Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Nov. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  

17.              PATENT RIGHTS

On April 13, 2018, the Company entered into a purchase and sale agreement with Buys, its CTO, pursuant to which the Company agreed to purchase from Buys the Portfolio of registered patent rights, provisional patent rights, and other intellectual property relating to air and/or gas fired long guns or pistols, including pump action launchers and munitions used with such pistols and long guns, including self-stabilizing shaped or "finned" rounds. As consideration for the Portfolio, the Company paid Buys $100,000, and incurred $10,000 in legal costs to transfer these patent rights. This consideration of $110,000 has been capitalized. The Company also agreed to pay Buys either $500,000 in cash or $750,000 worth of Company stock within two years (the "Second Payment") at Buys' discretion, if the Company elected to retain certain patents within the patent portfolio. In the event that the Company fails to make the Second Payment, the Portfolio would revert to Buys, but the Company would retain perpetual, irrevocable, exclusive and non-exclusive licenses to use technology with respect to the Portfolio and any technology developed within two years of April 13, 2018. Pursuant to an amendment of the Agreement subsequent to November 30, 2019, the Company made two additional payments to Buys and Buys no longer retains any reversion rights or security interests in the Portfolio. These patent rights have a maximum life of 20 years, expiring on various dates beginning from November 2033 to 2038, and are amortized straight-line commencing June 2018 over a period of 15 years. The Company amortized $7,332 and $3,666 during the years ended November 30, 2019 and 2018, respectively. As the Agreement included an option for full acquisition of the rights, conditional upon certain future events taking place, the Company recorded the minimum rights to a license arrangement as patent rights. As at November 30, 2019 and 2018, the amounts recorded as patent rights refer to the perpetual, irrevocable, exclusive and non-exclusive license to use technology with respect to the portfolio.

The below table summarizes amortization of the Company's patents as of November 30, 2019 for the next five years:

Fiscal Year      
2020 $ 7,332  
2021   7,332  
2022   7,332  
2023   7,332  
2024   7,332