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On March 1, 2018, the Company acquired all the shares of a company in South Africa, Byrna South Africa (Pty) Ltd. The condensed unaudited interim consolidated financial statements for the period ended February 28, 2019 include the accounts of Security Devices International, Inc., and its subsidiary Security Devices International Canada Corp. and Byrna South Africa (Pty) Ltd. 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SDI has implemented manufacturing partnerships to assist in the deployment of their patented and patent pending family of 40mm and .68 caliber products. 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<td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%">(February 28, 2019)</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="left" bgcolor="#e6efff" width="12%"> <p align="right">&#160; 3,353</p> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%">(February 28, 2018)</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">As of February 28, 2019, the Company has deposits of $225,124 (November 30, 2018-$205,664) with vendors primarily for supply of moulds and equipment. 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The Amendment increased the number of authorized shares of the Company&#8217;s common stock, par value $0.001, from 100,000,000 to 200,000,000 common shares.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 156px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">* On March 21, 2019, the Company filed with the Secretary of the State of Delaware a certificate of amendment (the &#8220;Amendment&#8221;) to the Company&#8217;s certificate of incorporation. The Amendment increased the number of authorized shares of the Company&#8217;s common stock, par value $0.001, from 200,000,000 to 300,000,000 common shares.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 156px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The Company&#8217;s Articles of Incorporation authorize its Board of Directors to issue up to 5,000,000 shares of preferred stock having par value of $0.001. The provisions in the Articles of Incorporation relating to the preferred stock allow the directors to issue preferred stock with multiple votes per share and dividend rights, which would have priority over any dividends paid with respect to the holders of SDI&#8217;s common stock.</p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">b)</td> <td> <p align="justify">Issued</p> </td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 156px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">103,093,442 common shares (November 30, 2018: 101,976,900 common shares)</p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">c)</td> <td> <p align="justify">Changes to Issued Share Capital</p> </td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"><u>Three months ended February 28, 2019</u></p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In January 2019, the Company made a share issuance to Paul Jensen (&#8220;Jensen&#8221;) pursuant to his employment agreement. The Company issued 134,938 common shares at a price of $0.1482 per share to satisfy the payment of $20,000, due January 15, 2019.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In January 2019, the Company made a share issuance to Bryan Ganz (&#8220;Ganz&#8221;) pursuant to a consulting agreement. The Company issued 500,000 common shares at a price of $0.1482 for a total consideration of $74,100, due December 15, 2018.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In January 2019, the Company made a share issuance to a corporation owned and controlled by Dean Thrasher (Thrasher&#8221;), executive chairman of the Company, pursuant to a consulting agreement. The Company issued 180,000 common shares at a price of $0.1482 for a total consideration of $26,676 due January 15, 2018.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In January 2019, the Company made a share issuance to Lisa Wager (&#8220;Wager&#8221;), the Chief Legal Officer (&#8220;CLO&#8221;), pursuant to a consulting agreement. The Company issued 166,666 common shares at a price of $0.1482 for a total consideration of $24,700, due January 15, 2019.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In January 2019, the Company made a share issuance to Andr&#233; Buys (&#8220;Buys&#8221;), the Chief Technology Officer (&#8220;CTO&#8221;), pursuant to a consulting agreement. The Company issued 134,938 common shares at a price of $0.1482 per share to satisfy the payment of $19,998 due January 15, 2019.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"><u>Year ended November 30, 2018</u></p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In March 2018, the Company made a share issuance to Northeast Industrial Partners (&#8220;NEIP&#8221;) pursuant to a consulting agreement. SDI issued 507,550 common shares at a price of $0.1231 per share to satisfy the payment of $62,500 due in December 2017.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In March 2018, the Company made a share issuance to Jensen pursuant to his employment agreement. SDI issued 339,370 common shares at a price of $0.1473 per share to satisfy the payment of $50,000, due January 15, 2018.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In May 2018, the Company made a share issuance to Jensen pursuant to his employment agreement. SDI issued 334,154 common shares at a price of $0.1496 per share to satisfy the payment of $50,000, due April 15, 2018.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In July 2018, the Company made a share issuance to Jensen pursuant to his employment agreement. SDI issued 298,880 common shares at a price of $0.1673 per share to satisfy the payment of $50,000, due July 15, 2018.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In November 2018, the Company made a share issuance to Jensen pursuant to his employment agreement. SDI issued 136,146 common shares at a price of $0.1469 per share to satisfy the payment of $20,000, due October 15, 2018.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In November 2018, the Company made a share issuance to Ganz pursuant to a consulting agreement. SDI issued 500,000 common shares at a price of $0.1451 per share for a total consideration of $72,573 to satisfy the payment for services for the fiscal third quarter.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In November 2018, the Company made a share issuance to a corporation owned by Thrasher under the consulting agreement. SDI issued 180,000 common shares at a price of $0.1533 per share for a total consideration of $27,600 due September 15, 2018.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">In November 2018, the Company made a share issuance of 6,666,666 common shares to FinTekk AP, LLC (&#8220;FinTekk&#8221;) at a price of $0.15 per share. The shares are issued pursuant to a debt settlement agreement, to retire certain debt owing by the Company to FinTekk, in connection with a sponsorship agreement (the &#8220;Sponsorship Agreement&#8221;). The Sponsorship Agreement details a marketing campaign for the launch of the Company&#8217;s new Byrna^TM&#160;HD product over the 2018 and 2019 fiscal years. The Company recognized $750,000 as a prepaid expense as at November 30, 2018 (See note 13).</p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td valign="top" width="5%">5.</td> <td> <p align="justify">STOCK BASED COMPENSATION AND WARRANTS</p> </td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Effective May 31, 2013, the Company adopted an incentive stock option plan (the &#8220;2013 Stock Option Plan&#8221;) which replaced the prior stock option and stock bonus plans, as ratified by the Company&#8217;s shareholders at the Company&#8217;s 2015 annual meeting of shareholders. A maximum of 9,379,857 common shares were reserved for issuance under the 2013 Stock Option Plan.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The Board approved a revised stock option plan (the &#8220;Revised Stock Option Plan&#8221;) and received stockholder approval at the annual meeting held on December 19, 2017, that will increase the number of shares reserved for issuance under the stock option plan from 9,379,857 to 18,993,274.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The material terms of the Revised Stock Option Plan are as follows:</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(a) While the shares are listed on the CSE, options may be granted to employees, senior officers, directors and consultants of the Company or a subsidiary of the Company and to corporations wholly-owned by such an employee, senior officer, director or consultant.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(b) The maximum number of common shares which can be issued under the Revised Stock Option Plan will be 18,993,274: provided that, so long as the Company is listed on the CSE, this maximum will be reduced to 20% of the issued and outstanding common shares on December 19, 2017.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(c) The term of any option granted under the Revised Stock Option Plan will be fixed by the board of directors at the time such option is granted, provided that options will not be permitted to exceed a term of ten years.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(d) The exercise price of any options granted under the Revised Stock Option Plan will be determined by the board of directors, in its sole discretion, but shall not be less than the closing price of the shares on the stock exchange on the day preceding the day on which the directors grant such options.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(e) While the shares are listed on the CSE, options will be non-assignable and non-transferable.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(f) So long as the shares are listed on the CSE, options on no more than 2% of the issued shares may be granted to any one consultant, or in aggregate to all persons performing investor relations activities, in any 12-month period.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(g) If the option holder ceases to be someone eligible to receive a grant of options under the Revised Stock Option Plan, then that holder&#8217;s existing options shall expire on the earlier of (i) the expiry date fixed at the time of the option grant, and (ii) ninety days after the date that the option holder ceases to be eligible to receive a grant of options under the Revised Stock Option Plan.</p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="5%"></td> <td> <p align="justify"><u>Year ended November 30, 2018</u></p> </td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%"></td> <td> <p align="justify"><u>Warrants</u></p> </td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%"></td> <td> <p align="justify">On October 22, 2018, the Company entered into a securities purchase agreement with several accredited investors to sell $1,275,000 of units at a price of $1,000 per unit, consisting of (i) $1,000 10% interest unsecured convertible promissory note, convertible into the Company&#8217;s common stock at a conversion price of $0.15 per share (see note 14(c)), and (ii) four thousand warrants each exercisable for one share of common stock at an exercise price of $0.25 per share on or before the five year anniversary of the issuance. The Company issued 5,100,000 warrants. The relative grant date fair value of these warrants was estimated at $524,089 using the Binomial lattice option pricing model and reflected in additional paid-in capital, with the following assumptions:</p> </td> </tr> </table> <div>&#160;</div> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Risk free rate</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%">3.05%</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Expected dividends</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%">0%</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Expected volatility</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%">159%</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Expected life</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%">5 years</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Market price of the Company&#8217;s common stock on date of grant of options</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">&#160;0.14</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"><u>Stock Options</u></p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">On March 27, 2017, the board of directors granted options to Dean Thrasher to acquire a total of 1,150,000 common shares. These options were issued at an exercise price of CAD $0.13 ($0.10) per share and vest thirty-three and one-third (33 1/3) percent every six months commencing January 1, 2017, with an expiry term of five years. The Company expensed stock-based compensation expense of $39,046 regarding the vesting of options during the year ended November 30, 2018, leaving a balance of $nil as unvested stock- based compensation expense.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">On April 13, 2018, the board of directors granted 1,500,000 options for shares of the Company&#8217;s common stock to the Chief Technology officer (&#8220;CTO&#8221;), Buys, with exercise price of $0.16 and a trigger price of $0.30, $0.50 and $1.00 for each batch of 500,000 options, respectively. The Company&#8217;s stock price must close above the trigger price for 20 days in order for the option to be vested. The options shall have a seven-year life from grant date and Buys must remain employed by the Company for three years for the options to vest. 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The incentive warrants shall have a three-year life. These warrants were issued pursuant to the contracts executed with these two consultants. 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The Company expensed stock-based compensation expense of $4,227 during the three-month period ended February 28, 2019.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 58px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">As of February 28, 2019, there was $110,582 of unrecognized expense related to non-vested stock-based compensation arrangements granted.</p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0"> <tr> <td valign="top" width="5%">6.</td> <td> <p align="justify">RELATED PARTY TRANSACTIONS</p> </td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The following transactions are in the normal course of operations and are measured at the amount of consideration established and agreed to by related parties.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"><u>Three months ended February 28, 2019</u></p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">As of February 28, 2019, there are no amounts receivable from related parties.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">As of February 28, 2019, the Company had a payable of $108,711 to related parties which is unsecured, non-interest bearing and due on demand. This payable is included in accounts payable and accrued liabilities.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Effective as of October 1, 2017, the Company entered into an employment agreement (the &#8220;Employment Agreement&#8221;) with Jensen pursuant to which Jensen serves as President and Chief Operating Officer (&#8220;COO&#8221;) and effective July 13, 2018 serves as Chief Executive Officer (&#8220;CEO&#8221;) of the Company. Jensen resigned as CEO of the Company effective April 1, 2019 (See note 14 (b)). By the terms of the Employment Agreement, Jensen will receive an annual salary of $200,000, payable as follows. For the period beginning on October 1, 2017 and ending on June 30, 2018, Jensen shall receive quarterly payments of the Company&#8217;s common stock, to be issued 15 days after the end of each three-month quarter. Commencing July 1, 2018, the Company will pay $10,000 per month in cash and the balance in Company common stock. At such time as the Company can pay the entire salary in cash and be cash positive on an operating basis, the entire monthly salary will be paid in cash. The Company expensed $50,000 for the services for the three months ended February 28, 2019, which includes $6,667 for issuance of 44,980 common shares for services and an accrual for $13,333 for issuance of proportionate shares, in accordance with the consulting contract (See notes 4 and 7).</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The Company expensed $20,000 for services provided by Rakesh Malhotra, Chief Financial Officer (&#8220;CFO&#8221;) of the Company which was paid to a corporation in which the CFO has an ownership interest, pursuant to the consulting contract (See note 7).</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The Company expensed $35,700, which includes an accrual for $25,200 for the issuance of 180,000 common shares for services, pursuant to a consulting contract, for services provided by Thrasher. This was paid to a corporation in which Thrasher has an ownership interest. (See notes 4 and 7).</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">On April 13, 2018, the Company employed Buys as the CTO with compensation of $10,000 per month over a three-year period. The Company expensed $30,000 during the three months ended February 28, 2019. On April 13, 2018, the Company granted options to Buys to acquire a total of 1,500,000 common shares. The Company expensed $4,227 for the value of options which vested during this period. (See notes 4, 5 and 7)</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Effective June 1, 2018 the Company entered into a consulting agreement with Ganz pursuant to which Ganz serves as President of the Company. By the terms of the consulting agreement, Ganz will be paid annually $200,000 in the Company&#8217;s common shares for his services. The Company accrued expense for $50,000 for issuance of proportionate shares, in accordance with the consulting contract (See notes 4 and 7).</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Effective December 1, 2017, the Company leased office premises at Wakefield, Massachusetts, USA for rent of $700 plus services per month from a corporation owned and controlled by a director of the Company. The Company expensed $4,383 as office rent plus services for the three months ended February 28, 2019. 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Amounts due to related parties are unsecured, non-interest bearing and due on demand.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Effective as of October 1, 2017, the Company entered into an employment agreement with Paul Jensen pursuant to which Mr. Jensen serves as President and Chief Operating Officer of the Company. By the terms of the Employment Agreement, Mr. Jensen will receive an annual salary of $200,000, payable as follows. For the period beginning on October 1, 2017 and ending on June 30, 2018, Mr. Jensen shall receive quarterly payments of the Company&#8217;s common stock, to be issued 15 days after the end of each three-month calendar quarter.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The Company expensed $19,380 for services provided by the CFO of the Company which was paid to a corporation in which the CFO has an ownership interest, in accordance with the consulting contract. The Company expensed $40,380 (CAD $50,000) for services provided by the CEO of the Company and which was paid to a corporation in which the CEO has an ownership interest, in accordance with the consulting contract.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">On March 27, 2017, the board of directors had granted options to the CEO to acquire a total of 1,150,000 common shares. The Company expensed $16,734 for fair value of options which vested during this period.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Effective December 1, 2017, the Company leased office premises at Wakefield, Massachusetts, USA for a rent of $700 per month from a corporation owned and controlled by a director of the Company. The Company expensed $2,100 as lease rent for the quarter ended February 28, 2018.</p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td valign="top" width="5%">7.</td> <td> <p align="justify">COMMITMENTS</p> </td> </tr> </table> <div>&#160;</div> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">a)</td> <td> <p align="justify">Consulting agreements:</p> </td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The non-independent directors of the Company executed consulting agreements with the Company on the following terms:</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The Company executed a consulting agreement effective July 1, 2018 with a corporation owned by the executive chairman. The contract, unless renewed expires on March 31, 2019. During the service term, the Company will pay $3,500 per month and in addition, issue 180,000 common shares of the Company on a quarterly basis until the end of the term. Each quarterly installment is due the 15^th&#160;day of the following month after the quarter. The common shares will be priced at the volume weighted average trading price per common share over the 20-day period proceeding the due date.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Effective as of October 1, 2017, the Company entered into an employment agreement (the &#8220;Employment Agreement&#8221;) with Jensen pursuant to which Jensen serves as President and COO of the Company. By the terms of the Employment Agreement, Jensen will receive an annual salary of $200,000, payable as follows. For the period beginning on October 1, 2017 and ending on June 30, 2018, Jensen shall receive quarterly payments of the Company&#8217;s common stock, to be issued 15 days after the end of each three-month quarter. The shares issued shall be valued based upon the weighted average closing price of the Company&#8217;s shares for the twenty (20) trading days prior to the end of the applicable quarter. Commencing July 1, 2018, the Company will pay $10,000 per month in cash and the balance in Company stock. At such time as the Company can pay the entire salary in cash and be cash positive on an operating basis, the entire monthly salary will be paid in cash.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">On April 13, 2018, the Company entered into a Purchase and Sale Agreement (the &#8220;Agreement&#8221;) with Andr&#233; Buys, (&#8220;Buys&#8221;) a resident of South Africa, pursuant to which the Company purchased from Buys a portfolio of registered patent rights and other intellectual property relating to air and/or gas fired long guns or pistols, including pump action launchers and munitions used with such pistols and long guns, including self-stabilizing shaped or &#8220;finned&#8221; rounds (the &#8220;Portfolio&#8221;). As consideration for the Portfolio, the Company (i) paid Buys $100,000, (ii) agreed to pay Buys either $500,000 in cash or $750,000 worth of Company stock within two years (the &#8220;Second Payment&#8221;) at Buys&#8217; discretion and (iii) agreed to pay Buys certain royalty payments for sales of products by the Company using technology covered by the Portfolio. In addition, the Company employed Buys as the CTO and for services issued 1,500,000 options for shares of the Company&#8217;s common stock to Buys with a strike price of $0.16 and a trigger price of $0.30, $0.50 and $1.00 for each batch of 500,000 options, respectively. The Company&#8217;s stock price must close above the trigger price for 20 days in order for the option to be triggered. The options shall have a seven-year life from grant date and Buys must remain employed by the Company for three years in order for the options to vest. Until the earlier of, the second anniversary or the date the Second Payment is made, the royalty will be 10% of the Net Sales Price (&#8220;NSP&#8221;). The royalty will then be reduced to 4% till the sixth anniversary, 3% till the eighth anniversary, and 2% till the last expiration date of any of the intellectual property in the Portfolio. Until the royalty exceeds $25,000 per year, the Company is committed to a minimum payment of $25,000 per year effective on the earlier of one year from closing or upon Buys relocation to Boston. In the event that the Company fails to make the Second Payment, the Portfolio would revert to Buys, but the Company would retain perpetual, irrevocable, exclusive and non-exclusive licenses to use technology with respect to the Portfolio and any technology developed within two years of April 13, 2018. As the substance of the purchase and sale agreement has been determined to be an option agreement, the Company has not recorded any amount related to the Second Payment. The Company agrees that it will not terminate Buys except for cause prior to April 2021. As a result, the minimal commitment relating to the employment contract is $320,000 payable over a period of 32 months.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Effective June 1, 2018, the Company entered into a consulting agreement with Ganz pursuant to which Ganz serves as President of the Company. By the terms of the consulting agreement, Ganz will be paid annually $200,000 in the Company&#8217;s common shares for his service, subject to stock exchange approval. The common shares shall be issued quarterly, ending March 31, 2019. For the Company&#8217;s 2018 fiscal third and fourth quarter the President shall be paid 500,000 common shares for each quarter. Commencing in the three months ended February 28, 2019, Ganz will be issued an ongoing 250,000 common shares every quarter for his services.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Effective November 1, 2018, the Company entered into consulting agreements (the &#8220;Consulting Agreements&#8221;) with two consultants. The consultants will each be paid $7,500 per month commencing November 1, 2018 and to be increased to $10,000 per month subsequent to the month the Company begins shipping the Byrna HD product to customers. The term of the contracts with the consultants continue until December 31, 2019.</p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">b)</td> <td> <p align="justify">Lease commitments</p> </td> </tr> </table> <div>&#160;</div> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">1.</td> <td> <p align="justify">The Company has commitments for leasing office premises in Wakefield, Massachusetts, USA to June 27, 2019, at a monthly rent of $700 (See note 6).</p> </td> </tr> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">2.</td> <td> <p align="justify">The Company has commitments for leasing warehouse space in Fort Wayne, Indiana, USA to February 28, 2020, at a monthly rent of $2,472.</p> </td> </tr> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">3.</td> <td> <p align="justify">The Company has commitments for leasing office premises in Pretoria East, South Africa to December 19, 2020, at a monthly rent of $1,050 (Rand 14,750).</p> </td> </tr> </table> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0"> <tr> <td valign="top" width="5%">8.</td> <td> <p align="justify">EXCLUSIVE SUPPLY AND PURCHASE AGREEMENTS</p> </td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%"></td> <td> <p align="justify">The Company entered a Development, Supply and Manufacturing Agreement with the BIP manufacturer on August 1, 2017. This agreement provides the Company to order and purchase only from the BIP manufacturer certain BIP assemblies and components for use by the Company to produce less-lethal and training projectiles as described in the agreement in North America. The agreement is for a term of four years with an automatic extension for additional one- year terms if neither party has given written notice of termination at least sixty (60) days prior to the end of the then- current term.</p> </td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%"></td> <td> <p align="justify">The Company entered a License and Supply Agreement with Safariland, LLC on May 1, 2017. This agreement provides the Company to license and sell only to Safariland, LLC for certain BIP standard payloads for integration with and production of certain less-lethal impact munitions in North America. This agreement is for a term of four years with an automatic extension for an additional one-year term if neither party have given written notice of termination at least ninety (90) days prior to the end of the then-current term.</p> </td> </tr> </table> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td valign="top" width="5%">9.</td> <td> <p align="justify">CONVERTIBLE DEBENTURES AND DEFERRED FINANCING COSTS</p> </td> </tr> </table> <div>&#160;</div> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="10%">&#160;</td> <td valign="top" width="5%"><b><i>a)</i></b></td> <td> <p align="justify"><b><i>Secured Convertible Debentures $1,019,374 (November 30, 2018: $978,361)</i></b></p> </td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The CAD$1,363,000 ($1,015,026) of Series B Secured Convertible Debentures (Subordinate Secured Debentures) were issued pursuant to the Trust Indenture agreement dated December 7, 2016 (the &#8220;Indenture&#8221;) in exchange for the Unsecured Debentures in equal principal amount and an additional CAD$36,000 ($26,809) of Series B Secured Convertible Debentures were issued pursuant to the Indenture in payment of accrued interest. These debentures mature on June 6, 2019 and bear interest at 12% per annum, payable semi-annually. The debentures are secured by all the assets of the Company. The principal amount, plus accrued interest, may be converted at the option of the holder at any time during the term to maturity into shares of the Company&#8217;s common stock at a conversion price of $0.24 (CAD $0.31) per share subject to anti-dilution protection with a minimum conversion price of $0.135 and for capital reorganization events. The debentures also embody certain traditional default provisions that are linked to credit or interest risks, such as bankruptcy proceedings, liquidation events and corporate existence. The Company has concluded that the embedded conversion option is not indexed to its stock because it did not pass all eight conditions of equity classification provided in ASC 815. The embedded conversion option is subject to classification in the financial statements in liabilities at fair value both at inception and subsequently.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The Company has evaluated the terms and conditions of the debentures under the guidance of ASC 815. All three criteria under ASC 815-15-25-1 are met, therefore, the conversion feature requires classification and measurement as derivative financial instruments. Accordingly, the evaluation resulted in the conclusion that this derivative financial instrument requires bifurcation and liability classification, at fair value. Current standards contemplate that the classification of financial instruments requires evaluation at each report date.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The following table reflects the allocation of the purchase on December 7, 2016:</p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Secured convertible cotes</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%">Face Value</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff">(CAD $1,399,000)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="12%">&#160;1,041,835</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Proceeds</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%">1,041,835</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Embedded derivative</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%">(285,612</td> <td align="left" bgcolor="#e6efff" width="2%">)</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Carrying value</td> <td align="left" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" width="12%">&#160;756,223</td> <td align="left" width="2%">&#160;</td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The carrying value of these debentures at February 28, 2019 is CAD $1,342,342 ($1,019,374) and at November 30, 2018 is CAD $1,301,359 ($978,361).</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Discounts (premiums) on the convertible notes arise from (i) the allocation of basis to other instruments issued in the transaction, (ii) fees paid directly to the creditor and (iii) initial recognition at fair value, which is lower than face value. Discounts (premiums) are amortized through charges (credits) to interest expense over the term of the debt agreement. Amortization of debt discounts (premiums) amounted to CAD $40,983 ($30,786) during the three months ended February 28, 2019 and CAD$36,202 ($28,748) during the prior three months ended February 28, 2018. During the three months ended February 28, 2019, the Company recorded interest expense for $31,096 (February 28, 2018: $32,872).</p> <div>&#160;</div> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%"><b><i>b)</i></b></td> <td> <p align="justify"><b><i>Convertible Notes $239,149 (November 30, 2018: $167,077)</i></b></p> </td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">On October 22, 2018, the Company entered into a Securities Purchase Agreement with several accredited investors to sell $1,275,000 of units, with each $1,000 of unit consisting of (i) a $1,000 10% interest unsecured convertible promissory note (collectively the &#8220;Notes&#8221;) due April 15, 2020, convertible into the Company&#8217;s common stock at a conversion price of $0.15 per share, and (ii) four thousand (4,000) warrants each exercisable for one share of common stock at an exercise price of $0.25 per share on or before the five year anniversary of the issuance. The notes are secured secondary by all of the Company assets and accrue interest at 10% per annum, payable in cash at maturity. However, the principal amount, plus accrued interest, may be converted at the option of the holder at any time during the term to maturity into shares of common stock at a conversion price of $0.15 per share subject to anti-dilution protection. The note embodies certain traditional default provisions that are linked to credit or interest risks, such as bankruptcy proceedings, liquidation events and corporate existence. The Company concluded that the embedded conversion option is not indexed to the Company&#8217;s stock because it did not pass all eight conditions of equity classification provided in ASC 815. Therefore, the embedded conversion option is subject to classification in the financial statements in liabilities at fair value both at inception and subsequently.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">The Company evaluated the terms and conditions of the Notes under the guidance of ASC 815. All three criteria under ASC 815-15-25-1 are met, therefore, the conversion feature requires classification and measurement as derivative financial instruments. Accordingly, the evaluation resulted in the conclusion that this derivative financial instrument requires bifurcation and liability classification, at fair value. 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The relative fair value of these warrants was estimated at $524,089 using the Binomial Lattice option pricing model and reflected in additional paid-in capital. Discounts (premiums) on the convertible notes arise from (i) the allocation of basis to other instruments issued in the transaction, (ii) fees paid directly to the creditor and (iii) initial recognition at fair value, which is lower than face value. Discounts (premiums) are amortized through charges (credits) to interest expense over the term of the debt agreement. Amortization of debt discounts (premiums) amounted to $72,072 during the three months ended February 28, 2019 (February 28, 2018: $Nil) resulting in the carrying value of convertible notes at $239,149 as at February 28, 2019 (November 30, 2018: $167,077). 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text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"><b><i>Fair Value Considerations</i></b></p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. 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text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0"> <tr> <td valign="top" width="5%">12.</td> <td> <p align="justify">PATENT RIGHTS</p> </td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Seven patent applications, six non-provisional and one provisional, have been filed by the Company with the U.S. Patent Office. The Patents have been granted on the six non-provisional patents. The Company also owns the trademark for &#8216;BIP&#8217;.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Non-Provisional (Granted Patents):</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(a) Less-lethal Projectile: This issued patent relates to the Company&#8217;s distinctive collapsible ammunition head technology that absorbs kinetic energy of the projectile upon impact. The Corporation&#8217;s collapsible head is used in both the BIP and the Wireless Electric Projectile (&#8220;WEP&#8221;).</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(b) Electronic Circuitry for Incapacitating a Living Target: This issued patent relates to the electronic circuitry incapacitation system which forms part of the WEP. The patent describes an electronic circuit which provides an electrical incapacitation current to a living target.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(c) Less-lethal Wireless Stun Projectile System for Immobilizing a Target by Neuro-Muscular Disruption: This issued patent describes the process by which the WEP operates with its attachment system to halt a target through a neuro-muscular-disruption system.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(d) Autonomous Operation of a Less-lethal Projectile: This patent describes a motion sensing system within the WEP. The sensor will monitor movement of the target and enable the electrical output until the target is subdued. The electrical pulse is programmed for an exact time-frame to specifications of the user.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(e) Projectile: This invention relates to a non-lethal projectile to be fired using a paintball gun, and more particularly, but not exclusively, to an aerodynamic non-lethal projectile which is used for marking, inhibiting or administering medicinal or other chemical substances to live targets.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">(f) Payload Carrying Arrangement for a Non-Lethal Projectile: This patent relates to the process of carrying liquid and powder payloads in the head of the BIP munitions that upon impact release from the head and are dispersed upon the target.</p> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">On April 13, 2018, the Company entered into a purchase and sale agreement with Andr&#233; Buys, pursuant to which the Company agreed to purchase from Mr. Buys a portfolio of registered patent rights, provisional patent rights, and other intellectual property relating to air and/or gas fired long guns or pistols, including pump action launchers and munitions used with such pistols and long guns, including self-stabilizing shaped or &#8220;finned&#8221; rounds (the &#8220;Portfolio&#8221;). As consideration for the portfolio, the Company paid Buys $100,000, and incurred $10,000 in legal costs to transfer these patent rights. This consideration of $110,000 has been capitalized. The Company also agreed to pay Buys either $500,000 in cash or $750,000 worth of Company stock within two years (the &#8220;Second Payment&#8221;) at Buys&#8217; discretion. In the event that the Company fails to make the Second Payment, the Portfolio would revert to Buys, but the Company would retain perpetual, irrevocable, exclusive and non-exclusive licenses to use technology with respect to the Portfolio and any technology developed within two years of April 13, 2018. As the substance of the purchase and sale agreement has been determined to be an option agreement, The Company has not recorded any amount related to the Second Payment. These patent rights have a maximum life of 20 years, expiring on various dates beginning in November 2033 to 2038, and are amortized straight-line commencing June 2018 over a period of 15 years being the estimated useful life, as determined by management. The Company amortized $1,833 during the three months ended February 28, 2019 (February 28, 2018: $nil). As the full arrangement included an option for full acquisition of the rights, conditional upon certain future events taking place, the Company has recorded the minimum rights to a licence arrangement as patent rights. As at February 28, 2019, the amount recorded as Patent rights refer to the perpetual, irrevocable, exclusive and non-exclusive license to use technology with respect to the portfolio.</p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td valign="top" width="5%">14.</td> <td> <p align="justify">SUBSEQUENT EVENTS</p> </td> </tr> </table> <div>&#160;</div> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">a)</td> <td> <p align="justify">On April 1, 2019 the Company made a share issuance to Ganz, the Company's President pursuant to his consulting agreement dated June 1, 2018. The Company issued 333,333 common shares for the term December 1, 2018 to March 31, 2019 for his services. The Company also issued shares to a corporation controlled by Thrasher, pursuant to his consulting agreement dated June 1, 2018. The Company issued 180,000 common shares for the term January 1, 2019 to March 31, 2019 for his services. The Company also issued 250,000 shares to Wager, for her services from January through March of 2019.</p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">b)</td> <td>The Company announced the following management changes. Jensen resigned effective April 1, 2019 as CEO. He will remain a director. Thrasher, who served as Executive Chairman and Corporate Secretary of the Board resigned effective April 1, 2019 from these positions. He will remain a director. Ganz, the Company's President, assumed the title and responsibilities of CEO effective April 1, 2019, and will continue to serve as Chairman of the Board. Wager, who was appointed effective October 29, 2018 as the Company's General Counsel and Chief Legal Officer, will continue to serve in those capacities and is also appointed as Corporate Secretary to take over those responsibilities from Thrasher effective April 1, 2019.</td> </tr> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">c)</td> <td> <p align="justify">See note 4.</p> </td> </tr> </table> <div align="right" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"> <table style="width: 95%; border-collapse: collapse; font-size: 10pt; border: 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style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="12%">&#160;</td> <td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="12%">113,418</td> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> <td width="1%">&#160;</td> <td width="12%">&#160;</td> <td width="2%">&#160;</td> <td width="1%">&#160;</td> <td width="12%">&#160;</td> <td width="2%">&#160;</td> <td width="1%">&#160;</td> <td width="12%">&#160;</td> <td width="2%">&#160;</td> <td width="1%">&#160;</td> <td width="12%">&#160;</td> <td width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Depreciation expense for three- month period</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="left" bgcolor="#e6efff" width="12%"> <p align="right">&#160; 9,178</p> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%">(February 28, 2019)</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="left" bgcolor="#e6efff" width="12%"> <p align="right">&#160; 3,353</p> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%">(February 28, 2018)</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> </table> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: 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align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Expected volatility</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%">190%</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Expected life</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%">7 years</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Market price of the Company&#8217;s common stock on date of grant of options</td> <td align="left" width="1%">$</td> <td align="right" width="12%">&#160;0.15</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Stock-based compensation cost expensed during the year</td> <td align="left" bgcolor="#e6efff" 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width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Expected life</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%">5 years</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Market price of the Company&#8217;s common stock on date of grant of options</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">&#160;0.14</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> </table> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr valign="top"> <td 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width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Expected life</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%">3 years</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Market price of the Company&#8217;s common stock on date of grant of warrants</td> <td align="left" width="1%">$</td> <td align="right" width="12%">&#160;0.16</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Stock-based compensation cost expensed</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">&#160;119,440</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Unvested stock-based compensation expense</td> <td align="left" width="1%">$</td> <td 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width="12%">&#160;1,041,835</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Proceeds</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%">1,041,835</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Embedded derivative</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%">(285,612</td> <td align="left" bgcolor="#e6efff" width="2%">)</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Carrying value</td> <td align="left" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" width="12%">&#160;756,223</td> <td align="left" width="2%">&#160;</td> </tr> </table> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; 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width="12%">&#160;</td> <td align="right" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Derivative liability-convertible promissory notes</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">&#160;(619,364</td> <td align="left" bgcolor="#e6efff" width="2%">)</td> </tr> <tr> <td align="left">&#160;</td> <td align="right" width="1%">&#160;</td> <td align="right" width="12%">&#160;</td> <td align="right" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Additional paid in capital (equity warrants)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%">&#160;(524,089</td> <td align="left" bgcolor="#e6efff" width="2%">)</td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; 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align="left" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="border-bottom: #000000 2px solid;">Financings giving rise to derivative financial instruments</td> <td align="left" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="16%">Shares</td> <td align="left" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="16%">Fair Value</td> <td align="left" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Convertible Secured Debentures December 7, 2016</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="16%">8,044,853</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="16%">&#160;191,596</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left">Convertible Notes October 22, 2018</td> <td align="left" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 1px solid;" width="16%">8,500,000</td> <td align="left" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 1px solid;" width="16%">372,006</td> <td align="left" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="16%">16,544,853</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="16%">&#160;563,602</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The components of the embedded derivative as of November 30, 2018 are:</p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr valign="top"> <td align="left">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="left" width="16%">Indexed</td> <td align="left" width="1%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="left" width="16%">&#160;</td> <td align="left" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="border-bottom: #000000 2px solid;">Financings giving rise to derivative financial instruments</td> <td align="left" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="16%">Shares</td> <td align="left" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="16%">Fair Value</td> <td align="left" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Convertible Secured Debentures December 7, 2016</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="16%">8,044,853</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="16%">&#160;426,016</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left">Convertible Notes October 22, 2018</td> <td align="left" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 1px solid;" width="16%">8,500,000</td> <td align="left" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 1px solid;" width="16%">531,285</td> <td align="left" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="16%">16,544,853</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="16%">&#160;957,301</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> </tr> </table> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr valign="top"> <td align="left" style="border-bottom: #000000 2px solid;">&#160;Convertible secured debentures December 7, 2016</td> <td align="left" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 2px solid;" width="16%">February 28, 2019</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 2px solid;" width="16%">November 30, 2018</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> </tr> <tr> <td>&#160;</td> <td width="1%">&#160;</td> <td width="1%">&#160;</td> <td width="16%">&#160;</td> <td width="1%">&#160;</td> <td width="1%">&#160;</td> <td width="16%">&#160;</td> <td width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff">Derivative financial instruments</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="16%">&#160;191,596</td> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="16%">426,016</td> <td align="left" style="border-bottom: #000000 1px solid;" 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width="1%">&#160;</td> <td align="right" width="16%">0.27</td> <td align="left" width="1%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="16%">0.52</td> <td align="left" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Risk free rate</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="16%">2.45%</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="16%">2.52%</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> </tr> </table> <div>&#160;</div> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr valign="top"> <td align="left" style="border-bottom: #000000 2px solid;">&#160;Convertible notes October 22, 2018</td> <td align="left" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 2px solid;" width="16%">February 28, 2019</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 2px solid;" width="16%">November 30, 2018</td> <td align="left" style="border-bottom: #000000 2px solid;" width="1%">&#160;</td> </tr> <tr> <td>&#160;</td> <td width="1%">&#160;</td> <td width="1%">&#160;</td> <td width="16%">&#160;</td> <td width="1%">&#160;</td> <td width="1%">&#160;</td> <td width="16%">&#160;</td> <td width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff">Derivative financial instruments</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="16%">&#160;372,006</td> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="16%">&#160;531,285</td> <td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e6efff" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left">Conversion price</td> <td align="left" width="1%">&#160;</td> <td align="left" width="1%">$</td> <td 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align="left" width="1%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Risk free rate</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="16%">2.54%</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="16%">2.70%</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> </tr> </table> <div>&#160;</div> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="5%"></td> <td> <p align="justify"><u>Quarter ended 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width="2%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 1px solid;" width="12%">Total</td> <td align="left" style="border-bottom: #000000 1px solid;" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Sales</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="12%">&#160;11,146</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="12%">&#160;1,177</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="12%">&#160;12,323</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="2%">&#160;</td> </tr> </table> <p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;"><u>Quarter ended February 28, 2018</u></p> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; 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valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">Sales</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="12%">&#160;28,108</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="12%">&#160;230</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="12%">&#160;28,338</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="2%">&#160;</td> </tr> </table> <div>&#160;</div> <table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0"> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 1px solid;" width="12%">2019</td> <td align="left" style="border-bottom: #000000 1px solid;" width="2%">&#160;</td> <td align="left" style="border-bottom: #000000 1px solid;" width="1%">&#160;</td> <td align="right" style="border-bottom: #000000 1px solid;" width="12%">2018</td> <td align="left" style="border-bottom: #000000 1px solid;" width="2%">&#160;</td> </tr> 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width="12%">&#160;27,770</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="1%">$</td> <td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="12%">&#160;2,657,085</td> <td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e6efff" width="2%">&#160;</td> </tr> </table> 180000 44980 180000 0.0935 0.1473 0.1231 0.1496 0.1673 0.1469 0.1451 0.1533 0.15 0.1482 0.1482 0.1482 0.1482 0.1482 40380 50000 19380 6667 50000 62500 50000 50000 20000 20000 19998 72573 27600 74100 26676 24700 500000 1150000 1150000 1150000 1500000 1500000 650000 400000 250000 0.10 0.13 0.10 0.13 0.16 0.14 0.19 0.14 0.19 0.14 0.19 39046 40159 40159 74650 4227 0.30 0.50 1.00 0.30 0.50 1.00 10000 200000 30000 200000 200000 35700 20000 0.12 10568 79185 119440 4227 9816 108711 3500 10000 200000 200000 32872 0 31096 28294 26809 36000 131547 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