Restatement

12 Months Ended

Nov. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Restatement

3. Restatement

During 2015, the Company determined that it should have recorded and valued two warrants for the purchase common stock as tainted derivatives that had not previously been identified as derivatives, and had miscalculated the market value of certain derivative liabilities and a gain on the settlement of liabilities. As a result, the Company has restated its previously issued consolidated financial statements for the year ended November 30, 2013 and has increased the amount of derivative liabilities payable by $132,826 at November 30, 2013 and reduced accumulated deficit and capital in excess of par value by $431,794 and $572,765, respectively. As a result, for the year ended November 30, 2013, gain on settlement of liabilities increased by $220,744, from $1,273,195 to $1,493,939 and a gain for a mark-to-market adjustment of derivative liabilities increased by $164,115, from $441,533 to $605,648. The Company also determined that other corrections were required to decrease its selling, general and administrative costs by $16,095, from $1,749,111, as originally reported, to $1,733,016; decrease interest expense by $45,703, from $3,219,678, as originally reported, to $3,173,975; and to report as a separate line item in its income statement, the amortization of deferred finance costs of $30,085, which had previously been reported as a component of selling, general and administrative costs. The restatement resulted in net income of $443,657, or $0.00 per basic and diluted share, for the year ended November 30, 2013, as compared to net income of $61,348, or $0.00 per basic share and diluted share that had previously been reported.

 The Company restated the consolidated financial statements as of and for the year ended November 30, 2013 as follows: 

	Year End November 30, 2013
	As Originally
	Reported			Adjustments				As Restated
Accounts payable and other current liabilities		2,409,194			17,990		(1)		2,427,184
Due to Pension Benefit Guarantee Corporation		1,914,392			(9,848	)	(2)		1,904,544
Derivative liabilities – long-term		1,309,955			132,826		(3)		1,442,781
Capital in excess of par value		41,215,775			(572,765	)	(3)(4)		40,643,010
Accumulated deficit		(51,737,831	)		431,797		(3)(4)		(51,306,034	)
Selling, general and administrative costs		1,749,111			(16,095	)	(1)(6)		1,733,016
Interest expense		(3,219,678	)		(45,703	)	(4)(5)		(3,173,975	)
Amortization of deferred finance costs		—			(30,085	)	(6)		(30,085	)
Gain (loss) on settlement of liabilities		1,273,195			220,744		(4)		1,493,939
Gain on value of derivative liabilities		441,533			(129,875	)	(4)		571,390

Adjustments to consolidated financial statements:

(1)	To record additional service fees and interest.
(2)	To adjust liability for updated interest rates.
(3)	To record derivative liabilities for tainted warrants.
(4)	To adjust gain on conversion of derivative liabilities to common stock.
(5)	To adjust for miscalculation.
(6)	To reclassify amounts for amortization costs.