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Related Party Transactions
12 Months Ended
Nov. 30, 2015
Related Party Transactions [Abstract]  
Related Party Transactions

12. Related Party Transactions

 

 

At November 30, 2015 and 2014, the total amount due to our chief executive officer, including loans, unpaid salary, interest and expenses amounted to $1,368,000 and $1,194,021, respectively.

 

At November 30, 2015, we owed $222,918 to a company that is controlled by the entity that owns 60% of our voting control, via ownership of our Series H preferred stock. The entity also received a consulting fee of 7,500 shares of Series I Preferred Stock, which we recorded as a consulting fee of $75,000.

 

At November 30, 2014 the amount of unpaid salary owed to our former chief information officer amounted to $20,000. This liability was settled on December 1, 2015 with the issuance of a three-year warrant to purchase 20,000,000 shares of our common stock at a price of $0.001 per share.

 

We paid fees to a software consulting firm (“Consultant”) of $126,500 in fiscal 2014. All such work performed by the Consultant became the property of the Company, and was sold on September 30, 2014, as noted below.  Our former chief information officer performed work for the Consultant, including disbursement services, in which funds that were remitted by the Company to a company controlled by the officer were subsequently distributed for the Consultant to appropriate vendors. For services rendered to the Consultant, our chief information officer was paid $ 6,000 in fiscal 2014.

 

On September 30, 2014, a wholly-owned subsidiary of the Company entered into a contract of sale to transfer certain assets and liabilities, including a copy of internally developed mobile content delivery software to Vaxstar LLC (the “Buyer”). The Buyer simultaneously assigned the contract of sale to Valuesetters, Inc. (the “Assignee”). The Buyer agreed to pay the Company 40,000,000 shares of common stock, par value $0.001, of the Assignee, which are included in Marketable Securities at November 30, 2015 and 2014. Although we had negotiated the details of the transaction with the Buyer before our chief information officer resigned from our Company, our former chief information officer signed the purchase agreement as the Buyer’s chief executive officer. We calculated a gain from the contract of sale amounting to $779,645, and recorded this gain as an addition to paid-in capital because of the related-party nature of the transaction.