Quarterly report pursuant to Section 13 or 15(d)

NOTE PAYABLE, RELATED PARTY

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NOTE PAYABLE, RELATED PARTY
6 Months Ended
May 31, 2016
Note Payable Related Party [Abstract]  
NOTE PAYABLE, RELATED PARTY
9. NOTE PAYABLE, RELATED PARTY

 

Note payable, related party, at May 31, 2016 and November 30, 2015, are comprised of the following:

 

    May 31, 2016     November 30, 2015  
             
Note payable to MCKEA Holdings, LLC   $ 40,937     $ -  
Less: debt discount     (2,800 )     -  
Total note payable, related party   $ 38,137     $ -  

 

On March 4, 2016, RCG entered into a promissory note (the “MCKEA Note”) with MCKEA Holdings, LLC. The MCKEA Note provides for proceeds up to $100,000 and bears interest a rate of fifteen percent (15%) per year. All principal and interest accrued under the MCKEA Note was due on or before August 4, 2016. The MCKEA Note features an original issue discount of 10% of the total cash advanced to RCG. Between March 4, 2016 and May 31, 2016, $56,788 was advanced to RCG, inclusive of $5,163 of original issue discount of which $15,851 has been repaid resulting in an outstanding principal balance of $40,937 at May 31, 2016. During the three and six months ended May 31, 2016, the Company recognized interest expense of $2,363 resulting from amortization of the debt discount for the above note payable, related party.