STOCK WARRANTS

6 Months Ended

May 31, 2012

Warrants Disclosure [Abstract]

Warrants Disclosure [Text Block]

NOTE 8. STOCK WARRANTS

Since the Company’s inception, it has financed its operations primarily through the issuance of debt or equity instruments, which have often included the issuance of warrants to purchase the Company’s common stock.

As further described in Note 3 to these condensed consolidated financial statements, the Company entered into a Securities Purchase Agreement with La Jolla Cove Investors (LJCI) on February 28, 2007 pursuant to which the Company agreed to sell a convertible debenture in the principal amount of $100,000. In connection with this debenture, the Company issued LJCI a warrant to purchase up to 10 million shares of our common stock at an exercise price of $1.09 per share, exercisable over the next five years according to a schedule described in a letter agreement dated February 28, 2007. Pursuant to the terms of this warrant, upon the conversion of any portion of the principal amount of the related debenture, LJCI is required to simultaneously exercise and purchase that same percentage of the warrant shares equal to the percentage of the dollar amount of the debenture being converted. Therefore, for each $1,000 of the principal converted, LJCI would be required to simultaneously purchase 100,000 shares under the warrant at $1.09 per share. During the six months ended May 31, 2012, LJCI exercised warrants to purchase 451,000 shares of the Company’s common stock, resulting in proceeds to the Company of $491,590. During the six months ended May 31, 2011, LJCI exercised warrants to purchase 757,500 shares of the Company’s common stock, resulting in proceeds to the Company of $825,675.

A summary of the status of warrants at May 31, 2012, and changes during the six months then ended is presented in the following table:

						Weighted
				Weighted		Average
	Shares			Average		Remaining		Aggregate
	Under			Exercise		Contractual		Intrinsic
	Warrants			Price		Life		Value
Outstanding at November 30, 2011		10,792,030		$	0.7769		3.0 years	$	-
Issued		-			-
Exercised		(451,000	)		1.0900
Expired		(100,000	)		0.2875
Outstanding at May 31, 2012		10,241,030		$	0.7678		2.6 years	$	-