Basis of Presentation

9 Months Ended

Aug. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

Note 1– Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the rules and regulations of the U.S. Securities and Exchange Commission for quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The condensed balance sheet at November 30, 2014 was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. Operating results for the nine and three-month periods ended August 31, 2015, are not necessarily indicative of the results that may be expected for the year ended November 30, 2015. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended November 30, 2014.

For a summary of significant accounting policies (which have not changed from November 30, 2014), see the Company’s Annual Report on Form 10-K for the year ended November 30, 2014.

Principles of Consolidation

The financial statements for the nine and three months ended August 31, 2015 include the accounts of Pervasip Corp. and the activities of its various wholly-owned subsidiaries, its 90% owned subsidiary, Canalytix LLC (Canalytix), and its 60% owned subsidiary, Grow Big Supply LLC (“GBS”). The results of the operations of the Company include Canalytix since March 25, 2015, and GBS since July 1, 2015. Any significant inter-company balances and transactions have been eliminated.

Marketable securities

The Company classifies investments in equity securities bought and held primarily to be sold in the short term that have readily determinable fair values, as trading securities. Unrealized holding gains and losses for trading securities are included in earnings. Any unrealized holding gains and losses from available-for-sale securities are excluded from earnings and are recorded in comprehensive income until a gain or loss has been realized.

Inventory

Inventories are valued at lower of cost or market using the first-in, first-out (FIFO) inventory method. Each unit of inventory is assigned a specific unit cost based upon a vendor invoice and is carried at that cost.

Equipment and Leasehold Improvements

Depreciation of equipment is provided on a straight-line basis over the estimated asset lives, which range from three to seven years for fixtures and equipment. Leasehold improvements are amortized over the shorter of their economic lives or the lease term, beginning on the date the asset is put into use.

Property and equipment consisted of the following at August 31, 2015:

Furniture and fixtures	$	15,365
Leasehold improvements		32,617
Machinery and equipment		9,405
		57,387
Less accumulated depreciation		(8,184	)
Total	$	49,203

Depreciation expense was $8,184 for the three and nine months ended August 31, 2015.

Intangibles

The carrying value of intangible assets with indefinite lives are reviewed at least annually for possible impairment. The Company amortizes an intangible asset of $259,217 that was acquired in the July 1, 2015 purchase of Plaid Canary Corporation at a rate of $9,064 per month. $18,128 of amortization expense is recognized in the Company’s consolidated financial statements. Amortization for the 12-month periods ending August 31, 2017 and 2016 will be approximately $109,000 for each twelve-month period. Afterwards, the remaining amortization will be approximately $23,000.