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GOING CONCERN AND LIQUIDITY
12 Months Ended
Nov. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN AND LIQUIDITY

NOTE 2 – GOING CONCERN AND LIQUIDITY

 

The accompanying consolidated financial statements have been prepared on the basis that the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. As of November 30, 2023, the Company had a significant accumulated deficit of $62,730,978 and working capital deficit of $1,493,349. For the year ended November 30, 2023, the Company had a net loss from operations of $9,087,329 and negative cash flows from operations of $1,124,290. The Company’s operating activities consume the majority of its cash resources. The Company anticipates that it will continue to incur operating losses as it executes its development plans for 2024. In addition, the Company has had and expects to have negative cash flows from operations, at least into the near future. The Company has previously funded, and plans to continue funding, these losses primarily with additional infusions of cash from advances from USMC and the sale of equity and convertible notes. The accompanying consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

 

 

The Company’s plan, through the continued promotion of its services to existing and potential customers, is to generate sufficient revenues to cover its anticipated expenses. The Company is currently exploring several options to meet its short-term cash requirements, including issuances of equity securities or equity-linked securities from USMC and other third parties.

 

Although no assurances can be given as to the Company’s ability to deliver on its revenue plans or that unforeseen expenses may arise, management currently believes that the revenue to be generated from operations together with equity and debt financing, including funding from USMC in the form of notes payable and a line of credit, will provide the necessary funding for the Company to continue as a going concern for the next twelve months. For the year ended November 30, 2023, the Company received $914,788 from USMC in the form of three notes payable (see Notes 6 and 12, Tranches #9, #10, #11). Tranche #9 was for $308,320, bears interest at 5% per annum, and amounts due may be converted into shares of the Company’s common stock at any time at the option of the note holder at a conversion price of $0.39 per share. Tranche #10 was for $412,533, bears interest at 8% per annum, and amounts due may be converted into shares of the Company’s common stock at any time at the option of the note holder at a conversion price of $0.10 per share. Tranche #11 was for $193,935, bears interest at 8% per annum, and amounts due may be converted into shares of the Company’s common stock at any time at the option of the note holder at a conversion price of $0.10 per share. A July 10, 2023 line of credit agreement provides for the issuance of up to an aggregate of $1,000,000 of advances from USMC under an unsecured convertible grid promissory note until July 10, 2024 (see Note 12). The line of credit bears interest at 8% per annum and any outstanding principal or accrued interest under the line of credit is convertible into shares of the Company’s common stock at a conversion price of $0.10 per share on the maturity date. As of the date hereof, there have been $919,135 in advances from USMC under the July 10, 2023 line of credit agreement. Currently are no other arrangements or agreements for financing, and management cannot guarantee any other potential debt or equity financing will be available, or if available, on favorable terms. As such, these matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issue date of this report. If adequate funds are not available on acceptable terms, or at all, the Company will need to curtail operations, or cease operations completely.

 

Currently are no other arrangements or agreements for financing, and management cannot guarantee any other potential debt or equity financing will be available, or if available, on favorable terms. As such, these matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issue date of this report. If adequate funds are not available on acceptable terms, or at all, the Company will need to curtail operations, or cease operations completely.