0001493152-16-011662.txt : 20160720 0001493152-16-011662.hdr.sgml : 20160720 20160720170739 ACCESSION NUMBER: 0001493152-16-011662 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 55 CONFORMED PERIOD OF REPORT: 20160531 FILED AS OF DATE: 20160720 DATE AS OF CHANGE: 20160720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Biopower Operations Corp CENTRAL INDEX KEY: 0001510832 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE PRODUCTION - CROPS [0100] IRS NUMBER: 274460232 STATE OF INCORPORATION: NV FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-172139 FILM NUMBER: 161776003 BUSINESS ADDRESS: STREET 1: 5379 LYONS RD. STREET 2: SUITE 301 CITY: COCONUT CREEK STATE: FL ZIP: 33073 BUSINESS PHONE: 954-509-9830 MAIL ADDRESS: STREET 1: 5379 LYONS RD. STREET 2: SUITE 301 CITY: COCONUT CREEK STATE: FL ZIP: 33073 10-Q 1 form10-q.htm

 

 

 

U. S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

  [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended May 31, 2016

 

  [  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ________________ to __________________

 

Commission File Number: 333-172139

 

 

 

BioPower Operations Corporation

(Exact name of registrant as specified in its charter)

 

Nevada   27-4460232
(State or other jurisdiction of   (IRS Employer
incorporation or organization)   Identification No.)

 

1000 Corporate Drive, Suite 200, Fort Lauderdale, Florida 33334

(Address of principal executive offices)

 

Issuer’s telephone number, including area code: (954) 202-6660

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [  ] No [X]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer [  ]   Accelerated filer [  ]
Non-accelerated filer [  ] (Do not check if a smaller reporting company)   Smaller reporting company [X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [  ] No [X]

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

 

As of July 20, 2016, the registrant had 47,107,680 shares outstanding.

 

 

 

   
 

 

BIOPOWER OPERATIONS CORPORATION

 

CONTENTS

 

    Page
PART I. FINANCIAL INFORMATION  
     
ITEM 1. FINANCIAL STATEMENTS 4
     
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 17
     
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 21
     
ITEM 4. CONTROLS AND PROCEDURES 21
     
PART II. OTHER INFORMATION  
     
ITEM 1. LEGAL PROCEEDINGS 22
     
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 22
     
ITEM 3. DEFAULT UPON SENIOR SECURITIES 22
     
ITEM 4. MINE SAFETY DISCLOSURES 22
     
ITEM 5. OTHER INFORMATION 22
     
ITEM 6. EXHIBITS 22
     
SIGNATURES 23
     
Exhibit 31.1 Certification Pursuant to Section 302 of the Sarbanes Oxley Act  
     
Exhibit 32.1 Certification Pursuant to Section 906 of the Sarbanes Oxley Act  

 

2
 

 

CONTENTS

 

  Page
   
Consolidated Balance Sheets as of May 31, 2016 (unaudited) and November 30, 2015 4
   
Consolidated Statements of Operations for the three and six months ended May 31, 2016 and 2015 (unaudited)

5

   
Consolidated Statements of Cash Flows for the six months ended May 31, 2016 and 2015 (unaudited) 6
   
Notes to Consolidated Financial Statements (unaudited) 7 - 16

 

3
 

 

PART I

FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

BioPower Operations Corporation and Subsidiaries

Consolidated Balance Sheets

 

    May 31, 2016     November 30, 2015  
    (Unaudited)        
             
Assets                
Current Assets                
Cash   $ 59,578     $ 1,281  
Accounts Receivable     317,250       -  
Retainage Receivable     33,250       -  
Prepaid expenses and other current assets     1,099       12,708  
Total Current Assets     411,177       13,989  
                 
Equipment - net     8,286       10,876  
Security deposit     6,937       6,937  
      15,223       17,813  
                 
Total Assets   $ 426,400     $ 31,802  
                 
Liabilities and Stockholders’ Deficit                
                 
Current Liabilities                
Accounts payable and accrued expenses   $ 482,288     $ 435,567  
Accounts payable and accrued expenses - related parties     815,091       3,043,282  
Billings in excess of costs and estimated earnings     101,864       -  
Derivative liability     81,739       60,356  
Notes payable     137,500       132,500  
Notes payable - related parties     195,464       525  
Convertible debt     143,031       189,366  
Convertible debt - related parties, net of discount of $20,931     195,017       44,394  
Total Current Liabilities     2,151,994       3,905,990  
                 
Long Term Liabilities                
Notes payable - related parties   $ 2,053,582     $ -  
Convertible debt, net of discount of $23,321     1,679       -  
Convertible debt - related parties, net of discount of $46,293     103,707       -  
Other     44       -  
Other - related parties     3,015       -  
Total Long Term Liabilities     2,162,027       -  
                 
Total Liabilities     4,314,021       3,905,990  
                 
Stockholders’ Deficit                
Preferred stock, $1 par value; 10,000 shares authorized; 1 share issued and outstanding     1       1  
Common stock, $0.0001 par value, 100,000,000 shares authorized; 47,107,680 and 42,107,680 shares issued and outstanding     4,712       4,212  
Additional paid-in capital     5,339,729       4,013,145  
Accumulated deficit     (9,232,063 )     (7,891,546 )
Total Stockholders’ Deficit     (3,887,621 )     (3,874,188 )
                 
Total Liabilities and Stockholders’ Deficit   $ 426,400     $ 31,802  

 

See accompanying notes to unaudited consolidated financial statements

 

4
 

 

BioPower Operations Corporation and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

 

    Three Months Ended May 31,     Six Months Ended May 31,  
    2016     2015     2016     2015  
Revenues                                
Construction management fees   $ 239,783     $ -     $ 239,783     $ -  
Consulting income     31,460       17,363       31,460       17,363  
Total revenues     271,243       17,363       271,243       17,363  
                                 
Costs of services     231,177       -       231,177       -  
                                 
Gross profit     40,066       17,363       40,066       17,363  
                                 
General and administrative expenses     347,326       526,217       1,334,002       1,014,602  
Loss from operations     (307,260 )     (508,854 )     (1,293,936 )     (997,239 )
                                 
Other income (expense)                                
Interest expense     (4,951 )     (5,408 )     (54,149 )     (9,333 )
Interest expense - related party     (23,985 )     (2,747 )     (41,760 )     (4,830 )
Gain on derivatives     15,088       -       49,328       -  
Total other income (expense) - net     (13,848 )     (8,155 )     (46,581 )     (14,163 )
                                 
Net loss   $ (321,108 )   $ (517,009 )   $ (1,340,517 )   $ (1,011,402 )
                                 
Net loss per common share - basic and diluted   $ (0.01 )   $ (0.01 )   $ (0.03 )   $ (0.02 )
                                 
Weighted average number of common shares outstanding during the period - basic and diluted     47,107,680       41,623,880       44,757,949       41,499,060  

 

See accompanying notes to unaudited consolidated financial statements

 

5
 

 

BioPower Operations Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

 

    Six Months Ended May,  
    2016     2015  
             
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net loss   $ (1,340,517 )   $ (1,011,402 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation     2,590       6,170  
Stock-based compensation expense     500,000       2,500  
Loss on sale of equipment     -       4,183  
Amortization of debt discount     72,218       5,166  
(Gain) loss on derivatives     (49,328 )     -  
Changes in operating assets and liabilities:                
Accounts receivable     (317,250 )     -  

Retainage receivable

    (33,250 )     -  
Prepaid expenses and other current assets     11,609       2,953  
Accounts payable and accrued expenses     67,268       9,862  
Accounts payable and accrued expenses - related parties     640,095       874,977  
Billings in excess of costs and estimated earnings     101,864       -  
Other liabilities     44       -  
Other liabilities - related parties     3,015       -  
Net Cash Used In Operating Activities     (341,642 )     (105,591 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Proceeds from convertible debt     25,000       22,500  
Proceeds from convertible debt - related parties     175,000       -  
Proceeds from notes payable     5,000       22,500  
Proceeds from notes payable - related parties     194,939       -  
Repayment notes payable - related parties     -       (850 )
Proceeds from issuance of common stock     -       60,000  
Net Cash Provided By Financing Activities     399,939       104,150  
                 
Net (Decrease) Increase in Cash     58,297       (1,441 )
                 
Cash - Beginning of Period     1,281       15,118  
                 
Cash - End of Period   $ 59,578     $ 13,677  
                 
SUPPLEMENTARY CASH FLOW INFORMATION:                
Cash Paid During the Period for:                
Income Taxes   $ -     $ -  
Interest   $ -     $ -  
                 
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                
Related party accounts payable settled by sale of asset to related party   $ -     $ 6,000  
Related party accrued compensation reclassified to additional paid in capital     818,751       -  
Reclassification of accrued expenses to accrued expenses related party     4,047       -  
Related party accrued compensation reclassified to non-convertible debt     2,053,582       -  
Reclassification of convertible debt to convertible debt related party     124,448       -  
Reclassification of note payable from convertible to non convertible     -       62,500  
Reclassification of related note payable from non convertible to convertible     -       22,500  
Debt discount recorded on convertible debt     -       7,000  
Debt discount recorded on convertible debt - related party due to beneficial conversion features     8,333       7,000  
Debt discount recorded on derivative on convertible debt due to derivative liabilities     70,711       -  
Convertible debt issued to pay accounts payable     16,500       -  

 

See accompanying notes to unaudited consolidated financial statements

 

6
 

 

BioPower Operations Corporation and Subsidiaries

Notes to Consolidated Financial Statements

May 31, 2016 and 2015

Unaudited

 

Note 1 Basis of Presentation 

 

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is our opinion, however, that the accompanying unaudited interim consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

 

The accompanying unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended November 30, 2015 as filed with the SEC, which contains the audited financial statements and notes thereto, together with Management’s Discussion and Analysis, for the years ended November 30, 2015 and 2014. The financial information as of May 31, 2016 is derived from the audited financial statements presented in our Annual Report on Form 10-K for the year ended November 30, 2015. The interim results for the three and six months ended May 31, 2016 are not necessarily indicative of the results to be expected for the year ending November 30, 2016 or for any future interim periods.

 

Fair Value of Financial Instruments

 

BioPower evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses and loans  . The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

 

For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.

 

Financial assets and liabilities recorded at fair value in our balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels:

 

Fair Value of Financial Instruments

 

Level 1— Quoted market prices in active markets for identical assets or liabilities at the measurement date.

 

Level 2— Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data.

 

Level 3— Inputs reflecting management’s best estimates and assumptions of what market participants would use in pricing assets or liabilities at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments.

 

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

 

Financial assets and liabilities measured at fair value on a recurring basis are summarized below for the quarter ended November 30, 2015

 

   Level 1   Level 2   Level 3   Total 
Assets                    
Securities -available for sale  $-   $-   $-   $- 
Liabilities                    
Derivative Financial Instruments  $-   $-   $60,356   $60,356 

 

7
 

 

BioPower Operations Corporation and Subsidiaries

Notes to Consolidated Financial Statements

May 31, 2016 and 2015

Unaudited

 

Financial assets and liabilities measured at fair value on a recurring basis are summarized below for the quarter ended May 31, 2016

 

   Level 1   Level 2   Level 3   Total 
Assets                    
Securities -available for sale  $-   $-   $-   $- 
Liabilities                    
Derivative Financial Instruments  $-   $-   $81,739   $81,739 

 

The following table presents details of the Company’s level 3 derivative liabilities as of May 31, 2016 and November 30, 2015:

 

   Amount 
Balance November 30, 2015  $60,356 
Debt discount originated from derivative liabilities   70,711 
Change in fair market value of derivative liabilities   (49,328)
Balance May 31, 2016  $81,739 

 

Revenue Recognition Policy

 

The Company recognizes revenues from construction contracts on the percentage-of-completion method, measured by the percentage of direct labor and material costs to date to estimated total direct labor and material costs for each contract. This method is used because management considers total cost to be the best available measure of progress on the contracts. Because of the inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change in the near term.

 

Contract costs include all direct labor and material cost and those indirect costs related to contract performance. General and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions and estimated profitability may result in revisions to cost and income, which are recognized in the period in which the revisions are determined.

 

The asset, costs and estimated earnings in excess of billings on uncompleted contracts represents revenues recognized in excess of amounts billed. The liability, billings in excess of costs and estimated earnings, represents billing in excess of revenues recognized.

 

Revenues generated from services and consulting agreements are recognized when the services have been performed, all significant contractual obligations have been satisfied and collection of the resulting fees is reasonably assured.

 

8
 

 

Note 2 Going Concern

 

As reflected in the accompanying consolidated financial statements, the Company had a net loss of $1,340,517 and net cash used in operations of $341,642 for the six months ended May 31, 2016. Additionally, the Company had a working capital deficit of $1,740,817and a stockholders’ deficit of $3,887,621at May 31, 2016. These factors raise substantial doubt about the Company’s ability to continue as a going concern. 

 

The ability of the Company to continue as a going concern is dependent on Management’s plans, which include funding of waste to energy projects, implementation of waste remediation projects, further implementation of its business plan and continuing to raise funds through debt and/or equity financings. The Company will likely rely upon debt and/or equity financing in order to ensure the continuing existence of the business.

 

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Note 3 Equipment

 

At May 31, 2016 and November 30, 2015, equipment consists of the following:

 

   2016   2015   Estimated Useful Life
Computer Equipment  $36,800   $36,800   5 years
Less: Accumulated depreciation   (28,514)   (25,924)   
Equipment, net  $8,286   $10,876    

 

Note 4. Notes Payable and Convertible Debt

 

    Balance   Interest Rate   Maturity 
Balance – November 30, 2015     $  132,500    Various     Various 
Borrowings       5,000    8%   June 30, 2016 
Balance – May 31, 2016     $  137,500           

 

In January, 2016 a third party investor advanced $5,000 unsecured at 8% interest , which was due on June 30, 2016 and paid in full as of the due date. 

 

9
 

 

BioPower Operations Corporation and Subsidiaries

Notes to Consolidated Financial Statements

May 31, 2016 and 2015

Unaudited

 

Convertible debt consists of the following:

 

   Balance   Interest Rate   Maturity  Conversion Price 
                
Balance – November 30, 2015  $189,366    8%  In Default   Various
Reclass non related to related   (74,448)   8%  December 30, 2015   0.15 
Reclass non related to related   (50,000)   8%  December 30, 2016   0.15 
Reclass debt discount to related   78,113              
Borrowings   25,000    8%  May 23, 2018   0.10 
Debt discount  on derivative   (23,579)             
Debt discount amortization   258              
Balance – May 31, 2016  $144,710              
                   
Current portion   (143,031)             
                   
Long term portion  $1,679              

 

In February, 2016 a third party investor’s convertible debt totaling $74,448, net of related debt discount of $40,470, was reclassified as related party because during the period, as the investor’s ownership of common stock increased to greater than 10%, which, due to materiality, required his transactions to be reclassified as “related party transactions.”

 

On March 10, 2016, a third party investor’s convertible debt totaling $50,000, net of related debt discount of $37,643, was reclassified as a related party transaction due to the investor being hired as the Company’s Chief Operating Officer and Director of Business Development.

 

On May 23, 2016, the Company entered into convertible debt agreements with a third party investor totaling $25,000 at 8% interest, due on May 23, 2018. The debt is convertible into common shares of stock at a conversion price of $.10 per share. On this date the Company recorded a debt discount of $23,579 from the initial valuation of the derivative liability of $23,579 and resulting in no initial gain or loss on the derivative liability based on the Black Sholes pricing model. The fair value of the derivative liability at May 31, 2016 is $23,579. The note is shown net of a derivative debt discount of $23,321 at May 31, 2016.

 

Accrued interest on notes payable and convertible debt at May 31, 2016 and November 30, 2015 amounted to $32,611 and $23,316, respectively, which is included as a component of accounts payable and accrued expenses.

 

Interest expense on notes payable and convertible debt with third parties amounted to $6,496 and $5,330 for the three months ended May 31, 2016 and 2015, respectively.

 

Note 5. Related Party Transactions

 

Notes payable to related parties consists of the following:

 

   Balance   Interest Rate   Maturity
Balance – November 30, 2015  $525    0%  On Demand
Borrowings   194,939    12%  May 30, 2016
Reclass accrued compensation   874,000    4%  December 1, 2017
Reclass accrued compensation   669,582    4%  December 1, 2017
Reclass accrued compensation   150,000    4%  December 1, 2017
Reclass accrued compensation   120,000    4%  December 1, 2017
Reclass accrued compensation   120,000    4%  December 1, 2017
Reclass accrued compensation   120,000    4%  December 1, 2017
Balance – May 31, 2016  $2,249,046         
              
Current portion   (195,464)        
              
Long term portion  $2,053,582         

 

10
 

 

BioPower Operations Corporation and Subsidiaries

Notes to Consolidated Financial Statements

May 31, 2016 and 2015

Unaudited

 

In April, 2016 the Chief Operating Officer made an advance of $194,939 to a subsidiary of the Company, bearing interest at 12% which is due May 30, 2016. The $194,939 non-convertible advance included an additional $15,000 payment as Profit Participation for work rendered. The agreement included a provision where the Company agreed that in the event that the Investor had not been repaid within 75 days from date of delivery of Equipment then Investor shall receive a penalty of 3,000,000 shares of BioPower Common Stock in consideration for the delay in payment. The Investor was repaid in full on June 30, 2016.

 

On May 27, 2016 the Chief Executive Officer agreed to reduce his accrued compensation by $206,250 as a contribution to additional paid in capital. He also agreed to reclassify $874,000 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

On May 27, 2016 the Director of Strategy agreed to reduce her accrued compensation by $206,250 as a contribution to additional paid in capital. She also agreed to reclassify $669,582 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

On May 27, 2016 the Chief Executive Officer of G3P agreed to reduce his accrued compensation by $243,750 as a contribution to additional paid in capital. He also agreed to reclassify $150,000 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

On May 27, 2016 the Senior Vice President of G3P agreed to reduce his accrued compensation by $162,500 as a contribution to additional paid in capital. He also agreed to reclassify $120,000 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

On May 27, 2016 the Chief Operating Officer of G3P agreed to reclassify $120,000 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

On May 27, 2016 the Chief Administrative Officer of G3P agreed to reclassify $120,000 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

11
 

 

BioPower Operations Corporation and Subsidiaries

Notes to Consolidated Financial Statements

May 31, 2016 and 2015

Unaudited

 

Convertible debt to related parties consists of the following:

 

    Balance    Interest Rate    Maturity    Conversion Price 
                     
Balance – November 30, 2015  $44,394    8%   December 30, 2015    0.15 
Reclass non related to related   74,448    8%   December 30, 2015    0.15 
Reclass non related to related   50,000    8%   December 30, 2016    0.15 
Reclass debt discount to related   (78,113)               
Borrowings   25,000    8%   June 15, 2016    0.15 
Debt discount on convertible debt   (8333)               
Accounts payable settlement   16,500    8%   June 17, 2016    0.15 
Borrowings   100,000    8%   March 2, 2018    0.15 
Borrowings   50,000    8%   May 18, 2018    0.10 
Debt discount on derivative   (47,132)               
Debt discount amortization   (71,960)               
Balance – May 31, 2016  $298,724                
                     
Current portion   (195,017)               
                     
Long term portion  $103,707                

 

On December 15, 2015 a related party investor advanced $25,000 due on or before June 15, 2016. Pursuant to the agreement, the investor is allowed to convert 100% of the debt at a share price of $0.15. The company accounted for the conversion of loan in accordance with ASC 470, “Debt with Conversion and Other Options”. The loan was deemed to have a beneficial conversion feature because the fair value of the stock exceeded the effective conversion price embedded in the loan on the commitment date. Accordingly, the Company recorded the value of the beneficial conversion feature, which was determined to be $8,333 as a discount to the loan and a corresponding increase to additional paid in capital.

 

On February 18, 2016 a related party investor settled $16,500 in accounts payable for the Company in exchange for debt du  e on or before June 17, 2016. Pursuant to the agreement, the investor is allowed to convert 100% of the debt at a share price of $0.15. The company accounted for the conversion of the debit in accordance with ASC 470, “Debt with Conversion and Other Options”. The fair market value of the shares on February 18, 2016 was $0.10 per share and accordingly deemed to have no Beneficial Conversion Factor.

 

In March, 2016 the Chief Operating Officer made a loan of $100,000, bearing interest at 8% due on or before March 2, 2018. Pursuant to the agreement, the investor is allowed to convert 100% of the debt on the maturity date at a share price of $0.15. The company accounted for the conversion of loan in accordance with ASC 470, “Debt with Conversion and Other Options”.  The fair market value of the shares on March 2, 2016 was $0.10 per share and accordingly deemed to have no Beneficial Conversion Factor. On May 18, 2016 the Officer loaned an additional $50,000 with conversion rights at $0.10 per share. Therefore, effective May 18, 2016, $50,000 of the officers’ note payable had conversion rights of $0.10 per share. The company accounted for the conversion of loan in accordance with ASC 470, “Debt with Conversion and Other Options”. The fair market value of the shares on May 18, 2016 was $0.10 per share and accordingly deemed to have no Beneficial Conversion Factor. On May 23, 2016, a third party investor loaned the company $25,000 with conversion rights at $0.10 per share. Therefore, effective May 23, 2016, an additional $25,000 of the officers’ $100,000 note payable had conversion rights of $0.10 per share. The company accounted for the conversion of loan in accordance with ASC 470, “Debt with Conversion and Other Options”. The fair market value of the shares on May 18, 2016 was $0.10 per share and accordingly deemed to have no Beneficial Conversion Factor.

 

In May, 2016 the Chief Operating Officer made a loan of $50,000, bearing interest at 8% due on or before May 18, 2018. Pursuant to the agreement, the investor is allowed to convert 100% of the debt at a share price of $0.10 . The loan includes a provision for matching future conversion rights with any new loans made by the Company with the exception of a Right of First Refusal. In addition, if an equity transaction is done at a price below $0.10  then the conversion price will adjust to such price. The company accounted for the conversion of loan in accordance with ASC 470, “Debt with Conversion and Other Options”. The fair market value of the shares on May 18, 2016 was $0.10 per share and accordingly deemed to have no Beneficial Conversion Factor.

 

Accrued interest on related party notes payable and convertible debt at May 31, 2016 and November 30, 2015, amounted to $19,101 and $4,250, respectively and is a component of accounts payable and accrued expenses – related parties.

 

Interest expense on notes payable and convertible debt with related parties amounted to $8,881 and $2,747 for the three months ended May 31, 2016 and 2015, respectively.

 

12
 

 

BioPower Operations Corporation and Subsidiaries

Notes to Consolidated Financial Statements

May 31, 2016 and 2015

Unaudited

 

The Company has separated accounts payable and accrued expenses on the balance sheet to reflect amounts due to related parties primarily consisting of officer compensation, health insurance, interest on notes and reimbursable expenses to officers for travel, meals and entertainment, vehicle and other related business expenses.

 

Note 6. Derivative Liabilities

 

On July 23, 2015, the Company entered into a convertible loan agreement with an investor. The Company received a total of $50,000 which bears interest at 8% per annum and is due on December 30, 2016. Interest shall accrue from the advancement date and shall be payable on December 30, 2016. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of $0.15 per share. If an equity transaction occurs at a price below $0.15, then the conversion price will adjust to such price.

 

On this date of issuance, the Company recorded a debt discount in the amount of $50,000 in connection with the initial valuation of the derivative liability of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $111,074 and initial loss on derivative liability of $61,074 based on the Black Scholes pricing model. As of May 31, 2016, $29,752  of the debt discount has been amortized. The fair value of the derivative liability at May 31, 2016 is $11,046 resulting in a gain on the change in fair value of the derivative of $49,310. The Note is shown net of a derivative debt discount of $20,247  at May 31, 2016.

 

Since equity classification is not available for the conversion feature, we were required to bifurcate the embedded conversion feature and carry it as a derivative liability, at fair value. Derivative financial instrument is carried initially and subsequently at its fair values.

 

We estimated the fair value of the derivative on the inception date, and subsequently, using the Black-Scholes valuation technique, adjusted for the effect of dilution, because that technique embodies all of the assumptions (including, volatility, expected terms, and risk free rates) that are necessary to fair value complex derivate instruments.

 

As a result of the application of ASC No. 815 in period ended May 31, 2016 the fair value of the conversion feature is summarized as follows:

 

   Amount 
Balance November 30, 2015  $60,356 
Change in fair market value of derivative liabilities   (49,310)
Balance May 31, 2016  $11,046 

 

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of May 31, 2016 and commitment date:

 

   Commitment Date   May 31, 2016 
Expected dividends   -    - 
Expected volatility   296.84%   153.55%
Expect term   1.44    .58 
Risk free interest rate   0.33%   0.68%

 

On May 18, 2016, the Company entered into a convertible loan agreement with a related party investor. The Company received a total of $50,000 which bears interest at 8% per annum and is due on May 18, 2018. Interest shall accrue from the advancement date and shall be payable on May 18, 2018. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of $0.10 per share. If an equity transaction occurs at a price below $0.10, then the conversion price will adjust to such price.

 

On this date of issuance, the Company recorded a debt discount in the amount of $47,132 in connection with the initial valuation of the derivative liability of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $47,132 resulting in no initial gain or loss on the derivative liability based on the Black Scholes pricing model. As of May 31, 2016, $839 of the debt discount has been amortized. The fair value of the derivative liability at May 31, 2016 is $47,114 resulting in a gain on the change in fair value of the derivative of $18. The Note is shown net of a derivative debt discount of $46,293 at May 31, 2016. (See Note 4 –Convertible Debt).

 

13
 

 

BioPower Operations Corporation and Subsidiaries

Notes to Consolidated Financial Statements

May 31, 2016 and 2015

Unaudited

 

Since equity classification is not available for the conversion feature, we were required to bifurcate the embedded conversion feature and carry it as a derivative liability, at fair value. Derivative financial instrument is carried initially and subsequently at its fair values.

 

We estimated the fair value of the derivative on the inception date, and subsequently, using the Black-Scholes valuation technique, adjusted for the effect of dilution, because that technique embodies all of the assumptions (including, volatility, expected terms, and risk free rates) that are necessary to fair value complex derivate instruments.

 

As a result of the application of ASC No. 815 in period ended May 31, 2016 the fair value of the conversion feature is summarized as follows:

 

   Amount 
Balance November 30, 2015  $- 
Debt discount originated from derivative liabilities   47,132 
Change in fair market value of derivative liabilities   (18)
Balance May 31, 2016  $47,114 

 

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of May 31, 2016 and commitment date:

 

   Commitment Date   May 31, 2016 
Expected dividends   -    - 
Expected volatility   268.40%   270.72%
Expect term   2.00    1.96 
Risk free interest rate   0.63%   0.68%

 

On May 23, 2016, the Company entered into a convertible loan agreement with a third party investor. The Company received a total of $25,000 which bears interest at 8% per annum and is due on May 23, 2018. Interest shall accrue from the advancement date and shall be payable on May 23, 2018. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of $0.10 per share. If an equity transaction occurs at a price below $0.10, then the conversion price will adjust to such price.

 

On this date of issuance, the Company recorded a debt discount in the amount of $23,579 in connection with the initial valuation of the derivative liability of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $23,579 resulting in no initial gain or loss on the derivative liability based on the Black Scholes pricing model. As of May 31, 2016, $258 of the debt discount has been amortized. The fair value of the derivative liability at May 31, 2016 is $23,579. The Note is shown net of a derivative debt discount of $23,321 at May 31, 2016. (See Note 4 –Convertible Debt).

 

Since equity classification is not available for the conversion feature, we were required to bifurcate the embedded conversion feature and carry it as a derivative liability, at fair value. Derivative financial instrument is carried initially and subsequently at its fair values.

 

We estimated the fair value of the derivative on the inception date, and subsequently, using the Black-Scholes valuation technique, adjusted for the effect of dilution, because that technique embodies all of the assumptions (including, volatility, expected terms, and risk free rates) that are necessary to fair value complex derivate instruments.

 

14
 

 

BioPower Operations Corporation and Subsidiaries

Notes to Consolidated Financial Statements

May 31, 2016 and 2015

Unaudited

 

As a result of the application of ASC No. 815 in period ended May 31, 2016 the fair value of the conversion feature is summarized as follows:

 

    Amount 
Balance November 30, 2015  $- 
Debt discount originated from derivative liabilities   23,579 
Change in fair market value of derivative liabilities   - 
Balance May 31, 2016  $23,579 

 

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of May 31, 2016 and commitment date:

 

    Commitment Date    May 31, 2016 
Expected dividends   -    - 
Expected volatility   268.94%   270.29%
Expect term   2.00    1.98 
Risk free interest rate   0.69%   0.68%

 

Note 7. Stockholders’ Deficit

 

For the six months ended May 31, 2016:

 

On February 24, 2016, the Board of Directors approved the following stock compensation because the Company did not making any cash payments toward salary during the year ended November 30, 2015. The stock compensation is to be paid by November 30, 2016 provided the Company has revenues from operations that can provide for the taxes due for the stock compensation, or the stock will be returned to the Company. The stock will be issued and held by the Transfer Agent until November 30, 2016 and then returned to the Company or distributed to the employee. The employee has the option to pay the Company for the employer taxes due and their own taxes due for the stock compensation on or before November 30, 2016.

 

The company fair valued these shares as of the date of issuance and recorded $500,000 stock-based compensation during the first quarter ended February 29, 2016.

 

Dr. Neil Williams, CEO G3P 2,000,000   common stock shares
Robert Kohn, CEO BioPower 1,250,000   common stock shares
Bonnie Nelson, Director of Strategy 1,250,000   common stock shares
Benjamin Williams, Sr. Vice President  500,000   common stock shares
Total 5,000,000   common stock shares

 

On March 2, 2016, the Company authorized the issuance of 3,000,000 shares of its common stock, as part of Mr. Baruch Halpern’s Employment contract, to remain in the possession of the Transfer Agent for one year. The 3,000,000 common shares will be released to Mr. Halpern after one year as long as he does not voluntarily resign. At that time a standard two-year lock-up agreement will also be executed. If Mr. Halpern voluntarily resigns before his first anniversary, there will be a claw-back of 2,250,000 common shares and Mr. Halpern will be issued the remaining 750,000 common shares with a two-year lock-up agreement.  

 

There are 47,107,680 and 42,107,680 shares issued and outstanding at May 31, 2016 and November 30, 2015, respectively.

 

15
 

 

BioPower Operations Corporation and Subsidiaries

Notes to Consolidated Financial Statements

May 31, 2016 and 2015

Unaudited

 

Note 8. Commitments and Contingencies

 

Commitments

 

Employment Agreements – Officers and Directors

 

As of November 30, 2014, the Company had employment agreements with certain officers and directors (two individuals) containing the following provisions:

 

Term of contract   4 years, expiring on November 30, 2018
Salary   $275,000 commencing December 1, 2014
Salary deferral   All salaries will be accrued but may be paid from the Company’s available cash flow funds.

 

Annual Salaries:

 

Name 

Starting Dc. 1, 2014

   2014-15   2015-2016   2016-2017 
Robert Kohn      $275,000   $325,000   $375,000 
Bonnie Nelson       $275,000   $325,000   $375,000 

 

As of May 20, 2016 the salaries have been amended to $120,000 each per annum until financing for a second project is committed. These salary levels will be retroactive to December 1, 2014.

 

On March 10 , 2016, the Company employed Mr. Baruch Halpern join as its’ Chief Operating Officer containing the following provisions:

 

Term of contract   2 years and 5 months, expiring on August 10, 2018
Salary   $120,000 commencing March 10, 2016
Salary deferral   All salaries will be accrued but may be paid from the Company’s available cash flow funds.

 

The accrued officers and directors payroll at May 31, 2016 is $377,000.  

 

Lease Agreement

 

On June 3, 2013, the Company entered into a new lease agreement with its current landlord. The lease is for a 24 month period, expiring on May 31, 2015 , and requires monthly base rental payments of $ 4,000 for the period from June 1, 2013 through May 31, 2014 and $ 4,080 for the period from June 1, 2014 through May 31, 2015 plus adjustments for Common Area Expenses. On May 29, 2015, the Company Amended the lease agreement extending it for an additional 12 month period, expiring on May 31, 2016, and requiring monthly base rental payments of $4,583 plus adjustments for Common Area Expenses. On May 23, 2016, the Company amended the lease agreement extending it on a month to month basis. The required monthly base rental payments were kept the same.

 

Rent expense was $28,210 and $25,425 for the six month period ended May 31, 2016 and May 31, 2015, respectively.

 

Contingencies

 

From time to time, the Company may be involved in legal matters arising in the ordinary course of business. While the Company believes that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which the Company is, or could be, involved in litigation, will not have a material adverse effect on its business, financial condition or results of operations.

 

Note 9. Subsequent Events

 

On May 31, 2016 a third party investor entered into an agreement to loan $200,000 to the Company, due on or before May 31, 2018. Pursuant to the agreement, the investor is allowed to convert 100% of the debt at a share price of $0.10. The funds were not received until June, 2016 and accordingly were not accounted for in the current period.

 

16
 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

FORWARD LOOKING STATEMENTS AND ASSOCIATED RISK

 

The information contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) is intended to update the information contained in our Annual Report on Form 10-K for the year ended November 30, 2015 (our “2015 Annual Report”) and presumes that readers have access to, and will have read, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information contained in our 2015 Annual Report. The following discussion and analysis also should be read together with our consolidated financial statements and the notes to the consolidated financial statements included elsewhere in this Quarterly Report.

 

This discussion summarizes the significant factors affecting the consolidated operating results, financial condition and liquidity and cash flows of BioPower Operations Corp. for the three and six months ended May 31, 2016 and 2015. Except for historical information, the matters discussed in this Management’s Discussion and Analysis of Financial Condition and Results of Operations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” and similar expressions. Forward-looking statements involve risks and uncertainties and are based upon judgments concerning various factors that are beyond our control. Forward-looking statements are based on current expectations and assumptions and actual results could differ materially from those projected in the forward-looking statements as a result of, among other things, those factors set forth in “Risk Factors” contained in Item 1A of our 2015 Annual Report.

 

Throughout this Quarterly Report, the terms “we,” “us” and “our” refers to BioPower Operations Corporation and, Unless the context otherwise requires, The “Company”, “we,” “us,” and “our,” refer to (i) BioPower Operations Corporation.; (ii) BioPower Corporation (“BC”), Green3Power Holdings Company and its subsidiaries (“G3P”), and FTZ Energy Corporation. Unless otherwise indicated, all monetary amounts are reflected in United States Dollars.

 

Overview

 

From inception (September 13, 2010) to November 30, 2014, the Company focused on growing biomass crops coupled with the project development of processing and/or conversion facilities to produce oils, biofuels, electricity and other biomass products. We also intended to utilize licensed patented technology to convert biomass wastes into products and reduce the amount of waste going to landfills. We are organized as a holding company. On October 24, 2014, the Company executed a Share Exchange Agreement with Green3Power Holdings Company (“G3P”) to acquire G3P and its wholly-owned subsidiaries Green3Power Operations Inc., a Delaware corporation (“G3P OPS”) and Green3Power International Company, a Nevis Corporation (“G3PI”), which are wholly-owned subsidiaries of the Company. This transaction was a stock for stock exchange, (See Share exchange Agreement). We conduct all of our operations through Green3Power Holdings Company and their subsidiaries which are primarily engaged in the development of Renewable Waste-to-Energy (WtE) Facilities using their unique turnkey exclusive global license to the gasification technology to convert wastes into electricity and ultra-low sulfur renewable fuels. G3P intends to design, permit, procure equipment, manage construction and provide operations and maintenance of the intended facilities. We intend to hold equity interests in the waste-to-energy facilities on a global basis.

 

We will also provide waste remediation services on a global basis. Remediation waste is defined in 40 Code of Federal Regulations (CFR) 260.10 as “all solid and hazardous wastes, and all media (including groundwater, surface water, soils, and sediments) and debris, that are managed for implementing cleanup.”

 

On August 4, 2015 the St. Lucie County Commissioners approved the contract and its revisions with G3P to build a $175 Million Renewable Energy Facility on the St. Lucie County, Florida landfill using the G3P Gasification Technology. The contract provides for a 20 year waste stream of 1,000 tons per day of municipal solid waste, construction and demolition waste, green waste and tires. The facility will convert the waste into approximately 60,000 gallons per day of ultra-low sulfur renewable synthetic fuel and 20,000 gallons of Naptha. Vanderweil Engineers and G3P have completed the Site Plan and are putting together the necessary documentation for permit applications. There can be no assurance that G3P will successfully fund the $175 Million facility.

 

Strategy

 

Our mission is to provide waste and energy solutions on a global basis. We intend to do this through a variety of service offerings, including partially owning and operating and maintaining facilities for the conversion of waste to energy (known as “Waste-to-Energy” or “WtE”). Waste-to-Energy serves two key markets as both an on-going waste management solution that is environmentally superior to landfilling and as a source of clean energy that reduces overall greenhouse gas emissions.

 

17
 

 

We intend to use the following key strategies:

 

Our exclusively licensed gasification technology can convert a variety of wastes into electricity or ultra-low sulfur, renewable synthetic fuel. The technology is modular and built to handle approximately 300 to 400 tons per day of waste per line of equipment. We can only use up to twelve (12) lines of equipment at a facility location because of the constraints of truck traffic per location. Because our licensed gasification is built in a series of lines, we are able to service and maintain the lines and systems while operating the facilities continuously.
   
The Company intends to earn revenues from design, engineering, permitting, operations and maintenance fees and may also earn procurement fees from WtE projects.
   
We have strategically aligned with Vanderweil Engineers to develop WtE facilities in the United States and internationally. Vanderweil has been in business since 1950 and its Power Engineering group is expert at developing, designing, engineering and permitting power generation facilities worldwide.
   
The Company intends to maintain an equity interest of between twenty percent (20%) to one hundred percent (100%) in each of its developed projects.
   
We have partnered and will partner with project development groups globally who have been in different stages of development of WtE projects.
   
We intend to maximize the long-term value of WtE facilities by adding waste and off-take energy contracts, seeking incremental revenue opportunities and deploying new or improved technologies, systems and processes targeted at increasing revenue and reducing costs.
   
We seek to grow primarily through the development of new facilities selected in markets where we believe that the tipping fees and off-take agreements will enable us to secure funding for the projects. We believe that our approach to these opportunities is highly-disciplined, both with regard to our required rates of return, necessary contract elements, regulatory issues and the manner in which potential new projects will be structured and financed.
   
We intend to provide waste remediation services on a global basis by working with local contractors.

 

Our corporate headquarters are located at 1000 Corporate Drive, Suite 200, Fort Lauderdale, Florida 33334 and our phone number is (954) 202-6660. Our website can be found at www.wtepower.com. The information on our website is not incorporated in this report. 

 

Our Business

 

Our Waste-to-Energy Business

 

The WtE facilities we intend to build may earn revenue from the following potential revenue streams:

 

Prior to the start-up of the facility:

 

Design fees
   
Engineering fees
   
Permitting fees
   
Procurement of equipment fees (usually 10% of the cost of equipment)
   
Management of construction fees

 

We will always have an Operations and Maintenance Agreement to operate and maintain the facility for a minimum of fifteen years, for each facility using our technology, with or without ownership in the facility.

 

After the start-up of a facility if we are an equity owner in the facility, we may earn:

 

Tipping fees from the disposal and processing of each ton of waste – Waste Agreement usually twenty to thirty years; and
   
Sale of electricity – Power Purchase Agreement (PPA) usually twenty to thirty years; or
   
Sale of ultra-low sulfur renewable synthetic fuel (usually one year renewable to fifteen year);
   
Recyclables recovered during the WtE process;
   
Carbon credits, if available;
   
RINS – Renewable Identification Number under the Renewable Fuel Standard Program, good until 2022 and in California to 2033.

 

In order to finance projects through traditional project finance, long-term contracts (off-take agreements) need to be executed for the sale of electricity or fuels in combination with a waste contract. There can be no assurance we will ever fund a facility, bring the development of a WtE facility into operation, partially own a WtE facility or operate and maintain a WtE facility.

 

We have generated minimal revenues from business operations. Therefore, our auditors have issued a going concern opinion. This means there is substantial doubt that we can continue as an on-going business for the next twelve (12) months unless we obtain additional capital to pay our bills. Because we have not generated enough revenues from operations combined with the revenues anticipated until we finance our first waste-to-energy facility. Accordingly, we must raise cash from sources other than revenues generated such as from the proceeds of loans, sale of common shares and advances or loans from related parties.

 

18
 

 

Licensed Technologies

 

Green3Power Holdings Company – Licensed gasification technology for Waste-to-Energy Conversion

 

G3P has an exclusive global License for the use of the technologies and processes for building gasification facilities to convert wastes into electricity and synthetic fuels. Once the royalties paid for the use of these technologies equal $10,000,000, G3P will then own 100% of the technologies and processes without any further license fees. The initial license fees are paid based upon gross revenues of the facilities and their waste conversion operations using the gasification technologies and processes.

 

Critical Accounting Policies

 

In response to financial reporting release FR-60, Cautionary Advice Regarding Disclosure About Critical Accounting Policies, from the SEC, we have selected our more subjective accounting estimation processes for purposes of explaining the methodology used in calculating the estimate, in addition to the inherent uncertainties pertaining to the estimate and the possible effects on the our financial condition. The accounting estimates involve certain assumptions that, if incorrect, could have a material adverse impact on our results of operations and financial condition. Our more significant accounting policies can be found Note 1 of our unaudited interim consolidated financial statements found elsewhere in this report and in our Annual Report on Form 10-K for the year ended November 30, 2015, as filed with the SEC. There have been no material changes to our critical accounting policies during the period covered by this report.

 

Results of Operations

 

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect that we will require additional capital to meet our operating requirements. We expect to raise additional capital through, among other things, the sale of equity and/or debt securities.

 

Three and Six Months Ended May 31, 2016 Compared to the Three and Six Months Ended May 31, 2015

 

The following tables set forth, for the periods indicated, results of operations information from our unaudited interim consolidated financial statements:

 

   Three Months Ended May 31,   Change   Change 
   2016   2015   (Dollars)   (Percentage) 
                 
Revenues                    
Construction management fees  $239,783   $-   $239,783    100.0%
Consulting income   31,460    17,363    14,097    81.2%
Total revenues   271,243    17,363    253,880    1,462.2%
                     
Costs of services   231,177    -    231,177    100.0%
                     
Gross profit   40,066    17,363    22,903    133.5%
                     
Expenses                    
General and administrative expenses  $347,326   $526,217   $178,891    34.0%
                     
Loss from operations   (307,260)   (508,854)   201,594    39.6%
                     
Other Income (Expense)                    
Interest expense   (4,951)   (5,408)   457    8.4%
Interest expense - related party   (23,985)   (2,747)   (21,238)   (773.1)%
Gain on derivatives   15,088    -    15,088    100.0%
                     
Total Other Income (expense) - net   (13,848)   (8,155)   (5,693)   (69.8)%
                     
Net loss  $(321,108)  $(517,009)  $195,901    37.9%

 

19
 

 

   Six Months Ended May 31,   Change   Change 
   2016   2015   (Dollars)   (Percentage) 
                 
Revenues                    
Construction management fees  $239,783   $-   $239,783    100.0%
Consulting income   31,460    17,363    14,097    81.2%
Total revenues   271,243    17,363    253,880    1,462.2%
                     
Costs of services   231,177    -    231,177    100.0%
                     
Gross profit   40,066    17,363    22,703    130.8%
                     
Expenses                    
General and administrative expenses  $1,334,002   $1,014,062   $(319,940)   (31.5)%
                     
Loss from operations   (1,293,936)   (997,239)   (296,697)   (29.8)%
                     
Other Income (Expense)                    
Interest expense   (54,149)   (9,333)   (44,816)   (479.9)%
Interest expense - related party   (41,760)   (4,830)   (36,930)   (764.6)%
Gain on derivatives   49,328    -    49,328    100.0%
                     
Total Other Income (expense) - net   (46,581)   (14,163)   (32,418)   (228.9)%
                     
Net loss  $(1,340,517)  $(1,011,402)  $(329,115)   (32.5)%

 

Revenues. During the three and six months ended May 31, 2016 and 2015, the Company recognized $239,783 and $0, respectively; in gross revenue relating to construction management. During the three and six months ended May 31, 2016 and 2015, the Company recognized $31,460 and $17,363, respectively; in gross revenues relating to consulting.

 

Costs of services. During the three and six months ended May 31, 2016 and 2015, the Company recognized $231,177 and $0, respectively; in costs relating to construction management.

 

Gross profit. During the three and six months ended May 31, 2016 and 2015, the Company reported $40,066 and $0, respectively; in gross profit from construction management projects.

 

General and Administrative Expenses. Our general and administrative expenses are mainly comprised of compensation expense, corporate overhead, development costs, and financial and administrative contracted services for professional services including legal and accounting, SEC filing fees, and insurance. The decrease in our general and administrative expenses during the three months ended May 31, 2016 as compared to the same period in 2015 is primarily attributable to the decreased compensation expense (see Note 8 – Commitments and Contingencies). The increase in our general and administrative expenses during the six months ended May 31, 2016 as compared to the same period in 2015 is primarily due to the addition of the four G3P officers and stock based compensation.

 

Interest Expense. Interest expense for the three and six months ended May 31, 2016 and 2015 primarily represents the accretion of debt discount to interest expense on our outstanding debt, as well as contractual interest expense on our notes payable and convertible debt.

 

Gain on Derivatives. The Company reported $15,088 and $49,328 gains on derivatives during the three and six months ended May 31, 2016, respectively.

 

Liquidity and Financial Condition

 

   Six Months Ended May 31, 
Category  2016   2015 
         
Net cash used in operating activities  $(341,642)  $(105,591)
           
Net cash provided by financing activities   399,939    104,150 
           
Net increase (decrease) in cash  $58,297   $(1,441)

 

20
 

 

Cash Flows from Operating Activities

 

Net cash used in operating activities was $341,642 for the six months ended May 31, 2016, compared with $105,591 for the comparable period in 2015. Net cash used in operating activities for the six months ended May 31, 2016 is mainly attributable to our net loss of $1,340,517, offset by an increase in accounts payable and accrued expenses. Net cash used in operating activities for the six months ended May 31, 2015 is mainly attributable to our net loss of $1,011,402, offset by an increase in accounts payable and accrued expenses

 

Cash Flows from Financing Activities

 

We have financed our operations primarily from either advancements or the issuance of equity and debt instruments. For the six months ended May 31, 2016 cash flows provided by financing activities was $399,939, compared to $104,150 for the comparable period in 2015. We received $399,939 in proceeds from convertible debt and notes payable with third parties and related parties during the six months ended May 31, 2016, compared to $45,000 in proceeds from convertible debt and notes payable with third parties during the six months ended May 31, 2015. Management is seeking, and expects to continue to seek to raise additional capital through equity and/or debt financings, including through one or more equity or debt financings to fund its operations, and pay amounts due to its creditors and employees. However, there can be no assurance that the Company will be able to raise such additional equity or debt financing or obtain such bank borrowings on terms satisfactory to the Company or at all.

 

The Company does not currently have sufficient resources to cover on-going expenses and expansion. As of May 31, 2016, the Company had cash of $59,578 and current liabilities of $2,151,994. Our current liabilities include accounts payable and accrued expenses to related parties of $815,091. We have historically financed our operations primarily through private placements of common stock, loans from third parties and loans from our Officers. We plan on raising additional funds from investors to implement our business model. In the event we are unsuccessful, this will have a negative impact on our operations.

 

As reflected in the accompanying unaudited interim consolidated financial statements, the Company has a net loss of $1,340,517 and net cash used in operations of $341,642 for the six months ended May 31, 2016; and a working capital deficit of $1,740,817 at May 31, 2016. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

The ability of the Company to continue as a going concern is dependent on Management’s plans, which include potential asset acquisitions, mergers or business combinations with other entities, further implementation of its business plan and continuing to raise funds through debt and/or equity financings. The Company will likely rely upon related party debt and/or equity financing in order to ensure the continuing existence of the business. The financial statements have been prepared assuming that we will continue as a going concern, which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

 

Recent Accounting Pronouncements

 

See Note 3 to our unaudited interim consolidated financial statements regarding recent accounting pronouncements.

 

Off-Balance Sheet Arrangements

 

As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

This item is not applicable to smaller reporting companies.

 

ITEM 4. CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of May 31, 2016, the end of the period covered by this report. Based on, and as of the date of such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of May 31, 2016 such that the information required to be disclosed in our SEC reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

 

Changes in Internal Control Over Financial Reporting

 

There have not been any significant changes in our internal control over financial reporting during the fiscal quarter ended May 31, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

21
 

 

PART II – OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS.

 

From time to time, we are a party to, or otherwise involved in, legal proceedings arising in the normal and ordinary course of business. As of the date of this report, we are not aware of any proceeding, threatened or pending, against us which, if determined adversely, would have a material effect on our business, results of operations, cash flows or financial position.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

 

A $70,000 note due on May 31, 2012 is in default. Management is in discussions with the noteholder to extend payment dates.

 

A $62,500 note due on May 25, 2015 is in default. Management is in discussions with the noteholder to extend payment dates.

 

A total of $267,479.06 notes due on December 30, 2015 are in default. Management is in discussions with the noteholders to extend payment dates.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION.

 

None.

 

ITEM 6. EXHIBITS.

 

The following exhibits are being filed as part of this Quarterly Report on Form 10-Q.

 

Exhibit
Number
  Exhibit Description
     
31.1   Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d- 14(a)
     
32.1   Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d- 14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
101.INS   XBRL Instance Document
     
101.SCH   XBRL Taxonomy Extension Schema Document
     
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
     
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

Copies of this report (including the financial statements) and any of the exhibits referred to above will be furnished at no cost to our shareholders who make a written request to BioPower Operations Corp., 1000 Corporate Drive, Suite 200, Fort Lauderdale, Florida 33334 Attention: Mr. Robert Kohn.

 

22
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

  

  BioPower Operations Corporation
     
Dated: July 20, 2016 By: /s/ Robert D. Kohn
    Robert D. Kohn, Chairman and Chief Executive Officer and Chief Financial Officer

 

23
 

EX-31.1 2 ex31-1.htm

 

EXHIBIT 31.1

 

CERTIFICATION OF

PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

 

I, Robert D. Kohn, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of the Registrant;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. As the Registrant’s certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
     
  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  (c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  (d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. As the Registrant’s certifying officer, I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 20, 2016 BioPower Operations Corporation
     
  By: /s/ ROBERT D. KOHN
    Robert D. Kohn, Chief Executive Officer, Chief Financial Officer, Principal Executive Officer and Director

 

 
 

 

EX-32.1 3 ex32-1.htm

 

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of BioPower Operations Corporation (the “Company”) on Form 10-Q for the quarter ending May 31, 2016, as filed with the Securities and Exchange Commission on the date hereof, I, Robert Kohn, Principal Accounting and Financial Officer, Chief executive Officer, Chief Financial Officer, Secretary and Director of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

  1. The quarterly report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and
     
  2. The information contained in the quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: July 20, 2016 BioPower Operations Corporation
   
  By: /s/ Robert D. Kohn
    Robert D. Kohn, Chairman and Chief Executive Officer and Chief Financial Officer

 

 
 

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Jul. 20, 2016
Document And Entity Information [Abstract]    
Entity Registrant Name Biopower Operations Corp  
Entity Central Index Key 0001510832  
Document Type 10-Q  
Document Period End Date May 31, 2016  
Current Fiscal Year End Date --11-30  
Amendment Flag false  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   47,107,680
Trading Symbol BOPO  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2016  
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Consolidated Balance Sheets - USD ($)
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Nov. 30, 2015
Current Assets    
Cash $ 59,578 $ 1,281
Accounts Receivable 317,250
Retainage Receivable 33,250
Prepaid expenses and other current assets 1,099 12,708
Total Current Assets 411,177 13,989
Equipment - net 8,286 10,876
Security deposit 6,937 6,937
Total Noncurrent Assets 15,223 17,813
Total Assets 426,400 31,802
Current Liabilities    
Accounts payable and accrued expenses 482,288 435,567
Accounts payable and accrued expenses - related parties 815,091 3,043,282
Billings in excess of costs and estimated earnings 101,864
Derivative liability 81,739 60,356
Notes payable 137,500 132,500
Notes payable - related parties 195,464 525
Convertible debt 143,031 189,366
Convertible debt - related parties, net of discount of $20,931 195,017 44,394
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Convertible debt, net of discount of $23,321 1,679
Convertible debt - related parties, net of discount of $46,293 103,707
Other 44
Other - related parties 3,015
Total Long Term Liabilities 2,162,027
Total Liabilities 4,314,021 3,905,990
Stockholders' Deficit    
Preferred stock, $1 par value; 10,000 shares authorized; 1 share issued and outstanding 1 1
Common stock, $0.0001 par value, 100,000,000 shares authorized; 47,107,680 and 42,107,680 shares issued and outstanding 4,712 4,212
Additional paid-in capital 5,339,729 4,013,145
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Total Liabilities and Stockholders' Deficit $ 426,400 $ 31,802
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Nov. 30, 2015
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May 31, 2016
May 31, 2015
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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
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May 31, 2016
May 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,340,517) $ (1,011,402)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 2,590 6,170
Stock-based compensation expense 500,000 2,500
Loss on sale of equipment 4,183
Amortization of debt discount 72,218 5,166
(Gain) loss on derivatives (49,328)
Changes in operating assets and liabilities:    
Accounts receivable (317,250)
Retainage receivable (33,250)
Prepaid expenses and other current assets 11,609 2,953
Accounts payable and accrued expenses 67,268 9,862
Accounts payable and accrued expenses - related parties 640,095 874,977
Billings in excess of costs and estimated earnings 101,864
Other liabilities 44
Other liabilities - related parties 3,015
Net Cash Used In Operating Activities (341,642) (105,591)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from convertible debt 25,000 22,500
Proceeds from convertible debt - related parties 175,000
Proceeds from notes payable 5,000 22,500
Proceeds from notes payable - related parties 194,939
Repayment notes payable - related parties (850)
Proceeds from issuance of common stock 60,000
Net Cash Provided By Financing Activities 399,939 104,150
Net (Decrease) Increase in Cash 58,297 (1,441)
Cash - Beginning of Period 1,281 15,118
Cash - End of Period 59,578 13,677
SUPPLEMENTARY CASH FLOW INFORMATION:    
Income Taxes
Interest
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Related party accounts payable settled by sale of asset to related party 6,000
Related party accrued compensation reclassified to additional paid in capital 818,751
Reclassification of accrued expenses to accrued expenses related party 4,047
Related party accrued compensation reclassified to non-convertible debt 2,053,582
Reclassification of convertible debt to convertible debt related party 124,448
Reclassification of note payable from convertible to non convertible 62,500
Reclassification of related note payable from non convertible to convertible 22,500
Debt discount recorded on convertible debt 7,000
Debt discount recorded on convertible debt - related party due to beneficial conversion features 8,333 7,000
Debt discount recorded on derivative on convertible debt due to derivative liabilities 70,711
Convertible debt issued to pay accounts payable $ 16,500
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Basis of Presentation
6 Months Ended
May 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

Note 1 Basis of Presentation 

 

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is our opinion, however, that the accompanying unaudited interim consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

 

The accompanying unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended November 30, 2015 as filed with the SEC, which contains the audited financial statements and notes thereto, together with Management’s Discussion and Analysis, for the years ended November 30, 2015 and 2014. The financial information as of May 31, 2016 is derived from the audited financial statements presented in our Annual Report on Form 10-K for the year ended November 30, 2015. The interim results for the three and six months ended May 31, 2016 are not necessarily indicative of the results to be expected for the year ending November 30, 2016 or for any future interim periods.

 

Fair Value of Financial Instruments

 

BioPower evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses and loans  . The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

 

For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.

 

Financial assets and liabilities recorded at fair value in our balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels:

 

Fair Value of Financial Instruments

 

Level 1— Quoted market prices in active markets for identical assets or liabilities at the measurement date.

 

Level 2— Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data.

 

Level 3— Inputs reflecting management’s best estimates and assumptions of what market participants would use in pricing assets or liabilities at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments.

 

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

 

Financial assets and liabilities measured at fair value on a recurring basis are summarized below for the quarter ended November 30, 2015

 

    Level 1     Level 2     Level 3     Total  
Assets                                
Securities -available for sale   $ -     $ -     $ -     $ -  
Liabilities                                
Derivative Financial Instruments   $ -     $ -     $ 60,356     $ 60,356  

 

Financial assets and liabilities measured at fair value on a recurring basis are summarized below for the quarter ended May 31, 2016

 

    Level 1     Level 2     Level 3     Total  
Assets                                
Securities -available for sale   $ -     $ -     $ -     $ -  
Liabilities                                
Derivative Financial Instruments   $ -     $ -     $ 81,739     $ 81,739  

 

The following table presents details of the Company’s level 3 derivative liabilities as of May 31, 2016 and November 30, 2015:

 

    Amount  
Balance November 30, 2015   $ 60,356  
Debt discount originated from derivative liabilities     70,711  
Change in fair market value of derivative liabilities     (49,328 )
Balance May 31, 2016   $ 81,739  

 

Revenue Recognition Policy

 

The Company recognizes revenues from construction contracts on the percentage-of-completion method, measured by the percentage of direct labor and material costs to date to estimated total direct labor and material costs for each contract. This method is used because management considers total cost to be the best available measure of progress on the contracts. Because of the inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change in the near term.

 

Contract costs include all direct labor and material cost and those indirect costs related to contract performance. General and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions and estimated profitability may result in revisions to cost and income, which are recognized in the period in which the revisions are determined.

 

The asset, costs and estimated earnings in excess of billings on uncompleted contracts represents revenues recognized in excess of amounts billed. The liability, billings in excess of costs and estimated earnings, represents billing in excess of revenues recognized.

 

Revenues generated from services and consulting agreements are recognized when the services have been performed, all significant contractual obligations have been satisfied and collection of the resulting fees is reasonably assured.

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Going Concern
6 Months Ended
May 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

Note 2 Going Concern

 

As reflected in the accompanying consolidated financial statements, the Company had a net loss of $1,340,517 and net cash used in operations of $341,642 for the six months ended May 31, 2016. Additionally, the Company had a working capital deficit of $1,740,817and a stockholders’ deficit of $3,887,621at May 31, 2016. These factors raise substantial doubt about the Company’s ability to continue as a going concern. 

 

The ability of the Company to continue as a going concern is dependent on Management’s plans, which include funding of waste to energy projects, implementation of waste remediation projects, further implementation of its business plan and continuing to raise funds through debt and/or equity financings. The Company will likely rely upon debt and/or equity financing in order to ensure the continuing existence of the business.

 

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

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Equipment
6 Months Ended
May 31, 2016
Property, Plant and Equipment [Abstract]  
Equipment

Note 3 Equipment

 

At May 31, 2016 and November 30, 2015, equipment consists of the following:

 

    2016     2015     Estimated Useful Life
Computer Equipment   $ 36,800     $ 36,800     5 years
Less: Accumulated depreciation     (28,514 )     (25,924 )    
Equipment, net   $ 8,286     $ 10,876      

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Notes Payable and Convertible Debt
6 Months Ended
May 31, 2016
Debt Disclosure [Abstract]  
Notes Payable and Convertible Debt

Note 4. Notes Payable and Convertible Debt

 

      Balance     Interest Rate     Maturity  
Balance – November 30, 2015       $   132,500       Various       Various  
Borrowings         5,000       8%       June 30, 2016  
Balance – May 31, 2016       $   137,500                  

 

In January, 2016 a third party investor advanced $5,000 unsecured at 8% interest , which was due on June 30, 2016 and paid in full as of the due date. 

 

Convertible debt consists of the following:

 

    Balance     Interest Rate     Maturity   Conversion Price  
                       
Balance – November 30, 2015   $ 189,366       8 %   In Default     Various  
Reclass non related to related     (74,448 )     8 %   December 30, 2015     0.15  
Reclass non related to related     (50,000 )     8 %   December 30, 2016     0.15  
Reclass debt discount to related     78,113                      
Borrowings     25,000       8 %   May 23, 2018     0.10  
Debt discount  on derivative     (23,579 )                    
Debt discount amortization     258                      
Balance – May 31, 2016   $ 144,710                      
                             
Current portion     (143,031 )                    
                             
Long term portion   $ 1,679                      

 

In February, 2016 a third party investor’s convertible debt totaling $74,448, net of related debt discount of $40,470, was reclassified as related party because during the period, as the investor’s ownership of common stock increased to greater than 10%, which, due to materiality, required his transactions to be reclassified as “related party transactions.”

 

On March 10, 2016, a third party investor’s convertible debt totaling $50,000, net of related debt discount of $37,643, was reclassified as a related party transaction due to the investor being hired as the Company’s Chief Operating Officer and Director of Business Development.

 

On May 23, 2016, the Company entered into convertible debt agreements with a third party investor totaling $25,000 at 8% interest, due on May 23, 2018. The debt is convertible into common shares of stock at a conversion price of $.10 per share. On this date the Company recorded a debt discount of $23,579 from the initial valuation of the derivative liability of $23,579 and resulting in no initial gain or loss on the derivative liability based on the Black Sholes pricing model. The fair value of the derivative liability at May 31, 2016 is $23,579. The note is shown net of a derivative debt discount of $23,321 at May 31, 2016.

 

Accrued interest on notes payable and convertible debt at May 31, 2016 and November 30, 2015 amounted to $32,611 and $23,316, respectively, which is included as a component of accounts payable and accrued expenses.

 

Interest expense on notes payable and convertible debt with third parties amounted to $6,496 and $5,330 for the three months ended May 31, 2016 and 2015, respectively.

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Related Party Transactions
6 Months Ended
May 31, 2016
Related Party Transactions [Abstract]  
Related Party Transactions

Note 5. Related Party Transactions

 

Notes payable to related parties consists of the following:

 

    Balance     Interest Rate     Maturity
Balance – November 30, 2015   $ 525       0 %   On Demand
Borrowings     194,939       12 %   May 30, 2016
Reclass accrued compensation     874,000       4 %   December 1, 2017
Reclass accrued compensation     669,582       4 %   December 1, 2017
Reclass accrued compensation     150,000       4 %   December 1, 2017
Reclass accrued compensation     120,000       4 %   December 1, 2017
Reclass accrued compensation     120,000       4 %   December 1, 2017
Reclass accrued compensation     120,000       4 %   December 1, 2017
Balance – May 31, 2016   $ 2,249,046              
                     
Current portion     (195,464 )            
                     
Long term portion   $ 2,053,582              

 

 In April, 2016 the Chief Operating Officer made an advance of $194,939 to a subsidiary of the Company, bearing interest at 12% which is due May 30, 2016. The $194,939 non-convertible advance included an additional $15,000 payment as Profit Participation for work rendered. The agreement included a provision where the Company agreed that in the event that the Investor had not been repaid within 75 days from date of delivery of Equipment then Investor shall receive a penalty of 3,000,000 shares of BioPower Common Stock in consideration for the delay in payment. The Investor was repaid in full on June 30, 2016.

 

On May 27, 2016 the Chief Executive Officer agreed to reduce his accrued compensation by $206,250 as a contribution to additional paid in capital. He also agreed to reclassify $874,000 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

On May 27, 2016 the Director of Strategy agreed to reduce her accrued compensation by $206,250 as a contribution to additional paid in capital. She also agreed to reclassify $669,582 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

On May 27, 2016 the Chief Executive Officer of G3P agreed to reduce his accrued compensation by $243,750 as a contribution to additional paid in capital. He also agreed to reclassify $150,000 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

On May 27, 2016 the Senior Vice President of G3P agreed to reduce his accrued compensation by $162,500 as a contribution to additional paid in capital. He also agreed to reclassify $120,000 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

On May 27, 2016 the Chief Operating Officer of G3P agreed to reclassify $120,000 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board.

 

On May 27, 2016 the Chief Administrative Officer of G3P agreed to reclassify $120,000 in accrued compensation to long term debt upon the issuance of a non-convertible 4% interest bearing note with a maturity date of December 1, 2017. The compensation included was accrued during the period from January 2, 2011 to February 29, 2016. This compensation will be paid as bonuses out of future income only and is further subject to a cap of 20% of operating net cash flow in any given period. If bonuses are paid accrued compensation will be paid with an amount decided by the Board. 

 

Convertible debt to related parties consists of the following:

 

      Balance       Interest Rate       Maturity       Conversion Price  
                                 
Balance – November 30, 2015   $ 44,394       8 %     December 30, 2015       0.15  
Reclass non related to related     74,448       8 %     December 30, 2015       0.15  
Reclass non related to related     50,000       8 %     December 30, 2016       0.15  
Reclass debt discount to related     (78,113 )                        
Borrowings     25,000       8 %     June 15, 2016       0.15  
Debt discount on convertible debt     (8333 )                        
Accounts payable settlement     16,500       8 %     June 17, 2016       0.15  
Borrowings     100,000       8 %     March 2, 2018       0.15  
Borrowings     50,000       8 %     May 18, 2018       0.10  
Debt discount on derivative     (47,132 )                        
Debt discount amortization     (71,960 )                        
Balance – May 31, 2016   $ 298,724                          
                                 
Current portion     (195,017 )                        
                                 
Long term portion   $ 103,707                          

 

On December 15, 2015 a related party investor advanced $25,000 due on or before June 15, 2016. Pursuant to the agreement, the investor is allowed to convert 100% of the debt at a share price of $0.15. The company accounted for the conversion of loan in accordance with ASC 470, “Debt with Conversion and Other Options”. The loan was deemed to have a beneficial conversion feature because the fair value of the stock exceeded the effective conversion price embedded in the loan on the commitment date. Accordingly, the Company recorded the value of the beneficial conversion feature, which was determined to be $8,333 as a discount to the loan and a corresponding increase to additional paid in capital.

 

On February 18, 2016 a related party investor settled $16,500 in accounts payable for the Company in exchange for debt du  e on or before June 17, 2016. Pursuant to the agreement, the investor is allowed to convert 100% of the debt at a share price of $0.15. The company accounted for the conversion of the debit in accordance with ASC 470, “Debt with Conversion and Other Options”. The fair market value of the shares on February 18, 2016 was $0.10 per share and accordingly deemed to have no Beneficial Conversion Factor.

 

In March, 2016 the Chief Operating Officer made a loan of $100,000, bearing interest at 8% due on or before March 2, 2018. Pursuant to the agreement, the investor is allowed to convert 100% of the debt on the maturity date at a share price of $0.15. The company accounted for the conversion of loan in accordance with ASC 470, “Debt with Conversion and Other Options”.  The fair market value of the shares on March 2, 2016 was $0.10 per share and accordingly deemed to have no Beneficial Conversion Factor. On May 18, 2016 the Officer loaned an additional $50,000 with conversion rights at $0.10 per share. Therefore, effective May 18, 2016, $50,000 of the officers’ note payable had conversion rights of $0.10 per share. The company accounted for the conversion of loan in accordance with ASC 470, “Debt with Conversion and Other Options”. The fair market value of the shares on May 18, 2016 was $0.10 per share and accordingly deemed to have no Beneficial Conversion Factor. On May 23, 2016, a third party investor loaned the company $25,000 with conversion rights at $0.10 per share. Therefore, effective May 23, 2016, an additional $25,000 of the officers’ $100,000 note payable had conversion rights of $0.10 per share. The company accounted for the conversion of loan in accordance with ASC 470, “Debt with Conversion and Other Options”. The fair market value of the shares on May 18, 2016 was $0.10 per share and accordingly deemed to have no Beneficial Conversion Factor.

 

In May, 2016 the Chief Operating Officer made a loan of $50,000, bearing interest at 8% due on or before May 18, 2018. Pursuant to the agreement, the investor is allowed to convert 100% of the debt at a share price of $0.10 . The loan includes a provision for matching future conversion rights with any new loans made by the Company with the exception of a Right of First Refusal. In addition, if an equity transaction is done at a price below $0.10  then the conversion price will adjust to such price. The company accounted for the conversion of loan in accordance with ASC 470, “Debt with Conversion and Other Options”. The fair market value of the shares on May 18, 2016 was $0.10 per share and accordingly deemed to have no Beneficial Conversion Factor.

 

Accrued interest on related party notes payable and convertible debt at May 31, 2016 and November 30, 2015, amounted to $19,101 and $4,250, respectively and is a component of accounts payable and accrued expenses – related parties.

 

Interest expense on notes payable and convertible debt with related parties amounted to $8,881 and $2,747 for the three months ended May 31, 2016 and 2015, respectively.

  

The Company has separated accounts payable and accrued expenses on the balance sheet to reflect amounts due to related parties primarily consisting of officer compensation, health insurance, interest on notes and reimbursable expenses to officers for travel, meals and entertainment, vehicle and other related business expenses.

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Derivative Liabilities
6 Months Ended
May 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Liabilities

Note 6. Derivative Liabilities

 

On July 23, 2015, the Company entered into a convertible loan agreement with an investor. The Company received a total of $50,000 which bears interest at 8% per annum and is due on December 30, 2016. Interest shall accrue from the advancement date and shall be payable on December 30, 2016. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of $0.15 per share. If an equity transaction occurs at a price below $0.15, then the conversion price will adjust to such price.

 

On this date of issuance, the Company recorded a debt discount in the amount of $50,000 in connection with the initial valuation of the derivative liability of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $111,074 and initial loss on derivative liability of $61,074 based on the Black Scholes pricing model. As of May 31, 2016, $29,752  of the debt discount has been amortized. The fair value of the derivative liability at May 31, 2016 is $11,046 resulting in a gain on the change in fair value of the derivative of $49,310. The Note is shown net of a derivative debt discount of $20,247  at May 31, 2016.

 

Since equity classification is not available for the conversion feature, we were required to bifurcate the embedded conversion feature and carry it as a derivative liability, at fair value. Derivative financial instrument is carried initially and subsequently at its fair values.

 

We estimated the fair value of the derivative on the inception date, and subsequently, using the Black-Scholes valuation technique, adjusted for the effect of dilution, because that technique embodies all of the assumptions (including, volatility, expected terms, and risk free rates) that are necessary to fair value complex derivate instruments.

 

As a result of the application of ASC No. 815 in period ended May 31, 2016 the fair value of the conversion feature is summarized as follows:

 

    Amount  
Balance November 30, 2015   $ 60,356  
Change in fair market value of derivative liabilities     (49,310 )
Balance May 31, 2016   $ 11,046  

 

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of May 31, 2016 and commitment date:

 

    Commitment Date     May 31, 2016  
Expected dividends     -       -  
Expected volatility     296.84 %     153.55 %
Expect term     1.44       .58  
Risk free interest rate     0.33 %     0.68 %

 

On May 18, 2016, the Company entered into a convertible loan agreement with a related party investor. The Company received a total of $50,000 which bears interest at 8% per annum and is due on May 18, 2018. Interest shall accrue from the advancement date and shall be payable on May 18, 2018. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of $0.10 per share. If an equity transaction occurs at a price below $0.10, then the conversion price will adjust to such price.

 

On this date of issuance, the Company recorded a debt discount in the amount of $47,132 in connection with the initial valuation of the derivative liability of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $47,132 resulting in no initial gain or loss on the derivative liability based on the Black Scholes pricing model. As of May 31, 2016, $839 of the debt discount has been amortized. The fair value of the derivative liability at May 31, 2016 is $47,114 resulting in a gain on the change in fair value of the derivative of $18. The Note is shown net of a derivative debt discount of $46,293 at May 31, 2016. (See Note 4 –Convertible Debt). 

 

Since equity classification is not available for the conversion feature, we were required to bifurcate the embedded conversion feature and carry it as a derivative liability, at fair value. Derivative financial instrument is carried initially and subsequently at its fair values.

 

We estimated the fair value of the derivative on the inception date, and subsequently, using the Black-Scholes valuation technique, adjusted for the effect of dilution, because that technique embodies all of the assumptions (including, volatility, expected terms, and risk free rates) that are necessary to fair value complex derivate instruments.

 

As a result of the application of ASC No. 815 in period ended May 31, 2016 the fair value of the conversion feature is summarized as follows:

 

    Amount  
Balance November 30, 2015   $ -  
Debt discount originated from derivative liabilities     47,132  
Change in fair market value of derivative liabilities     (18 )
Balance May 31, 2016   $ 47,114  

 

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of May 31, 2016 and commitment date:

 

    Commitment Date     May 31, 2016  
Expected dividends     -       -  
Expected volatility     268.40 %     270.72 %
Expect term     2.00       1.96  
Risk free interest rate     0.63 %     0.68 %

 

On May 23, 2016, the Company entered into a convertible loan agreement with a third party investor. The Company received a total of $25,000 which bears interest at 8% per annum and is due on May 23, 2018. Interest shall accrue from the advancement date and shall be payable on May 23, 2018. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of $0.10 per share. If an equity transaction occurs at a price below $0.10, then the conversion price will adjust to such price.

 

On this date of issuance, the Company recorded a debt discount in the amount of $23,579 in connection with the initial valuation of the derivative liability of the note to be amortized utilizing the effective interest method of accretion over the term of the note. Further, the Company recognized a derivative liability of $23,579 resulting in no initial gain or loss on the derivative liability based on the Black Scholes pricing model. As of May 31, 2016, $258 of the debt discount has been amortized. The fair value of the derivative liability at May 31, 2016 is $23,579. The Note is shown net of a derivative debt discount of $23,321 at May 31, 2016. (See Note 4 –Convertible Debt).

 

Since equity classification is not available for the conversion feature, we were required to bifurcate the embedded conversion feature and carry it as a derivative liability, at fair value. Derivative financial instrument is carried initially and subsequently at its fair values.

 

We estimated the fair value of the derivative on the inception date, and subsequently, using the Black-Scholes valuation technique, adjusted for the effect of dilution, because that technique embodies all of the assumptions (including, volatility, expected terms, and risk free rates) that are necessary to fair value complex derivate instruments.

 

As a result of the application of ASC No. 815 in period ended May 31, 2016 the fair value of the conversion feature is summarized as follows:

 

      Amount  
Balance November 30, 2015   $ -  
Debt discount originated from derivative liabilities     23,579  
Change in fair market value of derivative liabilities     -  
Balance May 31, 2016   $ 23,579  

 

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of May 31, 2016 and commitment date:

 

      Commitment Date       May 31, 2016  
Expected dividends     -       -  
Expected volatility     268.94 %     270.29 %
Expect term     2.00       1.98  
Risk free interest rate     0.69 %     0.68 %

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Stockholders' Deficit
6 Months Ended
May 31, 2016
Equity [Abstract]  
Stockholders' Deficit

Note 7. Stockholders’ Deficit

 

For the six months ended May 31, 2016:

 

On February 24, 2016, the Board of Directors approved the following stock compensation because the Company did not making any cash payments toward salary during the year ended November 30, 2015. The stock compensation is to be paid by November 30, 2016 provided the Company has revenues from operations that can provide for the taxes due for the stock compensation, or the stock will be returned to the Company. The stock will be issued and held by the Transfer Agent until November 30, 2016 and then returned to the Company or distributed to the employee. The employee has the option to pay the Company for the employer taxes due and their own taxes due for the stock compensation on or before November 30, 2016.

 

The company fair valued these shares as of the date of issuance and recorded $500,000 stock-based compensation during the first quarter ended February 29, 2016.

 

Dr. Neil Williams, CEO G3P 2,000,000   common stock shares
Robert Kohn, CEO BioPower 1,250,000   common stock shares
Bonnie Nelson, Director of Strategy 1,250,000   common stock shares
Benjamin Williams, Sr. Vice President  500,000   common stock shares
Total 5,000,000   common stock shares

 

On March 2, 2016, the Company authorized the issuance of 3,000,000 shares of its common stock, as part of Mr. Baruch Halpern’s Employment contract, to remain in the possession of the Transfer Agent for one year. The 3,000,000 common shares will be released to Mr. Halpern after one year as long as he does not voluntarily resign. At that time a standard two-year lock-up agreement will also be executed. If Mr. Halpern voluntarily resigns before his first anniversary, there will be a claw-back of 2,250,000 common shares and Mr. Halpern will be issued the remaining 750,000 common shares with a two-year lock-up agreement.  

 

There are 47,107,680 and 42,107,680 shares issued and outstanding at May 31, 2016 and November 30, 2015, respectively.

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Commitments and Contingencies
6 Months Ended
May 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 8. Commitments and Contingencies

 

Commitments

 

Employment Agreements – Officers and Directors

 

As of November 30, 2014, the Company had employment agreements with certain officers and directors (two individuals) containing the following provisions:

 

Term of contract   4 years, expiring on November 30, 2018
Salary   $275,000 commencing December 1, 2014
Salary deferral   All salaries will be accrued but may be paid from the Company’s available cash flow funds.

 

Annual Salaries:

 

Name   Starting Dc. 1, 2014     2014-15     2015-2016     2016-2017  
Robert Kohn           $ 275,000     $ 325,000     $ 375,000  
Bonnie Nelson           $ 275,000     $ 325,000     $ 375,000  

 

As of May 20, 2016 the salaries have been amended to $120,000 each per annum until financing for a second project is committed. These salary levels will be retroactive to December 1, 2014.

 

On March 10 , 2016, the Company employed Mr. Baruch Halpern join as its’ Chief Operating Officer containing the following provisions:

 

Term of contract   2 years and 5 months, expiring on August 10, 2018
Salary   $120,000 commencing March 10, 2016
Salary deferral   All salaries will be accrued but may be paid from the Company’s available cash flow funds.

 

The accrued officers and directors payroll at May 31, 2016 is $377,000.  

 

Lease Agreement

 

On June 3, 2013, the Company entered into a new lease agreement with its current landlord. The lease is for a 24 month period, expiring on May 31, 2015 , and requires monthly base rental payments of $ 4,000 for the period from June 1, 2013 through May 31, 2014 and $ 4,080 for the period from June 1, 2014 through May 31, 2015 plus adjustments for Common Area Expenses. On May 29, 2015, the Company Amended the lease agreement extending it for an additional 12 month period, expiring on May 31, 2016, and requiring monthly base rental payments of $4,583 plus adjustments for Common Area Expenses. On May 23, 2016, the Company amended the lease agreement extending it on a month to month basis. The required monthly base rental payments were kept the same.

 

Rent expense was $28,210 and $25,425 for the six month period ended May 31, 2016 and May 31, 2015, respectively.

 

Contingencies

 

From time to time, the Company may be involved in legal matters arising in the ordinary course of business. While the Company believes that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which the Company is, or could be, involved in litigation, will not have a material adverse effect on its business, financial condition or results of operations.

XML 24 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
Subsequent Events
6 Months Ended
May 31, 2016
Subsequent Events [Abstract]  
Subsequent Events

Note 9. Subsequent Events

 

On May 31, 2016 a third party investor entered into an agreement to loan $200,000 to the Company, due on or before May 31, 2018. Pursuant to the agreement, the investor is allowed to convert 100% of the debt at a share price of $0.10. The funds were not received until June, 2016 and accordingly were not accounted for in the current period.

XML 25 R15.htm IDEA: XBRL DOCUMENT v3.5.0.2
Basis of Presentation (Tables)
6 Months Ended
May 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Financial Assets and Liabilities Measured at Fair Value Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below for the quarter ended November 30, 2015

 

    Level 1     Level 2     Level 3     Total  
Assets                                
Securities -available for sale   $ -     $ -     $ -     $ -  
Liabilities                                
Derivative Financial Instruments   $ -     $ -     $ 60,356     $ 60,356  

 

Financial assets and liabilities measured at fair value on a recurring basis are summarized below for the quarter ended May 31, 2016

 

    Level 1     Level 2     Level 3     Total  
Assets                                
Securities -available for sale   $ -     $ -     $ -     $ -  
Liabilities                                
Derivative Financial Instruments   $ -     $ -     $ 81,739     $ 81,739  

Schedule of Fair Value of Derivative Liabilities Measured at Unobservable Level 3 Inputs

The following table presents details of the Company’s level 3 derivative liabilities as of May 31, 2016 and November 30, 2015:

 

    Amount  
Balance November 30, 2015   $ 60,356  
Debt discount originated from derivative liabilities     70,711  
Change in fair market value of derivative liabilities     (49,328 )
Balance May 31, 2016   $ 81,739  

XML 26 R16.htm IDEA: XBRL DOCUMENT v3.5.0.2
Equipment (Tables)
6 Months Ended
May 31, 2016
Property, Plant and Equipment [Abstract]  
Schedule of Components of Equipment

At May 31, 2016 and November 30, 2015, equipment consists of the following:

 

    2016     2015     Estimated Useful Life
Computer Equipment   $ 36,800     $ 36,800     5 years
Less: Accumulated depreciation     (28,514 )     (25,924 )    
Equipment, net   $ 8,286     $ 10,876      

XML 27 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
Notes Payable and Convertible Debt (Tables)
6 Months Ended
May 31, 2016
Debt Disclosure [Abstract]  
Schedule of Notes Payable

      Balance     Interest Rate     Maturity  
Balance – November 30, 2015       $   132,500       Various       Various  
Borrowings         5,000       8%       June 30, 2016  
Balance – May 31, 2016       $   137,500                  

Schedule of Convertible Debt

Convertible debt consists of the following:

 

    Balance     Interest Rate     Maturity   Conversion Price  
                       
Balance – November 30, 2015   $ 189,366       8 %   In Default     Various  
Reclass non related to related     (74,448 )     8 %   December 30, 2015     0.15  
Reclass non related to related     (50,000 )     8 %   December 30, 2016     0.15  
Reclass debt discount to related     78,113                      
Borrowings     25,000       8 %   May 23, 2018     0.10  
Debt discount  on derivative     (23,579 )                    
Debt discount amortization     258                      
Balance – May 31, 2016   $ 144,710                      
                             
Current portion     (143,031 )                    
                             
Long term portion   $ 1,679                      

XML 28 R18.htm IDEA: XBRL DOCUMENT v3.5.0.2
Related Party Transactions (Tables)
6 Months Ended
May 31, 2016
Related Party Transactions [Abstract]  
Schedule of Notes Payable to Related Parties

Notes payable to related parties consists of the following:

 

    Balance     Interest Rate     Maturity
Balance – November 30, 2015   $ 525       0 %   On Demand
Borrowings     194,939       12 %   May 30, 2016
Reclass accrued compensation     874,000       4 %   December 1, 2017
Reclass accrued compensation     669,582       4 %   December 1, 2017
Reclass accrued compensation     150,000       4 %   December 1, 2017
Reclass accrued compensation     120,000       4 %   December 1, 2017
Reclass accrued compensation     120,000       4 %   December 1, 2017
Reclass accrued compensation     120,000       4 %   December 1, 2017
Balance – May 31, 2016   $ 2,249,046              
                     
Current portion     (195,464 )            
                     
Long term portion   $ 2,053,582              

Schedule of Convertible Debt Related Parties

Convertible debt to related parties consists of the following:

 

      Balance       Interest Rate       Maturity       Conversion Price  
                                 
Balance – November 30, 2015   $ 44,394       8 %     December 30, 2015       0.15  
Reclass non related to related     74,448       8 %     December 30, 2015       0.15  
Reclass non related to related     50,000       8 %     December 30, 2016       0.15  
Reclass debt discount to related     (78,113 )                        
Borrowings     25,000       8 %     June 15, 2016       0.15  
Debt discount on convertible debt     (8333 )                        
Accounts payable settlement     16,500       8 %     June 17, 2016       0.15  
Borrowings     100,000       8 %     March 2, 2018       0.15  
Borrowings     50,000       8 %     May 18, 2018       0.10  
Debt discount on derivative     (47,132 )                        
Debt discount amortization     (71,960 )                        
Balance – May 31, 2016   $ 298,724                          
                                 
Current portion     (195,017 )                        
                                 
Long term portion   $ 103,707                          

XML 29 R19.htm IDEA: XBRL DOCUMENT v3.5.0.2
Derivative Liabilities (Tables)
6 Months Ended
May 31, 2016
Summary of Fair Value of Conversion Feature

As a result of the application of ASC No. 815 in period ended May 31, 2016 the fair value of the conversion feature is summarized as follows:

 

    Amount  
Balance November 30, 2015   $ 60,356  
Change in fair market value of derivative liabilities     (49,310 )
Balance May 31, 2016   $ 11,046  

Schedule of Fair Value Assumptions of Commitment and Re-measurement Dates For Derivative Liabilities

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of May 31, 2016 and commitment date:

 

    Commitment Date     May 31, 2016  
Expected dividends     -       -  
Expected volatility     296.84 %     153.55 %
Expect term     1.44       .58  
Risk free interest rate     0.33 %     0.68 %

Related Party Investor [Member]  
Summary of Fair Value of Conversion Feature

As a result of the application of ASC No. 815 in period ended May 31, 2016 the fair value of the conversion feature is summarized as follows:

 

    Amount  
Balance November 30, 2015   $ -  
Debt discount originated from derivative liabilities     47,132  
Change in fair market value of derivative liabilities     (18 )
Balance May 31, 2016   $ 47,114  

Schedule of Fair Value Assumptions of Commitment and Re-measurement Dates For Derivative Liabilities

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of May 31, 2016 and commitment date:

 

    Commitment Date     May 31, 2016  
Expected dividends     -       -  
Expected volatility     268.40 %     270.72 %
Expect term     2.00       1.96  
Risk free interest rate     0.63 %     0.68 %

Third Party Investor [Member]  
Summary of Fair Value of Conversion Feature

As a result of the application of ASC No. 815 in period ended May 31, 2016 the fair value of the conversion feature is summarized as follows:

 

      Amount  
Balance November 30, 2015   $ -  
Debt discount originated from derivative liabilities     23,579  
Change in fair market value of derivative liabilities     -  
Balance May 31, 2016   $ 23,579  

Schedule of Fair Value Assumptions of Commitment and Re-measurement Dates For Derivative Liabilities

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of May 31, 2016 and commitment date:

 

      Commitment Date       May 31, 2016  
Expected dividends     -       -  
Expected volatility     268.94 %     270.29 %
Expect term     2.00       1.98  
Risk free interest rate     0.69 %     0.68 %

XML 30 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
Stockholders' Deficit (Tables)
6 Months Ended
May 31, 2016
Equity [Abstract]  
Schedule of Employee Stock Compensation

The company fair valued these shares as of the date of issuance and recorded $500,000 stock-based compensation during the first quarter ended February 29, 2016.

 

Dr. Neil Williams, CEO G3P 2,000,000   common stock shares
Robert Kohn, CEO BioPower 1,250,000   common stock shares
Bonnie Nelson, Director of Strategy 1,250,000   common stock shares
Benjamin Williams, Sr. Vice President  500,000   common stock shares
Total 5,000,000   common stock shares

XML 31 R21.htm IDEA: XBRL DOCUMENT v3.5.0.2
Commitments and Contingencies (Tables)
6 Months Ended
May 31, 2016
Schedule of Related Parties Employment Agreement

As of November 30, 2014, the Company had employment agreements with certain officers and directors (two individuals) containing the following provisions:

 

Term of contract   4 years, expiring on November 30, 2018
Salary   $275,000 commencing December 1, 2014
Salary deferral   All salaries will be accrued but may be paid from the Company’s available cash flow funds.

Schedule of Employees Compensation

Annual Salaries:

 

Name   Starting Dc. 1, 2014     2014-15     2015-2016     2016-2017  
Robert Kohn           $ 275,000     $ 325,000     $ 375,000  
Bonnie Nelson           $ 275,000     $ 325,000     $ 375,000  

Mr. Baruch Halpern [Member] | Chief Operating Officer [Member]  
Schedule of Related Parties Employment Agreement

On March 10 , 2016, the Company employed Mr. Baruch Halpern join as its’ Chief Operating Officer containing the following provisions:

 

Term of contract   2 years and 5 months, expiring on August 10, 2018
Salary   $120,000 commencing March 10, 2016
Salary deferral   All salaries will be accrued but may be paid from the Company’s available cash flow funds.

XML 32 R22.htm IDEA: XBRL DOCUMENT v3.5.0.2
Basis of Presentation - Schedule of Financial Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($)
May 31, 2016
Nov. 30, 2015
Securities - available for sale
Derivative Financial Instruments 81,739 60,356
Level 1 [Member]    
Securities - available for sale
Derivative Financial Instruments
Level 2 [Member]    
Securities - available for sale
Derivative Financial Instruments
Level 3 [Member]    
Securities - available for sale
Derivative Financial Instruments $ 81,739 $ 60,356
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.5.0.2
Basis of Presentation - Schedule of Fair Value of Derivative Liabilities Measured at Unobservable Level Three Inputs (Details)
6 Months Ended
May 31, 2016
USD ($)
Balance beginning $ 60,356
Change in fair market value of derivative liabilities (49,310)
Balance ending 11,046
Level 3 [Member]  
Balance beginning 60,356
Debt discount originated from derivative liabilities 70,711
Change in fair market value of derivative liabilities (49,328)
Balance ending $ 81,739
XML 34 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
Going Concern (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
May 31, 2016
May 31, 2015
May 31, 2016
May 31, 2015
Nov. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]          
Net loss $ 321,108 $ 517,009 $ 1,340,517 $ 1,011,402  
Net cash used in operations     341,642 $ 105,591  
Working capital deficit 1,740,817   1,740,817    
Stockholders' deficit $ 3,887,621   $ 3,887,621   $ 3,874,188
XML 35 R25.htm IDEA: XBRL DOCUMENT v3.5.0.2
Equipment - Schedule of Components of Equipment (Details) - USD ($)
6 Months Ended
May 31, 2016
Nov. 30, 2015
May 31, 2015
Less: Accumulated depreciation $ (28,514)   $ (25,924)
Equipment, net 8,286 $ 10,876 10,876
Computer Equipment [Member]      
Computer Equipment $ 36,800   $ 36,800
Estimated Useful Life 5 years    
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.5.0.2
Notes Payable and Convertible Debt (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
May 23, 2016
Jan. 31, 2016
May 31, 2016
May 31, 2015
May 31, 2016
May 31, 2015
Mar. 10, 2016
Feb. 29, 2016
Nov. 30, 2015
Convertible debt     $ 144,710   $ 144,710       $ 189,366
Debt discount     23,321   23,321        
Change in fair value of derivative liability         49,328      
Accrued interest on notes payable and convertible debt     32,611   32,611       $ 23,316
Convertible Debt Agreements [Member]                  
Percentage of debt instrument interest rate 8.00%                
Debt due date May 23, 2018                
Convertible debt $ 25,000                
Change in fair value of derivative liability         23,579        
Derivative liability     $ 23,579   $ 23,579        
Conversion price     $ 0.10   $ 0.10        
Third Party Investors [Member]                  
Investor advanced   $ 5,000              
Percentage of debt instrument interest rate   8.00%              
Debt due date   Jun. 30, 2016              
Convertible debt             $ 50,000 $ 74,448  
Debt discount             $ 37,643 $ 40,470  
Increase in ownership percentage               10.00%  
Conversion price $ 0.10                
Third Parties [Member]                  
Interest expense on notes payable and convertible debt     $ 6,496 $ 5,330          
XML 37 R27.htm IDEA: XBRL DOCUMENT v3.5.0.2
Notes Payable and Convertible Debt - Schedule of Notes Payable (Details) - USD ($)
6 Months Ended
May 31, 2016
May 31, 2015
Beginning balance $ 132,500  
Borrowings 5,000 $ 22,500
Ending balance $ 137,500  
Interest Rate 8.00%  
Notes Payable [Member]    
Interest Rate, description Various  
Interest Rate 8.00%  
Maturity, description Various  
Maturity date Jun. 30, 2016  
XML 38 R28.htm IDEA: XBRL DOCUMENT v3.5.0.2
Notes Payable and Convertible Debt - Schedule of Convertible Debt (Details) - USD ($)
6 Months Ended
May 31, 2016
May 31, 2015
Nov. 30, 2015
Beginning balance $ 189,366    
Reclass non related to related (74,778)    
Reclass non related to related (50,000)    
Reclass debt discount to related 78,113    
Borrowings 25,000 $ 22,500  
Debt discount on derivative (23,579)    
Debt discount amortization 258    
Ending Balance 144,710    
Current portion (143,031)   $ (189,366)
Long term portion $ 1,679  
Interest Rate 8.00%    
Convertible Debt [Member]      
Interest Rate 8.00%    
Maturity, description In Default    
Conversion Price, description Various    
Convertible Debt One [Member]      
Interest Rate 8.00%    
Maturity date Dec. 30, 2015    
Conversion Price $ 0.15    
Convertible Debt Two [Member]      
Interest Rate 8.00%    
Maturity date Dec. 30, 2016    
Conversion Price $ 0.15    
Convertible Debt Three [Member]      
Interest Rate 8.00%    
Maturity date May 23, 2018    
Conversion Price $ 0.10    
XML 39 R29.htm IDEA: XBRL DOCUMENT v3.5.0.2
Related Party Transactions (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
May 27, 2016
May 23, 2016
May 18, 2016
Mar. 31, 2016
Feb. 18, 2016
Dec. 15, 2015
Apr. 30, 2016
Jan. 31, 2016
May 31, 2016
May 31, 2015
May 31, 2016
May 31, 2015
Mar. 10, 2016
Mar. 02, 2016
Feb. 29, 2016
Nov. 30, 2015
Debt instrument, interest rate                 8.00%   8.00%          
Additional payment in non-convertible                 $ 144,710   $ 144,710         $ 189,366
Notes payable to related parties                 2,249,046   2,249,046         525
Fair market value shares price per share                           $ 0.10    
Proceeds from related party debt                     194,939        
Interest expense related party                 23,985 $ 2,747 41,760 $ 4,830        
Notes Payable and Convertible Debt [Member]                                
Accrued interest                 19,101   $ 19,101         $ 4,250
Interest expense related party                 $ 8,881 $ 2,747            
Chief Executive Officer [Member]                                
Advance payment             $ 194,939                  
Debt instrument, interest rate 4.00%           12.00%                  
Debt due date Dec. 01, 2017           May 30, 2016                  
Additional payment in non-convertible             $ 15,000                  
Investor penalty shares             3,000,000                  
Accrued compensation $ 206,250                              
Proceeds from issuance of long-term debt $ 874,000                              
Future derivative, cap interest rate 20.00%                              
Director of Strategy [Member]                                
Debt instrument, interest rate 4.00%                              
Debt due date Dec. 01, 2017                              
Accrued compensation $ 206,250                              
Proceeds from issuance of long-term debt $ 669,582                              
Future derivative, cap interest rate 20.00%                              
Chief Executive Officer of G3P [Member]                                
Debt instrument, interest rate 4.00%                              
Debt due date Dec. 01, 2017                              
Accrued compensation $ 243,750                              
Proceeds from issuance of long-term debt $ 150,000                              
Future derivative, cap interest rate 20.00%                              
Senior Vice President of G3P [Member]                                
Debt instrument, interest rate 4.00%                              
Debt due date Dec. 01, 2017                              
Accrued compensation $ 162,500                              
Proceeds from issuance of long-term debt $ 120,000                              
Future derivative, cap interest rate 20.00%                              
Chief Operating Officer of G3P [Member]                                
Debt instrument, interest rate 4.00%                              
Debt due date Dec. 01, 2017                              
Accrued compensation $ 120,000                              
Future derivative, cap interest rate 20.00%                              
Chief Administrative Officer of G3P [Member]                                
Debt instrument, interest rate 4.00%                              
Debt due date Dec. 01, 2017                              
Accrued compensation $ 120,000                              
Future derivative, cap interest rate 20.00%                              
Related Party Investor [Member]                                
Advance payment           $ 25,000                    
Debt instrument, interest rate     8.00%                          
Debt due date     May 18, 2018   Jun. 17, 2016 Jun. 15, 2016                    
Settled accounts payable         $ 16,500                      
Percentage of debt converted         100.00% 100.00%                    
Debt conversion price     $ 0.10   $ 0.15 $ 0.15                    
Beneficial conversion feature           $ 8,333                    
Fair market value shares price per share         $ 0.10                      
Chief Operating Officer [Member]                                
Debt instrument, interest rate       8.00%         8.00%   8.00%          
Debt due date       Mar. 02, 2018             May 18, 2018          
Percentage of debt converted       100.00%             100.00%          
Debt conversion price       $ 0.15         $ 0.10   $ 0.10          
Fair market value shares price per share                 $ 0.10   $ 0.10          
Proceeds from related party debt       $ 100,000             $ 50,000          
Officer [Member]                                
Notes payable to related parties     $ 50,000                          
Debt conversion price     $ 0.10                          
Fair market value shares price per share     $ 0.10                          
Additional conversion of convertible debt     $ 50,000                          
Third Party Investors [Member]                                
Debt due date               Jun. 30, 2016                
Additional payment in non-convertible                         $ 50,000   $ 74,448  
Notes payable to related parties   $ 100,000                            
Debt conversion price   $ 0.10                            
Proceeds from related party debt   $ 25,000                            
Additional conversion of convertible debt   $ 25,000                            
XML 40 R30.htm IDEA: XBRL DOCUMENT v3.5.0.2
Related Party Transactions - Schedule of Notes Payable to Related Parties (Details) - USD ($)
6 Months Ended
May 31, 2016
May 31, 2015
Nov. 30, 2015
Beginning balance $ 525    
Borrowings 194,939  
Reclass accrued compensation 874,000    
Reclass accrued compensation 669,582    
Reclass accrued compensation 150,000    
Reclass accrued compensation 120,000    
Reclass accrued compensation 120,000    
Reclass accrued compensation 120,000    
Ending balance $ 2,249,046    
Interest Rate 8.00%    
Current portion $ 195,464   $ 525
Long term portion $ 2,053,582  
Notes Payable Related Parties [Member]      
Interest Rate 0.00%    
Maturity, description On Demand    
Notes Payable Related Parties One [Member]      
Interest Rate 12.00%    
Maturity date May 30, 2016    
Notes Payable Related Parties Two [Member]      
Interest Rate 4.00%    
Maturity date Dec. 01, 2017    
Notes Payable Related Parties Three [Member]      
Interest Rate 4.00%    
Maturity date Dec. 01, 2017    
Notes Payable Related Parties Four [Member]      
Interest Rate 4.00%    
Maturity date Dec. 01, 2017    
Notes Payable Related Parties Five [Member]      
Interest Rate 4.00%    
Maturity date Dec. 01, 2017    
Notes Payable Related Parties Six [Member]      
Interest Rate 4.00%    
Maturity date Dec. 01, 2017    
Notes Payable Related Parties Seven [Member]      
Interest Rate 4.00%    
Maturity date Dec. 01, 2017    
XML 41 R31.htm IDEA: XBRL DOCUMENT v3.5.0.2
Related Party Transactions - Schedule of Convertible Debt Related Parties (Details) - USD ($)
6 Months Ended
May 31, 2016
May 31, 2015
Beginning balance $ 44,394  
Reclass non related to related 74,448  
Reclass non related to related 50,000  
Reclass debt discount to related (78,113)  
Borrowings 25,000 $ 22,500
Debt discount on convertible debt (8,333)  
Accounts payable settlement 16,500  
Borrowings 100,000  
Borrowings 50,000  
Debt discount on derivative (47,132)  
Debt discount amortization (71,960)  
Ending balance 298,724  
Current portion (195,017)  
Long term portion $ 103,707  
Interest Rate 8.00%  
Convertible Debt Related Parties [Member]    
Interest Rate 8.00%  
Maturity date Dec. 30, 2015  
Conversion Price $ 0.15  
Convertible Debt Related Parties One [Member]    
Interest Rate 8.00%  
Maturity date Dec. 30, 2015  
Conversion Price $ 0.15  
Convertible Debt Related Parties Two [Member]    
Interest Rate 8.00%  
Maturity date Dec. 30, 2016  
Conversion Price $ 0.15  
Convertible Debt Related Parties Three [Member]    
Interest Rate 8.00%  
Maturity date Jun. 15, 2016  
Conversion Price $ 0.15  
Convertible Debt Related Parties Four [Member]    
Interest Rate 8.00%  
Maturity date Jun. 17, 2016  
Conversion Price $ 0.15  
Convertible Debt Related Parties Five [Member]    
Interest Rate 8.00%  
Maturity date Mar. 02, 2018  
Conversion Price $ 0.15  
Convertible Debt Related Parties Six [Member]    
Interest Rate 8.00%  
Maturity date May 18, 2018  
Conversion Price $ 0.10  
XML 42 R32.htm IDEA: XBRL DOCUMENT v3.5.0.2
Derivative Liabilities (Details Narrative) - USD ($)
6 Months Ended
May 23, 2016
May 18, 2016
Feb. 18, 2016
Dec. 15, 2015
Jul. 23, 2015
May 31, 2016
May 31, 2015
Nov. 30, 2015
Debt instrument bearing interest           8.00%    
Debt discount           $ 72,218 $ 5,166  
Derivative liability           81,739   $ 60,356
Change in fair value of derivative liability           49,328  
Related Party Investor [Member]                
Company received from investor   $ 50,000            
Debt instrument bearing interest   8.00%            
Debt instrument maturity date   May 18, 2018 Jun. 17, 2016 Jun. 15, 2016        
Debt conversion price   $ 0.10 $ 0.15 $ 0.15        
Debt conversion price, description   If an equity transaction occurs at a price below $0.10, then the conversion price will adjust to such price.            
Debt discount   $ 47,132       839    
Derivative liability   $ 47,132            
Change in fair value of derivative liability           18    
Fair value of derivative liability           47,114    
Derivative debt discount           46,293    
Third Party Investor [Member]                
Company received from investor $ 25,000              
Debt instrument bearing interest 8.00%              
Debt instrument maturity date May 23, 2018              
Debt conversion price $ 0.10              
Debt conversion price, description If an equity transaction occurs at a price below $0.10, then the conversion price will adjust to such price.              
Debt discount $ 23,579         258    
Derivative liability $ 23,579              
Fair value of derivative liability           23,579    
Derivative debt discount           23,321    
Investor [Member]                
Company received from investor         $ 50,000      
Debt instrument bearing interest         8.00%      
Debt instrument maturity date         Dec. 30, 2016      
Debt conversion price         $ 0.15      
Debt conversion price, description         If an equity transaction occurs at a price below $0.15, then the conversion price will adjust to such price.      
Debt discount         $ 50,000 29,752    
Derivative liability         111,074      
Change in fair value of derivative liability         $ 61,074 49,310    
Fair value of derivative liability           11,046    
Derivative debt discount           $ 20,247    
XML 43 R33.htm IDEA: XBRL DOCUMENT v3.5.0.2
Derivative Liabilities - Summary of Fair Value of Conversion Feature (Details)
6 Months Ended
May 31, 2016
USD ($)
Balance beginning $ 60,356
Change in fair market value of derivative liabilities (49,310)
Balance ending 11,046
Related Party Investor [Member]  
Balance beginning
Debt discount originated from derivative liabilities 47,132
Change in fair market value of derivative liabilities (18)
Balance ending 47,114
Third Party Investor [Member]  
Balance beginning
Debt discount originated from derivative liabilities 23,579
Change in fair market value of derivative liabilities
Balance ending $ 23,579
XML 44 R34.htm IDEA: XBRL DOCUMENT v3.5.0.2
Derivative Liabilities - Schedule of Fair Value Assumptions of Commitment and Re-measurement Dates for Derivative Liabilities (Details)
6 Months Ended
May 31, 2016
Expected dividends
Expected volatility 153.55%
Expect term 6 months 29 days
Risk free interest rate 0.68%
Related Party Investor [Member]  
Expected dividends
Expected volatility 270.72%
Expect term 1 year 11 months 16 days
Risk free interest rate 0.68%
Third Party Investor [Member]  
Expected dividends
Expected volatility 270.29%
Expect term 1 year 11 months 23 days
Risk free interest rate 0.68%
Commitment Date [Member]  
Expected dividends
Expected volatility 296.84%
Expect term 1 year 5 months 9 days
Risk free interest rate 0.33%
Commitment Date [Member] | Related Party Investor [Member]  
Expected dividends
Expected volatility 268.40%
Expect term 2 years
Risk free interest rate 0.63%
Commitment Date [Member] | Third Party Investor [Member]  
Expected dividends
Expected volatility 268.94%
Expect term 2 years
Risk free interest rate 0.69%
XML 45 R35.htm IDEA: XBRL DOCUMENT v3.5.0.2
Stockholders' Deficit (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Feb. 29, 2016
May 31, 2016
May 31, 2015
Mar. 02, 2016
Nov. 30, 2015
Stockholders Equity Disclosure [Line Items]          
Stock based compensation $ 500,000 $ 500,000 $ 2,500    
Common stock shares authorized   100,000,000     100,000,000
Common stock, shares issued   47,107,680     42,107,680
Common stock, shares outstanding   47,107,680     42,107,680
Mr. Baruch Halpern’s [Member]          
Stockholders Equity Disclosure [Line Items]          
Common stock shares authorized       3,000,000  
Common stock held for future issue       3,000,000  
Number of shares claw-back in case of voluntarily resigns       2,250,000  
Remaining shares of common stock       750,000  
XML 46 R36.htm IDEA: XBRL DOCUMENT v3.5.0.2
Stockholders' Deficit - Schedule of Employee Stock Compensation (Details)
6 Months Ended
May 31, 2016
shares
Share based compensation common stock shares issued 5,000,000
Issued stock, description common stock shares
Dr. Neil Williams, CEO G3P [Member]  
Share based compensation common stock shares issued 2,000,000
Issued stock, description common stock shares
Robert Kohn, CEO BioPower [Member]  
Share based compensation common stock shares issued 1,250,000
Issued stock, description common stock shares
Bonnie Nelson, Director of Strategy [Member]  
Share based compensation common stock shares issued 1,250,000
Issued stock, description common stock shares
Benjamin Williams, Sr. Vice President [Member]  
Share based compensation common stock shares issued 500,000
Issued stock, description common stock shares
XML 47 R37.htm IDEA: XBRL DOCUMENT v3.5.0.2
Commitments and Contingencies (Details Narrative) - USD ($)
6 Months Ended 12 Months Ended
May 20, 2016
May 29, 2015
Jun. 03, 2013
May 31, 2016
May 31, 2015
May 31, 2015
May 31, 2014
Commitments and Contingencies Disclosure [Line Items]              
Salaries expense $ 120,000            
Accrued officers and directors payroll       $ 377,000      
Rent expense       $ 28,210 $ 25,425    
Lease Agreement [Member]              
Commitments and Contingencies Disclosure [Line Items]              
Lease term     24 months        
Lease expiration date   May 31, 2016 May 31, 2015        
Rent expense   $ 4,583       $ 4,080 $ 4,000
Lease extended term   12 months          
XML 48 R38.htm IDEA: XBRL DOCUMENT v3.5.0.2
Commitments and Contingencies - Schedule of Related Parties Employment Agreement (Details)
6 Months Ended
May 31, 2016
USD ($)
Term of contract 4 years
Contract expiration date Nov. 30, 2018
Salary $ 275,000
Salary deferral All salaries will be accrued but may be paid from the Company’s available cash flow funds.
Mr. Baruch Halpern [Member] | Chief Operating Officer [Member]  
Term of contract 2 years 5 months
Contract expiration date Aug. 10, 2018
Salary $ 120,000
Salary deferral All salaries will be accrued but may be paid from the Company’s available cash flow funds.
XML 49 R39.htm IDEA: XBRL DOCUMENT v3.5.0.2
Commitments and Contingencies - Schedule of Employees Compensation (Details)
May 31, 2016
USD ($)
Robert Kohn [Member] | Starting Dec. 1, 2014 [Member]  
Annual Salaries
Robert Kohn [Member] | 2014-15 [Member]  
Annual Salaries 275,000
Robert Kohn [Member] | 2015-2016 [Member]  
Annual Salaries 325,000
Robert Kohn [Member] | 2016-2017 [Member]  
Annual Salaries 375,000
Bonnie Nelson [Member] | Starting Dec. 1, 2014 [Member]  
Annual Salaries
Bonnie Nelson [Member] | 2014-15 [Member]  
Annual Salaries 275,000
Bonnie Nelson [Member] | 2015-2016 [Member]  
Annual Salaries 325,000
Bonnie Nelson [Member] | 2016-2017 [Member]  
Annual Salaries $ 375,000
XML 50 R40.htm IDEA: XBRL DOCUMENT v3.5.0.2
Subsequent Events (Details Narrative) - Subsequent Event [Member]
May 31, 2016
USD ($)
$ / shares
Loan amount | $ $ 200,000
Debt conversion, rate percentagge 100.00%
Debt conversion price | $ / shares $ 0.10
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