Partial Sale of a Business

12 Months Ended

Nov. 30, 2015

Business Combinations [Abstract]

Partial Sale of a Business

 13. Partial Sale of a Business

Valuesetters, Inc. (the “Purchaser”) bought the fixed overhead, including equipment and back office operations, the majority of the customers and a copy of the source code (the “Partial Sale”) of Company’s wholly-owned subsidiary, TelcoSoftware.com Corp. (the “Subsidiary”), on September 30, 2014. The Subsidiary then became a wholesale customer of the Purchaser so that the Company could continue marketing its cloud-based VoIP product without incurring the fixed overhead costs assumed by the Purchaser. The Subsidiary received 40 million shares of common stock, or 8% of the outstanding shares of the Purchaser, which are valued at $220,000 and $1,040,000 at November 30, 2015 and 2014, respectively. As a result of the Partial Sale, the Company’s revenues for the first quarter of fiscal 2015 are significantly diminished from the prior year. A comparison of the income statements of the Subsidiary for the years ended November 30, 2015 and 2014 is as follows:

	11/30/2015			11/30/2014
Revenue	$	1,821		$	491,319
Costs and expenses
Cost of services		1,275			287,028
Selling, general and administrative		(6,426	)		152,539
Total costs and expenses		(5,151	)		439,567
Income (loss) from operations		6,972			51,752
Other income/(expense)
Interest expense		(1,542	)		(102,174	)
Other income		390			105,333
Total other income/(expense)		(1,152	)		3,159
Net income	$	5,820		$	54,911

The value of the marketable securities received by the Subsidiary at September 30, 2014 was $440,000, as compared to $220,000 at November 30, 2015.