Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
9 Months Ended
Aug. 31, 2019
Notes to Financial Statements [Abstract]  
RELATED PARTY TRANSACTIONS [Text Block]
6.

RELATED PARTY TRANSACTIONS

The following transactions are in the normal course of operations and are measured at the amount of consideration established and agreed to by related parties.

Nine months ended August 31, 2019

The Company expensed $66,667 for services provided by Jensen as CEO through March 31, 2019, which includes an obligation of the Company to issue shares for $20,000.

The Company expensed $50,000 for services provided by Malhotra, CFO of the Company, which was paid to a corporation in which the CFO has an ownership interest.

The Company expensed $43,200, which includes $25,200 for the issuance of 180,000 common shares for services, pursuant to a consulting contract, for services provided by Thrasher, a former director of the Company.

The Company expensed $90,000 for services provided by Andre Buys (“Buys”), CTO of the Company, and an additional $8,333 for royalties. The Company expensed $12,681 for the value of that portion of his 1,500,000 options that vested during this period. As at August 31, 2019, the Company owes Buys $16,333.

The Company expensed $136,374 for services provided by Ganz, President of the Company and, effective April 1, 2019, CEO of the Company, which includes $46,667 for issuance of 333,333 common shares and $52,500 for issuance of convertible notes.

The Company expensed $119,385 for services provided for Wager, CLO of the Company, which includes $35,000 for issuance of 250,000 common shares and $42,500 for issuance of convertible notes.

The Company expensed $16,200 for office rent including services to a corporation owned and controlled by Ganz, President and, effective April 1, 2019 CEO of the Company. As of August 31, 2019, the Company has a payable due to that corporation of $8,120.

Current directors and officers of the Company participated in the April 22, 2019, May 20, 2019 and July 22, 2019 financing for 316 units for total proceeds of $315,588, of which $70,000 was issued for services rendered.

Amounts owing to related parties are unsecured, non-interest bearing and due on demand.


Nine months ended August 31, 2018

As of August 31, 2018, there were no amounts receivable from related parties.

As of August 31, 2018, the Company had a payable of $103,906 to related parties to be settled by issuance of stock.

The Company expensed $150,000 for services provided by Jensen, COO and President of the Company through July 13, 2018 and, CEO of the Company effective July 13, 2018.

The Company expensed $34,875 for services provided by Malhotra, CFO of the Company, which was paid to a corporation in which Malhotra has an ownership interest, in accordance with his consulting contract.

The Company expensed $116,575 which includes $18,000 for issuance of proportionate shares per his contract, for services provided by Dean Thrasher as CEO of the Company through July 13,2018 and as Executive Chairman of the Company effective July 13, 2018, which was paid to a corporation in which the CEO has an ownership interest, in accordance with the consulting contract (see also note 7). The Company also expensed $39,046 for the value of that portion of his 1,150,000 options that vested during this period.

The Company issued 507,550 common shares to NEIP at a price of $0.12 per share to satisfy the payment of $62,500 for services rendered due in December 2017.

On April 13, 2018, the Company employed Buys as the CTO with compensation of $10,000 per month over a three-year period and granted Buys options to acquire a total of 1,500,000 common shares. The Company expensed $46,667 paid to Buys, and expensed $6,341 for the value of that portion of his 1,500,000 options that vested during this period. See Note 7(a).


Effective June 1, 2018 the Company entered into a consulting agreement (the “Consulting Agreement”) with Bryan Ganz pursuant to which Mr. Ganz served as President of the Company. By the terms of the Consulting Agreement, Mr. Ganz was to be paid annually $200,000 in the Company’s common shares for his services and subject to stock exchange approval. For the Company’s fiscal third and fourth quarters Ganz was to be paid 500,000 common shares for each quarter, ending March 31, 2019. The Company accrued expenses of $72,573 as the cost of shares issued to Ganz for services.

Effective December 1, 2017, the Company leased office premises at Wakefield, Massachusetts, USA for rent of $700 per month from a corporation owned and controlled by a director of the Company. The Company expensed $6,300 as office rent for the nine-months ended August 31, 2018. As of August 31, 2018, the Company had a payable for $3,940 for the rent.