Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Nov. 30, 2019 | May 06, 2020 | May 31, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Nov. 30, 2019 | ||
Entity Registrant Name | Byrna Technologies Inc. | ||
Entity Central Index Key | 0001354866 | ||
Current Fiscal Year End Date | --11-30 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 124,792,754 | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Public Float | $ 15,827,958.16 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
CURRENT | ||
Cash | $ 1,081,900 | $ 1,182,387 |
Restricted cash | 92,000 | |
Accounts receivable | 438,255 | 18,914 |
Inventory, net | 959,748 | 129,121 |
Prepaid expenses and other current assets | 377,305 | 901,247 |
Total Current Assets | 2,949,208 | 2,231,669 |
Patent rights, net | 99,002 | 106,334 |
Deposit for equipment | 196,921 | 205,664 |
Property and equipment, net | 321,288 | 113,418 |
TOTAL ASSETS | 3,566,419 | 2,657,085 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 650,719 | 380,542 |
Convertible notes payable | 2,758,578 | 978,361 |
Accrued interest | 266,143 | 16,767 |
Derivative liabilities | 0 | 957,301 |
Total Current Liabilities | 3,675,440 | 2,332,971 |
Long-term convertible notes payable | 1,874,972 | 167,077 |
Total Liabilities | 5,550,412 | 2,500,048 |
Commitments | ||
Capital stock | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, Nil shares issued and outstanding (2018 - Nil). | ||
Common stock, $0.001 par value 300,000,000 shares authorized, 104,021,836 shares issued and outstanding (2018: 200,000,000 shares authorized, 101,976,899 shares issued and outstanding) | 104,022 | 101,977 |
Additional paid-in capital | 36,480,520 | 33,341,695 |
Shares to be issued | 20,000 | |
Treasury stock receivable (3,000,000 shares) | (888,000) | |
Accumulated deficit | (37,662,123) | (33,252,338) |
Accumulated other comprehensive loss | (38,412) | (34,297) |
Total Stockholders' (Deficit) Equity | (1,983,993) | 157,037 |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $ 3,566,419 | $ 2,657,085 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2019 | Nov. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | ||
Preferred Stock, Shares Outstanding | ||
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 300,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 104,021,836 | 101,976,899 |
Common Stock, Shares, Outstanding | 104,021,836 | 101,976,899 |
Treasury Stock, Shares | 3,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Statement of Operations [Abstract] | ||
Revenue | $ 924,419 | $ 250,227 |
Cost of goods sold | (775,412) | (186,068) |
Gross Profit | 149,007 | 64,159 |
OPERATING EXPENSES | ||
Depreciation | 30,054 | 19,392 |
Amortization of patent rights | 7,332 | 3,666 |
Foreign currency transaction loss (gain) | 12,031 | (46,093) |
Selling, general and administrative | 3,400,158 | 2,125,896 |
TOTAL OPERATING EXPENSES | 3,449,575 | 2,102,861 |
LOSS FROM OPERATIONS | (3,300,568) | (2,038,702) |
OTHER INCOME (EXPENSE) | ||
Accretion of debt discounts | (1,120,872) | (154,428) |
Interest expense | (414,364) | (148,887) |
Change in fair value of derivative liabilities | 426,019 | 188,543 |
LOSS BEFORE INCOME TAXES | (4,409,785) | (2,153,474) |
Income tax provision | 0 | 0 |
NET LOSS | (4,409,785) | (2,153,474) |
Foreign exchange translation adjustment for the year | (4,115) | (1,673) |
COMPREHENSIVE LOSS | $ (4,413,900) | $ (2,155,147) |
Net loss per share - basic and diluted (in dollars per share) | $ (0.04) | $ (0.02) |
Weighted-average number of common shares outstanding during the year (in shares) | 103,543,833 | 94,446,113 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss for the year | $ (4,409,785) | $ (2,153,474) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 218,154 | 128,799 |
Non-cash expense for shares issued in 2018 for services | 200,000 | 250,000 |
Accretion of debt discounts | 1,120,872 | 154,428 |
Provision for inventory | 44,786 | |
Foreign currency transaction loss | (4,115) | (46,093) |
Change in fair value of derivative liability | (426,019) | (188,543) |
Issuance of common shares for services | 314,339 | 1,332,673 |
Issuance of convertible notes payable for services | 112,500 | |
Stock to be issued for services | 20,000 | |
Cancellation of shares for services | (19,996) | |
Accrued interest | 249,376 | 16,767 |
Depreciation | 46,844 | 19,392 |
Amortization of patent rights | 7,332 | 3,666 |
Changes in assets and liabilities: | ||
Accounts receivable | (419,341) | 15,690 |
Inventory | (875,413) | 28,182 |
Prepaid expenses and other current assets | (226,060) | (1,146,176) |
Accounts payable and accrued liabilities | 270,177 | (11,431) |
NET CASH USED IN OPERATING ACTIVITIES | (3,776,349) | (1,596,120) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of patent rights | (110,000) | |
Deposit for and purchases of property and equipment | (245,971) | (311,523) |
NET CASH USED IN INVESTING ACTIVITIES | (245,971) | (421,523) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from convertible notes | 5,068,265 | 1,275,000 |
Repayment of 2016 convertible notes | (1,035,930) | |
Repayment of unsecured convertible debentures | (40,357) | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 4,032,335 | 1,234,643 |
Effects of foreign currency exchange rate changes | (18,502) | 344 |
NET DECREASE IN CASH AND RESTRICTED CASH FOR THE YEAR | (8,487) | (782,656) |
CASH AND RESTRICTED CASH, BEGINNING OF YEAR | 1,182,387 | 1,965,043 |
CASH AND RESTRICTED CASH, END OF YEAR | 1,173,900 | 1,182,387 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
INCOME TAXES PAID | 0 | 0 |
INTEREST PAID | $ 161,595 | $ 132,624 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Value of unused marketing services | $ 550,000 | |
Issuance of warrants with convertible notes payable | $ 2,290,373 | |
Issuance of warrants | $ 524,089 | |
Prepayment of prepaid expenses and other receivables | $ 750,000 | |
FinTekk and Rick Ware Racing, LLC ("RWR") | ||
Number of common stock share issued for services | 3,000,000 | 6,666,666 |
Redemption of stock issued for service | $ 1,000,000 | |
Common stock issued for future services | 1,000,000 | |
Prepayment of prepaid expenses and other receivables | 750,000 | |
Treasury Stock Receivable [Member] | ||
Redemption of stock issued for service | $ 888,000 | |
Additional Paid-in Capital [Member] | ||
Redemption of stock issued for service | 338,000 | |
Issuance of warrants with convertible notes payable | $ 2,290,373 | |
Issuance of warrants | $ 524,089 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Deficit) - USD ($) | Common Shares [Member] | Stock To Be Issued [Member] | Treasury Stock Receivable [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Beginning Balance at Nov. 30, 2017 | $ 93,014 | $ 31,365,097 | $ (31,098,864) | $ (32,624) | $ (326,623) | ||
Beginning Balance (Shares) at Nov. 30, 2017 | 93,014,133 | ||||||
Issuance of common Stock for services | $ 8,963 | 1,323,710 | 1,332,673 | ||||
Issuance of common Stock for services (shares) | 8,962,766 | ||||||
Stock-based compensation for issuance of stock options | 128,799 | 128,799 | |||||
Issuance of warrants | 524,089 | 524,089 | |||||
Net loss | (2,153,474) | (2,153,474) | |||||
Foreign currency translation | (1,673) | (1,673) | |||||
Ending Balance at Nov. 30, 2018 | $ 101,977 | 33,341,695 | (33,252,338) | (34,297) | 157,037 | ||
Ending Balance (Shares) at Nov. 30, 2018 | 101,976,899 | ||||||
Issuance of common Stock for services | $ 2,180 | 312,159 | 314,339 | ||||
Issuance of common Stock for services (shares) | 2,179,875 | ||||||
Cancellation of shares | $ (135) | (19,861) | (19,996) | ||||
Cancellation of shares (shares) | (134,938) | ||||||
Redemption of stock issued for service | $ (888,000) | 338,000 | (550,000) | ||||
Issuance of warrants with convertible notes payable | 2,290,373 | 2,290,373 | |||||
Stock to be issued | $ 20,000 | 20,000 | |||||
Stock-based compensation for issuance of stock options | 218,154 | 218,154 | |||||
Net loss | (4,409,785) | (4,409,785) | |||||
Foreign currency translation | (4,115) | (4,115) | |||||
Ending Balance at Nov. 30, 2019 | $ 104,022 | $ 20,000 | $ (888,000) | $ 36,480,520 | $ (37,662,123) | $ (38,412) | $ (1,983,993) |
Ending Balance (Shares) at Nov. 30, 2019 | 104,021,836 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Nov. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION [Text Block] | 1. BASIS OF PRESENTATION Security Devices International, Inc. ("SDI") was incorporated under the laws of the state of Delaware on March 1, 2005. On February 3, 2014, SDI incorporated a wholly owned subsidiary in Canada, Security Devices International Canada Corp. ("SDI Canada"). On March 1, 2018, SDI acquired all the shares of a company in South Africa, Byrna South Africa (Pty) Ltd. ("Byrna South Africa"). On March 4, 2020, SDI changed its name to Byrna Technologies Inc. (the "Company"). SDI Canada was dissolved on December 19, 2019. See Note 19. These consolidated financial statements for the years ended November 30, 2019 and 2018 include the accounts of the Company and its subsidiaries SDI Canada and Byrna South Africa. All material intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform with the presentation of amounts for the year ended November 30, 2019. |
NATURE OF OPERATIONS AND GOING
NATURE OF OPERATIONS AND GOING CONCERN | 12 Months Ended |
Nov. 30, 2019 | |
Nature of operations and going concern [Abstract] | |
NATURE OF OPERATIONS AND GOING CONCERN [Text Block] | 2. NATURE OF OPERATIONS AND GOING CONCERN The Company is a less-lethal defense technology company, specializing in innovative next generation solutions for security situations that do not require the use of lethal force. The Company has implemented manufacturing partnerships in the United States and South Africa, to assist in the deployment of their patented and patent pending family of 40mm and .68 caliber products. These products consist of the current manufacture of Blunt Impact Projectile 40mm ("BIP") line of products, a line of 12 gauge less-lethal products, and the .68 caliber handheld personal security device called the Byrna ® ® These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. There is substantial doubt about the Company's ability to continue as a going concern for one year after the issuance of these financial statements. The Company's activities are subject to risk and uncertainties including: The Company has not earned adequate revenue to sustain its operations and has used cash in its operations. Therefore, the Company will need additional financing to continue its operations if it is unable to generate substantial revenue growth. The Company has incurred a cumulative loss of $ ® ® The Company is also significantly impacted by COVID-19, experiencing both positive and negative effects from the virus and resulting suspension of economic activity and daily routines. The government mandated lock down orders and stay-at-home requirements have significantly disrupted the Company's supply chain and temporarily stopped production of the Byrna ® |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported and reported amount of revenues and expenses, and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements. Significant estimates include accruals, valuation allowance for deferred tax assets, inventory, determination of the Company's ability to continue as a going concern, estimates in the fair value of derivative liabilities, estimates for calculations of stock-based compensation and warrants issued, estimates of the useful life of (1) property and equipment and (2) patent rights, and accounting for conversion features on convertible debt transactions. These estimates are based on management's best estimates and judgment. Management will adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, actual results could differ significantly from these estimates. b) Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized to the extent the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with Accounting Standards Codification ("ASC") 740, Income Taxes The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. As of November 30, 2019, no accrued interest or penalties related to unrecognized tax benefits are included in the consolidated balance sheet. See Note 11. c) Revenue Recognition Revenue is recognized upon the transfer of control of products to the Company's customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services. Revenue is generally recognized at the time title to the goods is passed and the risk of loss is transferred to the customer. Depending on the contract terms, transfer of control is upon shipment of goods ("free on truck") to or upon the customer's pick-up of the goods. The amount of revenue is recognized net of actual returns and discounts offered to its customers. The Company's returns to date through November 30, 2019 have been immaterial and the Company will recognize an estimated reserve, when material, based on its analysis of historical experience and an evaluation of current market conditions. Sales to customers are generally based on net 30-60-day credit terms, unless otherwise stated. Online sales are processed by credit cards. Cash receipts recorded in deferred revenue are recorded as revenues when the Company satisfies its performance obligation. The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. Shipping and handling costs, associated with the distribution of finished products to customers, are recorded in selling, general and administrative ("SG&A") expenses and are recognized when the product is shipped to the customer. Shipping and handling costs included in SG&A were $21,487 and $13,936 during the years ended November 30, 2019 and 2018, respectively. Costs to obtain a contract consist of commissions paid to employees. As product revenue is recognized at a point in time, the practical expedient stated in ASC 340-40-25-4, Contracts with Customers, The Company's products come with a standard assurance type warranty which cannot be purchased separately and accounted for pursuant to ASC 460, Guarantees d) Loss Per Share Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the year. Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year and the conversion feature of convertible notes payable. There were no common stock equivalent shares outstanding during the years ended November 30, 2019 and 2018 that have been included in dilutive loss per share calculation as the effects would have been anti-dilutive. At November 30, 2019, there are 2,911,667 options and options and e) Stock-Based Compensation The Company accounts for all stock-based payment awards granted to employees and non-employees as stock-based compensation expense at fair value. The Company's stock-based payments include stock options and grants of warrants. The measurement date for employee awards is the date of grant, and stock-based compensation costs are recognized as expense over the employees' requisite service period, on a straight-line basis. The measurement date for non-employee awards is generally the date the services were completed, resulting in financial reporting period adjustments to stock-based compensation during the vesting terms for changes in the fair value of the awards. Stock-based compensation costs for non-employees are recognized as expense over the vesting period on a straight-line basis. Stock-based compensation is classified in the accompanying statements of operations based on the function to which the related services are provided, which is in SG&A expenses. The Company recognizes stock-based compensation expense over the contractual term of the options. Forfeitures are accounted for as they occur. The fair value of each stock option grant is estimated on the date of grant by using either the Black-Scholes or Binomial Lattice option pricing models. The Company estimates its expected stock volatility based on the historical volatility of its stock. The expected term of the Company's stock options granted to employees has been determined utilizing the method as prescribed by the SEC's Staff Accounting Bulletin, Topic 14. The expected term for stock options granted to non-employees is equal to the contractual term of the options. The risk-free interest rate is determined by reference to the US Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends on common stock and does not expect to pay any cash dividends in the foreseeable future. See Note 7. f) Foreign Currency The Company maintains its books and records in US dollars which is its functional and reporting currency. The Company's two operating subsidiaries are foreign private companies. SDI Canada and Byrna South Africa maintain their books and records in their functional currency, Canadian dollars and South African rand, respectively. Both subsidiaries' financial statements are converted to US dollars for consolidation purposes. The translation method used is the current rate method. Under the current rate method, all assets and liabilities are translated at the current rate, stockholders' equity accounts are translated at historical rates, and revenues and expenses are translated at average rate for the year. The resulting translation adjustment has been included in accumulated other comprehensive loss. Gains or losses resulting from transactions in currencies other than the functional currency are reflected in the consolidated statement of operations and comprehensive loss for the related reporting periods. g) Comprehensive Loss Comprehensive loss includes all changes in equity (deficit) during a period from non-owner sources. Items included in comprehensive loss, which are excluded from net loss, include foreign currency translation adjustments relating to its Canadian and South African subsidiaries. h) Financial Instruments The carrying amount of accounts receivable and accounts payable and accrued liabilities, approximated their fair value because of the relatively short maturity of these instruments. The Company determines fair value based on its accounting policy for fair value measurement (i.e. exit price that would be recovered for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date). The Company has not used derivative financial instruments such as forwards to hedge foreign currency exposures. Convertible debt issued is initially recognized at fair value. Derivative liabilities are measured at fair value at each reporting period and convertible debt is subsequently measured at amortized cost. i) Fair Value Measurement The Company follows ASC 820-10, Fair Value Measurements and Disclosures • • • The carrying values of cash, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair values because of the short-term nature of these instruments. The Company's derivative liability which had a balance of $Nil and $957,301 at November 30, 2019 and 2018, respectively, was classified within Level 3 of the fair value hierarchy as it was valued using pricing models that incorporate management assumptions that cannot be corroborated with observable market data. See Note 15. j) Convertible Debt Instruments When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments the Company accounts for convertible debt instruments in accordance with ASC 470-20, Debt with Conversion and Other Options k) Intellectual Property The perpetual, irrevocable, exclusive and non-exclusive license to use technology with respect to the cost of patent rights acquired in 2018 is capitalized and amortized over the estimated useful life, currently estimated to be 15 years. l) Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided commencing in the month following acquisition using the following annual rate and method: Computer equipment and software 30% declining balance method Furniture and fixtures 30% declining balance method Leasehold improvements Straight line over period of lease Molds 20% straight line over 5 years m) Restricted Cash Cash that is subject to legal restrictions or unavailable for use in operations is classified as restricted cash. n) Impairment of Long-lived Assets Long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. If there are indications of impairment, the Company uses future undiscounted cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable. In the event such cash flows are not expected to be sufficient to recover the recorded asset values, the assets are written down to their estimated fair value. There were no impairments of long-lived assets during the years ended November 30, 2019 and 2018, respectively. o) Inventories Inventories are principally comprised of raw materials and finished goods, and are valued at the lower of cost or net realizable value with cost being determined on the first-in, first-out basis. The Company reviews inventories for slow-moving items to determine adjustments that it estimates will be needed to record inventory at lower of cost or net realizable value. Inventory costs include subcontracted manufacturing costs. Inbound freight costs, inclusive of freight between distribution facilities, are included in costs of goods sold. p) Advertising Advertising related costs are expensed as incurred and are included in SG&A expenses. Advertising expenses were $366,786 and $262,248 during the years ended November 30, 2019 and 2018, respectively. Prepaid advertising expenses recorded in prepaid expenses and other current assets were $Nil and $750,000 at November 30, 2019 and 2018, respectively. q) Research and development Research and development (“R&D”) costs are expensed as incurred and are included in SG&A expenses. R&D costs were $158,105 and $164,162 during the years ended November 30, 2019 and 2018, respectively. r) Consolidation These consolidated financial statements include the accounts of the Company and the entities it controls. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity or arrangement to obtain benefit from its activities. In assessing control, potential voting rights that currently are exercisable are considered. The financial statements of the subsidiary are included in the consolidated financial statements from the date that control commences until the date that control ceases. These consolidated financial statements include the results of the Company and its wholly owned subsidiaries, SDI Canada, and Byrna South Africa. On March 1, 2018, the Company purchased all the shares of a South African entity Rephit (Pty) Ltd., an inactive company, for $300 (South African rand 4,000) and subsequently changed the name of the subsidiary to Byrna South Africa. The Company acquired Byrna South Africa to facilitate the development of the Byrna ® s) Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting, Revenue from Contracts with Customers Leases Earnings Per Share (Topic: 260), Distinguishing Liabilities from Equity (Topic: 480), Derivatives and Hedges (Topic 815) In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. FASB issued the update to include share-based payment transaction for acquiring goods or services from nonemployees in Topic 718, Compensation - Stock Compensation. The Company adopted ASU 2018-07 in the first quarter of 2020 prospectively, and the Company does not expect this to have a material impact on its financial statements for share-based payments issued to nonemployees during fiscal 2020. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic: 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments be effective for the Company in the first quarter of 2021. Early adoption is permitted . The Company is currently evaluating the impact of adopting this update on the consolidated financial statements. Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Nov. 30, 2019 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH [Text Block] | 4. RESTRICTED CASH The Company's restricted cash consists of cash that the Company is contractually obligated to maintain in accordance with the terms of its November 2019 lease agreement. |
REVENUE, DEFERRED REVENUE AND A
REVENUE, DEFERRED REVENUE AND ACCOUNTS RECEIVABLE | 12 Months Ended |
Nov. 30, 2019 | |
Revenue, Deferred Revenue And Accounts Receivable [Abstract] | |
REVENUE, DEFERRED REVENUE AND ACCOUNTS RECEIVABLE [Text Block] | 5. REVENUE, DEFERRED REVENUE AND ACCOUNTS RECEIVABLE The Company generates revenue primarily from sales of finished products. Revenue is recognized upon the transfer of control of products to the Company's customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services. Product Sales The Company generates revenue through the wholesale distribution of its products and accessories to dealers/distributors, large end-users (security companies and law enforcement agencies) and through an e-commerce portal to consumers. Revenue is recognized upon transfer of control of goods to the customer, which generally occurs when title to goods is passed and risk of loss transfers to the customer. Depending on the contract terms, transfer of control is upon shipment of goods to or upon the customer's pick-up of the goods. Payment terms are generally 30-60 days for established customers, whereas new customers have prepaid terms for their first order. The amount of revenue recognized is net of returns and discounts that the Company offers to its customers. The Company's returns have been immaterial and the Company will recognize an estimated reserve, when material, based on its analysis of historical experience and an evaluation of current market conditions. The Company excludes from revenue taxes collected from customers and remitted to government authorities related to sales of the Company's products. Shipping and handling costs that occur after control of goods has been transferred to the customer and that are not billed to the customer are accounted for as fulfillment costs. Deferred Revenue Changes in deferred revenue which relate to unfulfilled e-commerce orders for the year ended November 30, 2019 are summarized below. The associated performance obligations were satisfied during fiscal 2020. Deferred Revenue Balance, November 30, 2018 $ — Net additions to deferred revenue 10,842 Balance, November 30, 2019 $ 10,842 See Note 3 for further discussion of the adoption of the new revenue standard. Accounts Receivable November 30, 2019 2018 Accounts receivable $ 438,255 $ 18,914 Accounts receivable at November 30, 2019 primarily relates to sales of the new Byrna ® Revenue Disaggregation The following table presents disaggregation of the Company's revenue by product type and distribution channel: Years Ended Product type 2019 2018 Byrna® HD $ 850,404 $ — Law Enforcement 74,015 250,227 Total $ 924,419 $ 250,227 Years Ended Distribution channel 2019 2018 Wholesale (dealer/distributors and large end-users) $ 602,838 $ 250,227 E-commerce 321,581 — Total $ 924,419 $ 250,227 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Nov. 30, 2019 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES [Text Block] | 6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities are comprised of the following: November 30, 2019 2018 Trade payables $ 600,878 $ 126,366 Deferred revenue 10,842 — Other accrued liabilities 38,999 254,176 $ 650,719 $ 380,542 The increase in trade payables at November 30, 2019 is primarily due to an increase in purchases of raw material inventory. Other accrued liabilities at November 30, 2018 relate primarily to professional and consulting fees. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Nov. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION [Text Block] | 7. STOCK-BASED COMPENSATION 2017 Plan In 2017, the Company adopted the Security Devices International Inc. 2017 Stock Option Plan (the "2017 Plan") for the issuance of stock options and other stock-based awards, authorizing 9,379,857 shares of the Company's common stock to be issued. On December 19, 2017, the 2017 Plan was amended to increase the number of shares reserved for issuance from 9,379,857 to 18,993,274. At the time that the 2017 Plan was adopted, the Company was trading on the Toronto Stock Exchange ("TSX"). On October 15, 2018, the Company ceased trading on the TSX and was listed on the Canadian Stock Exchange ("CSE"). As part of this change, the Company amended the 2017 Plan to allow for the exercise of options under the 2017 Plan to be traded on the CSE. Accordingly, on October 13, 2019, the Board approved the first amendment to the 2017 Plan (the "First Amendment"). The First Amendment amends the 2017 Plan for specific rules and definitions that must be adhered to on the CSE. All other provisions of the 2017 Plan remain. The First Amendment is subject to approval by the majority of the Company's shareholders which may be obtained by consent or by vote at a general or special meeting of the shareholders. During the years ended November 30, 2019 and 2018, the Company granted options to purchase 120,000 shares and 1,900,000 shares, respectively, of common stock to employees and directors. The Company recorded stock-based compensation expense for options granted to employees and directors of $31,530 and $98,343 during the years ended November 30, 2019 and 2018, respectively. During the years ended November 30, 2019 and 2018, the Company granted options to purchase no shares and 250,000 shares, respectively, of common stock to non-employees. The Company recorded stock-based compensation expense for options granted to non-employees of $Nil and $30,456 during the years ended November 30, 2019 and 2018, respectively. Stock Option Valuation The assumptions that the Company used to determine the grant-date fair value of stock options granted to employees and non-employees for the years ended November 30, 2019 and 2018 were as follows: Year ended November 30, 2019 Employee Options (Black-Scholes option pricing model) Risk free rate 2.00% Expected dividends 0% Expected volatility 133% Expected life 5 years Market price of the Company's common stock on date of grant $ 0.14 Exercise price $ 0.14 Year ended November 30, 2018 Employee Options (Binomial Lattice option pricing model) Risk free rate 2.77% Expected dividends 0% Expected volatility 190% Expected life 7 years Market price of the Company's common stock on date of grant of options $ 0.15 Exercise price $ 0.16 Director and Non-Employee Options (Black-Scholes option pricing model) Risk free rate 2.00% Expected dividends 0% Expected volatility 133% Expected life 5 years Market price of the Company's common stock on date of grant of options $ 0.14 Exercise price $ 0.14 The following table summarizes option activity under the 2017 Plan during the years ended November 30, 2019 and 2018: Number of options 2019 2018 Outstanding, beginning of year 6,376,667 4,866,667 Granted 120,000 2,150,000 Expired (1,270,000 ) — Cancelled (2,315,000 ) (640,000 ) Outstanding, end of year 2,911,667 6,376,667 Exercisable, end of year 1,411,667 5,189,167 2019: Weighted-average exercise price: Options outstanding at end of year CDN$ 0.19 ($0.14 ) Options granted during the year CDN$ 0.19 ($0.14 ) Options expired during the year CDN$ 0.37 ($0.28 ) Options cancelled during the year CDN$ 0.22 ($0.17 ) The aggregate intrinsic value of options outstanding and exercisable at November 30, 2019 is $19,600. 2018: Weighted-average exercise price: Options outstanding at end of year CDN$ 0.22 ($0.18 ) Options granted during the year CDN$ 0.20 ($0.16 ) Options cancelled during the year CDN$ 0.30 ($0.23 ) The aggregate intrinsic value of options outstanding and exercisable at November 30, 2018 is $88,500. The share options outstanding at the end of the year had a weighted-average remaining contractual life as follows: 2019 2018 (Years) (Years) Total outstanding options 4.3 3.5 Total exercisable options 3.1 2.0 Incentive Warrants During the year ended November 30, 2019, the Company issued 750,000 warrants each to two consultants (the "Incentive Warrants") to purchase common shares. The Incentive Warrants were issued outside of the 2017 Plan. Stock-based compensation expense for the year ended November 30, 2019 was $186,624, before a tax benefit of $50,986 which has been fully reserved in the valuation allowance. The Company did not issue Incentive Warrants in 2018. As of November 30, 2019, non-vested stock-based compensation expense associated with the Incentive Warrants was $7,465. Incentive Warrant Valuation The assumptions that the Company used to determine the grant-date fair value of Incentive Warrants granted to two consultants for the year ended November 30, 2019 were as follows: Year ended November 30, 2019 Incentive Warrants (Black-Scholes option pricing model) Risk free rate 2.00% Expected dividends 0% Expected volatility 149% Expected life 3 years Market price of the Company's common stock on date of grant $ 0.16 Exercise price $ 0.16 Stock-Based Compensation Expense Total stock-based compensation expenses of $218,154 and $128,799 for the years ended November 30, 2019 and 2018, respectively, were recorded in SG&A expenses. As of November 30, 2019, there was $30,715 of unrecognized expense related to non-vested stock-based compensation arrangements granted. The weighted-average period over which total compensation cost related to non-vested awards not yet recognized is expected to be recognized is 1.4 years. |
WARRANTS
WARRANTS | 12 Months Ended |
Nov. 30, 2019 | |
Warrants [Abstract] | |
WARRANTS [Text Block] | 8. WARRANTS On September 16, 2019, the Company entered into a securities purchase agreement with two investors to sell a total of 818.0 units, for aggregate principal of $818,000, at a price of $1,000 per unit, consisting of (i) $1,000 10% interest secured convertible promissory note, convertible into the Company's common stock at a conversion price of $0.15 per share and (ii) four thousand warrants each exercisable for one share of common stock at an exercise price of $0.25 per share on or before January 22, 2024. The Company issued 3,272,000 warrants in connection with this transaction. The relative grant date fair value of these warrants was estimated at $363,846 using the Binomial lattice option pricing model and reflected in additional paid-in capital, with the following assumptions: Risk free rate 1.69% Expected dividends 0% Expected volatility 150% Expected life 4.35 years Market price of the Company's common stock on date of grant $ 0.16 Exercise price $ 0.25 On July 22, 2019, the Company entered into a securities purchase agreement with several investors to sell a total of 2,282.5 units, for aggregate principal of $2,282,500, at a price of $1,000 per unit, consisting of (i) $1,000 10% interest secured convertible promissory note, convertible into the Company's common stock at a conversion price of $0.15 per share and (ii) four thousand warrants each exercisable for one share of common stock at an exercise price of $0.25 per share on or before January 22, 2024. The Company issued 9,130,000 warrants in connection with this transaction. The relative grant date fair value of these warrants was estimated at $1,038,081 using the Binomial lattice option pricing model and reflected in additional paid-in capital, with the following assumptions: Risk free rate 1.8% Expected dividends 0% Expected volatility 154% Expected life 4.5 years Market price of the Company's common stock on date of grant $ 0.16 Exercise price $ 0.25 On April 22, 2019 and May 20, 2019, the Company entered into a securities purchase agreement with several accredited investors to sell a total of 2,080.265 units, for aggregate principal of $2,080,265, at a price of $1,000 per unit, consisting of (i) $1,000 10% interest secured convertible promissory note, convertible into the Company's common stock at a conversion price of $0.15 per share and (ii) four thousand warrants each exercisable for one share of common stock at an exercise price of $0.25 per share on or before October 22, 2023. The Company issued 8,321,058 warrants in connection with this transaction. The relative grant date fair value of these warrants was estimated at $888,444 using the Binomial lattice option pricing model and is reflected in additional paid-in capital, with the following assumptions: Risk free rate 2.21—2.39% Expected dividends 0% Expected volatility 155—156% Expected life 4.5 years Market price of the Company's common stock on date of grant $ 0.15 Exercise price $ 0.25 On October 22, 2018, the Company entered into a securities purchase agreement with several accredited investors to sell 1,275.0 units, for aggregate principal of $1,275,000, at a price of $1,000 per unit, consisting of (i) $1,000 10% interest convertible promissory note ("the 2018 Notes"), convertible into the Company's common stock at a conversion price of $0.15 per share (See Note 15), and (ii) four thousand warrants each exercisable for one share of common stock at an exercise price of $0.25 per share on or before the five year anniversary of the issuance. Pursuant to this private placement, the Company issued 5,100,000 warrants. The grant date fair value of these warrants was estimated at $524,089 using the Binomial lattice option pricing model and reflected in additional paid-in capital, with the following assumptions: Risk free rate 3.05% Expected dividends 0% Expected volatility 159% Expected life 5 years Market price of the Company's common stock on date of grant $ 0.14 Exercise price $ 0.25 Th e following table summarizes warrant activity during the years ended November 30, 2019 and 2018: Number of Weighted- Warrants Exercise Granted Price $ Outstanding at November 30, 2017 20,941,160 0.18 Granted 5,100,000 0.25 Expired — — Outstanding at November 30, 2018 26,041,160 0.19 Granted 22,223,058 0.25 Expired (2,476,999 ) (0.16 ) Outstanding at November 30, 2019 45,787,219 0.22 Exercisable at November 30, 2019 45,037,219 0.22 Exercisable at November 30, 2018 26,041,160 0.19 The warrants outstanding at the end of the year had a weighted-average remaining contractual life as follows: 2019 2018 (Years) (Years) Total outstanding warrants 3.55 3.88 Total exercisable warrants 3.50 3.88 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Nov. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS [Text Block] | 9. RELATED PARTY TRANSACTIONS The following transactions are in the normal course of operations and are measured at the amount of consideration established and agreed to by related parties. Amounts due to related parties are unsecured, non-interest bearing (with the exception of notes payable) and due on demand. The Company expensed a total of $51,876 and $27,600 related to 360,000 and 180,000 shares of common stock issued for services provided by Dean Thrasher ("Thrasher"), a former director of the Company, during the years ended November 30, 2019 and 2018, respectively. The Company also recorded stock-based compensation expense of $39,046 during the year ended November 30, 2018 related to stock options to acquire 1,150,000 shares of common stock which expired during the year ended November 30, 2019 (2019: $Nil). The Company expensed $8,333 for royalties due to Buys during the year ended November 30, 2019. The Company also recorded stock-based compensation expense of $16,909 and $10,568 during the year ended November 30, 2019 and 2018, respectively, related to stock options granted to him in 2018 to acquire 1,500,000 shares of common stock. The Company leased office premises at Wakefield, Massachusetts for rent, utilities and maintenance charge of approximately $2,090 per month from a corporation owned and controlled by Bryan Ganz ("Ganz"), President and, effective April 1, 2019, Chief Executive Officer ("CEO") of the Company. The Company expensed approximately $23,600 and $12,939 for these items for the years ended November 30, 2019 and 2018, respectively. Current directors and officers of the Company participated in the April 22, 2019, May 20, 2019 and July 22, 2019 financing for 316 units for total proceeds of $315,588, of which $95,000 was issued to officers for services rendered. Directors and officers of the Company participated in the October 2018 financing for total proceeds of $100,000 of units. The Company issued 1,744,937 and 2,296,100 shares of common stock for $272,339 and $330,908, respectively, for services to its directors and management during the years ended November 30, 2019 and 2018. The Company's payables due to related parties were $Nil and $137,380 as of November 31, 2019 and 2018, respectively. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Nov. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT [Text Block] | 10. PROPERTY AND EQUIPMENT Property and equipment are recorded at cost less accumulated depreciation. The following table summarizes cost and accumulated depreciation as of November 30, 2019 and 2018, respectively. November 30, 2019 November 30, 2018 Accumulated Accumulated Cost Depreciation Cost Depreciation $ $ $ $ Computer equipment and software 116,348 58,804 77,382 46,837 Furniture and fixtures 20,998 19,513 20,998 18,763 Leasehold improvements 26,471 26,471 26,471 26,471 Molds 507,347 245,088 291,599 210,961 Total 671,164 349,876 416,450 303,032 Net carrying amount $ 321,288 $ 113,418 Depreciation expense $ 46,844 $ 19,392 The Company deposited $196,921 and $205,664 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES [Text Block] | 11. INCOME TAXES Loss before income taxes consists of the following: Year Ended November 30, 2019 2018 United States $ (4,199,856 ) $ (2,113,412 ) Foreign (209,929 ) (40,062 ) Total $ (4,409,785 ) $ (2,153,474 ) The Company's provision for income taxes was $Nil in each of the years ended November 30, 2019 and November 30, 2018. A reconciliation of the Company's statutory income tax rate to the Company's effective income tax rate is as follows: Year Ended November 30, 2019 2018 Income at US statutory rate 21.00% 21.00% State taxes, net of Federal benefit 9.24% 0.00% Permanent differences (5.44%) (1.95%) Tax law change 0.00% (107.78%) Foreign rate differential 0.34% 0.13% Valuation allowance (24.34%) 88.60% Other (0.79%) 0.00% Total 0.00% 0.00% The net deferred income tax asset balance related to the following: November 30, 2019 2018 Depreciation $ (88,502 ) $ — Stock compensation 96,033 — Inventory reserve 15,611 — Net operating loss ("NOL") carryforwards 5,845,058 4,794,900 Total deferred tax assets 5,868,199 4,794,900 Valuation allowance (5,868,199 ) (4,794,900 ) Net deferred tax assets (liabilities) $ — $ — As of November 30, 2019, the Company had federal and state NOL carryforwards of approximately $21.3 million and $6.3 million, respectively, which begin to expire in 2025 for federal and state purposes. The federal NOL carryforwards include approximately $5.0 million, which do not expire. As of November 30, 2019, the Company has Canadian NOL carryforwards of $3.4 million, which begin to expire in 2034. As of November 30, 2019, the Company also has $0.2 million of South African NOLs which do not expire. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Nov. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS [Text Block] | 12. COMMITMENTS a) Consulting agreements: Effective November 1, 2018, the Company entered into consulting agreements (the "Consulting Agreements") with two consultants. The consultants will each be paid $7,500 per month commencing November 1, 2018 and to be increased to $10,000 per month subsequent to the month the Company begins shipping the Byrna HD product to customers. The term of the contracts with the consultants continue until December 31, 2019. In addition, the Company issued to each consultant 750,000 warrants (the "incentive warrants") to purchase common shares of the Company at a strike price equal to the average trading price of the Company on the OTC QB during the 20 business days preceding such approval. 50% of the incentive warrants vested upon issuance and balance vest upon the completion of the service term. The incentive warrants have a three-year life. See Note 7. Effective October 29, 2018, the Company entered into a consulting agreement with Lisa Wager ("Wager") pursuant to which she serves as CLO of the Company. By the terms of the consulting agreement, Wager was paid a total of 250,000 common shares for the services calculated at 83,333 common shares per month commencing November 1, 2018 and expiring on January 31, 2019. A total of 416,666 common shares were issued during the year ended November 30, 2019. When this agreement ended, Wager was retained and paid by board resolutions from February 1 through June 30, 2019 and became an employee effective July 1,2019. Her base salary was $15,000/month per board resolution. The Company executed a consulting agreement effective July 1, 2018 with a corporation owned by Thrasher, then executive chairman. The contract expired on March 31, 2019. Effective June 1, 2018, the Company entered into a consulting agreement with Ganz pursuant to which Ganz serves as President of the Company. By the terms of the consulting agreement, Ganz was paid $200,000 annually in shares of the Company's common stock for his service, subject to stock exchange approval. The common shares were issued quarterly, ending March 31, 2019. For the Company's 2018 fiscal third and fourth quarters, Ganz was paid 500,000 common shares for each quarter. Based on the consulting agreement, Ganz received 833,333 shares during the year ended November 30, 2019 for services through March 31, 2019. Ganz was paid pursuant to board resolution for April-June 2019 and became an employee effective July 1, 2019 with a base salary of $20,000/month set by board resolution. On April 13, 2018, the Company entered into a Purchase and Sale Agreement (the “Agreement”) with Buys, a resident of South Africa, pursuant to which the Company purchased from Buys a portfolio of registered patent rights and other intellectual property relating to air and/or gas fired long guns or pistols and munitions used with such pistols and long guns, including self-stabilizing shaped or “finned” rounds (the “Portfolio”). As consideration for the Portfolio, the Company (i) paid Buys $100,000, (ii) agreed to pay Buys either $500,000 in cash or $750,000 worth of Company stock within two years (the “Second Payment”) at Buys’ discretion and (iii) agreed to pay Buys certain royalty payments for sales of products by the Company using technology covered by the Portfolio. In addition, the Company agreed to employ Buys as the CTO at a starting salary of $10,000 per month and to issue Buys 1,500,000 options under the Company's 2017 Plan for shares of the Company’s common stock with a strike price of $0.16 and a trigger price of $0.30, $0.50 and $1.00 for each batch of 500,000 options, respectively. The Company’s stock price must close above the trigger price for 20 days in order for the option to be triggered. The options have a seven-year life from grant date and Buys must remain employed by the Company for three years in order for the options to vest. The Agreement further provided that, until the earlier of, April 13, 2020 or the date the Second Payment is made, Buys will be paid a royalty of 10% of the Net Sales Price ("NSP") of products developed from the Portfolio, which will then be reduced to 4% until the sixth anniversary, 3% until the eighth anniversary, and 2% until the last expiration date of any of the intellectual property in the Portfolio. Until the royalty exceeds $25,000 per year, the Company is committed to a minimum payment of $25,000 per year beginning on the earlier of April 13, 2019 or Buys' relocation to Boston. In the event that the Company fails to make the Second Payment, the Portfolio would revert to Buys, but the Company would retain perpetual, irrevocable, exclusive and non-exclusive licenses to use Buys' "tailfin" technology for 40mm rounds, and have and retain a perpetual, irrevocable, non-exclusive license to use the Portfolio related to any and all products that Buys or the Company developed within two years of April 13, 2018. The Company agrees that it will not terminate Buys except for cause prior to the vesting of his options. The agreement was amended subsequent to November 30, 2019. See Note 20 for additional information. b) Lease commitments The Company has the following lease commitments by fiscal year at November 30, 2019: Location 2020 2021 2022 2023 2024 2025 and beyond Wilmington, MA $ 24,987 $ 115,371 $ 117,972 $ 120,979 $ 123,986 $ 300,660 Fort Wayne, IN 30,357 30,585 7,646 — — — South Africa* 13,098 2,217 — — — — Total $ 68,442 $ 148,173 $ 125,618 $ 120,979 $ 123,986 $ 300,660 (*USD based on November 30, 2019 exchange rate) The above lease commitments reflect annual escalation. During the years ended November 30, 2019 and 2018, the Company recognized rent expense of $60,316 and $36,659 respectively. |
EXCLUSIVE SUPPLY AND PURCHASE A
EXCLUSIVE SUPPLY AND PURCHASE AGREEMENTS | 12 Months Ended |
Nov. 30, 2019 | |
Exclusive supply and purchase agreement [Abstract] | |
EXCLUSIVE SUPPLY AND PURCHASE AGREEMENTS [Text Block] | 13. EXCLUSIVE SUPPLY AND PURCHASE AGREEMENTS The Company executed a manufacturing agreement with Roboro effective December 1, 2019 (binding agreement July 2019), whereby Roboro is its exclusive manufacturer in South Africa of various products including the Byrna® HD. Roboro's manufacturing activities will include plastic molding component production and assembly, dispatch and other services The contract term is through November 30, 2021 with two-year renewal terms. Roboro provided manufacturing services during the year end November 30, 2019. The Company entered into a Development, Supply and Manufacturing Agreement with the BIP manufacturer on August 1, 2017. This agreement provides the Company to order and purchase only from the BIP manufacturer certain BIP assemblies and components for use by the Company to produce less-lethal and training projectiles as described in the agreement. The agreement is for a term of four years with an automatic extension for additional one-year terms if neither party has given written notice of termination at least sixty (60) days prior to the end of the then- current term. The agreement does not contain any minimum purchase commitments. The Company entered a License and Supply Agreement with Safariland, LLC on May 1, 2017. This agreement provides the Company to license and sell only to Safariland, LLC for certain BIP standard payloads for integration with and production of certain less-lethal impact munitions in North America. This agreement is for a term of four years with an automatic extension for an additional one-year term if neither party has given written notice of termination at least 90 days prior to the end of the then-current term. |
SEGMENT AND GEOGRAPHICAL DISCLO
SEGMENT AND GEOGRAPHICAL DISCLOSURES | 12 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHICAL DISCLOSURES [Text Block] | 14. SEGMENT AND GEOGRAPHICAL DISCLOSURES The Company does not provide separate segment reporting. The CEO, who is also the Chief Operating Decision Maker, evaluates the business as a single entity, which includes reviewing financial information and making business decisions based on the overall results of the business. As such, the Company's operations constitute a single operating segment and one reportable segment. The tables below summarize the Company's revenue and long-lived assets for the fiscal years ended November 30, 2019 and 2018, respectively by geographic region. The Company's long-lived assets consist of patent rights, property and equipment, and deposits for equipment. Revenue US Canada South Africa Total 2019 $ 536,471 $ — $ 387,948 $ 924,419 2018 126,846 123,381 — 250,227 Long-lived assets US Canada South Africa Total 2019 $ 614,027 $ 3,184 $ — $ 617,211 2018 421,304 4,112 — 425,416 Total Assets US Canada South Africa Total 2019 $ 2,307,257 $ 50,415 $ 1,208,747 $ 3,566,419 2018 2,629,315 27,770 — 2,657,085 |
CONVERTIBLE NOTES PAYABLE AND D
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES | 12 Months Ended |
Nov. 30, 2019 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES [Text Block] | 15. CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES Convertible Notes Payable (short-term) $2,758,578 (2018: $978,361) On April 22, 2019 and May 20, 2019, the Company entered into a securities purchase agreement with several accredited investors to sell a total of 2,080.265 units, for aggregate principal of $2,080,265, with each $1,000 unit consisting of (i) a $1,000 10% interest convertible promissory note (collectively the "April/May 2019 Notes") due April 15, 2020, convertible into the Company's common stock at a conversion price of $0.15 per share, and (ii) four thousand (4,000) warrants each exercisable for one share of common stock at an exercise price of $0.25 per share on or before October 22, 2023. The April/May 2019 Notes are secured secondarily by all of the Company assets and accrue interest at 10% per annum, payable in cash at maturity. The principal amount, plus accrued interest, may be converted at the option of the holder at any time during the term to maturity into shares of common stock at a conversion price of $0.15 per share. The note embodies certain traditional default provisions that are linked to credit or interest risks, such as bankruptcy proceedings, liquidation events and corporate existence. The Company concluded that the April/May 2019 Notes meet the definition of conventional convertible debt provided in ASC 815 and the embedded conversion option is not subject to bifurcation and classification in the financial statements in liabilities at fair value. In connection with the issuance of the April/May 2019 Notes, the Company issued the holders warrants to purchase the common stock. The warrants are exercisable until October 23, 2023 for 8,321,060 of shares at a purchase price of $0.25 per share. The Company concluded that the warrants are indexed to the stock and, accordingly, the analysis resulted in the conclusion that these warrants achieved equity classification in the financial statements. As a result of the repayment of the November 2016 Subordinate Secured Debentures on May 31, 2019, the April/May 2019 Notes entered senior security position. The Company accounted for this transaction as a financing transaction, wherein the net proceeds received were allocated to the financial instruments issued which resulted in a discount. The warrants were valued at $ 888,444 1,191,821 72.35 457,570 123,726 On October 22, 2018, the Company entered into a Securities Purchase Agreement with several accredited investors to sell 1,275.0 units, for aggregate principal of $1,275,000, with each $1,000 of unit consisting of (i) a $1,000 10% interest convertible promissory note (collectively the "October 2018 Notes") due April 15, 2020, convertible into the Company's common stock at a conversion price of $0.15 per share, and (ii) four thousand (4,000) warrants each exercisable for one share of common stock at an exercise price of $0.25 per share on or before the five year anniversary of the issuance. These notes are secured secondarily by all of the Company assets and accrue interest at 10% per annum, payable in cash at maturity. As a result of the repayment of the November 2016 Subordinate Secured Debentures on May 31, 2019, these convertible notes entered senior security position. The principal amount, plus accrued interest, may be converted at the option of the holder at any time during the term to maturity into shares of common stock at a conversion price of $0.15 per share. The October 2018 Notes embodies certain traditional default provisions that are linked to credit or interest risks, such as bankruptcy proceedings, liquidation events and corporate existence. The Company concluded that the October 2018 Notes meet the definition of conventional convertible debt provided in ASC 815, Derivatives and Hedging The Company accounted for this transaction as a financing transaction, wherein the net proceeds received were allocated to the financial instruments issued which resulted in a discount. The warrants were valued at $524,089 and the balance of the convertible debt was $750,911. The discount is being charged to interest and is being accreted over the term of the note using the effective interest method. During the year ended November 30, 2019, the Company recorded $413,702 in accretion which includes the $95,584 adjustment related to the correction of a 2018 error discussed below. (2018: $35,530). In addition, the Company recorded interest expense of $124,356 for the year ended November 30, 2019 (2018: $16,767). The effective interest rate on the liability component, inclusive of the contractual rate and the accretion of the discount, was 50.54% during fiscal 2019. The Company was required to consider whether the hybrid contract embodied a beneficial conversion feature ("BCF"). The calculation of the effective conversion amount did not result in a BCF because the effective conversion price was equal to the Company's stock price on the date of issuance. The initial 2018 accounting for the October 2018 Notes concluded that, based on the Company's initial interpretation of the debt agreement, all three criteria under ASC 815-15-25-1 were met, and therefore, the conversion feature in the agreement required classification and measurement as a derivative financial instrument. During 2019, the Company re-evaluated the terms of the agreement and determined that the underlying notes did not contain any embedded terms or features that require classification as derivatives and the calculation of the effective conversion amount did not result in a beneficial conversion feature. The table below summarizes the initial accounting and impact related to 2018: October 22, 2018 Issuance: Original Revised Adjustment Convertible notes payable $ 131,547 $ 750,911 $ 619,364 Derivative liability 619,364 — (619,364 ) APIC (Warrants) 524,089 524,089 — Proceeds $ 1,275,000 $ 1,275,000 $ — Year Ended November 30, 2018 October 22, 2018 Issuance: Original Revised Adjustment Convertible notes payable $ 167,077 $ 793,946 $ 626,869 Derivative liability 531,285 — (531,285 ) Accrued interest payable 16,767 16,767 — Total Liabilities impact $ 95,584 Interest expense - accretion $ 35,530 $ 43,035 $ 7,505 Interest expense 16,767 16,767 — Change in fair value of derivative liability (88,079 ) — 88,079 Statement of Operations impact $ 95,584 The Company evaluated the consolidated financial statement impact in each of the previously filed annual and quarterly reporting periods and concluded that the correction is quantitatively and qualitatively immaterial to its previously filed consolidated financial statements. Since the derivative liability at November 30, 2018 should have been $Nil, the $95,584 impact related to the year ended November 30, 2018 statement of operations and comprehensive loss is reflected in the line, "Accretion of debt discounts" in the consolidated statement of operations and comprehensive loss for the year ended November 30, 2019. In recording the adjustment to accretion of debt discounts, the amounts reported in the line "Changes in fair value of derivative liabilities" in the consolidated statement of operations and comprehensive loss for the year ended November 30, 2019, represents changes to derivative liability associated with the December 7, 2016 CAD$1,363,000 Series B secured convertible debentures. The CAD$1,363,000 ($1,015,026) of Series B Secured Convertible Debentures ("Subordinate Secured Debentures") were issued pursuant to a Trust Indenture agreement dated December 7, 2016 (the "Indenture") in exchange for the Unsecured Debentures in equal principal amount and an additional CAD$36,000 ($26,640) of Series B Secured Convertible Debentures were issued pursuant to the Indenture in payment of accrued interest. These debentures matured on June 6, 2019 and accrued interest at 12% per annum, payable semi-annually. The debentures were secured by all of the Company's assets. The principal amount, plus accrued interest, could have been converted at the option of the holder at any time during the term to maturity into shares of the Company's common stock at a conversion price of $0.24 (CAD $0.31) per share, subject to anti-dilution protection with a minimum conversion price of $0.135 and for capital reorganization events. The debentures also embodied certain traditional default provisions that were linked to credit or interest risks, such as bankruptcy proceedings, liquidation events and corporate existence. The Company concluded that the embedded conversion option was not indexed to its stock because it did not pass all the conditions of equity classification provided in ASC 815. The embedded conversion option was subject to classification in the financial statements in liabilities at fair value both at inception and subsequently. The Company evaluated the terms and conditions of the debentures under the guidance of ASC 815. All three criteria under ASC 815-15-25-1 were met, therefore, the conversion feature required classification and measurement as derivative financial instruments. Accordingly, the evaluation resulted in the conclusion that this derivative financial instrument required bifurcation and liability classification, at fair value. Current standards contemplate that the classification of financial instruments required evaluation at each report date. The following table reflects the allocation of the purchase on December 7, 2016: Subordinate Secured Debentures Face Value (CAD $1,399,000) $ 1,041,835 Proceeds 1,041,835 Compound embedded derivative (see below for additional information) (285,612 ) Carrying value $ 756,223 The carrying value of the Subordinate Secured Debentures at November 30, 2018 was CAD $1,301,359 ($978,361). Effective May 31, 2019, the Company repaid these debentures for CAD $1,399,000 ($1,035,930) plus accrued interest. Discounts (premiums) on the Subordinate Secured Debentures arise from (i) the allocation of basis to other instruments issued in the transaction, (ii) fees paid directly to the creditor and (iii) initial recognition at fair value, which is lower than face value. Discounts (premiums) are amortized through charges (credits) to interest expense over the term of the debt agreement. Amortization of debt discounts (premiums) amounted to CAD $98,924 ($73,201) and CAD $151,795 ($118,898) during the years ended November 30, 2019 and 2018, respectively. During the year ended November 30, 2019, the Company recorded interest expense of $67,007 (November 30, 2018: $131,085). Convertible Notes Payable (long-term) $1,874,972 (2018: $167,077) On September 16, 2019, the Company entered into a securities purchase agreement with two investors to sell a total of 818.0 of units, for aggregate principal of $818,000, with each $1,000 of unit consisting of (i) a $1,000 10% interest convertible promissory note (collectively the "September 2019 Notes") due June 30, 2021, convertible into the Company's common stock at a conversion price of $0.15 per share, and (ii) four thousand (4,000) warrants each exercisable for one share of common stock at an exercise price of $0.25 per share on or before January 22, 2024. The September 2019 Notes are secured pari passu The Company accounted for this transaction as a financing transaction, wherein the net proceeds received were allocated to the financial instruments issued which resulted in a discount. The warrants were valued at $363,846 and the balance of the convertible debt was $454,154. The discount is being charged to interest and is being accreted over the term of the note using the effective interest method. The effective interest rate on the liability component, , inclusive of the contractual rate and the accretion of the discount, was 47.40% during fiscal 2019. During the year ended November 30, 2019, the Company recorded $37,943 in interest from the accretion of the discount (2018: $Nil). In addition, the Company recorded interest expense of $16,808 for the year ended November 30, 2019 (2018: $Nil). The Company was required to consider whether the hybrid contract embodied a BCF. The calculation of the effective conversion amount did not result in a BCF because the effective conversion price was equal to the Company's stock price on the date of issuance. On July 22, 2019, the Company entered into a securities purchase agreement with several investors to sell a total of 2,282.5 units, for aggregate principal of $2,282,500, with each $1,000 of unit consisting of (i) a $1,000 10% interest convertible promissory note (collectively the "July 2019 Notes") due June 30, 2021, convertible into the Company's common stock at a conversion price of $0.15 per share, and (ii) four thousand (4,000) warrants each exercisable for one share of common stock at an exercise price of $0.25 per share on or before January 22, 2024. The July 2019 Notes are secured pari passu The Company accounted for this transaction as a financing transaction, wherein the net proceeds received were allocated to the financial instruments issued which resulted in a discount. The warrants were valued at $1,038,081 and the balance of the convertible debt was $1,244,419. The discount is being charged to interest and is being accreted over the term of the note using the effective interest method. The effective interest rate on the liability component, inclusive of the contractual rate and the accretion of the discount, was 45.79% during fiscal 2019. During the year ended November 30, 2019 (2018: $Nil), the Company recorded $138,456 in interest from the accretion of the discount. In addition, the Company recorded interest expense of $81,920 for the year ended November 30, 2019. (2018: $Nil). The Company was required to consider whether the hybrid contract embodied a BCF. The calculation of the effective conversion amount did not result in a BCF because the effective conversion price was equal to the Company's stock price on the date of issuance. The Company was in compliance with all applicable financial and non-financial covenants under its financing arrangements as of November 30, 2019. On April 10, 2020, the Company converted the October 2018, April/May 2019, July 2019 and September 2019 Notes to shares of preferred stock. See Note 20 for additional information. The below table summarizes maturities of the Company's debt at November 30, 2019: Fiscal Year 2020 $ 3,355,265 2021 3,100,500 Total $ 6,455,765 Derivative Liabilities $Nil (2018: $957,301) The derivative liabilities balance at November 30, 2018 of $957,301 consisted of (a) $426,016 related to the CAD$1,363,000 Convertible Secured Debentures ($8,044,853 indexed shares) and (b) $531,285 related to the October 2018 Notes which, as noted in the above section, Convertible Notes Payable (short-term) The following table summarizes the effects on gain associated with changes in the fair values of derivative financial instruments by type of financing for the years ended November 30, 2019 and 2018: Year Ended November 30, 2019 Year Ended November 30, 2018 Subordinate Secured Debentures $ 426,019 $ 100,464 October 2018 Notes — 88,079 $ 426,019 $ 188,543 Fair Value Considerations As the associated notes payable were repaid on May 31, 2019, the derivative balance at November 30, 2019 was $Nil. The embedded derivative was fair valued using the income valuation technique using the Lattice valuation model. The following table sets forth the inputs for each significant assumption: Convertible Secured Debentures November 30, 2018 Derivative financial instruments $ 426,016 Conversion price $ 0.135 Volatility 91% Remaining term (years) 0.52 Risk free rate 2.52% A reconciliation of the Company's derivative liabilities measured at fair value is as follows: Derivative Liability Balance, November 30, 2017 $ 539,860 Liability associated with October 2018 Notes 619,364 Change in fair value of derivative liabilities (188,543 ) Foreign currency translation gain (13,380 ) Balance, November 30, 2018 957,301 Correction related to Oct 2018 Notes (531,285 ) Adjustment 3 Settlement (426,019 ) Balance, November 30, 2019 $ — |
INVENTORY
INVENTORY | 12 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY [Text Block] | 16. INVENTORY The following table summarizes inventory as of November 30, 2019 and 2018, respectively. November 30, November 30, Raw materials $ 449,767 $ — Work in process 32,098 — Finished goods 477,883 129,121 Total $ 959,748 $ 129,121 Inventory at November 30, 2019, primarily relates to the Byrna ® |
PATENT RIGHTS
PATENT RIGHTS | 12 Months Ended |
Nov. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
PATENT RIGHTS [Text Block] | 17. On April 13, 2018, the Company entered into a purchase and sale agreement with Buys, its CTO, pursuant to which the Company agreed to purchase from Buys the Portfolio of registered patent rights, provisional patent rights, and other intellectual property relating to air and/or gas fired long guns or pistols, including pump action launchers and munitions used with such pistols and long guns, including self-stabilizing shaped or "finned" rounds. As consideration for the Portfolio, the Company paid Buys $100,000, and incurred $10,000 in legal costs to transfer these patent rights. This consideration of $110,000 has been capitalized. The Company also agreed to pay Buys either $500,000 in cash or $750,000 worth of Company stock within two years (the "Second Payment") at Buys' discretion, if the Company elected to retain certain patents within the patent portfolio. In the event that the Company fails to make the Second Payment, the Portfolio would revert to Buys, but the Company would retain perpetual, irrevocable, exclusive and non-exclusive licenses to use technology with respect to the Portfolio and any technology developed within two years of April 13, 2018. Pursuant to an amendment of the Agreement subsequent to November 30, 2019, the Company made two additional payments to Buys and Buys no longer retains any reversion rights or security interests in the Portfolio. These patent rights have a maximum life of 20 years, expiring on various dates beginning from November 2033 to 2038, and are amortized straight-line commencing June 2018 over a period of 15 years. The Company amortized $7,332 and $3,666 during the years ended November 30, 2019 and 2018, respectively. As the Agreement included an option for full acquisition of the rights, conditional upon certain future events taking place, the Company recorded the minimum rights to a license arrangement as patent rights. As at November 30, 2019 and 2018, the amounts recorded as patent rights refer to the perpetual, irrevocable, exclusive and non-exclusive license to use technology with respect to the portfolio. The below table summarizes amortization of the Company's patents as of November 30, 2019 for the next five years: Fiscal Year 2020 $ 7,332 2021 7,332 2022 7,332 2023 7,332 2024 7,332 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Nov. 30, 2019 | |
Prepaid expenses and other receivables [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS [Text Block] | 18. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of November 30, 2019 include VAT receivables of $147,457, security deposit of approximately $92,000 for the MA lease which was returned in fiscal 2020 after the Company established a restricted cash account, and prepaid legal fees associated with future registrations of $55,862. Prepaid expenses and other current assets as of November 30, 2018 included the prepayment of $750,000 by the issuance of common shares to FinTekk, related to the marketing campaign for the launch of the Company's fiscal 2019 launch of the new product. In November 2018, the Company made a share issuance of 6,666,666 common stock to FinTekk at a price of $0.15 per share with a fair value of $1,000,000. The shares were issued pursuant to a debt settlement agreement, to retire certain debt owing by the Company to FinTekk, in connection with a sponsorship agreement (the "Sponsorship Agreement"). The Sponsorship Agreement detailed a marketing campaign for the launch of the Company's new product over the 2018 and 2019 fiscal years. The Company recognized $250,000 of expense related to the Sponsorship Agreement for the year ended November 30, 2018 with $750,000 remaining in prepaid expense at November 30, 2018. In November 2019, the Company reached an agreement to terminate its marketing agreement with FinTekk and Rick Ware Racing, LLC ("RWR"). As of November 30, 2019, 2,966,666 of the 6,666,666 of common shares were deemed earned. Pursuant to the termination agreement, FinTekk returned the remaining 3,700,000 shares of Company stock on January 8, 2020 and the Company will serve as primary sponsor of RWR for two additional NASCAR "Monster" series races. The 3,700,000 common shares were recognized as a redemption of stock issued for service within the statement of changes in stockholders' equity (deficit) for the year ended November 30, 2019 in the amount of $550,000, prepaid expenses were reduced to $ Nil |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Nov. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS [Text Block] | 19. FINANCIAL INSTRUMENTS The Company is exposed to risks that arise from its use of financial instruments. This note describes the Company’s objectives, policies and processes for managing those risks and the methods used to measure them. i) Currency Risk The Company held its cash balances within banks in Canada in both US dollars and Canadian dollars, with banks in the US in US dollars, and with banks in South Africa in US dollars and South African rand. The Company's operations are conducted in the US, Canada and South Africa. The value of the Canadian dollar and South African rand against the US dollar may fluctuate with the changes in economic conditions. During the year ended November 30, 2019, in comparison to the prior year, the US dollar strengthened in relation to both the Canadian dollar and South African rand, and upon the translation of the Company’s subsidiaries ' revenues, expenses, assets and liabilities held in Canadian dollars and South African rand, respectively, the Company recorded a translation adjustment loss of $ , which primarily related to the CAD (2018- a loss of $ ), in other comprehensive loss. The convertible debentures issued by the Company in Canadian currency reflected a currency gain of $ and $ for the years ended November 30, 2019 and 2018, respectively. The Company's Canadian and South African subsidiary revenues, cost of goods sold, operating costs and capital expenditures are denominated in Canadian dollars and South African rand, respectively. Consequently, fluctuations in the US dollar exchange rate against the Canadian dollar and South African rand increases the volatility of sales, cost of goods sold and operating costs and overall net earnings when translated into US dollars. The Company is not using any forward and option contracts to fix the foreign exchange rates. Using a 10% fluctuation in the US exchange rate, the impact on the loss and stockholders’ deficit is not material. ii) Credit Risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The financial instruments that potentially subject the Company to credit risk consist of cash and accounts receivable. The Company maintains cash with high credit quality financial institutions located in the US, Canada and South Africa. The Company maintains cash and cash equivalent balances with financial institutions in the United States in excess of amounts insured by the Federal Deposit Insurance Corporation. The Company provides credit to its customers in the normal course of its operations. It carries out, on a continuing basis, credit checks on its customers. iii) Revenue Concentration For the year ended November 30, 2019, two customers represented approximately 37% of total revenues as approximately 41% of the Company's 2019 revenues were generated through its directs sales to consumers on its e-commerce platform. (2018 - 65% from two customers). The accounts receivable from two customers represent approximately 77% of accounts receivable as of November 30, 2019 (2018 - 88% from three customers). The Company’s customers are in North America and South Africa. iv) Vendor Concentration During 2019, the Company purchased 100% ® HD and magazines. The Company’s operations rely significantly on these two suppliers. The Company is Roboro’s primary customer. Notwithstanding, the Company can source alternative suppliers. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Nov. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS [Text Block] | 20. SUBSEQUENT EVENTS The Company is significantly impacted by COVID-19, experiencing both positive and negative effects from the virus and resulting suspension of economic activity and daily routines. On the positive side, the general level of apprehension among the population, has led many people to seek means of protecting themselves and their families in the event that there is a breakdown or a fraying of the fabric of civil society. This general uneasiness has driven a run on guns and ammunition as well as increased demand for non-lethal weapons such as the Byrna ® Effective May 5, 2020, the Company acquired 100% of the outstanding common shares of Roboro for $500,000, subject to working capital adjustments and unpaid transaction expenses. As part of this stock acquisition, the Company also assumed payment of Roboro’s outstanding debt of rand 1,788,000 (approximately USD $97,000) plus accrued interest for March and April 2020. Concurrently with this stock acquisition, Roboro’s sellers agreed to purchase 1,388,889 of the Company’s common stock at $0.36 per share for total consideration of $500,000. The shares will be restricted when issued and subject to a 15 month vesting schedule. On May 4, 2020, the Company received a loan in the amount of $190,000 from the Paycheck Protection Program. On April 10, 2020, the Company exchanged an aggregate of approximately $6.95 million of all its outstanding October 2018 Notes, April/May 2019 Notes, July 2019 Notes and September 2019 Notes (collectively the "Notes"), representing principal and accrued interest, for 1,391 shares Series A Convertible Preferred Stock ("Preferred Stock"). The Company no longer has any outstanding notes payable. At the closing, in accordance with the Amendment and the Security Purchase Agreements pursuant to which the Notes were issued, the Company also issued 1,498,417 warrants to the holders reflecting 4,000 warrants for each $1,000 (US dollars) of unpaid interest accrued on the Notes. Each share of Preferred Stock has a $5,000 issue price. Dividends accrue on the issue price at a rate of 10.0% per annum and are payable to holders of Preferred Stock as, when and if declared by the Company's Board of Directors. Each share of Preferred Stock, is convertible into the number of shares of common stock equal to the issue price divided by the conversion price of $0.15. Upon conversion of the Preferred Stock, all accrued and unpaid dividends will be converted to common stock utilizing the same conversion formula. The conversion price is subject to proportional adjustment for certain transactions relating to the Company's common stock, including stock splits, stock dividends and similar transactions. Holders of Preferred Stock are entitled to a liquidation preference in the event of any liquidation, dissolution or winding up of the Corporation based on their shares' aggregate issue price and accrued and unpaid dividends. Holders may convert their shares of Preferred Stock into common stock at any time and the Company has the right to cause each holder to convert their shares of Preferred Stock at any time after the eighteen (18) month anniversary of the original issue date if the common stock has traded for more than twenty (20) consecutive trading days above $0.50 (as adjusted for stock splits, stock dividends and similar transactions). Holders of shares of Preferred Stock are not entitled to vote with the holders of common stock, however, for so long as there are 423 shares of Preferred Stock outstanding, the Company is required to obtain the consent of the holders of the Preferred Stock to take certain corporate actions, including to incur indebtedness in excess of $250,000 in the aggregate. In addition, the Company agreed to use its reasonable best efforts to register the shares of common stock issuable upon conversion of the Preferred Stock in due course following the exchange. During March 2020, the Company raised approximately $3.2 million through early warrant exercises, where 19,979,107 warrants were exercised for 19,979,107 shares of common stock. The warrant exercise price was reduced from $0.25 to $0.16 per warrant to induce warrant holders to exercise. On February 20, 2020, the October 2018 Notes, April/May 2019 Notes, July 2019 Notes and September 2019 Notes were amended by consent of all holders (the "Amendment") to waive all rights to receive interest in cash and to accept payment in kind of accrued interest. On December 19, 2019, the Company dissolved its subsidiary, SDI Canada. On December 18, 2019 the Company and Buys, its CTO, agreed to certain amendments to the terms of the previously announced purchase and sale agreement entered into on April 13, 2018 pursuant to which Buys sold and assigned certain intellectual property rights to the Company, which rights were subject to reversion in the event a Second Payment of $500,000 or $750,000 of restricted common shares of the Company's stock was not made by April 13, 2020 and Buys retained a security interest in the intellectual property pending the Second Payment. Pursuant to the amended terms (the "Amended Agreement"), which were approved by the Board on December 19, 2019, the Company will issue Buys restricted common stock valued at $630,000 (based on the average closing price over the 20 days prior to issuance) and an additional cash payment to Buys of $80,000 was payable prior to April 13, 2020. The Amended Agreement also terminates Buys' security interest and reversionary rights to the intellectual property and modifies other terms of the purchase and sale agreement to, among other things, clarify ambiguities related to the royalty terms. Subsequent to November 30, 2019 the Company granted (1) 3,917,500 stock options to its employees, management and directors and (2) 625,000 shares of restricted stock to management. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates [Policy Text Block] | a) Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported and reported amount of revenues and expenses, and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements. Significant estimates include accruals, valuation allowance for deferred tax assets, inventory, determination of the Company's ability to continue as a going concern, estimates in the fair value of derivative liabilities, estimates for calculations of stock-based compensation and warrants issued, estimates of the useful life of (1) property and equipment and (2) patent rights, and accounting for conversion features on convertible debt transactions. These estimates are based on management's best estimates and judgment. Management will adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, actual results could differ significantly from these estimates. |
Income Taxes [Policy Text Block] | b) Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized to the extent the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with Accounting Standards Codification ("ASC") 740, Income Taxes The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. As of November 30, 2019, no accrued interest or penalties related to unrecognized tax benefits are included in the consolidated balance sheet. See Note 11. |
Revenue Recognition [Policy Text Block] | c) Revenue Recognition Revenue is recognized upon the transfer of control of products to the Company's customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services. Revenue is generally recognized at the time title to the goods is passed and the risk of loss is transferred to the customer. Depending on the contract terms, transfer of control is upon shipment of goods ("free on truck") to or upon the customer's pick-up of the goods. The amount of revenue is recognized net of actual returns and discounts offered to its customers. The Company's returns to date through November 30, 2019 have been immaterial and the Company will recognize an estimated reserve, when material, based on its analysis of historical experience and an evaluation of current market conditions. Sales to customers are generally based on net 30-60-day credit terms, unless otherwise stated. Online sales are processed by credit cards. Cash receipts recorded in deferred revenue are recorded as revenues when the Company satisfies its performance obligation. The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. Shipping and handling costs, associated with the distribution of finished products to customers, are recorded in selling, general and administrative ("SG&A") expenses and are recognized when the product is shipped to the customer. Shipping and handling costs included in SG&A were $21,487 and $13,936 during the years ended November 30, 2019 and 2018, respectively. Costs to obtain a contract consist of commissions paid to employees. As product revenue is recognized at a point in time, the practical expedient stated in ASC 340-40-25-4, Contracts with Customers, The Company's products come with a standard assurance type warranty which cannot be purchased separately and accounted for pursuant to ASC 460, Guarantees |
Loss Per Share [Policy Text Block] | d) Loss Per Share Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the year. Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year and the conversion feature of convertible notes payable. There were no common stock equivalent shares outstanding during the years ended November 30, 2019 and 2018 that have been included in dilutive loss per share calculation as the effects would have been anti-dilutive. At November 30, 2019, there are 2,911,667 options and options and |
Share-based Payment Arrangement [Policy Text Block] | e) Stock-Based Compensation The Company accounts for all stock-based payment awards granted to employees and non-employees as stock-based compensation expense at fair value. The Company's stock-based payments include stock options and grants of warrants. The measurement date for employee awards is the date of grant, and stock-based compensation costs are recognized as expense over the employees' requisite service period, on a straight-line basis. The measurement date for non-employee awards is generally the date the services were completed, resulting in financial reporting period adjustments to stock-based compensation during the vesting terms for changes in the fair value of the awards. Stock-based compensation costs for non-employees are recognized as expense over the vesting period on a straight-line basis. Stock-based compensation is classified in the accompanying statements of operations based on the function to which the related services are provided, which is in SG&A expenses. The Company recognizes stock-based compensation expense over the contractual term of the options. Forfeitures are accounted for as they occur. The fair value of each stock option grant is estimated on the date of grant by using either the Black-Scholes or Binomial Lattice option pricing models. The Company estimates its expected stock volatility based on the historical volatility of its stock. The expected term of the Company's stock options granted to employees has been determined utilizing the method as prescribed by the SEC's Staff Accounting Bulletin, Topic 14. The expected term for stock options granted to non-employees is equal to the contractual term of the options. The risk-free interest rate is determined by reference to the US Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends on common stock and does not expect to pay any cash dividends in the foreseeable future. See Note 7. |
Foreign Currency [Policy Text Block] | f) Foreign Currency The Company maintains its books and records in US dollars which is its functional and reporting currency. The Company's two operating subsidiaries are foreign private companies. SDI Canada and Byrna South Africa maintain their books and records in their functional currency, Canadian dollars and South African rand, respectively. Both subsidiaries' financial statements are converted to US dollars for consolidation purposes. The translation method used is the current rate method. Under the current rate method, all assets and liabilities are translated at the current rate, stockholders' equity accounts are translated at historical rates, and revenues and expenses are translated at average rate for the year. The resulting translation adjustment has been included in accumulated other comprehensive loss. Gains or losses resulting from transactions in currencies other than the functional currency are reflected in the consolidated statement of operations and comprehensive loss for the related reporting periods. |
Comprehensive loss [Policy Text Block] | g) Comprehensive Loss Comprehensive loss includes all changes in equity (deficit) during a period from non-owner sources. Items included in comprehensive loss, which are excluded from net loss, include foreign currency translation adjustments relating to its Canadian and South African subsidiaries. |
Financial Instruments [Policy Text Block] | h) Financial Instruments The carrying amount of accounts receivable and accounts payable and accrued liabilities, approximated their fair value because of the relatively short maturity of these instruments. The Company determines fair value based on its accounting policy for fair value measurement (i.e. exit price that would be recovered for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date). The Company has not used derivative financial instruments such as forwards to hedge foreign currency exposures. Convertible debt issued is initially recognized at fair value. Derivative liabilities are measured at fair value at each reporting period and convertible debt is subsequently measured at amortized cost. |
Fair Value Measurement [Policy Text Block] | i) Fair Value Measurement The Company follows ASC 820-10, Fair Value Measurements and Disclosures • • • The carrying values of cash, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair values because of the short-term nature of these instruments. The Company's derivative liability which had a balance of $Nil and $957,301 at November 30, 2019 and 2018, respectively, was classified within Level 3 of the fair value hierarchy as it was valued using pricing models that incorporate management assumptions that cannot be corroborated with observable market data. See Note 15. |
Convertible debt instruments [Policy Text Block] | j) Convertible Debt Instruments When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments the Company accounts for convertible debt instruments in accordance with ASC 470-20, Debt with Conversion and Other Options |
Intellectual Property [Policy Text Block] | k) Intellectual Property The perpetual, irrevocable, exclusive and non-exclusive license to use technology with respect to the cost of patent rights acquired in 2018 is capitalized and amortized over the estimated useful life, currently estimated to be 15 years. |
Property and Equipment [Policy Text Block] | l) Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided commencing in the month following acquisition using the following annual rate and method: Computer equipment and software 30% declining balance method Furniture and fixtures 30% declining balance method Leasehold improvements Straight line over period of lease Molds 20% straight line over 5 years |
Restricted Cash [Policy Text Block] | m) Restricted Cash Cash that is subject to legal restrictions or unavailable for use in operations is classified as restricted cash. |
Impairment of Long-lived Assets [Policy Text Block] | n) Impairment of Long-lived Assets Long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. If there are indications of impairment, the Company uses future undiscounted cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable. In the event such cash flows are not expected to be sufficient to recover the recorded asset values, the assets are written down to their estimated fair value. There were no impairments of long-lived assets during the years ended November 30, 2019 and 2018, respectively. |
Inventories [Policy Text Block] | o) Inventories Inventories are principally comprised of raw materials and finished goods, and are valued at the lower of cost or net realizable value with cost being determined on the first-in, first-out basis. The Company reviews inventories for slow-moving items to determine adjustments that it estimates will be needed to record inventory at lower of cost or net realizable value. Inventory costs include subcontracted manufacturing costs. Inbound freight costs, inclusive of freight between distribution facilities, are included in costs of goods sold. |
Advertising [Policy Text Block] | p) Advertising Advertising related costs are expensed as incurred and are included in SG&A expenses. Advertising expenses were $366,786 and $262,248 during the years ended November 30, 2019 and 2018, respectively. Prepaid advertising expenses recorded in prepaid expenses and other current assets were $Nil and $750,000 at November 30, 2019 and 2018, respectively. |
Research and development [Policy Text Block] | q) Research and development Research and development (“R&D”) costs are expensed as incurred and are included in SG&A expenses. R&D costs were $158,105 and $164,162 during the years ended November 30, 2019 and 2018, respectively. |
Consolidation [Policy Text Block] | r) Consolidation These consolidated financial statements include the accounts of the Company and the entities it controls. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity or arrangement to obtain benefit from its activities. In assessing control, potential voting rights that currently are exercisable are considered. The financial statements of the subsidiary are included in the consolidated financial statements from the date that control commences until the date that control ceases. These consolidated financial statements include the results of the Company and its wholly owned subsidiaries, SDI Canada, and Byrna South Africa. On March 1, 2018, the Company purchased all the shares of a South African entity Rephit (Pty) Ltd., an inactive company, for $300 (South African rand 4,000) and subsequently changed the name of the subsidiary to Byrna South Africa. The Company acquired Byrna South Africa to facilitate the development of the Byrna ® |
Recent Accounting Pronouncements [Policy Text Block] | s) Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting, Revenue from Contracts with Customers Leases Earnings Per Share (Topic: 260), Distinguishing Liabilities from Equity (Topic: 480), Derivatives and Hedges (Topic 815) In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. FASB issued the update to include share-based payment transaction for acquiring goods or services from nonemployees in Topic 718, Compensation - Stock Compensation. The Company adopted ASU 2018-07 in the first quarter of 2020 prospectively, and the Company does not expect this to have a material impact on its financial statements for share-based payments issued to nonemployees during fiscal 2020. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic: 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments be effective for the Company in the first quarter of 2021. Early adoption is permitted . The Company is currently evaluating the impact of adopting this update on the consolidated financial statements. Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Depreciation Rates, Plant and Equipment [Table Text Block] | Computer equipment and software 30% declining balance method Furniture and fixtures 30% declining balance method Leasehold improvements Straight line over period of lease Molds 20% straight line over 5 years |
REVENUE, DEFERRED REVENUE AND_2
REVENUE, DEFERRED REVENUE AND ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Revenue, Deferred Revenue And Accounts Receivable [Abstract] | |
Schedule of deferred revenue [Table Text Block] | Deferred Revenue Balance, November 30, 2018 $ — Net additions to deferred revenue 10,842 Balance, November 30, 2019 $ 10,842 |
Schedule of accounts receivable [Table Text Block] | November 30, 2019 2018 Accounts receivable $ 438,255 $ 18,914 |
Schedule of revenue disaggregation [Table Text Block] | Years Ended Product type 2019 2018 Byrna® HD $ 850,404 $ — Law Enforcement 74,015 250,227 Total $ 924,419 $ 250,227 Years Ended Distribution channel 2019 2018 Wholesale (dealer/distributors and large end-users) $ 602,838 $ 250,227 E-commerce 321,581 — Total $ 924,419 $ 250,227 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | November 30, 2019 2018 Trade payables $ 600,878 $ 126,366 Deferred revenue 10,842 — Other accrued liabilities 38,999 254,176 $ 650,719 $ 380,542 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number of options 2019 2018 Outstanding, beginning of year 6,376,667 4,866,667 Granted 120,000 2,150,000 Expired (1,270,000 ) — Cancelled (2,315,000 ) (640,000 ) Outstanding, end of year 2,911,667 6,376,667 Exercisable, end of year 1,411,667 5,189,167 |
Schedule Of Sharebased Compensation Stock Options [Table Text Block] | 2019: Weighted-average exercise price: Options outstanding at end of year CDN$ 0.19 ($0.14 ) Options granted during the year CDN$ 0.19 ($0.14 ) Options expired during the year CDN$ 0.37 ($0.28 ) Options cancelled during the year CDN$ 0.22 ($0.17 ) 2018: Weighted-average exercise price: Options outstanding at end of year CDN$ 0.22 ($0.18 ) Options granted during the year CDN$ 0.20 ($0.16 ) Options cancelled during the year CDN$ 0.30 ($0.23 ) |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Remaining Contractual Term, Outstanding and Exercisable [Table Text Block] | 2019 2018 (Years) (Years) Total outstanding options 4.3 3.5 Total exercisable options 3.1 2.0 |
Schedule of Incentive Warrants, Valuation Assumptions [Table Text Block] | Risk free rate 2.00% Expected dividends 0% Expected volatility 149% Expected life 3 years Market price of the Company's common stock on date of grant $ 0.16 Exercise price $ 0.16 |
Employee Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Risk free rate 2.00% Expected dividends 0% Expected volatility 133% Expected life 5 years Market price of the Company's common stock on date of grant $ 0.14 Exercise price $ 0.14 Risk free rate 2.77% Expected dividends 0% Expected volatility 190% Expected life 7 years Market price of the Company's common stock on date of grant of options $ 0.15 Exercise price $ 0.16 |
Director and Non Employee Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Risk free rate 2.00% Expected dividends 0% Expected volatility 133% Expected life 5 years Market price of the Company's common stock on date of grant of options $ 0.14 Exercise price $ 0.14 |
WARRANTS (Tables)
WARRANTS (Tables) - Warrant [Member] | 12 Months Ended |
Nov. 30, 2019 | |
Class of Warrant or Right [Line Items] | |
Schedule of Stockholders' Equity Note, Warrants or Rights, Activity [Table Text Block] | Number of Weighted- Warrants Exercise Granted Price $ Outstanding at November 30, 2017 20,941,160 0.18 Granted 5,100,000 0.25 Expired — — Outstanding at November 30, 2018 26,041,160 0.19 Granted 22,223,058 0.25 Expired (2,476,999 ) (0.16 ) Outstanding at November 30, 2019 45,787,219 0.22 Exercisable at November 30, 2019 45,037,219 0.22 Exercisable at November 30, 2018 26,041,160 0.19 |
Schedule of Stockholders' Equity Note, Warrants or Rights, Weighted Average Remaining Contractual Term, Outstanding [Table Text Block] | 2019 2018 (Years) (Years) Total outstanding warrants 3.55 3.88 Total exercisable warrants 3.50 3.88 |
Warrants Granted, September 16, 2019 [Member] | |
Class of Warrant or Right [Line Items] | |
Schedule of Share-based Payment Award, Warrants, Valuation Assumptions [Table Text Block] | Risk free rate 1.69% Expected dividends 0% Expected volatility 150% Expected life 4.35 years Market price of the Company's common stock on date of grant $ 0.16 Exercise price $ 0.25 |
Warrants Granted, July 22, 2019 [Member] | |
Class of Warrant or Right [Line Items] | |
Schedule of Share-based Payment Award, Warrants, Valuation Assumptions [Table Text Block] | Risk free rate 1.8% Expected dividends 0% Expected volatility 154% Expected life 4.5 years Market price of the Company's common stock on date of grant $ 0.16 Exercise price $ 0.25 |
Warrants Granted, April 22, 2019 and May 20, 2019 [Member] | |
Class of Warrant or Right [Line Items] | |
Schedule of Share-based Payment Award, Warrants, Valuation Assumptions [Table Text Block] | Risk free rate 2.21—2.39% Expected dividends 0% Expected volatility 155—156% Expected life 4.5 years Market price of the Company's common stock on date of grant $ 0.15 Exercise price $ 0.25 |
Warrants Granted, October 22, 2018 [Member] | |
Class of Warrant or Right [Line Items] | |
Schedule of Share-based Payment Award, Warrants, Valuation Assumptions [Table Text Block] | Risk free rate 3.05% Expected dividends 0% Expected volatility 159% Expected life 5 years Market price of the Company's common stock on date of grant $ 0.14 Exercise price $ 0.25 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment [Table Text Block] | November 30, 2019 November 30, 2018 Accumulated Accumulated Cost Depreciation Cost Depreciation $ $ $ $ Computer equipment and software 116,348 58,804 77,382 46,837 Furniture and fixtures 20,998 19,513 20,998 18,763 Leasehold improvements 26,471 26,471 26,471 26,471 Molds 507,347 245,088 291,599 210,961 Total 671,164 349,876 416,450 303,032 Net carrying amount $ 321,288 $ 113,418 Depreciation expense $ 46,844 $ 19,392 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Credit Carryforwards [Table Text Block] | Year Ended November 30, 2019 2018 United States $ (4,199,856 ) $ (2,113,412 ) Foreign (209,929 ) (40,062 ) Total $ (4,409,785 ) $ (2,153,474 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended November 30, 2019 2018 Income at US statutory rate 21.00% 21.00% State taxes, net of Federal benefit 9.24% 0.00% Permanent differences (5.44%) (1.95%) Tax law change 0.00% (107.78%) Foreign rate differential 0.34% 0.13% Valuation allowance (24.34%) 88.60% Other (0.79%) 0.00% Total 0.00% 0.00% |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | November 30, 2019 2018 Depreciation $ (88,502 ) $ — Stock compensation 96,033 — Inventory reserve 15,611 — Net operating loss ("NOL") carryforwards 5,845,058 4,794,900 Total deferred tax assets 5,868,199 4,794,900 Valuation allowance (5,868,199 ) (4,794,900 ) Net deferred tax assets (liabilities) $ — $ — |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease commitments by fiscal year [Table Text Block] | Location 2020 2021 2022 2023 2024 2025 and beyond Wilmington, MA $ 24,987 $ 115,371 $ 117,972 $ 120,979 $ 123,986 $ 300,660 Fort Wayne, IN 30,357 30,585 7,646 — — — South Africa* 13,098 2,217 — — — — Total $ 68,442 $ 148,173 $ 125,618 $ 120,979 $ 123,986 $ 300,660 (*USD based on November 30, 2019 exchange rate) |
SEGMENT AND GEOGRAPHICAL DISC_2
SEGMENT AND GEOGRAPHICAL DISCLOSURES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Revenue US Canada South Africa Total 2019 $ 536,471 $ — $ 387,948 $ 924,419 2018 126,846 123,381 — 250,227 Long-lived assets US Canada South Africa Total 2019 $ 614,027 $ 3,184 $ — $ 617,211 2018 421,304 4,112 — 425,416 Total Assets US Canada South Africa Total 2019 $ 2,307,257 $ 50,415 $ 1,208,747 $ 3,566,419 2018 2,629,315 27,770 — 2,657,085 |
CONVERTIBLE NOTES PAYABLE AND_2
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Debt Instrument [Line Items] | |
Schedule Of Secured Convertible Debentures Allocation Of Purchase [Table Text Block] | Subordinate Secured Debentures Face Value (CAD $1,399,000) $ 1,041,835 Proceeds 1,041,835 Compound embedded derivative (see below for additional information) (285,612 ) Carrying value $ 756,223 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Fiscal Year 2020 $ 3,355,265 2021 3,100,500 Total $ 6,455,765 |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | Year Ended November 30, 2019 Year Ended November 30, 2018 Subordinate Secured Debentures $ 426,019 $ 100,464 October 2018 Notes — 88,079 $ 426,019 $ 188,543 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Convertible Secured Debentures November 30, 2018 Derivative financial instruments $ 426,016 Conversion price $ 0.135 Volatility 91% Remaining term (years) 0.52 Risk free rate 2.52% |
Derivative Liabilities Measured At Fair Value Reconciliation [Table Text Block] | Derivative Liability Balance, November 30, 2017 $ 539,860 Liability associated with October 2018 Notes 619,364 Change in fair value of derivative liabilities (188,543 ) Foreign currency translation gain (13,380 ) Balance, November 30, 2018 957,301 Correction related to Oct 2018 Notes (531,285 ) Adjustment 3 Settlement (426,019 ) Balance, November 30, 2019 $ — |
Accounting Standards Update 2017-11 [Member] | |
Debt Instrument [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | October 22, 2018 Issuance: Original Revised Adjustment Convertible notes payable $ 131,547 $ 750,911 $ 619,364 Derivative liability 619,364 — (619,364 ) APIC (Warrants) 524,089 524,089 — Proceeds $ 1,275,000 $ 1,275,000 $ — Year Ended November 30, 2018 October 22, 2018 Issuance: Original Revised Adjustment Convertible notes payable $ 167,077 $ 793,946 $ 626,869 Derivative liability 531,285 — (531,285 ) Accrued interest payable 16,767 16,767 — Total Liabilities impact $ 95,584 Interest expense - accretion $ 35,530 $ 43,035 $ 7,505 Interest expense 16,767 16,767 — Change in fair value of derivative liability (88,079 ) — 88,079 Statement of Operations impact $ 95,584 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory [Table Text Block] | November 30, November 30, Raw materials $ 449,767 $ — Work in process 32,098 — Finished goods 477,883 129,121 Total $ 959,748 $ 129,121 |
PATENT RIGHTS (Tables)
PATENT RIGHTS (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year 2020 $ 7,332 2021 7,332 2022 7,332 2023 7,332 2024 7,332 |
NATURE OF OPERATIONS AND GOIN_2
NATURE OF OPERATIONS AND GOING CONCERN (Narrative) (Details) - USD ($) | 1 Months Ended | ||
Mar. 31, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Nature Of Operations And Going Concern [Line Items] | |||
Cumulative loss | $ (37,662,123) | $ (33,252,338) | |
Subsequent Event [Member] | |||
Nature Of Operations And Going Concern [Line Items] | |||
Amount raised from warrant exercises | $ 3,200,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | Mar. 01, 2018USD ($) | Mar. 01, 2018ZAR (R) | Nov. 30, 2019USD ($)shares | Nov. 30, 2018USD ($)shares | Nov. 30, 2017USD ($)shares |
Finite-Lived Intangible Assets [Line Items] | |||||
Shipping and handling costs | $ 21,487 | $ 13,936 | |||
Advertising Expense | 366,786 | 262,248 | |||
Research and development expense | $ 158,105 | 164,162 | |||
Prepaid Advertising | $ 750,000 | ||||
Number of stock options | shares | 2,911,667 | 6,376,667 | 4,866,667 | ||
Warrants outstanding | shares | 45,787,219 | 26,041,160 | 20,941,160 | ||
Derivative Liability, Current | $ 0 | $ 957,301 | $ 539,860 | ||
Rephit (Pty) Ltd [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Purchases common shares | $ 300 | R 4,000 | |||
Patents [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortized estimated useful life patent | 15 years |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) | 12 Months Ended | |||
Nov. 30, 2019USD ($)Consultantsshares | Nov. 30, 2018USD ($)shares | Dec. 19, 2017shares | Dec. 18, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted to purchase common stock | shares | 120,000 | 2,150,000 | ||
Aggregate intrinsic value of options outstanding and exercisable | $ 88,500 | $ 19,600 | ||
Employee Benefits and Share-based Compensation | 218,154 | $ 128,799 | ||
Expense related to non-vested stock-based compensation | $ 30,715 | |||
Non-vested awards not yet recognized expected term | 1 year 4 months 24 days | |||
2017 Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reserved for issuance | shares | 9,379,857 | |||
Revised Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reserved for issuance | shares | 18,993,274 | |||
Employees and directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted to purchase common stock | shares | 120,000 | 1,900,000 | ||
Employee Benefits and Share-based Compensation | $ 31,530 | $ 98,343 | ||
Non-employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted to purchase common stock | shares | 250,000 | |||
Employee Benefits and Share-based Compensation | $ 30,456 | |||
Incentive Warrants [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of consultant | Consultants | 2 | |||
Employee Benefits and Share-based Compensation | $ 186,624 | |||
Tax benefit from stock based compensation reserved in valuation allowance | 50,986 | |||
Expense related to non-vested stock-based compensation | $ 7,465 | |||
Incentive Warrants [Member] | Consultant One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of warrant issued to each consultant | shares | 750,000 | |||
Incentive Warrants [Member] | Consultant Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of warrant issued to each consultant | shares | 750,000 |
WARRANTS (Narrative) (Details)
WARRANTS (Narrative) (Details) - USD ($) | 1 Months Ended | ||||||
Sep. 16, 2019 | Jul. 22, 2019 | May 20, 2019 | Oct. 22, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Stockholders Equity [Line Items] | |||||||
Debt instrument conversion price | $ 0.135 | ||||||
Exercise price of warrants granted | $ 0.25 | ||||||
Warrants outstanding | 45,787,219 | 26,041,160 | 20,941,160 | ||||
Securities purchase agreement [Member] | Accredited investors [Member] | Convertible Notes Payable [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Number of units issued | 2,080.265 | 1,275 | |||||
Debt Instrument, Face Amount | $ 2,080,265 | $ 1,275,000 | |||||
Units issued, price per unit | $ 1,000 | $ 1,000 | |||||
Secured convertible promissory note issued per unit | $ 1,000 | $ 1,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | |||||
Debt instrument conversion price | $ 0.15 | $ 0.15 | |||||
Number of warrants granted per unit | 4,000 | 4,000 | |||||
Exercise price of warrants granted | $ 0.25 | $ 0.25 | |||||
Number of securities called by each warrant | 1 | 1 | |||||
Number of warrant issued | 8,321,058 | 5,100,000 | |||||
Class of warrant or right grant date fair value | $ 888,444 | $ 524,089 | |||||
Securities purchase agreement [Member] | Two Investors [Member] | Convertible Notes Payable [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Number of units issued | 818 | ||||||
Debt Instrument, Face Amount | $ 818,000 | ||||||
Units issued, price per unit | $ 1,000 | ||||||
Secured convertible promissory note issued per unit | $ 1,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||
Debt instrument conversion price | $ 0.15 | ||||||
Number of warrants granted per unit | 4,000 | ||||||
Exercise price of warrants granted | $ 0.25 | ||||||
Number of securities called by each warrant | 1 | ||||||
Number of warrant issued | 3,272,000 | ||||||
Class of warrant or right grant date fair value | $ 363,846 | ||||||
Securities purchase agreement [Member] | Several Investors [Member] | Convertible Notes Payable [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Number of units issued | 2,282.5 | ||||||
Debt Instrument, Face Amount | $ 2,282,500 | ||||||
Units issued, price per unit | $ 1,000 | ||||||
Secured convertible promissory note issued per unit | $ 1,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||
Debt instrument conversion price | $ 0.15 | ||||||
Number of warrants granted per unit | 4,000 | ||||||
Exercise price of warrants granted | $ 0.25 | ||||||
Number of securities called by each warrant | 1 | ||||||
Number of warrant issued | 9,130,000 | ||||||
Class of warrant or right grant date fair value | $ 1,038,081 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Related Party Transaction [Line Items] | ||
Number of options expired | 1,270,000 | 0 |
Due to Related Parties | $ 137,380 | |
Dean Thrasher [Member] | ||
Related Party Transaction [Line Items] | ||
Stock issued during period, shares, issued for services | 360,000 | 180,000 |
Related Party Transaction, Amounts of Transaction | $ 51,876 | $ 27,600 |
Allocated Share-based Compensation Expense | 39,046 | |
Number of options expired | 1,150,000 | |
Andre Buys [Member] | ||
Related Party Transaction [Line Items] | ||
Payments for Royalties | $ 8,333 | |
Allocated Share-based Compensation Expense | 16,909 | $ 10,568 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,500,000 | |
Bryan Ganz [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | 23,600 | $ 12,939 |
Related Party Transaction, Monthly Amounts of Transaction | $ 2,090 | |
Directors And Officers [Member] | ||
Related Party Transaction [Line Items] | ||
Number of units issued in April 22, 2019, May 20, 2019 and July 22, 2019 financing | 316 | |
Total proceeds from units issued in April 22, 2019, May 20, 2019 and July 22, 2019 financing | $ 100,000 | |
Proceeds from units issued | 315,588 | |
Officers [Member] | ||
Related Party Transaction [Line Items] | ||
Units issued for services rendered | $ 95,000 | |
Directors And Management [Member] | ||
Related Party Transaction [Line Items] | ||
Stock issued during period, shares, issued for services | 1,744,937 | 2,296,100 |
Value of common stock issued for services | $ 272,339 | $ 330,908 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Property, Plant and Equipment [Abstract] | ||
Deposit for equipment | $ 196,921 | $ 205,664 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) $ in Millions | Nov. 30, 2019USD ($) |
Income Tax [Line Items] | |
Federal non operating loss carry forward | $ 21.3 |
State non operating loss carry forwards | 6.3 |
USA [Member] | |
Income Tax [Line Items] | |
Deferred tax assets, operating loss carryforwards, do not expire | 5 |
Canada [Member] | |
Income Tax [Line Items] | |
Deferred tax assets, operating loss carryforwards, expire | 3.4 |
South African [Member] | |
Income Tax [Line Items] | |
Deferred tax assets, operating loss carryforwards, do not expire | $ 0.2 |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) | Apr. 13, 2018USD ($)trigger_price$ / sharesshares | Jan. 31, 2019shares | Nov. 30, 2018$ / sharesshares | Aug. 31, 2018shares | Nov. 30, 2019USD ($) | Nov. 30, 2019USD ($)shares | Nov. 30, 2018USD ($) | Nov. 30, 2019consultant$ / sharesshares | Nov. 30, 2019consultant$ / sharesshares | Nov. 30, 2018$ / sharesshares | Nov. 30, 2017shares |
Consulting Agreements [Line Items] | |||||||||||
Number of stock options | shares | 6,376,667 | 2,911,667 | 2,911,667 | 6,376,667 | 4,866,667 | ||||||
Stock option price per share | (per share) | $ 0.22 | $ 0.19 | $ 0.14 | $ 0.18 | |||||||
Rental expeses for services | $ 60,316 | $ 36,659 | |||||||||
Consulting Agreements [Member] | |||||||||||
Consulting Agreements [Line Items] | |||||||||||
Number of consultants | consultant | 2 | 2 | |||||||||
Consulting fees per month | 7,500 | ||||||||||
Amount of increase in consulting fees per month | $ 10,000 | ||||||||||
Issuance of warrant for consultant | shares | 750,000 | ||||||||||
Percentage of incentive warrants vested upon issuance | 50.00% | ||||||||||
Purchase and Sale Agreement (Agreement) with Andre Buys [Member] | |||||||||||
Consulting Agreements [Line Items] | |||||||||||
Starting salary per month | $ 10,000 | ||||||||||
Number of stock options | shares | 1,500,000 | ||||||||||
Stock option price per share | $ / shares | $ 0.16 | ||||||||||
First installment of consideration payment | $ 100,000 | ||||||||||
Second installment of consideration payment in cash | 500,000 | ||||||||||
Deferred compensation arrangement with individual share award granted amount | $ 750,000 | ||||||||||
Terms of stock option grant date | 7 years | ||||||||||
Term of employment in order for options to be vested | 3 years | ||||||||||
Percentage of intellectual property of portfolio | 2.00% | ||||||||||
Amount of royalty exceeds | $ 25,000 | ||||||||||
Minimum payment of royalty | $ 25,000 | ||||||||||
Purchase and Sale Agreement (Agreement) with Andre Buys [Member] | Second Anniversary | |||||||||||
Consulting Agreements [Line Items] | |||||||||||
Percentage of royalty | 10.00% | ||||||||||
Purchase and Sale Agreement (Agreement) with Andre Buys [Member] | Sixth Anniversary | |||||||||||
Consulting Agreements [Line Items] | |||||||||||
Percentage of royalty | 4.00% | ||||||||||
Purchase and Sale Agreement (Agreement) with Andre Buys [Member] | Eighth Anniversary | |||||||||||
Consulting Agreements [Line Items] | |||||||||||
Percentage of royalty | 3.00% | ||||||||||
Consulting Agreement With Ganz [Member] | |||||||||||
Consulting Agreements [Line Items] | |||||||||||
Value of common stock issued for services | $ 200,000 | ||||||||||
Number of common shares issued | shares | 500,000 | 500,000 | 833,333 | ||||||||
Monthly base salary of consultant after consulting agreement ends | $ 20,000 | ||||||||||
Consulting Agreement With Consultant Wager [Member] | |||||||||||
Consulting Agreements [Line Items] | |||||||||||
Number of common stock share issued for services | shares | 250,000 | 416,666 | |||||||||
Monthly base salary of consultant after consulting agreement ends | $ 15,000 | ||||||||||
Number of common stock issued per month | shares | 83,333 | ||||||||||
Batch of 500,000 options 1 [Member] | Purchase and Sale Agreement (Agreement) with Andre Buys [Member] | |||||||||||
Consulting Agreements [Line Items] | |||||||||||
Stock option, trigger price | trigger_price | 0.30 | ||||||||||
Batch of 500,000 options 2 [Member] | Purchase and Sale Agreement (Agreement) with Andre Buys [Member] | |||||||||||
Consulting Agreements [Line Items] | |||||||||||
Stock option, trigger price | trigger_price | 0.50 | ||||||||||
Batch of 500,000 options 3 [Member] | Purchase and Sale Agreement (Agreement) with Andre Buys [Member] | |||||||||||
Consulting Agreements [Line Items] | |||||||||||
Stock option, trigger price | trigger_price | 1 |
EXCLUSIVE SUPPLY AND PURCHASE_2
EXCLUSIVE SUPPLY AND PURCHASE AGREEMENTS (Narrative) (Details) | 12 Months Ended |
Nov. 30, 2019 | |
Roboro [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Term of agreement | 2 years |
BIP | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Term of agreement | 4 years |
Additional term of agreement | 1 year |
Safariland, LLC | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Term of agreement | 4 years |
Additional term of agreement | 1 year |
CONVERTIBLE NOTES PAYABLE AND_3
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Sep. 16, 2019USD ($)$ / sharesshares | Jul. 22, 2019USD ($)$ / sharesshares | May 20, 2019USD ($)$ / sharesshares | Oct. 22, 2018USD ($)$ / sharesshares | Nov. 30, 2019CAD ($)$ / sharesshares | Nov. 30, 2019USD ($) | Nov. 30, 2018CAD ($)shares | Nov. 30, 2018USD ($) | Nov. 30, 2019USD ($)$ / sharesshares | Nov. 30, 2018USD ($)shares | Nov. 30, 2017USD ($)shares | |
Debt Instrument [Line Items] | |||||||||||
Convertible notes payable | $ 2,758,578 | $ 978,361 | |||||||||
Conversion price | $ / shares | $ 0.135 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.25 | ||||||||||
Convertible notes payable | $ 5,068,265 | $ 1,275,000 | |||||||||
Accretion Expense | 1,120,872 | 154,428 | |||||||||
Derivative liabilities | $ 0 | 957,301 | $ 539,860 | ||||||||
Derivative financial instruments | 426,016 | ||||||||||
Long-term convertible notes payable | $ 1,874,972 | $ 167,077 | |||||||||
Foreign exchange translation adjustment for the year | (4,115) | (1,673) | |||||||||
Warrants outstanding | shares | 45,787,219 | 26,041,160 | 45,787,219 | 26,041,160 | 20,941,160 | ||||||
Change in fair value of derivative liabilities | 426,019 | 188,543 | |||||||||
October 22, 2018 Issuance [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Accretion Expense | 413,702 | ||||||||||
Interest Expense, Debt | 124,356 | 16,767 | |||||||||
Derivative Liability | $ 531,285 | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 50.54% | 50.54% | |||||||||
Accounting Standards Update 2017-11 [Member] | October 22, 2018 Issuance [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
APIC (Warrants) | 524,089 | ||||||||||
Convertible notes payable | 750,911 | ||||||||||
Accretion Expense | 43,035 | ||||||||||
Derivative Liability | 0 | ||||||||||
Proceeds from Convertible Debt | 1,275,000 | ||||||||||
Change in fair value of derivative liabilities | 0 | ||||||||||
Accounting Standards Update 2017-11 [Member] | Previously Reported [Member] | October 22, 2018 Issuance [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
APIC (Warrants) | 524,089 | ||||||||||
Convertible notes payable | 131,547 | ||||||||||
Accretion Expense | 35,530 | ||||||||||
Derivative Liability | 531,285 | ||||||||||
Proceeds from Convertible Debt | 1,275,000 | ||||||||||
Change in fair value of derivative liabilities | (88,079) | ||||||||||
Accounting Standards Update 2017-11 [Member] | Restatement Adjustment [Member] | October 22, 2018 Issuance [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
APIC (Warrants) | 0 | ||||||||||
Convertible notes payable | 619,364 | ||||||||||
Accretion Expense | 7,505 | ||||||||||
Statement of Operations impact | 95,584 | ||||||||||
Derivative Liability | (531,285) | ||||||||||
Proceeds from Convertible Debt | 0 | ||||||||||
Change in fair value of derivative liabilities | 88,079 | ||||||||||
Series B Convertible Secured Debentures December 7, 2016 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 1,399,000 | $ 1,041,835 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||
Conversion price | (per share) | $ 0.31 | $ 0.24 | |||||||||
Interest Expense, Debt | 67,007 | 131,085 | |||||||||
Proceeds from Convertible Debt | 1,041,835 | ||||||||||
Repayments of Convertible Debt | $ 1,399,000 | 1,035,930 | |||||||||
Subordinate Secured Debentures | $ 1,301,359 | $ 756,223 | 978,361 | ||||||||
Amortization of debt discounts (premiums) | 98,924 | 73,201 | 151,795 | $ 118,898 | |||||||
Change in fair value of derivative liabilities | 1,363,000 | 1,015,026 | |||||||||
Series B Convertible Secured Debentures December 7, 2016 [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Conversion price | $ / shares | $ 0.135 | ||||||||||
Series B Secured Convertible Debentures Issued Pursuant To Indenture In Payment Of Accrued Interest Member | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Convertible Debt | $ 36,000 | $ 26,640 | |||||||||
Convertible Notes Payable [Member] | Securities purchase agreement [Member] | Accredited investors [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number Of Issuance Or Sale Of Units | $ 2,080.265 | $ 1,275 | |||||||||
Debt Instrument, Face Amount | $ 2,080,265 | $ 1,275,000 | |||||||||
Shares Issued, Price Per Share | $ / shares | $ 1,000 | $ 1,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | |||||||||
Conversion price | $ / shares | $ 0.15 | $ 0.15 | |||||||||
Number of warrant issued | shares | 8,321,058 | 5,100,000 | |||||||||
Number of warrants outstanding | $ 4,000 | $ 4,000 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.25 | $ 0.25 | |||||||||
Warrants And Rights Exercisable | shares | 8,321,060 | 5,100,000 | |||||||||
Class of warrant or right grant date fair value | $ 888,444 | $ 524,089 | |||||||||
Accretion Expense | 457,570 | ||||||||||
Interest Expense, Debt | 123,726 | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 72.35% | 72.35% | |||||||||
Convertible Debt | $ 1,191,821 | ||||||||||
Number of securities called by each warrant | shares | 1 | 1 | |||||||||
Convertible Notes Payable [Member] | Securities purchase agreement [Member] | Several Investors [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number Of Issuance Or Sale Of Units | $ 2,282.5 | ||||||||||
Debt Instrument, Face Amount | $ 2,282,500 | ||||||||||
Shares Issued, Price Per Share | $ / shares | $ 1,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||||
Conversion price | $ / shares | $ 0.15 | ||||||||||
Number of warrant issued | shares | 9,130,000 | ||||||||||
Number of warrants outstanding | $ 4,000 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.25 | ||||||||||
Warrants And Rights Exercisable | shares | 9,130,000 | ||||||||||
Class of warrant or right grant date fair value | $ 1,038,081 | ||||||||||
Accretion Expense | 138,456 | ||||||||||
Interest Expense, Debt | 81,920 | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 45.79% | 45.79% | |||||||||
Convertible Debt | $ 1,244,419 | ||||||||||
Number of securities called by each warrant | shares | 1 | ||||||||||
Convertible Notes Payable [Member] | Securities purchase agreement [Member] | Two Investors [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number Of Issuance Or Sale Of Units | $ 818 | ||||||||||
Debt Instrument, Face Amount | $ 818,000 | ||||||||||
Shares Issued, Price Per Share | $ / shares | $ 1,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||||
Conversion price | $ / shares | $ 0.15 | ||||||||||
Number of warrant issued | shares | 3,272,000 | ||||||||||
Number of warrants outstanding | $ 4,000 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.25 | ||||||||||
Warrants And Rights Exercisable | shares | 3,272,000 | ||||||||||
Class of warrant or right grant date fair value | $ 363,846 | ||||||||||
Accretion Expense | 37,943 | ||||||||||
Interest Expense, Debt | $ 16,808 | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 47.40% | 47.40% | |||||||||
Convertible Debt | $ 454,154 | ||||||||||
Number of securities called by each warrant | shares | 1 | ||||||||||
Convertible Secured Debentures [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Derivative Liability | $ 1,363,000 | ||||||||||
Derivative financial instruments | 426,016 | ||||||||||
Convertible Secured Debentures Indexed Shares [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Derivative Liability | $ 8,044,853 |
INVENTORY (Narrative) (Details)
INVENTORY (Narrative) (Details) - USD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory reserves | $ 66,020 | $ 21,235 |
PATENT RIGHTS (Narrative) (Deta
PATENT RIGHTS (Narrative) (Details) - USD ($) | Apr. 13, 2018 | Nov. 30, 2019 | Nov. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Purchase of patents | $ 110,000 | ||
Amortization of patent rights | $ 7,332 | $ 3,666 | |
Purchase and Sale Agreement (Agreement) with Andre Buys [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amount for consideration portfolio | $ 100,000 | ||
Legal costs to transfer patent rights | 10,000 | ||
Purchase of patents | 110,000 | ||
Agreed to pay amount for discretion | $ 500,000 | ||
Term For second payment | 2 years | ||
Purchase and Sale Agreement (Agreement) with Andre Buys [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of patents | 20 years | ||
Agreed to pay amount for discretion | $ 750,000 | ||
Purchase and Sale Agreement (Agreement) with Andre Buys [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of patents | 15 years | ||
Agreed to pay amount for discretion | $ 500,000 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Narrative) (Details) - USD ($) | Jan. 08, 2020 | Nov. 30, 2019 | Nov. 30, 2018 |
Prepaid Expense And Other Receivable [Line Items] | |||
VAT receivables | $ 147,457 | ||
Security deposit | 92,000 | ||
Prepaid legal fees associated with future registrations | 55,862 | ||
Prepayment of prepaid expenses and other receivables | $ 750,000 | ||
Non-cash expense for shares issued in 2018 for services | $ 200,000 | 250,000 | |
FinTekk and Rick Ware Racing, LLC ("RWR") | |||
Prepaid Expense And Other Receivable [Line Items] | |||
Prepayment of prepaid expenses and other receivables | $ 750,000 | ||
Number of common stock share issued for services | 3,000,000 | 6,666,666 | |
Shares Issued, Price Per Share | $ 0.15 | ||
Amount of common stock issued | $ 1,000,000 | ||
Amount Of Sponsorship agreement | $ 250,000 | $ 750,000 | |
Common Stock Shares Issued For Deemed Earned | 2,966,666 | ||
FinTekk and Rick Ware Racing, LLC ("RWR") | Subsequent Event [Member] | |||
Prepaid Expense And Other Receivable [Line Items] | |||
Remaining Common Stock Shares Returned | 3,700,000 | ||
FinTekk and Rick Ware Racing, LLC ("RWR") | Common Shares [Member] | |||
Prepaid Expense And Other Receivable [Line Items] | |||
Amount of common stock issued | $ 550,000 | ||
Redemption of common stock issued for service | 3,700,000 | ||
Prepaid expenses | |||
Non-cash expense for shares issued in 2018 for services | $ 200,000 |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Investments All Other Investments [Line Items] | ||
Foreign exchange translation adjustment for the year | $ (4,115) | $ (1,673) |
Foreign currency translation gain (loss) | $ (12,031) | 46,093 |
Percentage of fluctuation in the US exchange rate | 10.00% | |
Convertible debentures issued in Canadian currency [Member] | ||
Investments All Other Investments [Line Items] | ||
Foreign currency translation gain (loss) | $ 17,297 | $ 46,093 |
Revenue from Contract with Customer Benchmark [Member] | ||
Investments All Other Investments [Line Items] | ||
Concentration Risk, Percentage | 41.00% | |
Revenue from Contract with Customer Benchmark [Member] | Two Customer [Member] | ||
Investments All Other Investments [Line Items] | ||
Concentration Risk, Percentage | 37.00% | 65.00% |
Accounts Receivable [Member] | Two Customer [Member] | ||
Investments All Other Investments [Line Items] | ||
Concentration Risk, Percentage | 77.00% | |
Accounts Receivable [Member] | Three Customer [Member] | ||
Investments All Other Investments [Line Items] | ||
Concentration Risk, Percentage | 88.00% | |
Vendor Concentration [Member] | ||
Investments All Other Investments [Line Items] | ||
Concentration Risk, Percentage | 100.00% |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) | May 05, 2020USD ($)$ / sharesshares | May 05, 2020ZAR (R)shares | May 04, 2020USD ($) | Apr. 10, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Dec. 18, 2019USD ($) | May 06, 2020shares | Nov. 30, 2019$ / sharesshares | Nov. 30, 2018$ / sharesshares |
Subsequent Event [Line Items] | |||||||||
Preferred Stock, Shares Outstanding | shares | |||||||||
Warrants granted, weighted average exercise price | $ / shares | $ 0.25 | $ 0.25 | |||||||
Number of stock options granted | shares | 120,000 | 2,150,000 | |||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Value Of Warrants exercised | $ 3,200,000 | ||||||||
Number of warrants exercised | shares | 19,979,107 | ||||||||
Warrants granted, weighted average exercise price | $ / shares | $ 0.16 | ||||||||
Subsequent Event [Member] | Series A Convertible Preferred Stock [Member] | Notes [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Outstanding notes exchanged representing principal and accrued interest | $ 6,950,000 | ||||||||
Number of shares issued for exchange of notes | shares | 1,391 | ||||||||
Number of warrants issued to holders reflecting 4,000 warrants for each $1,000 (US dollars) of unpaid interest accrued on Notes | shares | 1,498,417 | ||||||||
Issue price for each share of preferred stock | $ / shares | $ 5,000 | ||||||||
Percentage of dividend rate on issue price per annum | 10.00% | ||||||||
Preferred Stock convertible in to common stock, conversion price | $ / shares | $ 0.15 | ||||||||
Number of consecutive trading days | 20 days | ||||||||
Common Stock Market Price Traded More Than Twenty Consecutive Trading Days | $ / shares | $ 0.50 | ||||||||
Preferred Stock, Shares Outstanding | shares | 423 | ||||||||
Threshold limit of indebtedness to obtain consent from preferred stock holders | $ 250,000 | ||||||||
Subsequent Event [Member] | Roboro [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Percentage of interest acquired | 100.00% | ||||||||
Value of outstanding common shares acquired | $ 500,000 | ||||||||
Outstanding debt plus accrued interest | $ 97,000 | R 1,788,000 | |||||||
Sale of stock | shares | 1,388,889 | 1,388,889 | |||||||
Stock price per share | $ / shares | $ 0.36 | ||||||||
Total consideration | $ 500,000 | ||||||||
Subsequent Event [Member] | Paycheck Protection Program [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Loan received | $ 190,000 | ||||||||
Subsequent Event [Member] | Purchase and Sale Agreement with Andre Buys [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Second installment of consideration payment in cash | $ 500,000 | ||||||||
Deferred compensation arrangement with individual share award granted amount | 750,000 | ||||||||
Value of restricted common stock issued | 630,000 | ||||||||
Additional cash payment | $ 80,000 | ||||||||
Subsequent Event [Member] | Employees, management and directors [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of stock options granted | shares | 3,917,500 | ||||||||
Subsequent Event [Member] | Management [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of restricted stock granted | shares | 625,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of depreciation rates, plant and equipment (Details) | 12 Months Ended |
Nov. 30, 2019 | |
Computer equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | 30% declining balance method |
Furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | 30% declining balance method |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | Straight line over period of lease |
Moulds [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | 20% straight line |
Property, Plant and Equipment, Useful Life | 5 years |
REVENUE, DEFERRED REVENUE AND_3
REVENUE, DEFERRED REVENUE AND ACCOUNTS RECEIVABLE - Schedule of Deferred Revenue (Details) | 12 Months Ended |
Nov. 30, 2019USD ($) | |
Revenue, Deferred Revenue And Accounts Receivable [Abstract] | |
Balance | $ 0 |
Net additions to deferred revenue | 10,842 |
Balance | $ 10,842 |
REVENUE, DEFERRED REVENUE AND_4
REVENUE, DEFERRED REVENUE AND ACCOUNTS RECEIVABLE - Schedule of Accounts Receivable (Details) - USD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Revenue, Deferred Revenue And Accounts Receivable [Abstract] | ||
Accounts receivable | $ 438,255 | $ 18,914 |
REVENUE, DEFERRED REVENUE AND_5
REVENUE, DEFERRED REVENUE AND ACCOUNTS RECEIVABLE - Schedule of Revenue Disaggregation of product type (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 924,419 | $ 250,227 |
Byrna HD [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 850,404 | 0 |
Law Enforcement [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 74,015 | 250,227 |
Wholesale (dealer/distributors and large end-users) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 602,838 | 250,227 |
E-Commerce [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 321,581 | $ 0 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Disclosure of accounts payable and accrued liabilities (Details) - USD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 600,878 | $ 126,366 |
Deferred revenue | 10,842 | 0 |
Other accrued liabilities | 38,999 | 254,176 |
Accounts payable and accrued liabilities | $ 650,719 | $ 380,542 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of employee Options valuation assumption (Details) - Employee Options [Member] - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free rate | 2.00% | 2.77% |
Expected dividends | 0.00% | 0.00% |
Expected volatility | 133.00% | 190.00% |
Expected life | 5 years | 7 years |
Market price of the Company's common stock on date of grant | $ 0.14 | $ 0.15 |
Exercise price | $ 0.14 | $ 0.16 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Director and non-employee options valuation assumption (Details) - Director and Non-Employee Options [Member] | 12 Months Ended |
Nov. 30, 2019USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free rate | 2.00% |
Expected dividends | 0.00% |
Expected volatility | 133.00% |
Expected life | 5 years |
Market price of the Company's common stock on date of grant | $ | $ 0.14 |
Exercise price | $ / shares | $ 0.14 |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of options activity (Details) - shares | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning of year | 6,376,667 | 4,866,667 |
Granted | 120,000 | 2,150,000 |
Expired | (1,270,000) | 0 |
Cancelled | (2,315,000) | (640,000) |
Outstanding, end of year | 2,911,667 | 6,376,667 |
Exercisable, end of year | 1,411,667 | 5,189,167 |
STOCK BASED COMPENSATION - Sche
STOCK BASED COMPENSATION - Schedule of option activity with Weighted-average exercise price (Details) | 12 Months Ended | |||
Nov. 30, 2019$ / shares | Nov. 30, 2019$ / shares | Nov. 30, 2018$ / shares | Nov. 30, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding at end of year, weighted average exercise price (per share) | (per share) | $ 0.19 | $ 0.14 | $ 0.22 | $ 0.18 |
Stock options granted during the year, weighted average exercise price (per share) | (per share) | 0.19 | 0.14 | 0.20 | 0.16 |
Stock options expired during the year, weighted average exercise price (per share) | (per share) | 0.37 | 0.28 | ||
Stock options cancelled during the year, weighted average exercise price (per share) | (per share) | $ 0.22 | $ 0.17 | $ 0.30 | $ 0.23 |
STOCK BASED COMPENSATION - Sc_2
STOCK BASED COMPENSATION - Schedule of stock options weighted-average remaining contractual life (Details) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Total outstanding options, weighted average remaining contractual life | 4 years 3 months 18 days | 3 years 6 months |
Total exercisable options, weighted average remaining contractual life | 3 years 1 month 6 days | 2 years |
STOCK BASED COMPENSATION - Sc_3
STOCK BASED COMPENSATION - Schedule of incentive Warrants (Details) - Incentive Warrants [Member] | 12 Months Ended |
Nov. 30, 2019USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free rate | 2.00% |
Expected dividends | 0.00% |
Expected volatility | 149.00% |
Expected life | 3 years |
Market price of the Company's common stock on date of grant | $ | $ 0.16 |
Exercise price | $ / shares | $ 0.16 |
WARRANTS - Schedule of fair val
WARRANTS - Schedule of fair value assumptions (Details) - USD ($) | 1 Months Ended | ||||
Sep. 16, 2019 | Jul. 22, 2019 | May 20, 2019 | Oct. 22, 2018 | Nov. 30, 2019 | |
Class of Warrant or Right [Line Items] | |||||
Exercise price | $ 0.25 | ||||
Warrant [Member] | Warrants Granted, September 16, 2019 [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Risk free rate | 1.69% | ||||
Expected dividends | 0.00% | ||||
Expected volatility | 150.00% | ||||
Expected life | 4 years 4 months 6 days | ||||
Market price of the Company's common stock on date of grant | $ 0.16 | ||||
Exercise price | $ 0.25 | ||||
Warrant [Member] | Warrants Granted, July 22, 2019 [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Risk free rate | 1.80% | ||||
Expected dividends | 0.00% | ||||
Expected volatility | 154.00% | ||||
Expected life | 4 years 6 months | ||||
Market price of the Company's common stock on date of grant | $ 0.16 | ||||
Exercise price | $ 0.25 | ||||
Warrant [Member] | Warrants Granted, April 22, 2019 and May 20, 2019 [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Expected dividends | 0.00% | ||||
Expected life | 4 years 6 months | ||||
Market price of the Company's common stock on date of grant | $ 0.15 | ||||
Exercise price | $ 0.25 | ||||
Warrant [Member] | Warrants Granted, April 22, 2019 and May 20, 2019 [Member] | Minimum [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Risk free rate | 2.21% | ||||
Expected volatility | 155.00% | ||||
Warrant [Member] | Warrants Granted, April 22, 2019 and May 20, 2019 [Member] | Maximum [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Risk free rate | 2.39% | ||||
Expected volatility | 156.00% | ||||
Warrant [Member] | Warrants Granted, October 22, 2018 [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Risk free rate | 3.05% | ||||
Expected dividends | 0.00% | ||||
Expected volatility | 159.00% | ||||
Expected life | 5 years | ||||
Market price of the Company's common stock on date of grant | $ 0.14 | ||||
Exercise price | $ 0.25 |
WARRANTS - Schedule of warrants
WARRANTS - Schedule of warrants activity (Details) - $ / shares | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Warrants [Abstract] | ||
Warrants outstanding, beginning of period | 26,041,160 | 20,941,160 |
Warrants granted | 22,223,058 | 5,100,000 |
Warrants expired | (2,476,999) | 0 |
Warrants outstanding, end of period | 45,787,219 | 26,041,160 |
Warrants exercisable, end of period | 45,037,219 | 26,041,160 |
Warrants outstanding, beginning of period, weighted average exercise price | $ 0.19 | $ 0.18 |
Warrants granted, weighted average exercise price | 0.25 | 0.25 |
Warrants expired, weighted average exercise price | (0.16) | 0 |
Warrants outstanding, ending of period, weighted average exercise price | 0.22 | 0.19 |
Warrants exercisable, end of period, weighted average exercise price | $ 0.22 | $ 0.19 |
WARRANTS - Schedule of weighted
WARRANTS - Schedule of weighted-average remaining contractual life of warrants (Details) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Warrants [Abstract] | ||
Class of Warrant or Right, Weighted Average Remaining Contractual Term | 3 years 6 months 18 days | 3 years 10 months 17 days |
Class of Warrant or Right Exercisable, Weighted Average Remaining Contractual Term | 3 years 6 months | 3 years 10 months 17 days |
PROPERTY AND EQUIPMENT - Disclo
PROPERTY AND EQUIPMENT - Disclosure of Property and equipment (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 671,164 | $ 416,450 |
Accumulated Depreciation | 349,876 | 303,032 |
Property and equipment, net | 321,288 | 113,418 |
Depreciation expense | 46,844 | 19,392 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 116,348 | 77,382 |
Accumulated Depreciation | 58,804 | 46,837 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 20,998 | 20,998 |
Accumulated Depreciation | 19,513 | 18,763 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 26,471 | 26,471 |
Accumulated Depreciation | 26,471 | 26,471 |
Moulds [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 507,347 | 291,599 |
Accumulated Depreciation | $ 245,088 | $ 210,961 |
INCOME TAXES - Disclosure of ta
INCOME TAXES - Disclosure of tax credit carryforwards (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Loss before Income Taxes | $ (4,409,785) | $ (2,153,474) |
United States [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Loss before Income Taxes | (4,199,856) | (2,113,412) |
Foreign [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Loss before Income Taxes | $ (209,929) | $ (40,062) |
INCOME TAXES - Disclosure of re
INCOME TAXES - Disclosure of reconciliation of income taxes at statutory income tax rates to income tax expense (Details) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income at US statutory rate | 21.00% | 21.00% |
State taxes, net of Federal benefit | 9.24% | 0.00% |
Permanent differences | (5.44%) | (1.95%) |
Tax law change | 0.00% | (107.78%) |
Foreign rate differential | 0.34% | 0.13% |
Valuation allowance | (24.34%) | 88.60% |
Other | (0.79%) | 0.00% |
Effective Income Tax Rate Reconciliation, Percent, Total | 0.00% | 0.00% |
INCOME TAXES - Disclosure of de
INCOME TAXES - Disclosure of deferred tax asset components (Details) - USD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Depreciation | $ (88,502) | $ 0 |
Stock compensation | 96,033 | 0 |
Inventory reserve | 15,611 | 0 |
Net operating loss ("NOL") carryforwards | 5,845,058 | 4,794,900 |
Total deferred tax assets | 5,868,199 | 4,794,900 |
Valuation allowance | (5,868,199) | (4,794,900) |
Net deferred tax assets (liabilities) | $ 0 | $ 0 |
COMMITMENTS - Schedule of lease
COMMITMENTS - Schedule of lease commitments by fiscal year (Details) | Nov. 30, 2019USD ($) |
Product Liability Contingency [Line Items] | |
2020 | $ 68,442 |
2021 | 148,173 |
2022 | 125,618 |
2023 | 120,979 |
2024 | 123,986 |
2025 and beyond | 300,660 |
Wilmington, MA | |
Product Liability Contingency [Line Items] | |
2020 | 24,987 |
2021 | 115,371 |
2022 | 117,972 |
2023 | 120,979 |
2024 | 123,986 |
2025 and beyond | 300,660 |
Fort Wayne, IN | |
Product Liability Contingency [Line Items] | |
2020 | 30,357 |
2021 | 30,585 |
2022 | 7,646 |
2023 | 0 |
2024 | 0 |
2025 and beyond | 0 |
South Africa | |
Product Liability Contingency [Line Items] | |
2020 | 13,098 |
2021 | 2,217 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 and beyond | $ 0 |
SEGMENT AND GEOGRAPHICAL DISC_3
SEGMENT AND GEOGRAPHICAL DISCLOSURES - Disclosure of Segment Reporting Information, by segment sales and assets (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Revenue | $ 924,419 | $ 250,227 |
Total Assets | 3,566,419 | 2,657,085 |
Operating Segments [Member] | ||
Revenue | 924,419 | 250,227 |
Long-lived assets | 617,211 | 425,416 |
Total Assets | 3,566,419 | 2,657,085 |
Operating Segments [Member] | SDI USA [Member] | ||
Revenue | 536,471 | 126,846 |
Long-lived assets | 614,027 | 421,304 |
Total Assets | 2,307,257 | 2,629,315 |
Operating Segments [Member] | SDI Canada [Member] | ||
Revenue | 0 | 123,381 |
Long-lived assets | 3,184 | 4,112 |
Total Assets | 50,415 | 27,770 |
Operating Segments [Member] | SDI South Africa [Member] | ||
Revenue | 387,948 | 0 |
Long-lived assets | 0 | 0 |
Total Assets | $ 1,208,747 | $ 0 |
CONVERTIBLE NOTES PAYABLE AND_4
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES - Disclosure of initial accounting and impact related to 2018 (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Debt Instrument [Line Items] | ||
Convertible notes payable | $ 5,068,265 | $ 1,275,000 |
Interest expense - accretion | 1,120,872 | 154,428 |
Interest expense | 414,364 | 148,887 |
Change in fair value of derivative liability | 426,019 | 188,543 |
October 22, 2018 Issuance [Member] | ||
Debt Instrument [Line Items] | ||
Derivative liability | 531,285 | |
Interest expense - accretion | $ 413,702 | |
Accounting Standards Update 2017-11 [Member] | October 22, 2018 Issuance [Member] | ||
Debt Instrument [Line Items] | ||
Convertible notes payable | 750,911 | |
Derivative liability | 0 | |
APIC (Warrants) | 524,089 | |
Proceeds | 1,275,000 | |
Convertible notes payable | 793,946 | |
Derivative liability | 0 | |
Accrued interest payable | 16,767 | |
Interest expense - accretion | 43,035 | |
Interest expense | 16,767 | |
Change in fair value of derivative liability | 0 | |
Accounting Standards Update 2017-11 [Member] | Previously Reported [Member] | October 22, 2018 Issuance [Member] | ||
Debt Instrument [Line Items] | ||
Convertible notes payable | 131,547 | |
Derivative liability | 619,364 | |
APIC (Warrants) | 524,089 | |
Proceeds | 1,275,000 | |
Convertible notes payable | 167,077 | |
Derivative liability | 531,285 | |
Accrued interest payable | 16,767 | |
Interest expense - accretion | 35,530 | |
Interest expense | 16,767 | |
Change in fair value of derivative liability | (88,079) | |
Accounting Standards Update 2017-11 [Member] | Restatement Adjustment [Member] | October 22, 2018 Issuance [Member] | ||
Debt Instrument [Line Items] | ||
Convertible notes payable | 619,364 | |
Derivative liability | (619,364) | |
APIC (Warrants) | 0 | |
Proceeds | 0 | |
Convertible notes payable | 626,869 | |
Derivative liability | (531,285) | |
Accrued interest payable | 0 | |
Total Liabilities impact | 95,584 | |
Interest expense - accretion | 7,505 | |
Interest expense | 0 | |
Change in fair value of derivative liability | 88,079 | |
Statement of Operations impact | $ 95,584 |
CONVERTIBLE NOTES PAYABLE AND_5
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES - Disclosure of secured convertible debentures, allocation of the Purchase (Details) - Series B Convertible Secured Debentures December 7, 2016 [Member] | 12 Months Ended | ||||
Nov. 30, 2019USD ($) | Nov. 30, 2019CAD ($) | Nov. 30, 2019USD ($) | Nov. 30, 2018CAD ($) | Nov. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Subordinate Secured Debentures | $ 1,399,000 | $ 1,041,835 | |||
Proceeds | $ 1,041,835 | ||||
Compound embedded derivative (see below for additional information) | $ (285,612) | ||||
Carrying value | $ 756,223 | $ 1,301,359 | $ 978,361 |
CONVERTIBLE NOTES PAYABLE AND_6
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES - Disclosure of maturities of debt (Details) | Nov. 30, 2019USD ($) |
Fiscal Year | |
2020 | $ 3,355,265 |
2021 | 3,100,500 |
Total | $ 6,455,765 |
CONVERTIBLE NOTES PAYABLE AND_7
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES - Disclosure of components of embedded derivative (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Debt Instrument [Line Items] | ||
Change in fair value of derivative liabilities | $ 426,019 | $ 188,543 |
Subordinate Secured Debenture [Member] | ||
Debt Instrument [Line Items] | ||
Change in fair value of derivative liabilities | 426,019 | 100,464 |
Secured Convertible Debentures October 22, 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Change in fair value of derivative liabilities | $ 0 | $ 88,079 |
CONVERTIBLE NOTES PAYABLE AND_8
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES - Disclosure of Convertible Debentures, fair Value Assumptions, method used (Details) | 12 Months Ended |
Nov. 30, 2019USD ($)Percent$ / shares | |
Debt Instrument [Line Items] | |
Derivative financial instruments | $ | $ 426,016 |
Conversion price | $ / shares | $ 0.135 |
Remaining term (years) | 6 months 7 days |
Volatility [Member] | |
Debt Instrument [Line Items] | |
Measurement Input | 91 |
Risk free rate [Member] | |
Debt Instrument [Line Items] | |
Measurement Input | 2.52 |
CONVERTIBLE NOTES PAYABLE AND_9
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITIES - Disclosure of derivative liabilities measured at fair value (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Debt Disclosure [Abstract] | ||
Balance | $ 957,301 | $ 539,860 |
Liability associated with October 2018 Notes | 619,364 | |
Change in fair value of derivative liability | (426,019) | (188,543) |
Foreign currency translation gain | (13,380) | |
Correction related to Oct 2018 Notes | (531,285) | |
Adjustment | 3 | |
Settlement | (426,019) | |
Balance | $ 0 | $ 957,301 |
INVENTORY - Schedule of invento
INVENTORY - Schedule of inventory (Details) - USD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 449,767 | $ 0 |
Work in process | 32,098 | 0 |
Finished goods | 477,883 | 129,121 |
Inventory, Net | $ 959,748 | $ 129,121 |
PATENT RIGHTS - Schedule for am
PATENT RIGHTS - Schedule for amortization of the Company's patents (Details) | Nov. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 7,332 |
2021 | 7,332 |
2022 | 7,332 |
2023 | 7,332 |
2024 | $ 7,332 |