Cover
Cover | 12 Months Ended |
Nov. 30, 2022 | |
Cover [Abstract] | |
Document Type | 8-K/A |
Amendment Flag | true |
Amendment Description | First Amended |
Document Period End Date | Nov. 30, 2022 |
Current Fiscal Year End Date | --11-30 |
Entity File Number | 000-55875 |
Entity Registrant Name | RENEWABLE INNOVATIONS, INC. |
Entity Central Index Key | 0001725516 |
Entity Tax Identification Number | 82-3254264 |
Entity Incorporation, State or Country Code | NV |
Entity Address, Address Line One | 588 West 400 South |
Entity Address, Address Line Two | Suite 110 |
Entity Address, City or Town | Lindon |
Entity Address, State or Province | UT |
Entity Address, Postal Zip Code | 84042 |
City Area Code | (801) |
Local Phone Number | 406-6740 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Balance sheets
Balance sheets - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Current assets | ||
Cash | $ 1,260,199 | $ 357,189 |
Accounts receivable and contract assets, net of allowance of $7,500 and $0 | 296,562 | 15,000 |
Inventories | 510,318 | 418,451 |
Prepaid expenses | 584,132 | 18,943 |
Total current assets | 2,651,211 | 809,583 |
Property and equipment, net | 2,563,766 | 2,193,565 |
Deposits | 35,000 | 35,000 |
Right of use asset | 4,239,676 | 3,123,565 |
Total assets | 9,489,653 | 6,161,713 |
Current liabilities | ||
Accounts payable | 627,976 | 468,487 |
Accrued payroll liabilities | 70,973 | 45,361 |
Other current liabilities | 34,000 | |
Deferred revenue – customer deposits | 1,776,159 | 1,007,709 |
Lease liability - current portion | 475,195 | 455,661 |
Total current liabilities | 2,950,303 | 2,011,218 |
Noncurrent liabilities | ||
Lease liability, net of current portion | 3,876,145 | 2,740,852 |
Total liabilities | 6,826,448 | 4,752,070 |
Stockholders’ equity | ||
Common stock, par value $.001, 1,000,000 shares authorized, 500,000 shares issued and outstanding | 500 | 500 |
Preferred A stock, par value $.001, 100,000 shares authorized, 19,148 and 10,355 issued and outstanding | 19 | 10 |
Additional paid-in capital | 4,786,652 | 2,588,161 |
Accumulated deficit | (2,123,966) | (1,179,028) |
Total stockholders’ equity | 2,663,205 | 1,409,643 |
Total liabilities and stockholders’ equity | $ 9,489,653 | $ 6,161,713 |
Balance sheets (Parenthetical)
Balance sheets (Parenthetical) - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 7,500 | $ 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 500,000 | 500,000 |
Common stock, shares outstanding | 500,000 | 500,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 19,148 | 10,355 |
Preferred stock, shares outstanding | 19,148 | 10,355 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Income Statement [Abstract] | ||
Sales | $ 3,468,587 | $ 370,341 |
Cost of sales | 2,578,368 | 339,629 |
Gross profit | 890,219 | 30,712 |
Operating expenses | ||
Sales, general, and administrative | 598,029 | 1,387,939 |
Depreciation | 358,878 | 28,085 |
Total operating expenses | 956,907 | 1,416,024 |
Loss from operations | (66,688) | (1,385,312) |
Other income (expense): | ||
Rental income | 84,900 | 207,538 |
Stock based settlement expense | (983,500) | |
Gain on settlement | 20,450 | |
Total other income (expense) | (878,150) | 207,538 |
Net loss before income taxes | (944,838) | (1,177,774) |
Income tax expense | 100 | 1,254 |
Net loss | $ (944,938) | $ (1,179,028) |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Deficit) - USD ($) | Preferred Stock [Member] Series A Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Nov. 30, 2020 | |||||
Beginning balance, shares at Nov. 30, 2020 | |||||
Issuance of common stock to founders | $ 500 | (500) | |||
Issuance of common stock to founders, shares | 500,000 | ||||
Issuance of preferred stock for cash | $ 9 | 2,260,662 | 2,260,671 | ||
Issuance of preferred stock for cash, shares | 9,043 | ||||
Issuance of preferred stock for contributed assets | $ 1 | 327,999 | 328,000 | ||
Issuance of preferred stock for contributed assets, shares | 1,312 | ||||
Net loss | (1,179,028) | (1,179,028) | |||
Ending balance, value at Nov. 30, 2021 | $ 10 | $ 500 | 2,588,161 | (1,179,028) | 1,409,643 |
Ending balance, shares at Nov. 30, 2021 | 10,355 | 500,000 | |||
Issuance of preferred stock for cash | $ 5 | 1,214,995 | 1,215,000 | ||
Issuance of preferred stock for cash, shares | 4,860 | ||||
Net loss | (944,938) | (944,938) | |||
Issuance of preferred stock as part of settlement agreement | $ 4 | 983,496 | 983,500 | ||
Issuance of preferred stock as part of settlement agreement, shares | 3,933 | ||||
Ending balance, value at Nov. 30, 2022 | $ 19 | $ 500 | $ 4,786,652 | $ (2,123,966) | $ 2,663,205 |
Ending balance, shares at Nov. 30, 2022 | 19,148 | 500,000 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (944,938) | $ (1,179,028) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 446,994 | 85,114 |
Lease amortization | 487,082 | 236,109 |
Bad debt | 7,500 | |
Stock based settlement expense | 983,500 | |
Gain on settlement | (20,450) | |
Changes in operating assets and liabilities | ||
Accounts receivable | (289,062) | (15,000) |
Inventories | (91,867) | (418,451) |
Prepaid expenses and other current assets | (565,189) | (53,943) |
Accounts payable | 159,489 | 468,487 |
Accrued payroll liabilities | 25,612 | 45,361 |
Right of use asset and lease liability, net | (448,366) | (163,161) |
Other current liabilities | (14,000) | 34,000 |
Deferred revenue | 768,450 | 1,007,709 |
Net cash provided by operating activities | 504,755 | 47,197 |
Cash flows from investing activities | ||
Purchase of property and equipment | (816,745) | (1,950,679) |
Net cash used in investing activities | (816,745) | (1,950,679) |
Cash flows from financing activities | ||
Proceeds from issuance of preferred stock | 1,215,000 | 2,260,671 |
Net cash provided by financing activities | 1,215,000 | 2,260,671 |
Net change in cash | 903,010 | 357,189 |
Cash at beginning of year | 357,189 | |
Cash at end of year | 1,260,199 | 357,189 |
Non-cash activities: | ||
Right of use asset acquired in exchange for lease liability, net | 1,633,349 | 3,359,674 |
Issuance of preferred stock for contributed assets | 328,000 | |
Issuance of common stock to founders | 500 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | ||
Cash paid for income taxes |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 – NATURE OF OPERATIONS Renewable Innovations, Inc., a Delaware corporation (“we,” “us,” “our,” “Renewable,” or the “Company”), was incorporated in 2019 and commenced operations in 2021. Renewable’s goal is to accelerate the growth and opportunities within the renewable economy. Our team of industry leaders brings extensive experience and connections across the Renewable, Hydrogen, and Alternative Energy sectors. ● Hydrogen Fuel Cell (HFC) scalable backup and primary power systems ● Mobile and transportable HFC-powered EV Rapid Charge systems for the Electric Vehicle market to help close the Grid Gap (TM) ● Advanced Hydrogen transport and refueling vehicles ● Greenhouse Grids to power communities Our customers include government agencies and leading Fortune 500 companies. Upon formation of the Company, the common shares authorized was 10,000 2,000 1,000,000 250-for-1 forward stock split 500,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates We prepare our financial statements in accordance with accounting principles generally accepted in the United States of America, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These assumptions and estimates could have a material effect on our financial statements. Actual results may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause us to revise these estimates. Significant accounting estimates reflected in the Company’s financial statements include allowance for doubtful accounts, revenue recognition, deferred revenue, useful lives of property, plant and equipment and fair value of lease liabilities and right of use assets, and inventory obsolescence. Cash Cash consists of petty cash and checking accounts. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered cash equivalents. There were no The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts Receivable We manage credit risk associated with our accounts receivables at the customer level. Because the same customers typically generate the revenues that are accounted for under both Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (Topic 606) Accounting Standards Codification Topic 326, Credit Losses (Topic 326 Pursuant to Topic 326 for our accounts receivables, we maintain an allowance for doubtful accounts that reflects our estimate of our expected credit losses. Our allowance is estimated using a loss rate model based on delinquency. The estimated loss rate is based on our historical experience with specific customers, our understanding of our current economic circumstances, reasonable and supportable forecasts, and our own judgment as to the likelihood of ultimate payment based upon available data. We perform credit evaluations of customers and establish credit limits based on reviews of our customers’ current credit information and payment histories. The actual rate of future credit losses, however, may not be similar to past experience. Our estimate of doubtful accounts could change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowance for doubtful accounts. Inventory All inventory consists of raw materials and is valued at the lower of first-in-first-out cost or net realizable value; where net realizable value is considered to be the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. Management periodically evaluates inventory for obsolescence and has determined that no inventory is obsolete as of November 30, 2022 and 2021. Property and Equipment Property and equipment are recorded at cost and depreciated using a straight-line method over the estimated useful lives. Ordinary repair and maintenance costs are included in sales, general, and administrative (“SG&A”) expenses on our statements of operations. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. At the time assets are sold or disposed of, the cost and accumulated depreciation are removed from their respective accounts and the related gains or losses are reflected in the statements of operations in gains from sales of property and equipment, net. The Company’s demonstration units are examples of two of the Company’s products and are taken to trade shows and other venues to showcase the Company’s hydrogen cell technology and products. Construction in progress includes large equipment that will be used in production that have not yet been placed in service because, either installation or training is not complete. We periodically evaluate the appropriateness of remaining depreciable lives assigned to property and equipment. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the remaining term of the lease, whichever is shorter. Generally, we assign the following estimated useful lives to these categories: SCHEDULE OF ESTIMATED USEFUL LIVES Category Estimated Useful Life Machinery and equipment Leasehold improvements Demonstration units 5 10 7 years 5 years Leases We determine whether an arrangement is a lease at the inception of the arrangement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset, and we have the right to control the asset for a period of time in exchange for consideration. Lease arrangements can take several forms. Some arrangements are clearly within the scope of lease accounting, such as real estate contracts that provide an explicit contractual right to use a building for a specified period of time in exchange for consideration. However, the right to use an asset can also be conveyed through arrangements that are not leases in form, such as leases embedded within service and supply contracts. We analyze all arrangements with potential embedded leases to determine if an identified asset is present, if substantive substitution rights are present, and if the arrangement provides the customer control of the asset. Our lease portfolio is substantially comprised of operating leases related to leases of real estate and improvements. From time to time, we may also lease various types of small equipment and vehicles. Operating lease right-of-use (“ROU”) assets represent our right to use an individual asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide the lessor’s implicit rate we use the incremental borrowing rate IBR, in determining the present value of lease payments by utilizing a fully collateralized rate for a fully amortizing loan with the same term as the lease. Lease terms include options to extend the lease when it is reasonably certain those options will be exercised. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. Our leases can include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when such renewal options and/or termination options are reasonably certain of exercise. A ROU asset is subject to the same impairment guidance as assets categorized as plant, property, and equipment. As such, any impairment loss on ROU assets is presented in the same manner as an impairment loss recognized on other long-lived assets. A lease modification is a change to the terms and conditions of a contract that change the scope or consideration of a lease. For example, a change to the terms and conditions to the contract that adds or terminates the right to use one or more underlying assets, or extends or shortens the contractual lease term, is a modification. Depending on facts and circumstances, a lease modification may be accounted as either: (1) the original lease plus the lease of a separate asset(s) or (2) a modified lease. A lease will be remeasured if there are changes to the lease contract that do not give rise to a separate lease. Impairment of long-lived Assets U.S. GGAP requires that long-lived assets held by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. No Revenue Recognition When entering into contracts with our customers, we follow the five steps outlined in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (Topic 606) i. Identify the contract with our customer. ii. Identify the performance obligations in the contract. iii. Determine the transaction price. iv. Allocate the transaction price to the performance obligations. v. Evaluate the satisfaction of the performance obligations. We account for contracts, with our customers, when we have approval and commitment from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance and collectability of consideration is probable. Under Topic 606, we recognize revenue when or as we satisfy a performance obligation by transferring a promised good or service to our customer. A good or service is considered transferred when the customer obtains control. The standard defines control as an entity’s ability to direct the use of, and obtain substantially all of the remaining benefits from, an asset. We recognize revenue once control has passed to the customer. The following indicators are evaluated in determining when control has passed to the customer: i. We have a right to payment for the product or service, ii. The customer has legal title to the product, iii. We have transferred physical possession of the product to the customer, iv. The customer has the risk and rewards of ownership of the product, and v. The customer has accepted the product. The following are the two revenue streams: Revenue Recognition for Sale and/or Install of Power Systems. Most of our contracts to date are to enhance assets controlled by the customer. In these cases, revenue is recognized based on the percentage of completion method, as described below. Payment terms for these contracts generally match the payment terms for assets not controlled by the customer. For contracts where revenue is recognized over time, management uses the percentage of completion input method based on costs. Specifically, percentage of completion is the ratio of total costs to date to estimated expected costs related to the project. Some contracts to date do not qualify for revenue recognition over time because Management has determined that though the assets which the Company creates are customized to the specifications required by the customer, the assets have alternative use because the Company could theoretically find a new purchaser for the product with minimal modifications to the assets. Therefore, the Company has earned revenue for the sale and/or installation of power systems both over time as the performance obligations is satisfied, and at the point in time in which the performance obligation is satisfied. The Company has not had experience with returns to date. Additionally, the customer is generally involved in the customization and selection of specifications for the contracted goods and services. Therefore, management considers returns as they arise. The Company provides explicit warranties on products, in that it provides assurance that the related product will function as the parties intended. These warranties are not separately purchasable. Warranties do not constitute a separate performance obligation. Revenue Recognition for the Design and Testing of Power Systems. Significant Judgments Freight Costs. Costs to Obtain or Fulfill a Contract Disaggregated Revenue SCHEDULE OF DISAGGREGATION OF REVENUE 2022 2021 Sales of services $ 28,673 $ 15,000 Sales of products 3,439,914 355,341 Total sales $ 3,468,587 $ 370,341 Reconciliation of Contract Balances 4,208,364 and $ 1,363,050 , respectively. Additionally, as of November 30, 2022 and 2021, the Company had $ 222,395 and $ 15 ,000, respectively of contract assets included in accounts receivable for revenues earned, but not yet invoiced. The following table provides a summary of the changes included in deferred revenue during the years ended November 30, 2022 and 2021: SUMMARY OF CHANGES IN DEFERRED REVENUE 2022 2021 Beginning balance $ 1,007,709 $ - Additions to contract liabilities 4,208,364 1,363,050 Deductions to contract liabilities (3,439,914 ) (355,341 ) Ending balance $ 1,776,159 $ 1,007,709 Remaining Performance Obligations 5,200,000 in unsatisfied performance obligations yet to be collected, which are expected to be fully satisfied within 1-2 years . Cost of Revenue The expenses that are included in costs of revenue include all raw material and in-house manufacturing costs for the products we manufacture. Advertising The Company expenses marketing and advertising costs as incurred. During the year ended November 30, 2022 and 2021, the Company spent $ 71,724 167,020 Settlement During the year ended November 30, 2022, the Company issued preferred stock and recognized a settlement expense of $ 983,500 to one of the Company founders as part of a settlement agreement with a third-party. In connection with the legal settlement, the Company also recognized a gain of $ 20,450 related to a previous sublease arrangement. Concentration of Credit and Business Risk The Company maintains its cash accounts at a commercial bank located in United States. The FDIC insures $ 250,000 1,010,000 115,000 For the year ended November 30, 2022, two vendors accounted for 29 15 For the years ended November 30, 2022 and 2021, two customers accounted for 99.3 96 Two customers represented 100 100 Stock-Based Compensation The Company accounts for stock grants that are issued to non-employees based on the estimated fair value of goods or services provided to the Company. Income Taxes We account for our income taxes in accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. Income tax expense is based on reported earnings before income taxes. Deferred income taxes reflect the impact of temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes and are measured by applying enacted tax rates in effect in years in which the differences are expected to reverse. We also follow the guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Our income is subject to taxation in the United States. Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. The Company establishes reserves for income tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves for tax contingencies are established when we believe positions do not meet the more-likely-than-not recognition threshold. We adjust uncertain tax liabilities in light of changing facts and circumstances, such as the outcome of a tax audit or lapse of a statute of limitations. The provision for income taxes includes the impact of uncertain tax liabilities and changes in liabilities that are considered appropriate. Currently, 2019, 2020, and 2021 tax years are open and subject to examination by the taxing authorities. However, the Company is not currently under audit nor has the Company been contacted by any of the taxing authorities. Recent Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02 – Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective December 1, 2022, for the Company, with early implementation allowed. The Company elected to adopt ASU 2016-02 effective December 1, 2020. The adoption of ASU 2016-02 required the Company to record lease assets and liabilities on the balance sheet and also disclose key information about the Company’s leasing arrangement. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022, and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 effective December 31, 2021, applied on the full retrospective basis. The adoption of ASU 2020-06 did not have an impact on the Company’s financial statements. The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine effects, if any on its results of operations, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Nov. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3 – GOING CONCERN The accompanying financial statements have been prepared assuming that we will continue as a going concern. As of November 30, 2022, the Company had an accumulated deficit of $ 2,123,966 , and a net loss of $ 944,938 for the year then ended. These facts and others raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the date of this filing. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management’s plan of operations includes, but is not limited to, the following: ● The creation of additional sales and profits across its product lines; ● The continuation of improving cash flow by maintaining moderate cost reductions; ● Requiring 50% deposit on all purchase orders; ● Continuing positive cash flows from operating activities; ● Potential issuances of additional common stock to existing shareholders and through PIPE financing. |
ACCOUNTS RECEIVABLE AND CONTRAC
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS | 12 Months Ended |
Nov. 30, 2022 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS | NOTE 4 – ACCOUNTS RECEIVABLE AND CONTRACT ASSETS Accounts receivable consisted of the following as of November 30: SCHEDULE OF ACCOUNTS RECEIVABLES 2022 2021 Trade Accounts Receivable $ 81,667 $ - Contract assets 222,395 15,000 Less Allowance for doubtful accounts (7,500 ) - Total Accounts Receivable (net) $ 296,562 $ 15,000 Accounts receivable as of November 30, 2022 and 2021 are made up of trade receivables due from customers in the ordinary course of business, and contract assets. |
INVENTORY
INVENTORY | 12 Months Ended |
Nov. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 5 – INVENTORY Inventory consisted of the following as of November 30: SCHEDULE OF INVENTORY 2022 2021 Raw materials $ 510,318 $ 315,462 Work in process - 102,989 Total inventory $ 510,318 $ 418,451 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Nov. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 6 – PROPERTY AND EQUIPMENT Property and equipment consist of the following as of November 30: SCHEDULE OF PROPERTY AND EQUIPMENT 2022 2021 Machinery and equipment $ 579,076 $ 451,593 Leasehold improvements 141,580 141,580 Demonstration units 1,685,506 1,685,506 Construction in progress 689,711 - Total property and equipment 3,095,873 2,278,679 Less: accumulated depreciation (532,107 ) (85,114 ) Property and equipment, net $ 2,563,766 $ 2,193,565 Depreciation expense for the years ended November 30, 2022 and 2021 was $ 446,994 85,114 88,116 57,029 |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended |
Nov. 30, 2022 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE | NOTE 7 - ACCOUNTS PAYABLE Accounts payable are made up of payables due to vendors in the ordinary course of business. For the year ended November 30, 2022, two vendors accounted for 29 % of purchases. For the year ended November 30, 2021, one vendor accounted for 15 % of purchases. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Nov. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 8 – STOCKHOLDERS’ EQUITY Preferred Stock Series A As of November 30, 2022 and 2021, there were 100,000 19,148 10,355 Each Series A Preferred share is entitled to one vote on matters that only the Holders are entitled to vote upon The Preferred stockholders are entitled to receive non-cumulative preferential dividends, when and as declared by the Board of Directors. Dividends accrue at 8 % per annum beginning on the original issue date, calculated as simple interest. For the years ended November 30, 2022 and 2021, no declarations have been made (see note 12). The Preferred stock has a conversion price of eighty percent ( 80 During the year ended November 30, 2021, the Company issued 9,043 2,260,671 1,312 During the year ended November 30, 2022, the Company issued 4,860 1,215,000 3,933 250 983,500 Common Stock As of November 30, 2022 and 2021, there were 1,000,000 500,000 Upon formation of the Company, the common shares authorized was 10,000 . In May 2021, 2,000 common shares were issued to Robert Mount and Lynn Barney, the Company’s founders valued at $ 500 1,000,000 , in addition to authorizing the preferred stock discussed above. Upon the filing of the amended articles of incorporation, the common shares were subject to a 250-for-1 forward stock split ; thus, increasing the common shares outstanding to 500,000 shares. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 9 – INCOME TAX For the years ended November 30, 2022 and 2021, the Company had $ 100 1,254 no The tax effect of temporary differences that give rise to deferred tax assets and deferred tax liabilities are as follows as of November 30, SCHEDULE OF DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES Deferred Tax Assets 2022 2021 Net operating losses $ 937,882 $ 396,201 Right of use asset/liability 27,728 18,114 Allowance and reserves 1,862 - Total gross deferred tax assets 967,472 414,316 Less: valuation allowance (525,388 ) (292,160 ) Total deferred tax assets 442,084 122,156 Deferred tax liabilities Depreciation of fixed assets (442,084 ) (122,156 ) Total deferred tax liabilities (442,084 ) (122,156 ) Net deferred tax assets $ - $ - Components of net deferred tax assets, including a valuation allowance, are as follows as of November 30: SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS 2022 2021 Deferred tax assets $ 967,472 $ 414,316 Valuation allowance (525,388 ) (292,160 ) Total deferred tax assets 442,084 $ 122,156 Deferred tax liabilities (442,084 ) (122,156 ) Total net deferred assets/liabilities $ - $ - The valuation allowance for deferred tax assets as of November 30, 2022 and 2021 was $ 525,388 and $ 292,160 , respectively. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Management has recorded a 100 % valuation allowance, against its net deferred tax assets, since management believes it is more likely than not that it will not be realized at the date of this statement. The Company will continue to monitor the potential utilization of this asset. Should factors and evidence change to aid in this assessment, a potential adjustment to the valuation allowance in future periods may occur. The Company records any penalties and interest as a component of operating expenses. The reconciliation between statutory rate and effective rate is as follows as of November 30, SCHEDULE OF RECONCILIATION BETWEEN STATUTORY RATE AND EFFECTIVE RATE 2022 2021 Federal statutory tax rate 21 % 21 % State taxes 0 % 0 % Nondeductible items 0 % 0 % Change in valuation allowance (21 )% (21 )% Return to provision adjustments 0 % 0 % Effective tax rate 0 % 0 % The Company reported no uncertain tax liability as of November 30, 2022 and expects no significant change to the uncertain tax liability over the next twelve months. The Company’s 2019, 2020, and 2021 federal and state income tax returns are open for examination by the applicable governmental authorities. As of November 30, 2022, the Company has a net operating loss (NOL) carryforward of approximately $ 1,334,083 . The NOL carryforward does not have an expiration. Under Section 382 of the Internal Revenue Code of 1986, as amended (“IRC Section 382”), a corporation that undergoes an “ownership change” is subject to limitations on its use of pre-change NOL carryforwards to offset future taxable income. Within the meaning of IRC Section 382, an “ownership change” occurs when the aggregate stock ownership of certain stockholders (generally 5% shareholders, applying certain look-through rules and aggregation rules which combine unrelated shareholders that do not individually own 5% or more of the corporation’s stock into one or more “public groups” that may be treated as 5-percent shareholder) increases by more than 50 percentage points over such stockholders’ lowest percentage ownership during the testing period (generally three years) . In general, the annual use limitation equals the aggregate value of common stock at the time of the ownership change multiplied by a specified tax-exempt interest rate. The Company has not completed a study as to whether there is a 382 limitation on its NOLs that will limit or possibly eliminate the use of its NOLs in the future. Company’s Management has recorded a 100 % valuation allowance on the entire NOL as it believes that it is more likely than not that the deferred tax asset associated with the NOLs will not be realized regardless of whether or not an “ownership change” has occurred. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Nov. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 – COMMITMENTS AND CONTINGENCIES Operating Leases For the year ended November 30, 2021, we had two Operating leases as follows: ● Office space in Lindon, Utah, with monthly payments of $ 5,000 2,790 3.28 17 ● Manufacturing space in American Fork, Utah, with a monthly payment of $ 40,826.52 80,052 3.28 80 We entered into two lease agreements each beginning June 1, 2021. The first lease agreement was for office space in Lindon, Utah, and was for a term of 24 86 Both lease agreements contain a variable portion that covers Common Area Maintenance fees. These fees represent our proportionate share of the leased square footage relative to the total square footage of the lessor’s property. No other aspect of the lease agreements contains variable fees. Both leases contain options for extending the leases at the end of the initially stated lease periods. The Lindon lease can be renewed for one-year terms at a three percent increase in monthly rent. When we signed this lease, we expected to renew the lease for one complete year, and thus treated the lease as a two-year lease. 86 As these leases do not provide the implicit rate, we use an estimated incremental borrowing rate (IBR). To estimate the IBR, we used the risk-free rate of the US treasury rate, plus a premium for credit risk. As of November 30, 2022, we had two Operating leases as follows: ● Office space in Lindon, Utah, with monthly payments of $ 29,012.49 15,503 7.52 71 ● Manufacturing space in American Fork, Utah, with a monthly payment of $ 41,643.05 80,052 3.28 68 During the year ended November 30, 2022 we cancelled our lease for office space in Lindon Utah early, with no material gain or loss, and entered into a new lease agreement with the same lessor for different, larger office space, and for longer terms. Specifically, the new Lindon lease is for 72 72 Other information related to our operating leases is as follows: SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASES ROU asset – December 1, 2020 $ - Additions 3,359,674 - Amortization (236,109 ) ROU asset - November 30, 2021 $ 3,123,565 Lease liability – December 1, 2020 $ - Additions 3,359,674 - Amortization (163,161 ) Lease liability - November 30, 2021 $ 3,196,513 ROU asset – December 1, 2021 $ 3,123,565 Additions 1,633,349 Deletions (30,156 ) Amortization (487,082 ) ROU asset - November 30, 2022 $ 4,239,676 Lease liability - December 1, 2021 $ 3,196,513 Additions 1,633,349 Deletions (30,606 ) Amortization (447,916 ) Lease liability - November 30, 2022 $ 4,351,340 As of November 30, 2022, our operating leases had a weighted average remaining lease term of 68.85 5.9 78.33 3.28 The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the lease liabilities recorded on the Balance Sheet as of November 30, 2022: SCHEDULE OF MINIMUM LEASE PAYMENTS Fiscal Year Minimum Lease Payments 2023 $ 681,173 2024 879,958 2025 900,306 2026 921,161 2027 942,536 Thereafter 741,909 Total 5,067,043 Less interest (715,703 ) Present value of future minimum lease payments 4,351,340 Less current obligations (475,195 ) Long term lease obligations $ 3,876,145 Subleases We entered into sublease agreements for the manufacturing property in American Fork for fiscal years 2021 and 2022. We subleased 30,000 207,538 10,000 84,900 34,000 0 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Nov. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 – RELATED PARTY TRANSACTIONS In May 2021, the Company issued 2,000 500 The Company issued 1,312 250 328,000 During the year ended November 30, 2022, the Company issued 3,933 250 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Nov. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 – SUBSEQUENT EVENTS On December 1, 2022, pursuant to an Agreement and Plan of Merger, dated as of December 1, 2022, by and among Nestbuilder.com Corp., NB Merger Corp., a Delaware corporation and a direct, wholly owned subsidiary of Nestbuilder (“Nestbuilder”), Renewable Innovations, Inc., a Delaware corporation, Lynn Barney, as the representative of the Company’s securityholders, and Alex Aliksanyan, as Nestbuilder representative, Nestbuilder acquired the Company through the merger of NB Merger Corp. with and into the Company (the “Merger”), with the Company continuing as the surviving wholly owned subsidiary of Nestbuilder. Immediately prior to the Merger, there were 6,090,580 shares of Nestbuilder Common Stock issued and outstanding and warrants outstanding to acquire up to an aggregate of 10,135,000 shares of Nestbuilder Common Stock. As a result of the Merger, Nestbuilder issued to the shareholders of the Company an aggregate of 2,155,684 shares of Nestbuilder Series A Convertible Preferred Stock, each share of which is convertible into 100 shares of Nestbuilder Common Stock and votes on an as converted basis. Subsequent to the Merger, the shareholders of the Company held 97 % voting control of the combined entity. As a result of the foregoing transactions, Nestbuilder underwent a change of control on December 1, 2022, which will be accounted for as a reverse merger and recapitalization of the Company. Also immediately prior to the Merger, the Company declared and issued a preferred stock dividend of $ 282,145 In connection with the Merger, Nestbuilder changed its name to Renewable Innovations, Inc. In accordance with ASC 855, “Subsequent Events”, the Company has evaluated all subsequent events through the date of this filing. No other significant events have occurred besides the events disclosed in the Notes to the Financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates We prepare our financial statements in accordance with accounting principles generally accepted in the United States of America, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These assumptions and estimates could have a material effect on our financial statements. Actual results may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause us to revise these estimates. Significant accounting estimates reflected in the Company’s financial statements include allowance for doubtful accounts, revenue recognition, deferred revenue, useful lives of property, plant and equipment and fair value of lease liabilities and right of use assets, and inventory obsolescence. |
Cash | Cash Cash consists of petty cash and checking accounts. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered cash equivalents. There were no The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. |
Accounts Receivable | Accounts Receivable We manage credit risk associated with our accounts receivables at the customer level. Because the same customers typically generate the revenues that are accounted for under both Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (Topic 606) Accounting Standards Codification Topic 326, Credit Losses (Topic 326 Pursuant to Topic 326 for our accounts receivables, we maintain an allowance for doubtful accounts that reflects our estimate of our expected credit losses. Our allowance is estimated using a loss rate model based on delinquency. The estimated loss rate is based on our historical experience with specific customers, our understanding of our current economic circumstances, reasonable and supportable forecasts, and our own judgment as to the likelihood of ultimate payment based upon available data. We perform credit evaluations of customers and establish credit limits based on reviews of our customers’ current credit information and payment histories. The actual rate of future credit losses, however, may not be similar to past experience. Our estimate of doubtful accounts could change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowance for doubtful accounts. |
Inventory | Inventory All inventory consists of raw materials and is valued at the lower of first-in-first-out cost or net realizable value; where net realizable value is considered to be the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. Management periodically evaluates inventory for obsolescence and has determined that no inventory is obsolete as of November 30, 2022 and 2021. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated using a straight-line method over the estimated useful lives. Ordinary repair and maintenance costs are included in sales, general, and administrative (“SG&A”) expenses on our statements of operations. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. At the time assets are sold or disposed of, the cost and accumulated depreciation are removed from their respective accounts and the related gains or losses are reflected in the statements of operations in gains from sales of property and equipment, net. The Company’s demonstration units are examples of two of the Company’s products and are taken to trade shows and other venues to showcase the Company’s hydrogen cell technology and products. Construction in progress includes large equipment that will be used in production that have not yet been placed in service because, either installation or training is not complete. We periodically evaluate the appropriateness of remaining depreciable lives assigned to property and equipment. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the remaining term of the lease, whichever is shorter. Generally, we assign the following estimated useful lives to these categories: SCHEDULE OF ESTIMATED USEFUL LIVES Category Estimated Useful Life Machinery and equipment Leasehold improvements Demonstration units 5 10 7 years 5 years |
Leases | Leases We determine whether an arrangement is a lease at the inception of the arrangement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset, and we have the right to control the asset for a period of time in exchange for consideration. Lease arrangements can take several forms. Some arrangements are clearly within the scope of lease accounting, such as real estate contracts that provide an explicit contractual right to use a building for a specified period of time in exchange for consideration. However, the right to use an asset can also be conveyed through arrangements that are not leases in form, such as leases embedded within service and supply contracts. We analyze all arrangements with potential embedded leases to determine if an identified asset is present, if substantive substitution rights are present, and if the arrangement provides the customer control of the asset. Our lease portfolio is substantially comprised of operating leases related to leases of real estate and improvements. From time to time, we may also lease various types of small equipment and vehicles. Operating lease right-of-use (“ROU”) assets represent our right to use an individual asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide the lessor’s implicit rate we use the incremental borrowing rate IBR, in determining the present value of lease payments by utilizing a fully collateralized rate for a fully amortizing loan with the same term as the lease. Lease terms include options to extend the lease when it is reasonably certain those options will be exercised. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. Our leases can include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when such renewal options and/or termination options are reasonably certain of exercise. A ROU asset is subject to the same impairment guidance as assets categorized as plant, property, and equipment. As such, any impairment loss on ROU assets is presented in the same manner as an impairment loss recognized on other long-lived assets. A lease modification is a change to the terms and conditions of a contract that change the scope or consideration of a lease. For example, a change to the terms and conditions to the contract that adds or terminates the right to use one or more underlying assets, or extends or shortens the contractual lease term, is a modification. Depending on facts and circumstances, a lease modification may be accounted as either: (1) the original lease plus the lease of a separate asset(s) or (2) a modified lease. A lease will be remeasured if there are changes to the lease contract that do not give rise to a separate lease. |
Impairment of long-lived Assets | Impairment of long-lived Assets U.S. GGAP requires that long-lived assets held by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. No |
Revenue Recognition | Revenue Recognition When entering into contracts with our customers, we follow the five steps outlined in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (Topic 606) i. Identify the contract with our customer. ii. Identify the performance obligations in the contract. iii. Determine the transaction price. iv. Allocate the transaction price to the performance obligations. v. Evaluate the satisfaction of the performance obligations. We account for contracts, with our customers, when we have approval and commitment from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance and collectability of consideration is probable. Under Topic 606, we recognize revenue when or as we satisfy a performance obligation by transferring a promised good or service to our customer. A good or service is considered transferred when the customer obtains control. The standard defines control as an entity’s ability to direct the use of, and obtain substantially all of the remaining benefits from, an asset. We recognize revenue once control has passed to the customer. The following indicators are evaluated in determining when control has passed to the customer: i. We have a right to payment for the product or service, ii. The customer has legal title to the product, iii. We have transferred physical possession of the product to the customer, iv. The customer has the risk and rewards of ownership of the product, and v. The customer has accepted the product. The following are the two revenue streams: Revenue Recognition for Sale and/or Install of Power Systems. Most of our contracts to date are to enhance assets controlled by the customer. In these cases, revenue is recognized based on the percentage of completion method, as described below. Payment terms for these contracts generally match the payment terms for assets not controlled by the customer. For contracts where revenue is recognized over time, management uses the percentage of completion input method based on costs. Specifically, percentage of completion is the ratio of total costs to date to estimated expected costs related to the project. Some contracts to date do not qualify for revenue recognition over time because Management has determined that though the assets which the Company creates are customized to the specifications required by the customer, the assets have alternative use because the Company could theoretically find a new purchaser for the product with minimal modifications to the assets. Therefore, the Company has earned revenue for the sale and/or installation of power systems both over time as the performance obligations is satisfied, and at the point in time in which the performance obligation is satisfied. The Company has not had experience with returns to date. Additionally, the customer is generally involved in the customization and selection of specifications for the contracted goods and services. Therefore, management considers returns as they arise. The Company provides explicit warranties on products, in that it provides assurance that the related product will function as the parties intended. These warranties are not separately purchasable. Warranties do not constitute a separate performance obligation. Revenue Recognition for the Design and Testing of Power Systems. Significant Judgments Freight Costs. Costs to Obtain or Fulfill a Contract Disaggregated Revenue SCHEDULE OF DISAGGREGATION OF REVENUE 2022 2021 Sales of services $ 28,673 $ 15,000 Sales of products 3,439,914 355,341 Total sales $ 3,468,587 $ 370,341 Reconciliation of Contract Balances 4,208,364 and $ 1,363,050 , respectively. Additionally, as of November 30, 2022 and 2021, the Company had $ 222,395 and $ 15 ,000, respectively of contract assets included in accounts receivable for revenues earned, but not yet invoiced. The following table provides a summary of the changes included in deferred revenue during the years ended November 30, 2022 and 2021: SUMMARY OF CHANGES IN DEFERRED REVENUE 2022 2021 Beginning balance $ 1,007,709 $ - Additions to contract liabilities 4,208,364 1,363,050 Deductions to contract liabilities (3,439,914 ) (355,341 ) Ending balance $ 1,776,159 $ 1,007,709 Remaining Performance Obligations 5,200,000 in unsatisfied performance obligations yet to be collected, which are expected to be fully satisfied within 1-2 years . |
Cost of Revenue | Cost of Revenue The expenses that are included in costs of revenue include all raw material and in-house manufacturing costs for the products we manufacture. |
Advertising | Advertising The Company expenses marketing and advertising costs as incurred. During the year ended November 30, 2022 and 2021, the Company spent $ 71,724 167,020 |
Settlement | Settlement During the year ended November 30, 2022, the Company issued preferred stock and recognized a settlement expense of $ 983,500 to one of the Company founders as part of a settlement agreement with a third-party. In connection with the legal settlement, the Company also recognized a gain of $ 20,450 related to a previous sublease arrangement. |
Concentration of Credit and Business Risk | Concentration of Credit and Business Risk The Company maintains its cash accounts at a commercial bank located in United States. The FDIC insures $ 250,000 1,010,000 115,000 For the year ended November 30, 2022, two vendors accounted for 29 15 For the years ended November 30, 2022 and 2021, two customers accounted for 99.3 96 Two customers represented 100 100 |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock grants that are issued to non-employees based on the estimated fair value of goods or services provided to the Company. |
Income Taxes | Income Taxes We account for our income taxes in accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. Income tax expense is based on reported earnings before income taxes. Deferred income taxes reflect the impact of temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes and are measured by applying enacted tax rates in effect in years in which the differences are expected to reverse. We also follow the guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Our income is subject to taxation in the United States. Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. The Company establishes reserves for income tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves for tax contingencies are established when we believe positions do not meet the more-likely-than-not recognition threshold. We adjust uncertain tax liabilities in light of changing facts and circumstances, such as the outcome of a tax audit or lapse of a statute of limitations. The provision for income taxes includes the impact of uncertain tax liabilities and changes in liabilities that are considered appropriate. Currently, 2019, 2020, and 2021 tax years are open and subject to examination by the taxing authorities. However, the Company is not currently under audit nor has the Company been contacted by any of the taxing authorities. |
Recent Accounting Standards | Recent Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02 – Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective December 1, 2022, for the Company, with early implementation allowed. The Company elected to adopt ASU 2016-02 effective December 1, 2020. The adoption of ASU 2016-02 required the Company to record lease assets and liabilities on the balance sheet and also disclose key information about the Company’s leasing arrangement. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022, and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 effective December 31, 2021, applied on the full retrospective basis. The adoption of ASU 2020-06 did not have an impact on the Company’s financial statements. The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine effects, if any on its results of operations, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ESTIMATED USEFUL LIVES | SCHEDULE OF ESTIMATED USEFUL LIVES Category Estimated Useful Life Machinery and equipment Leasehold improvements Demonstration units 5 10 7 years 5 years |
SCHEDULE OF DISAGGREGATION OF REVENUE | Disaggregated Revenue SCHEDULE OF DISAGGREGATION OF REVENUE 2022 2021 Sales of services $ 28,673 $ 15,000 Sales of products 3,439,914 355,341 Total sales $ 3,468,587 $ 370,341 |
SUMMARY OF CHANGES IN DEFERRED REVENUE | The following table provides a summary of the changes included in deferred revenue during the years ended November 30, 2022 and 2021: SUMMARY OF CHANGES IN DEFERRED REVENUE 2022 2021 Beginning balance $ 1,007,709 $ - Additions to contract liabilities 4,208,364 1,363,050 Deductions to contract liabilities (3,439,914 ) (355,341 ) Ending balance $ 1,776,159 $ 1,007,709 |
ACCOUNTS RECEIVABLE AND CONTR_2
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLES | Accounts receivable consisted of the following as of November 30: SCHEDULE OF ACCOUNTS RECEIVABLES 2022 2021 Trade Accounts Receivable $ 81,667 $ - Contract assets 222,395 15,000 Less Allowance for doubtful accounts (7,500 ) - Total Accounts Receivable (net) $ 296,562 $ 15,000 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Inventory consisted of the following as of November 30: SCHEDULE OF INVENTORY 2022 2021 Raw materials $ 510,318 $ 315,462 Work in process - 102,989 Total inventory $ 510,318 $ 418,451 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consist of the following as of November 30: SCHEDULE OF PROPERTY AND EQUIPMENT 2022 2021 Machinery and equipment $ 579,076 $ 451,593 Leasehold improvements 141,580 141,580 Demonstration units 1,685,506 1,685,506 Construction in progress 689,711 - Total property and equipment 3,095,873 2,278,679 Less: accumulated depreciation (532,107 ) (85,114 ) Property and equipment, net $ 2,563,766 $ 2,193,565 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES | The tax effect of temporary differences that give rise to deferred tax assets and deferred tax liabilities are as follows as of November 30, SCHEDULE OF DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES Deferred Tax Assets 2022 2021 Net operating losses $ 937,882 $ 396,201 Right of use asset/liability 27,728 18,114 Allowance and reserves 1,862 - Total gross deferred tax assets 967,472 414,316 Less: valuation allowance (525,388 ) (292,160 ) Total deferred tax assets 442,084 122,156 Deferred tax liabilities Depreciation of fixed assets (442,084 ) (122,156 ) Total deferred tax liabilities (442,084 ) (122,156 ) Net deferred tax assets $ - $ - |
SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS | Components of net deferred tax assets, including a valuation allowance, are as follows as of November 30: SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS 2022 2021 Deferred tax assets $ 967,472 $ 414,316 Valuation allowance (525,388 ) (292,160 ) Total deferred tax assets 442,084 $ 122,156 Deferred tax liabilities (442,084 ) (122,156 ) Total net deferred assets/liabilities $ - $ - |
SCHEDULE OF RECONCILIATION BETWEEN STATUTORY RATE AND EFFECTIVE RATE | The reconciliation between statutory rate and effective rate is as follows as of November 30, SCHEDULE OF RECONCILIATION BETWEEN STATUTORY RATE AND EFFECTIVE RATE 2022 2021 Federal statutory tax rate 21 % 21 % State taxes 0 % 0 % Nondeductible items 0 % 0 % Change in valuation allowance (21 )% (21 )% Return to provision adjustments 0 % 0 % Effective tax rate 0 % 0 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASES | Other information related to our operating leases is as follows: SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASES ROU asset – December 1, 2020 $ - Additions 3,359,674 - Amortization (236,109 ) ROU asset - November 30, 2021 $ 3,123,565 Lease liability – December 1, 2020 $ - Additions 3,359,674 - Amortization (163,161 ) Lease liability - November 30, 2021 $ 3,196,513 ROU asset – December 1, 2021 $ 3,123,565 Additions 1,633,349 Deletions (30,156 ) Amortization (487,082 ) ROU asset - November 30, 2022 $ 4,239,676 Lease liability - December 1, 2021 $ 3,196,513 Additions 1,633,349 Deletions (30,606 ) Amortization (447,916 ) Lease liability - November 30, 2022 $ 4,351,340 |
SCHEDULE OF MINIMUM LEASE PAYMENTS | The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the lease liabilities recorded on the Balance Sheet as of November 30, 2022: SCHEDULE OF MINIMUM LEASE PAYMENTS Fiscal Year Minimum Lease Payments 2023 $ 681,173 2024 879,958 2025 900,306 2026 921,161 2027 942,536 Thereafter 741,909 Total 5,067,043 Less interest (715,703 ) Present value of future minimum lease payments 4,351,340 Less current obligations (475,195 ) Long term lease obligations $ 3,876,145 |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) - shares | 1 Months Ended | ||||
May 13, 2021 | May 31, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | May 12, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||
Common stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | 10,000 | |
Stock split ratio | 250-for-1 forward stock split | ||||
Common stock, shares outstanding | 500,000 | 500,000 | 500,000 | ||
Robert Mount and Lynn Barney [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||
Shares issued | 2,000 |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES (Details) | 12 Months Ended |
Nov. 30, 2022 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 7 |
Demonstration Units [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 5 |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 5 |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 10 |
SCHEDULE OF DISAGGREGATION OF R
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Product Information [Line Items] | ||
Total sales | $ 3,468,587 | $ 370,341 |
Service [Member] | ||
Product Information [Line Items] | ||
Total sales | 28,673 | 15,000 |
Product [Member] | ||
Product Information [Line Items] | ||
Total sales | $ 3,439,914 | $ 355,341 |
SUMMARY OF CHANGES IN DEFERRED
SUMMARY OF CHANGES IN DEFERRED REVENUE (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Accounting Policies [Abstract] | ||
Beginning balance | $ 1,007,709 | |
Additions to contract liabilities | 4,208,364 | 1,363,050 |
Deductions to contract liabilities | (3,439,914) | (355,341) |
Ending balance | $ 1,776,159 | $ 1,007,709 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Product Information [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Inventory adjustments | 0 | 0 |
Impairment of long-lived assets | 0 | 0 |
Deferred revenue current | 4,208,364 | 1,363,050 |
Contract assets | 222,395 | 15,000 |
Revenue, Remaining Performance Obligation, Amount | $ 5,200,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | performance obligations yet to be collected, which are expected to be fully satisfied within 1-2 years | |
Advertising costs | $ 71,724 | $ 167,020 |
Litigation Settlement, Expense | 983,500 | |
Gain loss related to litigation settlement | 20,450 | |
Cash FDIC insured amount | $ 250,000 | |
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor Two [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 29% | |
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor One [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 15% | |
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Customer Two [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 99.30% | 96% |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer Two [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 100% | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer One [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 100% | |
Maximum [Member] | ||
Product Information [Line Items] | ||
Cash FDIC insured amount | $ 1,010,000 | $ 115,000 |
Accounts Receivable [Member] | ||
Product Information [Line Items] | ||
Contract assets | $ 222,395 | $ 15 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Retained earnings accumulated deficit | $ 2,123,966 | $ 1,179,028 |
Net Income (Loss) Attributable to Parent | $ 944,938 | $ 1,179,028 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLES (Details) - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Credit Loss [Abstract] | ||
Trade Accounts Receivable | $ 81,667 | |
Contract assets | 222,395 | 15,000 |
Less Allowance for doubtful accounts | (7,500) | 0 |
Total Accounts Receivable (net) | $ 296,562 | $ 15,000 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 510,318 | $ 315,462 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Property, Plant and Equipment [Abstract] | ||
Machinery and equipment | $ 579,076 | $ 451,593 |
Leasehold improvements | 141,580 | 141,580 |
Demonstration units | 1,685,506 | 1,685,506 |
Construction in progress | 689,711 | |
Total property and equipment | 3,095,873 | 2,278,679 |
Less: accumulated depreciation | (532,107) | (85,114) |
Property and equipment, net | $ 2,563,766 | $ 2,193,565 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Impairment Effects on Earnings Per Share [Line Items] | ||
Cost of sales | $ 2,578,368 | $ 339,629 |
Property, Plant and Equipment [Member] | ||
Impairment Effects on Earnings Per Share [Line Items] | ||
Depreciation expense | 446,994 | 85,114 |
Cost of sales | $ 88,116 | $ 57,029 |
ACCOUNTS PAYABLE (Details Narra
ACCOUNTS PAYABLE (Details Narrative) - Revenue Benchmark [Member] - Supplier Concentration Risk [Member] | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Vendor Two [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 29% | |
Vendor One [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 15% |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) | 1 Months Ended | 12 Months Ended | |||
May 13, 2021 shares | May 31, 2021 USD ($) shares | Nov. 30, 2022 USD ($) $ / shares shares | Nov. 30, 2021 USD ($) $ / shares shares | May 12, 2021 shares | |
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized | 100,000 | 100,000 | |||
Preferred stock, shares outstanding | 19,148 | 10,355 | |||
Shares issued, value | $ | |||||
Common stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | 10,000 | |
Common stock, shares issued | 500,000 | 500,000 | |||
Common stock shares outstanding | 500,000 | 500,000 | 500,000 | ||
Reverse stock split | 250-for-1 forward stock split | ||||
Robert Mount and Lynn Barney [Member] | |||||
Class of Stock [Line Items] | |||||
Shares issued | 2,000 | ||||
Shares issued, value | $ | $ 500 | ||||
Series A Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized | 100,000 | 100,000 | |||
Preferred stock, shares outstanding | 19,148 | 10,355 | |||
Preferred stock, voting rights | Each Series A Preferred share is entitled to one vote on matters that only the Holders are entitled to vote upon | ||||
Preferred Stock, Dividend Rate, Percentage | 8% | ||||
Preferred stock, conversion percenatge | 80 | ||||
Series A Preferred Stock [Member] | Equipment [Member] | |||||
Class of Stock [Line Items] | |||||
Shares issued | 1,312 | ||||
Shares issued, value | $ | $ 328,000 | ||||
Preferred stock, sales price per chare | $ / shares | $ 250 | ||||
Series A Preferred Stock [Member] | Investors [Member] | |||||
Class of Stock [Line Items] | |||||
Shares issued | 4,860 | 9,043 | |||
Shares issued, value | $ | $ 1,215,000 | $ 2,260,671 | |||
Series A Preferred Stock [Member] | Founder [Member] | |||||
Class of Stock [Line Items] | |||||
Shares issued | 3,933 | ||||
Shares issued, value | $ | $ 983,500 | ||||
Preferred stock, sales price per chare | $ / shares | $ 250 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES (Details) - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Deferred Tax Assets | ||
Net operating losses | $ 937,882 | $ 396,201 |
Right of use asset/liability | 27,728 | 18,114 |
Allowance and reserves | 1,862 | |
Total gross deferred tax assets | 967,472 | 414,316 |
Less: valuation allowance | (525,388) | (292,160) |
Total deferred tax assets | 442,084 | 122,156 |
Deferred tax liabilities | ||
Depreciation of fixed assets | (442,084) | (122,156) |
Total deferred tax liabilities | (442,084) | (122,156) |
Net deferred tax assets |
SCHEDULE OF COMPONENTS OF NET D
SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS (Details) - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 967,472 | $ 414,316 |
Valuation allowance | (525,388) | (292,160) |
Total deferred tax assets | 442,084 | 122,156 |
Deferred tax liabilities | (442,084) | (122,156) |
Net deferred tax assets |
SCHEDULE OF RECONCILIATION BETW
SCHEDULE OF RECONCILIATION BETWEEN STATUTORY RATE AND EFFECTIVE RATE (Details) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory tax rate | 21% | 21% |
State taxes | 0% | 0% |
Nondeductible items | 0% | 0% |
Change in valuation allowance | (21.00%) | (21.00%) |
Return to provision adjustments | 0% | 0% |
Effective tax rate | 0% | 0% |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current income tax provision | $ 100 | $ 1,254 |
Deferred income tax provision | 0 | 0 |
Deferred tax assets valuation allowance | $ 525,388 | $ 292,160 |
[custom:DeferredTaxAssetsValuationAllowancePercentage] | 100% | |
Operating loss carryforwards | $ 1,334,083 | |
Other Information Pertaining to Income Taxes | Within the meaning of IRC Section 382, an “ownership change” occurs when the aggregate stock ownership of certain stockholders (generally 5% shareholders, applying certain look-through rules and aggregation rules which combine unrelated shareholders that do not individually own 5% or more of the corporation’s stock into one or more “public groups” that may be treated as 5-percent shareholder) increases by more than 50 percentage points over such stockholders’ lowest percentage ownership during the testing period (generally three years) |
SCHEDULE OF OTHER INFORMATION R
SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASES (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
ROU asset, Beginning balance | $ 3,123,565 | |
ROU asset, Additions | 1,633,349 | 3,359,674 |
ROU asset, Deletion | (30,156) | |
ROU asset, Amortization | (487,082) | (236,109) |
ROU asset, Ending balance | 4,239,676 | 3,123,565 |
Lease liability, Beginning balance | 3,196,513 | |
Lease liability, Additions | 1,633,349 | 3,359,674 |
Lease liability, Deletions | (30,606) | |
Lease liability, Amortization | (447,916) | (163,161) |
Lease liability, Ending balance | $ 4,351,340 | $ 3,196,513 |
SCHEDULE OF MINIMUM LEASE PAYME
SCHEDULE OF MINIMUM LEASE PAYMENTS (Details) - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 |
Commitments and Contingencies Disclosure [Abstract] | |||
2023 | $ 681,173 | ||
2024 | 879,958 | ||
2025 | 900,306 | ||
2026 | 921,161 | ||
2027 | 942,536 | ||
Thereafter | 741,909 | ||
Total | 5,067,043 | ||
Less interest | (715,703) | ||
Present value of future minimum lease payments | 4,351,340 | $ 3,196,513 | |
Less current obligations | (475,195) | (455,661) | |
Long term lease obligations | $ 3,876,145 | $ 2,740,852 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 12 Months Ended | |
Nov. 30, 2022 USD ($) ft² | Nov. 30, 2021 USD ($) ft² | |
Property, Plant and Equipment [Line Items] | ||
Weighted average discount rate | 5.90% | 3.28% |
Weighted average remaining lease term | 68 months 25 days | 78 months 10 days |
Operating lease extension term | Both leases contain options for extending the leases at the end of the initially stated lease periods. The Lindon lease can be renewed for one-year terms at a three percent increase in monthly rent. When we signed this lease, we expected to renew the lease for one complete year, and thus treated the lease as a two-year lease. | |
Office Space [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease, monthly payments | $ 29,012.49 | $ 5,000 |
Area of land | ft² | 15,503 | 2,790 |
Weighted average discount rate | 7.52% | 3.28% |
Weighted average remaining lease term | 71 months | 17 months |
Operating lease term | 24 months | |
Manufacturing Space [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease, monthly payments | $ 41,643.05 | $ 40,826.52 |
Area of land | ft² | 80,052 | 80,052 |
Weighted average discount rate | 3.28% | 3.28% |
Weighted average remaining lease term | 68 months | 80 months |
Operating lease term | 86 months | |
Manufacturing Space [Member] | Sublease Agreement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Area of land | ft² | 10,000 | 30,000 |
Sublease income | $ 84,900 | $ 207,538 |
Lease deposits | $ 0 | $ 34,000 |
New Lindon Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average remaining lease term | 72 months |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 31, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Shares issued, value | |||
Series A Preferred Stock [Member] | Equipment [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Shares issued | 1,312 | ||
Shares issued, value | $ 328,000 | ||
Preferred stock, sales price per chare | $ 250 | ||
Robert Mount and Lynn Barney [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Shares issued | 2,000 | ||
Shares issued, value | $ 500 | ||
Founder [Member] | Series A Preferred Stock [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Shares issued | 3,933 | ||
Shares issued, value | $ 983,500 | ||
Preferred stock, sales price per chare | $ 250 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 12 Months Ended | |||
Dec. 01, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | May 13, 2021 | |
Subsequent Event [Line Items] | ||||
Common Stock, Shares, Outstanding | 500,000 | 500,000 | 500,000 | |
Preferred Stock, Shares Issued | 19,148 | 10,355 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
[custom:VotingRightsPercentage] | 97% | |||
Preferred stock dividend | $ 282,145 | |||
Nestbuilder [Member] | ||||
Subsequent Event [Line Items] | ||||
Common Stock, Shares, Outstanding | 6,090,580 | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 10,135,000 | |||
Nestbuilder [Member] | Series A Convertible Preferred Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Preferred Stock, Shares Issued | 2,155,684 | |||
Conversion of Stock, Shares Converted | 100 |