| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION | NOTE 2
– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Unaudited Interim Financial Statements The accompanying unaudited
condensed consolidated financial statements include the accounts of the Company and its subsidiary, prepared in accordance with accounting
principles generally accepted in the GAAP and with the instructions to Form 10-Q. In the opinion of management, the financial statements
presented herein have not been audited by an independent registered public accounting firm but include all material adjustments (consisting
of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the financial condition, results
of operations and cash flows for the for three-months ended February 28, 2021. However, these results are not necessarily indicative of
results for any other interim period or for the year ended November 30, 2020. The preparation of financial statements in conformity with
GAAP requires the Company to make certain estimates and assumptions for the reporting periods covered by the financial statements. These
estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Actual amounts could differ from
these estimates. Certain information and footnote
disclosures normally included in financial statements in accordance with generally accepted accounting principles have been omitted pursuant
to the rules of the U.S. Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction
with the financial statements and notes thereto contained in the Company’s Annual Report published on the SEC’s website, for
the year ended November 30, 2020. Use of Estimates The preparation of
unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United
States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, certain
revenues and expenses, and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual
results could differ from those estimates. As applicable to these financial statements, the most significant estimates and
assumptions relate to the going concern assumptions and convertible note. Derivative Liabilities and Fair Value of Financial
Instruments Fair value accounting requires
bifurcation of embedded derivative instruments such as conversion features in convertible debt or equity instruments and measurement of
their fair value for accounting purposes. In assessing the convertible debt instruments, management determines if the convertible debt
host instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement. If the
instrument is not considered conventional convertible debt under Accounting Standards Codification (“ASC”) 470, the Company
will continue its evaluation process of these instruments as derivative financial instruments under ASC 815, “Derivatives and Hedging”. Once determined, derivative
liabilities are adjusted to reflect fair value at each reporting period end, with any increase or decrease in the fair value being recorded
in results of operations as an adjustment to fair value of derivatives. Fair value of certain of the
Company’s financial instruments including cash, accounts receivable, account payable, accrued expenses, notes payables, and other
accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with
ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in
accordance with generally accepted accounting principles and expands disclosures about fair value investments. Fair value, as defined in
ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal
(or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk
of non performance, which includes, among other things, the Company’s credit risk. Valuation techniques are generally
classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one
or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability,
and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable
inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as
follows: Level 1: Quoted prices (unadjusted) in active
markets that are accessible at the measurement date for identical assets or liabilities. Level 2: Quoted prices for similar assets or liabilities
in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted
prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market
data for substantially the full term of the assets or liabilities; and Level 3: Unobservable inputs for the asset or
liability that are supported by little or no market activity, and that are significant to the fair values. |
