Restatement

3 Months Ended

Feb. 28, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Restatement

Note 15 – Restatement

During 2015, the Company determined that it should have recorded and valued tainted derivatives that had not previously been identified as derivatives. As a result, the Company has restated its previously issued financial statements for the three-month period ended February 28, 2014. The restatement resulted in a decrease in beginning Retained Deficit at December 1, 2013 of $132,826, and a gain of $253,827 for the three-month period ended February 28, 2014, or a decrease of $31,650, as compared to a gain of $285,477 that had previously been reported. The Company also reclassified deferred financing costs of $17,859 from selling, general and administrative costs, to other expense.

The Company restated its consolidated financial statements as of and for the three months ended February 28, 2014 as follows:

	Three Months Ended February 28, 2014
	As Originally Reported			Adjustments				As Restated
Selling, general and administrative costs	$	377,425		$	(17,859	)	(1)	$	359,566
Other expense – deferred finance costs		—			17,859		(1)		17,829
(Gain) loss on value of derivative liabilities		(285,477	)		(31,650	)	(2)		(253,827	)

Adjustments to consolidated financial statements:

(1) To reclassify deferred finance expense to other expenses.

(2) To record gain on the settlement of derivative liabilities.

For the three-months ended February 28, 2014, the restatement increased income from continuing operations by $17,859, decreased net income by $31,650, and had no effect on earnings per share, which remained at $0.00.