UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended ~~May~~November 3130, 2019

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

For the transition period from _________ to __________

Commission file number: 333-178210

SERVICE TEAM INC.

(Exact name of registrant as specified in its charter)

Wyoming

61-1653214

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer Identification No.)

18482 Park Villa Place, Villa Park, California 92861

(Address of principal executive offices) (Zip Code)

(714) 538-5214

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol Name of each exchange on which registered N/A N/A N/A

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Sec.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ 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. See the definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐

Smaller reporting company ☒ Emerging growth company ☐

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

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

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of ~~July~~ 5January 14, 2019: 8,852,873,544 common shares and 150,000 shares of preferred stock.

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

TABLE OF CONTENTS

		Page
Financial Statements
	Consolidated Balance Sheets as of May 31, 2019 (unaudited) and August 31, 2018	3
	Consolidated Balance Sheets as of November 30, 2019 (Unaudited) and August 31, 2019	3
	Consolidated Statements of Operations for the three months and nine months ended May 31, 2019 and 2018 (unaudited)	4
	Consolidated Statements of Operations for the three months periods ended November 30, 2019 and November 30, 2018 (Unaudited)	4
	Consolidated Statement of Shareholders' Equity for the year ended August 31, 2018 (audited) and the nine months ended May 31, 2019 (unaudited)	5
	Consolidated Statement of Shareholders' Equity for the year ended August 31, 2019 and the three months ended November 30, 2019 (Unaudited)	5
	Consolidated Statement of Cash Flows for the nine month periods ended May 31, 2019 and May 31, 2018 (unaudited)	6
	Consolidated Statement of Cash Flows for the three months ended November 30, 2019 and November 30, 2018 (Unaudited)	6
	Notes to the Consolidated Financial Statements (unaudited)	7
	Notes to the Consolidated Financial Statements (Unaudited)	7

SERVICE TEAM INC. CONSOLIDATED BALANCE SHEETS AS OF ~~MAY~~NOVEMBER 3130, 2019 (UNAUDITED) AND AUGUST 31, ~~2018~~2019

	5/31/19			8/31/18
	11/30/19			8/31/19
ASSETS
Cash	$	2923,~~201~~153		$	4852,~~855~~636
Accounts receivable, net		~~408~~376,~~752~~285			~~330~~344,~~631~~266
Total current assets		437,953			379,486
Total Current Assets		399,438			396,902
Property and equipment, net of depreciation		162,844			171,726
Property and equipment, net		155,434			157,736
Prepaid expenses		14,000			14,000
Prepaid Expenses – non-current		14,000			14,000
TOTAL ASSETS	$	~~614~~568,~~797~~872		$	~~565~~568,~~212~~638
LIABILITIES & SHAREHOLDERS' (DEFICIT)
LIABILITIES & SHAREHOLDERS' EQUITY
Accounts payable	$	62109,~~521~~162		$	~~101~~82,~~030~~564
Convertible notes payable, net		—			16,584
Loan-Employee		1,300			1,300
Convertible notes payable, net currently in default		133,137			107,832
Convertible notes payable net – currently in default		136,632			140,232
Promissory Note Payable, net		37,201			67,092
Promissory note payable net		—			10,120
Accrued expense		7862,~~149~~652			6663,~~575~~521
Accrued interest		3790,~~030~~256			2084,~~940~~866
TOTAL LIABILITIES	$	~~348~~400,~~038~~002		$	~~380~~382,~~053~~603
SHAREHOLDERS' EQUITY
Common stock, $0.001 par value, 20,000,000,000 authorized, 8,852,873,544 and 8,852,873,544 issued and outstanding as of May 31, 2019 and August 31, 2018, respectively.		8,852,874			8,852,874
Common stock, $0.001 par value, 20,000,000,000 authorized, and 8,852,873,544 issued and outstanding as of November 30, 2019 and 8,852,873,544 issued and outstanding as of August 31, 2019 respectively.		8,852,874			8,852,874
Preferred stock – Series A, $0.001 par value, 150,000 authorized, 150,000 and 150,000 issued and outstanding as of May 31, 2019 and August 31, 2018, respectively.		150			150
Preferred stock – Series A, $0.001 par value, 150,000 authorized, 150,000 and 150,000 issued and outstanding as of November 30, 2019 and August 31, 2019, respectively.		150			150
Stock Payable		7,095			—
Additional paid in capital		(5,611,302	)		(5,611,302	)
Accumulated deficit		(2,982,058	)		(3,056,563	)
Stock payable		—			—
TOTAL SHAREHOLDERS' EQUITY		266,759			185,159
Accumulated deficit		(3,072,852	)		(3,055,687	)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	614,797		$	565,212
TOTAL SHAREHOLDERS' EQUITY		168,870			186,035
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		568,872			568,638

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

SERVICE TEAM INC. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTH PERIODS ENDING NOVEMBER 30, 2019 AND NOVEMBER 30, 2018 (UNAUDITED)

CONSOLIDATED STATEMENTS OF OPERATIONS

	3 Months Ended 11/30/19			3 Months Ended 11/30/18
REVENUES
Sales	$	994,625		$	993,889

COST OF SALES
Cost of sales		824,002			717,017
Gross Margin		170,623			276,872

OPERATING EXPENSES
General & administrative expenses		174,689			126,460
Depreciation expense		4,017			4,206
Total Operating Expenses		178,706			130,666

INCOME FROM OPERATIONS

OTHER EXPENSE
Interest Expense		(9,082	)		32,680
Total Other Expense		(9,082	)		32,680

NET INCOME (LOSS)	$	(17,165	)	$	113,526

Weighted average number of common shares outstanding – basic		8,852,873,544			8,852,873,544
Weighted average number of common shares outstanding – fully diluted		8,852,873,544			11,515,613,544

Net income (loss) per share - basic	$	(0.00	)	$	0.00
Net income (loss) per share - fully diluted	$	(0.00	)	$	0.00

FOR THE THREE AND NINE MONTH PERIODS ENDING

MAY 31,2019 AND MAY 31, 2018 (UNAUDITED)

	3 Months			3 Months			9 Months			9 Months
	Ended			Ended			Ended			Ended
	5/31/19			5/31/18			5/31/19			5/31/18
REVENUES
Sales	$	1,096,983		$	783,139		$	3,010,049		$	2,559,473
COST OF SALES
Cost of sales		802,012			658,039			2,373,347			2,095,230
Gross Margin		294,971			125,100			636,700			464,243
OPERATING EXPENSES
General & Administrative Expenses		157,915			138,804			488,678			492,054
Depreciation Expense		3,081			4,386			11,492			12,159
Total Operating Expenses		160,996			143,190			500,170			504,213
INCOME (LOSS) FROM OPERATIONS		133,975			(18,090	)		136,530			(39,970	)
OTHER EXPENSE
Interest Expense		(10,799	)		(105,476	)		(62,027	)		(325,666	)
Total Other Expense		(10,799	)		(105,476	)		(62,027	)		(325,666	)
NET INCOME (LOSS)	$	123,176		$	(123,566	)	$	74,505		$	(365,636	)
Weighted Average number of common shares outstanding - basic		8,852,873,544			8,291,333,017			8,852,873,544			6,903,361,709
Weighted Average number of common shares outstanding - fully diluted		11,515,613,544			8,291,333,017			11,515,613,544			6,903,361,709
Net income (loss) per share – basic	$	0.00		$	(0.00	)	$	0.00		$	(0.00	)
Net income (loss) per share – fully diluted	$	0.00		$	(0.00	)	$	0.00		$	(0.00	)

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

CONSOLIDATED STATEMENT OF SHAREHOLDERS DEFICIT FOR THE YEAR

ENDED AUGUST 31, ~~2018~~2019 AND THE ~~NINE~~THREE MONTHS ENDED ~~MAY~~NOVEMBER 3130, 2019 (UNAUDITED)

	Common Stock				Preferred Stock				Additional Paid In			Stock			Accumulated
	Shares		Amount		Shares		Amount		Capital			Payable			Deficit			Total
Balance, August 31, 2017		2,319,879,587	$	2,319,880		100,000	$	100	$	598,737		$	4,742		$	(2,701,796	)	$	221,663
Balance, August 31, 2018		8,852,873,544	$	8,852,874		150,000	$	150	$	(5,611,302)		$	-		$	(3,056,563)		$	185,159
Shares Issued for Note Conversions		6,427,625,957		6,427,626		—		—		(6,150,363	)		—			—			277,263
Net Income		-		-		-		-		-			-			876			876
Shares Issued for Stock Payable		105,368,000		105,368		—		—		(100,626	)		(4,742	)		—			—
Balance August 31, 2019		8,852,873,544	$	8,852,874		150,000	$	150	$	(5,611,302	)	$	-		$	(3,055,687)		$	186,035
Stock Based Compensation		—		—		50,000		50		950			—			—			1,000
Stock Payable for Note Conversion		-		-		-		-		-			-			-			-
Beneficial Conversion Feature		—		—		—		—		40,000			—			—			40,000
Net Loss		-		-		-		-		-			-			(17,165)			(17,165)
Net Loss		—		—		—		—		—			—			(354,767	)		(354,767	)
Balance November 30, 2019		8,852,873,544	$	8,852,874		150,000	$	150	$	(5,611,302	)		-			(3,072,852)			168,870
Balance August 31, 2018		8,852,873,544	$	8,852,874		150,000	$	150	$	(5,611,302	)	$	—		$	(3,056,563	)	$	185,159
Stock Payable for Note Conversion		—		—		—		—		—			7,095			—			7,095
Net Income		—		—		—		—		—			—			74,505			74,505
Balance May 31, 2019		8,852,873,544	$	8,852,874		150,000	$	150	$	(5,611,302	)		7,095		$	(2,982,058	)	$	266,759

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

SERVICE TEAM INC.

CONSOLIDATED ~~STATEMENTS~~STATEMENT OF CASH FLOWS

FOR THE ~~NINE~~THREE MONTHS PERIOD ENDED ~~MAY~~NOVEMBER 3130, 2019 ~~AND MAY 31, 2018 (UNAUDITED)~~

	5/31/19			5/31/18
Cash flows from operating activities
Net income (loss)	$	74,505		$	(365,636	)
Adjustments to reconcile net income (loss) with cash provided by (used in) operations:
Debt discount amortization		46,130			273,477
Stock based compensation – related party		—			1,000
Depreciation		11,492			12,159
Change in operating assets and liabilities:
Accounts receivable		(78,121	)		(43,216	)
Accrued expenses		27,664			86,980
Accounts Payable		(41,119	)		(51,655	)
Net cash provided by (used in) operating activities		40,551			(86,891	)
Cash flows from investing activities
Cash paid for purchase of fixed assets		—			(31,278	)
Net cash used in investing activities		—			(31,278	)
Cash flows from financing activities
Payments on promissory notes		(107,961	)		(135,788	)
Proceeds from convertible notes payable – related party		—			7,500
Proceeds from convertible notes payable		—			40,000
Proceeds from promissory notes		47,756			181,405
Net cash provided by (used in) financing activities		(60,205	)		93,117
Net decrease in cash and cash equivalents		(19,654	)		(25,052	)
Cash at beginning of period		48,855			80,810
Cash at end of period	$	29,201		$	55,758
Supplemental Disclosures
Interest Paid	$	30,313		$	33,141
Taxes Paid	$	—		$	—
Non-Cash Transactions
Beneficial conversion features	$	—		$	40,000
Conversions of debt to common stock payable	$	7,095		$	—
Conversions of debt to common stock	$	—		$	204,615
Common shares issued for common stock payable	$	—		$	4,742
Conversion of accrued interest to convertible debt	$	—		$	72,648

AND NOVEMBER 30, 2018 (UNAUDITED)

	3 Months Ended 11/30/19			3 Months Ended 11/30/18
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$	(17,165	)	$	113,526

Adjustments to reconcile net income (loss) with cash provided by (used in) operations:		—			—
Debt discount amortization		3,279			19,881
Depreciation		4,017			4,206

CHANGE IN OPERATING ASSETS AND LIABILITIES
Accounts receivable		(32,019	)		(28,815	)
Accrued expenses		4,521			5,760
Accounts payable		26,598			17,805
Net Cash Provided by (Used in) Operating Activities		(10,769	)		132,363

CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for purchase of fixed assets		(1,715	)		—
Net Cash Used in Investing Activities		(1,715	)		—

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible debt – third party		—			—
Payments on promissory notes – third party		(16,999	)		(39,656	)
Net Cash Provided by (Used in) Financing Activities		(16,999	)		39,656

Net Increase (Decrease) In Cash and Cash Equivalents		(29,483	)		92,707
Cash at Beginning of Period		52,636			48,855
Cash at End of period	$	23,153		$	141,562

Supplemental Disclosures
Interest Paid		413			—
Taxes Paid		—			—

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

SERVICE TEAM, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

ASAT ~~OF MAY 31,~~NOVEMBER 30, 2019 (UNAUDITED)

NOTE 1 - ORGANIZATION

Organization

Service Team Inc. (the "Company") was incorporated pursuant to the laws of the State of Nevada on June 6, 2011. The Company was organized to comply with the warranty obligations of electronic devices manufactured by companies outside of the United States. The business proved to be unprofitable and the Company reduced its warranty and repair operations. On June 5, 2013, Service Team Inc. acquired Trade Leasing, Inc. for 4,000,000 shares of its common stock, a commonly held company. Trade Leasing, Inc., a California corporation, was incorporated on November 1, 2011, and commenced business January 1, 2013. Trade Leasing, Inc. is principally involved in the manufacturing, maintenance and repair of truck bodies. On September l, ~~2017~~2018, Service Team Inc. changed its state of domicile from the state of Nevada to the state of Wyoming.

The Company has established a fiscal year end of August 31.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The consolidated financial statements presented in this report are the combined financial reports of Trade Leasing, Inc. and Service Team Inc.

The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP).

The consolidated financial statements present the Balance Sheet, Statements of Operations, Shareholders' ~~Deficit~~Equity and Cash Flows of the Company. These consolidated financial statements are presented in United States dollars. The accompanying audited, consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Service Team Inc. and Trade Leasing, Inc. both of which are under common control and ownership. The consolidated financial statements herein contain the operations of the wholly-owned subsidiaries listed above. All significant inter-company transactions have been eliminated in the preparation of these financial statements.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

Going Concern

The Company's financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America, and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company has an accumulated deficit as of ~~May 31~~November 30, 2019 of $23,~~982~~072,~~058.~~852 ~~The company~~and ~~will~~is be dependent on raising capital through placement of our common stock in order to implement its business plan. There can be no assurance that the Company will be successful in order to continue as a going concern. The Company is funding its initial operations by issuing common shares and debt. We cannot be certain that capital will be provided when it is required.

Cash and Equivalents

Cash and equivalents include investments with initial maturities of three months or less. The Company maintains its cash balances at credit-worthy financial ~~institutions~~ institutions that are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. There were no cash ~~equivalents~~ equivalents at ~~May~~November 3130, 2019, or August 31, ~~2018~~2019.

Concentration of Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, are cash and cash equivalents. The Company places its cash and temporary cash investments with credit quality institutions. At times, such investments may be in excess of FDIC insurance limits.

Accounts Receivable

All accounts receivable are due thirty (30) days from the date billed. If the funds are not received within thirty (30) days the customer is contacted to arrange payment. The Company uses the allowance method to account for uncollectable accounts receivable. ~~All~~Whilst ~~accounts~~management ~~were~~is confident ~~considered~~that ~~collectable at~~its ~~period~~customers ~~end~~will ~~and~~settle notheir debts, it has recorded an allowance for ~~bad~~doubtful ~~debts~~accounts ~~was~~in ~~considered~~amount ~~necessary.~~of $14,310 as of November 30, 2019 and August 31, 2019

Accounts Receivable and Revenue Concentrations

The ~~Company's~~company ~~wholly owned subsidiary,~~has ~~Trade~~approximately ~~Leasing,~~400 ~~Inc., has more than 300~~ customers. ~~Three~~ ~~customers~~One ~~represented~~customer ~~about 22%,~~South ~~12%~~Bay ~~and~~Ford ~~9% of total receivables as of May 31, 2019. Three customers~~ represented ~~21%,~~more ~~18%~~than ~~and 12~~10% of ~~total~~sale ~~receivables~~in ~~as of August 31, 2018. During~~ the ~~nine~~last ~~month period ended May 31, 2019, the Company had two customers that represented 16% and~~ 12% ~~of total sales~~months. ~~During~~The ~~the~~company ~~nine month period ended May 31, 2018, the Company had~~is ~~one~~not ~~customer~~dependent ~~that~~on ~~represented~~a ~~16%~~few ofmajor ~~total sales~~customers.

Inventory

The Company does not own inventory, materials are purchased as needed from local suppliers; therefore, there was no additional inventory on hand at ~~May~~November 3130, 2019 or or August 31, ~~2018~~2019.

Property and Equipment

Equipment, vehicles and furniture, which are recorded at cost, consist primarily of fabrication equipment and are depreciated using the straight-line ~~method~~ method over the estimated useful lives of the related assets (generally 15 years or less). Costs incurred for maintenance and repairs are expensed as incurred and expenditures for major replacements and improvements are capitalized and depreciated over their estimated remaining useful lives. There was $114,~~492~~017 and $124,~~159~~206 of depreciation expense during the ~~nine~~three months ended ~~May~~November 3130, 2019 and 2018, respectively.

Net property and equipment were as as follows at ~~May~~November 3130, 2019 and August 31, ~~2018~~2019:

	5/31/19			8/31/18
	11-30-19			8-31-19
Equipment	$	~~366~~369,~~820~~673		$	~~364~~367,~~210~~958
Vehicles		15,000			15,000
Furniture		24,000			24,000
Leasehold improvements		52,~~827~~826			52,~~827~~826
Subtotal		~~458~~461,~~647~~499			~~456~~459,~~037~~784
Less: accumulated depreciation		~~(295~~306,~~803~~065	)		(~~284~~302,~~311~~048	)
Total Fixed Assets, Net	$	~~162~~155,~~844~~434		$	~~171~~157,~~726~~736

Lease Commitments

Service Team Inc. leases facilities at 1818 Rosslynn Avenue, Fullerton, California, to manufacture its products. The facility is leased for six and one half years at a price of $10,000 per month, for the first six months; and, $14,000 per month thereafter. Service Team Inc pays for the fire insurance and property taxes on the building estimated to be approximately $2,000 per month. The location consists of three acres of land and one building of approximately 30,000 square feet. As of ~~May~~November 3130, 2019, the deferred rent related to this lease was $97,333 and is included in accrued expenses.

The table below discloses the Company’s future minimum lease payment obligations as of November 30, 2019.

2020	$	126,000
2021		168,000
2022		14,000
TOTAL:	$	308,000

Beneficial Conversion Features

From time to time, the Company may issue convertible notes that may contain an imbedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method.

Fair Value of Financial Instruments

The Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820 on June 6, 2011. Under this FASB, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value.

The Company has various financial instruments that must be measured under the new fair value standard including: cash, convertible notes payable, accrued expenses, promissory notes payable, accounts receivable and accounts payable. The Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows:

Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The fair value of the Company's cash is based on quoted prices and therefore classified as Level 1.

Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 - Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

Cash, accounts receivable, accounts payable, promissory notes, convertible notes and accrued expenses reported on the balance sheet are estimated by management to approximate fair market value due to their short -term nature.

The following table presents assets and liabilities that were measured and recognized at fair value as of ~~May~~November 3130, 2019 on a recurring basis:

							Total
Description	Level 1		Level 2		Level 3		Total Realized Loss
							Realized
Convertible Note Payable-net	$	0	$	—	$	—	$	—
Description	Level 1		Level 2		Level 3		Loss
Convertible Note Payable-net, in default		136,632		—		—		—
Convertible Note Payable, net – in default	$	133,137	$	—	$	—	$	—
Total	$	136,632		—		—		—
Total	$	133,137	$	—	$	—	$	—

The following table presents assets and liabilities that were measured and recognized at fair value as of August 31, ~~2018~~2019 on a recurring basis:

							Total
Description	Level 1		Level 2		Level 3		Total Realized Loss
							Realized
Convertible Note Payable-net	$	140,232	$	—	$	—	$	—
Description	Level 1		Level 2		Level 3		Loss
Total	$	140,232		—		—		—
Convertible note payable, net – in default		107,832		—		—		—
Convertible notes payable, net		16,584		—		—		—
Total	$	124,416	$	—	$	—	$	—

Income Taxes

In assessing the realization of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on the level of historical operating results and the uncertainty of the economic conditions, the Company has recorded a full valuation allowance against its deferred tax assets at ~~May~~November 3130, 2019 and August 31, ~~2018~~2019 where it cannot conclude that it is more likely than not that those assets will be realized.

Revenue Recognition

Trade Leasing Inc dba Delta Stag Manufacturing

Service Team Inc, 100% owned subsidiary Trade Leasing Inc dba Delta Stag Manufacturing receives orders from customers to build or repair truck bodies. The company builds the requested product. At the completion of the product the truck is delivered to the customer. If the customer accepts the product Trade Leasing Inc dba Delta Stag Manufacturing issues an invoice to the customer for the job. The invoice is entered into our accounting system and is recognized as revenue at that time.

In Trade Leasing Inc we use the completed contract method for truck bodies built, which typically have construction periods of 15 days or less. Contracts are considered complete when title has passed, the customer has accepted the product and we do not retain risks or rewards of ownership of the truck bodies. Losses are accrued if manufacturing costs are expected to exceed manufacturing contract revenue. Manufacturing expenses are primarily composed of aluminum cost, which is the largest component of our raw materials cost and the cost of labor.

On September 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification (ASC) Topic 605, Revenue Recognition (Topic 605). Results for reporting periods beginning after September 1, 2018 are presented under Topic 606. The impact of adopting the new revenue standard was not material to our financial statements and there was no adjustment to beginning retained earnings on September 1, 2018.

Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

We determine revenue recognition through the following steps:

● identification of the contract, or contracts, with a customer;

● identification of the performance obligations in the contract;

● determination of the transaction price;

● allocation of the transaction price to the performance obligations in the contract; and

● recognition of revenue when, or as, we satisfy a performance obligation.

Share Based Expenses

The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more readily determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

Stock Based Compensation

In December of 2004, the FASB issued a standard which applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are based on the fair value of those equity instruments. For any unvested portion of previously issued and outstanding awards, compensation expense is required to be recorded based on the previously disclosed methodology and amounts. Prior periods presented are not required to be restated. We adopted the standard as of inception. The Company has not issued any stock options to its Board of Directors and officers as compensation for their services. If options are granted, they will be accounted for at a fair value as required by the FASB ASC 718.

Net Loss Per Share

The Company adopted the standard issued by the FASB, which requires presentation of basic earnings or loss per share and diluted earnings or loss per share. Basic income (loss) per share ("Basic EPS") is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share ("Diluted EPS") are similarly calculated using the treasury stock method except that the denominator is increased to reflect the potential dilution that would occur if dilutive securities at the end of the applicable period were exercised. During the three ~~and nine~~ month ~~periods~~ period ended ~~May~~November 3130, 2018, because the Company operations resulted in net ~~losses~~income, therefore additional dilutive securities were included in the diluted EPS. During the three month period ended November 30, 2019, there were net losses; therefore, no additional dilutive securities were included in the ~~Diluted~~ diluted EPS as that would be anti-dilutive to the resulting diluted earnings per share.

Recent Accounting Pronouncements

In ~~May~~February ~~2017~~2016, ~~the Financial Accounting Standards~~ ~~Board ("~~the FASB") issued ~~Accounting Standard Update ("~~ASU") ~~2017~~No. 2016-0902, ~~Compensation~~ ~~— Stock Compensation~~ Leases (Topic ~~718~~ 842): Accounting ~~Scope~~for ~~of Modification Accounting~~Leases. ~~ASU~~ ~~2017-09,~~This ~~which~~update ~~provides~~requires ~~guidance~~that ~~about~~lessees ~~which~~recognize ~~changes to the terms or conditions~~ right-of ~~a share~~-~~based~~use ~~payment~~assets ~~award~~and ~~require~~lease anliabilities ~~entity~~that toare ~~apply modification accounting in Topic 718. Per ASU 2017-9, an entity~~measured ~~should~~at ~~account for~~ the ~~effects~~present value of ~~a modification unless all~~ the ~~following~~future ~~are~~lease ~~met:~~payments ~~(1)~~at ~~the~~lease ~~fair~~commencement ~~value~~date. ~~(or~~The ~~calculated value or intrinsic value~~recognition, ~~if such an alternative~~ measurement, ~~method~~and ispresentation ~~used)~~ of expenses ~~the~~and ~~modified~~cash ~~award~~flows isarising ~~the~~from ~~same~~a aslease ~~the~~by ~~fair~~a ~~value~~lessee ~~(or~~will ~~calculated~~largely ~~value or~~remain ~~intrinsic~~unchanged ~~value,~~and ifshall ~~such~~continue anto ~~alternative~~depend ~~measurement~~on ~~method~~its isclassification as ~~used)~~a offinance ~~the~~or ~~original~~operating ~~award immediately before the original award is modified~~lease. IfThe ~~the~~Company ~~modification~~has ~~does~~performed ~~not~~a ~~affect~~comprehensive ~~any~~review ofin ~~the~~order ~~inputs~~ to ~~the~~determine ~~valuation~~what ~~technique~~changes ~~that~~were ~~the entity uses to value the award, the entity is not~~ required to ~~estimate~~support the ~~value~~adoption ~~immediately before and after the modification, (2) the vesting conditions~~ of ~~the~~this ~~modified~~new ~~award~~standard. ~~are~~The ~~the~~Company ~~same~~will aselect the ~~vesting~~optional ~~conditions~~transition ofmethod ~~the~~that ~~original~~allows ~~award~~for ~~immediately~~a ~~before the original award is modified,~~cumulative-effect ~~and~~adjustment ~~(3)~~in the ~~classification~~period of ~~the~~adoption ~~modified~~and ~~award~~will asnot anrestate ~~equity~~prior ~~instrument~~periods. orUnder ~~a liability instrument is~~ the ~~same~~new asguidance, the ~~classification of~~Company’s ~~the~~lease ~~original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply~~will ~~regardless~~continue ~~of whether an entity is required~~ to ~~apply~~be ~~modification~~classified ~~accounting~~as ~~under the amendments in ASU 2017-9~~operating. ~~ASU~~During ~~2017-9 is effective for public business entities for annual and interim periods in~~ fiscal ~~years beginning after December 15~~2020, ~~2017.~~the ~~Early adoption~~Company iswill ~~permitted,~~complete ~~including~~its ~~adoption~~implementation inof ~~any~~its ~~interim~~processes ~~period,~~and ~~for (1) public business entities for reporting periods for which~~policies ~~financial~~to ~~statements~~support ~~have~~the ~~not~~new ~~yet~~lease ~~been~~accounting ~~issued~~ and ~~(2) all other entities for~~ reporting ~~periods for which financial statements have not yet been made available for issuance~~requirements. The ~~amendments~~adoption inof this ASU ~~should~~is benot ~~applied~~expected ~~prospectively~~ to ~~an award modified on or after the adoption date. The adoption of ASU 2017-9 did not~~ have a ~~material~~ significant impact on ~~the~~our ~~Company's~~Consolidated ~~financial statements~~Statements of Operations or ~~related~~Cash ~~disclosures~~Flows.

In ~~January~~May ~~2017~~2014, the FASB issued ASU ~~2017~~2014-0409, ~~Intangibles –~~ ~~Goodwill~~Revenue ~~and~~from ~~Other~~Contracts with Customers (Topic ~~350~~606)., ~~ASU~~to ~~2017-04~~clarify ~~simplifies~~ the ~~subsequent~~principles ~~measurement~~ of ~~goodwill~~recognizing byrevenue ~~removing the second~~and ~~step~~create ofcommon ~~the~~revenue ~~two-step~~recognition ~~impairment~~guidance ~~test~~between U.S. ~~The~~GAAP ~~amendment~~and ~~requires~~International anFinancial ~~entity~~Reporting toStandards. ~~perform~~Under ~~its~~ASU ~~annual~~2014-09, ~~or interim goodwill impairment test~~ byrevenue ~~comparing~~is ~~the~~recognized ~~fair~~when ~~value of~~ a ~~reporting~~customer ~~unit~~obtains ~~with~~control ~~its~~of ~~carrying~~promised ~~amount.~~goods Anor ~~impairment~~services ~~charge~~and ~~should~~is be recognized ~~for~~at ~~the~~an amount by ~~which~~that reflects the ~~carrying~~consideration ~~amount~~expected ~~exceeds~~to ~~the~~be ~~reporting~~received ~~unit's~~in ~~fair~~exchange ~~value;~~for ~~however,~~such ~~the~~goods ~~loss~~or ~~recognized~~services. ~~should~~In ~~not~~addition, ~~exceed~~ASU ~~the~~2014-09 ~~total amount~~requires disclosure of ~~goodwill~~the ~~allocated~~nature, toamount, ~~that~~timing, ~~reporting~~and ~~unit.~~uncertainty Anof ~~entity~~revenue ~~still~~and ~~has~~cash ~~the~~flows ~~option~~arising tofrom ~~perform~~contracts ~~the~~with ~~qualitative~~customers. ~~assessment~~The ~~for~~ASU ais effective ~~reporting~~for ~~unit~~fiscal toyears ~~determine~~beginning ifafter ~~the~~December ~~quantitative~~15, ~~impairment~~2017. ~~test~~The isnew ~~necessary.~~revenue ~~The~~standard ~~amendment~~is ~~should~~principle bebased ~~applied~~and oninterpretation aof ~~prospective~~those principles ~~basis.~~may ~~ASU~~vary ~~2017-04~~from iscompany ~~effective~~to ~~for~~company ~~fiscal~~based ~~years~~on ~~beginning~~their ~~after~~unique ~~December~~circumstances. ~~15,~~It ~~2019,~~is ~~including~~possible ~~interim~~that ~~periods~~interpretation, ~~within~~industry ~~those~~practice, ~~fiscal~~and ~~years.~~guidance ~~Early~~may ~~adoption~~evolve isas ~~permitted~~companies ~~for~~and ~~interim~~the oraccounting ~~annual~~profession ~~goodwill~~work ~~impairment~~to ~~tests~~implement ~~performed~~this onnew ~~testing~~standard. ~~dates~~The ~~after~~implementation ~~January~~of 1,this ~~2017.~~standard ~~The~~did ~~Company~~not ~~adopted~~have a material effect on the ~~ASU~~Company’s inresults ~~2017~~of operations.

In ~~February~~January ~~2016~~2017, the FASB issued ASU ~~2016~~ No. 2017-0204, ~~"Leases~~Simplifying ~~(Topic~~the Test for Goodwill ~~842)".~~Impairment, ~~Under~~which ~~this~~simplifies ~~guidance,~~the ansubsequent ~~entity~~measurement isof ~~required~~goodwill toby ~~recognize~~eliminating ~~right-of-use~~Step ~~assets~~2 ~~and~~from ~~lease~~the goodwill impairment ~~liabilities~~test. onIn ~~its~~computing ~~balance~~the ~~sheet~~implied ~~and~~fair ~~disclose~~value ~~key~~of ~~information~~goodwill ~~about~~under ~~leasing~~Step ~~arrangements~~2, current U.S. ~~This~~GAAP ~~guidance~~requires ~~offers~~the ~~specific~~performance ~~accounting~~of procedures to ~~guidance~~determine ~~for~~the afair ~~lessee,~~value aat ~~lessor~~the ~~and~~impairment ~~sale~~testing date of assets and ~~leaseback~~liabilities ~~transactions.~~(including ~~Lessees~~unrecognized assets and ~~lessors~~liabilities) following ~~are~~the procedure that would be required toin ~~disclose~~determining ~~qualitative~~the ~~and quantitative~~fair ~~information~~value ~~about~~of ~~leasing~~assets ~~arrangements~~acquired toand ~~enable~~liabilities assumed in a ~~user~~business combination. ofInstead, the ~~financial~~amendments ~~statements~~under tothis ~~assess~~ASU require the ~~amount,~~goodwill ~~timing~~impairment ~~and~~test to be performed by comparing the fair ~~uncertainty~~value of ~~cash~~a ~~flows~~reporting ~~arising~~unit ~~from~~with ~~leases~~its carrying amount. ~~This~~An ~~guidance~~impairment ischarge ~~effective~~should be recognized for ~~annual~~the ~~reporting~~amount ~~periods~~by ~~beginning~~which ~~after December~~the carrying ~~15,~~amount ~~2018,~~exceeds ~~including~~the ~~interim~~reporting ~~periods~~unit’s ~~within~~fair ~~that~~value; ~~reporting period~~however, ~~and~~the ~~requires~~loss arecognized ~~modified~~should ~~retrospective~~not ~~adoption,~~exceed ~~with~~the ~~early~~total ~~adoption~~amount of goodwill ~~permitted~~allocated to that reporting unit. The ~~Company~~ASU isbecomes ~~currently~~effective ~~evaluating~~for the ~~impact~~Company ofon ~~the~~January ~~adoption~~1, of2020. The amendments in this ~~standard~~ASU will be ~~have~~applied on ~~our~~a ~~consolidated~~prospective ~~financial statements~~basis. Early adoption is permitted for interim or annual goodwill impairment tests performed.

In ~~May~~August ~~2014~~ 2016, the ~~FASB~~Financial ~~issued~~Accounting ~~ASU~~Standards ~~No. 2014-09,~~Board ~~Revenue from Contracts with Customers. Since~~ (the “FASB”) issued ASU ~~2014~~2016-~~09 was issued~~15, Statement ~~several additional ASUs have been issued to clarify various elements~~ of ~~the~~Cash ~~guidance~~Flows (Topic 230). The ~~These~~update addresses ~~standards~~eight ~~provide~~specific ~~guidance~~cash onflow ~~recognizing~~issues ~~revenue,~~and ~~including~~is aintended ~~five-step model~~ to ~~determine when~~reduce ~~revenue~~diversity ~~recognition~~in ispractice ~~appropriate.~~in ~~The~~how ~~standard~~certain ~~requires~~cash ~~that~~receipts anand ~~entity~~cash payments ~~recognize~~are ~~revenue~~presented toand ~~depict~~classified in the ~~transfer~~statement of ~~control of~~cash ~~promised~~flows. ~~goods~~This orupdate ~~services~~is toeffective ~~customers~~for inreporting anperiods ~~amount~~beginning after ~~that~~December ~~reflects~~15, ~~the~~2017, ~~consideration~~including tointerim ~~which~~periods within the ~~entity~~reporting ~~expects to be entitled in exchange for those goods or services~~period. Adoption of ~~the~~ASU ~~new~~2016-15 ~~standard~~did isnot ~~effective~~have ~~for~~a ~~reporting periods beginning after December~~material ~~15,~~effect ~~2017. We adopted the new standard~~ on ~~September~~our 1,financial ~~2018~~statements.

In May 2017, the FASB issued ASU No. 2017-09, Stock Compensation - Scope of Modification Accounting, which provides guidance on which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The ASU requires that an entity account for the effects of a modification unless the fair value (or calculated value or intrinsic value, if used), vesting conditions and classification (as equity or liability) of the modified award are all the same as for the original award immediately before the modification. The ASU became effective for the Company on January 1, 2018 and will be applied to an award modified on or after the adoption date. Adoption of ASU 2017-09 did not have a material effect on the Company’s financial statements.

Effective June 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products, licensing agreements and contracts to perform pilot studies by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. For the comparative periods, revenue has not been adjusted and continues to be reported under ASC 605 — Revenue Recognition. Under ASC 605, revenue is recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the performance of service has been rendered to a customer or delivery has occurred; (3) the amount of fee to be paid by a customer is fixed and determinable; and (4) the collectability of the fee is reasonably assured. There was no impact on the Company’s financial statements as a result of adopting ASC 606.

There are various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

NOTE 3 – CAPITAL STOCK

The Company's authorized capital is 20,000,000,000 common shares with a par value of $0.001 per share and 150,000 preferred shares with a par value of $0.001 per share.

Common Shares

On February 12, 2016, the Articles of Incorporation were amended to increase the authorized shares of capital stock to 500,000,000. On December 20, 2016, the Articles of Incorporation were amended to increase the authorized share of capital stock to 1,000,000,000. On On January 19, 2017, the Articles of Incorporation were amended to increase the authorized share of capital stock to 2,000,000,000. On February 16, 2017, the Articles of Incorporation were amended to increase the authorized share of capital stock to 3,000,000,000. On April 27, 2017, the Articles of Incorporation were amended to increase the authorized share of capital stock to 4,500,000,000. On June 13, 2017, the Articles of Incorporation were amended to increase the authorized share of capital stock to 8,000,000,000. On June 28, 2017, the Articles of Incorporation were amended to increase the authorized share of capital stock to 10,000,000,000. On August 22, 2017, the Company moved its state of domicile from Nevada to Wyoming, and ~~increased~~in the process of the transfer increased its authorized common stock to 20,000,000,000.

Preferred Shares

On January 23, 2015, Service Team Inc. filed with the Secretary of State of Nevada a Certificate of Designation for 100,000 shares of Series A Preferred Stock. The Designation gives the Series A Preferred Stock 500 votes per share. Series A Preferred Stock were not entitled to receive dividends, any liquidation preference, or conversion rights. On October 16, 2015, the Designation of Preferred Stock was amended to allow Preferred Shareholders to receive dividends in an amount equal to dividends paid per share on Common Stock. On July 27, 2016, an amendment was filed to increase the voting rights of the preferred stock from 500 votes per share to 10,000 votes per share. The Series A share amendments valued according to the additional voting rights and dividend rights assigned. The value assigned to the dividend rights was derived from a model utilizing future economic value of the dividends and was $525 which was recorded on the grant date as stock based compensation. The value assigned to the voting rights was derived from a model utilizing control premiums to value the voting control of the preferred stock and was $83,000 which was recorded on the grant date as stock based compensation. On December 30, 2016 the Articles of Incorporation were amended to increase the authorized preferred shares to 150,000.

On July 25, 2017, the Articles of Incorporation were amended to increase the voting rights of preferred shares to 100,000 votes per share. The Series A share amendments valued according to the additional voting rights and dividend rights assigned. The value assigned to the dividend rights was derived from a model utilizing future economic value of the dividends and was $0 which was recorded on the grant date as stock based compensation. The value assigned to the voting rights was derived from a model utilizing control premiums to value the voting control of the preferred stock and was $54,000 which was recorded on the grant date as stock based compensation.

On December 4, 2017, the Company granted 50,000 additional Series A Preferred Stock shares to Robert Cashman, a related party. The value assigned to the new shares was derived from a model utilizing control premiums to value the voting control of the preferred stock and was $1,000 which was recorded on the grant date as stock based compensation.

Share Transactions

2020

There were no share transactions in 2020

2019

OnThere ~~November~~were ~~13,~~no ~~2018,~~share ~~JMJ~~transactions ~~Financial converted $7,095 of its Note into 129,000,000 shares of common stock. The shares have not been issued; therefore, a stock payable of $7,095 has been recorded~~ in ~~equity. As the conversion was completed within the terms of the convertible note agreement, no gain~~ ~~or loss was recognized as a result of this conversion.~~2019

2018

On September 1, 2017, Crown Bridge Partners LLC converted $4,742 of its Note dated 12-21-2016 into 105,368,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On September 2, 2017, Crossover Capital LLC converted $4,975 of its Note dated 2-14-2017 into 103,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On September 11, 2017, Crown Bridge Partners LLC converted $5,446 of its Note dated 12-21-2016 into 121,018,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On September 12 2017, LG Capital Funding LLC Converted $6,048 of its Note dated 1-3-2017 into 120,964,400 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On September 19, 2017, Crossover Capital LLC converted $6,075 of its Note dated 2-14-2017 into 125,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On October 6, 2017, Crown Bridge Partners LLC converted $6,501 of its Note dated 12-21-2016 into 144,470,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On October 5,2017, Crossover Capital LLC converted $6,925 of its Note dated 2-14-2017 into 142,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On October 31, 2017, Tangiers Investment Group LLC converted $4,331 of its Note dated 6-13-2016 in the amount of into 125,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On October 31, 2017, Tangiers Investment Group LLC converted $6,750 of its Note dated 6-13-2016 in the amount of into 192,857,143 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On November 2, 2017, LG Capital Funding LLC Converted $6,681 of its Note dated 1-3-2017 into 133,622,200 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On November 4, 2017, Crossover Capital LLC converted $8,075 of its Note dated 2-14-2017 into 165,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion

On November 8, 2017, Crown Bridge Partners LLC converted $7,858 of its Note dated 12-21-2016 into 174,626,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On November 14, 2017, Crown Bridge Partners LLC converted $9,421 of its Note dated 12-21-2016 into 198,242,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On November 15, 2017, Crown Bridge Partners LLC converted $7,538 of its Note dated 12-21-2016 into 167,511,777 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On November 15, 2017, Crossover Capital LLC converted $7,735 of its Note dated 2-14-2017 into 158,200,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion

On November 16, 2017, Tangiers Investment Group LLC converted $13,613 of its Note in the amount of into 396,880,466 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On November 29, 2017, JMJ Financial converted $13,270 of its Note dated 5-1-2017 into 132,700,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion

On December 5, 2017, Tangiers Investment Group LLC converted $16,769 of its Note dated 7-18-2016 into 488,892,128 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On December 6, 2017, JMJ Financial converted $4,700 of its Note dated 5-1-2017 into 94,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On December 13, 2017, JMJ Financial converted $19,317 of its Note dated 5-1-2017 into 129,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion. This conversion pays the Note in full.

On December 14, 2017, Crown Bridge Partners LLC converted $12,596 of its Note dated 12-21-2016 into 279,900,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On December 28, 2017, Tangiers Investment Group LLC converted $20,621 of its Note dated 7-18-2016 into 601,195,335 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On January 12, 2018, Crown Bridge Partners LLC converted $12,600 of its Note dated 12-21-2016 into 280,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On January 29, 2018, Crossover Capital LLC converted $7,325 of its Note Dated 7-24-2017 into 150,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On March 16, 2018, Crossover Capital LLC converted $12,325 of its Note Dated 7-24-2017 into 250,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On March 16, 2018, JMJ Financial converted $6,505 of its Note dated 4-28-2017 into 351,000,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On March 19, 2018, Crown Bridge Partners LLC converted $15,829 of its Note dated 12-21-2016 into 351,760,000 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On March 21, 2018, Tangiers Investment Group LLC converted $19,201 of its Note dated 7-18-2016 into 548,564,286 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

On May 22, 2018, Tangiers Investment Group LLC converted $13,600 of its Note dated 11-10-2017 into 302,222,222 shares of common stock. As the conversion was completed within the terms of the convertible note agreement, no gain or loss was recognized as a result of this conversion.

During the twelve-month period ended August 31, 2018, $40,000 of beneficial conversion features were recorded resulting from convertible debts issued during the same period. Please refer to Note 4 for further information regarding the discounts on the convertible debt transactions.

As of May 31, 2019 and August 31, 2018, the Company has not granted any stock options.

During 2018 and 2019 the Company did not sell any Common Shares. The only shares issued were for Conversion of Notes.

Stock Based Compensation

We have accounted for stock-based compensation under the provisions of FASB Accounting Standards codification (ASC) 718-10-55. (Prior authoritative literature: FASB Statement 123 (R), Share-based payment.) This statement requires us to record any expense associated with the fair value of stock-based compensation. Determining fair value requires input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. As of November 30, 2019, the company has not granted any stock options.

NOTE 4 – DEBT TRANSACTIONS

Convertible Notes Payable – Related Party

R.L. Cashman

On April 17, 2017, the Company issued a convertible note to Robert Cashman (a related party) for $12,500 of cash consideration. The note bears interest at 10%, matures on April 17, 2018, and is convertible into common stock at 50% of the average bid price of the stock during the 30 days prior to the conversion. The Company recorded a debt discount equal to $12,500 due to this conversion feature and amortized $4,658 during the year ended August 31, 2017, with a remaining debt discount of $7,842 amortized during the year ended August 31, 2018. The note was repaid in ~~full~~ during the fiscal year ended August 31, 2018.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.0005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

Convertible Notes Payable – Third Party

JMJ Financial Group

On April 28, 2017, the Company issued a convertible note to JMJ Financial Group for $55,000 of cash consideration. The note bears interest at 12%, matures on April 28, 2018, and is convertible into common stock at 50% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion. The Company recorded a debt discount equal to $37,080 due to this conversion feature. The Company also recorded a $6,000 and $11,920 debt discounts due to accrued interest and origination fees required by the agreement to be accrued at the beginning of the note. The note had accrued interest of $7,222 ~~and $9,331~~ as of ~~August~~November 3130, ~~2018~~2019 and ~~May~~August 31, 2019, respectively. The debt discounts had a balance at ~~August~~November 3130, ~~2017~~2019 ~~of $36,164~~ and aAugust ~~balance~~31, 2019 of $0 ~~at August 31, 2018~~. The Company recorded debt discount amortization expense of $~~18,836~~0 during the ~~year~~three months ended ~~August~~November 3130, ~~2017~~2019 and ~~$36,164~~ during the year ended August 31, ~~2018~~ 2019. The Company converted $31,570 of principal and $12,222 of interest into shares during the year ended August 31, ~~2018. The~~ ~~Company converted $7,095 of principal into shares during the period ended November 30,~~ 2018. This note is currently in default.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

LG Capital Funding, LLC

On January 3, 2017, the Company issued a convertible note to LG Capital Funding LLC for $28,000 for cash consideration. The note bears interest at 8%, matures on September 3, 2017, and is convertible into common stock at 50% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion. The Company recorded a debt discount equal to $26,000 due to this conversion feature. The Company also recorded a $2,000 debt discount due to issuance costs. The note had accrued interest of $84 as of August 31, 2017 and $0 at August 31, 2018. The debt discounts had a balance at August 31, 2017 of $9,589 and $0 at August 31, 2018. During the year ended August 31, 2017, $15,930 of principal and $706 of accrued interest was converted into shares; see Note 3 for more information. The Company made cash payments of $5,770, to end with a balance of $6,300 as of August 31, 2017. The note was fully converted into shares during the three months ended November 30, 2017. The Company recorded debt discount amortization expense of $18,411 during the year ended August 31, 2017 and $9,589 during the three months ended November 30, 2017. The entire balance of the Note has been converted to stock.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

Tangiers Capital Group

On ~~June~~November 1310, ~~2016~~ 2017, ~~the~~Service ~~Company~~Team Inc issued a ~~convertible~~12% ~~note~~Convertible Promissory Note payable to Tangiers ~~Capital~~Investment Group ~~for~~LLC ~~$38,500~~(the of"Investor") in ~~cash~~the ~~consideration. The~~principal ~~note~~amount ~~bears~~of ~~interest~~$23,000. atThe ~~10%~~Note, ~~matures~~which is due on ~~June~~ 13November 10, ~~2017~~2018, ~~and~~was isfunded ~~convertible~~by ~~into~~the ~~common~~Investor ~~stock~~in atthe ~~50%~~sum of ~~the~~$20,000 and ~~lowest~~ $3,000 ~~closing~~was ~~market~~retained ~~prices~~by of the ~~previous~~Investor 20through ~~trading~~an ~~days prior~~original toissue ~~conversion.~~discount ~~The~~or ~~Company~~"OID" ~~recorded~~for adue ~~debt~~diligence ~~discount~~and ~~equal~~legal toexpense related ~~$35,000 due~~ to this ~~conversion feature~~transaction. The ~~Company~~Note ~~also~~is ~~recorded a~~convertible ~~$3,500~~into ~~debt~~shares ~~discount~~of ~~due~~the toRegistrant's ~~issuance~~common ~~fees.~~stock, ~~The~~par ~~note~~value ~~had~~$0.001, ~~accrued~~at ~~interest~~a conversion price of ~~$7,272~~50% ~~and~~of ~~$10,890~~the ~~and~~lowest ~~$3,850~~trading asprice of ~~November~~the ~~30, 2017~~Company's ~~and~~common ~~August~~stock ~~31,~~during ~~2017. The~~the ~~debt~~25 ~~discounts~~consecutive ~~had~~trading adays ~~balance~~prior atto ~~November~~the ~~30,~~date on ~~2017~~which ~~and~~Holder ~~August~~elects ~~31,~~to ~~2017~~convert ofall $0or ~~and~~part ~~$0,~~of ~~respectively~~the Note. The Company recorded ~~debt~~a ~~discount amortization expense of~~ $020,000 ~~and~~discount ~~$30,167~~due ~~during~~to the ~~three~~beneficial conversion ~~months~~feature. During ~~ended November 30, 2017 and~~ the year ended August 31, ~~2017~~2019, ~~respectively. During~~$18,526 ~~the~~of ~~three~~discount ~~months~~amortization ~~ended~~was ~~November 30~~recorded, ~~2017~~to ~~and~~result ~~the~~in ~~year~~a remaining ~~ended~~debt ~~August~~discount ~~31,~~balance ~~2017,~~ of $~~4,982~~0 as of ~~principal~~August ~~and $3~~31,~~743~~ of2019. Accrued interest ~~and~~at ~~$33~~August 31,~~518~~ of2019 ~~principal~~ and $4November 30,~~220~~ of2019 ~~accrued interest~~ was $11,186 ~~converted~~and ~~into shares~~$11,703, respectively~~; see Note 3 for more information~~. ~~The~~This note ~~has~~is ~~now~~currently ~~been~~in ~~fully converted as of November 30, 2017~~default.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

On July 18, 2016, the Company issued a convertible note to Tangiers Capital Group for $27,500 of cash consideration. The note bears interest at 10%, matures on July 18, 2017, and is convertible into common stock at 50% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion. The Company recorded a debt discount equal to $25,000 due to this conversion feature. The Company also recorded a $2,500 debt discount due to issuance fees. The note had accrued interest of $0 and $8,401 and as of August 31, 2018 and August 31, 2017. The debt discounts had a balance at August 31, 2018 and August 31, 2017 of $0 and $0, respectively. The Company recorded debt discount amortization expense of $24,185 and $3,315 during the year ended August 31, 2017 and the year ended August 31, 2016, respectively. $27,500 of principal and $39,694 of interest were converted into shares during the year ended August 31, 2018; see Note 3 for further information.17

On February 27, 2018, Service Team Inc issued a 12% Convertible Promissory Note payable to Tangiers Investment Group LLC (the "Investor") in the principal amount of $23,000. The Note, which is due on February 27, 2019, was funded by the Investor in the sum of $20,000 and $3,000 was retained by the Investor through an original issue discount or "OID" for due diligence and legal expense related to this transaction. The Note is convertible into shares of the Registrant's common stock, par value $0.001, at a conversion price of 50% of the lowest trading price of the Company's common stock during the 25 consecutive trading days prior to the date on which Holder elects to convert all or part of the Note. The Company recorded a $20,000 discount due to the beneficial conversion feature and a $3,000 discount due to the original issue discount. During the year ended August 31, 2019, the Company amortized $11,342 of the debt discount leaving a remaining balance of $0 as of August 31, 2019. Accrued interest at August 31, 2019 and November 30, 2019 was $19,237 and $20,502, respectively.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

On November 10, 2017, Service Team Inc issued a 12% Convertible Promissory Note payable to Tangiers Investment Group LLC (the "Investor") in the principal amount of $23,000. The Note, which is due on November 10, 2018, was funded by the Investor in the sum of $20,000 and $3,000 was retained by the Investor through an original issue discount or "OID" for due diligence and legal expense related to this transaction. The Note is convertible into shares of the Registrant's common stock, par value $0.001, at a conversion price of 50% of the lowest trading price of the Company's common stock during the 25 consecutive trading days prior to the date on which Holder elects to convert all or part of the Note. The Company recorded a $20,000 discount due to the beneficial conversion feature. During the year ended August 31, 2018, $18,526 of discount amortization was recorded, to result in a remaining debt discount balance of $4,474 as of August 31, 2018. During the three months ended November 30, 2018, the remaining discount balance of $4,474 was amortized leaving a remaining debt discount balance of $0 as of November 30, 2018. Accrued interest at August 31, 2018 and May 31, 2019 was $2,760 and $3,606, respectively. This note is currently in default.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

On February 27, 2018, Service Team Inc issued a 12% Convertible Promissory Note payable to Tangiers Investment Group LLC (the "Investor") in the principal amount of $23,000. The Note, which is due on February 27, 2019, was funded by the Investor in the sum of $20,000 and $3,000 was retained by the Investor through an original issue discount or "OID" for due diligence and legal expense related to this transaction. The Note is convertible into shares of the Registrant's common stock, par value $0.001, at a conversion price of 50% of the lowest trading price of the Company's common stock during the 25 consecutive trading days prior to the date on which Holder elects to convert all or part of the Note. The Company recorded a $20,000 discount due to the beneficial conversion feature and a $3,000 discount due to the original issue discount. During the year ended August 31, 2018, $11,658 of discount amortization was recorded, to result in a remaining debt discount balance of $11,342 as of August 31, 2018. During the three months ended November 30, 2018, the Company amortized $5,750 of the debt discount leaving a remaining balance of $5,592 as of November 30, 2018. Accrued interest at August 31, 2018 and May 31, 2019 was $2,760 and $4,830, respectively.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

Iconic Holdings LLC

On July 10, 2017, the Company issued a convertible note to Iconic Holdings of $34,993 for consideration of certain machine tools. The note bears interest at 10%, matures on July 10, 2018, and is convertible into common stock at 50% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion. The Company recorded a debt discount equal to $31,812 due to this conversion feature. The Company also recorded a $3,181 debt discount due to issuance fees. The note had accrued interest of $1039,~~455~~221 as of November ~~May 31~~30, 2019 and $537,~~206~~ 471 as of August 31, ~~2018~~2019. The debt discounts had a balance ~~at August 31, 2017~~ of $~~25,118 and $~~0 as of August 31, ~~2018~~2019. ~~The Company~~ ~~recorded debt discount amortization expense of $9,875 during the year ended August 31, 2017 and $25,118 during the year ended August 31, 2018.~~ This note is currently in default.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

2218

Crown Bridge Partners, LLC.

On ~~December~~June 2112, ~~2016~~2017, the Company issued a convertible note to Crown Bridge Partners, LLC. for $4263,~~500~~750 of cash consideration. The note bears interest at 6%, matures on ~~December~~June 2112, ~~2017~~2018, and is convertible into common stock at 55% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion. The Company recorded a debt discount equal to $3652,~~000~~600 due to this conversion feature. The Company also recorded a $611,~~500~~150 debt discount due to issuance fees. The note had accrued interest of $02,180 as of ~~August~~November 3130, 2019 ~~2017~~ and $1,817 as of August 31, ~~2018~~2019. The debt discounts had a balance at August 31, ~~2017~~2019 of $~~13,041 and $~~0 ~~at August 31, 2018~~. ~~The~~ This ~~Company recorded debt discount amortization expense of $29,459 during the year ended August 31, 2017 and $13,041 during the~~note ~~year~~is ~~ended~~currently ~~August~~in ~~31, 2018~~default. During the year ended August 31, 2017, $10,954 of principal and $13,502 of interest were converted into shares and during the year ended August 31, 2018, principal of $31,546 and interest of $5,217 was converted into shares; see Note 3 for more information.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

On June 12, 2017, the Company issued a convertible note to Crown Bridge Partners, LLC. for $63,750 of cash consideration. The note bears interest at 6%, matures on June 12, 2018, and is convertible into common stock at 55% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion. The Company recorded a debt discount equal to $52,600 due to this conversion feature. The Company also recorded a $11,150 debt discount due to issuance fees. The note had accrued interest of $1,453 as of May 31, 2019 and $363 as of August 31, 2018. The debt discounts had a balance at August 31, 2017 of $49,777 and $0 at August 31, 2018. The Company recorded debt discount amortization expense of $13,973 during the year ended August 31, 2017 and $49,682 during the year ended August 31, 2018. The Company converted $39,524 in principal and $1,500 in accrued interest into shares during the year ended August 31, 2018; see Note 3 for more information. This note is currently in default.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

Crossover Capital Fund, LLC

On ~~February~~July 1424, 2017, the Company issued a convertible note to Crossover Capital Fund, LLC for $40,000 of cash consideration. The note bears interest at 10%, matures on ~~February~~July 1424, 2018, and is convertible into common stock at 50% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion. The Company recorded a debt discount equal to $3440,000 due to this conversion feature. The ~~Company also recorded a $6,000 debt discount due to issuance fees. The~~ note had accrued interest of $09,428 as of ~~August~~November 3130, ~~2017~~2019 and $7,917 at August 31, ~~2018~~2019. The debt discounts had a balance ~~at August 31, 2017~~ of $~~18,301 and $~~0 at August 31, 2018. ~~The Company~~ This ~~recorded~~note ~~debt~~is ~~discount~~currently ~~amortization~~in ~~expense of $21,699 during the year ended August 31, 2017 and $18,301 during the year ended August 31, 2018~~default. ~~During the year ended August 31, 2018 principal of $32,487 and interest of $1,298 was converted into shares; see Note 3 for more information.~~

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur.

On July 24, 2017, the Company issued a convertible note to Crossover Capital Fund, LLC for $40,000 of cash consideration. The note bears interest at 10%, matures on July 24, 2018, and is convertible into common stock at 50% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion. The Company recorded a debt discount equal to $40,000 due to this conversion feature. The note had accrued interest of $7,355 as of May 31, 2019 and $2,821 at August 31, 2018. The debt discounts had a balance at August 31, 2017 of $35,836 and $0 at August 31, 2018. The Company recorded debt discount amortization expense of $4,164 during the year ended August 31, 2017 and $35,836 during the year ended August 31, 2018. During the year ended August 31, 2018, the Company converted $17,106 in principal and $2,544 of accrued interest into shares; see Note 3 for more information. This note is currently in default.

The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.00005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur

Promissory Notes Payable – Third Party

Forward Financing

On December 11, 2017, the Company issued a promissory note to Forward Financing for $61,405 of cash consideration. The note bears interest at 41%, matures on June 20, 2018. The Company recorded a debt discount equal to $26,579 due to the unpaid interest which was added to the principal balance to be repaid during the 6 month note. During the year ended August 31, 2018, the company amortized $26,579 of the debt discount into interest expense leaving a remaining total debt discount on the note of $0 as of August 31, 2018. During the year ended August 31, 2018, the Company repaid $87,984 in principal on the note in cash leaving a net balance on the note of $0. As of August 31, 2018; this note was repaid in full.

IOU Financial

On March 30, 2018, the Company issued a promissory note to IOU Financial for $120,000 of cash consideration. The note bears interest at 32%, and matures on March 30, 2019. The Company recorded a debt discount equal to $38,630 due to the unpaid interest which was added to the principal balance to be repaid during the 12 month note. During the year ended August 31, 2018, the company amortized $16,299 of the debt discount into interest expense leaving a remaining total debt discount on the note of $22,331 as of August 31, 2018. During the year ended August 31, 2018, the Company repaid $69,206 in principal on the note in cash leaving a balance on the note of $73,200 owed as of August 31, 2018. During the ~~period~~year ended ~~February~~August 2831, 2019, the company amortized $22,331 of the debt discount into interest expense leaving a remaining total debt discount on the note of $0 as of ~~February~~August 2831, 2019. During the ~~period~~year ended ~~February~~August 2831, 2019, the Company repaid $89,424 in principal on the note in cash leaving a balance on the note of $0 owed as of ~~February~~August 2831, 2019.

On January 22, 2019, the Company issued a promissory note to IOU Financial for $75,000 of cash consideration. The note bears interest at 32%, matures on October 23, 2019. The Company recorded a debt discount equal to $16,954 due to the unpaid interest which was added to the principal balance to be repaid during the 9 month note. During the period ended May 31, 2019, the company amortized $7,982 of the debt discount into interest expense leaving a remaining total debt discount on the note of $8,972 as of May 31, 2019. The proceeds of the loan were used to pay $27,244 to IOU Financial to pay the note dated March 30, 2018 in full. And the remaining amount $47,776 was added to working capital. During the period ended May 31, 2019, the Company repaid $45,781 in principal on the note in cash leaving a balance on the note of $46,173 owed as of May 31, 2019.19

On January 22, 2019, the Company issued a promissory note to IOU Financial for $75,000 of cash consideration. The note bears interest at 32%, matures on October 23, 2019. The Company recorded a debt discount equal to $16,954 due to the unpaid interest which was added to the principal balance to be repaid during the 9 month note. During the year ended August 31, 2018, the company amortized $35,836 of the debt discount into interest expense leaving a remaining total debt discount on the note of $0 as of August 31, 2018. The proceeds of the loan were used to pay $27,244 to IOU Financial to pay the note dated March 30, 2018 in full. And the remaining amount $47,776 was added to working capital. During the period ended August 31, 2019, the Company repaid $74,400 in principal on the note in cash leaving a balance on the note of $16,999 owed as of August 31, 2019. The note had interest of $7,917 as of August 31, 2019. This note was paid in full on December 12, 2019.

NOTE 5- RELATED PARTY TRANSACTIONS

Convertible Note Payable – Related Party

Preferred Stock Issued for Services

On ~~December~~July 425, 2017, the Articles of Incorporation were amended to increase the ~~Company~~voting ~~granted 50~~rights of preferred shares to 100,000 ~~additional~~votes ~~Series~~per share. The Series A ~~Preferred~~share ~~Stock~~amendments ~~shares~~valued according to ~~Robert~~the ~~Cashman,~~additional voting rights and dividend rights assigned. The value assigned to the dividend rights was derived from a ~~related~~model ~~party~~utilizing future economic value of the dividends and was $0 which was recorded on the grant date as stock-based compensation. The value assigned to the ~~new~~voting ~~shares~~ rights was derived from a model utilizing control premiums to value the voting control of the preferred stock and was $154,000 which was recorded on the grant date as stock -based compensation.

25On December 4, 2017, the Company granted 50,000 additional Series A Preferred Stock shares to Robert Cashman, a related party. The value assigned to the new shares was derived from a model utilizing control premiums to value the voting control of the preferred stock and was $1,000 which was recorded on the grant date as stock-based compensation.

NOTE 6 – INCOME TAXES

The Company accounts for income taxes under standards issued by the FASB. Under those standards, deferred tax assets and liabilities are recognized for future tax benefits or consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such assets will not be realized through future operations.

No provision for federal income taxes has been recorded due to the net operating loss carry forwards totaling approximately $~~776~~858,~~279~~102 as of November ~~May 31~~30, 2019, that will be offset against future taxable income. The available net operating loss carry forwards will expire in various years through 2035. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the future tax loss carry forwards.

The actual income tax provisions differ from the expected amounts calculated by applying the statutory income tax rate to the Company's loss before income taxes. The components of these differences are as follows at May 31, 2019 and August 31, 2018:20

	5/31/19			8/31/18
Net tax loss carry-forwards	$	776,279		$	896,914
Statutory rate		21	%		21	%
Expected tax recovery		163,019			188,352
Change in valuation allowance		(163,019	)		(188,352	)
Income tax provision	$	—		$	—
Components of deferred tax asset:
Non capital tax loss carry forwards	$	163,019		$	188,352
Less: valuation allowance		(163,019	)		(188,352	)
Net deferred tax asset	$	—		$	—

	11/30/19			8/31/19
Net tax loss carry-forwards	$	858,102		$	844,216
Statutory rate		21	%		21	%
Expected tax recovery		180,201			177,285
Change in valuation allowance	$	(180,201	)	$	(177,285	)
Income tax provision		—			—

Components of deferred tax asset:
Non capital tax loss carry forwards		180,201			177,285
Less: valuation allowance	$	(180,201	)	$	(177,285	)
Net deferred tax asset		—			—

NOTE 7 – COMMITMENTS AND CONTINGENCIES

Litigation

None.

Operating Leases

Service Team Inc. leased ~~leases~~a ~~facilities~~ building at 1818 East Rosslynn Avenue, Fullerton, California, to92834 ~~manufacture~~effective ~~its~~October ~~products~~1, 2015. The ~~facility~~lease is ~~leased~~ for ~~six~~a ~~and~~period ~~one half~~of ~~years~~72 atmonths awith ~~price~~an ofoption ~~$10,000~~to ~~per~~extend ~~month,~~the lease for ~~the~~an ~~first~~additional ~~six~~72 months;. The ~~and,~~new ~~$14~~facility is a 25,000 ~~per~~square ~~month~~foot ~~thereafter~~concrete industrial building located on approximately two acres of land. ~~Service~~This ~~Team~~new ~~Inc~~facility is approximately ~~pays~~double the size of the prior facility. Rent for the ~~fire~~new ~~insurance~~facility ~~and~~is ~~property~~$10,000 ~~taxes~~per onmonth for the ~~building~~first ~~estimated~~six tomonths; beand ~~approximately~~ then $214,000 per month. thereafter. The ~~location~~Company ~~consists of~~is ~~three~~responsible ~~acres~~for ofthe ~~land~~property taxes and ~~one building~~insurance ofon ~~approximately~~the ~~30,000 square feet~~building. As of November ~~May 31~~30, 2019, the deferred rent related to this lease was $97,333 and is included in accrued expenses.

NOTE 8 – SUBSEQUENT EVENTS

~~None~~Except as noted below, management has evaluated subsequent events to the requirements of ASC 855, and there are currently no subsequent events to report.

27On January 22, 2020 the company filed a Form 15 with the Securities and Exchange Commission.

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

Overview of Our Company

Service Team Inc. (the "Company") was incorporated pursuant to the laws of the State of Nevada on June 6, 2011. The Company was organized to comply with the warranty obligations of electronic devices manufactured by companies outside of the United States. The business proved to be unprofitable and the Company eliminated its warranty and repair operations. On June 5, 2013, Service Team Inc. acquired 25,000 common shares of Trade Leasing, Inc., representing 100% ownership, for 4,000,000 shares of its common stock; in addition, both entities are under common control. Trade Leasing, Inc., a California corporation, was incorporated on November 1, 2011, and commenced business January 1, 2012.

Trade Leasing Inc dba Delta Stag Manufacturing is involved in the manufacture and repair of truck bodies. The Company manufactures truck bodies that are attached to a truck chassis which consists of an engine, drive train, a frame with wheels, and in some cases, a cab. The truck chassis is manufactured by third parties that are major automotive or truck companies. These companies do not typically build specialized truck bodies. The company is also involved in other products used by the trucking industry. The company operates a complete manufacturing and repair facility in South Gate, California. The facility manufactures both custom and standard production truck bodies in approximately 70 different models designed to fill the specialized demands of the user. The vans are available for hauling dry freight or refrigerated freight. The refrigerated vans are built with two to four inches of foam insulating that is sprayed in place for hauling refrigerated products such as meats, vegetables, flowers and similar products. The Company installs different types of cooling systems in the trucks. This varies from motor driven units installed outside the van body or refrigeration units driven off the engine of the truck. Some refrigerated trucks use a system called "cold plate" where a large metal plate is cooled by power while the truck is parked. The power is then unplugged and the truck will stay cool for many hours. The Company's customers are auto dealers and users of trucks; such as dairies, food distributors and local delivery. The company has approximately 400 customers. One customer South Bay Ford represented more than 10% of sale in the last 12 months. The company is not dependent on a few major customers. Trade Leasing purchases raw materials from approximately 75 25 suppliers. There are several hundred similar suppliers of comparable materials in the local area. Trade Leasing Inc. purchases refrigeration units from ~~Thermo-king~~ Thermoking Corporation a division of United Technologies and Carrier Corporation, a division of Ingersol Rand Corporation. The two companies represent more than 80% of the refrigeration unit market. There are several other manufactures of refrigeration units that represent a small part of the market. Trade Leasing Inc. employs 3443 factory workers and four management personnel. The management personnel make all of the sales and manage the factory. The company has all of the government licenses necessary to conduct its business. These include 9 different city, county and state licenses covering vehicle transportation, air quality, hazard waste (Paint), land or building use, and sales tax.

2822

Liquidity and Capital Resources

As of ~~May 31~~November 30, 2019, we had assets of $~~614~~568,~~797~~872 including current assets of $~~437~~399,~~953~~438. We have accounts payable of $62109,~~521~~162, and convertible notes payable – third party of $~~133~~136,~~137~~632. Accrued interest and expenses of $~~115~~152,~~179~~908. Accrued expenses are for work performed by employees during the organizational and operational stages of the Company. There is no firm date for which these are to be paid. It is to be repaid when we have funds available. Since inception we have also raised $354,382 from the sale of our common stock. We believe our ability to achieve commercial success and continued growth will be dependent upon our continued access to capital either through additional sale of our equity or cash generated from operations. We will seek to obtain additional working capital through the sale of our securities. We will attempt to obtain additional capital through bank lines of credit; however, we have no agreements or understandings with third parties at this time.

Results of Operations

Three Months Ended ~~May~~November 3130, ~~2019,~~ 2018 compared to the Three Months Ended ~~May~~November 3130, ~~2018~~2017

Sales during the three month period ended ~~May~~November 3130, ~~2019~~2018, were $1993,~~096,983~~889 compared to $~~783~~994,~~139~~625 for the three month period ending ~~May~~November 3130, ~~2018~~2019. Our ~~cost~~ cost of sales for the three month period ending ~~May~~November 3130, ~~2019,~~2018 was $~~802~~717,~~012~~017, compared to $~~658~~824,~~039~~002 for the three month period ending ~~May 31,~~November ~~2018~~30, 2019. Our operating expenses for the three month period ending ~~May~~November 3130, ~~2019~~2018, were $~~160~~130,~~996~~666 compared to $~~143~~178,~~190~~706 for the three month period ending ~~May~~November 3130, ~~2018~~ 2019. We had a net income during the three month period ending November ~~May 31~~30, ~~2019~~2018, of $~~123~~113,~~176~~526; and a net loss of $(~~123~~17,~~566~~165) during the three month period ending ~~May~~November 3130, ~~2018~~2019.

Nine Months Ended May 31, 2019, compared to the Nine Months Ended May 31, 2018

Sales during the nine month period ended May 31, 2019, were $3,010,049 compared to $2,559,473 for the nine month period ending May 31, 2018. Our cost of sales for the nine month period ending May 31, 2019, was $2,373,347 compared to $2,095,230 for the nine month period ending May 31, 2018. Our operating expenses for the nine month period ending May 31, 2019, were $500,170 compared to $504,213 for the nine month period ending May 31, 2018. We had net income during the nine month period ending May 31, 2019, of $74,505; and a net loss of $(365,636) during the nine month period ending May 31, 2018.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not Applicable

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a – 15(c) and 15d – 15(e)). Based upon that evaluation, our principal executive officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer, as appropriate to allow timely decisions regarding required disclosure.

2923

Inherent Limitations of Internal Controls

Our Principal Executive Officer does not expect that our disclosure controls or internal controls will prevent all error and all fraud. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the system are met. 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 if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting, other than those stated above, during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

None

Item 1A. Risk Factors.

Not applicable.

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

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

~~Change of Chief Executive Office~~None

Robert L. Cashman, President, Secretary and Sole Director of Service Team Inc resigned as of May 6, 2019, and Karen J. Fowler was elected President, Secretary and Director of Service Team Inc, effective May 6, 2019. Karen J. Fowler has been employed by Service Team Inc for the past 16 years in several capacities, most recently as Acting Financial Officer.

Item 6. Exhibits.

(a)	The following exhibits are filed with this report.

31.1 Certification by Chief Executive Officer pursuant to Sarbanes Oxley Section 302.

31.2 Certification by Chief Financial Officer pursuant to Sarbanes Oxley Section 302.

32.l Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350.

32.2 Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350.

101 Interactive Data Files

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the ~~Securities~~ Exchange Act ~~of 1934~~, the registrant has duly caused this report to be signed on its behalf by the undersigned ~~thereunto~~, thereunto duly authorized.

	Service Team Inc.
Date July 12, 2019	By:	/s/ Karen J. Fowler
		Karen J. Fowler
		Chief Executive Officer and President Principal Executive Officer
Date July 12, 2019	By:	/s/ Karen J. Fowler
		Karen J. Fowler
		Chief Financial Officer Principal Financial and Accounting Officer

Date: January 22, 2020

SIGNATURE	TITLE	DATE

/s/ Karen J. Fowler	President, Chief Executive Officer	January 22, 2020
	(principal executive officer)

/s/ Karen J. Fowler	Secretary, Chief Financial Officer, Chief Accounting Officer	January 22, 2020

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