Derivatives (Tables)

12 Months Ended

Aug. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The Company calculated the estimated fair values of the liabilities for embedded conversion option derivative instruments at the original note inception date and as of August 31, 2017 using the Black-Scholes option pricing model using the share prices of the Company’s stock on the dates of valuation and using the following ranges for volatility, expected term and the risk-free interest rate at each respective valuation date, no dividend has been assumed for any of the periods:

	Note Inception Date			August 31, 2017

Volatility		313% - 350	%		291	%
Expected Term		0.75 – 0.88 years			0.33 - 0.88 years
Risk Free Interest Rate		1.07% - 1.19	%		1.23	%

Schedule of Initial Fair Value of Note Inception

The following reflects the initial fair value on the note inception date and changes in fair value through August 31, 2017:

Note inception date fair value allocated to debt discount	$	111,004
Change in fair value in 2017		(8,627	)
Embedded conversion option derivative liability fair value on August 31, 2017	$	102,377

PetLife Pharmaceuticals, Inc. 10-K