Quarterly report pursuant to Section 13 or 15(d)

REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

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REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
6 Months Ended
May 31, 2016
Revision Of Previously Issued Financial Statements  
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
4. REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

 

The condensed consolidated financial statements for the three and six months ended May 31, 2015 have been revised to expense the previously capitalized licensing fee and to reclassify original issue discount that was initially recorded as a prepaid asset to debt discount. An analysis of those revised numbers is reflected below.

 

Condensed Consolidated Balance Sheet (unaudited)                  
    May 31, 2015  
    As reported     Adjustment     As revised  
Assets:                  
Total current assets   $ 356,883     $ -     $ 356,883  
Total assets   $ 411,588     $ (54,000 )   $ 357,588  
                         
Liabilities and Stockholders' Deficit:                        
Total current liabilities   $ 687,772     $ -     $ 687,772  
Total liabilities and stockholders' deficit   $ 411,588     $ (54,000 )   $ 357,588  

 

Condensed Consolidated Statement of Operations (unaudited)                  
    For the Three Months Ended May 31, 2015  
    As reported     Adjustment     As revised  
General and administrative expenses   $ 301,755     $ 11,250     $ 313,005  
Loss from operations   $ (298,846 )   $ (11,250 )   $ (310,096 )
Net loss   $ (570,226 )   $ (11,250 )   $ (581,476 )
Basic and diluted net loss per share   $ (0.10 )   $ (0.00 )   $ (0.11 )
Weighted average shares outstanding, basic and diluted     5,451,384       5,451,384       5,451,384  

 

Condensed Consolidated Statement of Operations (unaudited)                  
    For the Six Months Ended May 31, 2015  
    As reported     Adjustment     As revised  
General and administrative expenses   $ 475,085     $ 24,750     $ 499,835  
Loss from operations   $ (465,715 )   $ (24,750 )   $ (490,465 )
Net loss   $ (748,295 )   $ (24,750 )   $ (773,045 )
Basic and diluted net loss per share   $ (0.14 )   $ (0.00 )   $ (0.14 )
Weighted average shares outstanding, basic and diluted     5,336,296       5,336,296       5,336,296  

 

In accordance with SEC Staff Accounting Bulletin No 108, the Company has evaluated this error, based on an analysis of quantitative and qualitative factors, as to whether it was material to the condensed consolidated statements of operations for the three and six months ended May 31, 2015 and if amendments of previously filed financial statements with the SEC are required. The Company has determined that the adjustment is qualitatively not material and, therefore, the error has no material impact to the condensed consolidated statements of operations for the three and six months ended May 31, 2015 or other prior periods.