All the notes bear interest at five percent per
annum, are non-collateralized and due on demand, as soon as the Company has operating cash flow available for repayment. The balance of
the notes payable was $1,114,207 and $1,114,207 at November 30, 2021 and August 31, 2021, respectively. Accrued interest on the notes,
which is included in accrued expenses, totaled $183,432 and $169,543 at November 30, 2021 and August 31, 2021, respectively. There are no
conversion provisions associated with the notes.
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