RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS: Schedule of Error Corrections and Prior Period Adjustments (Tables)

12 Months Ended

Aug. 31, 2024

Tables/Schedules

Schedule of Error Corrections and Prior Period Adjustments

	As at August 31, 2023
	Previously Reported		Restated Impacts		Restated Reference		As Restated
ASSETS
Current assets
Cash and cash equivalents	$	344	$	-			$	344
Deposits & prepayments		8,500		-				8,500
Inventory		135,030		-				135,030

Total current assets		143,874		-				143,874

Fixed assets
Property, plant & equipment		8,649		-				8,649
Accumulated depreciation		(3,599)		-				(3,599)
Software		11,900		-				11,900
Other intangible assets		21,000		-				21,000
Accumulated amortization		(3,220)		-				(3,220)

TOTAL ASSETS	$	178,604	$	-			$	178,604

LIABILITIES & STOCKHOLDERS’ DEFICIT
Current liabilities
Accrued expenses	$	10,020	$	18,649		3(b)	$	28,669
Loans & notes payable, short-term or current		137,610		(48,596)		1(a)(b)		89,014
Related party loans and notes payable, short-term or current		3,036		48,076		1(a)		51,112
Derivative liability		384,524		(134,828)		3(a)		249,696

TOTAL LIABILITIES		535,190		(116,699)				418,491

STOCKHOLDERS’ DEFICIT
Convertible preferred shares: par value $0.001, 10,000,000 authorized and 8,999,999 undesignated as at August 31, 2023 and 2022		-		-				-
Series A shares: 1 share designated Series A shares: 1 and nil shares issued and outstanding at August 31, 2023 and 2022, respectively		-		-				-
Series B shares: 1,000,000 shares designated Series B shares: Nil shares issued and outstanding at August 31, 2023 and 2022		-		-				-
Common stock: par value $0.001, 750,000,000 and 300,000,000 authorized and 5,729 and 946 issued and outstanding at August 31, 2023 and 2022, respectively		6		-				6
Additional paid-in capital		30,568,394		1,000,000		2		31,568,394
Accumulated deficit		(30,924,986)		(883,301)				(31,808,287)

TOTAL STOCKHOLDERS’ DEFICIT		(356,586)		116,699				(239,887)

TOTAL LIABILITIES & STOCKHOLDERS’ DEFICIT	$	178,604	$	-			$	178,604

	For the year ended August 31, 2023
	Previously Reported		Restated Impacts		Restated Reference		As Restated
Revenues	$	4,224	$	-			$	4,224

Cost of goods sold		21,354		-				21,354

Gross loss		(17,130)		-				(17,130)

Operating expenses
Selling, general & administrative expenses		420,811		128		1(b)		420,939
Depreciation & amortization		5,259		-				5,259

Total operating expenses		426,070		128				426,198

Net operating loss		(443,200)		(128)				(443,328)

Other income (expenses)
Bank charges		(1,555)		-				(1,555)
Bank/loan interest accrued		(18,649)		-				(18,649)
Non-cash interest, convertible loan		(457,801)		420,268		3(b)		(37,533)
Amortization of debt discount		(128,090)		-				(128,090)
Gain (loss) on revaluation of derivative liability		222,277		(303,440)		3(a)		(81,163)
Preferred stock and warrants issued for services		-		(1,000,000)		2		(1,000,000)

Total other income (expenses)		(383,818)		(883,172)				(1,266,990)

Net loss before income taxes	$	(827,018)	$	(883,300)			$	(1,710,318)

Provision for corporation taxes		-		-				-

Net loss	$	(827,018)	$	(883,300)			$	(1,710,318)

Net loss per share	$	(253.14)	$	(327.27)			$	(633.70)

Weighted average shares outstanding		3,267		2,699				2,699

	For the year ended August 31, 2023
	Previously Reported		Restated Impacts		Restated Reference		As Restated
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(827,018)	$	(883,300)			$	(1,710,318)

Adjustments to reconcile net loss to net cash (used in) operating activities:
Depreciation and amortization		5,259		-				5,259
Stock issued for services		-		200,000		4		200,000
Amortization of debt discount		128,090		-				128,090
(Gain) loss on revaluation of derivative liability		(222,277)		303,440		3(a)		81,163
Non-cash interest, convertible loan		457,801		(420,268)		3(b)		37,533
Preferred stock and warrants issued for services		-		1,000,000		2		1,000,000
Changes in operating assets and liabilities:
Accounts payable and other current liabilities		(11,980)		68,649		1(b)		56,669
Inventory		(4,480)		-				(4,480)
Due to related party		-		(8,964)		1(a)4		(8,964)
Other current assets		(8,500)		-				(8,500)

NET CASH (USED IN) OPERATING ACTIVITIES		(483,105)		259,557				(223,548)

CASH FLOWS FROM INVESTING ACTIVITIES
Sale (purchase) of intangible assets		(24,500)		-				(24,500)

NET CASH PROVIDED BY INVESTING ACTIVITIES		(24,500)		-				(24,500)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of equity		287,000		(200,000)		4		87,000
Proceeds from (repayment of) debt instruments		158,521		(68,521)		1(a)4		90,000
Related party loans		(8,964)		8,964		1(a)4		-

NET CASH PROVIDED BY FINANCING ACTIVITIES		436,557		(259,557)				177,000

NET INCREASE (DECREASE) IN CASH		(71,048)		-				(71,048)

Cash, beginning of year		71,392		-				71,392

Cash, end of year	$	344	$	-			$	344

Supplemental schedules of non-cash investing and financing activities
Original debt discount	$	-	$	9,000		5	$	9,000
Initial debt discount and derivative liability created	$	-	$	140,000		5	$	140,000
Related party accrual reclassified into convertible loan	$	-	$	50,000		5	$	50,000
Conversion of debt to equity	$	-	$	-			$	-

Supplemental disclosure of cash flow information
Federal income taxes paid	$	-	$	-			$	-
Interest paid	$	-	$	-			$	-

NITCHES INC 10-K