Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.10.0.1
FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
May 31, 2016
Fair Value Disclosures [Abstract]  
Schedule of fair value of liabilities

The following tables classify the Company’s embedded conversion options, put options, and derivative warrant liabilities measured at fair value on a recurring basis into the fair value hierarchy as of May 31, 2016 and November 30, 2015:

 

    Fair value measured at May 31, 2016  
                         
     

Fair value at

May 31 2016

     

Quoted prices in

active markets

(Level 1)

     

Significant other

observable

inputs (Level 2)

     

Significant

unobservable

inputs (Level 3)

 
Bifurcated conversion
options, put options, and
derivative warrant
liabilities
  $ 1,588,104     $ -     $ -     $ 1,588,104  

 

    Fair value measured at November 30, 2015  
                         
     

Fair value at

November 30, 2015

     

Quoted prices in

active markets

(Level 1)

     

Significant other

observable

inputs (Level 2)

     

Significant

unobservable

inputs (Level 3)

 
Bifurcated conversion
options and derivative
warrant liabilities
  $ 1,313,012     $ -     $ -     $ 1,313,012  

 

Schedule of fair value liabilities gains & losses

The following table presents changes in Level 3 liabilities measured at fair value for the six months ended May 31, 2016. Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. Unrealized gains and losses associated with liabilities within the Level 3 category include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

 

    December 1, 2015    

Derivative
Liabilities from
Convertible
Notes Payable and

Notes Payable

    Fair value at
Inception
   

Change in estimated
fair value recognized

in
results of operations

    May 31, 2016  
Embedded conversion
options, put options, and
derivative warrant
liabilities
  $ 1,313,012     $ 228,061     $ 57,237     ($ 10,206 )   $ 1,588,104  

Schedule of fair value inputs

A summary of quantitative information about significant unobservable inputs (Level 3 inputs) used in measuring the Company’s embedded conversion options that are categorized within Level 3 of the fair value hierarchy for the six months ended May 31, 2016 and for the year ended November 30, 2015 is as follows:

 

    Date of valuation  
    May 31, 2016     November 30, 2015  
Stock price   $ 0.25     $ 0.45  
Conversion price   $ .15       $0.10 – $0.22  
Volatility     77.11 %     161% – 239%  
Risk free interest rate     1.03 %     0.11% – 0.86%  
Years to maturity     2.90 – 2.93       0.45 – 1.74  

 

A summary of quantitative information about significant unobservable inputs (Level 3 inputs) used in measuring the Company’s derivative warrant liabilities that are categorized within Level 3 of the fair value hierarchy for the six months ended May 31, 2016:

 

    May 31, 2016  
Stock price   $ 0.25  
Conversion price     $0.001 – $0.30  
Volatility     75.31% – 79.70%  
Risk free interest rate     0.68% – 1.03%  
Years to maturity     0.77 – 3.08