Exeo Entertainment (EXEO) 10-K 14 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Nov. 30, 2018	Mar. 13, 2019
Document And Entity Information
Entity Registrant Name	Exeo Entertainment, Inc.
Entity Central Index Key	0001528760
Document Type	10-K
Document Period End Date	Nov. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--11-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Public Float	$ 9,252,105
Entity Common Stock, Shares Outstanding		9,440,923
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

Balance Sheets

Balance Sheets - USD ($)	Nov. 30, 2018	Nov. 30, 2017
Current Assets
Cash and cash equivalents	$ 104,485	$ 139,525
Inventory	39,456	64,137
Prepaid expenses	138,850	125,923
Accounts Receivable	186	0
Total current assets	282,977	329,585
Property and equipment, net	28,576	37,294
TOTAL ASSETS	311,553	366,879
Current liabilities
Accounts payable and accrued expenses	44,111	40,610
Accrued interest payable - related party	23,436	18,787
Payroll liabilities	161,839	138,604
Due to related parties	75,000	75,000
Royalty payable	1,129,455	858,142
Notes payable	9,314	9,314
Total current liabilities	1,443,155	1,140,457
Long-term liabilities
Note payable	10,851	20,484
Total long-term liabilities	10,851	20,484
Total Liabilities	1,454,006	1,160,941
Series A redeemable convertible preferred stock; $0.0001 par value, 1,000,000 shares authorized; 19,500 shares issued and outstanding; 0 shares unissued as of November 30, 2018 and November 30, 2017 (liquidation preference of $95,213 and $80,487, respectively). Stated at redemption value.	163,361	148,736
Series B redeemable convertible preferred stock; $0.0001 par value, 1,000,000 shares authorized; 244,190 and 246,690 shares issued and outstanding; 2,500 shares unissued as of November 30, 2018 and November 30, 2017 (liquidation preference of $799,853 and $651,839, respectively). Stated at redemption value, net of Treasury Stock (2,500 shares)	1,725,191	1,576,930
Stockholders' Equity (Deficit)
Convertible Preferred Stock Series A - 15%, $0.0001 par value, 1,000,000 shares authorized, 19,500 and 19,500 shares issued, respectively	0	0
Convertible Preferred Stock Series B - 12%, $0.0001 par value, 1,000,000 shares authorized, 246,690 and 246,690 shares issued, respectively	0	0
Common stock - $0.0001 par value, 100,000,000 shares authorized; 26,697,109 and 26,216,646 shares issued and outstanding, respectively	2,670	2,622
Additional paid-in capital	5,135,475	4,795,523
Treasury stock, Series B Preferred Stock - 2,500 shares	(12,500)	(12,500)
Stock payable	426,000	68,750
Deficit accumulated	(8,582,650)	(7,374,123)
Total stockholders' equity (deficit)	(3,031,005)	(2,519,728)
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 311,553	$ 366,879

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Nov. 30, 2018	Nov. 30, 2017
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	26,697,109	26,216,646
Common stock, outstanding	26,697,109	26,216,646
Convertible Preferred Stock Series A
Convertible Preferred Stock, par value	$ 0.0001	$ 0.0001
Convertible Preferred Stock, authorized	1,000,000	1,000,000
Convertible Preferred Stock, issued	19,500	19,500
Convertible Preferred Stock, outstanding	19,500	19,500
Convertible Preferred Stock, liquidation preference	$ 95,213	$ 80,487
Convertible Preferred Stock Series B
Convertible Preferred Stock, par value	$ 0.0001	$ 0.0001
Convertible Preferred Stock, authorized	1,000,000	1,000,000
Convertible Preferred Stock, issued	244,190	246,690
Convertible Preferred Stock, outstanding	244,190	246,690
Convertible Preferred Stock, liquidation preference	$ 799,853	$ 651,839

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Income Statement [Abstract]
REVENUES	$ 5,318	$ 12,362
COST OF GOODS SOLD
Cost of direct materials, shipping and labor	(8,186)	(9,611)
GROSS PROFIT	(2,868)	2,751
OPERATING EXPENSES
General and administrative	740,561	1,014,509
Executive compensation	161,617	296,329
Professional fees	160,228	107,252
Depreciation	13,718	27,650
TOTAL OPERATING EXPENSES	1,076,124	1,445,740
INCOME (LOSS) FROM OPERATIONS	(1,078,992)	(1,442,989)
OTHER INCOME (EXPENSE)
Gain from foreign currency transactions	38,759	(26,328)
Loss of service agreement	0	(25,000)
Interest expense - related party	(4,648)	(4,648)
Interest expense	(760)	(2,535)
TOTAL OTHER INCOME (EXPENSES)	33,351	(58,511)
NET INCOME (LOSS)	(1,045,641)	(1,501,500)
DIVIDEND OF REDEEMABLE PREFERRED STOCK	(162,886)	(162,640)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (1,208,527)	$ (1,664,140)
NET LOSS PER SHARE: BASIC	$ (0.05)	$ (0.06)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC	26,403,566	25,610,503

Statement of Stockholders' Equi

Statement of Stockholders' Equity (Deficit) - USD ($)	Common Stock	Additional Paid-In Capital	Treasury Stock	Subscriptions Payable	Deficit Accumulated	Total
Beginning Balance, amount at Nov. 30, 2016	$ 2,476	$ 3,711,256	$ 0	$ 112,500	$ (5,174,983)	$ (1,888,751)
Beginning Balance, shares at Nov. 30, 2016	24,764,129
Prior period adjustment					5,000	5,000
Treasury stock			(12,500)			(12,500)
Cash received for sale of common stock, amount	$ 89	$ 685,234		$ 56,250		$ 741,573
Cash received for sale of common stock, shares	880,329
Stock issued for subscriptions payable, amount	$ 322,188
Stock issued for subscriptions payable, shares	32	99,968		(100,000)		0
Stock options granted to officers		$ 125,004				$ 125,004
Shares issued for services, amount	$ 25	174,975				(175,000)
Shares issued for services, shares	250,000
Equity issuance costs		(914)				(914)
Net loss					(1,664,140)	(1,664,140)
Ending Balance, amount at Nov. 30, 2017	$ 2,622	4,795,523	(12,500)	$ 68,750	(7,374,123)	(2,519,728)
Ending Balance, shares at Nov. 30, 2017	26,216,646
Cash received for sale of common stock, amount				697,250		697,250
Stock issued for subscriptions payable, amount	$ 48	339,952		(340,000)		0
Stock issued for subscriptions payable, shares	480,463
Shares issued for services, amount						0
Net loss					(1,208,527)	(1,208,527)
Ending Balance, amount at Nov. 30, 2018	$ 2,670	$ 5,135,475	$ (12,500)	$ 426,000	$ (8,582,650)	$ (3,031,005)
Ending Balance, shares at Nov. 30, 2018	26,697,109

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$ (1,045,641)	$ (1,501,500)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	8,718	27,649
Stock-based compensation to officers	0	125,004
Shares issued for services	0	175,000
Changes in assets and liabilities
Decrease (Increase) in accounts receivable	(186)	0
Decrease (Increase) in pre-paid expenses	(12,927)	(74,054)
Decrease (Increase) in inventory	24,681	162,948
(Decrease) Increase in accounts payable and accrued expenses	3,501	12,566
Decrease in accrued interest - related party	4,649	4,648
Increase in payroll liabilities	23,235	24,852
Increase in royalty payable	271,313	335,110
Net Cash Used in Operating Activities	(722,657)	(707,777)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment	0	0
Cash Flows Used in Investing Activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock, net of issuance costs	697,250	740,657
Proceeds from issuance of preferred stock, net of issuance costs	0	0
Repurchase of Series B preferred stock for treasury	0	(15,000)
Proceeds from related party debt	0	0
Payments on related party debt	0	0
Payments on notes payable - auto loan (principal)	(9,633)	(9,356)
Cash Flows Provided by Financing Activities	687,617	716,301
Net increase in cash and cash equivalents	(35,040)	8,524
Cash and cash equivalents, beginning of the year	139,525	131,001
Cash and cash equivalents, end of the year	104,485	139,525
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	0	0
Dividend of redeemable preferred stock	$ 162,886	$ 162,640

Note A_ SUMMARY OF SIGNIFICANT

Note A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Nov. 30, 2018
Accounting Policies [Abstract]
Note A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	This summary of significant accounting policies of Exeo Entertainment, Inc. (the “Company”) is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, who is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied to the preparation of the financial statements. The Company will adopt accounting policies and procedures based upon the nature of future transactions. Nature of Business The Company was incorporated in Nevada on May 12, 2011. The Company is based in Las Vegas, Nevada, and designs, develops, licenses, manufactures, and distributes its products. The Company plans to market the Zaaz™ Keyboard Extreme Gamer™ Psyko Krypton™ Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. Accounting Basis The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a November 30 fiscal year end. Foreign Currency Transactions Transaction gains and losses, such as those resulting from the settlement of nonfunctional currency receivables or payables, including intercompany balances, are included in foreign currency gain (loss) in our consolidated statements of earnings. Additionally, payable and receivable balances denominated in nonfunctional currencies are marked-to-market at month-end, and the gain or loss is recognized in our statements of operations. Cash and Cash Equivalents The Company considers cash on hand, cash in banks, certificates of deposit, time deposits, and U.S. government and other short-term securities with maturities of three months or less when purchased as cash and cash equivalents. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts payable, notes payable, and accrued expenses. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. Inventory Inventories are stated at cost, not to exceed fair market value. The cost of the Company’s inventory ($39,456 and $64,137 at November 30, 2018 and 2017, respectively) has been determined using the first-in first-out (FIFO) method. The reduction in current costs as compared to LIFO costs of inventory equals zero at November 30, 2018 and 2017, respectively. During the years ended November 30, 2018 and 2017, the company has written down the value of certain of its inventory item, on the grounds that these items constitute slow-moving inventory and thus has a vastly reduced resale value. The resulting loss of $18,694 and $185,853, respectively, was charged to inventory impairment and is contained within the “General and Administrative” line item on the income statement. The remaining valuation ascribed to these assets as of the balance sheet date is $39,456 as of November 30, 2018 and $64,137 as of November 30, 2017. Property and Equipment Property and equipment are stated at the lower of cost or fair value. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, as follows: Description Estimated Life Furniture & Equipment 5 years Vehicles 5 years The estimated useful lives are based on the nature of the assets as well as current operating strategy and legal considerations such as contractual life. Future events, such as property expansions, property developments, new competition, or new regulations, could result in a change in the manner in which the Company uses certain assets requiring a change in the estimated useful lives of such assets. Maintenance and repairs that neither materially add to the value of the asset nor appreciably prolong its life are charged to expense as incurred. Gains or losses on disposition of property and equipment are included in the statements of operations. There were no dispositions during the periods presented. Impairment of Long-Lived Assets The Company evaluates its property and equipment and other long-lived assets for impairment in accordance with related accounting standards. No impairments were recorded at November 30, 2018 and 2017. For assets to be held and used (including projects under development), fixed assets are reviewed for impairment whenever indicators of impairment exist. If an indicator of impairment exists, the Company first groups its assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (the “asset group”). Secondly, the Company estimates the undiscounted future cash flows that are directly associated with and expected to arise from the completion, use and eventual disposition of such asset group. The Company estimates the undiscounted cash flows over the remaining useful life of the primary asset within the asset group. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, then an impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model. Management Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured. For the years ended November 30, 2018 and 2017, the Company recognized $5,318 and $12,362 in revenue, respectively. Basic Income (Loss) Per Share Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Stock-Based Compensation Pursuant to ASC Topic 718, the Company recorded the fair value of the stock options on a monthly basis over the vesting period as stock-based compensation expense. The fair value of the options is calculated using the Black-Scholes method as of the date of grant. In fiscal year 2012, the Company adopted an incentive stock option plan for its employees. In fiscal year 2012 the Company granted stock options to three officers of the Company. These are described in Note G - Stock Options and Warrants. Concentrations of Risk The Company’s bank accounts are deposited in insured institutions. The maximum insured by the FDIC per bank account is not an issue here since the Company’s bank accounts do not bear any interest and the FDIC limits far exceed balances on deposit. The Company’s funds were held in a single account. At November 30, 2017 and 2016, the Company’s bank balance did not exceed the insured amounts. Accounting for Research and Development Costs The Company records an expense in the current period for all research and development costs, which include Hardware Development Costs. The Company does not capitalize such amounts. Pursuant to ASC Topic 730 Research and Development, once we determine that our Extreme Gamer video game console is technologically feasible and a working model is put into use, the Company will capitalize Software Development costs associated with its products. Once this occurs we will determine a useful life of our software and apply a reasonable economic life of five years or less. At this time, our software development costs only relate to the Extreme Gamer and Zaaz keyboard hardware. The software development costs cannot be separated from the associated hardware development. We do not develop stand-alone software for sale to the retail consumers, rather we develop software in order to operate the designed hardware. The software is designed to be encoded within chips inside the hardware. Thus, it has been determined that the current software development costs, which are intertwined within the hardware development, are to be expensed rather than capitalized pursuant to ASC Topic 730. This conclusion is also based upon our decision to devote further research and development costs in the support of our product interface to the video game players: Sony PS3® (and other products such as Nintendo Wii® and Microsoft Xbox 360®). Liquidity and Going Concern The Company has incurred an accumulated deficit of ($8,582,650) since inception. The Company incurred significant initial research and product development costs, including expenditures associated with hardware engineering and the design and development of its hardware components and prototypes associated with the Zaaz™ keyboard, the Extreme Gamer, and the Psyko Krypton™ surround sound gaming headphones. The Company also incurred costs associated with its acquisition of property, plant and equipment for its 10,000 square foot office and warehouse. These factors create substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company generating cash from the sale of its common stock or obtaining debt financing and attaining future profitable operations. Management’s plan includes selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts. Recent Accounting Pronouncements The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

Note B_ PROPERTY AND EQUIPMENT

Note B: PROPERTY AND EQUIPMENT	12 Months Ended
	Nov. 30, 2018
Property, Plant and Equipment [Abstract]
Note B: PROPERTY AND EQUIPMENT	The Company owned property and equipment, recorded at cost, which consisted of the following at November 30, 2018 and 2017: November 30, 2018 November 30, 2017 Furniture and fixtures $ 21,499 $ 21,499 Office & computer equipment 37,982 37,982 Vehicles 101,944 96,943 Subtotal 161,425 156,424 Less: Accumulated depreciation (132,848 ) (119,130 ) Property and equipment, net $ 28,577 $ 37,294 Depreciation expense was $13,718 and $27,650 for the years ended November 30, 2018 and 2017.

Note C_ HARDWARE DEVELOPMENT CO

Note C: HARDWARE DEVELOPMENT COSTS	12 Months Ended
	Nov. 30, 2018
Research and Development [Abstract]
Note C: HARDWARE DEVELOPMENT COSTS	The Company incurred $3,148 and $17,395 for research and development costs for the years ended November 30, 2018 and 2017, respectively. These costs relate to hardware engineering, design and development of the Krankz™ and Krankz Maxx™ Bluetooth Wireless Headset and the Psyko Krypton® surround sound gaming headphones for personal computers.

Note D_ PREPAID EXPENSES

Note D: PREPAID EXPENSES	12 Months Ended
	Nov. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Note D: PREPAID EXPENSES	At November 30, 2018 and 2017, the balance of prepaid expenses on the balance sheet of the Company is $138,850 and $125,923, respectively, which primarily relates to a deposit on inventory not delivered and a prepayment of an annual fee for investor relations.

Note E_ PATENT AND TRADEMARKS

Note E: PATENT AND TRADEMARKS	12 Months Ended
	Nov. 30, 2018
Notes to Financial Statements
Note E: PATENT AND TRADEMARKS	In June 2013, the Company executed a license agreement with Psyko Audio Labs Canada to manufacture and distribute the Carbon and Krypton line of patented headphones. US Patent # 8,000,486 (for the Psyko Krypton™ surround sound gaming headphones). On April 2, 2015, Krank Amplifiers, LLC submitted to the U.S. Patent and Trademark Office a request for a design mark as to “Krank Amplifiers”) for registry on the Principal Register (serial number 86585697). This design mark includes the name Krank Amplifiers. The requested goods and services category is for IC 009, which is the same category in which our Company would request as to our common law trademark “Krankz™.” This amplifier company submitted its mark on the basis of 1B – not yet in commerce, while our Company has used the name Krankz™ in commerce for several years, well before Krank Amplifiers. As of the date of this report, no office action has been taken by the U.S. PTO. We may no longer be able to use the common law trademark “Krankz™” if Krank Amplifiers is granted its trademark and we do not file an opposition to such mark or we do not prevail in the defense of our mark in the U.S. Trademark and Trial Appeal Board (TTAB).

Note F_ COMMON STOCK

Note F: COMMON STOCK	12 Months Ended
	Nov. 30, 2018
Equity [Abstract]
Note F: COMMON STOCK	The Company has 100,000,000 shares at $0.0001 par value common stock authorized and 26,697,109 and 26,216,646 shares issued and outstanding at November 30, 2018 and 2017, respectively. On or about December 9, 2016, the Company issued a total of 50,000 shares of common stock for consulting services with a market value of $25,000. On August 10, 2017, the Company issued a total of 200,000 shares of common stock for prepaid consulting services with a market value of $150,000. During the year ended November 30, 2017, the Company issued a total of 880,329 shares of common stock for cash totaling $741,573. In addition, the Company sold 73,039 shares, which have not yet been issued as November 30, 2017 and are considered stock payable in the amount of $56,250. The price per share is equal to eighty-five percent of the average daily “Ask Price” as quoted on the OTC Electronic Bulletin Board Quotation System for the ten trading days immediately preceding the Closing. In addition, for each share of common stock purchased, each investor shall receive two warrants. Warrant A shall provide the investor the right to purchase one additional share of the Company’s common stock equal to one hundred percent of the average daily “Ask Price” as quoted on the OTC Electronic Bulletin Board Quotation System for the ten trading days immediately preceding the Closing. Warrant B shall provide the investor the right to purchase one additional share of the Company’s common stock equal to one hundred twenty-five percent of the average daily “Ask Price” as quoted on the OTC Electronic Bulletin Board Quotation System for the ten trading days immediately preceding the Closing. During the year ended November 30, 2018, the Company sold 971,556 shares of common stock for cash totaling $697,250. The price per share is equal to eighty-five percent of the average daily “Ask Price” as quoted on the OTC Electronic Bulletin Board Quotation System for the ten trading days immediately preceding the Closing. In addition, for each share of common stock purchased, each investor shall receive two warrants. Warrant A shall provide the investor the right to purchase one additional share of the Company’s common stock equal to one hundred percent of the average daily “Ask Price” as quoted on the OTC Electronic Bulletin Board Quotation System for the ten trading days immediately preceding the Closing. Warrant B shall provide the investor the right to purchase one additional share of the Company’s common stock equal to one hundred twenty-five percent of the average daily “Ask Price” as quoted on the OTC Electronic Bulletin Board Quotation System for the ten trading days immediately preceding the Closing. During the year ended November 30, 2018, the Company issued a total of 480,463 shares of common stock and increased the common stock payable by $357,250. The balance of common stock payable as of November 30, 2018 was $426,000.

Note G_ STOCK OPTIONS AND WARR

Note G: STOCK OPTIONS AND WARRANTS	12 Months Ended
	Nov. 30, 2018
Notes to Financial Statements
Note G: STOCK OPTIONS AND WARRANTS	Stock-Based Compensation to Employees The following is a summary of the status of all of the Company’s stock options issued to the Company’s management as of November 30, 2018 and 2017 and the changes from for the years ended November 30, 2018 and 2017. # of Options Weighted Average Exercise Price Weighted Average Remaining Life Outstanding November 30, 2016 4,000,000 $ 0.25 - Granted - $ - - Exercised - $ - - Cancelled (4,000,000) $ - - Outstanding at November 30, 2017 - $ - - Granted - $ - - Exercised - $ - - Cancelled - $ - - Outstanding at November 30, 2018 - $ - - Exercisable at November 30, 2018 - $ - - Exercisable at November 30, 2017 - $ - - Stock Warrants Issued to Investors Prior to March 3, 2014, the Company issued 48,750 common stock warrants to Series A Preferred Stock purchasers in February and March 2014. All of the warrants expired in February and March 2017. The following is a summary of the status of all of the Company’s stock warrants as of November 30, 2018 and 2017, and the changes for the years ended November 30, 2018 and 2017. # of Options Weighted Average Exercise Price Weighted Average Remaining Life Outstanding November 30, 2016 1,099,224 $ 1.03 1.06 Granted 1,803,700 $ 1.04 1.49 Exercised - $ - - Cancelled (48,750) $ - - Outstanding at November 30, 2017 2,854,174 $ 1.02 1.22 Granted 1,943,112 $ 0.95 2.03 Exercised - $ - - Cancelled - $ - - Outstanding at November 30, 2018 4,797,286 $ 1.01 2.03 Exercisable at November 30, 2018 4,797,286 $ 1.01 2.03

Note H_ PREFERRED STOCK

Note H: PREFERRED STOCK	12 Months Ended
	Nov. 30, 2018
Equity [Abstract]
Note H: PREFERRED STOCK	Issuances of Series A Convertible Preferred Stock Since March 3, 2014, the Company has not offered or sold any Series A Convertible Preferred Stock and has no intent to do so during fiscal years ended November 30, 2018 and 2017. Issuances of Series B Convertible Preferred Stock On January 14, 2014, the Board of Directors of Exeo Entertainment, Inc. (the “Company” adopted a resolution pursuant to the Company’s Certificate of Incorporation, as amended, providing for the designations, preferences and relative, participating, optional and other rights, and the qualifications, limitations and restrictions, of the Series B Convertible Preferred Stock. On January 18, 2014, the Company filed a Certificate of Designations for a Series B Convertible Preferred Stock. The authorized number of Series B Convertible Preferred Stock is 1,000,000 shares, par value 0.0001. The holders of shares of Series B Convertible Preferred Stock shall vote as a separate class on all matters adversely affecting the Series B Stock. The authorization or issuance of additional Common Stock, Series B Convertible Preferred Stock or other securities having liquidation, dividend, voting or other rights junior to or on a parity with, the Series B Convertible Preferred Stock shall not be deemed to adversely affect the Series B Convertible Preferred Stock. In each case the holders shall be entitled to one vote per share. During the conversion period, each Series B Preferred share may be converted to common stock at a fixed conversion price of $1.25 per share or the Variable Conversion Price set forth in the Company’s Certificate of Designation. Series B stock bears interest at 12% per annum, paid annually, with principal paid at maturity twenty-four (24) months after the date of issuance of the stock. See table below in this note. Principal repayment may not apply if the stockholder exercises the right to convert all preferred stock to common stock during the conversion period. During the year ended November 30, 2017, there were no new issuances of Series B Preferred Stock. All shares of redeemable convertible preferred stock have been presented outside of permanent equity in accordance with ASC 48-10, Classification and Measurement of Redeemable Securities The estimated fair value of the Series A and Series B redeemable convertible preferred stock at November 30, 2018 was $163,361 and $1,725,191, respectively. The estimated fair value of the Series A and Series B redeemable convertible preferred stock at November 30, 2017 was $148,736 and $1,576,930, respectively. We incurred equity issuance costs of $0 and $914 for the years ended November 30, 2018 and 2017, respectively. Rather than expense these costs, such items are charged against the Company’s equity. Our employees coordinate various matters associated with the sales of issuer securities to accredited investors. Equity issuance costs include such wages. These costs also include mailing, copying, courier, and other miscellaneous costs associated with the duplication and delivery of our offering circular to investors and paying for the return delivery of signed stock subscription agreements.

Note I_ RELATED PARTY TRANSACT

Note I: RELATED PARTY TRANSACTIONS	12 Months Ended
	Nov. 30, 2018
Related Party Transactions [Abstract]
Note I: RELATED PARTY TRANSACTIONS	Notes Payable to Officer An officer received promissory notes from the Company in exchange for loans from the officer for $85,000. The terms of the notes provide that the Company shall repay the principal of each note in full within nine months of the date of each note. In addition, the Company is obligated to pay interest at a flat rate of 6.00% upon maturity of each note. At the sole discretion of the officer, the notes may be extended for an additional nine month term. The Officer agreed to extend the notes for an additional nine month period. The maturity dates after the extensions are reflected below. In November 2015, the Company made a $10,000 payment to an officer towards the entire principal of one note dated December, 2013. The Company made no payment towards $23,436 accrued interest. Date of Each Note Amount of Each Note Accrued Interest through the Maturity Date Maturity Date of Each Note December 30, 2013 $ 25,000 $ 6,804 September 29, 2016 January 24, 2014 $ 50,000 $11,983 October 23, 2016 Compensation of Officers The Company entered into officer compensation agreements with two officer/directors. The cash amount paid to the two officers in total was $140,250 and $83,900 during the years ended November 30, 2018 and 2017, respectfully.

Note J_ COMMITMENTS AND CONTING

Note J: COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Nov. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Note J: COMMITMENTS AND CONTINGENCIES	Royalty Payable Obligation At January 1, 2015, the Company is obligated to pay minimum monthly royalties of approximately $80,000 (CDN $100,000) per quarter for the remaining term of the Psyko Audio Labs contract. The company carries the risk of currency exchange rate fluctuations as our royalty obligation under the license agreement is stated in Canadian dollars. Royalty payable was $1,129,455 and $858,142 as of November 30, 2018 and 2017. For the years ended November 30, 2018 and 2017, royalty expense and the related gain on foreign currency transactions were $287,485 and $308,783, respectively. Operating Lease Obligation On September 5, 2017, the Company signed a three-year lease for its current office and warehouse, which shall expire on September 30, 2020. The typical monthly rent expense is $8,558, which includes base rent of $7,048 and common area maintenance of $1,510. The Company paid a security deposit of $8,558. Rent expense was $102,696 and $87,176 for the years ended November 30, 2018 and 2017, respectively. Note Payable for Vehicle Financing Obligations On September 27, 2012, the Company acquired a pre-owned company vehicle on credit. The original cost basis was $49,824. On November 13, 2015, the Company traded the vehicle for a new leased vehicle for $6,714 due at signing. The Company is obligated to pay a total of $48,944 for 36 months with a monthly payment of $1,196. On November 13, 2015, the Company acquired a pre-owned company vehicle on credit. The original cost basis was $56,963. The Company paid $5,000 as a down payment. The amount financed by the seller is $48,259, and the Company makes monthly payments of $866. The Company is obligated to pay a total of $51,963 over the course of the loan. This note bears interest at the annual percentage rate of 2.9%, and the term is 60 months. The total finance charge associated with this note is $3,704. Sponsorship Agreement On July 13, 2018, the Company entered into a sponsorship agreement for headphones with Black Knight Sports and Entertainment, LLC (dba Vegas Golden Knights)(“BKSE”) for a period through June 2021. During the first NHL season, the Company was obligated to pay $230,000. For the second NHL season, the Company is obligated to pay $239,200 and for the third NHL season, the Company is obligated to pay $248,768. If the team does into playoffs there could be additional fees due.

Note K_ SUBSEQUENT EVENTS

Note K: SUBSEQUENT EVENTS	12 Months Ended
	Nov. 30, 2018
Subsequent Events [Abstract]
Note K: SUBSEQUENT EVENTS	In December 2018 and January 2019, the Company sold 531,173 shares of common stock and 1,062,346 warrants in exchange for cash of $440,000.

Note A_ SUMMARY OF SIGNIFICA_2

Note A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Nov. 30, 2018
Note Summary Of Significant Accounting Policies
Nature of Business	The Company was incorporated in Nevada on May 12, 2011. The Company is based in Las Vegas, Nevada, and designs, develops, licenses, manufactures, and distributes its products. The Company plans to market the Zaaz™ Keyboard Extreme Gamer™ Psyko Krypton™
Basis of Presentation	The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.
Accounting Basis	The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a November 30 fiscal year end.
Foreign Currency Transactions	Transaction gains and losses, such as those resulting from the settlement of nonfunctional currency receivables or payables, including intercompany balances, are included in foreign currency gain (loss) in our consolidated statements of earnings. Additionally, payable and receivable balances denominated in nonfunctional currencies are marked-to-market at month-end, and the gain or loss is recognized in our statements of operations.
Cash and Cash Equivalents	The Company considers cash on hand, cash in banks, certificates of deposit, time deposits, and U.S. government and other short-term securities with maturities of three months or less when purchased as cash and cash equivalents.
Fair Value of Financial Instruments	The Company’s financial instruments consist of cash and cash equivalents, accounts payable, notes payable, and accrued expenses. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.
Inventory	Inventories are stated at cost, not to exceed fair market value. The cost of the Company’s inventory ($39,456 and $64,137 at November 30, 2018 and 2017, respectively) has been determined using the first-in first-out (FIFO) method. The reduction in current costs as compared to LIFO costs of inventory equals zero at November 30, 2018 and 2017, respectively. During the years ended November 30, 2018 and 2017, the company has written down the value of certain of its inventory item, on the grounds that these items constitute slow-moving inventory and thus has a vastly reduced resale value. The resulting loss of $18,694 and $185,853, respectively, was charged to inventory impairment and is contained within the “General and Administrative” line item on the income statement. The remaining valuation ascribed to these assets as of the balance sheet date is $39,456 as of November 30, 2018 and $64,137 as of November 30, 2017.
Property and Equipment	Property and equipment are stated at the lower of cost or fair value. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, as follows: Description Estimated Life Furniture & Equipment 5 years Vehicles 5 years The estimated useful lives are based on the nature of the assets as well as current operating strategy and legal considerations such as contractual life. Future events, such as property expansions, property developments, new competition, or new regulations, could result in a change in the manner in which the Company uses certain assets requiring a change in the estimated useful lives of such assets. Maintenance and repairs that neither materially add to the value of the asset nor appreciably prolong its life are charged to expense as incurred. Gains or losses on disposition of property and equipment are included in the statements of operations. There were no dispositions during the periods presented.
Impairment of Long-Lived Assets	The Company evaluates its property and equipment and other long-lived assets for impairment in accordance with related accounting standards. No impairments were recorded at November 30, 2018 and 2017. For assets to be held and used (including projects under development), fixed assets are reviewed for impairment whenever indicators of impairment exist. If an indicator of impairment exists, the Company first groups its assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (the “asset group”). Secondly, the Company estimates the undiscounted future cash flows that are directly associated with and expected to arise from the completion, use and eventual disposition of such asset group. The Company estimates the undiscounted cash flows over the remaining useful life of the primary asset within the asset group. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, then an impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model.
Management Estimates	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition	The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured. For the years ended November 30, 2018 and 2017, the Company recognized $5,318 and $12,362 in revenue, respectively.
Basic Income (Loss) Per Share	Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity.
Stock-Based Compensation	Pursuant to ASC Topic 718, the Company recorded the fair value of the stock options on a monthly basis over the vesting period as stock-based compensation expense. The fair value of the options is calculated using the Black-Scholes method as of the date of grant. In fiscal year 2012, the Company adopted an incentive stock option plan for its employees. In fiscal year 2012 the Company granted stock options to three officers of the Company. These are described in Note G - Stock Options and Warrants.
Concentrations of Risk	The Company’s bank accounts are deposited in insured institutions. The maximum insured by the FDIC per bank account is not an issue here since the Company’s bank accounts do not bear any interest and the FDIC limits far exceed balances on deposit. The Company’s funds were held in a single account. At November 30, 2017 and 2016, the Company’s bank balance did not exceed the insured amounts.
Accounting for Research and Development Costs	The Company records an expense in the current period for all research and development costs, which include Hardware Development Costs. The Company does not capitalize such amounts. Pursuant to ASC Topic 730 Research and Development, once we determine that our Extreme Gamer video game console is technologically feasible and a working model is put into use, the Company will capitalize Software Development costs associated with its products. Once this occurs we will determine a useful life of our software and apply a reasonable economic life of five years or less. At this time, our software development costs only relate to the Extreme Gamer and Zaaz keyboard hardware. The software development costs cannot be separated from the associated hardware development. We do not develop stand-alone software for sale to the retail consumers, rather we develop software in order to operate the designed hardware. The software is designed to be encoded within chips inside the hardware. Thus, it has been determined that the current software development costs, which are intertwined within the hardware development, are to be expensed rather than capitalized pursuant to ASC Topic 730. This conclusion is also based upon our decision to devote further research and development costs in the support of our product interface to the video game players: Sony PS3® (and other products such as Nintendo Wii® and Microsoft Xbox 360®).
Liquidity and Going Concern	The Company has incurred an accumulated deficit of ($8,582,650) since inception. The Company incurred significant initial research and product development costs, including expenditures associated with hardware engineering and the design and development of its hardware components and prototypes associated with the Zaaz™ keyboard, the Extreme Gamer, and the Psyko Krypton™ surround sound gaming headphones. The Company also incurred costs associated with its acquisition of property, plant and equipment for its 10,000 square foot office and warehouse. These factors create substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company generating cash from the sale of its common stock or obtaining debt financing and attaining future profitable operations. Management’s plan includes selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts.
Recent Accounting Pronouncements	The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

Note A_ SUMMARY OF SIGNIFICA_3

Note A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Nov. 30, 2018
Note Summary Of Significant Accounting Policies
Schedule of useful life	Description Estimated Life Furniture & Equipment 5 years Vehicles 5 years

Note B_ PROPERTY AND EQUIPMENT

Note B: PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Nov. 30, 2018
Note B Property And Equipment
Schedule of property and equipment	November 30, 2018 November 30, 2017 Furniture and fixtures $ 21,499 $ 21,499 Office & computer equipment 37,982 37,982 Vehicles 101,944 96,943 Subtotal 161,425 156,424 Less: Accumulated depreciation (132,848 ) (119,130 ) Property and equipment, net $ 28,577 $ 37,294

Note G_ STOCK OPTIONS AND WA_2

Note G: STOCK OPTIONS AND WARRANTS (Tables)	12 Months Ended
	Nov. 30, 2018
Note G Stock Options And Warrants
Schedule of stock based compensation to employees	# of Options Weighted Average Exercise Price Weighted Average Remaining Life Outstanding November 30, 2016 4,000,000 $ 0.25 - Granted - $ - - Exercised - $ - - Cancelled (4,000,000) $ - - Outstanding at November 30, 2017 - $ - - Granted - $ - - Exercised - $ - - Cancelled - $ - - Outstanding at November 30, 2018 - $ - - Exercisable at November 30, 2018 - $ - - Exercisable at November 30, 2017 - $ - -
Schedule of stock warrants issued to investors	# of Options Weighted Average Exercise Price Weighted Average Remaining Life Outstanding November 30, 2016 1,099,224 $ 1.03 1.06 Granted 1,803,700 $ 1.04 1.49 Exercised - $ - - Cancelled (48,750) $ - - Outstanding at November 30, 2017 2,854,174 $ 1.02 1.22 Granted 1,943,112 $ 0.95 2.03 Exercised - $ - - Cancelled - $ - - Outstanding at November 30, 2018 4,797,286 $ 1.01 2.03 Exercisable at November 30, 2018 4,797,286 $ 1.01 2.03

Note I_ RELATED PARTY TRANSA_2

Note I: RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Nov. 30, 2018
Note I Related Party Transactions
Notes Payable to Officer	Date of Each Note Amount of Each Note Accrued Interest through the Maturity Date Maturity Date of Each Note December 30, 2013 $ 25,000 $ 6,804 September 29, 2016 January 24, 2014 $ 50,000 $11,983 October 23, 2016

Note A_ SUMMARY OF SIGNIFICA_4

Note A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Nov. 30, 2018
Furniture & Equipment
Useful life	5 years
Vehicles
Useful life	5 years

Note B_ PROPERTY AND EQUIPMEN_2

Note B: PROPERTY AND EQUIPMENT (Details) - USD ($)	Nov. 30, 2018	Nov. 30, 2017
Note BProperty And Equipment Details Abstract
Furniture and fixtures	$ 21,499	$ 21,499
Office & computer equipment	37,982	37,982
Vehicles	101,944	96,943
Subtotal	161,425	156,424
Less: Accumulated depreciation	(132,848)	(119,130)
Property and equipment, net	$ 28,576	$ 37,294

Note G_ STOCK OPTIONS AND WA_3

Note G: STOCK OPTIONS AND WARRANTS (Details) - $ / shares	12 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Stock Options
Outstanding at beginning of period	0	4,000,000
Granted	0	0
Exercised	0	0
Cancelled	0	(4,000,000)
Outstanding at end of period	0	0
Exercisable at end of period	0	0
Weighted-Average Exercise Price
Outstanding at the beginning of period	$ 0	$ 0.25
Granted	0	0
Exercised	0	0
Cancelled	0	0.25
Outstanding at the end of period	0	0
Exercisable at the end of period (in dollars per share)	$ 0	$ 0
Stock Warrants
Outstanding at beginning of period	2,854,174	1,099,224
Granted	1,943,112	1,803,700
Exercised	0	0
Cancelled	0	(48,750)
Outstanding at end of period	4,797,286	2,854,174
Exercisable at end of period	4,797,286	2,854,174
Weighted-Average Exercise Price
Outstanding at the beginning of period	$ 1.02	$ 1.03
Granted	2.03	1.04
Exercised	0	0
Cancelled	0	0
Outstanding at the end of period	2.03	1.02
Exercisable at the end of period (in dollars per share)	$ 2.03	$ 1.02

Note I_ RELATED PARTY TRANSACTI

Note I: RELATED PARTY TRANSACTIONS (Details 1)	12 Months Ended
	Nov. 30, 2018USD ($)
Note 1
Date of each note	December 30, 2013
Amount of each note	$ 25,000
Accrued interest through the maturity date	$ 6,804
Maturity date of each note	September 29, 2016
Note 2
Date of each note	January 24, 2014
Amount of each note	$ 50,000
Accrued interest through the maturity date	$ 11,983
Maturity date of each note	October 23, 2016

Note J_ COMMITMENTS AND CONTI_2

Note J: COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	12 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Note J Commitments And Contingencies
Rent expense	$ 102,696	$ 87,176