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Summary of Significant Accounting Policies: Prepaid Expenses (Policies)
12 Months Ended
Nov. 30, 2015
Policies  
Prepaid Expenses

Prepaid Expenses

 

Prepaid expenses primarily consist of rent, advertising expenses and licensing fees.

 

On January 5, 2011, the Company entered into a license agreement for the technology utilized for the manufacture of its products from an unrestricted third party. Under the agreement, the Company is required to pay a fee of $96,600 (RMB 600,000) in advance each year for five years from January 2011 to December 2015. The related prepaid licensing fees of $7,805 and $8,155 were included in prepaid expenses on the balance sheets as of November 30, 2015 and 2014, respectively. The license provides for renewal options. Since this agreement requires the advance payment of the annual licensing fee, there were no minimum payments remaining under this agreement as of November 30, 2015 and 2014.