation gains of $1,144,998 and $1,240,844 at May 31, 2018 and August 31, 2017, respectively, are classified as an item of other comprehensive income in the stockholders’ equity section of the balance sheet.   Statement of Cash Flows   Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rates. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets.   Recent Accounting Pronouncements   In January 2017, the FASB issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. The adoption of this ASU did not have an impact on its financial statements.   In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents on the statement of cash flows and disclosure of how the statement of cash flows reconciles to the balance sheet if restricted cash is shown separately from cash and cash equivalents on the balance sheet. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The adoption of this ASU did not have an impact on its financial statements.   In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its financial statements.   In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides guidance for targeted changes with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. ASU 2016-15 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The adoption of this ASU did not have an impact on its financial statements.   In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its financial statements.   In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company adopted this ASU beginning on March 1, 2018 and used the modified prospective method of adoption. The adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures.   Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

Note 3 – Related Party Transactions   Due to related parties   Amounts loaned to the Company by stockholders and officers of the Company that are payable upon demand.   At August 31, 2017, the amount due to related parties was $1,812,613. On January 31, 2018, a related party converted $813,125 of outstanding amounts loaned to the Company into 1,976,483 shares of the Company’s common stock. The per share price used for the conversion of this loan was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price. In addition, during the nine months ended May 31, 2018, the Company repaid advances from related parties of $31,580. At May 31, 2018, the amount due to related parties was $1,094,488.

Note 4 – Other Receivables   Other receivables at May 31, 2018 and August 31, 2017 consisted of the following:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">August 31, 2017</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%">Notes receivable dated November 15, 2014; accrues interest at 8% per annum; secured by assets; due November 15, 2016.</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">-</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">39,940</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%">Notes receivable dated April 1, 2015 and amended on May 23, 2017; accrued interest at 8% per annum; secured by certain assets; due May 23, 2018. This receivable is currently past due.</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">289,200</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">299,550</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%">Advance to corporation; non-interest bearing; unsecured; payable upon demand</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">30,848</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">32,534</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%">Advance to corporation; non-interest bearing; unsecured; payable upon demand</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">77,120</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">-</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Total other receivables</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">397,168</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">372,024</td> <td style="line-height: 107%"> </td></tr> </table>

Note 5 – Property and Equipment   Property and equipment at May 31, 2018 and August 31, 2017 consisted of the following:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">August 31, 2017</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%">Leasehold Improvements</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">342,305</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">329,985</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Clinical equipment</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">201,505</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">177,514</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Computer equipment</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">24,873</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">21,020</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Office equipment</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">32,339</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">24,319</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Furniture and fixtures</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">39,957</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">18,218</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">640,979</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">571,056</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Accumulated depreciation</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">(309,878</td> <td style="line-height: 107%">)</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">(268,105</td> <td style="line-height: 107%">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Total</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">331,101</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">302,951</td> <td style="line-height: 107%"> </td></tr> </table>   Depreciation expense for the nine months ended May 31, 2018 and 2017 was $52,287 and $46,870, respectively.

Note 6 – Notes Payable   Notes payable at May 31, 2018 and August 31, 2017 consisted of the following:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">August 31, 2017</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%">Notes payable to financial institution; accrues interest at 7.2% per annum; monthly principal and interest payment of $3,567; unsecured; due October 2017. This note has been fully repaid.</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">-</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">7,134</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%">Notes payable issued in connection with purchase of assets; accrues interest at 0% per annum; due on March 27, 2019.</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">385,600</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">399,400</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%">Note payable assumed with acquisition; accrues interest at 6% per annum; monthly principal and interest payment of $615; unsecured; due April 8, 2019.</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">20,263</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">20,988</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">405,863</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">427,522</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Current portion</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">(6,164</td> <td style="line-height: 107%">)</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">(13,171</td> <td style="line-height: 107%">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Long-term portion</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">399,699</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">414,351</td> <td style="line-height: 107%"> </td></tr> </table>   Aggregate future maturities of notes payable are as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; line-height: 107%">Twelve months ending May 31,</td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 71%; text-align: right; line-height: 107%">2019</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 26%; text-align: right; line-height: 107%">6,164</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: right; line-height: 107%">2020</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">399,699</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">405,863</td> <td style="line-height: 107%"> </td></tr> </table>

Note 7 – Debentures, related parties   On September 30, 2013, the Company issued five debentures totaling CAD6,402,512 ($4,968,900 at November 30, 2017) in connection with the acquisition of certain business assets. The holders of the debentures are current stockholders, officers and/or affiliates of the Company. The debentures are secured by all the assets of the Company, accrue interest at 8% per annum and were originally due on September 30, 2016. On December 2, 2017, the debenture holders agreed to extend the due date to September 30, 2019.   On January 31, 2018, the debenture holders converted 75% of the debenture value of $3,894,809 plus accrued interest of $414,965 into 10,475,872 shares of the Company’s common stock. The per share price used for the conversion of each debenture was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price. At May 31, 2018, the amount of debentures outstanding was $1,234,404.

Note 8 – Stockholders’ Deficit   Convertible preferred stock   The Company has authorized 1,000,000 shares of $0.001 par value convertible preferred stock. At May 31, 2018 and August 31, 2017 there were 0 and 0 convertible preferred shares issued and outstanding, respectively.   Common stock   The Company has authorized 499,000,000 shares of $0.001 par value common stock. At May 31, 2018 and August 31, 2017 there were 214,698,824 and 201,837,254 common shares issued and outstanding, respectively.   During the nine months ended May 31, 2018, the Company issued 384,110 restricted shares of common stock for the acquisition of Executive Fitness Leaders valued at $233,155. The value was based on the closing price of the Company’s common stock on the acquisition date. The shares were issued on December 5, 2017.   During the nine months ended May 31, 2018, the Company issued 12,452,356 restricted shares of common stock for the conversion of debt totaling $5,122,899. The per share price used for the conversion was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price. The shares were issued on February 9, 2018.   In addition, during the same period, the Company issued 25,104 restricted shares of common stock for a $15,564 which was provided to fund the Company’s ongoing operational and product development expenses. The shares were sold at a price of $0.62 per share which was determined as the per share closing price as of the close of business on April 23, 2018. The issuance of shares of common stock was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) in reliance upon Regulation S promulgated pursuant to the Securities Act. The issuances involved offers and sales of securities outside the United States. The offers and sales were made in offshore transactions and no directed selling efforts were made by the issuer, a distributor, their affiliates or any persons acting on their behalf. The shares were issued on April 25, 2018.   Stock options/warrants   On September 8, 2015, the Company adopted the 2015 Incentive Compensation Plan (the “2015 Plan”), which authorized the issuance of up to 5,000,000 shares of common stock to employees, officers, directors or independent consultants of the Company, provided that no person can be granted shares under the 2015 Plan for services related to raising capital or promotional activities. During 2017 and 2016, the Company did not grant any awards under the 2015 Plan. As of August 31, 2017, 4,987,500 shares were available under the 2015 Plan for future grants, awards, options or share issuances. However, because the shares issuable under the 2015 Plan or issuable upon conversion of awards granted under the 2015 Plan are no longer registered under the Securities Exchange Act of 1934, as amended, the Company does not intend to issue any additional grants under the 2015 Plan.   On January 16, 2018, the Company adopted the Novo Integrated Sciences, Inc. 2018 Incentive Plan (the “2018 Plan”). Under the 2018 Plan, 10,000,000 shares of common stock are authorized for issuance to employees, non-employees, directors and key consultants to the Company or its subsidiaries. The 2018 Plan authorizes equity-based and cash-based incentives for participants. There were 9,950,000 shares available for award at May 31, 2018 under the 2018 Plan.   The following is a summary of stock option/warrant activity:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Weighted</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Weighted</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Average</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Options/</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Average</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Remaining</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Aggregate</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Warrants</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Exercise</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Contractual</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Intrinsic</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Outstanding</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Price</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Life</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Value</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%; line-height: 107%">Outstanding, August 31, 2017</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%">7,860,000</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 11%; text-align: right; line-height: 107%">0.27</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%">3.53</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 11%; text-align: right; line-height: 107%">660,000</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Granted</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2,170,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.42</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Forfeited</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">-</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Exercised</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">-</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Outstanding, May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">10,030,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.30</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">4.81</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2,318,200</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Exercisable, May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">9,030,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%">$</td> <td style="text-align: right; line-height: 107%">0.30</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">4.88</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%">$</td> <td style="text-align: right; line-height: 107%">2,128,200</td> <td style="line-height: 107%"> </td></tr> </table>   The per share exercise prices for options/warrants outstanding at May 31, 2018 was as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="5" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Outstanding</td> <td style="line-height: 107%"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Exercisable</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 107%">Number of</td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Number of</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 107%">Options/</td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Exercise</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Options/</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Exercise</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Warrants</td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Price Per Share</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Warrants</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Price Per Share</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 25%; text-align: right; line-height: 107%">5,500,000</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 22%; text-align: right; line-height: 107%">0.16</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 22%; text-align: right; line-height: 107%">5,500,000</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 22%; text-align: right; line-height: 107%">0.16</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: right; line-height: 107%">1,000,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.32</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">-</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.32</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: right; line-height: 107%">50,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.33</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">50,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.33</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: right; line-height: 107%">120,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.40</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">120,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.40</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: right; line-height: 107%">2,000,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.42</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2,000,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.42</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: right; line-height: 107%">100,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.50</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">100,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.50</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: right; line-height: 107%">1,000,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.62</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">1,000,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.62</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: right; line-height: 107%">250,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.80</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">250,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.80</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">10,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2.00</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">10,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2.00</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">10,030,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">9,030,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> </table>   For options granted during fiscal year 2017 where the exercise price equaled the stock price at the date of the grant, the weighted-average fair value of such options was $0.58 and the weighted-average exercise price of such options/warrants was $0.42. No options were granted during fiscal year 2017 where the exercise price was less than the stock price at the date of grant or the exercise price was greater than the stock price at the date of grant.   For options granted during fiscal year 2018 where the exercise price equaled the stock price at the date of the grant, the weighted-average fair value of such options was $0.41 and the weighted-average exercise price of such options/warrants was $0.42. No options were granted during fiscal year 2018 where the exercise price was less than the stock price at the date of grant or the exercise price was greater than the stock price at the date of grant.   The fair value of the stock options is being amortized to stock option expense over the vesting period. The Company recorded stock option expense of $1,220,419 during the nine months ended May 31, 2018. At May 31, 2018, the unamortized stock option expense was $54,512.   The assumptions used in calculating the fair value of options granted using the Black-Scholes option-pricing model for options granted are as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 67%; line-height: 107%">Risk-free interest rate</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 30%; text-align: right; line-height: 107%">1.83</td> <td style="width: 1%; line-height: 107%">%</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Expected life of the options</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2.5 to 3.5 years</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Expected volatility</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">314</td> <td style="line-height: 107%">%</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Expected dividend yield</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0</td> <td style="line-height: 107%">%</td></tr> </table>   During the nine months ended May 31, 2018, the Company extended the expiration date of 5,600,000 options by three years. The change in fair value between the options using the original terms and the options using the new expiration dates was $31,536 which has been recorded as expense in the accompanying consolidated statement of operations.

Note 9 – Commitments and Contingencies   Litigation   The Company is party to certain legal proceedings from time to time incidental to the conduct of its business. These proceedings could result in fines, penalties, compensatory or treble damages or non-monetary relief. The nature of legal proceedings is such that the Company cannot assure the outcome of any particular matter, and an unfavorable ruling or development could have a materially adverse effect on our consolidated financial position, results of operations and cash flows in the period in which a ruling or settlement occurs. However, based on information available to the Company’s management to date, the Company’s management does not expect that the outcome of any matter pending against the Company is likely to have a materially adverse effect on the Company’s consolidated financial position as of May 31, 2018, results of operations, cash flows or liquidity of the Company.   Leases   The Company leases its office space and certain facilities under long-term operating leases expiring through fiscal year 2023. Rent expense under these leases was $612,343 and $594,842 for the nine months ended May 31, 2018 and 2017, respectively.

Note 10 – Acquisition of Assets   On December 1, 2017, the Company and Executive Fitness Leaders, located in Ottawa Ontario Canada, entered into an Asset Purchase Agreement, pursuant to which the Company acquired substantially all of the assets of Executive Fitness Leaders in exchange for the issuance, by the Company, of 384,110 restricted shares of its common stock valued at $233,155. The purchase price was allocated to furniture and equipment ($7,772) and goodwill ($225,383). The transaction closed on December 1, 2017. The purchase of these assets was not considered significant for accounting purposes; therefore, pro forma financial statements are not presented.

The following table details the exchange rates used for the respective periods:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">May 31, 2017</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">August 31, 2017</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 46%; line-height: 107%">Period end: CAD to USD exchange rate</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 15%; text-align: right; line-height: 107%">0.7712</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 15%; text-align: right; line-height: 107%">0.7405</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 15%; text-align: right; line-height: 107%">0.7988</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Average period: CAD to USD exchange rate</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%">$</td> <td style="text-align: right; line-height: 107%">0.7901</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%">$</td> <td style="text-align: right; line-height: 107%">0.7509</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> </table> Depreciation of property and equipment is provided using the declining balance method for substantially all assets with estimated lives as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 57%; line-height: 107%">Leasehold improvements</td> <td style="width: 35%; line-height: 107%">5 years</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Clinical equipment</td> <td style="line-height: 107%">5 years</td></tr> <tr style="vertical-align: top"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Computer equipment</td> <td style="line-height: 107%">3 years</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Office equipment</td> <td style="line-height: 107%">5 years</td></tr> <tr style="vertical-align: top"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Furniture and fixtures</td> <td style="line-height: 107%">5 years</td></tr> </table> Other receivables at May 31, 2018 and August 31, 2017 consisted of the following:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">August 31, 2017</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%">Notes receivable dated November 15, 2014; accrues interest at 8% per annum; secured by assets; due November 15, 2016.</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">-</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">39,940</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%">Notes receivable dated April 1, 2015 and amended on May 23, 2017; accrued interest at 8% per annum; secured by certain assets; due May 23, 2018. This receivable is currently past due.</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">289,200</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">299,550</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%">Advance to corporation; non-interest bearing; unsecured; payable upon demand</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">30,848</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">32,534</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%">Advance to corporation; non-interest bearing; unsecured; payable upon demand</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">77,120</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">-</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Total other receivables</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">397,168</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">372,024</td> <td style="line-height: 107%"> </td></tr> </table>

Property and equipment at May 31, 2018 and August 31, 2017 consisted of the following:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">August 31, 2017</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%">Leasehold Improvements</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">342,305</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">329,985</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Clinical equipment</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">201,505</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">177,514</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Computer equipment</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">24,873</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">21,020</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Office equipment</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">32,339</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">24,319</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Furniture and fixtures</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">39,957</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">18,218</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">640,979</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">571,056</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Accumulated depreciation</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">(309,878</td> <td style="line-height: 107%">)</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">(268,105</td> <td style="line-height: 107%">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Total</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">331,101</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">302,951</td> <td style="line-height: 107%"> </td></tr> </table>

Notes payable at May 31, 2018 and August 31, 2017 consisted of the following:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">August 31, 2017</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%">Notes payable to financial institution; accrues interest at 7.2% per annum; monthly principal and interest payment of $3,567; unsecured; due October 2017. This note has been fully repaid.</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">-</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 18%; text-align: right; line-height: 107%">7,134</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%">Notes payable issued in connection with purchase of assets; accrues interest at 0% per annum; due on March 27, 2019.</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">385,600</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">399,400</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%">Note payable assumed with acquisition; accrues interest at 6% per annum; monthly principal and interest payment of $615; unsecured; due April 8, 2019.</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">20,263</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">20,988</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">405,863</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">427,522</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Current portion</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">(6,164</td> <td style="line-height: 107%">)</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">(13,171</td> <td style="line-height: 107%">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Long-term portion</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">399,699</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">414,351</td> <td style="line-height: 107%"> </td></tr> </table>

Aggregate future maturities of notes payable are as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; line-height: 107%">Twelve months ending May 31,</td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 71%; text-align: right; line-height: 107%">2019</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 26%; text-align: right; line-height: 107%">6,164</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: right; line-height: 107%">2020</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">399,699</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%">$</td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">405,863</td> <td style="line-height: 107%"> </td></tr> </table>

The following is a summary of stock option/warrant activity:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Weighted</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Weighted</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Average</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Options/</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Average</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Remaining</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Aggregate</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Warrants</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Exercise</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Contractual</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Intrinsic</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Outstanding</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Price</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Life</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Value</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%; line-height: 107%">Outstanding, August 31, 2017</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%">7,860,000</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 11%; text-align: right; line-height: 107%">0.27</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%">3.53</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 11%; text-align: right; line-height: 107%">660,000</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Granted</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2,170,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.42</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Forfeited</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">-</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Exercised</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">-</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Outstanding, May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">10,030,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.30</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">4.81</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2,318,200</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Exercisable, May 31, 2018</td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">9,030,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%">$</td> <td style="text-align: right; line-height: 107%">0.30</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">4.88</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%">$</td> <td style="text-align: right; line-height: 107%">2,128,200</td> <td style="line-height: 107%"> </td></tr> </table>

The per share exercise prices for options/warrants outstanding at May 31, 2018 was as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="5" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Outstanding</td> <td style="line-height: 107%"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Exercisable</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 107%">Number of</td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Number of</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 107%">Options/</td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Exercise</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Options/</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="text-align: center; line-height: 107%">Exercise</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Warrants</td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Price Per Share</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Warrants</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%">Price Per Share</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 25%; text-align: right; line-height: 107%">5,500,000</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 22%; text-align: right; line-height: 107%">0.16</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 22%; text-align: right; line-height: 107%">5,500,000</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%">$</td> <td style="width: 22%; text-align: right; line-height: 107%">0.16</td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: right; line-height: 107%">1,000,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.32</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">-</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.32</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: right; line-height: 107%">50,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.33</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">50,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.33</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: right; line-height: 107%">120,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.40</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">120,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.40</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: right; line-height: 107%">2,000,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.42</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2,000,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.42</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: right; line-height: 107%">100,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.50</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">100,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.50</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: right; line-height: 107%">1,000,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.62</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">1,000,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.62</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: right; line-height: 107%">250,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.80</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">250,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0.80</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">10,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2.00</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%">10,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2.00</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">10,030,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%">9,030,000</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> </table>

The assumptions used in calculating the fair value of options granted using the Black-Scholes option-pricing model for options granted are as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 67%; line-height: 107%">Risk-free interest rate</td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 30%; text-align: right; line-height: 107%">1.83</td> <td style="width: 1%; line-height: 107%">%</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Expected life of the options</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">2.5 to 3.5 years</td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">Expected volatility</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">314</td> <td style="line-height: 107%">%</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">Expected dividend yield</td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%">0</td> <td style="line-height: 107%">%</td></tr> </table>

0.62

5600000

Use of Estimates   The preparation of consolidated 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 disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

Principles of Consolidation   The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, NHL, Novo Peak Health Inc., Novo Healthnet Rehab Limited, Novo Assessments Inc., an 80% interest in Novo Healthnet Kemptville Centre, Inc., a Back on Track Physiotherapy and Health Centre clinic operated by NHL, and a 50% stake in a joint venture with the Sophie Freeman Dental Hygiene Professional Corporation operated as Novo Dental. All of the Company’s subsidiaries are incorporated under the laws of the Province of Ontario, Canada. All intercompany transactions have been eliminated.

Noncontrolling Interest   The Company follows FASB ASC Topic 810, Consolidation, which governs the accounting for and reporting of non-controlling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance.   The net income (loss) attributed to the NCI is separately designated in the accompanying consolidated statements of operations and other comprehensive income (loss).

Cash Equivalents   For the purpose of the statement of cash flows, cash equivalents include time deposits, certificate of deposits, and all highly liquid debt instruments with original maturities of three months or less.

Accounts Receivable   Accounts receivable are recorded, net of allowance for doubtful accounts and sales returns. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentration, customer credit worthiness, current economic trends and changes in customer payment patterns to determine if the allowance for doubtful accounts is adequate. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Delinquent account balances are written-off after management has determined that the likelihood of collection is not probable and known bad debts are written off against the allowance for doubtful accounts when identified. As of May 31, 2018 and August 31, 2017, the allowance for uncollectible accounts receivable was $480,818 and $507,636, respectively.

Property and Equipment   Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the declining balance method for substantially all assets with estimated lives as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 57%; line-height: 107%">Leasehold improvements</td> <td style="width: 35%; line-height: 107%">5 years</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Clinical equipment</td> <td style="line-height: 107%">5 years</td></tr> <tr style="vertical-align: top"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Computer equipment</td> <td style="line-height: 107%">3 years</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Office equipment</td> <td style="line-height: 107%">5 years</td></tr> <tr style="vertical-align: top"> <td style="line-height: 107%"> </td> <td style="line-height: 107%">Furniture and fixtures</td> <td style="line-height: 107%">5 years</td></tr> </table>

Long-Lived Assets   The Company applies the provisions of ASC Topic 360, Property, Plant, and Equipment, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair values are reduced for the cost of disposal. Based on its review at May 31, 2018 and August 31, 2017, the Company believes there was no impairment of its long-lived assets.

Goodwill   Goodwill represents the excess of purchase price over the underlying net assets of businesses acquired. Under accounting requirements, goodwill is not amortized but is subject to annual impairment tests. At May 31, 2018, the Company recorded goodwill of $385,600 and $223,648, respectively, related to its acquisition of Apka Health, Inc. during the fiscal year ended August 31, 2017 and Executive Fitness Leaders during the fiscal year ended August 31, 2018.

Acquisition Deposits   The Company has signed letters of understanding with two potential acquisition candidates which includes refundable acquisition deposits totaling $1,121,859 and $1,162,009 at May 31, 2018 and August 31, 2017, respectfully.

Fair Value of Financial Instruments   For certain of the Company’s financial instruments, including cash and equivalents, restricted cash, accounts receivable, advances to suppliers, accounts payable, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities.   FASB ASC Topic 820, Fair Value Measurements and Disclosures, requires disclosure of the fair value of financial instruments held by the Company. FASB ASC Topic 825, Financial Instruments, defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:   <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 34px; text-align: justify; line-height: 107%"> </td> <td style="width: 24px; text-align: justify; line-height: 107%">●</td> <td style="text-align: justify; line-height: 107%">Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%">●</td> <td style="text-align: justify; line-height: 107%">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%">●</td> <td style="text-align: justify; line-height: 107%">Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement. </td></tr> </table>   The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic 480, Distinguishing Liabilities from Equity, and FASB ASC Topic 815, Derivatives and Hedging.   As of May 31, 2018 and August 31, 2017, respectively, the Company did not identify any assets and liabilities required to be presented on the balance sheet at fair value.

Revenue Recognition   The Company recognizes revenue on arrangements in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers. Revenue related to healthcare services provided is recognized at the time services have been performed. Gross service revenue is recorded in the accounting records on an accrual basis at the provider’s established rates, regardless of whether the health care entity expects to collect that amount. The Company reserves a provision for contractual adjustment and discounts and deduct from gross service revenue. The Company recognizes revenue at the time the services have been performed. The Company reports revenues net of any sales, use and value added taxes.

Income Taxes   The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.   Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company has no material uncertain tax positions for any of the reporting periods presented.

Stock-Based Compensation   The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.

Basic and Diluted Earnings Per Share   Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share. Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding. Diluted EPS is based on the assumption that all dilutive securities are converted. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. There were 10,030,000 options/warrants outstanding as of May 31, 2018. Due to the net loss incurred potentially dilutive instruments would be anti-dilutive. Accordingly, diluted loss per share is the same as basic loss for all periods presented.

Foreign Currency Transactions and Comprehensive Income   U.S. GAAP generally requires recognized revenue, expenses, gains and losses be included in net income. Certain statements, however, require entities to report specific changes in assets and liabilities, such as gain or loss on foreign currency translation, as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. The functional currency of the Company’s Canadian subsidiaries is the Canadian dollar. Translation gains of $1,144,998 and $1,240,844 at May 31, 2018 and August 31, 2017, respectively, are classified as an item of other comprehensive income in the stockholders’ equity section of the balance sheet.

Statement of Cash Flows   Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rates. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets.

Recent Accounting Pronouncements   In January 2017, the FASB issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. The adoption of this ASU did not have an impact on its financial statements.   In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents on the statement of cash flows and disclosure of how the statement of cash flows reconciles to the balance sheet if restricted cash is shown separately from cash and cash equivalents on the balance sheet. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The adoption of this ASU did not have an impact on its financial statements.   In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its financial statements.   In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides guidance for targeted changes with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. ASU 2016-15 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The adoption of this ASU did not have an impact on its financial statements.   In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its financial statements.   In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company adopted this ASU beginning on March 1, 2018 and used the modified prospective method of adoption. The adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures.   Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

EX-101.SCH 6 nvos-20180531.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Condensed Consolidated Balance Sheets link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Condensed Consolidated Balance Sheets (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Condensed Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Disclosure - Organization and Basis of Presentation link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - Summary of Significant Accounting Policies link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - Related Party Transactions link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - Other Receivables link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - Property and Equipment link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - Notes Payable link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - Debentures, Related Parties link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - Stockholders' Deficit link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - Acquisition of Assets link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - Summary of Significant Accounting Policies (Policies) link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - Organization and Basis of Presentation (Tables) link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - Summary of Significant Accounting Policies (Tables) link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - Other Receivables (Tables) link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - Property and Equipment (Tables) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - Notes Payable (Tables) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - Stockholders' Deficit (Tables) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - Organization and Basis of Presentation (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - Organization and Basis of Presentation - Schedule of Foreign Currency Translation, Exchange Rate Used (Details) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - Summary of Significant Accounting Policies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Assets (Details) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - Related Party Transactions (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - Other Receivables - Schedule of Other Receivables (Details) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - Other Receivables - Schedule of Other Receivables (Details) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - Property and Equipment (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - Property and Equipment - Schedule of Property and Equipment (Details) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - Notes Payable - Schedule of Notes Payable (Details) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - Notes Payable - Schedule of Notes Payable (Details) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - Notes Payable - Schedule of Future Maturities of Notes Payable (Details) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - Debentures, Related Parties (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - Stockholders' Deficit (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - Stockholders' Deficit - Schedule of Stock Option and Warrant Activity (Details) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - Stockholders' Deficit - Schedule of Options and Warrants Outstanding and Exercisable (Details) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - Stockholders' Deficit - Schedule of Fair Value of Options Granted by Using Valuation Assumptions (Details) link:presentationLink link:calculationLink link:definitionLink 00000040 - Disclosure - Commitments and Contingencies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000041 - Disclosure - Acquisition of Assets (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 7 nvos-20180531_cal.xml XBRL CALCULATION FILE EX-101.DEF 8 nvos-20180531_def.xml XBRL DEFINITION FILE EX-101.LAB 9 nvos-20180531_lab.xml XBRL LABEL FILE Legal Entity [Axis] Turbine Truck Engines, Inc [Member] Turbine Truck Engines, Inc One [Member] Type of Arrangement and Non-arrangement Transactions [Axis] Share Exchange Agreement [Member] NHL [Member] Report Date [Axis] Period End [Member] Currency [Axis] CAD [Member] Novo Healthnet Kemptville Centre, Inc [Member] Property, Plant and Equipment, Type [Axis] Leasehold Improvements [Member] Clinical Equipment [Member] Computer Equipment [Member] Office Equipment [Member] Furniture and Fixtures [Member] Receivable Type [Axis] Notes Receivable Dated November 15, 2014 [Member] Notes Receivable Dated April 1, 2015 and May 23, 2017 [Member] Advance to Corporation One [Member] Advance to Corporation Two [Member] Debt Instrument [Axis] Note Payable One [Member] Note Payable Two [Member] Note Payable Three [Member] Exercise Price Range [Axis] Exercise Price Range One [Member] Exercise Price Range Two [Member] Exercise Price Range Three [Member] Exercise Price Range Four [Member] Exercise Price Range Five [Member] Five Debentures [Member] Plan Name [Axis] 2015 Incentive Compensation Plan [Member] Range [Axis] Maximum [Member] Exercise Price Range Six [Member] Average Period [Member] Award Date [Axis] 2018 [Member] Exercise Price Range Seven [Member] Apka Health, Inc. [Member] Executive Fitness Leaders [Member] Asset Purchase Agreement [Member] Award Type [Axis] Restricted Stock [Member] 2018 Incentiven Plan [Member] Exercise Price Range Eight [Member] Exercise Price Range Nine [Member] Minimum [Member] Debentures [Member] Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Entity Filer Category Entity Common Stock, Shares Outstanding Trading Symbol Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS Current Assets: Cash and cash equivalents Accounts receivable, net Other receivables Prepaid expenses and other current assets Total current assets Property and equipment, net Acquisition deposits Goodwill TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities: Accounts payable Accrued expenses Accrued interest (principally to related parties) Due to related parties Notes payable, current portion Total current liabilities Debentures, related parties Notes payable, net of current portion TOTAL LIABILITIES Commitments and contingencies STOCKHOLDERS' EQUITY (DEFICIT) Novo Integrated Sciences, Inc. Convertible preferred stock, $0.001 par value; 1,000,000 shares authorized; 0 and 0 shares issued and outstanding at May 31, 2018 and August 31, 2017 Common stock; $0.001 par value; 499,000,000 shares authorized; 214,698,824 and 201,837,254 shares issued and outstanding at May 31, 2018 and August 31, 2017 Additional paid-in capital Other comprehensive income Accumulated deficit Total Novo Integrated Sciences, Inc. stockholders' equity (deficit) Noncontrolling interest Total stockholders' equity (deficit) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Convertible preferred stock, par value Convertible preferred stock, shares authorized Convertible preferred stock, shares issued Convertible preferred stock, shares outstanding Common stock, par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Income Statement [Abstract] Revenues Cost of revenues Gross profit Operating expenses: Selling expenses General and administrative expenses Total operating expenses Loss from operations Non-operating income (expense) Interest income Interest expense Total other income (expense) Loss before income taxes Income tax expense (benefit) Net loss Net loss attributed to noncontrolling interest Net loss attributed to Novo Integrated Sciences, Inc. Comprehensive loss: Net loss Foreign currency translation gain (loss) Comprehensive loss: Weighted average common shares outstanding - basic and diluted Net loss per common share - basic and diluted Statement of Cash Flows [Abstract] CASH FLOWS FROM OPERATING ACTIVITIES: Adjustments to reconcile net loss to net cash used in operating activities: Depreciation Fair value of vested stock options Expense associated with modified stock option terms Changes in operating assets and liabilities: Accounts receivable Prepaid expenses and other current assets Accounts payable Accrued expenses Accrued interest Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of furniture and equipment Amounts loaned for other receivables Cash acquired in reverse merger transaction Repayments of other receivables Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Advances (repayments) to related parties Proceeds from the sale of common stock Payments on notes payable Net cash used in financing activities Effect of exchange rate changes on cash and equivalents NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS, END OF PERIOD CASH PAID FOR: Interest Income taxes SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES: Note payable issued for purchase of assets Organization, Consolidation and Presentation of Financial Statements [Abstract] Organization and Basis of Presentation Accounting Policies [Abstract] Summary of Significant Accounting Policies Related Party Transactions [Abstract] Related Party Transactions Receivables [Abstract] Other Receivables Property, Plant and Equipment [Abstract] Property and Equipment Debt Disclosure [Abstract] Notes Payable Debentures, Related Parties Equity [Abstract] Stockholders' Deficit Commitments and Contingencies Disclosure [Abstract] Commitments and Contingencies Business Combinations [Abstract] Acquisition of Assets Use of Estimates Principles of Consolidation Noncontrolling Interest Cash Equivalents Accounts Receivable Property and Equipment Long-Lived Assets Goodwill Acquisition Deposits EX-101.PRE 10 nvos-20180531_pre.xml XBRL PRESENTATION FILE XML 11 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	May 31, 2018	Jul. 09, 2018
Document And Entity Information
Entity Registrant Name	Novo Integrated Sciences, Inc.
Entity Central Index Key	0001138978
Document Type	10-Q
Document Period End Date	May 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		214,698,824
Trading Symbol	NVOS
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2018

XML 12 R2.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets - USD ($)	May 31, 2018	Aug. 31, 2017
Current Assets:
Cash and cash equivalents	$ 863,696	$ 1,896,572
Accounts receivable, net	1,311,574	1,128,898
Other receivables	397,168	372,024
Prepaid expenses and other current assets	205,433	252,536
Total current assets	2,777,871	3,650,030
Property and equipment, net	331,101	302,951
Acquisition deposits	1,121,859	1,162,009
Goodwill	609,248	399,400
TOTAL ASSETS	4,840,079	5,514,390
Current Liabilities:
Accounts payable	1,310,277	1,703,342
Accrued expenses	368,838	341,657
Accrued interest (principally to related parties)	142,413	403,119
Due to related parties	1,094,488	1,812,613
Notes payable, current portion	6,164	13,171
Total current liabilities	2,922,180	4,273,902
Debentures, related parties	1,234,404	5,114,327
Notes payable, net of current portion	399,699	414,351
TOTAL LIABILITIES	4,556,283	9,802,580
Commitments and contingencies
Novo Integrated Sciences, Inc.
Convertible preferred stock, $0.001 par value; 1,000,000 shares authorized; 0 and 0 shares issued and outstanding at May 31, 2018 and August 31, 2017
Common stock; $0.001 par value; 499,000,000 shares authorized; 214,698,824 and 201,837,254 shares issued and outstanding at May 31, 2018 and August 31, 2017	214,699	201,837
Additional paid-in capital	9,992,354	3,381,643
Other comprehensive income	1,144,998	1,240,844
Accumulated deficit	(11,041,720)	(9,091,977)
Total Novo Integrated Sciences, Inc. stockholders' equity (deficit)	310,331	(4,267,653)
Noncontrolling interest	(26,535)	(20,537)
Total stockholders' equity (deficit)	283,796	(4,288,190)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 4,840,079	$ 5,514,390

XML 13 R3.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	May 31, 2018	Aug. 31, 2017
Statement of Financial Position [Abstract]
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	1,000,000	1,000,000
Convertible preferred stock, shares issued	0	0
Convertible preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	499,000,000	499,000,000
Common stock, shares issued	214,698,824	201,837,254
Common stock, shares outstanding	214,698,824	201,837,254

XML 14 R4.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Income Statement [Abstract]
Revenues	$ 2,323,169	$ 2,089,970	$ 6,722,825	$ 5,742,729
Cost of revenues	1,417,999	1,376,911	4,133,288	3,730,932
Gross profit	905,170	713,059	2,589,537	2,011,797
Operating expenses:
Selling expenses	17,900	16,374	86,640	34,934
General and administrative expenses	1,064,107	957,558	3,978,861	2,127,800
Total operating expenses	1,082,007	973,932	4,065,501	2,162,734
Loss from operations	(176,837)	(260,873)	(1,475,964)	(150,937)
Non-operating income (expense)
Interest income	120	8,891	331	30,879
Interest expense	(42,696)	(105,982)	(480,981)	(337,687)
Total other income (expense)	(42,576)	(97,091)	(480,650)	(306,808)
Loss before income taxes	(219,413)	(357,964)	(1,956,614)	(457,745)
Income tax expense (benefit)
Net loss	(219,413)	(357,964)	(1,956,614)	(457,745)
Net loss attributed to noncontrolling interest	(1,515)	(1,223)	(6,871)	(5,714)
Net loss attributed to Novo Integrated Sciences, Inc.	(217,898)	(356,741)	(1,949,743)	(452,031)
Comprehensive loss:
Net loss	(219,413)	(357,964)	(1,956,614)	(457,745)
Foreign currency translation gain (loss)	(8,505)	214,786	(95,846)	281,681
Comprehensive loss:	$ (227,918)	$ (143,178)	$ (2,052,460)	$ (176,064)
Weighted average common shares outstanding - basic and diluted	214,684,089	173,965,632	207,568,978	169,876,075
Net loss per common share - basic and diluted	$ (0.00)	$ (0.00)	$ (0.01)	$ (0.00)

XML 15 R5.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	May 31, 2018	May 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,956,614)	$ (457,745)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	52,287	46,870
Fair value of vested stock options	1,220,419	197,916
Expense associated with modified stock option terms	31,536
Changes in operating assets and liabilities:
Accounts receivable	(227,113)	(92,593)
Prepaid expenses and other current assets	39,503	(9,542)
Accounts payable	(343,102)	(89,245)
Accrued expenses	39,552	(194,880)
Accrued interest	303,488	234,548
Net cash used in operating activities	(840,044)	(364,671)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of furniture and equipment	(83,950)	(28,621)
Amounts loaned for other receivables	(38,929)	(375,450)
Cash acquired in reverse merger transaction		12,249
Repayments of other receivables
Net cash provided by (used in) investing activities	(122,879)	(391,822)
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances (repayments) to related parties	(31,580)	(159,874)
Proceeds from the sale of common stock	15,564	2,510,550
Payments on notes payable	(7,056)	(120,285)
Net cash used in financing activities	(23,072)	2,230,391
Effect of exchange rate changes on cash and equivalents	(46,881)	89,953
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,032,876)	1,563,851
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,896,572	110,315
CASH AND CASH EQUIVALENTS, END OF PERIOD	863,696	1,674,166
CASH PAID FOR:
Interest	170,588	129,884
Income taxes
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Note payable issued for purchase of assets		$ 375,450

XML 16 R6.htm IDEA: XBRL DOCUMENT

Organization and Basis of Presentation

9 Months Ended

May 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1 - Organization and Basis of Presentation

Organization and Line of Business

On May 9, 2017, the Exchange closed and, as a result, NHL became a wholly owned subsidiary of Novo Integrated Sciences, Inc.

Basis of Presentation

Foreign Currency Translation

	May 31, 2018		May 31, 2017		August 31, 2017

Period end: CAD to USD exchange rate	$	0.7712	$	0.7405	$	0.7988
Average period: CAD to USD exchange rate	$	0.7901	$	0.7509

XML 17 R7.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies

9 Months Ended

May 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

Use of Estimates

Principles of Consolidation

Noncontrolling Interest

The net income (loss) attributed to the NCI is separately designated in the accompanying consolidated statements of operations and other comprehensive income (loss).

Cash Equivalents

Accounts Receivable

Property and Equipment

	Leasehold improvements	5 years
	Clinical equipment	5 years
	Computer equipment	3 years
	Office equipment	5 years
	Furniture and fixtures	5 years

Long-Lived Assets

Goodwill

Acquisition Deposits

Fair Value of Financial Instruments

	●	Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

	●	Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement.

As of May 31, 2018 and August 31, 2017, respectively, the Company did not identify any assets and liabilities required to be presented on the balance sheet at fair value.

Revenue Recognition

Income Taxes

Stock-Based Compensation

Basic and Diluted Earnings Per Share

Foreign Currency Transactions and Comprehensive Income

Statement of Cash Flows

Recent Accounting Pronouncements

XML 18 R8.htm IDEA: XBRL DOCUMENT

Related Party Transactions

9 Months Ended

May 31, 2018

Related Party Transactions

Note 3 – Related Party Transactions

Due to related parties

Amounts loaned to the Company by stockholders and officers of the Company that are payable upon demand.

XML 19 R9.htm IDEA: XBRL DOCUMENT

Other Receivables

9 Months Ended

May 31, 2018

Receivables [Abstract]

Other Receivables

Note 4 – Other Receivables

Other receivables at May 31, 2018 and August 31, 2017 consisted of the following:

	May 31, 2018		August 31, 2017
Notes receivable dated November 15, 2014; accrues interest at 8% per annum; secured by assets; due November 15, 2016.	$	-	$	39,940
Notes receivable dated April 1, 2015 and amended on May 23, 2017; accrued interest at 8% per annum; secured by certain assets; due May 23, 2018. This receivable is currently past due.		289,200		299,550
Advance to corporation; non-interest bearing; unsecured; payable upon demand		30,848		32,534
Advance to corporation; non-interest bearing; unsecured; payable upon demand		77,120		-
Total other receivables	$	397,168	$	372,024

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

XML 20 R10.htm IDEA: XBRL DOCUMENT

Property and Equipment

9 Months Ended

May 31, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 5 – Property and Equipment

Property and equipment at May 31, 2018 and August 31, 2017 consisted of the following:

	May 31, 2018			August 31, 2017
Leasehold Improvements	$	342,305		$	329,985
Clinical equipment		201,505			177,514
Computer equipment		24,873			21,020
Office equipment		32,339			24,319
Furniture and fixtures		39,957			18,218
		640,979			571,056
Accumulated depreciation		(309,878	)		(268,105	)
Total	$	331,101		$	302,951

Depreciation expense for the nine months ended May 31, 2018 and 2017 was $52,287 and $46,870, respectively.

XML 21 R11.htm IDEA: XBRL DOCUMENT

Notes Payable

9 Months Ended

May 31, 2018

Debt Disclosure [Abstract]

Notes Payable

Note 6 – Notes Payable

Notes payable at May 31, 2018 and August 31, 2017 consisted of the following:

	May 31, 2018			August 31, 2017
Notes payable to financial institution; accrues interest at 7.2% per annum; monthly principal and interest payment of $3,567; unsecured; due October 2017. This note has been fully repaid.	$	-		$	7,134
Notes payable issued in connection with purchase of assets; accrues interest at 0% per annum; due on March 27, 2019.		385,600			399,400
Note payable assumed with acquisition; accrues interest at 6% per annum; monthly principal and interest payment of $615; unsecured; due April 8, 2019.		20,263			20,988
		405,863			427,522
Current portion		(6,164	)		(13,171	)
Long-term portion	$	399,699		$	414,351

Aggregate future maturities of notes payable are as follows:

Twelve months ending May 31,
2019	$	6,164
2020		399,699
	$	405,863

XML 22 R12.htm IDEA: XBRL DOCUMENT

Debentures, Related Parties

9 Months Ended

May 31, 2018

Debt Disclosure [Abstract]

Debentures, Related Parties

Note 7 – Debentures, related parties

XML 23 R13.htm IDEA: XBRL DOCUMENT

Stockholders' Deficit

9 Months Ended

May 31, 2018

Equity [Abstract]

Stockholders' Deficit

Note 8 – Stockholders’ Deficit

Convertible preferred stock

Common stock

Stock options/warrants

The following is a summary of stock option/warrant activity:

					Weighted
			Weighted		Average
	Options/		Average		Remaining		Aggregate
	Warrants		Exercise		Contractual		Intrinsic
	Outstanding		Price		Life		Value
Outstanding, August 31, 2017		7,860,000	$	0.27		3.53	$	660,000
Granted		2,170,000		0.42
Forfeited		-
Exercised		-
Outstanding, May 31, 2018		10,030,000		0.30		4.81		2,318,200
Exercisable, May 31, 2018		9,030,000	$	0.30		4.88	$	2,128,200

The per share exercise prices for options/warrants outstanding at May 31, 2018 was as follows:

Outstanding			Exercisable
Number of			Number of
Options/	Exercise		Options/		Exercise
Warrants	Price Per Share		Warrants		Price Per Share
5,500,000	$	0.16		5,500,000	$	0.16
1,000,000		0.32		-		0.32
50,000		0.33		50,000		0.33
120,000		0.40		120,000		0.40
2,000,000		0.42		2,000,000		0.42
100,000		0.50		100,000		0.50
1,000,000		0.62		1,000,000		0.62
250,000		0.80		250,000		0.80
10,000		2.00		10,000		2.00
10,030,000				9,030,000

The assumptions used in calculating the fair value of options granted using the Black-Scholes option-pricing model for options granted are as follows:

Risk-free interest rate	1.83	%
Expected life of the options	2.5 to 3.5 years
Expected volatility	314	%
Expected dividend yield	0	%

XML 24 R14.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies

9 Months Ended

May 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9 – Commitments and Contingencies

Litigation

Leases

XML 25 R15.htm IDEA: XBRL DOCUMENT

Acquisition of Assets

9 Months Ended

May 31, 2018

Business Combinations [Abstract]

Acquisition of Assets

Note 10 – Acquisition of Assets

XML 26 R16.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Policies)

9 Months Ended

May 31, 2018

Accounting Policies [Abstract]

Use of Estimates

Principles of Consolidation

Noncontrolling Interest

The net income (loss) attributed to the NCI is separately designated in the accompanying consolidated statements of operations and other comprehensive income (loss).

Cash Equivalents

Accounts Receivable

Property and Equipment

	Leasehold improvements	5 years
	Clinical equipment	5 years
	Computer equipment	3 years
	Office equipment	5 years
	Furniture and fixtures	5 years

Long-Lived Assets

Goodwill

Acquisition Deposits

Fair Value of Financial Instruments

	●	Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

	●	Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement.

As of May 31, 2018 and August 31, 2017, respectively, the Company did not identify any assets and liabilities required to be presented on the balance sheet at fair value.

Revenue Recognition

Income Taxes

Stock-Based Compensation

Basic and Diluted Earnings Per Share

Foreign Currency Transactions and Comprehensive Income

Statement of Cash Flows

Recent Accounting Pronouncements

XML 27 R17.htm IDEA: XBRL DOCUMENT

Organization and Basis of Presentation (Tables)

9 Months Ended

May 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Foreign Currency Translation, Exchange Rate Used

The following table details the exchange rates used for the respective periods:

	May 31, 2018		May 31, 2017		August 31, 2017

Period end: CAD to USD exchange rate	$	0.7712	$	0.7405	$	0.7988
Average period: CAD to USD exchange rate	$	0.7901	$	0.7509

XML 28 R18.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Tables)

9 Months Ended

May 31, 2018

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives of Assets

Depreciation of property and equipment is provided using the declining balance method for substantially all assets with estimated lives as follows:

	Leasehold improvements	5 years
	Clinical equipment	5 years
	Computer equipment	3 years
	Office equipment	5 years
	Furniture and fixtures	5 years

XML 29 R19.htm IDEA: XBRL DOCUMENT

Other Receivables (Tables)

9 Months Ended

May 31, 2018

Receivables [Abstract]

Schedule of Other Receivables

Other receivables at May 31, 2018 and August 31, 2017 consisted of the following:

	May 31, 2018		August 31, 2017
Notes receivable dated November 15, 2014; accrues interest at 8% per annum; secured by assets; due November 15, 2016.	$	-	$	39,940
Notes receivable dated April 1, 2015 and amended on May 23, 2017; accrued interest at 8% per annum; secured by certain assets; due May 23, 2018. This receivable is currently past due.		289,200		299,550
Advance to corporation; non-interest bearing; unsecured; payable upon demand		30,848		32,534
Advance to corporation; non-interest bearing; unsecured; payable upon demand		77,120		-
Total other receivables	$	397,168	$	372,024

XML 30 R20.htm IDEA: XBRL DOCUMENT

Property and Equipment (Tables)

9 Months Ended

May 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment at May 31, 2018 and August 31, 2017 consisted of the following:

	May 31, 2018			August 31, 2017
Leasehold Improvements	$	342,305		$	329,985
Clinical equipment		201,505			177,514
Computer equipment		24,873			21,020
Office equipment		32,339			24,319
Furniture and fixtures		39,957			18,218
		640,979			571,056
Accumulated depreciation		(309,878	)		(268,105	)
Total	$	331,101		$	302,951

XML 31 R21.htm IDEA: XBRL DOCUMENT

Notes Payable (Tables)

9 Months Ended

May 31, 2018

Debt Disclosure [Abstract]

Schedule of Notes Payable

Notes payable at May 31, 2018 and August 31, 2017 consisted of the following:

	May 31, 2018			August 31, 2017
Notes payable to financial institution; accrues interest at 7.2% per annum; monthly principal and interest payment of $3,567; unsecured; due October 2017. This note has been fully repaid.	$	-		$	7,134
Notes payable issued in connection with purchase of assets; accrues interest at 0% per annum; due on March 27, 2019.		385,600			399,400
Note payable assumed with acquisition; accrues interest at 6% per annum; monthly principal and interest payment of $615; unsecured; due April 8, 2019.		20,263			20,988
		405,863			427,522
Current portion		(6,164	)		(13,171	)
Long-term portion	$	399,699		$	414,351

Schedule of Future Maturities of Notes Payable

Aggregate future maturities of notes payable are as follows:

Twelve months ending May 31,
2019	$	6,164
2020		399,699
	$	405,863

XML 32 R22.htm IDEA: XBRL DOCUMENT

Stockholders' Deficit (Tables)

9 Months Ended

May 31, 2018

Equity [Abstract]

Schedule of Stock Option and Warrant Activity

The following is a summary of stock option/warrant activity:

					Weighted
			Weighted		Average
	Options/		Average		Remaining		Aggregate
	Warrants		Exercise		Contractual		Intrinsic
	Outstanding		Price		Life		Value
Outstanding, August 31, 2017		7,860,000	$	0.27		3.53	$	660,000
Granted		2,170,000		0.42
Forfeited		-
Exercised		-
Outstanding, May 31, 2018		10,030,000		0.30		4.81		2,318,200
Exercisable, May 31, 2018		9,030,000	$	0.30		4.88	$	2,128,200

Schedule of Options and Warrants Outstanding and Exercisable

The per share exercise prices for options/warrants outstanding at May 31, 2018 was as follows:

Outstanding			Exercisable
Number of			Number of
Options/	Exercise		Options/		Exercise
Warrants	Price Per Share		Warrants		Price Per Share
5,500,000	$	0.16		5,500,000	$	0.16
1,000,000		0.32		-		0.32
50,000		0.33		50,000		0.33
120,000		0.40		120,000		0.40
2,000,000		0.42		2,000,000		0.42
100,000		0.50		100,000		0.50
1,000,000		0.62		1,000,000		0.62
250,000		0.80		250,000		0.80
10,000		2.00		10,000		2.00
10,030,000				9,030,000

Schedule of Fair Value of Options Granted by Using Valuation Assumptions

The assumptions used in calculating the fair value of options granted using the Black-Scholes option-pricing model for options granted are as follows:

Risk-free interest rate	1.83	%
Expected life of the options	2.5 to 3.5 years
Expected volatility	314	%
Expected dividend yield	0	%

XML 33 R23.htm IDEA: XBRL DOCUMENT

Organization and Basis of Presentation (Details Narrative) - USD ($)		9 Months Ended
	Apr. 25, 2017	May 31, 2018
Number of restricted shares of common stock		25,104
Common stock issued in connection with reverse merger transaction		$ 6,904
Turbine Truck Engines, Inc [Member]
State country name		Delaware
Date of incorporation		Nov. 27, 2000
Turbine Truck Engines, Inc One [Member]
State country name		State of Nevada
Date of incorporation		Feb. 20, 2008
NHL [Member] \| Share Exchange Agreement [Member]
Number of restricted shares of common stock	167,797,406
Percentage of common stock issued and outstanding	85.00%

XML 34 R24.htm IDEA: XBRL DOCUMENT

Organization and Basis of Presentation - Schedule of Foreign Currency Translation, Exchange Rate Used (Details) - CAD [Member]	May 31, 2018	Aug. 31, 2017	May 31, 2017
Period End [Member]
Foreign currency exchange rate	0.7712	0.7988	0.7405
Average Period [Member]
Foreign currency exchange rate	0.7901		0.7509

XML 35 R25.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	9 Months Ended
	May 31, 2018	Aug. 31, 2017
Allowance for uncollectible accounts receivable	$ 480,818	$ 507,636
Goodwill	609,248	399,400
Refundable acquisition deposits	$ 1,121,859	1,162,009
Potentially dilutive common stock options and warrants outstanding, shares	10,030,000
Gain on foreign currency transactions	$ 1,144,998	$ 1,240,844
Novo Healthnet Kemptville Centre, Inc [Member]
Equity method investment, ownership percentage	80.00%
Apka Health, Inc. [Member]
Goodwill	$ 385,600
Executive Fitness Leaders [Member]
Goodwill	$ 223,648

XML 36 R26.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Assets (Details)	9 Months Ended
	May 31, 2018
Leasehold Improvements [Member]
Property and equipment, estimated lives	5 years
Clinical Equipment [Member]
Property and equipment, estimated lives	5 years
Computer Equipment [Member]
Property and equipment, estimated lives	3 years
Office Equipment [Member]
Property and equipment, estimated lives	5 years
Furniture and Fixtures [Member]
Property and equipment, estimated lives	5 years

XML 37 R27.htm IDEA: XBRL DOCUMENT

Related Party Transactions (Details Narrative) - USD ($)		9 Months Ended
	Jan. 31, 2018	May 31, 2018	May 31, 2017	Aug. 31, 2017
Related Party Transactions [Abstract]
Due to related parties		$ 1,094,488		$ 1,812,613
Related party debt, converted amount	$ 813,125
Debt converted, shares issued	1,976,483
Debt conversion, description	The per share price used for the conversion of this loan was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price.
Debt conversion price	$ 0.4114	$ 0.4114
Repayments advances from related parties		$ 31,580	$ 159,874

XML 38 R28.htm IDEA: XBRL DOCUMENT

Other Receivables - Schedule of Other Receivables (Details) - USD ($)	May 31, 2018	Aug. 31, 2017
Total other receivables	$ 397,168	$ 372,024
Notes Receivable Dated November 15, 2014 [Member]
Total other receivables		39,940
Notes Receivable Dated April 1, 2015 and May 23, 2017 [Member]
Total other receivables	289,200	299,550
Advance to Corporation One [Member]
Total other receivables	30,848	32,534
Advance to Corporation Two [Member]
Total other receivables	$ 77,120

XML 39 R29.htm IDEA: XBRL DOCUMENT

Other Receivables - Schedule of Other Receivables (Details) (Parenthetical)	9 Months Ended	12 Months Ended
	May 31, 2018	Aug. 31, 2017
Notes Receivable Dated November 15, 2014 [Member]
Percentage of interest accrued per annum	8.00%	8.00%
Notes receivable due date	Nov. 15, 2016	Nov. 15, 2016
Notes Receivable Dated April 1, 2015 and May 23, 2017 [Member]
Percentage of interest accrued per annum	8.00%	8.00%
Notes receivable due date	May 23, 2018	May 23, 2018

XML 40 R30.htm IDEA: XBRL DOCUMENT

Property and Equipment (Details Narrative) - USD ($)	9 Months Ended
Property and Equipment (Details Narrative) - USD ($)	May 31, 2018	May 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 52,287	$ 46,870

XML 41 R31.htm IDEA: XBRL DOCUMENT

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	May 31, 2018	Aug. 31, 2017
Property and equipment, gross	$ 640,979	$ 571,056
Accumulated depreciation	(309,878)	(268,105)
Total	331,101	302,951
Leasehold Improvements [Member]
Property and equipment, gross	342,305	329,985
Clinical Equipment [Member]
Property and equipment, gross	201,505	177,514
Computer Equipment [Member]
Property and equipment, gross	24,873	21,020
Office Equipment [Member]
Property and equipment, gross	32,339	24,319
Furniture and Fixtures [Member]
Property and equipment, gross	$ 39,957	$ 18,218

XML 42 R32.htm IDEA: XBRL DOCUMENT

Notes Payable - Schedule of Notes Payable (Details) - USD ($)	May 31, 2018	Aug. 31, 2017
Notes payable	$ 405,863	$ 427,522
Current portion	(6,164)	(13,171)
Long-term portion	399,699	414,351
Note Payable One [Member]
Notes payable		7,134
Note Payable Two [Member]
Notes payable	385,600	399,400
Note Payable Three [Member]
Notes payable	$ 20,263	$ 20,988

XML 43 R33.htm IDEA: XBRL DOCUMENT

Notes Payable - Schedule of Notes Payable (Details) (Parenthetical) - USD ($)	9 Months Ended	12 Months Ended
	May 31, 2018	Aug. 31, 2017
Note Payable One [Member]
Percentage of interest accrued per annum	7.20%	7.20%
Debt periodic payment	$ 3,567	$ 3,567
Notes payable, due date	Oct. 31, 2017	Oct. 31, 2017
Note Payable Two [Member]
Percentage of interest accrued per annum	0.00%	0.00%
Notes payable, due date	Mar. 27, 2019	Mar. 27, 2019
Note Payable Three [Member]
Percentage of interest accrued per annum	6.00%	6.00%
Debt periodic payment	$ 615	$ 615
Notes payable, due date	Apr. 08, 2019	Apr. 08, 2019

XML 44 R34.htm IDEA: XBRL DOCUMENT

Notes Payable - Schedule of Future Maturities of Notes Payable (Details)	May 31, 2018 USD ($)
Debt Disclosure [Abstract]
2019	$ 6,164
2020	399,699
Total	$ 405,863

XML 45 R35.htm IDEA: XBRL DOCUMENT

Debentures, Related Parties (Details Narrative) - USD ($)	Jan. 31, 2018	Dec. 02, 2017	Sep. 30, 2013	May 31, 2018	Nov. 30, 2017	Aug. 31, 2017
Accrued interest				$ 142,413		$ 403,119
Debt converted, shares issued	1,976,483
Debt conversion price	$ 0.4114			$ 0.4114
Debt conversion, description	The per share price used for the conversion of this loan was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price.
Debentures, outstanding				$ 1,234,404		$ 5,114,327
Five Debentures [Member]
Debentures, related parties					$ 4,968,900
Debt interest rate			8.00%
Debt due date			Sep. 30, 2016
Debt extended due date		Sep. 30, 2019
Five Debentures [Member] \| CAD [Member]
Debentures, related parties			$ 6,402,512
Debentures [Member]
Debentures, related parties	$ 3,894,809
Percentage of debt converted	75.00%
Accrued interest	$ 414,965
Debt converted, shares issued	10,475,872
Debt conversion price	$ 0.4114
Debt conversion, description	The per share price used for the conversion of each debenture was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price.

XML 46 R36.htm IDEA: XBRL DOCUMENT

Stockholders' Deficit (Details Narrative) - USD ($)				9 Months Ended		12 Months Ended
Stockholders' Deficit (Details Narrative) - USD ($)	Jan. 31, 2018	Jan. 16, 2018	Sep. 08, 2015	May 31, 2018	May 31, 2017	Aug. 31, 2017	Apr. 23, 2018
Convertible preferred stock, shares authorized				1,000,000		1,000,000
Convertible preferred stock, par value				$ 0.001		$ 0.001
Convertible preferred stock, shares issued				0		0
Convertible preferred stock, shares outstanding				0		0
Common stock, shares authorized				499,000,000		499,000,000
Common stock, par value				$ 0.001		$ 0.001
Common stock, shares issued				214,698,824		201,837,254
Common stock, shares outstanding				214,698,824		201,837,254
Common stock issued for business acquisition				$ 6,904
Common stock issued for conversion of debt, shares	1,976,483
Common stock issued for conversion of debt	$ 813,125
Debt conversion price	$ 0.4114			$ 0.4114
Debt conversion, description	The per share price used for the conversion of this loan was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price.
Number of restricted shares of common stock, shares				25,104
Number of restricted shares of common stock				$ 15,564
Sale of stock price, per share							$ 0.62
Stock options granted weighted-average grant date fair value						$ 0.58
Stock options/warrants weighted-average exercise price						$ 0.42
Stock option expense				1,220,419	$ 197,916
Unamortized stock option expense				$ 54,512
Number of options expiration date extended shares				5,600,000
Expense associated with modified stock option terms				$ 31,536
2018 [Member]
Stock options granted weighted-average grant date fair value				$ 0.41
Stock options/warrants weighted-average exercise price				$ 0.42
2015 Incentive Compensation Plan [Member]
Number of shares issued for granted						4,987,500
2015 Incentive Compensation Plan [Member] \| Maximum [Member]
Number of common stock shares issued			5,000,000
2018 Incentiven Plan [Member]
Number of common stock shares issued		10,000,000
Number of shares issued for granted				9,950,000
Restricted Stock [Member]
Common stock issued for conversion of debt, shares				12,452,356
Common stock issued for conversion of debt				$ 5,122,899
Debt conversion, description				The per share price used for the conversion was $0.4114 which was determined as the average price of the five (5) trading days immediately preceding the date of conversion with a 10% premium added to the calculated per share price.
Restricted Stock [Member] \| Executive Fitness Leaders [Member]
Common stock issued for business acquisition, shares				384,110
Common stock issued for business acquisition				$ 233,155

XML 47 R37.htm IDEA: XBRL DOCUMENT

Stockholders' Deficit - Schedule of Stock Option and Warrant Activity (Details)	9 Months Ended
	May 31, 2018 USD ($) $ / shares shares
Equity [Abstract]
Options/Warrants Outstanding, Beginning Balance	7,860,000
Options/Warrants Outstanding, Granted	2,170,000
Options/Warrants Outstanding, Forfeited
Options/Warrants Outstanding, Exercised
Options/Warrants Outstanding, Ending Balance	10,030,000
Options/Warrants Outstanding, Exercisable	9,030,000
Weighted Average Exercise Price, Outstanding, Beginning Balance \| $ / shares	$ 0.27
Weighted Average Exercise Price, Granted \| $ / shares	0.42
Weighted Average Exercise Price, Outstanding, Ending Balance \| $ / shares	0.30
Weighted Average Exercise Price, Exercisable \| $ / shares	$ 0.30
Weighted Average Remaining Contractual Life, Outstanding, Beginning Balance	3 years 6 months 10 days
Weighted Average Remaining Contractual Life, Outstanding, Ending Balance	4 years 9 months 22 days
Weighted Average Remaining Contractual Life, Exercisable	4 years 10 months 17 days
Aggregate Intrinsic Value, Outstanding, Beginning Balance \| $	$ 660,000
Aggregate Intrinsic Value, Outstanding, Ending Balance \| $	2,318,200
Aggregate Intrinsic Value, Exercisable \| $	$ 2,128,200

XML 48 R38.htm IDEA: XBRL DOCUMENT

Stockholders' Deficit - Schedule of Options and Warrants Outstanding and Exercisable (Details)	May 31, 2018 $ / shares shares
Number of Options/Warrants, Outstanding	10,030,000
Number of Options/Warrants, Exercisable	9,030,000
Exercise Price Range One [Member]
Number of Options/Warrants, Outstanding	5,500,000
Number of Options/Warrants, Outstanding, Exercise Price \| $ / shares	$ 0.16
Number of Options/Warrants, Exercisable	5,500,000
Number of Options/Warrants, Exercisable, Exercise Price \| $ / shares	$ 0.16
Exercise Price Range Two [Member]
Number of Options/Warrants, Outstanding	1,000,000
Number of Options/Warrants, Outstanding, Exercise Price \| $ / shares	$ 0.32
Number of Options/Warrants, Exercisable
Number of Options/Warrants, Exercisable, Exercise Price \| $ / shares	$ 0.32
Exercise Price Range Three [Member]
Number of Options/Warrants, Outstanding	50,000
Number of Options/Warrants, Outstanding, Exercise Price \| $ / shares	$ 0.33
Number of Options/Warrants, Exercisable	50,000
Number of Options/Warrants, Exercisable, Exercise Price \| $ / shares	$ 0.33
Exercise Price Range Four [Member]
Number of Options/Warrants, Outstanding	120,000
Number of Options/Warrants, Outstanding, Exercise Price \| $ / shares	$ 0.40
Number of Options/Warrants, Exercisable	120,000
Number of Options/Warrants, Exercisable, Exercise Price \| $ / shares	$ 0.40
Exercise Price Range Five [Member]
Number of Options/Warrants, Outstanding	2,000,000
Number of Options/Warrants, Outstanding, Exercise Price \| $ / shares	$ 0.42
Number of Options/Warrants, Exercisable	2,000,000
Number of Options/Warrants, Exercisable, Exercise Price \| $ / shares	$ 0.42
Exercise Price Range Six [Member]
Number of Options/Warrants, Outstanding	100,000
Number of Options/Warrants, Outstanding, Exercise Price \| $ / shares	$ 0.50
Number of Options/Warrants, Exercisable	100,000
Number of Options/Warrants, Exercisable, Exercise Price \| $ / shares	$ 0.50
Exercise Price Range Seven [Member]
Number of Options/Warrants, Outstanding	1,000,000
Number of Options/Warrants, Outstanding, Exercise Price \| $ / shares	$ 0.62
Number of Options/Warrants, Exercisable	1,000,000
Number of Options/Warrants, Exercisable, Exercise Price \| $ / shares	$ 0.62
Exercise Price Range Eight [Member]
Number of Options/Warrants, Outstanding	250,000
Number of Options/Warrants, Outstanding, Exercise Price \| $ / shares	$ 0.80
Number of Options/Warrants, Exercisable	250,000
Number of Options/Warrants, Exercisable, Exercise Price \| $ / shares	$ 0.80
Exercise Price Range Nine [Member]
Number of Options/Warrants, Outstanding	10,000
Number of Options/Warrants, Outstanding, Exercise Price \| $ / shares	$ 2.00
Number of Options/Warrants, Exercisable	10,000
Number of Options/Warrants, Exercisable, Exercise Price \| $ / shares	$ 2.00

XML 49 R39.htm IDEA: XBRL DOCUMENT

Stockholders' Deficit - Schedule of Fair Value of Options Granted by Using Valuation Assumptions (Details)	9 Months Ended
	May 31, 2018
Risk-free interest rate	1.83%
Expected volatility	314.00%
Expected dividend yield	0.00%
Minimum [Member]
Expected life of the options	2 years 6 months
Maximum [Member]
Expected life of the options	3 years 6 months

XML 50 R40.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies (Details Narrative) - USD ($)	9 Months Ended
	May 31, 2018	May 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Operating leases expiration date	2023
Rent expense	$ 612,343	$ 594,842

XML 51 R41.htm IDEA: XBRL DOCUMENT

Acquisition of Assets (Details Narrative) - USD ($)		9 Months Ended
Acquisition of Assets (Details Narrative) - USD ($)	Dec. 02, 2017	May 31, 2018	Aug. 31, 2017
Issuance of restricted shares, shares		25,104
Issuance of restricted shares		$ 15,564
Purchase price of goodwill		609,248	$ 399,400
Executive Fitness Leaders [Member]
Purchase price of goodwill		223,648
Asset Purchase Agreement [Member] \| Executive Fitness Leaders [Member]
Issuance of restricted shares, shares	384,110
Issuance of restricted shares	$ 233,155
Purchase price of furniture and equipment		7,772
Purchase price of goodwill		$ 225,383