10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

x	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended November 30, 2014
	or
¨	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from __________ to __________
	Commission File Number:  333-177518

Aja Cannafacturing, Inc.

(Exact name of registrant as specified in its charter)

Nevada	45-2758994
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
31500 Grape Street Suite 3-345 Lake Elsinore, CA 92532
(Address of principal executive offices)
(714) 733-1412
(Registrant’s telephone number)

N/A

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

Indicated 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 x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

¨ Large accelerated filer	¨Accelerated filer
¨ Non-accelerated filer	x Smaller reporting company

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

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 923,984,484 common shares as of January 12, 2014.

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 (§ 229.405 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 ¨

TABLE OF CONTENTS

		Page
	PART I - FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	19
Item 4:	Controls and Procedures	19
	PART II - OTHER INFORMATION
Item 1:	Legal Proceedings	20
Item 1A:	Risk Factors	20
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3:	Defaults Upon Senior Securities	20
Item 4:	Mine Safety Disclosures	20
Item 5:	Other Information	20
Item 6:	Exhibits	21

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our unaudited financial statements included in this Form 10-Q are as follows:

Unaudited Financial Statements:
	Consolidated Balance Sheets as of November 30, 2014 and August 31, 2014 (unaudited);	F-2
	Consolidated Statements of Operations for the three months ended November 30, 2014 and 2013 (unaudited);	F-3
	Consolidated Statements of Cash Flows for the three months ended November 30, 2014 and 2013 (unaudited);	F-4
	Notes to Consolidated Financial Statements (unaudited)	F-5

3

AJA CANNAFACTURING, INC.

(FORMERLY IDS INDUSTRIES, INC.)

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	November 30, 2014			August 31, 2014
ASSETS
Current Assets:
Cash	$	5,868		$	43,993
Accounts receivable, net of allowance of $8,753 and $8,753, respectively		8,752			8,752
Prepaid expenses and other current assets		9,882			88,871
Total Current Assets		24,502			141,616
Total Assets	$	24,502		$	141,616
LIABILITIES AND STOCKHOLDERS’ DEFICIT
LIABILITIES:
Current Liabilities:
Accounts payable	$	177,866		$	154,178
Derivative liability		926,163			558,194
Accrued compensation		5,695			52,686
Accrued expenses		44,080			43,483
Accrued interest		33,957			26,051
Convertible notes payable, net of discount of $445,952  and $174,125, respectively		376,184			340,813
Notes payable – related party net of discount of $0 and $244,839, respectively		-			30,135
Other notes payable		25,100			52,455
Total Current Liabilities		1,589,045			1,257,995
Total Liabilities		1,589,045			1,257,995
STOCKHOLDERS’ DEFICIT:
Preferred stock, par value $.001, 10,000,000 authorized, 1,000,000 and 0 shares issued and outstanding, respectively		1,000			-
Common stock, $.001 par value, 3,000,000,000 common shares authorized, 434,932,056 and 127,184,335 shares issued and outstanding, respectively		434,932			127,184
Additional paid in capital		1,654,906			1,555,834
Accumulated deficit		(3,655,381	)		(2,799,397	)
Total Stockholders’ Deficit		(1,564,543	)		(1,116,379	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	24,502		$	141,616

The accompanying notes are an integral part of these consolidated financial statements.

F-2

AJA CANNAFACTURING, INC.

(FORMERLY IDS INDUSTRIES, INC.)

STATEMENTS OF OPERATIONS

(unaudited)

	For the Three Months Ended November 30,
	2014			2013
Revenue	$	-		$	-
Operating expenses:
Professional fees		35,615			25,494
Stock based compensation		163,755			-
Salaries and wages		8,419			85,733
Marketing and advertising		9,150			23,850
General and administrative		175,488			105,018
Total operating expenses		392,427			240,095
Loss from operations		(392,427	)		(240,095	)
Other income and (expense):
Amortization of debt discount		(304,012	)		(81,482	)
Derivative expense		(422,992	)		-
Gain (loss) on derivative liability		386,023			126,960
Loss on debt conversion		(70,849	)		-
Penalty expense		(36,000	)		-
Interest expense		(15,727	)		(11,807	)
Interest income		-			2,807
Total other expense		(463,557	)		36,478
Loss before provision for income taxes		(855,984	)		(203,617	)
Provision for income taxes		-			-
Net Loss	$	(855,984	)	$	(203,617	)
Loss per share:
Basic and diluted	$	(0.00	)	$	(0.01	)
Weighted average shares outstanding: basic  and diluted		273,869,821			34,313,114

 The accompanying notes are an integral part of these consolidated financial statements.

F-3

AJA CANNAFACTURING, INC.

(FORMERLY IDS INDUSTRIES, INC.)

STATEMENTS OF CASH FLOWS

(unaudited)

	For the Three Months Ended November 30,
	2014			2013
Cash flows from operating activities:
Net loss for the period	$	(855,984	)	$	(203,617	)
Adjustments to reconcile net loss to net cash used in operations:
Stock based compensation and services		163,755			-
(Gain) loss on fair value of derivatives		(386,023	)		(126,960	)
Amortization of discounts		304,012			81,482
Loss on debt conversion		70,849			-
Derivative expense		422,992			74,738
Severance and penalty expense		161,314			-
Change in assets and liabilities:
(Increase)/decrease in prepaids and other current assets		3,034			33,485
(Increase)/decrease in note receivable – related party		-			38,889
Increase in interest receivable – related party		-			(2,807	)
Increase/(decrease) in accounts payable		23,689			49,692
Increase/(decrease) in accrued expenses		19,237			1,333
Net cash used in operating activities		(73,125	)		(53,765	)
Cash flows from investing activities:		-			-
Cash flows from financing activities:
Proceeds from convertible debt		38,000			35,000
Increase / (decrease) in note payable – related party		-			5,250
Increase / (decrease) in other notes payable		(3,000	)		11,555
Net cash provided by financing activities		35,000			51,805
Net decrease in cash		(38,125	)		(1,960	)
Cash at beginning of period		43,993			1,960
Cash at end of period	$	5,868		$	-
Supplemental Cash Flow Information:
Cash paid for interest	$	-		$	-
Cash paid for taxes	$	-		$	-
Supplemental disclosure of non-cash activities
Common stock issued for conversion of debt	$	320,020		$	-
Debt discount from fair value of embedded derivatives	$	331,000		$	-

The accompanying notes are an integral part of these consolidated financial statements.

F-4

AJA CANNAFACTURING, INC.

(FORMERLY IDS INDUSTRIES, INC.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

November 30, 2014

(Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Aja Cannafacturing, Inc. (“Aja” or the “Company”) is focusing on the breeding, cultivation, and processing of raw industrial Cannabis materials for industry specific applications such as building materials (Hempcrete), automotive (biofuels), plastics (healthcare) and textiles (fabrics).

The Company was formed as Step Out, Inc., a Nevada corporation on May 2, 2011. On July 18, 2011 Step Out issued 10,000,000 common shares to acquire 100% membership interest in SOI Nevada, LLC, a Nevada limited liability corporation from the sole shareholder. The membership interest was acquired at book value from the shareholder. SOI Nevada, LLC became a wholly-owned subsidiary of Step Out, Inc.

On September 19, 2012, the Company entered into an Agreement of Conveyance, Transfer and Assignment of Membership Interests and Assumption of Obligations (the “Agreement”) with our sole officer and director, Sterling Hamilton. Pursuant to the Agreement, the Company transferred all membership interests in our operating subsidiary, SOI Nevada, LLC, to Mr. Hamilton. In exchange for this assignment of membership interests, Mr. Hamilton agreed to assume and cancel all liabilities relating to our former business of developing a chain of flotation tank therapy spas. In addition, Mr. Hamilton agreed to release all liability under a promissory note due and owing to him in the amount of $2,000.

As a result of the Agreement, the Company is no longer pursuing its former business plan. Under the direction of our newly appointed officers and directors, as set forth below, we intend to develop a business focused on the design, development, manufacturing and distribution of renewable-energy based portable and mobile electrical generators and power stations under our own brand name, IDS Solar TechnologiesÔ.

Effective October 12, 2012, the Board of Directors approved a merger with our wholly-owned subsidiary, IDS Acquisition, Inc., pursuant to NRS 92A.180. IDS Acquisition was incorporated in the state of Nevada on September 25, 2012. As part of the merger with our wholly-owned subsidiary, our board authorized a change in the name of the company to “IDS Solar” Technologies, Inc.”

Effective February 7, 2013, the board of directors approved a twelve for one forward split of the Company’s common stock. All shares throughout these financial statement and Form 10-Q have been retroactively restated to reflect the forward split.

Effective May 29, 2013, the board of directors authorized a change in the name of the company to “IDS Industries, Inc.”

On February 6, 2014, the board of directors approved the launch of Propel Management Group, Inc. (PMG) a new wholly owned subsidiary. The core competency of this consulting service includes developing and implementing Program Management in product development, service industry, distribution and logistics. The addition of PMG has already proven to translate in-house core competencies in to additional revenue stream opportunities for IDS Industries.

On March 10, 2014, the board of directors approved the launch of Charge! Energy Storage, Inc. (Charge!) a new wholly owned subsidiary.

Effective August 7, 2014, the board of directors authorized a change in the name of the company to “Aja Cannafacturing, Inc.” The new name reflects the direction and focus of the Company more accurately.

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"). In the opinion of management, all adjustments necessary in order for the financial statements to be not misleading have been reflected herein. The interim results for the three months ended November 30, 2014 are not necessarily indicative of the results for the full fiscal year and should be read in conjunction with the August 31, 2014 Form 10-K. The Company has adopted an August 31 year end.

F-5

Principles of Consolidation

The consolidated financial statements include the accounts of Aja Cannafacturing, Inc. and its wholly-owned subsidiary Propel Management Group, Inc. and Charge! Energy Storage, Inc. All significant intercompany accounts and transactions have been eliminated.

Cash and Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents. There were no cash equivalents as of November 30, 2014 and August 31, 2014.

Basic Loss per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Potentially dilutive shares were excluded from the computation as of November 30, 2014 and 2013 since they would have been anti-dilutive.

Concentrations of Credit Risk

The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash.

Allowance for Doubtful Accounts

We maintain an allowance for doubtful accounts for estimated losses that result from the failure or inability of our customers to make required payments. When determining the allowance, we consider the probability of recoverability of accounts receivable based on past experience. Accounts receivable may also be fully reserved for when specific collection issues are known to exist. The analysis of receivables is performed quarterly, and the allowances are adjusted accordingly.

Fair Value of Financial Instruments

For certain of the Company’s non-derivative financial instruments, including cash and cash equivalents, receivables, prepaids, accounts payable, accrued liabilities, and notes payable, the carrying amount approximates fair value due to the short-term maturities of these instruments. The estimated fair value of long-term debt is based primarily on borrowing rates currently available to the Company for similar debt issues. The fair value approximates the carrying value of long-term debt.

ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. 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 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. Observable inputs such as quoted prices in active markets;

· Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

· Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The following presents the gross value of assets and liabilities that were measured and recognized at fair value, as of November 30, 2014 and August 31, 2014.

Derivative liability	Level I		Level II		Level III		Total
November 30, 2014	$	-	$	926,163	$	-	$	926,163
August 31, 2014	$	-	$	558,194	$	-	$	558,194

F-6

Stock-Based Compensation

The Company accounts for equity based transactions with non-employees under the provisions of ASC Topic No. 505-50, “Equity-Based Payments to Non-Employees” (“Topic No. 505-50”). Topic No. 505-50 establishes that equity-based payment transactions with non-employees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The fair value of common stock issued for payments to non-employees is measured at the market price on the date of grant. The fair value of equity instruments, other than common stock, is estimated using the Black-Scholes option valuation model. In general, the Company recognizes the fair value of the equity instruments issued as deferred stock compensation and amortizes the cost over the term of the contract. During the three months ended November 30, 2014, the Company issued 58,000,000 shares of common stock valued at $63,800 to non-employees.

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation - Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.  The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. During the three months ended November 30, 2014, the Company issued 4,000,000 shares of common stock valued at $23,000 to its employees.

Income Taxes

 Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carry-forwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence; it is more likely than not such benefits will be realized. The Company’s deferred tax assets were fully reserved at November 30, 2014 and 2013.

The Company accounts for its income taxes using the Income Tax topic of the FASB ASC 740, which requires the recognition of deferred tax liabilities and assets for expected future tax consequences of events that have been included in the financial statements or tax returns.  Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

Revenue Recognition

Sales of products or services and related costs of products or services sold are recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. These terms are typically met upon the prepayment or invoicing, and shipment of products.

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect.  These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued, that might have a material impact on its financial position or results of operations.

NOTE 2 – PREPAIDS AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following at:

	November 30, 2014		August 31, 2014
Prepaid consulting	$	-	$	75,955
Other assets		5,319		5,319
Unamortized original issue discount		4,563		7,344
Deferred financing costs		-		253
	$	9,882	$	88,871

F-7

NOTE 3 – CONVERTIBLE NOTES PAYABLE

On December 3, 2012, the Company executed a convertible promissory note with Steven J. Caspi (“Caspi”) for $125,000. The note bears interest at 5% and was due on or before November 30, 2013. Pursuant to the terms of the note, it is convertible into shares of the Company’s common stock at the option of the holder at any time in whole or in part at a conversion rate of $1.25. On the commitment date, management evaluated the conversion feature with respect to the benefit of the holder and determined the value of the conversion feature to be $60,000. This amount has been recorded as a discount against the outstanding balance of the note. The discount is being amortized to interest expense over the life of the debt using the effective interest method. The note also issued one warrant giving the holder the right to purchase 15,625 shares of common stock at a price of $2.00 per share for a period of five years. As required by ASC 470-20 the Company recorded a debt discount to additional paid in capital in the amount of $16,455 based on the discount to market available at the time of issuance. The discount has been fully amortized to interest expense. On March 10, 2014, the Company executed a forbearance agreement with the lender modifying the terms of the original agreement. Per the new agreement the conversion price was changed to $0.005 per share and the due date was extended to November 30, 2014. As a result of the new conversion price the Company recorded an additional debt discount of $48,539. The additional discount will be amortized over the remaining term of the note. On March 21, 2014, $25,000 of the note was converted into 5,000,000 shares of common stock. The note is currently past due, shown net of a debt discount of $0 and has accrued interest of $10,422.

On June 15, 2013, the Company executed a promissory note for $15,000 with a shareholder. The note bears interest at 10% and was due within ninety days. On October 15, 2014, the original $15,000, accrued interest of $600 and an additional cash loan of $8,755 was rolled into a new convertible promissory note for $24,355. The new note bears interest at 10% per annum and is convertible at a 49% discount of the VWAP occurring during the ten days preceding the conversion date. The Company recorded a debt discount in the amount of $24,355 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $35,664 based on the Black Scholes Merton pricing model using the following attributes: .68% risk free rate, 258% volatility and a three year term to maturity. As of November 30, 2014, $9,141 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $36,025 resulting in a loss on the change in fair value of the derivative. The note is shown net of a debt discount of $15,214 at November 30, 2014 as accrued interest of $2,704.

On June 19, 2013, the Company executed a Convertible Promissory Note (the “note”) with JMJ Financial (“JMJ”). The nominal principal sum of the Note is $300,000, with an original issue discount of ten percent (10%). The note matures one year from the effective date of each payment, which is made at the sole discretion of JMJ. The Note is convertible into common stock in whole or in part at a variable conversion price equal to a 40% discount to the lowest trade price in the twenty five trading days prior to conversion.

On September 30, 2013, the Company received its third payment on the original JMJ Financial convertible promissory note dated June 19, 2013 of $27,500, including a $2,500 original issue discount. The Company recorded a debt discount in the amount of $27,500 (payment plus 10% original discount) in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $70,390 based on the Black Scholes Merton pricing model using the following attributes: .10% risk free rate, 261% volatility and a one year term to maturity. On June 5, 2014, $20,250 of principal was converted into 4,500,000 shares of common stock. In September 2014, the remaining balance on the note, including all interest, of $20,772 was converted into 10,883,336 shares of common stock. Due to the conversion the remaining debt discount of $2,184 was expensed and a gain on derivative of $19,877 recognized.

On February 27, 2014, the Company executed a convertible promissory note for $73,000 with Asher Enterprises, Inc. The note bears interest at 8% per annum and is due on or before December 3, 2014. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. The Company recorded a debt discount in the amount of $73,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $118,582 based on the Black Scholes Merton pricing model. During the three months ended November 30, 2014, all principal and interest of $73,000 and $2,920, respectively was converted into 42,830,672 shares of common stock. Due to the conversion the remaining debt discount of $70,080 was expensed and a gain on derivative of $91,120 recognized.

F-8

On March 5, 2014, the Company executed a Convertible Promissory Note (the “note”) with Black Mountain Equities, Inc. (“Black Mountain”). The nominal principal sum of the Note is $250,000, with an original issue discount of ten percent (10%). The note matures one year from the effective date of each payment, which is made at the sole discretion of Black Mountain. The Note is convertible into common stock in whole or in part at a variable conversion price equal to the lessor of $0.025 or a 60% discount to the lowest trade price in the twenty five trading days prior to conversion. The Company received its first payment towards the loan of $25,000. The Company recorded a debt discount in the amount of $27,500 (payment plus 10% original discount) in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $110,515 based on the Black Scholes Merton pricing model using the following attributes: .13% risk free rate, 193% volatility and a one year term to maturity. During the three months ended November 30, 2014, $23,800 of principal was converted into 26,240,311 shares of common stock. In addition, due to not fulfilling a conversion request within the required time frame the Company incurred a $16,000 penalty. As of November 30, 2014, $20,343 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $35,303 resulting in a loss on the change in fair value of the derivative. The note is shown net of a debt discount of $7,157 at November 30, 2014 and has accrued interest of $2,750.

On March 19, 2014, the Company executed a convertible promissory note for $53,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before December 26, 2014. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. During the three months ended November 30, 2014, all principal and interest of 53,000 and $2,120, respectively was converted into 58,597,904 shares of common stock. Due to the conversion the Company recognized a loss on conversion of debt of $53,274.

On April 17, 2014, the Company received its fourth payment on the original JMJ Financial convertible promissory note dated June 19, 2013 of $44,000, including a $4,000 original issue discount. The Company recorded a debt discount in the amount of $44,000 (payment plus 10% original discount) in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $104,127 based on the Black Scholes Merton pricing model using the following attributes: .11% risk free rate, 214% volatility and a one year term to maturity. During the three months ended November 30, 2014, $18,141 of principal was converted into 44,230,000 shares of common stock. As of November 30, 2014; $28,888 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $53,630 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $15,112 at November 30, 2014.

On May 20, 2014, the Company executed a convertible promissory note for $53,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before February 23, 2015. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. The Company recorded a debt discount in the amount of $53,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $122,302 and derivative expense of $69,302 based on the Black Scholes Merton pricing model. As of November 30, 2014, $7,729 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $84,667 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $45,271 at November 30, 2014 and has accrued interest of $2,485.

On May 31, 2013, the Company’s former CEO, Bruce Knoblich and the Company executed a promissory note for $289,998, $2,150 of which has been repaid. The note bears interest at 5% and was due November 30, 2013. On July 22, 2014, the principal and accrued interest were rolled into a new convertible promissory note for $304,973. The new note bears interest at 8% per annum and is convertible at a 49% discount of the average trading price during the ten days preceding the conversion date. The Company recorded a debt discount in the amount of $274,973 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $395,341 based on the Black Scholes Merton pricing model using the following attributes: .11% risk free rate, 230% volatility and a one year term to maturity. On July 22, 2014, $30,000 of the note was converted into 6,000,000 shares of common stock. On September 24, 2014 $19,250 of the note was converted into 5,000,000 shares of common stock. On November 6, 2014 an additional $20,000 was loaned to the Company. In addition, during the three months ended November 30, 2014, Mr. Knoblich made the following debt assignments: $20,000 to Blackbridge Capital, LLC; $50,000 to WHC Capital, LLC; and $50,000 to Beaufort Capital Partners, LLC. As of November 30, 2014, $139,249 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $188,690 resulting in a gain on the change in fair value of the derivative. The balance of the note is $155,723 and is shown net of a debt discount of $105,590 and has accrued interest of $7,029.

F-9

On June 24, 2014, the Company received its fifth payment on the original JMJ Financial convertible promissory note dated June 19, 2013 of $44,000, including a $4,000 original issue discount. The Company recorded a debt discount in the amount of $44,000 (payment plus 10% original discount) in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $66,010 based on the Black Scholes Merton pricing model using the following attributes: .11% risk free rate, 214% volatility and a one year term to maturity. As of November 30, 2014, $22,060 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $86,144 resulting in a loss on the change in fair value of the derivative. The note is shown net of a debt discount of $21,940 at November 30, 2014.

On July 11, 2014, the Company executed a convertible promissory note for $31,500 with LG Capital Funding, LLC. The note bears interest at 8% per annum and is due on or before July 11, 2015. The note is convertible at a 45% discount any time during the period beginning 180 days following the date of the note. Accrued interest on the note as of November 30, 2014 is $987.

On August 18, 2014, the Company executed a convertible promissory note for $53,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before May 20, 2015. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. Accrued interest on the note as of November 30, 2014 is $1,104.

On September 17, 2014, the Company executed a convertible promissory note for $20,000 with Blackbridge Capital, LLC. The note bears interest at 5% per annum and is due on or before March 17, 2015. The note is convertible at a 50% discount any time. On September 18, 2014, the note was converted into 12,121,212 shares of common stock. Due to the conversion the Company recognized a loss on conversion of debt of $17,576.

On September 24, 2014, the Company executed a convertible promissory note for $50,000 with WHC Capital, LLC. The note bears interest at 12% per annum and is due on or before September 24, 2015. The note is convertible at a 49% discount at any time. The Company recorded a debt discount in the amount of $50,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $244,523 and derivative expense of $194,523 based on the Black Scholes Merton pricing model. On November 26, 2014, $5,148 of the principal was converted into 15,480,000 shares of common stock. As of November 30, 2014, $9,234 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $88,593 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $40,766 at November 30, 2014 and has accrued interest of $1,061.

On October 24, 2014, the Company executed a convertible promissory note for $50,000 with Beaufort Capital Partners, LLC. The note is non-interest bearing and is due on or before October 24, 2015. The note is convertible at a 50% discount at any time. The Company recorded a debt discount in the amount of $50,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $118,894 and derivative expense of $68,894 based on the Black Scholes Merton pricing model. During November 2014, $10,750 of the principal was converted into 30,714,286 shares of common stock. As of November 30, 2014, $13,103 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $88,397 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $36,897.

On October 30, 2014, the Company executed a convertible promissory note for $18,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before August 3, 2015. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. Accrued interest on the note as of November 30, 2014 is $122.

F-10

Pursuant to the terms of the Resignation and Departure Package of Scott Plantinga, the former CEO, the Company executed a convertible promissory note on October 20, 2014 for $45,000 with Mr. Plantinga. The note bears interest at 10% per annum and is due in the following installments: $25,000 on November 10, 2014 and $20,000 due February 10, 2015. Failure to pay on the due date will result in a one-time $20,000 penalty. The note is convertible at a 50% discount at any time. The Company recorded a debt discount in the amount of $45,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $67,822 and derivative expense of $22,822 based on the Black Scholes Merton pricing model. The Company failed to make the required $25,000 payment on November 10^th and therefore incurred the $20,000 penalty charge. As of November 30, 2014, $5,055 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $66,922 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $39,945 at November 30, 2014 and has accrued interest of $137.

Pursuant to the terms of the Resignation and Departure Package of Scott Plantinga, the former CEO, the Company executed a convertible promissory note on October 20, 2014 for $133,000 with Mr. Plantinga. The note consists of all accrued salary and bonus and additional severance compensation, bears interest at 12% per annum and is due October 20, 2015. The note is convertible at a 50% discount at any time. The Company recorded a debt discount in the amount of $133,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $200,451 and derivative expense of $67,451 based on the Black Scholes Merton pricing model. As of November 30, 2014, $14,940 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $197,792 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $118,060 at November 30, 2014 and has accrued interest of $1,793.

A summary of the status of the Company’s debt discounts, derivative liabilities and original issue discounts, and changes during the periods is presented below:

Debt Discount	August 31, 2014		Additions		Amortization			November 30, 2014
Asher – 2/27/14		70,080		-		(70,080	)		-
Beaufort Capital		-		50,000		(13,103	)		36,897
Black Mountain – 3/5/14		14,013		-		(6,856	)		7,157
Caspi		10,094		-		(10,094	)		-
JMJ – 9/30/13		2,184		-		(2,184	)		-
JMJ – 4/17/14		27,606		-		(12,494	)		15,112
JMJ – 6/24/14		32,910		-		(10,970	)		21,940
KBM – 5/20/14		-		53,000		(7,729	)		45,271
Knoblich		244,839		-		(139,249	)		105,590
Neal		17,238		-		(2,024	)		15,214
Scott Plantinga		-		133,000		(14,940	)		118,060
Scott Plantinga		-		45,000		(5,055	)		39,945
WHC Capital		-		50,000		(9,234	)		40,766
	$	418,964	$	331,000	$	(304,012	)	$	445,952

F-11

Derivative Liabilities	August 31, 2014		Initial Valuation		Revaluation on 11/30/14		Change in fair value of Derivative
Asher – 2/27/14		91,120		-		-		(91,120	)
Beaufort Capital		-		118,894		88,397		(30,497	)
Black Mountain – 3/5/14		33,509		-		35,303		1,794
JMJ – 9/30/13		19,877		-		-		(19,877	)
JMJ - 4/17/14		60,776		-		53,630		(7,146	)
JMJ – 6/24/14		63,221		-		86,144		22,923
KBM – 5/20/14		-		122,302		84,667		(37,635	)
Knoblich		269,185		-		188,690		(80,495	)
Neal		20,506		-		36,025		15,519
Scott Plantinga		-		67,822		66,922		(900	)
Scott Plantinga		-		200,451		197,792		(2,659	)
WHC Capital		-		244,523		88,593		(155,930	)
	$	558,194	$	753,992	$	926,163	$	(386,023	)

Original Issue Discount	August 31, 2014		Additions		Amortization			November 30, 2014
Black Mountain – 3/5/14	$	1,405	$	-	$	(624	)	$	781
JMJ – 9/30/13		185		-		(185	)		-
JMJ – 4/17/14		2,499		-		(986	)		1,513
JMJ – 6/4/14		3,255		-		(986	)		2,269
	$	7,344	$		$	(2,781	)	$	4,563

NOTE 4 – NOTES PAYABLE

On June 12, 2013, the Company executed a promissory note for $15,000. The loan was due August 12, 2013. The note does not bear interest but its principal balance includes a loan fee of $5,000. This loan has been extended with no specific terms of repayment.

As of November 30, 2014, the Company owed various shareholders $10,100 for advances made to cover certain operating costs. The loans accrue interest at 8% per annum and are due on demand.

NOTE 5 – STOCK WARRANTS

Pursuant to the terms and conditions of the convertible promissory note dated February 27, 2013, the Company issued a warrant to purchase 50,000 shares of the Company’s common stock. The aggregate fair value of the warrants totaled $2,044 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.20, 1.30% risk free rate, 64% volatility and expected life of the warrants of 3 years.

Pursuant to the terms and conditions of the convertible promissory note dated November 30, 2012, the Company issued a warrant to purchase 15,625 shares of the Company’s common stock. The aggregate fair value of the warrants totaled $16,455 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $2.00, .63% risk free rate, 85.9% volatility and expected life of the warrants of 5 years.

Pursuant to the terms and conditions of the convertible promissory note dated February 4, 2014, the Company issued a warrant to purchase 1,000,000 shares of the Company’s common stock. The aggregate fair value of the warrants totaled $11,769 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.02, 1.46% risk free rate, 197.6% volatility and expected life of the warrants of 5 years.

F-12

Pursuant to the terms and conditions of the Warrant agreement dated February 27, 2014, the Company issued a warrant to purchase 2,000,000 shares of the Company’s common stock. The aggregate fair value of the warrants totaled $44,169 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.01, 2.11% risk free rate, 246% volatility and expected life of the warrants of 7 years.

A summary of the status of the Company’s outstanding warrants and changes during the periods is presented below:

	Shares available to purchase with warrants		Weighted Average Price		Weighted Average Fair Value
Outstanding, August 31, 2014		3,065,625	$	0.03	$	0.03
Issued		-		-		-
Exercised		-		-		-
Forfeited		-		-		-
Expired		-		-		-
Outstanding, November 30, 2014		3,065,625	$	0.03	$	0.03
Exercisable, November 30, 2014		3,065,625	$	0.03	$	0.03

Range of Exercise Prices		Number Outstanding at 11/30/14		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
	$0.10 - $2.00		3,065,625	5.7 years	$	0.03

NOTE 6 –COMMON STOCK TRANSACTIONS

On October 21, 2014, the Company’s Board of Directors approved a resolution to amend its Articles of Incorporation to increase the aggregate number of common shares that it may issue to three billion (3,000,000,000) shares.

On September 18, 2014, the Company issued 12,121,212 shares of common stock to Blackbridge Capital, LLC in conversion of total principal and interest of $20,000 (see Note 3).

On September 24, 2014, the Company issued 5,000,000 shares of common stock to the Company’s former CEO, Bruce Knoblich in conversion of $19,250 of the amount due to him.

On November 6, 2014, the Company issued 15,480,000 shares of common stock to WHC Capital, LLC in conversion of principal of $5,418 (see Note 3).

During the three months ended November 30, 2014, the Company issued a total of 42,830,672 shares of common stock to Asher Enterprises, Inc. in conversion of total principal and interest of $75,920 (see Note 3).

During the three months ended November 30, 2014, the Company issued a total of 55,113,336 shares of common stock to JMJ Financial in conversion of total principal and interest of $38,912 (see Note 3).

During the three months ended November 30, 2014, the Company issued a total of 23,240,311 shares of common stock to Black Mountain Equities, Inc. in conversion of total principal and interest of $23,800 (see Note 3).

During the three months ended November 30, 2014, the Company issued a total of 58,597,904 shares of common stock to KBM Worldwide, Inc., in conversion of total principal and interest of $55,120. As a result of the conversion the Company recognized a loss on conversion of debt of $53,274 (see Note 3).

F-13

During the three months ended November 30, 2014, the Company issued a total of 30,714,286 shares of common stock to Beaufort Capital Partners in conversion of total principal and interest of $10,750 (see Note 3).

NOTE 7 – PREFERRED STOCK

On October 17, 2014, our board of directors approved a Certificate of Designation for Class A Convertible Preferred Stock. This newly designation class of preferred stock consists of one million (1,000,000) shares. Class A Convertible Preferred Stock votes together with our common stock at a rate of three thousand (3,000) votes for each preferred share held. In addition, Class A Convertible Preferred Stock is convertible to shares of our common stock, at the option of the holder, at a rate of one share of common stock for each preferred share held. In any liquidation, holders of our Class A Convertible Preferred Stock will participate pro-rata with the holders of our common stock. Shares of Class A Convertible Preferred Stock have no dividend rights.

On October 17, 2014, our board of directors approved an Executive Employment Agreement (the “Agreement”) with Kendall Smith under which Mr. Smith was retained to serve as the new President. Under the Agreement, Mr. Smith will serve as the President and CEO for an initial term ending on August 31, 2015, with an automatic renewal for an additional year unless the Agreement is terminated by advance notice. As a signing bonus under the Agreement, Mr. Smith was issued 1,000,000 shares of our newly-designated Class A Convertible Preferred Stock. As a result of the issuance 1,000,000 shares of Class A Convertible Preferred Stock to Kendall Smith, as discussed above, Mr. Smith is deemed to have acquired control of the company on October 17, 2014.

NOTE 8 - RELATED PARTY TRANSACTIONS

During the three months ended November 30, 2014, the Company issued 4,000,000 shares of common stock to employees for compensation. The shares were valued at the closing stock price on the date of grant for total non-cash expense of $23,000.

On November 6, 2014, our Board of Directors approved a Severance and Release Agreement (the “Agreement”) with our departing former CEO and board member, Scott Plantinga. The Agreement resolves all claims for compensation, benefits, or other consideration due to Mr. Plantinga under his Executive Employment Agreement dated September 1, 2013.

NOTE 9 - GOING CONCERN

As of November 30, 2014, the Company has a working capital deficit of $1,564,543, limited revenue and an accumulated deficit of $3,655,381. The financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. Without realization of additional capital, it would be unlikely for the Company to continue as a going concern. The Company’s management plans on raising cash from public or private debt or equity financing, on an as needed basis and in the longer term, upon achieving profitable operations through its business activities.

NOTE 10 - SUBSEQUENT EVENTS

Subsequent to November 30, 2014, Beaufort Capital Partners, LLC converted $17,680 of the amount due to them into 63,266,667 shares of common stock.

Subsequent to November 30, 2014, JMJ Financial converted $19,680 of the amount due to them into 82,600,000 shares of common stock.

Subsequent to November 30, 2014, Black Mountain Equities, Inc. converted $12,850 of the amount due to them into 50,428,571 shares of common stock.

Subsequent to November 30, 2014, the Company cancelled the 12,121,212 shares issued to Blackbridge Capital, LLC, on September 18, 2014 for conversion of debt. The $20,000 of debt still due was then converted into 74,500,000 shares of common stock.

F-14

Subsequent to November 30, 2014, WHC Capital, LLC converted $15,273 of the amount due to them into 61,905,500 shares of common stock.

Subsequent to November 30, 2014, KBM Worldwide, Inc. converted $45,030 of the amount due to them into 188,072,902 shares of common stock.

On December 11, 2014, the Company executed a convertible promissory note for $18,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before August 3, 2015. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note.

On December 11, 2014, the John Neal note in the amount $24,355 plus accrued interest of $2,730 was assigned to Beaufort Capital Partners, LLC. Concurrent with this assignment, we entered into a replacement Convertible Promissory Note with Beaufort Capital Partners, LLC.

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to November 30, 2014 through the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements other than the events described above.

F-15

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

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements.” These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

Company Overview

Our business focuses on the breeding, cultivation, and processing of raw industrial cannabis materials for industry specific applications such as building materials (Hempcrete), automotive (biofuels), plastics (healthcare) and textiles (fabrics). We are currently negotiating an exclusive production agreement with Luna Agro & Earth Science, LLC (“LAES”), a Company partly owned by our CEO. The agreement would provide us with exclusive rights to twenty (20) acres of land dedicated to cultivating our planned line of proprietary industrial cannabis genetics. Under the production agreement, we would pay LAES a production fee of five percent (5%) of our total wholesale price of all materials supplied.

Products

Our line of products is scheduled to be available in the third quarter of our current fiscal year. At that time we will offer four products. Our lineup includes 1) Sterilized hemp seed, 2) Hemp bark fiber, 3) Hemp hurds, and 4) Raw hemp essential oil.

Expansion and Development Plan

Our strategy includes providing consulting opportunities, allowing new mergers and potential growth opportunities by educating commercial enterprises how thousands of additives currently used across all industries can be substituted with a natural and more cost effective material. Our pending agreement with LAES will allow for us to expand our agricultural foot print from 20 acres to 50 acres by the fourth quarter of our current fiscal year, more than doubling our production/supply capacity. We feel that having such a large dedicated footprint will place us in a position to become the leader and main supplier of all domestic raw industrial cannabis material.

Results of Operations

Results of Operations for the Three Months ended November 30, 2014 compared to the Three Months Ended November 30, 2013.

Operating Expenses

Professional fees for the three months ended November 30, 2014 were $35,615, as compared to $25,494 for the three months ended November 30, 2013, an increase of $10,121 or 40%.  Professional fees mainly consist of legal, auditor and other fees associated with the Company’s quarterly filings and year end audit. The increase in the current period is attributed to an increase in audit fees that were incurred.

Stock based compensation was $163,755 for the three months ended November 30, 2014, as compared to $0 for the three months ended November 30, 2013.  This non-cash compensation expense consists of stock issued to employees and to third parties for various consulting and marketing services.

Salaries and wage expense for the three months ended November 30, 2014 decreased $77,314 or 90% to $8,419, as compared to $85,733 for the prior comparable period. The large decrease is the result of a reduction of staff resulting in fewer employees in the current period.

Marketing and advertising expense for the three months ended November 30, 2014 was $9,150, as compared to $23,850 for the three months ended November 30, 2013. The decrease of $14,700 is in conjunction with change to the Company business model.

16

General and administrative expense for the three months ended November 30, 2014 increased $70,470 to $175,488 as compared to $105,018 for the prior comparable period. Although, a majority G&A expense actually decreased, this decrease was offset with the recognition of $153,000 of severance expense.

Overall there was a $152,332 increase in operating expenses for the comparable period ended November 30.

Other Income and Expense

During the three months ended November 30, 2014 we incurred $304,012 of expense for amortization of debt discount and had a gain on the change in fair value of our derivative liability of $386,023. These gains and losses are a result of the derivative accounting required for the issuance of convertible debt. We also incurred $422,992 of derivative expense compared to $0 in the prior period, a $70,849 loss on conversion expense and $36,000 of penalty expense, none of which were incurred in the prior period. Overall, other income and loss went from other income for the three months ended November 30, 2013 of $36,478 to a loss of $463,557 for the three months ended November 30, 2014.

Net Loss

Overall we recorded a net loss of $855,984 for the three months ended November 30, 2014, as compared to a net loss of $203,617 for the three months ended November 30, 2013, an increase of $652,367. Much of the loss is attributed to non-cash expense from amortization of debt discount, derivative expense.

Liquidity and Capital Resources

We have received short term loan financing to fund operations under various promissory notes. Our promissory note obligations currently issued and outstanding are as follows:

We owe the principal sum of $100,000 to Steven J. Caspi under the terms of a Forbearance Agreement issued March 10, 2014 which modified the terms of the original Convertible Promissory Note and Security Agreement (the “Note”) issued November 19, 2012. The Forbearance Agreement bears interest at an annual rate of five percent (5%), with all principal and interest being due on or before November 30, 2014. The Note is convertible to shares of our common stock, in whole or in part at the option of Mr. Caspi, at a conversion price of $0.005 per share. This note is currently past due and has accrued interest of $10,422.

On May 31, 2013, the Company’s former CEO, Bruce Knoblich and the Company executed a promissory note for $289,998, $2,150 of which was been repaid. On July 22, 2014, the principal and accrued interest were rolled into a new convertible promissory note for $304,973. The new note bears interest at 8% per annum and is convertible at a 49% discount of the average trading price during the ten days preceding the conversion date. On July 22, 2014, $30,000 of the note was converted into 6,000,000 shares of common stock. On September 24, 2014 $19,250 of the note was converted into 5,000,000 shares of common stock. On November 6, 2014 an additional $20,000 was loaned to the Company. In addition, during the three months ended November 30, 2014, Mr. Knoblich made the following debt assignments: $20,000 to Blackbridge Capital, LLC; $50,000 to WHC Capital, LLC; and $50,000 to Beaufort Capital Partners, LLC. As of November 30, 2014, $139,249 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $188,690 resulting in a gain on the change in fair value of the derivative. The current principal due on this note is $155,723. Accrued interest as of November 30, 2014 was $7,029.

On June 19, 2013, we entered into a $300,000 Promissory Note (the “Note”) with JMJ Financial (“JMJ”). The face amount of the Note includes an original issue discount of $30,000. Funds are loaned to the Company under a series of advances made under the Note. Loans made under the Note mature in one year from the date of the advance and, if repaid within ninety (90) days from the date of issue, the loans will not bear interest. Upon ninety days after the date of issue, a onetime interest charge of twelve percent (12%) of the principal amount will be applied. JMJ may convert all or part of the balance under the Note, at its discretion, into shares of our common stock. The conversion price is sixty percent (60%) of the lowest trading price for our common stock in the twenty-five trading days immediately preceding the conversion date.

Our outstanding loans with JMJ under the Note are as follows:

Date	Due Date	Principal and Interest Amount
April 17, 2014	April 17, 2015	$	11,957
June 24, 2014	June 24, 2015	$	49,777
	Total	$	61,734

17

On March 5, 2014, the Company executed a Convertible Promissory Note (the “note”) with Black Mountain Equities, Inc. (“Black Mountain”). The nominal principal sum of the Note is $250,000, with an original issue discount of ten percent (10%). The note matures one year from the effective date of each payment, which is made at the sole discretion of Black Mountain. The Note is convertible into common stock in whole or in part at a variable conversion price equal to the lessor of $0.025 or a 60% discount to the lowest trade price in the twenty five trading days prior to conversion. The Company received its first payment towards the loan of $25,000. Due to not fulfilling a conversion request within the required time frame the Company incurred a $16,000 penalty. The current principal due on this note is $6,850. Accrued interest as of November 30, 2014 was $2,750.

We have also received short term financing from KBM Worldwide, Inc. (“KBM”) under a series of Securities Purchase Agreements (the “SPAs”) and a Convertible Promissory Notes (the “Notes”). The Notes bear interest at an annual rate of 8%, with principal and interest coming due approximately nine (9) months from issue. The Note may be converted in whole or in part, at the option of the holder, to shares of our common stock, par value $0.001, at any time following 180 days after the issuance dates of the Notes. The conversion price under the Notes is a 49% discount to the average of the 3 lowest closing prices for our common stock on the 30 trading days immediately preceding the conversion dates.

Our outstanding loans with KBM are as follows:

Date	Due Date	Principal Amount
May 20, 2014	February 20, 2015	$	1,270
August 18, 2014	May 20, 2015	$	53,000
October 30, 2014	August 3, 2015	$	18,000
December 11,  2014	September 15, 2015	$	17,500
	Total	$	89,770

On July 11, 2014, the Company executed a convertible promissory note for $31,500 with LG Capital Funding, LLC. The note bears interest at 8% per annum and is due on or before July 11, 2015. The note is convertible at a 45% discount any time during the period beginning 180 days following the date of the note. Accrued interest on the note as of November 30, 2014 was $987.

On September 24, 2014, the Company executed a convertible promissory note for $50,000 with WHC Capital, LLC. The note bears interest at 12% per annum and is due on or before September 24, 2015. The note is convertible at a 49% discount at any time. The current principal due on this note is $29,579. Accrued interest as of November 30, 2014 was $1,061.

Pursuant to the terms of the Resignation and Departure Package of Scott Plantinga, the former CEO, the Company executed a convertible promissory note on October 20, 2014 for $45,000 with Mr. Plantinga. The note bears interest at 10% per annum and is due in the following installments: $25,000 on November 10, 2014 and $20,000 due February 10, 2015. Failure to pay on the due date will result in a one-time $20,000 penalty. The note is convertible at a 50% discount at any time. The Company failed to make the required $25,000 payment on November 10^th and therefore incurred the $20,000 penalty charge. The current principal due on this note is $65,000. Accrued interest as of November 30, 2014 was $137.

Pursuant to the terms of the Resignation and Departure Package of Scott Plantinga, the former CEO, the Company executed a convertible promissory note on October 20, 2014 for $133,000 with Mr. Plantinga. The note consists of all accrued salary and bonus and additional severance compensation, bears interest at 12% per annum and is due October 20, 2015. The note is convertible at a 50% discount at any time. The current principal due on this note is $133,000. Accrued interest as of November 30, 2014 was $1,793.

On October 24, 2014, the Company executed a convertible promissory note for $50,000 with Beaufort Capital Partners, LLC. The note is non-interest bearing and is due on or before October 24, 2015. The note is convertible at a 50% discount at any time. The current principal due on this note is 21,750.

On October 30, 2014, the Company executed a convertible promissory note for $18,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before August 3, 2015. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. Accrued interest on the note as of November 30, 2014 is $122.

On December 11, 2014, the Company executed a convertible promissory note for $18,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before August 3, 2015. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note.

On December 11, 2014, the John Neal note in the amount $24,355 plus accrued interest of $2,730 was assigned to Beaufort Capital Partners, LLC. Concurrent with this assignment, we entered into a replacement Convertible Promissory Note with Beaufort Capital Partners, LLC.

We will require significant additional financing in order to move forward effectively with the development of our current business plan. We intend to fund the development of our new business through debt and/or equity financing arrangements. We do not have any formal commitments or arrangements for the sales of stock or the advancement or loan of funds at this time. There can be no assurance that such additional financing will be available to us on acceptable terms, in amounts sufficient to fund our planned acquisitions and other activities, or at all. 

18

Going Concern

As of November 30, 2014, we had an accumulated deficit of $3,655,381 and a working capital deficit of $1,564,543. For the three months ended November 30, 2014, net cash used in operating activities was $73,125 and we received $35,000 from financing activities. This has raised substantial doubt about our ability to continue as a going concern.  Without realization of additional capital, it would be unlikely for us to continue as a going concern.

Our activities to date have been supported by equity and debt financing.  Management continues to seek funding from its shareholders and other qualified investors to pursue its business plan.

Off Balance Sheet Arrangements

As of November 30, 2014, there were no off balance sheet arrangements.

Critical Accounting Policies

In December 2001, the SEC requested that all registrants list their most “critical accounting polices” in the Management Discussion and Analysis. The SEC indicated that a “critical accounting policy” is one which is both important to the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Currently, we do not believe that any accounting policies fit this definition.

Recently Issued Accounting Pronouncements

We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this Item. 

Item 4. Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of November 30, 2013. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of November 30, 2014, our disclosure controls and procedures are not effective. There have been no changes in our internal controls over financial reporting during the period ended November 30, 2014.

Management determined that the material weaknesses that resulted in controls being ineffective are primarily due to lack of resources and number of employees. Material weaknesses exist in the segregation of duties required for effective controls and various reconciliation and control procedures not regularly performed due to the lack of staff and resources.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error.  Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

19

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A: Risk Factors

A smaller reporting company is not required to provide the information required by this Item.

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

On September 18, 2014, the Company issued 12,121,212 shares of common stock to Blackbridge Capital, LLC in conversion of total principal and interest of $20,000.

On September 24, 2014, the Company issued 5,000,000 shares of common stock to the Company’s former CEO, Bruce Knoblich in conversion of $19,250 of the amount due to him.

On November 6, 2014, the Company issued 15,480,000 shares of common stock to WHC Capital, LLC in conversion of principal of $5,418.

During the three months ended November 30, 2014, the Company issued a total of 42,830,672 shares of common stock to Asher Enterprises, Inc. in conversion of total principal and interest of $75,920.

During the three months ended November 30, 2014, the Company issued a total of 55,113,336 shares of common stock to JMJ Financial in conversion of total principal and interest of $38,912.

During the three months ended November 30, 2014, the Company issued a total of 23,240,311 shares of common stock to Black Mountain Equities, Inc. in conversion of total principal and interest of $23,800.

During the three months ended November 30, 2014, the Company issued a total of 58,597,904 shares of common stock to KBM Worldwide, Inc., in conversion of total principal and interest of $55,120. As a result of the conversion the Company recognized a loss on conversion of debt of $53,274.

During the three months ended November 30, 2014, the Company issued a total of 30,714,286 shares of common stock to Beaufort Capital Partners in conversion of total principal and interest of $10,750.

The above shares were issued in reliance upon exemptions from registration requirements pursuant to Section 4(2) of the Securities Act of 1933, as amended. 

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None

20

Item 6. Exhibits

Exhibit Number	Description
31.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1+	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Schema
101.CAL	XBRL Taxonomy Calculation Linkbase
101.DEF	XBRL Taxonomy Definition Linkbase
101.LAB	XBRL Taxonomy Label Linkbase
101.PRE	XBRL Taxonomy Presentation Linkbase

+In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed.

21

SIGNATURES

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

	Aja Cannafacturing, Inc.
Date:	January 20, 2015
	/s/ Kendall Smith
By:	Kendall Smith
Title:	Chief Executive Officer, Chief Financial Officer, President and Director

22

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Kendall Smith, certify that;

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended November 30, 2014 of Aja Cannafacturing, Inc.;

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;

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;

4. The registrant’s other certifying officer 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; and

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 an 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 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: January 20, 2015

/s/ Kendall Smith

By: Kendall Smith

Title: Chief Executive Officer, Chief Financial Officer, President and Director

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

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 Aja Cannafacturing, Inc. (the “Company”) on Form 10-Q for the quarter ended November 30, 2014 filed with the Securities and Exchange Commission (the “Report”), I, Kendall Smith, Chief Executive Officer and Chief 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:

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

2. The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.

By:	s/s Kendall Smith
Name:	Kendall Smith
Title:	Chief Executive Officer, Chief Financial Officer, President and Director
Date:	January 20, 2015

This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

XML

RELATED PARTY TRANSACTIONS (Details Textual) (USD $)	3 Months Ended
	Nov. 30, 2014
Related Party Transaction [Line Items]
Stock Issued During Period, Shares, Share-based Compensation, Gross	4,000,000
Stock Issued During Period, Value, Share-based Compensation, Gross	$ 23,000

XML

CONVERTIBLE NOTES PAYABLE (Details 1) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013	Aug. 31, 2014
Short-term Debt [Line Items]
Derivative Liability, Current	$ 926,163		$ 558,194
Derivative Liabilities Initial Valuation	753,992
Derivative Liabilities Revaluation	926,163
Change in fair value of Derivative	386,023	126,960
Asher [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			91,120
Derivative Liabilities Initial Valuation	0
Derivative Liabilities Revaluation	0
Change in fair value of Derivative	(91,120)
Beaufort Capital [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			0
Derivative Liabilities Initial Valuation	118,894
Derivative Liabilities Revaluation	88,397
Change in fair value of Derivative	(30,497)
Black Mountain [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			33,509
Derivative Liabilities Initial Valuation	0
Derivative Liabilities Revaluation	35,303
Change in fair value of Derivative	1,794
JMJ Financial One [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			19,877
Derivative Liabilities Initial Valuation	0
Derivative Liabilities Revaluation	0
Change in fair value of Derivative	(19,877)
JMJ Financial Two [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			60,776
Derivative Liabilities Initial Valuation	0
Derivative Liabilities Revaluation	53,630
Change in fair value of Derivative	(7,146)
JMJ Financial Three [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			63,221
Derivative Liabilities Initial Valuation	0
Derivative Liabilities Revaluation	86,144
Change in fair value of Derivative	22,923
KBM [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			0
Derivative Liabilities Initial Valuation	122,302
Derivative Liabilities Revaluation	84,667
Change in fair value of Derivative	(37,635)
Neal [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			20,506
Derivative Liabilities Initial Valuation	0
Derivative Liabilities Revaluation	36,025
Change in fair value of Derivative	15,519
Knoblich [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			269,185
Derivative Liabilities Initial Valuation	0
Derivative Liabilities Revaluation	188,690
Change in fair value of Derivative	(80,495)
Scott Plantinga One [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			0
Derivative Liabilities Initial Valuation	67,822
Derivative Liabilities Revaluation	66,922
Change in fair value of Derivative	(900)
Scott Plantinga Two [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			0
Derivative Liabilities Initial Valuation	200,451
Derivative Liabilities Revaluation	197,792
Change in fair value of Derivative	(2,659)
WHC Capital, LLC [Member]
Short-term Debt [Line Items]
Derivative Liability, Current			0
Derivative Liabilities Initial Valuation	244,523
Derivative Liabilities Revaluation	88,593
Change in fair value of Derivative	$ (155,930)

XML

NOTES PAYABLE (Notes Payable [Member])

3 Months Ended

Nov. 30, 2014

Notes Payable [Member]

Short-term Debt [Line Items]

Debt Disclosure [Text Block]

NOTE 4 – NOTES PAYABLE

On June 12, 2013, the Company executed a promissory note for $15,000. The loan was due August 12, 2013. The note does not bear interest but its principal balance includes a loan fee of $5,000. This loan has been extended with no specific terms of repayment.

As of November 30, 2014, the Company owed various shareholders $10,100 for advances made to cover certain operating costs. The loans accrue interest at 8% per annum and are due on demand.

XML

STOCK WARRANTS (Details 1) (USD $)	3 Months Ended
	Nov. 30, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Minimum	$ 0.10
Range of Exercise Prices, Maximum	$ 2.00
Warrant [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding	3,065,625
Weighted Average Remaining Contractual Life	5 years 8 months 12 days
Weighted Average Exercise Price	$ 0.03

XML

STOCK WARRANTS (Details) (Warrant [Member], USD $)	3 Months Ended
	Nov. 30, 2014
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Shares available to purchase with warrants	3,065,625
Issued, Shares available to purchase with warrants	0
Exercised, Shares available to purchase with warrants	0
Forfeited, Shares available to purchase with warrants	0
Expired, Shares available to purchase with warrants	0
Outstanding, Shares available to purchase with warrants	3,065,625
Exercisable, Shares available to purchase with warrants	3,065,625
Outstanding, Weighted Average Price	$ 0.03
Issued, Weighted Average Price	$ 0
Exercised, Weighted Average Price	$ 0
Forfeited, Weighted Average Price	$ 0
Expired, Weighted Average Price	$ 0
Outstanding, Weighted Average Price	$ 0.03
Exercisable, Weighted Average Price	$ 0.03
Outstanding, Weighted Average Fair Value	$ 0.03
Issued, Weighted Average Fair Value	$ 0
Exercised, Weighted Average Fair Value	$ 0
Forfeited, Weighted Average Fair Value	$ 0
Expired, Weighted Average Fair Value	$ 0
Outstanding, Weighted Average Fair Value	$ 0.03
Exercisable, Weighted Average Fair Value	$ 0.03

XML

STOCK WARRANTS (Details Textual) (Warrant [Member], USD $)	3 Months Ended
	Nov. 30, 2014
Promissory Note Dated February 27, 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	50,000
Warrants and Rights Outstanding	$ 2,044
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price	$ 0.20
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	64.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	3 years
Promissory Note Dated November 30, 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	15,625
Warrants and Rights Outstanding	16,455
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price	$ 2.00
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	63.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	85.90%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years
Promissory Note Dated February 4, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1,000,000
Warrants and Rights Outstanding	11,769
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price	$ 0.02
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.46%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	197.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years
Warrant Agreement Dated February 27, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	2,000,000
Warrants and Rights Outstanding	$ 44,169
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price	$ 0.01
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.11%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	246.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	7 years

XML

COMMON STOCK TRANSACTIONS (Details Textual) (USD $)	3 Months Ended		1 Months Ended		0 Months Ended
	Nov. 30, 2014	Nov. 30, 2013	Sep. 18, 2014	Sep. 24, 2014	Nov. 06, 2014	Oct. 21, 2014	Aug. 31, 2014
Class of Stock [Line Items]
Common Stock, Shares Authorized	3,000,000,000					3,000,000,000	3,000,000,000
Debt Conversion, Converted Instrument, Amount	$ 320,020	$ 0
Blackbridge Capital, LLC [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Shares Issued			12,121,212
Debt Conversion, Converted Instrument, Amount			20,000
Bruce Knoblich [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Shares Issued				5,000,000
Debt Conversion, Converted Instrument, Amount				19,250
WHC Capital, LLC [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Shares Issued					15,480,000
Debt Conversion, Converted Instrument, Amount					5,418
Asher Enterprises, Inc. [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	42,830,672
Debt Conversion, Converted Instrument, Amount	75,920
JMJ [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	55,113,336
Debt Conversion, Converted Instrument, Amount	38,912
Black Mountain Equities, Inc [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	23,240,311
Debt Conversion, Converted Instrument, Amount	23,800
KBM [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	58,597,904
Debt Conversion, Converted Instrument, Amount	55,120
Gains (Losses) on Recourse Debt	53,274
Beaufort Capital [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	30,714,286
Debt Conversion, Converted Instrument, Amount	$ 10,750

XML

CONVERTIBLE NOTES PAYABLE (Convertible Notes Payable [Member])

3 Months Ended

Nov. 30, 2014

Convertible Notes Payable [Member]

Short-term Debt [Line Items]

Debt Disclosure [Text Block]

NOTE 3 – CONVERTIBLE NOTES PAYABLE

On December 3, 2012, the Company executed a convertible promissory note with Steven J. Caspi (“Caspi”) for $125,000. The note bears interest at 5% and was due on or before November 30, 2013. Pursuant to the terms of the note, it is convertible into shares of the Company’s common stock at the option of the holder at any time in whole or in part at a conversion rate of $1.25. On the commitment date, management evaluated the conversion feature with respect to the benefit of the holder and determined the value of the conversion feature to be $60,000. This amount has been recorded as a discount against the outstanding balance of the note. The discount is being amortized to interest expense over the life of the debt using the effective interest method. The note also issued one warrant giving the holder the right to purchase 15,625 shares of common stock at a price of $2.00 per share for a period of five years. As required by ASC 470-20 the Company recorded a debt discount to additional paid in capital in the amount of $16,455 based on the discount to market available at the time of issuance. The discount has been fully amortized to interest expense. On March 10, 2014, the Company executed a forbearance agreement with the lender modifying the terms of the original agreement. Per the new agreement the conversion price was changed to $0.005 per share and the due date was extended to November 30, 2014. As a result of the new conversion price the Company recorded an additional debt discount of $48,539. The additional discount will be amortized over the remaining term of the note. On March 21, 2014, $25,000 of the note was converted into 5,000,000 shares of common stock. The note is currently past due, shown net of a debt discount of $0 and has accrued interest of $10,422.

On June 15, 2013, the Company executed a promissory note for $15,000 with a shareholder. The note bears interest at 10% and was due within ninety days. On October 15, 2014, the original $15,000, accrued interest of $600 and an additional cash loan of $8,755 was rolled into a new convertible promissory note for $24,355. The new note bears interest at 10% per annum and is convertible at a 49% discount of the VWAP occurring during the ten days preceding the conversion date. The Company recorded a debt discount in the amount of $24,355 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $35,664 based on the Black Scholes Merton pricing model using the following attributes: .68% risk free rate, 258% volatility and a three year term to maturity. As of November 30, 2014, $9,141 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $36,025 resulting in a loss on the change in fair value of the derivative. The note is shown net of a debt discount of $15,214 at November 30, 2014 as accrued interest of $2,704.

On June 19, 2013, the Company executed a Convertible Promissory Note (the “note”) with JMJ Financial (“JMJ”). The nominal principal sum of the Note is $300,000, with an original issue discount of ten percent (10%). The note matures one year from the effective date of each payment, which is made at the sole discretion of JMJ. The Note is convertible into common stock in whole or in part at a variable conversion price equal to a 40% discount to the lowest trade price in the twenty five trading days prior to conversion.

On September 30, 2013, the Company received its third payment on the original JMJ Financial convertible promissory note dated June 19, 2013 of $27,500, including a $2,500 original issue discount. The Company recorded a debt discount in the amount of $27,500 (payment plus 10% original discount) in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $70,390 based on the Black Scholes Merton pricing model using the following attributes: .10% risk free rate, 261% volatility and a one year term to maturity. On June 5, 2014, $20,250 of principal was converted into 4,500,000 shares of common stock. In September 2014, the remaining balance on the note, including all interest, of $20,772 was converted into 10,883,336 shares of common stock. Due to the conversion the remaining debt discount of $2,184 was expensed and a gain on derivative of $19,877 recognized.

On February 27, 2014, the Company executed a convertible promissory note for $73,000 with Asher Enterprises, Inc. The note bears interest at 8% per annum and is due on or before December 3, 2014. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. The Company recorded a debt discount in the amount of $73,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $118,582 based on the Black Scholes Merton pricing model. During the three months ended November 30, 2014, all principal and interest of $73,000 and $2,920, respectively was converted into 42,830,672 shares of common stock. Due to the conversion the remaining debt discount of $70,080 was expensed and a gain on derivative of $91,120 recognized.

On March 5, 2014, the Company executed a Convertible Promissory Note (the “note”) with Black Mountain Equities, Inc. (“Black Mountain”). The nominal principal sum of the Note is $250,000, with an original issue discount of ten percent (10%). The note matures one year from the effective date of each payment, which is made at the sole discretion of Black Mountain. The Note is convertible into common stock in whole or in part at a variable conversion price equal to the lessor of $0.025 or a 60% discount to the lowest trade price in the twenty five trading days prior to conversion. The Company received its first payment towards the loan of $25,000. The Company recorded a debt discount in the amount of $27,500 (payment plus 10% original discount) in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $110,515 based on the Black Scholes Merton pricing model using the following attributes: .13% risk free rate, 193% volatility and a one year term to maturity. During the three months ended November 30, 2014, $23,800 of principal was converted into 26,240,311 shares of common stock. In addition, due to not fulfilling a conversion request within the required time frame the Company incurred a $16,000 penalty. As of November 30, 2014, $20,343 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $35,303 resulting in a loss on the change in fair value of the derivative. The note is shown net of a debt discount of $7,157 at November 30, 2014 and has accrued interest of $2,750.

On March 19, 2014, the Company executed a convertible promissory note for $53,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before December 26, 2014. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. During the three months ended November 30, 2014, all principal and interest of 53,000 and $2,120, respectively was converted into 58,597,904 shares of common stock. Due to the conversion the Company recognized a loss on conversion of debt of $53,274.

On April 17, 2014, the Company received its fourth payment on the original JMJ Financial convertible promissory note dated June 19, 2013 of $44,000, including a $4,000 original issue discount. The Company recorded a debt discount in the amount of $44,000 (payment plus 10% original discount) in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $104,127 based on the Black Scholes Merton pricing model using the following attributes: .11% risk free rate, 214% volatility and a one year term to maturity. During the three months ended November 30, 2014, $18,141 of principal was converted into 44,230,000 shares of common stock. As of November 30, 2014; $28,888 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $53,630 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $15,112 at November 30, 2014.

On May 20, 2014, the Company executed a convertible promissory note for $53,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before February 23, 2015. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. The Company recorded a debt discount in the amount of $53,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $122,302 and derivative expense of $69,302 based on the Black Scholes Merton pricing model. As of November 30, 2014, $7,729 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $84,667 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $45,271 at November 30, 2014 and has accrued interest of $2,485.

On May 31, 2013, the Company’s former CEO, Bruce Knoblich and the Company executed a promissory note for $289,998, $2,150 of which has been repaid. The note bears interest at 5% and was due November 30, 2013. On July 22, 2014, the principal and accrued interest were rolled into a new convertible promissory note for $304,973. The new note bears interest at 8% per annum and is convertible at a 49% discount of the average trading price during the ten days preceding the conversion date. The Company recorded a debt discount in the amount of $274,973 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $395,341 based on the Black Scholes Merton pricing model using the following attributes: .11% risk free rate, 230% volatility and a one year term to maturity. On July 22, 2014, $30,000 of the note was converted into 6,000,000 shares of common stock. On September 24, 2014 $19,250 of the note was converted into 5,000,000 shares of common stock. On November 6, 2014 an additional $20,000 was loaned to the Company. In addition, during the three months ended November 30, 2014, Mr. Knoblich made the following debt assignments: $20,000 to Blackbridge Capital, LLC; $50,000 to WHC Capital, LLC; and $50,000 to Beaufort Capital Partners, LLC. As of November 30, 2014, $139,249 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $188,690 resulting in a gain on the change in fair value of the derivative. The balance of the note is $155,723 and is shown net of a debt discount of $105,590 and has accrued interest of $7,029.

On June 24, 2014, the Company received its fifth payment on the original JMJ Financial convertible promissory note dated June 19, 2013 of $44,000, including a $4,000 original issue discount. The Company recorded a debt discount in the amount of $44,000 (payment plus 10% original discount) in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $66,010 based on the Black Scholes Merton pricing model using the following attributes: .11% risk free rate, 214% volatility and a one year term to maturity. As of November 30, 2014, $22,060 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $86,144 resulting in a loss on the change in fair value of the derivative. The note is shown net of a debt discount of $21,940 at November 30, 2014.

On July 11, 2014, the Company executed a convertible promissory note for $31,500 with LG Capital Funding, LLC. The note bears interest at 8% per annum and is due on or before July 11, 2015. The note is convertible at a 45% discount any time during the period beginning 180 days following the date of the note. Accrued interest on the note as of November 30, 2014 is $987.

On August 18, 2014, the Company executed a convertible promissory note for $53,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before May 20, 2015. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. Accrued interest on the note as of November 30, 2014 is $1,104.

On September 17, 2014, the Company executed a convertible promissory note for $20,000 with Blackbridge Capital, LLC. The note bears interest at 5% per annum and is due on or before March 17, 2015. The note is convertible at a 50% discount any time. On September 18, 2014, the note was converted into 12,121,212 shares of common stock. Due to the conversion the Company recognized a loss on conversion of debt of $17,576.

On September 24, 2014, the Company executed a convertible promissory note for $50,000 with WHC Capital, LLC. The note bears interest at 12% per annum and is due on or before September 24, 2015. The note is convertible at a 49% discount at any time. The Company recorded a debt discount in the amount of $50,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $244,523 and derivative expense of $194,523 based on the Black Scholes Merton pricing model. On November 26, 2014, $5,148 of the principal was converted into 15,480,000 shares of common stock. As of November 30, 2014, $9,234 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $88,593 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $40,766 at November 30, 2014 and has accrued interest of $1,061.

On October 24, 2014, the Company executed a convertible promissory note for $50,000 with Beaufort Capital Partners, LLC. The note is non-interest bearing and is due on or before October 24, 2015. The note is convertible at a 50% discount at any time. The Company recorded a debt discount in the amount of $50,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $118,894 and derivative expense of $68,894 based on the Black Scholes Merton pricing model. During November 2014, $10,750 of the principal was converted into 30,714,286 shares of common stock. As of November 30, 2014, $13,103 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $88,397 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $36,897.

On October 30, 2014, the Company executed a convertible promissory note for $18,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before August 3, 2015. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note. Accrued interest on the note as of November 30, 2014 is $122.

Pursuant to the terms of the Resignation and Departure Package of Scott Plantinga, the former CEO, the Company executed a convertible promissory note on October 20, 2014 for $45,000 with Mr. Plantinga. The note bears interest at 10% per annum and is due in the following installments: $25,000 on November 10, 2014 and $20,000 due February 10, 2015. Failure to pay on the due date will result in a one-time $20,000 penalty. The note is convertible at a 50% discount at any time. The Company recorded a debt discount in the amount of $45,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $67,822 and derivative expense of $22,822 based on the Black Scholes Merton pricing model. The Company failed to make the required $25,000 payment on November 10^th and therefore incurred the $20,000 penalty charge. As of November 30, 2014, $5,055 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $66,922 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $39,945 at November 30, 2014 and has accrued interest of $137.

Pursuant to the terms of the Resignation and Departure Package of Scott Plantinga, the former CEO, the Company executed a convertible promissory note on October 20, 2014 for $133,000 with Mr. Plantinga. The note consists of all accrued salary and bonus and additional severance compensation, bears interest at 12% per annum and is due October 20, 2015. The note is convertible at a 50% discount at any time. The Company recorded a debt discount in the amount of $133,000 in connection with the initial valuation of the beneficial conversion feature of the note to be amortized utilizing the interest method of accretion over the term of the note. Further, the Company recognized an initial derivative liability of $200,451 and derivative expense of $67,451 based on the Black Scholes Merton pricing model. As of November 30, 2014, $14,940 of the debt discount has been amortized to interest expense. In addition, the Company fair valued the derivative at $197,792 resulting in a gain on the change in fair value of the derivative. The note is shown net of a debt discount of $118,060 at November 30, 2014 and has accrued interest of $1,793.

A summary of the status of the Company’s debt discounts, derivative liabilities and original issue discounts, and changes during the periods is presented below:

Debt Discount	August 31, 2014		Additions		Amortization		November 30, 2014
Asher – 2/27/14		70,080		-		(70,080)		-
Beaufort Capital		-		50,000		(13,103)		36,897
Black Mountain – 3/5/14		14,013		-		(6,856)		7,157
Caspi		10,094		-		(10,094)		-
JMJ – 9/30/13		2,184		-		(2,184)		-
JMJ – 4/17/14		27,606		-		(12,494)		15,112
JMJ – 6/24/14		32,910		-		(10,970)		21,940
KBM – 5/20/14		-		53,000		(7,729)		45,271
Knoblich		244,839		-		(139,249)		105,590
Neal		17,238		-		(2,024)		15,214
Scott Plantinga		-		133,000		(14,940)		118,060
Scott Plantinga		-		45,000		(5,055)		39,945
WHC Capital		-		50,000		(9,234)		40,766
	$	418,964	$	331,000	$	(304,012)	$	445,952

Derivative Liabilities	August 31, 2014		Initial Valuation		Revaluation on 11/30/14		Change in fair value of Derivative
Asher – 2/27/14		91,120		-		-		(91,120)
Beaufort Capital		-		118,894		88,397		(30,497)
Black Mountain – 3/5/14		33,509		-		35,303		1,794
JMJ – 9/30/13		19,877		-		-		(19,877)
JMJ - 4/17/14		60,776		-		53,630		(7,146)
JMJ – 6/24/14		63,221		-		86,144		22,923
KBM – 5/20/14		-		122,302		84,667		(37,635)
Knoblich		269,185		-		188,690		(80,495)
Neal		20,506		-		36,025		15,519
Scott Plantinga		-		67,822		66,922		(900)
Scott Plantinga		-		200,451		197,792		(2,659)
WHC Capital		-		244,523		88,593		(155,930)
	$	558,194	$	753,992	$	926,163	$	(386,023)

Original Issue Discount	August 31, 2014		Additions		Amortization		November 30, 2014
Black Mountain – 3/5/14	$	1,405	$	-	$	(624)	$	781
JMJ – 9/30/13		185		-		(185)		-
JMJ – 4/17/14		2,499		-		(986)		1,513
JMJ – 6/4/14		3,255		-		(986)		2,269
	$	7,344	$		$	(2,781)	$	4,563

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PREFERRED STOCK (Details Textual)	3 Months Ended
	Nov. 30, 2014	Aug. 31, 2014	Oct. 17, 2014
Class of Stock [Line Items]
Convertible Preferred Stock, Terms of Conversion	one share of common stock for each preferred share held
Preferred Stock, Redemption Terms	In any liquidation, holders of our Class A Convertible Preferred Stock will participate pro-rata with the holders of our common stock
Preferred Stock, Shares Issued	1,000,000	0
Preferred Stock, Dividend Preference or Restrictions	no dividend rights
Convertible Preferred Stock [Member] | Chief Executive Officer [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Issued			1,000,000

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CONSOLIDATED BALANCE SHEETS (USD $)	Nov. 30, 2014	Aug. 31, 2014
Current Assets:
Cash	$ 5,868	$ 43,993
Accounts receivable, net of allowance of $8,753 and $8,753, respectively	8,752	8,752
Prepaid expenses and other current assets	9,882	88,871
Total Current Assets	24,502	141,616
Total Assets	24,502	141,616
Current Liabilities:
Accounts payable	177,866	154,178
Derivative liability	926,163	558,194
Accrued compensation	5,695	52,686
Accrued expenses	44,080	43,483
Accrued interest	33,957	26,051
Convertible notes payable, net of discount of $445,952 and $174,125, respectively	376,184	340,813
Notes payable - related party net of discount of $0 and $244,839, respectively	0	30,135
Other notes payable	25,100	52,455
Total Current Liabilities	1,589,045	1,257,995
Total Liabilities	1,589,045	1,257,995
STOCKHOLDERS’ DEFICIT:
Preferred stock, par value $.001, 10,000,000 authorized, 1,000,000 and 0 shares issued and outstanding, respectively	1,000	0
Common stock, $.001 par value, 3,000,000,000 common shares authorized, 434,932,056 and 127,184,335 shares issued and outstanding, respectively	434,932	127,184
Additional paid in capital	1,654,906	1,555,834
Accumulated deficit	(3,655,381)	(2,799,397)
Total Stockholders' Deficit	(1,564,543)	(1,116,379)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 24,502	$ 141,616

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Nov. 30, 2014

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Aja Cannafacturing, Inc. (“Aja” or the “Company”) is focusing on the breeding, cultivation, and processing of raw industrial Cannabis materials for industry specific applications such as building materials (Hempcrete), automotive (biofuels), plastics (healthcare) and textiles (fabrics).

The Company was formed as Step Out, Inc., a Nevada corporation on May 2, 2011. On July 18, 2011 Step Out issued 10,000,000 common shares to acquire 100% membership interest in SOI Nevada, LLC, a Nevada limited liability corporation from the sole shareholder. The membership interest was acquired at book value from the shareholder. SOI Nevada, LLC became a wholly-owned subsidiary of Step Out, Inc.

On September 19, 2012, the Company entered into an Agreement of Conveyance, Transfer and Assignment of Membership Interests and Assumption of Obligations (the “Agreement”) with our sole officer and director, Sterling Hamilton. Pursuant to the Agreement, the Company transferred all membership interests in our operating subsidiary, SOI Nevada, LLC, to Mr. Hamilton. In exchange for this assignment of membership interests, Mr. Hamilton agreed to assume and cancel all liabilities relating to our former business of developing a chain of flotation tank therapy spas. In addition, Mr. Hamilton agreed to release all liability under a promissory note due and owing to him in the amount of $2,000.

As a result of the Agreement, the Company is no longer pursuing its former business plan. Under the direction of our newly appointed officers and directors, as set forth below, we intend to develop a business focused on the design, development, manufacturing and distribution of renewable-energy based portable and mobile electrical generators and power stations under our own brand name, IDS Solar TechnologiesÔ.

Effective October 12, 2012, the Board of Directors approved a merger with our wholly-owned subsidiary, IDS Acquisition, Inc., pursuant to NRS 92A.180. IDS Acquisition was incorporated in the state of Nevada on September 25, 2012. As part of the merger with our wholly-owned subsidiary, our board authorized a change in the name of the company to “IDS Solar” Technologies, Inc.”

Effective February 7, 2013, the board of directors approved a twelve for one forward split of the Company’s common stock. All shares throughout these financial statement and Form 10-Q have been retroactively restated to reflect the forward split.

Effective May 29, 2013, the board of directors authorized a change in the name of the company to “IDS Industries, Inc.”

On February 6, 2014, the board of directors approved the launch of Propel Management Group, Inc. (PMG) a new wholly owned subsidiary. The core competency of this consulting service includes developing and implementing Program Management in product development, service industry, distribution and logistics. The addition of PMG has already proven to translate in-house core competencies in to additional revenue stream opportunities for IDS Industries.

On March 10, 2014, the board of directors approved the launch of Charge! Energy Storage, Inc. (Charge!) a new wholly owned subsidiary.

Effective August 7, 2014, the board of directors authorized a change in the name of the company to “Aja Cannafacturing, Inc.” The new name reflects the direction and focus of the Company more accurately.

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"). In the opinion of management, all adjustments necessary in order for the financial statements to be not misleading have been reflected herein. The interim results for the three months ended November 30, 2014 are not necessarily indicative of the results for the full fiscal year and should be read in conjunction with the August 31, 2014 Form 10-K. The Company has adopted an August 31 year end.

Principles of Consolidation

The consolidated financial statements include the accounts of Aja Cannafacturing, Inc. and its wholly-owned subsidiary Propel Management Group, Inc. and Charge! Energy Storage, Inc. All significant intercompany accounts and transactions have been eliminated.

Cash and Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents. There were no cash equivalents as of November 30, 2014 and August 31, 2014.

Basic Loss per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Potentially dilutive shares were excluded from the computation as of November 30, 2014 and 2013 since they would have been anti-dilutive.

Concentrations of Credit Risk

The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash.

Allowance for Doubtful Accounts

We maintain an allowance for doubtful accounts for estimated losses that result from the failure or inability of our customers to make required payments. When determining the allowance, we consider the probability of recoverability of accounts receivable based on past experience. Accounts receivable may also be fully reserved for when specific collection issues are known to exist. The analysis of receivables is performed quarterly, and the allowances are adjusted accordingly.

Fair Value of Financial Instruments

For certain of the Company’s non-derivative financial instruments, including cash and cash equivalents, receivables, prepaids, accounts payable, accrued liabilities, and notes payable, the carrying amount approximates fair value due to the short-term maturities of these instruments. The estimated fair value of long-term debt is based primarily on borrowing rates currently available to the Company for similar debt issues. The fair value approximates the carrying value of long-term debt.

ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. 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 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. Observable inputs such as quoted prices in active markets;

· Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

· Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The following presents the gross value of assets and liabilities that were measured and recognized at fair value, as of November 30, 2014 and August 31, 2014.

Derivative liability	Level I		Level II		Level III		Total
November 30, 2014	$	-	$	926,163	$	-	$	926,163
August 31, 2014	$	-	$	558,194	$	-	$	558,194

Stock-Based Compensation

The Company accounts for equity based transactions with non-employees under the provisions of ASC Topic No. 505-50, “Equity-Based Payments to Non-Employees” (“Topic No. 505-50”). Topic No. 505-50 establishes that equity-based payment transactions with non-employees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The fair value of common stock issued for payments to non-employees is measured at the market price on the date of grant. The fair value of equity instruments, other than common stock, is estimated using the Black-Scholes option valuation model. In general, the Company recognizes the fair value of the equity instruments issued as deferred stock compensation and amortizes the cost over the term of the contract. During the three months ended November 30, 2014, the Company issued 58,000,000 shares of common stock valued at $63,800 to non-employees.

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation - Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.  The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. During the three months ended November 30, 2014, the Company issued 4,000,000 shares of common stock valued at $23,000 to its employees.

Income Taxes

 Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carry-forwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence; it is more likely than not such benefits will be realized. The Company’s deferred tax assets were fully reserved at November 30, 2014 and 2013.

The Company accounts for its income taxes using the Income Tax topic of the FASB ASC 740, which requires the recognition of deferred tax liabilities and assets for expected future tax consequences of events that have been included in the financial statements or tax returns.  Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

Revenue Recognition

Sales of products or services and related costs of products or services sold are recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. These terms are typically met upon the prepayment or invoicing, and shipment of products.

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect.  These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued, that might have a material impact on its financial position or results of operations.

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SUBSEQUENT EVENTS (Details Textual) (USD $)	0 Months Ended	3 Months Ended		1 Months Ended	0 Months Ended
	Jun. 12, 2013	Nov. 30, 2014	Nov. 30, 2013	Sep. 18, 2014	Nov. 06, 2014	Dec. 11, 2014	Aug. 31, 2014
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		$ 320,020	$ 0
Debt Instrument, Face Amount	15,000
Debt Instrument, Interest Rate, Effective Percentage		8.00%
Debt Instrument, Maturity Date	Aug. 12, 2013
Interest Payable, Current		33,957					26,051
Beaufort Capital [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		10,750
Debt Conversion, Converted Instrument, Shares Issued		30,714,286
Beaufort Capital [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		17,680
Debt Conversion, Converted Instrument, Shares Issued		63,266,667
Debt Instrument, Face Amount						24,355
Interest Payable, Current						2,730
JMJ [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		38,912
Debt Conversion, Converted Instrument, Shares Issued		55,113,336
JMJ [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		19,680
Debt Conversion, Converted Instrument, Shares Issued		82,600,000
Black Mountain Equities, Inc [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		23,800
Debt Conversion, Converted Instrument, Shares Issued		23,240,311
Black Mountain Equities, Inc [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		12,850
Debt Conversion, Converted Instrument, Shares Issued		50,428,571
Blackbridge Capital, LLC [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount				20,000
Debt Conversion, Converted Instrument, Shares Issued				12,121,212
Blackbridge Capital, LLC [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		20,000
Debt Conversion, Converted Instrument, Shares Issued		74,500,000
Treasury Stock, Shares		12,121,212
WHC Capital, LLC [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount					5,418
Debt Conversion, Converted Instrument, Shares Issued					15,480,000
WHC Capital, LLC [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		15,273
Debt Conversion, Converted Instrument, Shares Issued		61,905,500
KBM [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		55,120
Debt Conversion, Converted Instrument, Shares Issued		58,597,904
KBM [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		45,030
Debt Conversion, Converted Instrument, Shares Issued		188,072,902
Debt Instrument, Issuance Date						Dec. 11, 2014
Debt Instrument, Face Amount						$ 18,000
Debt Instrument, Interest Rate, Effective Percentage						8.00%
Debt Instrument, Maturity Date						Aug. 03, 2015
Debt Instrument, Convertible, Terms of Conversion Feature						The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)	3 Months Ended		12 Months Ended	1 Months Ended
	Nov. 30, 2014	Nov. 30, 2013	Aug. 31, 2013	Jul. 18, 2011
Significant Accounting Policies [Line Items]
Entity Incorporation, Date of Incorporation	May 02, 2011
Debt Conversion, Converted Instrument, Amount	$ 320,020	$ 0
Stockholders' Equity, Reverse Stock Split			twelve for one
SOI Nevada [Member]
Significant Accounting Policies [Line Items]
Stock Issued During Period, Value, Acquisitions				10,000,000
Noncontrolling Interest, Ownership Percentage by Parent				100.00%
Agreement 1 [Member]
Significant Accounting Policies [Line Items]
Date Of Agreement	Sep. 19, 2012
Debt Conversion, Converted Instrument, Amount	2,000
Employee [Member]
Significant Accounting Policies [Line Items]
Stock Issued During Period, Value, Issued for Services	23,000
Stock Issued During Period, Shares, Issued for Services	4,000,000
Non Employee [Member]
Significant Accounting Policies [Line Items]
Stock Issued During Period, Value, Issued for Services	$ 63,800
Stock Issued During Period, Shares, Issued for Services	58,000,000

XML

CONVERTIBLE NOTES PAYABLE (Details) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013	Aug. 31, 2014
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	$ 445,952		$ 418,964
Debt Instrument Discount Additions	331,000
Amortization of Debt Discount (Premium)	304,012	81,482
Original Issue [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	4,563		7,344
Debt Instrument Discount Additions
Amortization of Debt Discount (Premium)	(2,781)
Asher [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	0		70,080
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(70,080)
Beaufort Capital [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	36,897		0
Debt Instrument Discount Additions	50,000
Amortization of Debt Discount (Premium)	(13,103)
Black Mountain [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	7,157		14,013
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(6,856)
Black Mountain [Member] | Original Issue [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	781		1,405
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(624)
Caspi [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	0		10,094
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(10,094)
JMJ Financial One [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	0		2,184
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(2,184)
JMJ Financial One [Member] | Original Issue [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	0		185
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(185)
JMJ Financial Two [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	15,112		27,606
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(12,494)
JMJ Financial Two [Member] | Original Issue [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	1,513		2,499
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(986)
JMJ Financial Three [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	21,940		32,910
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(10,970)
JMJ Financial Three [Member] | Original Issue [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	2,269		3,255
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(986)
KBM [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	45,271		0
Debt Instrument Discount Additions	53,000
Amortization of Debt Discount (Premium)	(7,729)
Knoblich [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	105,590		244,839
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(139,249)
Neal [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	15,214		17,238
Debt Instrument Discount Additions	0
Amortization of Debt Discount (Premium)	(2,024)
Scott Plantinga One [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	118,060		0
Debt Instrument Discount Additions	133,000
Amortization of Debt Discount (Premium)	(14,940)
Scott Plantinga Two [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	39,945		0
Debt Instrument Discount Additions	45,000
Amortization of Debt Discount (Premium)	(5,055)
WHC Capital, LLC [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount (Premium), Net	40,766		0
Debt Instrument Discount Additions	50,000
Amortization of Debt Discount (Premium)	$ (9,234)

XML

PREPAIDS AND OTHER CURRENT ASSETS

3 Months Ended

Nov. 30, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaids and Other Current Assets [Text Block]

NOTE 2 – PREPAIDS AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following at:

	November 30, 2014		August 31, 2014
Prepaid consulting	$	-	$	75,955
Other assets		5,319		5,319
Unamortized original issue discount		4,563		7,344
Deferred financing costs		-		253
	$	9,882	$	88,871

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Nov. 30, 2014	Aug. 31, 2014
Allowance for Doubtful Accounts Receivable, Current	$ 8,753	$ 8,753
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	1,000,000	0
Preferred Stock, Shares Outstanding	1,000,000	0
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	3,000,000,000	3,000,000,000
Common Stock, Shares, Issued	434,932,056	127,184,335
Common Stock, Shares, Outstanding	434,932,056	127,184,335
Convertible Notes Payable [Member]
Debt Instrument, Unamortized Discount	445,952	174,125
Notes Payable, Related Party [Member]
Debt Instrument, Unamortized Discount	$ 0	$ 244,839

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Nov. 30, 2014

Accounting Policies [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following presents the gross value of assets and liabilities that were measured and recognized at fair value, as of November 30, 2014 and August 31, 2014.

Derivative liability	Level I		Level II		Level III		Total
November 30, 2014	$	-	$	926,163	$	-	$	926,163
August 31, 2014	$	-	$	558,194	$	-	$	558,194

XML

Document And Entity Information	3 Months Ended
	Nov. 30, 2014	Jan. 12, 2014
Document Information [Line Items]
Entity Registrant Name	Aja Cannafacturing, Inc.
Entity Central Index Key	0001533455
Current Fiscal Year End Date	--08-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	AJAC
Entity Common Stock, Shares Outstanding		923,984,484
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 2014
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

XML

PREPAIDS AND OTHER CURRENT ASSETS (Tables)

3 Months Ended

Nov. 30, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

Prepaid expenses and other current assets consisted of the following at:

	November 30, 2014		August 31, 2014
Prepaid consulting	$	-	$	75,955
Other assets		5,319		5,319
Unamortized original issue discount		4,563		7,344
Deferred financing costs		-		253
	$	9,882	$	88,871

XML

STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Revenue	$ 0	$ 0
Operating expenses:
Professional fees	35,615	25,494
Stock based compensation	163,755	0
Salaries and wages	8,419	85,733
Marketing and advertising	9,150	23,850
General and administrative	175,488	105,018
Total operating expenses	392,427	240,095
Loss from operations	(392,427)	(240,095)
Other income and (expense):
Amortization of debt discount	(304,012)	(81,482)
Derivative expense	(422,992)	0
Gain (loss) on derivative liability	386,023	126,960
Loss on debt conversion	(70,849)	0
Penalty expense	(36,000)	0
Interest expense	(15,727)	(11,807)
Interest income	0	2,807
Total other expense	(463,557)	36,478
Loss before provision for income taxes	(855,984)	(203,617)
Provision for income taxes	0	0
Net Loss	$ (855,984)	$ (203,617)
Loss per share:
Loss per share Basic and diluted (in dollars per share)	$ 0.00	$ (0.01)
Weighted average shares outstanding: basic and diluted (in shares)	273,869,821	34,313,114

XML

PREFERRED STOCK

3 Months Ended

Nov. 30, 2014

Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]

Preferred Stock [Text Block]

NOTE 7 – PREFERRED STOCK

On October 17, 2014, our board of directors approved a Certificate of Designation for Class A Convertible Preferred Stock. This newly designation class of preferred stock consists of one million (1,000,000) shares. Class A Convertible Preferred Stock votes together with our common stock at a rate of three thousand (3,000) votes for each preferred share held. In addition, Class A Convertible Preferred Stock is convertible to shares of our common stock, at the option of the holder, at a rate of one share of common stock for each preferred share held. In any liquidation, holders of our Class A Convertible Preferred Stock will participate pro-rata with the holders of our common stock. Shares of Class A Convertible Preferred Stock have no dividend rights.

On October 17, 2014, our board of directors approved an Executive Employment Agreement (the “Agreement”) with Kendall Smith under which Mr. Smith was retained to serve as the new President. Under the Agreement, Mr. Smith will serve as the President and CEO for an initial term ending on August 31, 2015, with an automatic renewal for an additional year unless the Agreement is terminated by advance notice. As a signing bonus under the Agreement, Mr. Smith was issued 1,000,000 shares of our newly-designated Class A Convertible Preferred Stock. As a result of the issuance 1,000,000 shares of Class A Convertible Preferred Stock to Kendall Smith, as discussed above, Mr. Smith is deemed to have acquired control of the company on October 17, 2014.

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COMMON STOCK TRANSACTIONS

3 Months Ended

Nov. 30, 2014

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 6 –COMMON STOCK TRANSACTIONS

On October 21, 2014, the Company’s Board of Directors approved a resolution to amend its Articles of Incorporation to increase the aggregate number of common shares that it may issue to three billion (3,000,000,000) shares.

On September 18, 2014, the Company issued 12,121,212 shares of common stock to Blackbridge Capital, LLC in conversion of total principal and interest of $20,000 (see Note 3).

On September 24, 2014, the Company issued 5,000,000 shares of common stock to the Company’s former CEO, Bruce Knoblich in conversion of $19,250 of the amount due to him.

On November 6, 2014, the Company issued 15,480,000 shares of common stock to WHC Capital, LLC in conversion of principal of $5,418 (see Note 3).

During the three months ended November 30, 2014, the Company issued a total of 42,830,672 shares of common stock to Asher Enterprises, Inc. in conversion of total principal and interest of $75,920 (see Note 3).

During the three months ended November 30, 2014, the Company issued a total of 55,113,336 shares of common stock to JMJ Financial in conversion of total principal and interest of $38,912 (see Note 3).

During the three months ended November 30, 2014, the Company issued a total of 23,240,311 shares of common stock to Black Mountain Equities, Inc. in conversion of total principal and interest of $23,800 (see Note 3).

During the three months ended November 30, 2014, the Company issued a total of 58,597,904 shares of common stock to KBM Worldwide, Inc., in conversion of total principal and interest of $55,120. As a result of the conversion the Company recognized a loss on conversion of debt of $53,274 (see Note 3).

During the three months ended November 30, 2014, the Company issued a total of 30,714,286 shares of common stock to Beaufort Capital Partners in conversion of total principal and interest of $10,750 (see Note 3).

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PREPAIDS AND OTHER CURRENT ASSETS (Details) (USD $)	Nov. 30, 2014	Aug. 31, 2014
Prepaids and Other Current Assets [Line Items]
Prepaid consulting	$ 0	$ 75,955
Other assets	5,319	5,319
Unamortized original issue discount	4,563	7,344
Deferred financing costs	0	253
Prepaid Expense and Other Assets, Current	$ 9,882	$ 88,871

XML

CONVERTIBLE NOTES PAYABLE (Tables)

3 Months Ended

Nov. 30, 2014

Short-term Debt [Line Items]

Schedule of Derivative Liabilities at Fair Value [Table Text Block]

A summary of the status of the Company’s debt discounts, derivative liabilities and original issue discounts, and changes during the periods is presented below:

Derivative Liabilities	August 31, 2014		Initial Valuation		Revaluation on 11/30/14		Change in fair value of Derivative
Asher – 2/27/14		91,120		-		-		(91,120)
Beaufort Capital		-		118,894		88,397		(30,497)
Black Mountain – 3/5/14		33,509		-		35,303		1,794
JMJ – 9/30/13		19,877		-		-		(19,877)
JMJ - 4/17/14		60,776		-		53,630		(7,146)
JMJ – 6/24/14		63,221		-		86,144		22,923
KBM – 5/20/14		-		122,302		84,667		(37,635)
Knoblich		269,185		-		188,690		(80,495)
Neal		20,506		-		36,025		15,519
Scott Plantinga		-		67,822		66,922		(900)
Scott Plantinga		-		200,451		197,792		(2,659)
WHC Capital		-		244,523		88,593		(155,930)
	$	558,194	$	753,992	$	926,163	$	(386,023)

Convertible Notes Payable [Member]

Short-term Debt [Line Items]

Convertible Debt [Table Text Block]

A summary of the status of the Company’s debt discounts, derivative liabilities and original issue discounts, and changes during the periods is presented below:

Debt Discount	August 31, 2014		Additions		Amortization		November 30, 2014
Asher – 2/27/14		70,080		-		(70,080)		-
Beaufort Capital		-		50,000		(13,103)		36,897
Black Mountain – 3/5/14		14,013		-		(6,856)		7,157
Caspi		10,094		-		(10,094)		-
JMJ – 9/30/13		2,184		-		(2,184)		-
JMJ – 4/17/14		27,606		-		(12,494)		15,112
JMJ – 6/24/14		32,910		-		(10,970)		21,940
KBM – 5/20/14		-		53,000		(7,729)		45,271
Knoblich		244,839		-		(139,249)		105,590
Neal		17,238		-		(2,024)		15,214
Scott Plantinga		-		133,000		(14,940)		118,060
Scott Plantinga		-		45,000		(5,055)		39,945
WHC Capital		-		50,000		(9,234)		40,766
	$	418,964	$	331,000	$	(304,012)	$	445,952

Original Issue Discount	August 31, 2014		Additions		Amortization		November 30, 2014
Black Mountain – 3/5/14	$	1,405	$	-	$	(624)	$	781
JMJ – 9/30/13		185		-		(185)		-
JMJ – 4/17/14		2,499		-		(986)		1,513
JMJ – 6/4/14		3,255		-		(986)		2,269
	$	7,344	$		$	(2,781)	$	4,563

XML

SUBSEQUENT EVENTS

3 Months Ended

Nov. 30, 2014

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 10 - SUBSEQUENT EVENTS

Subsequent to November 30, 2014, Beaufort Capital Partners, LLC converted $17,680 of the amount due to them into 63,266,667 shares of common stock.

Subsequent to November 30, 2014, JMJ Financial converted $19,680 of the amount due to them into 82,600,000 shares of common stock.

Subsequent to November 30, 2014, Black Mountain Equities, Inc. converted $12,850 of the amount due to them into 50,428,571 shares of common stock.

Subsequent to November 30, 2014, the Company cancelled the 12,121,212 shares issued to Blackbridge Capital, LLC, on September 18, 2014 for conversion of debt. The $20,000 of debt still due was then converted into 74,500,000 shares of common stock.

Subsequent to November 30, 2014, WHC Capital, LLC converted $15,273 of the amount due to them into 61,905,500 shares of common stock.

Subsequent to November 30, 2014, KBM Worldwide, Inc. converted $45,030 of the amount due to them into 188,072,902 shares of common stock.

On December 11, 2014, the Company executed a convertible promissory note for $18,000 with KBM Worldwide, Inc. The note bears interest at 8% per annum and is due on or before August 3, 2015. The note is convertible at a 49% discount any time during the period beginning 180 days following the date of the note.

On December 11, 2014, the John Neal note in the amount $24,355 plus accrued interest of $2,730 was assigned to Beaufort Capital Partners, LLC. Concurrent with this assignment, we entered into a replacement Convertible Promissory Note with Beaufort Capital Partners, LLC.

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to November 30, 2014 through the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements other than the events described above.

XML

RELATED PARTY TRANSACTIONS

3 Months Ended

Nov. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 8 - RELATED PARTY TRANSACTIONS

During the three months ended November 30, 2014, the Company issued 4,000,000 shares of common stock to employees for compensation. The shares were valued at the closing stock price on the date of grant for total non-cash expense of $23,000.

On November 6, 2014, our Board of Directors approved a Severance and Release Agreement (the “Agreement”) with our departing former CEO and board member, Scott Plantinga. The Agreement resolves all claims for compensation, benefits, or other consideration due to Mr. Plantinga under his Executive Employment Agreement dated September 1, 2013.

XML

GOING CONCERN

3 Months Ended

Nov. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern [Text Block]

NOTE 9 - GOING CONCERN

As of November 30, 2014, the Company has a working capital deficit of $1,564,543, limited revenue and an accumulated deficit of $3,655,381. The financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. Without realization of additional capital, it would be unlikely for the Company to continue as a going concern. The Company’s management plans on raising cash from public or private debt or equity financing, on an as needed basis and in the longer term, upon achieving profitable operations through its business activities.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Nov. 30, 2014

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"). In the opinion of management, all adjustments necessary in order for the financial statements to be not misleading have been reflected herein. The interim results for the three months ended November 30, 2014 are not necessarily indicative of the results for the full fiscal year and should be read in conjunction with the August 31, 2014 Form 10-K. The Company has adopted an August 31 year end.

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The consolidated financial statements include the accounts of Aja Cannafacturing, Inc. and its wholly-owned subsidiary Propel Management Group, Inc. and Charge! Energy Storage, Inc. All significant intercompany accounts and transactions have been eliminated.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents. There were no cash equivalents as of November 30, 2014 and August 31, 2014.

Earnings Per Share, Policy [Policy Text Block]

Basic Loss per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Potentially dilutive shares were excluded from the computation as of November 30, 2014 and 2013 since they would have been anti-dilutive.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk

The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash.

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

Allowance for Doubtful Accounts

We maintain an allowance for doubtful accounts for estimated losses that result from the failure or inability of our customers to make required payments. When determining the allowance, we consider the probability of recoverability of accounts receivable based on past experience. Accounts receivable may also be fully reserved for when specific collection issues are known to exist. The analysis of receivables is performed quarterly, and the allowances are adjusted accordingly.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

For certain of the Company’s non-derivative financial instruments, including cash and cash equivalents, receivables, prepaids, accounts payable, accrued liabilities, and notes payable, the carrying amount approximates fair value due to the short-term maturities of these instruments. The estimated fair value of long-term debt is based primarily on borrowing rates currently available to the Company for similar debt issues. The fair value approximates the carrying value of long-term debt.

ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. 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 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. Observable inputs such as quoted prices in active markets;

· Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

· Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The following presents the gross value of assets and liabilities that were measured and recognized at fair value, as of November 30, 2014 and August 31, 2014.

Derivative liability	Level I		Level II		Level III		Total
November 30, 2014	$	-	$	926,163	$	-	$	926,163
August 31, 2014	$	-	$	558,194	$	-	$	558,194

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

The Company accounts for equity based transactions with non-employees under the provisions of ASC Topic No. 505-50, “Equity-Based Payments to Non-Employees” (“Topic No. 505-50”). Topic No. 505-50 establishes that equity-based payment transactions with non-employees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The fair value of common stock issued for payments to non-employees is measured at the market price on the date of grant. The fair value of equity instruments, other than common stock, is estimated using the Black-Scholes option valuation model. In general, the Company recognizes the fair value of the equity instruments issued as deferred stock compensation and amortizes the cost over the term of the contract. During the three months ended November 30, 2014, the Company issued 58,000,000 shares of common stock valued at $63,800 to non-employees.

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation - Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.  The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. During the three months ended November 30, 2014, the Company issued 4,000,000 shares of common stock valued at $23,000 to its employees.

Income Tax, Policy [Policy Text Block]

Income Taxes

 Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carry-forwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence; it is more likely than not such benefits will be realized. The Company’s deferred tax assets were fully reserved at November 30, 2014 and 2013.

The Company accounts for its income taxes using the Income Tax topic of the FASB ASC 740, which requires the recognition of deferred tax liabilities and assets for expected future tax consequences of events that have been included in the financial statements or tax returns.  Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Sales of products or services and related costs of products or services sold are recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. These terms are typically met upon the prepayment or invoicing, and shipment of products.

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect.  These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued, that might have a material impact on its financial position or results of operations.

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GOING CONCERN (Details Textual) (USD $)	Nov. 30, 2014	Aug. 31, 2014
Going Concern Disclosure [Line Items]
Stockholders' Equity Attributable to Parent	$ (1,564,543)	$ (1,116,379)
Retained Earnings (Accumulated Deficit)	$ (3,655,381)	$ (2,799,397)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Nov. 30, 2014	Aug. 31, 2014
Significant Accounting Policies [Line Items]
Derivative Liability, Current	$ 926,163	$ 558,194
Fair Value, Inputs, Level 1 [Member]
Significant Accounting Policies [Line Items]
Derivative Liability, Current	0	0
Fair Value, Inputs, Level 2 [Member]
Significant Accounting Policies [Line Items]
Derivative Liability, Current	926,163	558,194
Fair Value, Inputs, Level 3 [Member]
Significant Accounting Policies [Line Items]
Derivative Liability, Current	$ 0	$ 0

XML

CONVERTIBLE NOTES PAYABLE (Details Textual) (USD $)	0 Months Ended	3 Months Ended		0 Months Ended		1 Months Ended		0 Months Ended	1 Months Ended			0 Months Ended		1 Months Ended	0 Months Ended	1 Months Ended								0 Months Ended	1 Months Ended			0 Months Ended		1 Months Ended
	Jun. 12, 2013	Nov. 30, 2014	Nov. 30, 2013	Mar. 10, 2014	Dec. 03, 2012	Mar. 21, 2014	Jun. 19, 2013	Jun. 05, 2014	Sep. 30, 2014	Sep. 30, 2013	Apr. 17, 2014	Oct. 15, 2014	Jun. 15, 2013	Feb. 27, 2014	Mar. 05, 2014	Mar. 19, 2014	May 20, 2014	Oct. 30, 2014	Aug. 18, 2014	Sep. 17, 2014	Nov. 26, 2014	Sep. 24, 2014	Oct. 24, 2014	Nov. 06, 2014	Jul. 22, 2014	Jun. 24, 2014	May 31, 2013	Jul. 11, 2014	Feb. 10, 2015	Oct. 20, 2014	Aug. 31, 2014	Nov. 10, 2014
Short-term Debt [Line Items]
Debt Instrument, Face Amount	$ 15,000
Debt Instrument, Interest Rate, Effective Percentage		8.00%
Debt Instrument, Maturity Date	Aug. 12, 2013
Debt Conversion, Converted Instrument, Amount		320,020	0
Interest Payable, Current		33,957																													26,051
Derivative Liability, Current		926,163																													558,194
Amortization of Debt Discount (Premium)		304,012	81,482
Derivative Expenses		422,992	74,738
Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Unamortized Discount		445,952																													174,125
Caspi [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount					125,000
Debt Instrument, Issuance Date					Dec. 03, 2012
Debt Instrument, Interest Rate, Effective Percentage					5.00%
Debt Instrument, Maturity Date				Nov. 30, 2014	Nov. 30, 2013
Debt Instrument, Convertible, Conversion Price				$ 0.005	$ 1.25
Debt Instrument, Convertible, Beneficial Conversion Feature					60,000
Warrants To Purchase Common Stock					15,625
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 2.00
Warrants Expiration Term					5 years
Common Stock, Discount on Shares					16,455
Additional Debt Discount				48,539
Debt Conversion, Converted Instrument, Amount						25,000
Debt Conversion, Converted Instrument, Shares Issued						5,000,000
Debt Instrument Net Discount		0
Interest Payable, Current		10,422
Debt Conversion, Converted Instrument, Issuance Date				Mar. 10, 2014		Mar. 21, 2014
JMJ Financial One [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount							300,000
Debt Instrument, Issuance Date							Jun. 19, 2013
Debt Instrument, Interest Rate, Effective Percentage							10.00%
Debt Instrument, Term							1 year
Percentage Of Lowest Discount Price In Twenty Five Trading Days							40.00%
JMJ Financial Two [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount										27,500
Debt Instrument, Issuance Date										Sep. 30, 2013
Debt Instrument, Interest Rate, Effective Percentage										10.00%
Debt Conversion, Converted Instrument, Amount								20,250	20,772
Debt Conversion, Converted Instrument, Shares Issued								4,500,000	10,883,336
Debt Instrument Net Discount									2,184
Debt Instrument, Unamortized Discount										2,500
Derivative Liability, Current										70,390
Fair Value Assumptions, Risk Free Interest Rate										0.10%
Fair Value Assumptions, Expected Volatility Rate										261.00%
Fair Value Assumptions, Expected Term										1 year
Debt Conversion, Converted Instrument, Issuance Date								Jun. 05, 2014
Derivative, Gain (Loss) on Derivative, Net									19,877
Recorded Debt Discount										27,500
JMJ Financial Three [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount											44,000
Debt Instrument, Issuance Date											Jun. 19, 2013
Debt Instrument, Interest Rate, Effective Percentage											10.00%
Debt Conversion, Converted Instrument, Amount		18,141
Debt Conversion, Converted Instrument, Shares Issued		44,230,000
Debt Instrument Net Discount		15,112
Debt Instrument, Unamortized Discount		28,888									4,000
Derivative Liability, Current											104,127
Fair Value Assumptions, Risk Free Interest Rate											0.11%
Fair Value Assumptions, Expected Volatility Rate											214.00%
Fair Value Assumptions, Expected Term											1 year
Derivative, Gain (Loss) on Derivative, Net		53,630
Recorded Debt Discount											44,000
sharehloder [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount													15,000
Debt Instrument, Issuance Date													Jun. 15, 2013
Debt Instrument, Interest Rate, Effective Percentage													10.00%
Debt Instrument, Term													90 days
Recorded Debt Discount												15,000
Shareholder Two [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount												24,355
Debt Instrument, Issuance Date												Oct. 15, 2014
Debt Instrument, Interest Rate, Effective Percentage												10.00%
Debt Instrument Net Discount		15,214
Interest Payable, Current		2,704										600
Proceeds from Issuance of Debt												8,755
Percentage Of Convertible Debt Discount												49.00%
Debt Instrument, Unamortized Discount		9,141										24,355
Derivative Liability, Current												35,664
Fair Value Assumptions, Risk Free Interest Rate												0.68%
Fair Value Assumptions, Expected Volatility Rate												258.00%
Fair Value Assumptions, Expected Term												3 years
Derivative, Gain (Loss) on Derivative, Net		36,025
Asher Enterprises Inc [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount		73,000												73,000
Debt Instrument, Issuance Date														Feb. 27, 2014
Debt Instrument, Interest Rate, Effective Percentage														8.00%
Debt Instrument, Maturity Date														Dec. 03, 2014
Debt Conversion, Converted Instrument, Shares Issued		42,830,672
Debt Instrument Net Discount		70,080
Percentage Of Convertible Debt Discount														49.00%
Debt Instrument, Unamortized Discount														73,000
Derivative Liability, Current														118,582
Derivative, Gain (Loss) on Derivative, Net		91,120
Amortization of Debt Discount (Premium)		2,920
Black Mountain Equities [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount															250,000
Debt Instrument, Issuance Date															Mar. 05, 2014
Debt Instrument, Interest Rate, Effective Percentage															10.00%
Debt Instrument, Convertible, Conversion Price															$ 0.025
Proceeds from Issuance of Debt															25,000
Percentage Of Convertible Debt Discount															10.00%
Debt Instrument, Unamortized Discount															27,500
Derivative Liability, Current															110,515
Fair Value Assumptions, Expected Volatility Rate															193.00%
Black Mountain Equities [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Conversion, Converted Instrument, Amount		23,800
Debt Conversion, Converted Instrument, Shares Issued		26,240,311
Debt Instrument Net Discount		7,157
Interest Payable, Current		2,750
Debt Instrument, Term															1 year
Debt Instrument, Unamortized Discount		20,343
Fair Value Assumptions, Risk Free Interest Rate															0.13%
Fair Value Assumptions, Expected Term															1 year
Derivative, Gain (Loss) on Derivative, Net		35,303
Percentage Of Lowest Discount Price In Twenty Five Trading Days															60.00%
Penalty Cost Incurred		16,000
KBM Worldwide One [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount		53,000														53,000
Debt Instrument, Issuance Date																Mar. 19, 2014
Debt Instrument, Interest Rate, Effective Percentage																8.00%
Debt Instrument, Maturity Date																Dec. 26, 2014
Debt Conversion, Converted Instrument, Shares Issued		58,597,904
Percentage Of Convertible Debt Discount																49.00%
Amortization of Debt Discount (Premium)		2,120
Gain Loss On Conversion Of Debt		53,274
KBM Worldwide Two [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount																	53,000
Debt Instrument, Issuance Date																	May 20, 2014
Debt Instrument, Interest Rate, Effective Percentage																	8.00%
Debt Instrument, Maturity Date																	Feb. 23, 2015
Debt Instrument Net Discount		45,271
Interest Payable, Current		2,485
Percentage Of Convertible Debt Discount																	49.00%
Debt Instrument, Unamortized Discount		7,729
Derivative Liability, Current																	122,302
Derivative, Gain (Loss) on Derivative, Net		84,667
Derivative Expenses																	69,302
Recorded Debt Discount																	53,000
KBM Worldwide Three [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount																		18,000	53,000
Debt Instrument, Issuance Date																		Oct. 30, 2014	Aug. 18, 2014
Debt Instrument, Interest Rate, Effective Percentage																		8.00%	8.00%
Debt Instrument, Maturity Date																		Aug. 03, 2015	May 20, 2015
Interest Payable, Current		1,104																122
Percentage Of Convertible Debt Discount																		49.00%	49.00%
Blackbridge Capital, LLC [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount																				20,000
Debt Instrument, Issuance Date																				Sep. 17, 2014
Debt Instrument, Interest Rate, Effective Percentage																				5.00%
Debt Instrument, Maturity Date																				Mar. 17, 2015
Debt Conversion, Converted Instrument, Amount																				17,576
Debt Conversion, Converted Instrument, Shares Issued																				12,121,212
Percentage Of Convertible Debt Discount																				50.00%
Debt Instrument Assignments		20,000
WHC Capital, LLC [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount																						50,000
Debt Instrument, Issuance Date																						Sep. 24, 2014
Debt Instrument, Interest Rate, Effective Percentage																						12.00%
Debt Instrument, Maturity Date																						Sep. 24, 2015
Debt Instrument, Convertible, Beneficial Conversion Feature																						50,000
Debt Conversion, Converted Instrument, Amount																					5,148
Debt Conversion, Converted Instrument, Shares Issued																					15,480,000
Interest Payable, Current		1,061
Percentage Of Convertible Debt Discount																						49.00%
Debt Instrument, Unamortized Discount		9,234
Derivative Liability, Current																						244,523
Derivative Liability, Fair Value, Gross Asset																						194,523
Derivative, Gain (Loss) on Derivative, Net		88,593
Amortization of Debt Discount (Premium)		40,766
Debt Instrument Assignments		50,000
Beaufort Capital Partners LLC [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount																							50,000
Debt Instrument, Issuance Date																							Oct. 24, 2014
Debt Instrument, Interest Rate, Effective Percentage																							50.00%
Debt Instrument, Maturity Date																							Oct. 24, 2015
Debt Instrument, Convertible, Beneficial Conversion Feature																							50,000
Debt Conversion, Converted Instrument, Amount		10,750
Debt Conversion, Converted Instrument, Shares Issued		30,714,286
Debt Instrument, Unamortized Discount		36,897
Derivative Liability, Current																							118,894
Derivative, Gain (Loss) on Derivative, Net		88,397
Amortization of Debt Discount (Premium)		13,103
Derivative Expenses																							68,894
Debt Instrument Assignments		50,000
Bruce Knoblich [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount																									274,973		289,998
Debt Instrument, Issuance Date																									Jul. 22, 2014		May 31, 2013
Debt Instrument, Interest Rate, Effective Percentage																									8.00%		5.00%
Debt Instrument, Maturity Date																											Nov. 30, 2013
Debt Conversion, Converted Instrument, Amount																						19,250			30,000
Debt Conversion, Converted Instrument, Shares Issued																						5,000,000			6,000,000
Debt Instrument Net Discount		105,590
Interest Payable, Current		7,029
Percentage Of Convertible Debt Discount																									49.00%
Debt Instrument, Unamortized Discount		139,249
Derivative Liability, Current																									395,341
Fair Value Assumptions, Risk Free Interest Rate																										0.11%
Fair Value Assumptions, Expected Volatility Rate																									230.00%
Derivative, Gain (Loss) on Derivative, Net		188,690
Notes Payable		155,723
Repayments of Debt																								20,000			2,150
Principal And Accrued Interest Were Rolled Into New Convertible Promissory Note																									304,973
JMJ Financial Four [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount																										44,000
Debt Instrument, Issuance Date																										Jun. 24, 2014
Debt Instrument, Interest Rate, Effective Percentage																										10.00%
Debt Instrument, Maturity Date																										Jun. 19, 2013
Debt Instrument Net Discount		21,940
Debt Instrument, Unamortized Discount		22,060																								4,000
Derivative Liability, Current																										66,010
Fair Value Assumptions, Risk Free Interest Rate																											0.11%
Fair Value Assumptions, Expected Volatility Rate																										214.00%
Derivative, Gain (Loss) on Derivative, Net		86,144
Recorded Debt Discount																										44,000
LG Capital Funding LLC [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount																												31,500
Debt Instrument, Issuance Date																												Jul. 11, 2014
Debt Instrument, Interest Rate, Effective Percentage																												8.00%
Debt Instrument, Maturity Date																												Jul. 11, 2015
Interest Payable, Current		987
Percentage Of Convertible Debt Discount																												45.00%
Scott Plantinga One [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount																													20,000	45,000		25,000
Debt Instrument, Issuance Date																														Oct. 20, 2014
Debt Instrument, Interest Rate, Effective Percentage																														10.00%
Debt Instrument, Maturity Date																														Nov. 10, 2014
Debt Instrument, Convertible, Beneficial Conversion Feature																														45,000
Interest Payable, Current		137
Percentage Of Convertible Debt Discount																														50.00%
Debt Instrument, Unamortized Discount		39,945
Derivative Liability, Current																														67,822
Derivative, Gain (Loss) on Derivative, Net		66,922
Amortization of Debt Discount (Premium)		5,055
Payments of Loan Costs																														25,000
Penalty Cost Incurred																													20,000	20,000
Derivative Expenses																														22,822
Scott Plantinga Two [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount																														133,000
Debt Instrument, Issuance Date																														Oct. 20, 2014
Debt Instrument, Interest Rate, Effective Percentage																														12.00%
Debt Instrument, Maturity Date																														Oct. 20, 2015
Debt Instrument, Convertible, Beneficial Conversion Feature																														133,000
Debt Instrument Net Discount		118,060
Interest Payable, Current		1,793
Percentage Of Convertible Debt Discount																														50.00%
Derivative Liability, Current																														200,451
Derivative, Gain (Loss) on Derivative, Net		197,792
Amortization of Debt Discount (Premium)		14,940
Derivative Expenses																														$ 67,451

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STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Cash flows from operating activities:
Net loss for the period	$ (855,984)	$ (203,617)
Adjustments to reconcile net loss to net cash used in operations:
Stock based compensation and services	163,755	0
(Gain) loss on fair value of derivatives	(386,023)	(126,960)
Amortization of discounts	304,012	81,482
Loss on debt conversion	70,849	0
Derivative expense	422,992	74,738
Severance and penalty expense	161,314	0
Change in assets and liabilities:
(Increase)/decrease in prepaids and other current assets	3,034	33,485
(Increase)/decrease in note receivable - related party	0	38,889
Increase in interest receivable - related party	0	(2,807)
Increase/(decrease) in accounts payable	23,689	49,692
Increase/(decrease) in accrued expenses	19,237	1,333
Net cash used in operating activities	(73,125)	(53,765)
Cash flows from investing activities:	0	0
Cash flows from financing activities:
Proceeds from convertible debt	38,000	35,000
Increase / (decrease) in note payable - related party	0	5,250
Increase / (decrease) in other notes payable	(3,000)	11,555
Net cash provided by financing activities	35,000	51,805
Net decrease in cash	(38,125)	(1,960)
Cash at beginning of period	43,993	1,960
Cash at end of period	5,868	0
Supplemental Cash Flow Information:
Cash paid for interest	0	0
Cash paid for taxes	0	0
Supplemental disclosure of non-cash activities
Common stock issued for conversion of debt	320,020	0
Debt discount from fair value of embedded derivatives	$ 331,000	$ 0

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STOCK WARRANTS

3 Months Ended

Nov. 30, 2014

Warrants and Rights Note Disclosure [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 5 – STOCK WARRANTS

Pursuant to the terms and conditions of the convertible promissory note dated February 27, 2013, the Company issued a warrant to purchase 50,000 shares of the Company’s common stock. The aggregate fair value of the warrants totaled $2,044 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.20, 1.30% risk free rate, 64% volatility and expected life of the warrants of 3 years.

Pursuant to the terms and conditions of the convertible promissory note dated November 30, 2012, the Company issued a warrant to purchase 15,625 shares of the Company’s common stock. The aggregate fair value of the warrants totaled $16,455 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $2.00, .63% risk free rate, 85.9% volatility and expected life of the warrants of 5 years.

Pursuant to the terms and conditions of the convertible promissory note dated February 4, 2014, the Company issued a warrant to purchase 1,000,000 shares of the Company’s common stock. The aggregate fair value of the warrants totaled $11,769 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.02, 1.46% risk free rate, 197.6% volatility and expected life of the warrants of 5 years.

Pursuant to the terms and conditions of the Warrant agreement dated February 27, 2014, the Company issued a warrant to purchase 2,000,000 shares of the Company’s common stock. The aggregate fair value of the warrants totaled $44,169 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.01, 2.11% risk free rate, 246% volatility and expected life of the warrants of 7 years.

A summary of the status of the Company’s outstanding warrants and changes during the periods is presented below:

	Shares available to purchase with warrants	Weighted Average Price		Weighted Average Fair Value
Outstanding, August 31, 2014	3,065,625	$	0.03	$	0.03
Issued	-		-		-
Exercised	-		-		-
Forfeited	-		-		-
Expired	-		-		-
Outstanding, November 30, 2014	3,065,625	$	0.03	$	0.03
Exercisable, November 30, 2014	3,065,625	$	0.03	$	0.03

Range of Exercise Prices	Number Outstanding at 11/30/14	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$0.10 - $2.00	3,065,625	5.7 years	$	0.03

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NOTES PAYABLE (Details Textual) (USD $)	0 Months Ended
	Jun. 12, 2013	Nov. 30, 2014
Notes Payable [Line Items]
Debt Instrument, Face Amount	$ 15,000
Debt Instrument, Fee Amount	5,000
Due to Officers or Stockholders, Current		$ 10,100
Debt Instrument, Interest Rate, Effective Percentage		8.00%
Debt Instrument, Maturity Date	Aug. 12, 2013

XML

STOCK WARRANTS (Tables)

3 Months Ended

Nov. 30, 2014

Warrants and Rights Note Disclosure [Abstract]

Schedule of Share-based Compensation, Activity [Table Text Block]

A summary of the status of the Company’s outstanding warrants and changes during the periods is presented below:

	Shares available to purchase with warrants	Weighted Average Price		Weighted Average Fair Value
Outstanding, August 31, 2014	3,065,625	$	0.03	$	0.03
Issued	-		-		-
Exercised	-		-		-
Forfeited	-		-		-
Expired	-		-		-
Outstanding, November 30, 2014	3,065,625	$	0.03	$	0.03
Exercisable, November 30, 2014	3,065,625	$	0.03	$	0.03

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Range of Exercise Prices	Number Outstanding at 11/30/14	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$0.10 - $2.00	3,065,625	5.7 years	$	0.03