PROMISSORY NOTES

9 Months Ended

Aug. 31, 2014

Debt Disclosure [Abstract]

PROMISSORY NOTES

On June 13, 2013, the Company borrowed $2,150,000 at an interest rate of 5% per annum. The promissory note is unsecured and is due on June 13, 2015. In connection with the note, the Company paid a fee of $19,650 to a third party which was recorded as deferred financing costs and is being amortized to interest expense over the life of the loan using the effective interest rate method. During the period ended August 31, 2014, amortization expense of $7,369 was recognized and unamortized financing costs of $7,778 are deferred on the balance sheet. As of August 31, 2014, $2,150,000 was classified as a short-term liability.

On June 27, 2013, the Company borrowed $500,000 at an interest rate of 5% per annum. The promissory note is unsecured and is due on June 27, 2015. As of August 31, 2014, $500,000 was classified as a short-term liability.

On April 21, 2014, the Company borrowed $4,500,000 at an interest rate of 5% per annum. The promissory note is unsecured and is due on April 21, 2016. As of August 31, 2014, 4,500,000 was classified as a long-term liability.

On June 23, 2014, the Company borrowed $2,000,000 at an interest rate of 5% per annum. The promissory note is unsecured and is due on June 23, 2016. As of August 31, 2014, $2,000,000 was classified as a long-term liability.