Going Concern Matters and Realization of Assets	12 Months Ended
Nov. 30, 2011
Notes to Financial Statements
Going Concern Matters and Realization of Assets	2. Going Concern Matters and Realization of Assets The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the ordinary course of business. However, the Company has sustained substantial losses from its continuing operations in recent years and as of November 30, 2011 has negative working capital of $18,804,865 and a stockholders’ equity deficiency of $19,075,270. In addition, the Company is unable to meet its obligations as they become due and sustain its operations. The Company believes that its existing cash resources are not sufficient to fund its continuing operating losses, capital expenditures, lease and debt payments and working capital requirements. The Company may not be able to raise sufficient additional debt, equity or other cash on acceptable terms, if at all. Failure to generate sufficient revenues, achieve certain other business plan objectives or raise additional funds could have a material adverse effect on the Company’s results of operations, cash flows and financial position, including its ability to continue as a going concern, and may require it to significantly reduce, reorganize, discontinue or shut down its operations. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company which, in turn, is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in its existence. Management’s plans include: 1. Seeking to raise $150,000 in debt or equity in the near term, and additional equity later in the year. With additional cash available to the Company, it can cover monthly cash losses and allocate funds toward marketing its products to achieve additional sales and consequently cut monthly operating losses. 2. Continuing to develop new uses and distribution channels for its voice-over-IP enabled voice service. The Company’s mobile VoIP application allows for low-cost calling to the United States, Canada and Puerto Rico. To increase sales and the addressable market for its VoIP application, the Company plans to add low-cost international calling to its Android application, including a prepaid calling plan for unlimited calling to more than 60 countries. 3. Continue to list new products on the Android Market to obtain new subscribers. The Company lists its Android VoIP application on the Android Market to obtain new subscribers. In February 2012, new Android activations are reported to be more than 850,000 devices each day. In order to capitalize on the rapid growth of Android devices, the Company is planning a video application that will allow users of Android devices to make video calls to other users of the Company’s video application. 4. Leverage the production and marketing know-how of G3 Connect, LLC. G3 Connect, LLC has helped to fund our operating losses since October 2011 and plans to continue to provide us with cash infusions until July 2012. It also plans to manufacture and sell new Android devices that would utilize our VoIP service. Furthermore, it is marketing a videophone, which runs on our network, to domestic corporations and overseas entities. We plan to continue to utilize the manufacturing, marketing and sales experience of G3 Connect, LLC and to cooperate with their product development team. There can be no assurance that we will be able to achieve our business plan objectives or that we will achieve or maintain cash-flow-positive operating results. If we are unable to generate adequate funds from operations or raise additional funds, we may not be able to repay our existing debt, continue to operate our network, respond to competitive pressures or fund our operations. As a result, we may be required to significantly reduce, reorganize, discontinue or shut down our operations. Our financial statements do not include any adjustments that might result from this uncertainty.

Going Concern Matters and Realization of Assets

12 Months Ended

Nov. 30, 2011

Going Concern Matters and Realization of Assets

2. Going Concern Matters and Realization of Assets

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the ordinary course of business. However, the Company has sustained substantial losses from its continuing operations in recent years and as of November 30, 2011 has negative working capital of $18,804,865 and a stockholders’ equity deficiency of $19,075,270. In addition, the Company is unable to meet its obligations as they become due and sustain its operations. The Company believes that its existing cash resources are not sufficient to fund its continuing operating losses, capital expenditures, lease and debt payments and working capital requirements.

The Company may not be able to raise sufficient additional debt, equity or other cash on acceptable terms, if at all. Failure to generate sufficient revenues, achieve certain other business plan objectives or raise additional funds could have a material adverse effect on the Company’s results of operations, cash flows and financial position, including its ability to continue as a going concern, and may require it to significantly reduce, reorganize, discontinue or shut down its operations.

In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company which, in turn, is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in its existence. Management’s plans include:

1. Seeking to raise $150,000 in debt or equity in the near term, and additional equity later in the year. With additional cash available to the Company, it can cover monthly cash losses and allocate funds toward marketing its products to achieve additional sales and consequently cut monthly operating losses.

2. Continuing to develop new uses and distribution channels for its voice-over-IP enabled voice service. The Company’s mobile VoIP application allows for low-cost calling to the United States, Canada and Puerto Rico. To increase sales and the addressable market for its VoIP application, the Company plans to add low-cost international calling to its Android application, including a prepaid calling plan for unlimited calling to more than 60 countries.

3. Continue to list new products on the Android Market to obtain new subscribers. The Company lists its Android VoIP application on the Android Market to obtain new subscribers. In February 2012, new Android activations are reported to be more than 850,000 devices each day. In order to capitalize on the rapid growth of Android devices, the Company is planning a video application that will allow users of Android devices to make video calls to other users of the Company’s video application.

4. Leverage the production and marketing know-how of G3 Connect, LLC. G3 Connect, LLC has helped to fund our operating losses since October 2011 and plans to continue to provide us with cash infusions until July 2012. It also plans to manufacture and sell new Android devices that would utilize our VoIP service. Furthermore, it is marketing a videophone, which runs on our network, to domestic corporations and overseas entities. We plan to continue to utilize the manufacturing, marketing and sales experience of G3 Connect, LLC and to cooperate with their product development team.

There can be no assurance that we will be able to achieve our business plan objectives or that we will achieve or maintain cash-flow-positive operating results. If we are unable to generate adequate funds from operations or raise additional funds, we may not be able to repay our existing debt, continue to operate our network, respond to competitive pressures or fund our operations. As a result, we may be required to significantly reduce, reorganize, discontinue or shut down our operations. Our financial statements do not include any adjustments that might result from this uncertainty.

- Definition

Disclosure of accounting policy for reporting when there is a substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (generally a year from the balance sheet date). Disclose: (a) pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, (b) the possible effects of such conditions and events, (c) management's evaluation of the significance of those conditions and events and any mitigating factors, (d) possible discontinuance of operations, (e) management's plans (including relevant prospective financial information), and (f) information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. If management's plans alleviate the substantial doubt about the entity's ability to continue as a going concern, disclosure of the principal conditions and events that initially raised the substantial doubt about the entity's ability to continue as a going concern would be expected to be considered. Disclose whether operations for the current or prior years generated sufficient cash to cover current obligations, whether waivers were obtained from creditors relating to the company's default under the provisions of debt agreements and possible effects of such conditions and events, such as: whether there is a possible need to obtain additional financing (debt or equity) or to liquidate certain holdings to offset future cash flow deficiencies. Disclose appropriate parent company information when parent is dependent upon remittances from subsidiaries to satisfy its obligations.

+ References+ Details