Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
May 31, 2016
May 31, 2015
Cash Flows from Operating Activities:    
Net loss $ (990,374) $ (773,045)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization expense-loan fees 48,095
Interest income-amortization of original issue discount (35,174)
Interest expense on warrant issuance 26,250
Interest expense-debt discount 258,867 84,178
Loss on issuance of convertible debt 71,061 301,309
Loss on conversion of convertible debt 154,694
Change in fair value of bifurcated embedded conversion options and derivative warrant liabilities (10,206) (182,776)
Stock-based compensation 20,000 251,833
Stock issued for loan fees 50,314
Changes in operating assets and liabilities:    
Accounts receivable (16,919)
Other receivables (7,373)
Inventories 25,900
Other assets (179)
Accounts payable and accrued expenses 40,382 81,339
Accounts payable and accrued expenses, related parties 109,510 (47,024)
Accrued interest on convertible and promissory notes payable 162,322 6,610
Net cash used in operating activities (200,041) (170,365)
Cash Flows from Investing Activities:    
Purchase of note receivable (345,000) (150,000)
Principal payments received on note receivable 19,674
Net cash used in investing activities (325,326) (150,000)
Cash Flows from Financing Activities:    
Proceeds from issuance of common stock 5,000 2,000
Payments to related parties (7,335)
Proceeds from issuance of convertible notes 157,000 330,000
Payments of convertible notes payable (5,000)
Proceeds from issuance of notes payable 355,000
Proceeds from issuance of notes payable, related party 51,625
Payments of notes payable (20,250) (5,000)
Payments of notes payable, related party (15,851)
Net cash provided by financing activities 527,524 319,665
Net change in cash 2,157 (700)
Cash - beginning of the period 405 2,247
Cash - ending of the period 2,562 1,547
Supplemental disclosures of cash flow information:    
Cash paid during the period for interest 2,200
Supplemental schedule of non-cash investing and financing activities:    
Decrease in accounts payable and accrued expenses-related party in connection with the purchase of a third-party note receivable 25,000
Decrease in notes payable in connection with reduction in note receivable (10,000)
Common stock issued for conversion of debt and accrued interest 183,048
Decrease in notes payable in connection with common stock issued (7,330)
Decrease in accrued interest in connection with common stock issued $ (21,024)
Issuance of preferred stock to shareholder for payment of accrued expenses, related party 76,900
Warrants issued in connection with notes payable $ 30,987