Quarterly report pursuant to Section 13 or 15(d)

PRIOR PERIOD RESTATEMENT

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PRIOR PERIOD RESTATEMENT
3 Months Ended
Feb. 28, 2018
PRIOR PERIOD RESTATEMENT [Text Block]
12.

PRIOR PERIOD RESTATEMENT

The financial statements for the prior quarter ended February 28, 2017 are revised to record the bifurcation of the derivative liability from the host Series B Secured Convertible Debentures issued on December 7, 2016, following further analysis of convertible debt instrument issued by the Company in Canadian dollars. The analysis was conducted during the preparation of annual financial statements for 2017.

The effect of changes in the financial statements is summarized as follows:

  Quarter ended
  February 28, 2017
     
  Prior to  
  Restatement Restated
  $ $
Consolidated Balance Sheet:    
Secured convertible debentures, net of deferred financing costs 1,615,201 1,350,487
Derivative liabilities 467,671 606,991
Total Liabilities 2,523,621 2,398,227
Accumulated deficit (28,563,975) (28,438,581)
Total Stockholders' Deficiency (1,186,801) (1,061,407)
     
Consolidated Statement of Operations and
Comprehensive Loss:
   
     
Foreign currency translation loss 13,156 13,822
Selling, general and administration 523,613 479,160
Total Operating Expenses 548,741 504,954
Loss from Operations (529,419) (485,632)
Change in fair value of derivative liabilities 421,379 571,648
Accretion - (68,662)
Loss before Income Taxes (265,362) (139,968)
Net Loss (265,362) (139,968)
Comprehensive Loss (243,209) (117,815)
Loss per share-basic and diluted (0.004) (0.002)
     
Consolidated Statement of
Cash Flows
Three months ended
  February 28, 2017
Net Loss (265,362) (139,968)
Adjustment for: Foreign currency translation 13,156 13,822
Amortization of debt discount 44,453 68,662
Change in fair value of derivative liabilities (421,379) (571,648)
Net cash used in operating activities (477,651) (477,651)