Quarterly report pursuant to Section 13 or 15(d)

NATURE OF OPERATIONS AND GOING CONCERN

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NATURE OF OPERATIONS AND GOING CONCERN
9 Months Ended
Aug. 31, 2012
NATURE OF OPERATIONS AND GOING CONCERN [Text Block]
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NATURE OF OPERATIONS AND GOING CONCERN

   
 

Security Devices International, Inc. (The Company”) is a non-lethal defense technology company, specializing in the development of innovative next generation solutions for security situations that do not require the use of lethal force. SDI has implemented manufacturing partnerships to assist in the deployment of their patented and patent pending family of products. These products consist of; the Blunt Impact Projectile 40mm (BIP) line of products, and the Wireless Electric Projectile 40mm (WEP).

   
 

These unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. At August 31, 2012, the Company has no source of operating cash flows, has not achieved profitable operations, and has accumulated losses of $18,227,478 since inception and expects to incur further losses in the development of its business. These factors cast substantial doubt about the Company’s ability to continue as a going concern. The Company has a need for additional working capital to launch its blunt impact and electric 40mm round products, meet its ongoing levels of corporate overhead, and discharge its liabilities as they come due

   
 

In order to finance the continued development, the Company is working towards the raising of appropriate capital in the near future. In addition to raising funds in the prior years, the Company raised $160,000 through the issuance of 800,000 common shares during the year ended November 30, 2011.The Company further raised an additional $878,328 by issue of Convertible Debentures during the year ended November 30, 2011 and $910,000 during the nine month period ended August 31, 2012. In addition, the Company raised $400,000 by issuance of 1,033,333 common shares during the three month period ended August 31, 2012.

   
 

While the Company has been successful in securing financings in the past, there is no assurance that it will be able to do so in the future. These financial statements do not give effect to adjustments, if any, that would be necessary should the Company be unable to continue as a going concern.

   
 

At August 31, 2012, the Company had an accumulated deficit during the development stage of $18,227,478 which includes a non-cash stock based compensation expense of $5,844,859 for issue of options and warrants.