| PRIOR PERIOD RESTATEMENT [Text Block] |
| 13. |
PRIOR PERIOD RESTATEMENT
|
The financial statements for the prior quarter ended May 31, 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 |
| |
May 31, 2017 |
| |
|
|
| |
Prior to |
|
| |
Restatement |
Restated |
| |
$ |
$ |
|
Consolidated Balance Sheet:
|
|
|
| Secured convertible debentures, net of deferred financing costs |
1,669,359
|
1,433,593
|
| Derivative liabilities |
381,671
|
579,775
|
| Total Liabilities |
2,445,674
|
2,408,012
|
| Accumulated deficit |
(
29,159,079)
|
(
29,120,169)
|
| Total Stockholders' Deficiency |
(
1,530,046)
|
(
1,491,136)
|
| |
|
|
|
Consolidated Statement of Operations and
Comprehensive Loss
|
Three months ended |
| |
May 31, 2017 |
| Foreign currency translation (gain) |
(
20,445)
|
(
20,633)
|
| Selling, general and administration |
587,581
|
525,696
|
| Total Operating Expenses |
580,286
|
518,213
|
| Loss from Operations |
(
535,287)
|
(
473,214)
|
| Change in fair value of derivative liabilities |
86,000
|
24,052
|
| Accretion |
-
|
(
86,609)
|
| Loss before Income Taxes |
(
595,104)
|
(
681,588)
|
| Net Loss |
(
595,104)
|
(
681,588)
|
| Comprehensive Loss |
(
595,461)
|
(
681,945)
|
| Loss per share-basic and diluted |
(0.010)
|
(0.012)
|
| |
|
|
|
Consolidated Statement of Operations and
Comprehensive Loss
|
Six months ended |
| |
May 31, 2017 |
| Foreign currency translation (gain) |
(
7,289)
|
(
6,811)
|
| Selling, general and administration |
1,111,194
|
1,004,856
|
| Total Operating Expenses |
1,129,027
|
1,023,167
|
| Loss from Operations |
(
1,064,706)
|
(
958,846)
|
| Change in fair value of derivative liabilities |
507,379
|
595,700
|
| Accretion |
-
|
(
155,271)
|
| Loss before Income Taxes |
(
860,466)
|
(
821,556)
|
| Net Loss |
(
860,466)
|
(
821,556)
|
| Comprehensive Loss |
(
838,670)
|
(
799,760)
|
| Loss per share-basic and diluted |
(0.020)
|
(0.014)
|
| |
|
|
|
Consolidated Statement of
Cash Flows
|
Six months ended |
| |
May 31, 2017 |
| Net loss |
(
860,466)
|
(
821,556)
|
| Foreign currency translation gain |
(
7,289)
|
(
6,811)
|
| Accretion |
106,338
|
155,271
|
| Change in fair value of derivative liabilities |
(
507,379)
|
(
595,700)
|
| Net cash used in operating activities |
(
1,031,024)
|
(
1,031,024)
|
|