Quarterly report pursuant to Section 13 or 15(d)

PRIOR PERIOD RESTATEMENT

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PRIOR PERIOD RESTATEMENT
9 Months Ended
Aug. 31, 2018
PRIOR PERIOD RESTATEMENT [Text Block]
13.

PRIOR PERIOD RESTATEMENT

The financial statements for the prior quarter ended August 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
  August 31, 2017
     
  Prior to  
  Restatement Restated
  $ $
Consolidated Balance Sheet:    
Secured convertible debentures, net of deferred financing costs 1,821,807 1,596,083
Derivative liabilities 224,637 472,592
Total Liabilities 2,525,321 2,547,552
Accumulated deficit (29,659,794) (29,682,025)
Total Stockholders' Deficiency (1,983,537) (2,005,768)
Consolidated Statement of Operations and Comprehensive Loss Three months ended
August 31, 2017
   
  Prior to  
  Restatement Restated
  $ $
Foreign currency translation (gain) 79,535 80,021
Total Operating Expenses 530,768 531,254
Loss from Operations (507,120) (507,606)
Change in fair value of derivative liabilities 157,034 122,967
Accretion - (94,134)
Other expense- Interest (150,629) (82,928)
Loss before Income Taxes (500,715) (561,701)
Net Loss (500,715) (561,701)
Comprehensive Loss (498,653) (559,639)
Loss per share-basic and diluted (0.010) (0.010)
     
Consolidated Statement of Operations and Comprehensive Loss Nine months ended
August 31, 2017
   
Foreign currency translation (gain) 72,246 73,210
Total Operating Expenses 1,659,795 1,660,759
Loss from Operations (1,571,826) (1,572,790)
Change in fair value of derivative liabilities 664,413 718,667
Accretion - (249,405)
Other expense- Interest (453,768) (279,729)
Loss before Income Taxes (1,361,181) (1,383,257)
Net Loss (1,361,181) (1,383,257)
Comprehensive Loss (1,337,323) (1,359,399)
Loss per share-basic and diluted (0.020) (0.022)
     
Consolidated Statement of Cash Flows Nine months ended
  August 31, 2017
Net loss (1,361,181) (1,383,257)
Foreign currency translation gain 72,246 73,210
Accretion 174,038 249,404
Change in fair value of derivative liabilities (664,413) (718,667)
Net cash used in operating activities (1,380,962) (1,380,962)