Restatement

12 Months Ended

Nov. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Restatement

3. Restatement

During 2014, the Company determined that it should have recorded and valued various tainted derivatives that had not previously been identified as derivatives. As a result, the Company has restated its previously issued consolidated financial statements for the year ended November 30, 2012 and has increased the amount of derivative liabilities payable by $341,645 at November 30, 2012 and reduced accumulated deficit and capital in excess of par value by $172, 421 and $169,224, respectively. As a result, for the year ended November 30, 2012, gain on settlement of liabilities decreased by $100,200, from $314,481 to $214,281 and a gain for a mark-to-market adjustment of derivative liabilities decreased by $72,221, from $92,872 to $20,641. The restatement resulted in net income of $3,001,510, or $0.02 per basic share and $0.01 per diluted share, for the year ended November 30, 2012, as compared to net income of $3,173,931, or $0.02 per basic share and $0.01 per diluted share that had previously been reported.

The Company restated the consolidated financial statements as of and for the year ended November 30, 2012 as follows:

	Year End November 30, 2012
	As Originally
	Reported			Adjustments			As Restated
Current portion of long-term debt and capital		7,444,490			(500,426	)(1)		6,944,064
Accounts payable and other current liabilities		2,297,242			(252,149	)(1)		2,045,093
Accounts payable and other current liabilities - related party		—			250,149	(1)		250,149
Related party debt		—			502,426	(1)		502,426
Derivative liabilities		—			341,645	(2)(3)		341,645
Capital in excess of par value		39,216,866			(169,224	)(2)		39,047,642
Accumulated deficit		(51,626,758	)		(172,421	)(2)		(51,799,179	)
Gain (loss) on settlement of liabilities		314,481			(100,200	)(3)		214,281
Gain on value of derivative liabilities		92,872			(72,221	)(2)		20,651

Adjustments to consolidated financial statements:

(1) To reclassify amounts due to related party.

(2) To record derivative liabilities for tainted options and warrants.

(3) To adjust gain on conversion of derivative liabilities to common stock.