PREPAID EXPENSES AND OTHER CURRENT ASSETS
|12 Months Ended|
Nov. 30, 2019
|Prepaid expenses and other receivables [Abstract]|
|PREPAID EXPENSES AND OTHER CURRENT ASSETS [Text Block]||
18. PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid expenses and other current assets as of November 30, 2019 include VAT receivables of $147,457, security deposit of approximately $92,000 for the MA lease which was returned in fiscal 2020 after the Company established a restricted cash account, and prepaid legal fees associated with future registrations of $55,862.
Prepaid expenses and other current assets as of November 30, 2018 included the prepayment of $750,000 by the issuance of common shares to FinTekk, related to the marketing campaign for the launch of the Company's fiscal 2019 launch of the new Byrna® HD product.
In November 2018, the Company made a share issuance of 6,666,666 common stock to FinTekk at a price of $0.15 per share with a fair value of $1,000,000. The shares were issued pursuant to a debt settlement agreement, to retire certain debt owing by the Company to FinTekk, in connection with a sponsorship agreement (the "Sponsorship Agreement"). The Sponsorship Agreement detailed a marketing campaign for the launch of the Company's new Byrna® HD product over the 2018 and 2019 fiscal years. The Company recognized $250,000 of expense related to the Sponsorship Agreement for the year ended November 30, 2018 with $750,000 remaining in prepaid expense at November 30, 2018. In November 2019, the Company reached an agreement to terminate its marketing agreement with FinTekk and Rick Ware Racing, LLC ("RWR"). As of November 30, 2019, 2,966,666 of the 6,666,666 of common shares were deemed earned. Pursuant to the termination agreement, FinTekk returned the remaining 3,700,000 shares of Company stock on January 8, 2020 and the Company will serve as primary sponsor of RWR for two additional NASCAR "Monster" series races. The 3,700,000 common shares were recognized as a redemption of stock issued for service within the statement of changes in stockholders' equity (deficit) for the year ended November 30, 2019 in the amount of $550,000, prepaid expenses were reduced to $ and the Company recognized $200,000 in the Statement of Operations and Accumulated Deficit for services performed by FinTekk.