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DISCONTINUED OPERATIONS
 12 Months Ended
Nov. 30, 2021
Discontinued Operations  
DISCONTINUED OPERATIONS

22.  DISCONTINUED OPERATIONS

 

On January 9, 2018, the Company acquired 51% of the issued and outstanding shares of Majesco Entertainment Company, a U.S. corporation. As consideration, the Company issued 66,667 common shares with a value of $33,333 and was required to pay cash consideration of up to $1,000,000. On August 31, 2020, the Company agreed to settle the remaining balance of $500,000 previously included in accounts payable, along with $347,186 in consulting fees owed to the previous owner of Majesco, for $200,000 in cash and the return of the Company’s 51% ownership of Majesco. Upon signing of the agreement, the Majesco operations were considered discontinued and the balances were reclassified as such.

 

The following is the breakdown of the discontinued operations on the statement of comprehensive loss:

 

          
    Year ended November 30, 
    2020    2019 
    $    $ 
Sales   304,522    302,066 
Cost of sales   104,981    111,555 
Gross profit (loss)   199,541    190,511 
           
Operating expenses          
Consulting and director fees   9,000    85,500 
Other general and administrative expenses   10,609    22,793 
Management and directors salaries and fees   66,328    85,203 
Marketing   -    213 
Professional fees   22,201    65,503 
 Total operating expenses   108,138    259,212 
           
Other income (expenses)          
Impairment of goodwill   (2,172,491)   - 
 Total other income (expenses)   (2,172,491)   - 
           
Profit (loss) before income taxes   (2,081,088)   (68,701)
Income tax expense (recovery)   -    (1,254)
           
Profit (loss) from discontinued operations   (2,081,088)   (67,447)
Profit (loss) attributable to non-controlling interest from discontinued operations   (1,411,239)   (33,049)
Profit (loss) attributable to the Company from discontinued operations   (669,849)   (34,398)

 

 

The following is a breakdown of the change in cash flows for the discontinued operations:

 

    Year ended November 30, 
    2020    2019 
    $    $ 
Net cash provided by operating activities   79,179    56,760 
Net cash used in investing activities   -    (100,000)
Net cash flows for the year   79,179    (43,240)