BASIS OF PRESENTATION

Security Devices International, Inc. (the “Company” or “SDI”) was incorporated under the laws of the state of Delaware on March 1, 2005. On February 3, 2014, the Company incorporated a wholly owned subsidiary in Canada, Security Devices International Canada Corp. The consolidated financial statements for the years ended November 30, 2017 and 2016 include the accounts of the Company, and its subsidiary Security Devices International Canada Corp. All material inter-company accounts and transactions have been eliminated.