Document And Entity Information
Document And Entity Information - shares | 12 Months Ended | |
Nov. 30, 2019 | Feb. 28, 2020 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Liquid Media Group Ltd. | |
Entity Central Index Key | 0000884247 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Current Fiscal Year End Date | --11-30 | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding | 5,727,558 | |
Document Type | 20-F | |
Document Period End Date | Nov. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Voluntary Filers | No | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | A1 | |
Document Annual Report | false | |
Trading Symbol | YVR | |
Title of a 12(b) registered security. | Common Shares, without Par Value | |
Security Exchange Name | NASDAQ | |
Document Transition Report | true |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Current assets | ||
Cash | $ 4,587,405 | $ 4,327,331 |
Restricted cash | 672,663 | 574,510 |
Receivables | 698,361 | 182,067 |
Prepaids | 296,352 | 18,921 |
Loans receivable | 94,882 | 431,295 |
Total current assets | 6,349,663 | 5,534,124 |
Loans receivable | 233,837 | |
Licenses | 1,840,836 | 4,382,598 |
Investment in associates | 397,629 | |
Investment in equity instruments | 1,551,324 | |
Equipment | 123,305 | |
Intangible assets | 1,707,959 | 1,676,822 |
Goodwill | 3,582,548 | 3,585,883 |
Total assets | 15,389,472 | 15,577,056 |
Current liabilities | ||
Accounts payable and accrued liabilities | 4,367,381 | 3,887,847 |
Corporate income taxes payable | 1,668 | |
Loans payable | 1,437,933 | 934,203 |
Current liabilities | 5,805,314 | 4,823,718 |
Convertible debentures | 1,388,402 | |
Deferred income taxes | 23,163 | 23,184 |
Derivative liability | 1,102,277 | 652,758 |
Liabilities | 8,319,156 | 5,499,660 |
SHAREHOLDERS' EQUITY (DEFICIENCY) | ||
Share capital | 21,118,940 | 18,032,601 |
Commitment to issue shares | 137,197 | 12,550 |
Reserves | 2,166,098 | 771,623 |
Accumulated other comprehensive income | 303,465 | 282,082 |
Accumulated deficit | (18,441,785) | (10,860,401) |
Equity (deficit) attributable to shareholders of the company | 5,283,915 | 8,238,455 |
Non-controlling interest | 1,786,401 | 1,838,941 |
Total Equity | 7,070,316 | 10,077,396 |
Total equity and liabilities | $ 15,389,472 | $ 15,577,056 |
Consolidated Statements of Loss
Consolidated Statements of Loss - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Profit or loss [abstract] | |||
Sales | $ 429,236 | $ 687,381 | |
Cost of sales | 1,985,804 | 758,749 | |
Gross profit (loss) | (1,556,568) | (71,368) | |
Operating expenses | |||
Accretion expense | 211,155 | 1,900 | |
Amortization | 100,202 | 17,722 | |
Bad debts | 10,020 | ||
Consulting and director fees | 1,467,406 | 883,395 | 537,157 |
Depreciation | 1,553 | ||
Foreign exchange (gain) loss | 16,833 | 65,612 | (1,749) |
Insurance | 58,452 | 17,568 | |
Interest expense | 178,767 | 133,915 | 215,704 |
Investor relations, filing, and compliance fees | 268,679 | 126,344 | 27,335 |
Marketing | 1,166,568 | ||
Other general and administrative expenses | 80,103 | 34,368 | 35,939 |
Professional fees | 979,070 | 570,008 | 90,980 |
Share-based compensation | 1,173,512 | 111,135 | 576,000 |
Salaries and benefits | 114,379 | 95,121 | |
Travel | 30,036 | 12,558 | 70,945 |
Total operating expenses | 5,846,715 | 2,077,766 | 1,554,211 |
Loss before other income (expenses) | (7,403,283) | (2,149,134) | (1,554,211) |
Other income (expenses) | |||
Interest income | 68,867 | 53,548 | 37,579 |
Share of profit (loss) of equity investment | 195,726 | (119,654) | (25,036) |
Write-off of associate | (310,484) | ||
Write-off of investment in films | (12,447) | ||
Write-off of intangible assets | (116,352) | ||
Write-off of licenses | 717,125 | ||
Listing expense | (4,130,557) | ||
Project investigation | (192,601) | (359,590) | (362,655) |
Write-off of deposit | (25,000) | ||
Derivative liability - warrants | (1,557,086) | ||
Gain (loss) on derivative liability | (449,519) | 1,030,328 | |
Gain (loss) on settlement of debt | (98,487) | 172,816 | 453 |
Unrealized gains on equity instruments | 953,961 | ||
Allowance for credit loss | (145,431) | ||
Total other income (expenses) | (384,609) | (5,349,478) | (374,659) |
Loss before income tax | (7,787,892) | (7,498,612) | (1,928,870) |
Deferred income tax expense (recovery) | (160,917) | ||
Income tax expense | (1,659) | 1,621 | |
Loss for the year | (7,625,316) | (7,500,233) | (1,928,870) |
Loss attributable to: | |||
Shareholders of the Company | (7,581,384) | (7,537,749) | (1,928,870) |
Non-controlling interest | (43,932) | 37,516 | |
Loss for the year | $ (7,625,316) | $ (7,500,233) | $ (1,928,870) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Statement of comprehensive income [abstract] | |||
Loss for the year | $ (7,625,316) | $ (7,500,233) | $ (1,928,870) |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | 12,775 | 398,892 | |
Comprehensive loss for the year | (7,612,541) | (7,101,341) | (1,928,870) |
Comprehensive loss attributable to: | |||
Shareholders of the company | (7,560,001) | (7,255,667) | (1,928,870) |
Non-controlling interest | (52,540) | 154,320 | |
Comprehensive loss for the year | $ (7,612,541) | $ (7,101,341) | $ (1,928,870) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Cash flows provided by (used in) operating activities | |||
Loss for the year | $ (7,625,316) | $ (7,500,233) | $ (1,928,870) |
Items not affecting cash: | |||
Accretion expense | (211,155) | 1,900 | |
Accrued interest income | (60,662) | (49,404) | (37,572) |
Accrued interest expense | 162,152 | 126,360 | 211,460 |
Accrued income taxes | 1,668 | ||
Allowance for credit loss | 145,431 | ||
Amortization - intangibles | 100,202 | 17,722 | |
Amortization - licenses | 1,819,596 | 603,718 | |
Depreciation | 1,553 | 200 | |
Bad debts | 10,020 | ||
Change in value of derivatives | 449,519 | 526,758 | |
Commitment to issue shares | 156,000 | ||
Deferred income tax recovery | (160,917) | ||
(Gain) loss on settlement of debt | 98,487 | (172,816) | (453) |
Non-cash listing expense | 4,130,557 | ||
Share of (profit) loss on equity investment | (195,726) | 119,654 | 25,036 |
Share-based compensation | 1,173,512 | 111,135 | 576,000 |
Shares issued for services | 73,980 | 73,980 | |
Unrealized foreign exchange | (6,722) | (155,943) | |
Unrealized gains on equity instruments | 953,961 | ||
Write-off of intangible assets | 116,352 | ||
Write-off of investments in associates | 310,484 | ||
Write-off of investments in film | 12,447 | ||
Write-off of license fees | 717,125 | ||
Changes in non-cash working capital: | |||
Receivables | (516,294) | (99,469) | (32,035) |
Prepaids | 204,840 | 172,815 | (154,604) |
Accounts payable and accrued liabilities | 713,702 | 2,044,431 | 182,984 |
Corporate income taxes payable | (1,668) | ||
Cash flows from (used in) operating activities | (4,026,634) | 326,256 | (1,155,954) |
Cash flows used in investing activities | |||
Cash acquired from reverse acquisition | 579,279 | ||
Cash received prior to reverse acquisition | 124,561 | ||
Cash acquired for Majesco | 11,060 | ||
Payment for consideration of Majesco | (196,505) | ||
Investment in film | (12,447) | ||
Investment in associate | (2,339) | (275,805) | |
Investment in intangibles | (133,356) | (79,808) | |
Loan receivable issued | (278,619) | ||
Loan receivable received | 10,000 | 13,372 | |
Interest received on loans | 7,807 | ||
Restricted cash from reverse acquisition | (574,510) | ||
Restricted cash received | 574,510 | ||
Purchase of restricted deposit certificate | (672,663) | ||
Cash flows from (used in) investing activities | (213,702) | (138,262) | (553,499) |
Cash flows provided by (used in) financing activities | |||
Loan proceeds | 812,933 | 167,500 | 2,000 |
Loan repayments | (137,000) | (27,500) | (1,756,721) |
Loan proceeds from related parties | 37,582 | 291,368 | |
Loan repayments to related parties | (172,203) | (50,500) | |
Interest paid on loans | (23,260) | (160,585) | |
Convertible debentures issued | 3,502,793 | ||
Shares issued for cash | 4,157,760 | 592,427 | |
Share issuance costs | (446,571) | ||
Commitment to issue shares | 104,139 | 168,550 | |
Warrants issued for cash | 368,617 | 156,615 | 126,000 |
Cash flows from (used in) financing activities | 4,456,019 | 3,994,886 | (736,961) |
Effect of foreign exchange on cash | 44,391 | 90,144 | |
Change in cash during the year | 260,074 | 4,273,024 | (2,446,414) |
Cash, beginning of year | 4,327,331 | 54,307 | 2,500,721 |
Cash, end of year | 4,587,405 | 4,327,331 | 54,307 |
Supplemental cash-flow disclosure: | |||
Interest received | 7,807 | 3,963 | |
Interest paid | $ 23,260 | $ 1,161 | $ 159,306 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Deficiency) | Issued capital [member]CAD ($)shares | Issued capital [member]USD ($)shares | Commitment To Issue Shares [Member]CAD ($) | Rreserves [member]CAD ($) | Accumulated Other Comprehensive IncomeCAD ($) | DeficitCAD ($) | Non-controlling InterestsCAD ($) | CAD ($)shares |
Beginning Balance at Nov. 30, 2016 | $ 1,081,000 | $ 14,397 | $ (1,393,782) | $ (298,385) | ||||
Beginning Balance, Shares at Nov. 30, 2016 | shares | 1,845,237 | 1,845,237 | ||||||
Statement Line Items [Line Items] | ||||||||
Shares issued for private placement - cash | $ 499,615 | 499,615 | ||||||
Shares issued for private placement - cash, Shares | shares | 124,434 | 124,434 | ||||||
Shares issued for finder fees | $ 24,600 | 24,600 | ||||||
Shares issued for finder fees, Shares | shares | 4,000 | 4,000 | ||||||
Shares issued pursuant to exercise of warrants | $ 17,812 | 17,812 | ||||||
Shares issued pursuant to exercise of warrants, Shares | shares | 4,750 | 4,750 | ||||||
Shares issued pursuant to exercise of stock options | $ 123,000 | (48,000) | 75,000 | |||||
Shares issued pursuant to exercise of stock options (in shares) | shares | 20,000 | 20,000 | ||||||
Share subscription received | 168,550 | 168,550 | ||||||
Shares issued to settle debt | $ 642,973 | 642,973 | ||||||
Shares issued to settle debt, Shares | shares | 179,294 | 179,294 | ||||||
Shares issued for intangible assets | ||||||||
Units issued for conversion of convertible debentures | $ 2,040,346 | (244,890) | 1,795,456 | |||||
Units issued for conversion of convertible debentures, Shares | shares | 1,000,167 | 1,000,167 | ||||||
Residual value of warrants issued for conversion of convertible debentures | $ (30,779) | 30,779 | ||||||
Shares issued for services | $ 73,980 | 73,980 | ||||||
Shares issued for services, Shares | shares | 17,222 | 17,222 | ||||||
Subscriptions reclassified to payables | (12,550) | (12,550) | ||||||
Convertible debenture - equity portion | 435,074 | 435,074 | ||||||
Share issue costs | (24,600) | (24,600) | ||||||
Share-based compensation | 576,000 | 576,000 | ||||||
Loss for the year | (1,928,870) | (1,928,870) | ||||||
Ending Balance at Nov. 30, 2017 | $ 2,364,400 | 168,550 | 542,397 | (3,322,652) | (247,305) | |||
Ending Balance, Shares at Nov. 30, 2017 | shares | 2,177,715 | 2,177,715 | ||||||
Statement Line Items [Line Items] | ||||||||
Shares issued pursuant to acquisition agreement | $ 415,000 | 415,000 | ||||||
Shares issued pursuant to acquisition agreement, Shares | shares | 66,667 | 66,667 | ||||||
Non-controlling interest acquired | 1,684,615 | 1,684,615 | ||||||
Eliminate capital stock of Liquid Media Group (Canada) Ltd., Shares | shares | (2,244,381) | (2,244,381) | ||||||
Opening balance of Liquid Media Group Ltd., Shares | shares | 560,410 | 560,410 | ||||||
Issuance of shares to former shareholders of Liquid Canada | $ 4,277,319 | 96,303 | 4,373,622 | |||||
Issuance of shares to former shareholders of Liquid Canada, Shares | shares | 1,288,497 | 1,288,497 | ||||||
Shares issued for cash | $ 4,157,760 | 4,157,760 | ||||||
Shares issued for cash, Shares | shares | 800,000 | 800,000 | ||||||
Shares issued for license fees | $ 4,880,639 | $ 4,880,639 | ||||||
Shares issued for license fees, Shares | shares | 888,000 | 888,000 | 888,000 | |||||
Shares issued to settle debt | $ 623,771 | $ 623,771 | ||||||
Shares issued to settle debt, Shares | shares | 113,764 | 113,764 | ||||||
Shares issued for intangible assets | $ 1,469,456 | 1,469,456 | ||||||
Shares issued for intangible assets, Shares | shares | 268,000 | 268,000 | ||||||
Shares issued for commitment | $ 156,000 | (156,000) | ||||||
Shares issued for commitment, Shares | shares | 28,451 | 28,451 | ||||||
Shares issued for share issuance costs | $ (448,145) | 24,774 | (423,371) | |||||
Shares issued for share issuance costs, Shares | shares | 10,000 | 10,000 | ||||||
Shares issued for services | ||||||||
Share issue costs | $ (23,200) | (23,200) | ||||||
Warrants exercised for cash | $ 159,601 | (4,000) | (2,986) | 152,615 | ||||
Warrants exercised for cash, Shares | shares | 52,985 | 52,985 | ||||||
Warrants exercised for shares to be issued | 4,000 | 4,000 | ||||||
Share-based compensation | 111,135 | 111,135 | ||||||
Foreign exchange on translation | 282,082 | 116,810 | 398,892 | |||||
Loss for the year | (7,537,749) | 37,516 | (7,500,233) | |||||
Ending Balance at Nov. 30, 2018 | $ 18,032,601 | 12,550 | 771,623 | 282,082 | (10,860,401) | 1,838,941 | 10,077,396 | |
Ending Balance, Shares at Nov. 30, 2018 | shares | 4,010,108 | 4,010,108 | ||||||
Statement Line Items [Line Items] | ||||||||
Shares issued for license fees | 4,880,639 | |||||||
Shares issued to settle debt | $ 634,175 | 634,175 | ||||||
Shares issued to settle debt, Shares | shares | 159,873 | 159,873 | ||||||
Shares issued for intangible assets | ||||||||
Shares issued for commitment | 137,197 | 137,197 | ||||||
Units issued for conversion of convertible debentures | 2,040,346 | |||||||
Shares issued for services | 73,980 | |||||||
Warrants exercised for cash | $ 368,617 | 368,617 | ||||||
Warrants exercised for cash, Shares | shares | 158,291 | 158,291 | ||||||
Share-based compensation | 1,173,512 | 1,173,512 | ||||||
Foreign exchange on translation | 21,383 | (8,608) | 12,775 | |||||
Loss for the year | (7,581,384) | (43,932) | (7,625,316) | |||||
Ending Balance at Nov. 30, 2019 | $ 21,118,940 | $ 137,197 | $ 2,166,098 | $ 303,465 | $ (18,441,785) | $ 1,786,401 | $ 7,070,316 | |
Ending Balance, Shares at Nov. 30, 2019 | shares | 5,345,661 | 5,345,661 |
NATURE AND CONTINUANCE OF OPERA
NATURE AND CONTINUANCE OF OPERATIONS | 12 Months Ended |
Nov. 30, 2019 | |
Nature And Continuanve Of Operations [Abstract] | |
NATURE AND CONTINUANCE OF OPERATIONS | 1. NATURE AND CONTINUANCE OF OPERATIONS Liquid Media Group Ltd. (“Liquid” or the “Company”), formerly Leading Brands Inc. (“LBIX”), is the parent company of Liquid Media Group (Canada) Ltd. (“Liquid Canada”), formerly Liquid Media Group Ltd. The Company is an entertainment company with a strong portfolio of content IP spanning creative industries. The Company’s mission is to empower storytellers worldwide to develop, produce and distribute content across channels and platforms. On August 9, 2018, the Company announced the successful closing of the proposed business combination with Liquid Canada by way of plan of arrangement under the Business Corporations Act (British Columbia) (the "Arrangement"). Pursuant to the Arrangement, Liquid Canada was acquired by and became a wholly-owned subsidiary of LBIX. As part of the Arrangement, on August 10, 2018, LBIX changed its name to Liquid Media Group Ltd. and Liquid Canada changed its name to Liquid Media Group (Canada) Ltd. At the time of completion of the Arrangement, LBIX had 1,848,980 common shares issued and outstanding which included 1,288,497 common shares issued to former Liquid Canada shareholders, representing 69.69% of the Company’s issued and outstanding shares. Initially, the common shares of the Company issued in connection with the Arrangement were listed on NASDAQ under the ticker symbol “LBIX”. Effective August 10, 2018, the trading symbol of LBIX was changed to “YVR”. Upon closing of the transaction, the shareholders of Liquid Canada owned 69.69% of the common shares of the Company, and as a result, the transaction is considered a reverse acquisition of the Company by Liquid Canada. All previous common shares and warrants were exchanged at a ratio of one share of Liquid Canada for 0.5741 of LBIX (“Conversion Rate”). For accounting purposes, Liquid Canada is considered the acquirer and the Company, the acquiree. Accordingly, the consolidated financial statements are in the name of Liquid Media Group Ltd; however, they are a continuation of the financial statements of Liquid Canada (Note 3). These consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As at November 30, 2019, the Company has generated losses since inception and has an accumulated deficit of $18,441,785 (2018 - $10,860,401). The continued operations of the Company are dependent on its ability to generate future cash flows or obtain additional financing. Management has estimated that it does have sufficient working capital to meet the Company’s liabilities and commitments as they become due for the upcoming 12 months. These material uncertainties cast substantial doubt upon the Company’s ability to continue as a going concern within one year of the approval of these financial statements. There is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Nov. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies used in the preparation of these consolidated financial statements. Statement of compliance These consolidated financial statements, including comparatives, have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and Interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”). Financial instruments On December 1, 2018, the Company adopted IFRS 9 Financial Instruments Financial Instruments: Classification and Measurement The following summarizes the significant changes in IFRS 9 compared to the previous standard: • IFRS 9 uses a single approach to determine whether a financial asset is classified and measured at amortized cost or fair value. The classification and measurement of financial assets is based on the Company’s business models for managing its financial assets and whether the contractual cash flows represent solely payments for principal and interest. The change did not impact the carrying amounts of any of the Company’s financial assets on the transition date. Prior periods were not restated and no material changes resulted from adopting this new standard. •The adoption of the new “expected credit loss” impairment model under IFRS 9, as opposed to an incurred credit loss model under IAS 39, had no impact on the carrying amounts of our financial assets on the transition date. Revenue Recognition On December 1, 2018, the Company adopted IFRS 15, Revenue from Contracts with Customers which replaced IAS 18, Revenue, IAS 11, Construction Contracts, and related interpretations, and establishes a comprehensive framework for determining whether revenue should be recognized, and if so, how much and when revenue should be recognized. The Company has adopted IFRS 15 using the cumulative effect method (without practical expedients), which requires that the effect of initially applying this standard be recognized at the date of initial application, which is December 1, 2018, and that the information for the year ended November 30, 2018 is presented as previously reported. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements, and as a result, there was no adjustment made to deficit on December 1, 2018. Although no adjustments were required in applying IFRS 15 to prior periods, the new standard is expected to impact the manner in which revenue is recognized in the future. Under IFRS 15, revenue is recognized when a customer obtains control of the goods or services. Accounting policies have been updated to reflect the terminology required by IFRS 15, however, the content and the application thereof has not changed. The Company’s main source of revenue continues to be derived from software games; however, due to IFRS 15, the Company is changing its revenue recognition policy in regards to any revenue it may derive from animation production services. The details of the nature of the changes to previous accounting policies in relation to the Company’s various revenue generating arrangements are set out below: Type of service or products Nature, timing of satisfaction of performance obligations, significant payment terms Nature of change in accounting policy Animation production services The Company has determined that for animation production service work, the customer controls the output throughout the production process. Every production is made to the individual customer’s specifications and if the contract is terminated by the customer, the Company is entitled to be reimbursed for any costs incurred to date, and any prepaid commitments made plus the agreed contractual mark up. As a result, revenue from such contracts and the associated costs are recognized over time - i.e. as the project is being produced, prior to it being delivered to the customer. The Company may choose to incur costs in order to secure a contract. Such costs will be capitalized and amortized over the period in which revenue is recognized. The Company previously recognized revenue on a percentage of completion basis over time based on costs incurred to total expected costs, and will continue to do so. In the event that costs to secure a contract are incurred, the policy will be updated to reflect the appropriate treatment of the contract asset. Basis of presentation The consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical costs, except for certain financial assets and liabilities, including derivative instruments that are measured at fair value. The consolidated financial statements are presented in Canadian dollars unless otherwise noted. These consolidated financial statements include the accounts of the Company and its subsidiaries at the end of the reporting period as follows: Incorporation Percentage owned 2019 2018 Liquid Media Group (Canada) Ltd. (“Liquid Canada”) Canada 100% 100% Companies owned by Liquid Canada: Majesco Entertainment Company (“Majesco) USA 51% 51% On January 9, 2018, Liquid Canada acquired 51% of the shares of Majesco Entertainment Company (“Majesco”), a Nevada corporation. The Company is a provider of video game products primarily for the mass-market consumer. (Note 5) All significant intercompany accounts and transactions between the Company and its subsidiaries have been eliminated upon consolidation. Non-controlling interest represents the portion of a subsidiary’s earnings and losses and net assets that is not held by the Company. If losses in a subsidiary applicable to a non-controlling interest exceed the non-controlling interest in the subsidiary’s equity, the excess is allocated to the non-controlling interest except to the extent that the majority has a binding obligation and is able to cover the losses. Use of estimates The preparation of financial statements in conformity with IFRS requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported revenues and expenses during the period. Although management uses historical experience and its best knowledge of the amount, events or actions to form the basis for judgments and estimates, actual results may differ from these estimates. The most significant accounts that require estimates as the basis for determining the stated amounts include the valuation of convertible debentures, the valuation of investments in films and intangible assets including goodwill, the valuation of investments in equity instruments, the valuation of share-based compensation and other equity based payments and derivative liability, and the valuation of expected credit loss. Significant judgements includes the determination of functional currency, assessments over level of control or influence over companies, and the recoverability and measurement of deferred tax assets. Critical judgment exercised in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is as follows: Level of control or influence over companies The accounting for investments in other companies can vary depending on the degree of control and influence over those other companies. Management is required to assess at each reporting date the Company’s control and influence over these other companies. Management has used its judgment to determine which companies are controlled and require consolidation and those which are significantly influenced and require equity accounting. The Company has considered its ownership position in Waterproof Studios Inc. (“Waterproof”) to constitute significant influence up to February 28, 2019 and thereafter does not have the ability to influence the key operating activities of the entity due to ongoing disputes. Accordingly, as of March 1, 2019 the Company has accounted for its investment under fair value through profit or loss (Note 10 and 11). Functional currency The functional currency of the Company and its subsidiaries is the United States dollar (“USD”); however, determination of functional currency may involve certain judgments to determine the primary economic environment which is re-evaluated for each new entity or if conditions change. The Company’s functional currency changed from the Canadian dollar (“CAD”) on September 1, 2018 as a result of the Company being listed on the Nasdaq and management determining that all future financings will be completed in USD. Income taxes In assessing the probability of realizing income tax assets, management makes estimates related to expectation of future taxable income, applicable tax opportunities, expected timing of reversals of existing temporary differences and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. In making its assessments, management gives additional weight to positive and negative evidence that can be objectively verified. Information about assumptions and estimation uncertainties that have a significant risk of resulting in material adjustments are as follows: Valuation of share-based compensation, derivatives, and convertible features The Company uses the Black-Scholes Option Pricing Model for valuation of share-based compensation and other equity based payments. Option pricing models require the input of subjective assumptions including expected price volatility, interest rate, and forfeiture rate. Changes in the input assumptions can materially affect the fair value estimate and the Company’s earnings and equity reserves. Valuation of intangible assets including goodwill Goodwill and intangible assets are tested for impairment at each reporting date. Management first reviews qualitative factors in determining if an impairment needs to be recorded. Quantitative factors are then used to calculate the amount of impairment, if needed. Goodwill and intangibles resulted from a business acquisition. Intangibles were valued based on estimated discounted cash flows. Valuation of investment in equity instrument The Company values its equity instruments in private companies at fair value at each reporting date. The determination of fair value is based on estimates made by management on the expected earnings before income, taxes, and amortization multiplied by a reasonable factor for the appropriate industry applicable to the private company. Valuation of expected credit loss Loans receivables are assessed for an estimated credit loss at each reporting date. The estimated loss is determined based on management’s knowledge of the debtor and their ability to repay the loan. As the current debtors’ are private entities, management must rely on assertions provided to them from the debtor to make their estimates. Valuation of convertible debentures The equity portion of the convertible debenture is calculated using a discounted cash flow method which requires management to make an estimate on an appropriate discount rate. Foreign currency translation The functional currency of an entity is the currency of the primary economic environment in which the entity operates. The functional currency of the Company and Liquid Canada changed from the CAD to the USD dollar effective September 1, 2018. The functional currency of Majesco is the USD. The functional currency of Waterproof is the CAD. The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates Transactions in currencies other than USD are recorded at exchange rates prevailing on the dates of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the period end exchange rate while non-monetary assets and liabilities in foreign currencies are translated at historical rates. Revenues and expenses are translated at the average exchange rates approximating those in effect during the reporting period. For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company’s USD operations are translated into CAD at the exchange rate at the reporting date. The income and expenses are translated using average rate. Foreign currency differences that arise on translation for consolidation purposes are recognized in other comprehensive income (loss). Financial instruments Financial assets On initial recognition, financial assets are recognized at fair value and are subsequently classified and measured at: (i) amortized cost; (ii) fair value through other comprehensive income (“FVOCI”); or (iii) fair value through profit or loss (“FVTPL”). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial asset is measured at fair value net of transaction costs that are directly attributable to its acquisition except for financial assets at FVTPL where transaction costs are expensed. All financial assets not classified and measured at amortized cost or FVOCI are measured at FVTPL. On initial recognition of an equity instrument that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. The classification determines the method by which the financial assets are carried on the statement of financial position subsequent to inception and how changes in value are recorded. Receivables and loans receivable are measured at amortized cost with subsequent impairments recognized in profit or loss. Cash, restricted cash, and investment in equity instruments are classified as FVTPL. Impairment An ‘expected credit loss’ impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. For the years presented, the Company did not record an expected credit loss on its accounts receivable; however, an expected credit loss of $145,431 was recorded on its loans receivable as at November 30, 2019 (2018 - $Nil). Financial liabilities Financial liabilities are designated as either: (i) fair value through profit or loss; or (ii) other financial liabilities. All financial liabilities are classified and subsequently measured at amortized cost except for financial liabilities at FVTPL. The classification determines the method by which the financial liabilities are carried on the statement of financial position subsequent to inception and how changes in value are recorded. Accounts payable and accrued liabilities, due to related parties, loans payable, and convertible debentures are classified as other financial liabilities and carried on the statement of financial position at amortized cost. Derivative liabilities are measured at FVTPL. Investment in associates The Company’s investment in associates was accounted for using the equity method of accounting. An associate is an entity in which the Company has significant influence and which is neither a subsidiary nor a joint venture. Under the equity method, the investment in the associate is carried in the statement of financial position at cost. The statement of loss reflects the share of the results of operations of the associate until significant influence ceases. Where there has been a change recognized directly in the equity of the associate, the Company recognizes its share of any changes and discloses this, when applicable, in the statement of changes in shareholders’ equity (deficiency). Profits and losses resulting from transactions between the Company and the associate are eliminated to the extent of the interest in the associate. Associates are those entities in which the Company has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the Company holds between 20 and 50 percent of the voting power of another entity. Investments in associates are accounted for using the equity method (equity accounted investees) and are recognized initially at cost. The financial statements include the Company’s share of the income and expenses and equity movements of equity accounted investees, after adjustments to align the accounting policies with those of the Company from the date that significant influence or joint control commences, until the date that significant influence or joint control ceases. When the Company’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to nil, and the recognition of further losses is discontinued, except to the extent that the Company has obligations, or has made payments on behalf of the investee. The Company used the equity method of accounting for its 49% investment in Waterproof until significant influence ceased on March 1, 2019 and for its 50% investment in Household Pests (Note 10). Equipment Equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in profit or loss. Assets under construction are not depreciated until available for their intended use. Depreciation is charged over the estimated useful lives using the declining balance method as follows: Computer equipment 30% Intangible assets The Company has intangible assets from business acquisitions and development of gaming content. The amortization method, useful life and residual values are assessed annually and the assets are tested for impairment annually, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Amortization expense is recorded on a straight-line basis beginning with the month the corresponding assets are available for use and over the estimated useful lives provided below: Video game catalogues 15 years Brands indefinite Upon retirement or disposal, the cost of the asset disposed of and the related accumulated amortization are removed from the accounts and any gain or loss is reflected in profit and loss. Expenditures for repairs and maintenance are expensed as incurred. Video game catalogues The video game catalogues are made up of a diverse variety of games, ranging in age and popularity. The catalogues are unique due to the diverse nature of the products within the catalogues, making it difficult to assign a useful life. The useful life of 15 years represents management’s view of the expected period over which the Company expects benefits from the acquired gaming content packaged as catalogues. The election of this useful life is supported by internal game titles still producing revenue at this age. Video game development expenditures, including the cost of material, direct labour, and other direct costs are recognized as an intangible asset when the following recognition requirements are met: • the development costs can be measured reliably; • the project is technically and commercially feasible; • the Group intends to and has sufficient resources to complete the project; • the Group has the ability to use or sell the software, and • the software will generate probable future economic benefits. Video games being developed are amortized once development is complete and the game starts to generate income. Brand Through the acquisition of Majesco (Note 5), the Company acquired the “Majesco Entertainment” brand which was determined to have an indefinite life. Goodwill Goodwill is deemed to have an indefinite life and is not amortized but is subject to, at a minimum, annual impairment tests. The Company assesses the impairment of goodwill on an annual basis or whenever events or changes in circumstances indicate that the fair value is less than its carrying value. Impairment is tested at the cost center level by comparing the fair value of a cost center with its carrying amount including goodwill. If the carrying amount of the cost center exceeds its fair value, goodwill of the cost center is considered impaired and the second step of the test is performed to determine the amount of impairment loss, if any. Impairment of non-financial assets The carrying amount of the Company’s non-financial assets is reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in profit or loss. The recoverable amount of assets is the greater of an asset’s fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs. An impairment loss is only reversed if there is an indication that the impairment loss may no longer exist and there has been a change in the estimates used to determine the recoverable amount, however, not to an amount higher than the carrying amount that would have been determined had no impairment loss been recognized in previous years. Assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment. Business combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value, and the amount of any non-controlling interest in the acquiree. For each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable new assets. Acquisition costs incurred are expensed. Derivative liability Share purchase warrants outstanding during the years ended November 30, 2019 and 2018 met the criteria of a derivative instrument liability because they were exercisable in a currency other than the functional currency of the Company and thus did not meet the “fixed-for-fixed” criteria. As a result, the Company was required to separately account for the warrants as a derivative instrument liability recorded at fair value and marked-to-market each period with the changes in the fair value each period charged or credited to loss. Changes in fair value are recognized as gain/loss on derivative liability until the warrants are exercised or expire. Convertible debentures The Company’s convertible debenture was classified as a liability, less the portion relating to the conversion feature which is classified as a component of equity. As a result, the recorded liability to repay the convertible notes is lower than its face value. The liability was initially recorded at fair value and subsequently at amortized cost using the effective interest rate method; the liability is accreted to the face value over the term of the convertible debenture. Share capital Financial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Company’s common shares, share warrants, and options are classified as equity instruments. Incremental costs directly attributable to the issue of new shares or options are recognized as a deduction from equity, net of tax. Valuation of equity units issued in private placements: The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the more easily measurable component based on fair value and then the residual value, if any, to the less easily measurable component. The fair value of the common shares issued in private placements is determined to be the more easily measurable component as they are valued at their fair value which is determined by the closing price on the issuance date. The remaining balance, if any, is allocated to the attached warrants. Any fair value attributed to the warrants is recorded to reserves. Loss per share Basic and diluted loss per share is computed by dividing net loss available to common shareholders by the weighted-average number of shares outstanding during the reporting period. If applicable, diluted income per share is computed similar to basic income per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of share options, warrants, and convertible debentures, if dilutive. The number of additional shares is calculated by assuming that outstanding share options and warrants were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting periods. For the years presented, this calculation proved to be anti-dilutive. Share-based compensation The Company grants stock options to buy common shares of the Company to directors, officers and consultants. All share-based payments made to employees and non-employees are measured and recognized using the Black-Scholes option pricing model. For employees, the fair value of the options is measured at grant date. For non-employees, the fair value of the options is measured on the earlier of the date at which the counterparty performance is complete, the date the performance commitment is reached, or the date at which the equity instruments are granted if they are fully vested and non-forfeitable. Share-based payments to non-employees are measured at the fair value of the goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. Stock options that vest over time are recognized using the graded vesting method. Share based compensation is recognized as an expense with a corresponding increase in reserves. At each financial reporting period, the amount recognized as expense is adjusted to reflect the number of share options expected to vest. If and when the stock options are ultimately exercised, the applicable amounts of reserves are transferred to share capital. Where the terms of a stock option are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification which increases the total fair value of the stock-based compensation arrangement or is otherwise beneficial to the employee as measured at the date of modification over the remaining vesting period. Revenue recognition Animation production services Revenue from animation production services provided is recognized when the services have been provided and control of the deliverable has been transferred to the customer. Revenue collected prior to it being earned is recorded as deferred revenue and recognized as the related services are provided. Management estimates the pace of revenue recognition based on contract milestones and determination of when it considered the revenue to be earned. The Company’s arrangements with customers are evidenced by contracts with customers. Any costs incurred to secure a contract will be capitalized and amortized over the period in which the revenue is recognized. Software games Revenue from sales of interactive software games on game consoles and PCs are recognized as revenue when games are purchased by a customer. Sales of the Company’s games are made by third party gaming platform companies pursuant to license agreements, and these gaming platform companies retain an agreed upon portion of sales as fees. The Company reports revenues related to these arrangements net of the fees retained by the gaming platform companies, as the Company has determined that the gaming platform companies are considered the primary obligors to the end consumers for the sale of the games. Royalties and licenses Royalty-based obligations with content licensors are either paid in advance and capitalized as prepaid royalties or are accrued as incurred and subsequently paid. These royalty-based obligations are generally expensed to cost of sales at the contractual rate based on a percentage of the revenue earned. Income taxes Current income tax Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the country where the Company operates and generates taxable income. Deferred income tax Deferred income tax is provided for based on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. Current income and deferred tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Accounting pronouncements not yet adopted A number of new standards, amendments to standards and interpretations applicable to the Company are not yet effective for the year ended November 30, 2019 and have not been applied in preparing these consolidated financial statements. c) IFRS 16 – Leases: specifies how an IFRS reporter will recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognize assets and li |
REVERSE ACQUISITION
REVERSE ACQUISITION | 12 Months Ended |
Nov. 30, 2019 | |
Reverse Acquisition [Abstract] | |
REVERSE ACQUISITION | 3. REVERSE ACQUISITION As described in Note 1, on August 9, 2018, pursuant to an Arrangement between LBIX and Liquid Canada, LBIX acquired all of the issued and outstanding shares of Liquid Canada. The former shareholders of Liquid Canada received an aggregate of 1,288,497 common shares of LBIX for all of the outstanding common shares of Liquid Canada. LBIX shareholders retained 560,410 common shares on completion of the transaction and the former LBIX stock option holders were granted 117,000 stock options. The transaction constituted a reverse acquisition of LBIX and had been accounted for as a reverse acquisition transaction in accordance with the guidance provided under IFRS 2, Share-based Payment Business Combinations Business Combination For accounting purposes, Liquid Canada was treated as the accounting parent company (legal subsidiary) and LBIX had been treated as the accounting subsidiary (legal parent) in these consolidated financial statements. As Liquid Canada was deemed to be the acquirer for accounting purposes, its assets, liabilities and operations since incorporation are included in these consolidated financial statements at their historical carrying value. The results of operations of LBIX are included in these consolidated financial statements from the date of the reverse acquisition of August 9, 2018. The following represents management's estimate of the fair value of the LBIX net assets acquired as at August 9, 2018 as a result of the reverse acquisition and is subject to final valuation adjustments. Total $ Cost of acquisition: Shares retained by public company shareholders - 560,410 shares at US$5.85 x 1.3047 4,277,319 Fair value of stock options 96,303 4,373,622 Allocated as follows: Cash 4,769 Restricted cash 574,510 Prepaid expenses 37,132 Receivables 124,561 Liabilities (497,907) 243,065 Allocated to listing expense 4,130,557 4,373,622 Stock options granted were valued using the Black Scholes model using the following assumptions: risk free rate of 2.09%, volatility of 127%, dividend yield of $Nil, and expected life of 0.94 years. Within the liabilities assumed as part of the Arrangement, the Company has $nil of liabilities attributable to discontinued operations of LBIX as at November 30, 2019 (2018 - $250,000) as part of the disposal of LBIX’s legacy beverage assets. Upon consolidation, these liabilities were included in accounts payable and accrued liabilities. During the year ended November 30, 2019, the Company incurred costs of $192,601 (2018 - $359,590; 2017 - $362,655) related to the reverse acquisition that were recorded as project investigation costs. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Nov. 30, 2019 | |
Restricted Cash And Cash Equivalent Abstract | |
RESTRICTED CASH | 4. RESTRICTED CASH As at November 30, 2019, the Company held $672,663 (US$506,179) in restricted cash (2018 - $574,510) as follows: a) $574,510 of restricted cash was held by the Company’s legal counsel as at November 30, 2018, in a trust account pursuant to the terms of an escrow agreement arising from the disposition of LBIX’s legacy beverage business. These funds were held aside for the purpose of existing claims, excluded liabilities and financial lease liabilities during the escrow period as specified in the terms of the sale agreement in relation to LBIX’s legacy beverage business. During the year ended November 30, 2019, the funds were released. b) As at November 30, 2019, the Company had a $672,663 (US$506,179) deposit certificate which earns interest at 1.49% per annum and matures and renews monthly. The deposit certificate has been assigned as security to City National Bank for a revolving bank loan (Note 16). |
ACQUISITION OF MAJESCO ENTERTAI
ACQUISITION OF MAJESCO ENTERTAINMENT COMPANY | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of detailed information about business combination [abstract] | |
ACQUISITION OF MAJESCO ENTERTAINMENT COMPANY | 5. ACQUISITION OF MAJESCO ENTERTAINMENT COMPANY On January 9, 2018, the Company acquired 51% of the issued and outstanding shares of Majesco Entertainment Company, a U.S. corporation. As consideration, the Company issued 66,667 common shares with a value of $415,000 and is required to pay cash consideration of up to US$1,000,000 (paid US$350,000 during the year ended November 30, 2019 (2018 - US$150,000) and accrued $664,450 (US$500,000) as at November 30, 2019 (2018 – $1,190,476 (US$850,000))). In connection with the acquisition of Majesco, the Company agreed to pay a finder’s fee of 5% of the total purchase price for a total fee of $99,668 (US$75,000). As at November 30, 2019, the Company owes $33,223 (US$25,000) (2018 - $59,854 (US$45,000)) which is included in accounts payable. The acquisition has been accounted for using the acquisition method pursuant to IFRS 3, Business Combinations Total $ Consideration: Common shares 415,000 Estimated cash payment on acquisition 1,245,000 Finder’s fee 93,375 Total consideration provided 1,753,375 Allocated as follows: Cash 11,060 Accounts payable (67,320) Due from former shareholder 56,260 Intangible assets – brand 103,335 Goodwill 3,356,355 Deferred income taxes (21,700) Non-controlling interest (Note 20) (1,684,615) 1,753,375 The intangible assets - brand include the Majesco Entertainment brand. |
RECEIVABLES
RECEIVABLES | 12 Months Ended |
Nov. 30, 2019 | |
Trade and other receivables [abstract] | |
RECEIVABLES | 6. RECEIVABLES 2019 2018 $ $ Accounts receivable 25,299 151,362 Sales tax receivable 14,293 30,705 Other receivables 658,769 - 698,361 182,067 During the year ended November 30, 2018, the Company agreed to settle a developer royalty receivable of $70,108 (US$52,707) for $33,254 (US$25,000). The settlement resulted in a loss of $36,854 which is included in gain (loss) on debt settlements. |
PREPAIDS
PREPAIDS | 12 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
PREPAIDS | 7. PREPAIDS As at November 30, 2019, prepaids includes $208,066 (US$156,570) for a marketing campaign that is being expensed as costs are incurred. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended |
Nov. 30, 2019 | |
Loans Receivable [Abstract] | |
LOANS RECEIVABLE | 8. LOANS RECEIVABLE Current amounts As at November 30, 2019, the current loans receivable including accrued interest is as follows: Waterproof Participant Games Installment Entertainment Total $ $ $ $ Balance November 30, 2017 100,399 172,135 109,357 381,891 Accrued interest revenue 8,116 27,671 17,580 53,367 Repayments received (3,963) - - (3,963) Balance November 30, 2018 104,552 199,806 126,937 431,295 Reclassified as long-term - (199,806) (126,937) (326,743) Accrued interest revenue 8,137 - - 8,137 Repayments received (17,807) - - (17,807) Balance November 30, 2019 94,882 - - 94,882 During fiscal 2016, the Company entered into a revolving credit facility agreement with Waterproof and advanced $100,000 to Waterproof. The revolving credit facility is unsecured, bears interest at 8% per annum and was due on July 21, 2017. If there is a default or an event of default has occurred and is continuing, all amounts outstanding shall bear interest, after as well as before judgment, at a rate per annum equal to 2% plus the applicable rate. Interest is payable on the first business day of each month. As at November 30, 2019, the Company had accrued interest receivable of $11,651 (2018 - $11,322). Subsequent to November 30, 2019, the Company received payment in full. Long-term amounts Loans receivable are classified as long-term when management has determined that they will not be receiving payment on these loans within the next twelve months. As at November 30, 2019, the long-term loans receivable including accrued interest are as follows: Participant Games Installment Entertainment Total $ $ $ Balance November 30, 2018 - - - Reclassified from current 199,806 126,937 326,743 Accrued interest revenue 32,120 20,405 52,525 Expected credit loss (115,963) (29,468) (145,431) Balance November 30, 2019 115,963 117,874 233,837 During fiscal 2017, the Company entered into a subordinated convertible note with Participant Games Inc. in the amount of $150,000. The convertible note is unsecured, bears interest at 15% per annum and was due on demand on or before December 21, 2017. The loan was convertible into shares, at any time prior to December 21, 2018 and accordingly the value of the conversion feature remaining from the convertibility feature was nominal as at November 30, 2018. As at November 30, 2019, the Company has accrued interest receivable of $81,926 (2018 - $49,806) and has recorded an allowance for credit loss of $115,963 (2018 - $Nil) as the note remains unpaid. During fiscal 2017, the Company entered into a convertible note with Installment Entertainment Inc. in the amount of $100,000. The convertible note is unsecured, bears interest at 15% per annum and was payable on demand on or before April 21, 2018. The loan was convertible into shares, at any time prior to April 21, 2018. As at November 30, 2019, the Company has accrued interest receivable of $47,342 (2018 - $26,937) and has recorded an allowance for credit loss of $29,468 (2018 - $Nil) as the note remains unpaid. |
LICENSES
LICENSES | 12 Months Ended |
Nov. 30, 2019 | |
Licenses [Abstract] | |
LICENSES | 9. LICENSES Licenses were acquired during the year ended November 30, 2018 through the issuance of 888,000 common shares valued at $4,880,639 which are being amortized over the term of the corresponding agreements ranging from one year to ten years. During the year ended November 30, 2019, amortization, included in cost of sales, amounted to $1,819,596 (2018 - $603,718). Additionally, one license with an unamortized balance of $717,125 was written off at November 30, 2019. The currency translation adjustment at November 30, 2019 was $100,636 (2018 - $105,677). |
INVESTMENT IN EQUITY INSTRUMENT
INVESTMENT IN EQUITY INSTRUMENTS | 12 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
INVESTMENT IN EQUITY INSTRUMENTS | 11. INVESTMENT IN EQUITY INSTRUMENTS Until February 28, 2019, the Company accounted for the investment in Waterproof (Note 10) using the equity method resulting in a carrying value of $587,274 at March 1, 2019, however, the Company no longer exerts significant influence over Waterproof’s operating activities resulting in the investment being reclassified as FVTPL. The fair value as at March 1, 2019 was determined to be $1,649,362 resulting in a gain of $1,062,088 on derecognition from the equity accounting carrying value. As at November 30, 2019, the value of Waterproof’s common shares were estimated to be $1,551,324 resulting in an unrealized gain on equity instruments of $953,961. The currency translation adjustment as at November 30, 2019 was $10,089. |
INVESTMENT IN ASSOCIATE
INVESTMENT IN ASSOCIATE | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of associates [abstract] | |
INVESTMENT IN ASSOCIATE | 10. INVESTMENT IN ASSOCIATES Waterproof On April 15, 2015, the Company acquired a 49% interest in Waterproof by paying $475,000 and issuing 100,000 common shares with a fair value of $125,001. The Company also issued 40,000 common shares as a finder’s fee with a fair value of $50,000 during the year ended November 30, 2015. The Company owns 49% of Waterproof and previously held significant influence over the investment causing the Company to account for its investment using the equity method. As at March 1, 2019, the Company no longer had the ability to exert significant influence over Waterproof’s operating activities due to ongoing disputes, therefore causing the Company to reclassify the investment as FVTPL (Note 11). The following table is a reconciliation of the investment in Waterproof: 2019 2018 2017 $ $ $ Balance, beginning of year 397,629 509,857 534,893 Share of profit (loss) of equity investment 195,726 (119,654) (25,036) Currency translation adjustment (6,081) 7,426 - Derecognition to investment in equity instruments (Note 11) (587,274) - - Balance, end of year - 397,629 509,857 The following table summarizes Waterproof’s statements of financial position for the comparative year: 2018 $ Current assets 563,806 Non-current assets 255,904 Current liabilities (678,258) Non-current liabilities (36,787) Net assets 104,665 The following table summarizes Waterproof’s revenue, expenses and losses for the comparative years: 2018 2017 $ $ Revenue 4,999,395 2,358,268 Cost of sales (3,951,861) (1,768,559) Expenses (1,291,786) (640,815) Loss for the year (244,252) (51,106) Household Pests The Company held a 50% interest in Household Pests Holdings Inc. (“Household Pests”) and accounted for its investment as a joint operation as the Company did not have the ability to control the key operating activities of the entity. On May 3, 2017, Household Pests entered into a letter of understanding with Household Pests, LLC in connection with the development, financing, production and exploitation of the proposed animated feature film currently entitled Household Pests (the “Film”). On August 31, 2017, Household Pests entered in to an option agreement with Pigmental, LLC (“Owner”) with respect to the purchase of all rights, titles, and interests in the Animation Work Purchase Agreement dated as of July 2, 2014 by and between Sergio Animation Studios, S.L. and the Owner for a sum of US$625,000. During the year ended November 30, 2017, the Company paid $125,500 (US$100,000) as acquisition costs and incurred $181,872 in deferred costs. As at November 30, 2018, Household Pests let the options lapse and as such, management wrote-off its $310,484 investment in Household Pests. |
EQUIPMENT
EQUIPMENT | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure Equipment Abstract | |
EQUIPMENT | 12. EQUIPMENT Computer Equipment $ Cost: At November 30, 2018 - Additions 125,143 Net exchange differences (277) At November 30, 2019 124,866 Amortization: At November 30, 2018 - Additions 1,553 Net exchange differences 8 At November 30, 2019 1,561 Net book value: At November 30, 2018 - At November 30, 2019 123,305 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | 13. INTANGIBLE ASSETS Video Game Catalogues Brands Total $ $ $ Cost: At November 30, 2017 - - - Additions - shares 1,469,456 103,335 1,572,791 Additions - paid or accrued 196,160 - 196,160 Write-offs (116,352) - (116,352) Net exchange differences 39,994 1,951 41,945 At November 30, 2018 1,589,258 105,286 1,694,544 Additions - paid or accrued 133,356 - 133,356 Net exchange differences (7,053) 5,013 (2,040) At November 30, 2019 1,715,561 110,299 1,825,860 Amortization: At November 30, 2017 - - - Additions 17,722 - 17,722 At November 30, 2018 17,722 - 17,722 Additions 100,202 - 100,202 Net exchange differences (23) - (23) At November 30, 2019 117,901 - 117,901 Net book value: At November 30, 2018 1,571,536 105,286 1,676,822 At November 30, 2019 1,597,660 110,299 1,707,959 As at November 30, 2019, included in video game catalogues is $212,625 (2018 - $79,808) of development costs which the Company has not begun amortizing. Brands were acquired during the year ended November 30, 2018 pursuant to the acquisition of Majesco (Note 5). |
GOODWILL
GOODWILL | 12 Months Ended |
Nov. 30, 2019 | |
Goodwill [Abstract] | |
GOODWILL | 14. GOODWILL Goodwill of $3,356,355 was acquired during the year ended November 30, 2018 pursuant to the acquisition of Majesco (Note 5). The currency translation adjustment as at November 30, 2019 was $226,193 (2018 - $229,528). Goodwill is tested for impairment annually or more frequently if events or circumstances indicate that the asset might be impaired. At November 30, 2019, the Company performed its impairment review of goodwill by comparing each cost center’s fair value to the net book value including goodwill. The Company has determined that it has one cost center: Majesco. The fair value of the cost center was determined by management based on a valuation using the income approach. The income approach uses future projections of cash flows from the cost center and includes, among other estimates, projections of future revenue and operating expenses, market supply and demand, projected capital spending and an assumption of the weighted average cost of capital. Management’s evaluation of fair values includes analysis based on the future cash flows generated by the underlying assets, estimated trends and other relevant determinants of fair value for these assets. Management has determined that no events have occurred subsequent to the date of the assessment that would require a further impairment review of goodwill. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Nov. 30, 2019 | |
Trade and other current payables [abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 15. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2019 2018 $ $ Accounts payable 2,845,308 1,084,852 Accounts payable on legacy beverage assets - 250,000 Accrued liabilities 821,014 1,277,345 Payroll taxes payable 474 842 Sales tax payable 2,911 - Developer royalties payable - 84,332 Payable on Majesco acquisition (Note 5) 697,674 1,190,476 4,367,381 3,887,847 During the year ended November 30, 2019, the Company issued 159,873 (2018 - $81,937) common shares valued at $634,175 (2018 - $449,291) to settle accounts payable of $535,688 (2018 - $595,045) resulting in a loss of $98,487 (2018 – gain of $145,764) which is included in gain (loss) on settlement of debt. |
LOANS PAYABLE
LOANS PAYABLE | 12 Months Ended |
Nov. 30, 2019 | |
Loan Payable [Abstract] | |
LOANS PAYABLE | 16. LOANS PAYABLE A summary of loans payable balances and transactions is as follows: Related party Third party Credit Facility Bank Loan Total $ $ $ $ $ Balance, November 30, 2017 291,368 2,000 750,000 - 1,043,368 Advance 37,582 167,500 - - 205,082 Repayment - cash (50,500) (27,500) - - (78,000) Repayment - shares (106,247) (130,000) - - (236,247) Balance, November 30, 2018 172,203 12,000 750,000 - 934,203 Advance - 150,000 - 662,933 812,933 Repayment - cash (172,203) (137,000) - - (309,203) Balance, November 30, 2019 - 25,000 750,000 662,933 1,437,933 Related party loans Related party loans consist of amounts advanced by directors or companies controlled by them. Several of the loans have been secured by assets of the Company with due dates ranging from demand loans to periods of one year and interest rates ranging from 0.0% to 8.0% per annum. As at November 30, 2019, all loans have been paid in full. Interest of $39,747 (2018 - $42,911) remains outstanding and is included in accounts payable and accrued liabilities. Third party loans Third party loans included loans secured by assets of the Company with due dates ranging from demand loans to periods of one year and interest rates ranging from 0.0% to 14.4% per annum. As at November 30, 2019, the amount outstanding is due on demand and incurs interest of 14.4% per annum. Interest of $2,192 (2018 - $1,945) remains outstanding and is included in accounts payable and accrued liabilities. Credit facility In fiscal 2016 a $2,500,000 Credit facility was secured by assets of the Company under a general security agreement with a due date of November 30, 2018 and an interest rate of 14.4% per annum. A fee of $60,000 was settled through the issuance of shares during the year ended November 30, 2017. The Company repaid $1,750,000 of principal and $147,945 of interest during the year ended November 30, 2017. In June 2018, a new lender acquired the remaining $750,000 loan and under new terms, the loan was due on August 20, 2018. The new lender obtained a Limited Power of Attorney over the Company’s 49% interest in Waterproof (“Waterproof POA”). In December 2018, the lender registered a general security agreement over all the Company’s current and future assets. In November 2019, the new lender signed a Forebearance Agreement which extended the maturity date of the loan to November 30, 2020 and required the Company to make quarterly payments of $250,000 commencing on March 31, 2020 until the principal and interest on the loan have been paid in full. In accordance with the Forebarance Agreement, the Company issued 215,000 treasury shares of the Company as security for the loan which will be transferred to the lender upon any default of the loan. Additionally, the new lender released the Waterproof POA and amended their general security agreement to exclude the Company’s investment in Waterproof. Interest of $289,282 (2018 - $181,282) remains outstanding and is included in accounts payable and accrued liabilities. Bank loan In May 2019, the Company entered into a revolving note for US$500,000 with City National Bank which bears interest at 3.49% per annum and is secured by a deposit certificate of US$500,000 (Note 4(b)). As at November 30, 2019, the Company had received advances of $662,933 (US$498,857) against this loan. |
CONVERTIBLE DEBENTURES
CONVERTIBLE DEBENTURES | 12 Months Ended |
Nov. 30, 2019 | |
Notes to Financial Statements | |
CONVERTIBLE DEBENTURES | 17. CONVERTIBLE DEBENTURES Liability component Equity component Total $ $ $ Balance, November 30, 2018 - - - Proceeds 2,930,477 595,991 3,526,468 Deferred income tax liability - (160,917) (160,917) Interest expense and accretion 259,885 - 259,885 Settlement of convertible debentures (1,795,455) (244,890) (2,040,345) Reallocation of interest to accounts payable (25,156) - (25,156) Currency translation adjustment 18,651 - 18,651 Balance, November 30, 2019 1,388,402 190,184 1,578,586 On February 28, 2019, the Company closed its private placement offering of unsecured convertible debentures raising $3,526,468 (US$2,678,000). Each debenture will mature two years from closing, will bear interest at 2% per annum, and can be converted into units at a price of US$1.50 per unit. Each unit will consist of one common share and one share purchase warrant with each warrant entitling the holder to acquire one common share of the Company for US$1.75 up to February 26, 2021. For accounting purposes, the convertible debentures are separated into their liability and equity components by first valuing the liability component. The fair value of the liability component at the time of issue was calculated as the discounted cash flows for the convertible debentures assuming a 12% discount rate, which was the estimated rate for a similar debenture without a conversion feature. The fair value of the equity component (conversion feature) was determined at the time of issue as the difference between the face value of the convertible debentures and the fair value of the liability component, less a deferred income tax adjustment to reflect the book to tax difference in value of the convertible debentures at the time of issuance. As the Company has excess tax assets to offset the deferred tax liability, which was created from the book to tax difference in value of the convertible debentures, the deferred tax liability was reversed, resulting in a deferred tax recovery of $160,917. During the year ended November 30, 2019, net debentures of $1,795,455 (US$1,133,761) were converted into 1,000,167 units of the Company of which $30,779 was allocated to reserves relating to the value of the warrants issued. As a result, the Company transferred $244,890 from reserves to share capital representing the proportionate balance of the unamortized equity component. Interest and accretion expense for the year ended November 30, 2019 was $259,885. |
SHARE CAPITAL AND RESERVES
SHARE CAPITAL AND RESERVES | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of reserves within equity [abstract] | |
SHARE CAPITAL AND RESERVES | 18. SHARE CAPITAL AND RESERVES Authorized share capital The Company is authorized to issue 500,000,000 common shares without par value. The Company is authorized to issue the following preferred shares: Preferred shares without par value 9,999,900 Series “A” preferred shares 1,000,000 Series “B” preferred shares 100 Series “C” preferred shares 1,000,000 Series “D” preferred shares 4,000,000 Series “E” preferred shares 4,000,000 20,000,000 Issued share capital Common shares During the year ended November 30, 2019: a) On February 28, 2019, the Company issued 113,334 common shares valued at $391,013 to settle debt of $335,792 resulting in a loss of $55,221 which is included in loss on debt settlements. b) On April 30, 2019, the Company issued 46,539 common shares valued at $243,162 to settle debt of $199,896 resulting in a loss of $43,266 which is included in loss on debt settlements. c) On April 30, 2019, the Company issued 17,222 common shares valued at $73,980 to various consultants of the Company for consulting and public relations services provided to the Company. d) In November 2019, the Company issued 158,291 common shares valued at $368,617 for the exercise of warrants with an exercise price of US$1.75. e) During the year, the Company issued 1,000,167 units on the conversion of $1,795,455 (US$1,133,761) worth of convertible debentures (Note 17). As a result, the Company transferred $244,890 from reserves to share capital representing the proportionate balance of the unamortized equity component. Additionally, the Company allocated $30,779 to reserves representing the value of the warrants issued. Each unit comprised of one common share and one warrant with each warrant entitling the holder to acquire one common share of the Company for US$1.75 up to February 28, 2021. During the year ended November 30, 2018: a) On January 9, 2018, the Company issued 66,667 common shares valued at $415,000 pursuant to the December 12, 2017 share purchase agreement for Majesco (Note 5). b) On August 9, 2018, a reverse acquisition transaction was completed whereby LBIX issued 1,288,497 common shares valued at $4,277,319 in exchange for all of the issued and outstanding shares of Liquid Canada (Note 3). Warrants held by Liquid Canada were transferred to the Company as part of the Arrangement valued at $96,303. c) On October 15, 2018, the Company completed a brokered private placement which consisted of the issuance of 800,000 units at a price of US$4.00 per unit for gross proceeds of $4,157,760 (US$3,200,000). Each unit consisted of one common share and one share purchase warrant exercisable for a three-year period at an exercise price of US$5.00 per warrant. The Company incurred agents’ fees of $410,218, legal fees of $36,353, issued 10,000 common shares valued at $41,531 to an agent, and issued 8,000 agents warrants valued at $24,774 in connection with the closing of this private placement. d) On October 15, 2018 the Company issued 888,000 common shares valued at $4,880,639 for licences (Note 9). e) On October 15, 2018, the Company issued 113,764 common shares valued at $623,771 to settle debt of $833,487 resulting in a gain of $209,716 which is included in gain on debt settlements and issued 28,451 common shares valued at $156,000 for a commitment to issue shares. f) On October 15, 2018, the Company issued 268,000 common shares valued at $1,469,456 for the purchase of video games in connection with two separate purchase agreements (Note 13). g) During the year, the Company issued 51,148 common shares in connection with the exercise of share purchase warrants for proceeds of $154,320. As a result, the Company transferred $23,854 representing the fair value of the exercised share purchase warrants from reserves to share capital. h) During the year, the Company issued 1,837 common shares in connection with the exercise of 1,837 agents’ warrants at $1.25 per warrant for proceeds of $2,296. As a result, the Company transferred $2,985 representing the fair value of the exercised share purchase warrants from reserves to share capital. During the year ended November 30, 2017: a) On March 14, 2017, the Company issued 117,750 units valued at $353,250 to settle debt. Each unit was comprised of one common share and 0.287 of a share purchase warrant of the Company. Each whole warrant entitles the holder to purchase one additional common share at a price of $3.75 per share for a term of five years from closing. b) On April 6, 2017, the Company closed a non-brokered private placement and issued 89,833 units at a price of $3.00 per unit for gross proceeds of $269,500 of which $16,500 was settled for debt. Each unit consisted of one common share and 0.287 of a share purchase warrant of the Company. Each whole warrant entitles the holder to purchase one additional common share at a price of $3.75 per share for a term of five years from closing. c) On May 19, 2017, the Company issued 22,854 common shares to settle debts totaling $69,100. d) On September 6, 2017, the Company closed a non-brokered private placement and issued 73,291 common shares at $6.15 per share to settle debt totaling $204,123 and for cash totaling $246,615. A finders’ fee of 4,000 shares was issued with a value of $24,600 in connection with the private placement and has been recorded as a share issuance cost. e) On September 12, 2017, the Company issued 20,000 common shares pursuant to the exercise of stock options for total proceeds of $75,000. As a result, the Company transferred $48,000 representing the fair value of the exercised stock options from reserves to share capital. f) On October 23, 2017, the Company issued 4,750 common shares pursuant to the exercise of share purchase warrants for total proceeds of $17,812. Preferred shares As at November 30, 2019 and 2018, no preferred shares were issued and outstanding. Treasury shares On November 27, 2019, the Company issued 215,000 common shares into treasury as security against a loan in accordance with a Forebarance Agreement (Note 16). Commitment to issue shares As at November 30, 2019, the Company was committed to issuing $137,197 (2018 – $12,500) worth of common shares of which $33,058 is for services received and $104,139 is for 45,000 common shares to be issued in relation to the exercise of warrants. Loss per share The basic and diluted loss per share attributable to the Company for the year ended November 30, 2019 was $1.78 (2018 - $3.14; 2017 - $0.96) and was based on the loss attributable to common shareholders and the weighted average number of common shares outstanding of 4,255,297 (2018 – 2,397,117; 2017 – 2,001,832). The basic and diluted profit (loss) per share attributable to the non-controlling interests for the year ended November 30, 2019 was $(0.01) (2018 – $0.02) and was based on the profit (loss) attributable to non-controlling interests and the weighted average number of common shares outstanding of 4,255,297 (2018 – 2,397,117). Stock options Prior to the Arrangement described in Note 3, the Company had a stock option plan whereby the Company could grant share options to directors, officers, employees, and consultants enabling them to acquire up to 15% of the issued common shares of the Company. The exercise price of each option is set by the Board of Directors at the time of grant subject to a minimum price of $0.10 per share but cannot be less than the market price (less permissible discounts) on the Canadian Stock Exchange. Options can have a maximum term of five years and typically terminate ninety days following the termination of the optionee’s employment or engagement (thirty days for options granted for investor relations services), except in the case of retirement or death. Vesting of options is at the discretion of the Board of Directors at the time the options are granted. All stock options outstanding in Liquid Canada were cancelled upon the completion of the Arrangement. Following the Arrangement, the Company does not have a formal stock option plan. The Company occasionally grants stock options to its employees, officers, directors and consultants to purchase common shares of the Company. The options granted are exercisable at a price which is equal to or greater than the fair market value of the common shares at the date the options are granted. The options are granted with varied vesting periods including immediately, one and five years. Options granted generally have a life of 10 years. During fiscal 2018 and in connection with the Arrangement, the Company granted 117,000 stock options, with a total fair value of $236,345, to former option holders of LBIX of which 89,000 stock options vest 25% on grant date, 25% on October 2, 2018, 25% on January 2, 2019, and 25% on April 2, 2019. Of the total fair value granted, $96,303 was considered to be part of the cost of acquisition of LBIX (Note 3). During the year ended November 30, 2019, the Company recorded share-based compensation of $36,781 (2018 - $111,135) in relation to these options. During the year ended November 30, 2019, the Company granted 461,500 stock options with a total fair value of $ 1,136,731 that vested immediately on grant. The following weighted average assumptions were used in the Black-Scholes option-pricing model for the valuation of the stock options granted: 2019 2018 2017 Risk-free interest rate 1.82% 2.09% 1.28% Dividend yield Nil Nil Nil Expected life 5.0 years 0.94 years 5 years Volatility 92% 127% 120% Weighted average fair value per option $2.46 $2.08 $2.40 Stock option transactions are summarized as follows: Number of Stock Options Weighted Average Exercise Price $ Balance, November 30, 2016 - - Granted 240,000 3.75 Exercised (20,000) 3.75 Balance, November 30, 2017 220,000 3.75 Cancelled – Plan of Arrangement (220,000) 3.75 Granted 117,000 17.67 (USD$13.30) Balance, November 30, 2018 117,000 17.67 (USD$13.30) Granted 461,500 3.39 (USD$2.55) Cancelled (117,000) 17.67 (USD$13.30) Balance, November 30, 2019 461,500 3.39 A summary of the share options outstanding and exercisable at November 30, 2019 is as follows: Number of Stock Options Exercise Price Expiry Date $ 461,500 3.39 (USD$2.55) February 28, 2024 461,500 The weighted average life of share options outstanding at November 30, 2019 was 4.25 years. Warrants Agents’ warrants During the year ended November 30, 2018, the Company issued 8,000 agents’ warrants with an exercise price of US$4.00 per warrant with a total fair value of $24,774 in connection with the October 15, 2018 private placement. The following weighted average assumptions were used in the Black-Scholes option-pricing model for the valuation of the agents’ warrants granted: 2018 Risk-free interest rate 2.30% Dividend yield Nil Expected life 2 years Volatility 105% Weighted average fair value per warrant $3.10 Agents’ warrant transactions are summarized as follows: Number of Agents’ Warrants Weighted Average Exercise Price $ Balance, November 30, 2016 and 2017 4,574 1.25 Issued 8,000 5.32 (USD$4.00) Exercised (1,837) 1.25 Balance, November 30, 2018 10,737 4.35 Cancelled 2,737 1.25 Balance, November 30, 2019 8,000 5.32 A summary of the agents’ warrants outstanding and exercisable at November 30, 2019 is as follows: Number of Agent’s Warrants Exercise Price Expiry Date $ 8,000 5.32 (USD$4.00) October 15, 2020 8,000 The weighted average life of agent’s warrants outstanding at November 30, 2019 was 0.88 years. Share purchase warrants During the year ended November 30, 2018, the Company issued 800,000 share purchase warrants with an exercise price of US$5.00 per warrant in connection with the October 15, 2018 private placement. The Company provided an anti-dilution clause on 132,043 warrants issued during the year ended November 30, 2017 that are triggered on exercise of such warrants. During the year ended November 30, 2018, 72,800 additional warrants with an exercise price of US$2.50 were issued under this provision. During the year ended November 30, 2019, the Company issued 1,000,167 share purchase warrants with an exercise price of USD$1.75 per warrant in connection with the conversion of various convertible debentures. On October 18, 2019, the Company repriced six tranches of share purchase warrants to US$1.20. Share purchase warrant transactions are summarized as follows: Number of Share Purchase Warrants Weighted Average Exercise Price $ Balance, November 30, 2016 - - Issued 323,673 4.36 Exercised (2,727) 3.75 Balance, November 30, 2017 320,946 4.36 Granted 800,000 6.65 Granted on anti-dilution clause 72,800 3.32 (USD$2.50) Exercised (51,148) 3.01 Balance, November 30, 2018 1,142,598 6.05 Granted 1,000,167 2.33 (USD$1.75) Exercised (158,291) 2.33 (USD$1.75) Balance, November 30, 2019 1,984,474 1.92 A summary of the share purchase warrants outstanding and exercisable at November 30, 2019 is as follows: Number of Share Purchase Warrants Exercise Price Expiry Date $ 31,504 1.59 (USD$1.20) March 14, 2022 24,208 1.59 (USD$1.20) April 6, 2022 286,886 1.59 (USD$1.20) August 30, 2020 800,000 1.59 (USD$1.20) October 15, 2021 841,876 2.33 (USD$1.75) February 26, 2021 1,984,474 The weighted average life of share purchase warrants outstanding at November 30, 2019 was 1.46 years. Derivative liability a) On August 30, 2017, the Company completed a non-brokered private placement of 132,043 units for cash proceeds of $126,000. Each unit consisted of one “A” share purchase warrant and one “B” share purchase warrant. Each “A” warrant entitles the holder to purchase one share of the Company for a period of three years from closing at a price of $3.00 per warrant. Each “B” warrant entitles the holder to purchase one share of the Company for a period of three years from closing at a price of $6.00. The warrant agreement provides an anti-dilution clause for each of the A and B warrants that, upon exercise of the warrants, will cause the Company to issue additional warrants sufficient to entitle the warrant holder to acquire 10% of the issued and outstanding common shares of the Company. Such right is limited to one exercise of either of the A and B warrants and all of the A warrants must be exercised prior to exercising any of the class B warrants. The anti-dilution right for the A and B share purchase warrants was valued at $126,000 as at November 30, 2017 as the acquisition price approximated fair value due to the recency of the transaction. During the year ended November 30, 2018, certain A warrants were exercised causing the rights to expire resulting in a decrease to the liability. As at November 30, 2019, the rights attached to the B warrants were valued at $1,102,277 (2018 - $100,912) resulting in a derivative loss of $1,001,365 for the year ended November 30, 2019 (2018 - gain of $25,088). The following weighted average assumptions were used in the Black-Scholes option-pricing model for the revaluation of the derivative liability as at November 30, 2019 and November 30, 2018 2019 2018 Risk-free interest rate 1.70% 2.16% Dividend yield Nil Nil Expected life 0.75 year 1.75 years Volatility 106% 114% Probability of exercise 75% 20% b) Due to the Company changing its functional currency from the CAD to the USD during the year ended November 30, 2018, a derivative liability occurred on the date of change on the Company’s previously issued share purchase warrants with CAD exercise prices. During the year ended November 30, 2019, the share purchase warrants with a CAD exercise price was repriced to USD resulting in the elimination of the derivative liability. On initial recognition, the Company recorded a loss of $1,557,086 to set up the derivative liability. As at November 30, 2018, the Company revalued the derivative liability to $551,846 and recorded a gain of $1,005,240. As at November 30, 2019, the Company revalued the derivative liability to $nil and recorded a gain of $551,846. The following weighted average assumptions were used in the Black-Scholes option-pricing model for the revaluation of the derivative liability as at November 30, 2019 and November 30, 2018: 2019 2018 Risk-free interest rate - 2.08% Dividend yield - Nil Expected life - 2.25 years Volatility - 102% |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly. Key management personnel include the Company’s executive officers and Board of Director members. A summary of related party loans and related transactions is included in Note 16. Interest paid or accrued to related parties during the year ended November 30, 2019 was $5,174 (2018 - $18,537; 2017 – $9,147). Accounts payable and accrued liabilities at November 30, 2019 includes $945,940 (2018 - $556,541) owing to directors, officers, and a former director and officer of the Company or to companies controlled by common directors for unpaid consulting fees, expense reimbursements, and loan interest. Additionally, accounts payable and accrued liabilities includes $664,452 (2018 - $864,592) payable to a director of Majesco relating to the purchase of the Company’s 51% interest in Majesco. During the year ended November 30, 2019, the Company received $781,395 (US$588,000) for convertible debentures detailed in Note 17 from three directors of the Company. In July 2019, two directors converted their debentures worth $116,944 (US$88,000) into 58,667 units of the Company. As at November 30, 2019, a loan was due from Waterproof, which included accrued interest receivable, amounting to $94,882 (2018 - $104,553). During the year ended November 30, 2019, the Company recorded interest income of $8,137 (2018 - $8,116; 2017 - $6,070) in connection to this loan receivable. (Note 8). During the year ended November 30, 2019, the Company recorded a gain on settlement of debt of which $Nil (2018 - $87,761, 2017 - $Nil) was with related parties. Summary of key management personnel compensation: For the years ended November 30, 2019 2018 2017 $ $ $ Consulting and directors fees 603,500 407,525 379,890 Share-based compensation 890,418 - 576,000 Interest expense 5,174 18,537 9,147 1,499,092 426,062 965,037 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Nov. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | 20. NON-CONTROLLING INTEREST The following table presents the changes in equity attributable to the 49% non-controlling interest in Majesco: 2019 2018 $ $ Balance, beginning of year 1,838,941 - Non-controlling interest on acquisition of Majesco (Note 5) - 1,684,615 Share of income (loss) for the year (43,932) 37,516 Foreign exchange on translation (8,608) 116,810 Balance, end of year 1,786,401 1,838,941 The following table presents the non-controlling interest as at November 30, 2019 and 2018: 2019 2018 $ $ Assets Current 33,770 243,660 Non-current 3,905,471 3,776,093 3,939,241 4,019,753 Liabilities Current 270,362 243,630 Non-current 23,163 23,184 293,525 266,814 Net assets 3,645,716 3,752,939 Non-controlling interest 1,786,401 1,838,941 The following table presents the loss and comprehensive loss attributable to non-controlling interest: Year ended 2019 2018 $ $ Profit (loss) attributable to non-controlling interest (43,932) 37,516 Foreign exchange translation adjustment (8,608) 116,810 Comprehensive loss attributable to non-controlling interest (52,540) 154,326 |
CAPITAL DISCLOSURE AND MANAGEME
CAPITAL DISCLOSURE AND MANAGEMENT | 12 Months Ended |
Nov. 30, 2019 | |
Capital Disclosure And Management [Abstract] | |
CAPITAL DISCLOSURE AND MANAGEMENT | 21. CAPITAL DISCLOSURE AND MANAGEMENT The Company defines its capital as shareholders’ equity. The Company’s objective when managing capital is to safeguard the Company’s ability to continue as a going concern. The Company manages its capital structure to maximize its financial flexibility making adjustments to it in response to changes in economic conditions and the risk characteristics of the underlying assets and business opportunities. The Company does not presently utilize any quantitative measures to monitor its capital. The Company is not subject to externally imposed capital requirements other than disclosed in Note 16. |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 22. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and • Level 3 – Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumption that market participants would use in pricing. The Company’s financial instruments consist of cash, restricted cash, receivables, loans receivable, investment in equity instruments, accounts payable and accrued liabilities, due to related parties, loans payable, convertible debentures, and derivative liability. The fair value of receivables, loans receivable, accounts payable and accrued liabilities, due to related parties, and loans payable approximates their carrying values. Cash and restricted cash are measured at fair value using level 1 inputs. Convertible debentures and derivative liability are measured using level 2 inputs. The investment in equity instruments is measured at fair value using level 3 inputs. As at November 30, 2019, the fair value of the level 3 asset was $1,551,324 based on a multiple of 6.9 times management’s estimate of Waterproof’s expected earnings before interest, taxes, and expected amortization. The Company’s investment in Waterproof does not have a quoted market price on an active market and the Company has assessed the fair value of the investment based on Waterproof’s unobservable earnings. As a result, the fair value is classified as level 3 of the fair value hierarchy. The process of estimating the fair value of Waterproof is based on inherent measurement uncertainties and is based on techniques and assumptions that emphasize both qualitative and quantitative information. There is no reasonable quantitative basis to estimate the potential effect of changing the assumptions to reasonably possible alternative assumptions on estimated fair value of the investment. The Company is exposed to a variety of financial risks by virtue of its activities including currency, credit, interest rate, and liquidity risk. (e) Currency risk Foreign currency exchange rate risk is the risk that the fair value or future cash flows will fluctuate as a result of changes in foreign exchange rates. The Company’s operations are carried out in Canada and the United States. As at November 30, 2019, the Company had current assets totaling CAD$364,147 and current liabilities totalling CAD$2,356,044. These factors expose the Company to foreign currency exchange rate risk, which could have an adverse effect on the profitability of the Company. A 1% change in the exchange rate would change other comprehensive income/loss by approximately US$15,000. At this time, the Company currently does not have plans to enter into foreign currency future contracts to mitigate this risk, however it may do so in the future. (f) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company’s cash is held in a large Canadian financial institution and a Bahamas based financial institution. The Company maintains certain cash deposits with Schedule I financial institutions, which from time to time may exceed federally insured limits. The Company has not experienced any significant credit losses and believes it is not exposed to any significant credit risk. The Company’s restricted cash is held with a law firm in trust in which credit risk exposure is low. The Company’s sales tax receivable is due from the Government of Canada; therefore, the credit risk exposure is low. The maximum exposure to credit risk as at November 30, 2019 and 2018 is the carrying value of the loans receivable. The Company has allowed for an expected credit loss of $145,431 on the loans receivable. (g) Interest rate risk Interest rate risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Financial assets and liabilities with variable interest rates expose the Company to cash flow interest rate risk. The Company does not hold any financial liabilities with variable interest rates. As at November 30, 2019, the loans included in loans payable and convertible debentures bear interest at rates ranging from 3.5% to 14.4% per annum and are due on demand. The Company does maintain bank accounts which earn interest at variable rates but it does not believe it is currently subject to any significant interest rate risk. (h) Liquidity risk The Company’s ability to continue as a going concern is dependent on management’s ability to raise required funding through future equity issuances and through short-term borrowing. The Company manages its liquidity risk by forecasting cash flows from operations and anticipating any investing and financing activities. Management and the Board of Directors are actively involved in the review, planning and approval of significant expenditures and commitments. As at November 30, 2019, the Company had a cash balance, including restricted cash, of $5,260,068 to settle current financial liabilities of $5,805,314. Additionally, as there is no assurance the convertible debentures will be converted into common shares of the Company, the Company is exposed to liquidity risk. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure Of Contingencies [Abstract] | |
CONTINGENCIES | 24. CONTINGENCIES In October 2018, the former president and chief executive officer of Liquid Canada (the “Claimant”) filed a lawsuit with the United States District Court Southern District of New York against the Company for approximately $11,800,000 for breach of contract, defamation, and violation of human rights (the “Action”). The Claimant asserts the existence of an unwritten contract which, if it was entered, increased her base compensation from US$120,000 to US$400,000 per year. Such contract was not executed by any party and is not, the Company states, a contract the Company would have contemplated at the time. The Company’s counsel applied to the court seeking dismissal of the Action. As at November 30, 2019, the violation of human rights claim was dismissed. In February 2020, the Company settled with the Claimant for US$240,000 which has been recorded as at November 30, 2019. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure Of Income Tax [Abstract] | |
INCOME TAXES | 25. INCOME TAXES A reconciliation of income taxes at statutory rates with the reported taxes is as follows: 2019 2018 2017 $ $ $ Loss before income taxes (7,787,892) (7,498,612) (1,928,870) Expected income tax expense (recovery) at statutory rates (2,103,000) (2,025,000) (502,000) Change in statutory, foreign tax, foreign exchange rates and other (44,576) (75,379) (13,000) Permanent difference 356,000 1,439,000 163,000 Share issue cost - (132,000) - Adjustment to prior years provision versus statutory tax returns and expiry of non-capital losses (123,000) - - Change in unrecognized deferred tax assets 1,752,000 795,000 352,000 Income tax expense (recovery) (162,576) 1,621 - The significant components of the Company’s deferred tax liability is as follows: 2019 2018 $ $ Deferred tax assets (liabilities) Intangible assets (23,163) (23,184) Investment in associates (122,000) - Debt with accretion (41,000) - Non-capital losses 163,000 - Net deferred tax liability 23,163 23,184 No deferred tax asset has been recognized in respect of the following losses and temporary differences as it is not considered probable that sufficient future taxable profit will allow the deferred tax asset to be recovered: 2019 Expiry Date Range 2018 Expiry Date Range 2017 Expiry Date Range $ $ $ Property and equipment 2,675,000 No expiry date 437,000 No expiry date 36,000 No expiry date Cumulative eligible capital - No expiry date - No expiry date 35,000 No expiry date Share issue costs 305,000 2020-2022 414,000 2019-2022 44,000 2018-2022 Investment in associates - No expiry date 56,000 No expiry date - No expiry date Allowable capital losses 323,000 No expiry date 11,000 No expiry date 13,000 No expiry date Non-capital losses 8,194,000 2026-2039 4,503,000 2026-2038 2,452,000 2026-2037 Tax attributes are subject to review, and potential adjustment, by tax authorities. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of operating segments [abstract] | |
SEGMENTED INFORMATION | 26. SEGMENTED INFORMATION During the years ended November 30, 2019 and 2018, the Company had two offices: a head-office in Vancouver, BC, and Majesco’s office in New York, New York. In evaluating performance, management does not distinguish or group its sales and cost of sales on a geographic basis. The Company has determined it had one reportable operating segment during the year ended November 30, 2019: the investment in video games. During the year ended November 30, 2018, the Company had two reportable operating segments: the investment in the production of films and the investment in video games Below summarizes the Company’s reportable operating segments for the year ended November 30, 2019. Film Video Games Total $ $ $ Segment Information Revenue - 429,236 429,236 Cost of sales - (1,985,804) (1,985,804) Operating expenses - (445,396) (445,396) Other expenses - 195,726 195,726 Taxes - 1,659 1,659 Segment loss - (1,804,579) (1,804,579) Corporate expenses: Operating expenses (5,401,319) Other expenses (580,335) Tax recovery 160,917 Foreign currency translation 12,775 Total corporate expenses (5,807,962) Comprehensive loss for the year (7,612,541) Capital expenditures: Equipment - 125,143 125,143 Below summarizes the Company’s reportable operating segments for the year ended November 30, 2018. Film Video Games Total $ $ $ Segment Information Revenue - 687,381 687,381 Cost of sales - (758,749) (758,749) Operating expenses - (318,682) (318,682) Other expenses (442,585) (153,206) (595,791) Taxes - (1,621) (1,621) Segment loss (442,585) (544,877) (987,462) Corporate expenses: Operating expenses (1,759,084) Other expenses (4,753,687) Foreign currency translation 398,892 Total corporate expenses (6,113,879) Comprehensive loss for the year (7,101,341) Capital expenditures: Intangible assets - 79,808 79,808 Goodwill - 3,585,883 3,585,883 Revenue derived in the Company’s video games segment is earned from a large number of customers located throughout the world. No one customer exceeds 5% of the Company’s sales. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
SUBSEQUENT EVENTS | 27. SUBSEQUENT EVENTS a) In January 2020, a consultant of the Company filed a lawsuit in the Supreme Court of British Columbia against the Company for approximately $1,150,000 for unpaid consulting fees, the unpaid cash consideration for the purchase of 51% interest in Majesco, and a payment for the difference between US$500,000 and the value of the Company’s shares issued on the purchase of the 51% interest in Majesco. The Company has accrued $1,064,450 in these financial statements. Management is currently seeking legal advice on this lawsuit. b) In January 2020, the Company issued 57,125 common shares to settle debt of $193,582 and 11,674 common shares for $33,058 in services included in commitment to issue shares at November 30, 2019. c) In February 2020, a consultant of the Company filed a lawsuit in the Supreme Court of British Columbia against the Company for the issuance of a share certificate for 59,706 common shares of the Company which the consultant states is owing to him and general and special damages in relation to the shares. Management is currently seeking legal advice on this lawsuit. No provision has been included in the financial statements as of November 30, 2019. d) In February 2020, the Company signed an asset purchase agreement with a vendor to acquire a portfolio of assets including certain streaming platforms for US$3,325,000. This agreement is subject to approval by NASDAQ. e) Subsequent to November 30, 2019, the Company issued 98,004 common shares for total proceeds of $205,072 (US$154,182) in connection with: (1) the exercise of 66,500 share purchase warrants at US$1.75 per warrant for proceeds of $154,651 (US$116,375) of which $104,139 (US$78,750) was included in commitment to issue shares as at November 30, 2019; and (2) 31,504 share purchase warrants at US$1.20 per warrant for proceeds of $50,308 (US$37,806). |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Nov. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Statement of compliance | Statement of compliance These consolidated financial statements, including comparatives, have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and Interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”). Financial instruments On December 1, 2018, the Company adopted IFRS 9 Financial Instruments Financial Instruments: Classification and Measurement The following summarizes the significant changes in IFRS 9 compared to the previous standard: • IFRS 9 uses a single approach to determine whether a financial asset is classified and measured at amortized cost or fair value. The classification and measurement of financial assets is based on the Company’s business models for managing its financial assets and whether the contractual cash flows represent solely payments for principal and interest. The change did not impact the carrying amounts of any of the Company’s financial assets on the transition date. Prior periods were not restated and no material changes resulted from adopting this new standard. •The adoption of the new “expected credit loss” impairment model under IFRS 9, as opposed to an incurred credit loss model under IAS 39, had no impact on the carrying amounts of our financial assets on the transition date. Revenue Recognition On December 1, 2018, the Company adopted IFRS 15, Revenue from Contracts with Customers which replaced IAS 18, Revenue, IAS 11, Construction Contracts, and related interpretations, and establishes a comprehensive framework for determining whether revenue should be recognized, and if so, how much and when revenue should be recognized. The Company has adopted IFRS 15 using the cumulative effect method (without practical expedients), which requires that the effect of initially applying this standard be recognized at the date of initial application, which is December 1, 2018, and that the information for the year ended November 30, 2018 is presented as previously reported. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements, and as a result, there was no adjustment made to deficit on December 1, 2018. Although no adjustments were required in applying IFRS 15 to prior periods, the new standard is expected to impact the manner in which revenue is recognized in the future. Under IFRS 15, revenue is recognized when a customer obtains control of the goods or services. Accounting policies have been updated to reflect the terminology required by IFRS 15, however, the content and the application thereof has not changed. The Company’s main source of revenue continues to be derived from software games; however, due to IFRS 15, the Company is changing its revenue recognition policy in regards to any revenue it may derive from animation production services. The details of the nature of the changes to previous accounting policies in relation to the Company’s various revenue generating arrangements are set out below: Type of service or products Nature, timing of satisfaction of performance obligations, significant payment terms Nature of change in accounting policy Animation production services The Company has determined that for animation production service work, the customer controls the output throughout the production process. Every production is made to the individual customer’s specifications and if the contract is terminated by the customer, the Company is entitled to be reimbursed for any costs incurred to date, and any prepaid commitments made plus the agreed contractual mark up. As a result, revenue from such contracts and the associated costs are recognized over time - i.e. as the project is being produced, prior to it being delivered to the customer. The Company may choose to incur costs in order to secure a contract. Such costs will be capitalized and amortized over the period in which revenue is recognized. The Company previously recognized revenue on a percentage of completion basis over time based on costs incurred to total expected costs, and will continue to do so. In the event that costs to secure a contract are incurred, the policy will be updated to reflect the appropriate treatment of the contract asset. |
Basis of presentation | Basis of presentation The consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical costs, except for certain financial assets and liabilities, including derivative instruments that are measured at fair value. The consolidated financial statements are presented in Canadian dollars unless otherwise noted. These consolidated financial statements include the accounts of the Company and its subsidiaries at the end of the reporting period as follows: Incorporation Percentage owned 2019 2018 Liquid Media Group (Canada) Ltd. (“Liquid Canada”) Canada 100% 100% Companies owned by Liquid Canada: Majesco Entertainment Company (“Majesco) USA 51% 51% On January 9, 2018, Liquid Canada acquired 51% of the shares of Majesco Entertainment Company (“Majesco”), a Nevada corporation. The Company is a provider of video game products primarily for the mass-market consumer. (Note 5) All significant intercompany accounts and transactions between the Company and its subsidiaries have been eliminated upon consolidation. Non-controlling interest represents the portion of a subsidiary’s earnings and losses and net assets that is not held by the Company. If losses in a subsidiary applicable to a non-controlling interest exceed the non-controlling interest in the subsidiary’s equity, the excess is allocated to the non-controlling interest except to the extent that the majority has a binding obligation and is able to cover the losses. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with IFRS requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported revenues and expenses during the period. Although management uses historical experience and its best knowledge of the amount, events or actions to form the basis for judgments and estimates, actual results may differ from these estimates. The most significant accounts that require estimates as the basis for determining the stated amounts include the valuation of convertible debentures, the valuation of investments in films and intangible assets including goodwill, the valuation of investments in equity instruments, the valuation of share-based compensation and other equity based payments and derivative liability, and the valuation of expected credit loss. Significant judgements includes the determination of functional currency, assessments over level of control or influence over companies, and the recoverability and measurement of deferred tax assets. Critical judgment exercised in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is as follows: Level of control or influence over companies The accounting for investments in other companies can vary depending on the degree of control and influence over those other companies. Management is required to assess at each reporting date the Company’s control and influence over these other companies. Management has used its judgment to determine which companies are controlled and require consolidation and those which are significantly influenced and require equity accounting. The Company has considered its ownership position in Waterproof Studios Inc. (“Waterproof”) to constitute significant influence up to February 28, 2019 and thereafter does not have the ability to influence the key operating activities of the entity due to ongoing disputes. Accordingly, as of March 1, 2019 the Company has accounted for its investment under fair value through profit or loss (Note 10 and 11). Functional currency The functional currency of the Company and its subsidiaries is the United States dollar (“USD”); however, determination of functional currency may involve certain judgments to determine the primary economic environment which is re-evaluated for each new entity or if conditions change. The Company’s functional currency changed from the Canadian dollar (“CAD”) on September 1, 2018 as a result of the Company being listed on the Nasdaq and management determining that all future financings will be completed in USD. Income taxes In assessing the probability of realizing income tax assets, management makes estimates related to expectation of future taxable income, applicable tax opportunities, expected timing of reversals of existing temporary differences and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. In making its assessments, management gives additional weight to positive and negative evidence that can be objectively verified. Information about assumptions and estimation uncertainties that have a significant risk of resulting in material adjustments are as follows: Valuation of share-based compensation, derivatives, and convertible features The Company uses the Black-Scholes Option Pricing Model for valuation of share-based compensation and other equity based payments. Option pricing models require the input of subjective assumptions including expected price volatility, interest rate, and forfeiture rate. Changes in the input assumptions can materially affect the fair value estimate and the Company’s earnings and equity reserves. Valuation of intangible assets including goodwill Goodwill and intangible assets are tested for impairment at each reporting date. Management first reviews qualitative factors in determining if an impairment needs to be recorded. Quantitative factors are then used to calculate the amount of impairment, if needed. Goodwill and intangibles resulted from a business acquisition. Intangibles were valued based on estimated discounted cash flows. Valuation of investment in equity instrument The Company values its equity instruments in private companies at fair value at each reporting date. The determination of fair value is based on estimates made by management on the expected earnings before income, taxes, and amortization multiplied by a reasonable factor for the appropriate industry applicable to the private company. Valuation of expected credit loss Loans receivables are assessed for an estimated credit loss at each reporting date. The estimated loss is determined based on management’s knowledge of the debtor and their ability to repay the loan. As the current debtors’ are private entities, management must rely on assertions provided to them from the debtor to make their estimates. Valuation of convertible debentures The equity portion of the convertible debenture is calculated using a discounted cash flow method which requires management to make an estimate on an appropriate discount rate. |
Foreign currency translation | Foreign currency translation The functional currency of an entity is the currency of the primary economic environment in which the entity operates. The functional currency of the Company and Liquid Canada changed from the CAD to the USD dollar effective September 1, 2018. The functional currency of Majesco is the USD. The functional currency of Waterproof is the CAD. The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates Transactions in currencies other than USD are recorded at exchange rates prevailing on the dates of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the period end exchange rate while non-monetary assets and liabilities in foreign currencies are translated at historical rates. Revenues and expenses are translated at the average exchange rates approximating those in effect during the reporting period. For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company’s USD operations are translated into CAD at the exchange rate at the reporting date. The income and expenses are translated using average rate. Foreign currency differences that arise on translation for consolidation purposes are recognized in other comprehensive income (loss). |
Financial instruments | Financial instruments Financial assets On initial recognition, financial assets are recognized at fair value and are subsequently classified and measured at: (i) amortized cost; (ii) fair value through other comprehensive income (“FVOCI”); or (iii) fair value through profit or loss (“FVTPL”). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial asset is measured at fair value net of transaction costs that are directly attributable to its acquisition except for financial assets at FVTPL where transaction costs are expensed. All financial assets not classified and measured at amortized cost or FVOCI are measured at FVTPL. On initial recognition of an equity instrument that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. The classification determines the method by which the financial assets are carried on the statement of financial position subsequent to inception and how changes in value are recorded. Receivables and loans receivable are measured at amortized cost with subsequent impairments recognized in profit or loss. Cash, restricted cash, and investment in equity instruments are classified as FVTPL. Impairment An ‘expected credit loss’ impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. For the years presented, the Company did not record an expected credit loss on its accounts receivable; however, an expected credit loss of $145,431 was recorded on its loans receivable as at November 30, 2019 (2018 - $Nil). Financial liabilities Financial liabilities are designated as either: (i) fair value through profit or loss; or (ii) other financial liabilities. All financial liabilities are classified and subsequently measured at amortized cost except for financial liabilities at FVTPL. The classification determines the method by which the financial liabilities are carried on the statement of financial position subsequent to inception and how changes in value are recorded. Accounts payable and accrued liabilities, due to related parties, loans payable, and convertible debentures are classified as other financial liabilities and carried on the statement of financial position at amortized cost. Derivative liabilities are measured at FVTPL. |
Investment in associates | Investment in associates The Company’s investment in associates was accounted for using the equity method of accounting. An associate is an entity in which the Company has significant influence and which is neither a subsidiary nor a joint venture. Under the equity method, the investment in the associate is carried in the statement of financial position at cost. The statement of loss reflects the share of the results of operations of the associate until significant influence ceases. Where there has been a change recognized directly in the equity of the associate, the Company recognizes its share of any changes and discloses this, when applicable, in the statement of changes in shareholders’ equity (deficiency). Profits and losses resulting from transactions between the Company and the associate are eliminated to the extent of the interest in the associate. Associates are those entities in which the Company has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the Company holds between 20 and 50 percent of the voting power of another entity. Investments in associates are accounted for using the equity method (equity accounted investees) and are recognized initially at cost. The financial statements include the Company’s share of the income and expenses and equity movements of equity accounted investees, after adjustments to align the accounting policies with those of the Company from the date that significant influence or joint control commences, until the date that significant influence or joint control ceases. When the Company’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to nil, and the recognition of further losses is discontinued, except to the extent that the Company has obligations, or has made payments on behalf of the investee. The Company used the equity method of accounting for its 49% investment in Waterproof until significant influence ceased on March 1, 2019 and for its 50% investment in Household Pests (Note 10). |
Equipment | Equipment Equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in profit or loss. Assets under construction are not depreciated until available for their intended use. Depreciation is charged over the estimated useful lives using the declining balance method as follows: Computer equipment 30% |
Intangible assets | Intangible assets The Company has intangible assets from business acquisitions and development of gaming content. The amortization method, useful life and residual values are assessed annually and the assets are tested for impairment annually, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Amortization expense is recorded on a straight-line basis beginning with the month the corresponding assets are available for use and over the estimated useful lives provided below: Video game catalogues 15 years Brands indefinite Upon retirement or disposal, the cost of the asset disposed of and the related accumulated amortization are removed from the accounts and any gain or loss is reflected in profit and loss. Expenditures for repairs and maintenance are expensed as incurred. Video game catalogues The video game catalogues are made up of a diverse variety of games, ranging in age and popularity. The catalogues are unique due to the diverse nature of the products within the catalogues, making it difficult to assign a useful life. The useful life of 15 years represents management’s view of the expected period over which the Company expects benefits from the acquired gaming content packaged as catalogues. The election of this useful life is supported by internal game titles still producing revenue at this age. Video game development expenditures, including the cost of material, direct labour, and other direct costs are recognized as an intangible asset when the following recognition requirements are met: • the development costs can be measured reliably; • the project is technically and commercially feasible; • the Group intends to and has sufficient resources to complete the project; • the Group has the ability to use or sell the software, and • the software will generate probable future economic benefits. Video games being developed are amortized once development is complete and the game starts to generate income. Brand Through the acquisition of Majesco (Note 5), the Company acquired the “Majesco Entertainment” brand which was determined to have an indefinite life. |
Goodwill | Goodwill Goodwill is deemed to have an indefinite life and is not amortized but is subject to, at a minimum, annual impairment tests. The Company assesses the impairment of goodwill on an annual basis or whenever events or changes in circumstances indicate that the fair value is less than its carrying value. Impairment is tested at the cost center level by comparing the fair value of a cost center with its carrying amount including goodwill. If the carrying amount of the cost center exceeds its fair value, goodwill of the cost center is considered impaired and the second step of the test is performed to determine the amount of impairment loss, if any. |
Impairment of non-financial assets | Impairment of non-financial assets The carrying amount of the Company’s non-financial assets is reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in profit or loss. The recoverable amount of assets is the greater of an asset’s fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs. An impairment loss is only reversed if there is an indication that the impairment loss may no longer exist and there has been a change in the estimates used to determine the recoverable amount, however, not to an amount higher than the carrying amount that would have been determined had no impairment loss been recognized in previous years. Assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment. |
Business combinations | Business combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value, and the amount of any non-controlling interest in the acquiree. For each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable new assets. Acquisition costs incurred are expensed. |
Derivative Liability | Derivative liability Share purchase warrants outstanding during the years ended November 30, 2019 and 2018 met the criteria of a derivative instrument liability because they were exercisable in a currency other than the functional currency of the Company and thus did not meet the “fixed-for-fixed” criteria. As a result, the Company was required to separately account for the warrants as a derivative instrument liability recorded at fair value and marked-to-market each period with the changes in the fair value each period charged or credited to loss. Changes in fair value are recognized as gain/loss on derivative liability until the warrants are exercised or expire. |
Convertible debentures | Convertible debentures The Company’s convertible debenture was classified as a liability, less the portion relating to the conversion feature which is classified as a component of equity. As a result, the recorded liability to repay the convertible notes is lower than its face value. The liability was initially recorded at fair value and subsequently at amortized cost using the effective interest rate method; the liability is accreted to the face value over the term of the convertible debenture. |
Share capital | Share capital Financial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Company’s common shares, share warrants, and options are classified as equity instruments. Incremental costs directly attributable to the issue of new shares or options are recognized as a deduction from equity, net of tax. Valuation of equity units issued in private placements: The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the more easily measurable component based on fair value and then the residual value, if any, to the less easily measurable component. The fair value of the common shares issued in private placements is determined to be the more easily measurable component as they are valued at their fair value which is determined by the closing price on the issuance date. The remaining balance, if any, is allocated to the attached warrants. Any fair value attributed to the warrants is recorded to reserves. |
Loss per share | Loss per share Basic and diluted loss per share is computed by dividing net loss available to common shareholders by the weighted-average number of shares outstanding during the reporting period. If applicable, diluted income per share is computed similar to basic income per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of share options, warrants, and convertible debentures, if dilutive. The number of additional shares is calculated by assuming that outstanding share options and warrants were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting periods. For the years presented, this calculation proved to be anti-dilutive. |
Share-based compensation | Share-based compensation The Company grants stock options to buy common shares of the Company to directors, officers and consultants. All share-based payments made to employees and non-employees are measured and recognized using the Black-Scholes option pricing model. For employees, the fair value of the options is measured at grant date. For non-employees, the fair value of the options is measured on the earlier of the date at which the counterparty performance is complete, the date the performance commitment is reached, or the date at which the equity instruments are granted if they are fully vested and non-forfeitable. Share-based payments to non-employees are measured at the fair value of the goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. Stock options that vest over time are recognized using the graded vesting method. Share based compensation is recognized as an expense with a corresponding increase in reserves. At each financial reporting period, the amount recognized as expense is adjusted to reflect the number of share options expected to vest. If and when the stock options are ultimately exercised, the applicable amounts of reserves are transferred to share capital. Where the terms of a stock option are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification which increases the total fair value of the stock-based compensation arrangement or is otherwise beneficial to the employee as measured at the date of modification over the remaining vesting period. |
Revenue recognition | Revenue recognition Animation production services Revenue from animation production services provided is recognized when the services have been provided and control of the deliverable has been transferred to the customer. Revenue collected prior to it being earned is recorded as deferred revenue and recognized as the related services are provided. Management estimates the pace of revenue recognition based on contract milestones and determination of when it considered the revenue to be earned. The Company’s arrangements with customers are evidenced by contracts with customers. Any costs incurred to secure a contract will be capitalized and amortized over the period in which the revenue is recognized. Software games Revenue from sales of interactive software games on game consoles and PCs are recognized as revenue when games are purchased by a customer. Sales of the Company’s games are made by third party gaming platform companies pursuant to license agreements, and these gaming platform companies retain an agreed upon portion of sales as fees. The Company reports revenues related to these arrangements net of the fees retained by the gaming platform companies, as the Company has determined that the gaming platform companies are considered the primary obligors to the end consumers for the sale of the games. |
Royalties and licenses | Royalties and licenses Royalty-based obligations with content licensors are either paid in advance and capitalized as prepaid royalties or are accrued as incurred and subsequently paid. These royalty-based obligations are generally expensed to cost of sales at the contractual rate based on a percentage of the revenue earned. |
Income taxes | Income taxes Current income tax Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the country where the Company operates and generates taxable income. Deferred income tax Deferred income tax is provided for based on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. Current income and deferred tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. |
Accounting pronouncements not yet adopted | Accounting pronouncements not yet adopted A number of new standards, amendments to standards and interpretations applicable to the Company are not yet effective for the year ended November 30, 2019 and have not been applied in preparing these consolidated financial statements. c) IFRS 16 – Leases: specifies how an IFRS reporter will recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17. The standard was issued in January 2016 and is effective for annual periods beginning on or after January 1, 2019. Management does not anticipate this standard will have a significant impact on the Company’s consolidated financial statements. d) IFRIC 23 – Uncertainty Over Income Tax Treatments: clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments. It is effective for annual periods beginning on or after January 1, 2019 with early adoption permitted. Management does not anticipate this standard having a material effect on the Company’s consolidated financial statements. Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have a significant impact on the Company’s consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Schedule of Company and its subsidiaries at the end of the reporting period | These consolidated financial statements include the accounts of the Company and its subsidiaries at the end of the reporting period as follows: Incorporation Percentage owned 2019 2018 Liquid Media Group (Canada) Ltd. (“Liquid Canada”) Canada 100% 100% Companies owned by Liquid Canada: Majesco Entertainment Company (“Majesco) USA 51% 51% |
Schedule of estimated useful lives of intangible assets | Video game catalogues 15 years Brands indefinite |
REVERSE ACQUISITION (Tables)
REVERSE ACQUISITION (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Reverse Acquisition [Abstract] | |
Schedule of estimate of the fair value of net assets acquired | The following represents management's estimate of the fair value of the LBIX net assets acquired as at August 9, 2018 as a result of the reverse acquisition and is subject to final valuation adjustments. Total $ Cost of acquisition: Shares retained by public company shareholders - 560,410 shares at US$5.85 x 1.3047 4,277,319 Fair value of stock options 96,303 4,373,622 Allocated as follows: Cash 4,769 Restricted cash 574,510 Prepaid expenses 37,132 Receivables 124,561 Liabilities (497,907) 243,065 Allocated to listing expense 4,130,557 4,373,622 |
ACQUISITION OF MAJESCO ENTERT_2
ACQUISITION OF MAJESCO ENTERTAINMENT COMPANY (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of detailed information about business combination [abstract] | |
Schedule of excess consideration given over the fair value of the net assets acquired | Total $ Consideration: Common shares 415,000 Estimated cash payment on acquisition 1,245,000 Finder’s fee 93,375 Total consideration provided 1,753,375 Allocated as follows: Cash 11,060 Accounts payable (67,320) Due from former shareholder 56,260 Intangible assets – brand 103,335 Goodwill 3,356,355 Deferred income taxes (21,700) Non-controlling interest (Note 20) (1,684,615) 1,753,375 |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Trade and other receivables [abstract] | |
Schedule of trade receivable | 2019 2018 $ $ Accounts receivable 25,299 151,362 Sales tax receivable 14,293 30,705 Other receivables 658,769 - 698,361 182,067 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Loans Receivable [Abstract] | |
Schedule of loans receivable including accrued interest | As at November 30, 2019, the current loans receivable including accrued interest is as follows: Waterproof Participant Games Installment Entertainment Total $ $ $ $ Balance November 30, 2017 100,399 172,135 109,357 381,891 Accrued interest revenue 8,116 27,671 17,580 53,367 Repayments received (3,963) - - (3,963) Balance November 30, 2018 104,552 199,806 126,937 431,295 Reclassified as long-term - (199,806) (126,937) (326,743) Accrued interest revenue 8,137 - - 8,137 Repayments received (17,807) - - (17,807) Balance November 30, 2019 94,882 - - 94,882 |
INVESTMENT IN ASSOCIATE (Tables
INVESTMENT IN ASSOCIATE (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of associates [abstract] | |
Schedule of reconciliation of the investment in Waterproof | The following table is a reconciliation of the investment in Waterproof: 2019 2018 2017 $ $ $ Balance, beginning of year 397,629 509,857 534,893 Share of profit (loss) of equity investment 195,726 (119,654) (25,036) Currency translation adjustment (6,081) 7,426 - Derecognition to investment in equity instruments (Note 11) (587,274) - - Balance, end of year - 397,629 509,857 |
Schedule of statements of financial position and revenue, expenses and losses | The following table summarizes Waterproof’s statements of financial position for the comparative year: 2018 $ Current assets 563,806 Non-current assets 255,904 Current liabilities (678,258) Non-current liabilities (36,787) Net assets 104,665 The following table summarizes Waterproof’s revenue, expenses and losses for the comparative years: 2018 2017 $ $ Revenue 4,999,395 2,358,268 Cost of sales (3,951,861) (1,768,559) Expenses (1,291,786) (640,815) Loss for the year (244,252) (51,106) |
EQUIPMENT (Tables)
EQUIPMENT (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure Equipment Tables Abstract | |
Schedule of Equipment | Computer Equipment $ Cost: At November 30, 2018 - Additions 125,143 Net exchange differences (277) At November 30, 2019 124,866 Amortization: At November 30, 2018 - Additions 1,553 Net exchange differences 8 At November 30, 2019 1,561 Net book value: At November 30, 2018 - At November 30, 2019 123,305 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of intangible assets | Video Game Catalogues Brands Total $ $ $ Cost: At November 30, 2017 - - - Additions - shares 1,469,456 103,335 1,572,791 Additions - paid or accrued 196,160 - 196,160 Write-offs (116,352) - (116,352) Net exchange differences 39,994 1,951 41,945 At November 30, 2018 1,589,258 105,286 1,694,544 Additions - paid or accrued 133,356 - 133,356 Net exchange differences (7,053) 5,013 (2,040) At November 30, 2019 1,715,561 110,299 1,825,860 Amortization: At November 30, 2017 - - - Additions 17,722 - 17,722 At November 30, 2018 17,722 - 17,722 Additions 100,202 - 100,202 Net exchange differences (23) - (23) At November 30, 2019 117,901 - 117,901 Net book value: At November 30, 2018 1,571,536 105,286 1,676,822 At November 30, 2019 1,597,660 110,299 1,707,959 |
LOANS PAYABLE (Tables)
LOANS PAYABLE (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Loan Payable [Abstract] | |
Schedule of loans payable balances and transactions | A summary of loans payable balances and transactions is as follows: Related party Third party Credit Facility Bank Loan Total $ $ $ $ $ Balance, November 30, 2017 291,368 2,000 750,000 - 1,043,368 Advance 37,582 167,500 - - 205,082 Repayment - cash (50,500) (27,500) - - (78,000) Repayment - shares (106,247) (130,000) - - (236,247) Balance, November 30, 2018 172,203 12,000 750,000 - 934,203 Advance - 150,000 - 662,933 812,933 Repayment - cash (172,203) (137,000) - - (309,203) Balance, November 30, 2019 - 25,000 750,000 662,933 1,437,933 |
CONVERTIBLE DEBENTURES (Tables)
CONVERTIBLE DEBENTURES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Convertible Debentures | |
Schedule of Convertible Debentures | Liability component Equity component Total $ $ $ Balance, November 30, 2018 - - - Proceeds 2,930,477 595,991 3,526,468 Deferred income tax liability - (160,917) (160,917) Interest expense and accretion 259,885 - 259,885 Settlement of convertible debentures (1,795,455) (244,890) (2,040,345) Reallocation of interest to accounts payable (25,156) - (25,156) Currency translation adjustment 18,651 - 18,651 Balance, November 30, 2019 1,388,402 190,184 1,578,586 |
SHARE CAPITAL AND RESERVES (Tab
SHARE CAPITAL AND RESERVES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of reserves within equity [abstract] | |
Schedule of authorized to issue of preferred shares | The Company is authorized to issue the following preferred shares: Preferred shares without par value 9,999,900 Series “A” preferred shares 1,000,000 Series “B” preferred shares 100 Series “C” preferred shares 1,000,000 Series “D” preferred shares 4,000,000 Series “E” preferred shares 4,000,000 20,000,000 |
Schedule of weighted average assumptions by Black-Scholes option-pricing model | The following weighted average assumptions were used in the Black-Scholes option-pricing model for the valuation of the stock options granted: 2019 2018 2017 Risk-free interest rate 1.82% 2.09% 1.28% Dividend yield Nil Nil Nil Expected life 5.0 years 0.94 years 5 years Volatility 92% 127% 120% Weighted average fair value per option $2.46 $2.08 $2.40 |
Schedule of stock option transactions | Stock option transactions are summarized as follows: Number of Stock Options Weighted Average Exercise Price $ Balance, November 30, 2016 - - Granted 240,000 3.75 Exercised (20,000) 3.75 Balance, November 30, 2017 220,000 3.75 Cancelled – Plan of Arrangement (220,000) 3.75 Granted 117,000 17.67 (USD$13.30) Balance, November 30, 2018 117,000 17.67 (USD$13.30) Granted 461,500 3.39 (USD$2.55) Cancelled (117,000) 17.67 (USD$13.30) Balance, November 30, 2019 461,500 3.39 |
Schedule of summary of the share options outstanding and exercisable | A summary of the share options outstanding and exercisable at November 30, 2019 is as follows: Number of Stock Options Exercise Price Expiry Date $ 461,500 3.39 (USD$2.55) February 28, 2024 461,500 |
Schedule of weighted average assumptions used in the Black-Scholes option-pricing model for the valuation of the agents' warrants granted | The following weighted average assumptions were used in the Black-Scholes option-pricing model for the valuation of the agents’ warrants granted: 2018 Risk-free interest rate 2.30% Dividend yield Nil Expected life 2 years Volatility 105% Weighted average fair value per warrant $3.10 |
Schedule of agents' warrant transactions | Agents’ warrant transactions are summarized as follows: Number of Agents’ Warrants Weighted Average Exercise Price $ Balance, November 30, 2016 and 2017 4,574 1.25 Issued 8,000 5.32 (USD$4.00) Exercised (1,837) 1.25 Balance, November 30, 2018 10,737 4.35 Cancelled 2,737 1.25 Balance, November 30, 2019 8,000 5.32 |
Schedule of agents' warrants outstanding and exercisable | A summary of the agents’ warrants outstanding and exercisable at November 30, 2019 is as follows: Number of Agent’s Warrants Exercise Price Expiry Date $ 8,000 5.32 (USD$4.00) October 15, 2020 8,000 |
Schedule of share purchase warrant transactions | Share purchase warrant transactions are summarized as follows: Number of Share Purchase Warrants Weighted Average Exercise Price $ Balance, November 30, 2016 - - Issued 323,673 4.36 Exercised (2,727) 3.75 Balance, November 30, 2017 320,946 4.36 Granted 800,000 6.65 Granted on anti-dilution clause 72,800 3.32 (USD$2.50) Exercised (51,148) 3.01 Balance, November 30, 2018 1,142,598 6.05 Granted 1,000,167 2.33 (USD$1.75) Exercised (158,291) 2.33 (USD$1.75) Balance, November 30, 2019 1,984,474 1.92 |
Schedule of share purchase warrants outstanding and exercisable for warrants | A summary of the share purchase warrants outstanding and exercisable at November 30, 2019 is as follows: Number of Share Purchase Warrants Exercise Price Expiry Date $ 31,504 1.59 (USD$1.20) March 14, 2022 24,208 1.59 (USD$1.20) April 6, 2022 286,886 1.59 (USD$1.20) August 30, 2020 800,000 1.59 (USD$1.20) October 15, 2021 841,876 2.33 (USD$1.75) February 26, 2021 1,984,474 |
Schedule of weighted average assumptions by Black-Scholes option-pricing model for the valuation of the derivative liability | The following weighted average assumptions were used in the Black-Scholes option-pricing model for the revaluation of the derivative liability as at November 30, 2019 and November 30, 2018 2019 2018 Risk-free interest rate 1.70% 2.16% Dividend yield Nil Nil Expected life 0.75 year 1.75 years Volatility 106% 114% Probability of exercise 75% 20% The following weighted average assumptions were used in the Black-Scholes option-pricing model for the revaluation of the derivative liability as at November 30, 2019 and November 30, 2018: 2019 2018 Risk-free interest rate - 2.08% Dividend yield - Nil Expected life - 2.25 years Volatility - 102% |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of key management personnel compensation | Summary of key management personnel compensation: For the years ended November 30, 2019 2018 2017 $ $ $ Consulting and directors fees 603,500 407,525 379,890 Share-based compensation 890,418 - 576,000 Interest expense 5,174 18,537 9,147 1,499,092 426,062 965,037 |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Schedule of non-controlling interest | The following table presents the changes in equity attributable to the 49% non-controlling interest in Majesco: 2019 2018 $ $ Balance, beginning of year 1,838,941 - Non-controlling interest on acquisition of Majesco (Note 5) - 1,684,615 Share of income (loss) for the year (43,932) 37,516 Foreign exchange on translation (8,608) 116,810 Balance, end of year 1,786,401 1,838,941 |
Schedule of noncontrolling interests assets liabilities | The following table presents the non-controlling interest as at November 30, 2019 and 2018: 2019 2018 $ $ Assets Current 33,770 243,660 Non-current 3,905,471 3,776,093 3,939,241 4,019,753 Liabilities Current 270,362 243,630 Non-current 23,163 23,184 293,525 266,814 Net assets 3,645,716 3,752,939 Non-controlling interest 1,786,401 1,838,941 |
Schedule of loss and comprehensive loss attributable to non-controlling interest | The following table presents the loss and comprehensive loss attributable to non-controlling interest: Year ended 2019 2018 $ $ Profit (loss) attributable to non-controlling interest (43,932) 37,516 Foreign exchange translation adjustment (8,608) 116,810 Comprehensive loss attributable to non-controlling interest (52,540) 154,326 |
SUPPLEMENTAL DISCLOSURES WITH R
SUPPLEMENTAL DISCLOSURES WITH RESPECT TO CASH FLOWS (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Supplemental Disclosures With Respect To Cash Flows [Abstract] | |
Schedule of disclosures with respect to cash flows | For the years ended November 30, 2019 2018 2017 $ $ $ Supplemental non-cash disclosures Reallocation of value of options upon exercise - - 48,000 Reallocation of value of warrants upon exercise - 2,986 - Shares issued for the acquisition of Majesco (Note 5) - 415,000 - Shares issued for intangible assets - 1,469,456 - Shares issued for licenses - 4,880,639 - Shares issued for debt settlements 634,175 623,771 357,750 Warrants issued for share issue costs - 24,774 - Net assets acquired on RTO (Note 3) - 243,065 - Shares issued for commitment - 156,000 - Investment in associates in accounts payable - - 31,567 Acquisition of equipment in accounts payable 125,143 - - Units issued for conversion of convertible debentures 2,040,346 - - Accounts payable applied to convertible debentures 23,675 - - Derecognition of investment in associate 587,274 - - Loans receivable allocated to long-term 379,268 - - Residual value of warrants on conversion of convertible debentures 30,779 - - |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure Of Income Tax [Abstract] | |
Schedule of reconciliation of income taxes at statutory rates with the reported taxes | A reconciliation of income taxes at statutory rates with the reported taxes is as follows: 2019 2018 2017 $ $ $ Loss before income taxes (7,787,892) (7,498,612) (1,928,870) Expected income tax expense (recovery) at statutory rates (2,103,000) (2,025,000) (502,000) Change in statutory, foreign tax, foreign exchange rates and other (44,576) (75,379) (13,000) Permanent difference 356,000 1,439,000 163,000 Share issue cost - (132,000) - Adjustment to prior years provision versus statutory tax returns and expiry of non-capital losses (123,000) - - Change in unrecognized deferred tax assets 1,752,000 795,000 352,000 Income tax expense (recovery) (162,576) 1,621 - The significant components of the Company’s deferred tax liability is as follows: 2019 2018 $ $ Deferred tax assets (liabilities) Intangible assets (23,163) (23,184) Investment in associates (122,000) - Debt with accretion (41,000) - Non-capital losses 163,000 - Net deferred tax liability 23,163 23,184 |
Schedule of unrecognized temporary tax differences | No deferred tax asset has been recognized in respect of the following losses and temporary differences as it is not considered probable that sufficient future taxable profit will allow the deferred tax asset to be recovered: 2019 Expiry Date Range 2018 Expiry Date Range 2017 Expiry Date Range $ $ $ Property and equipment 2,675,000 No expiry date 437,000 No expiry date 36,000 No expiry date Cumulative eligible capital - No expiry date - No expiry date 35,000 No expiry date Share issue costs 305,000 2020-2022 414,000 2019-2022 44,000 2018-2022 Investment in associates - No expiry date 56,000 No expiry date - No expiry date Allowable capital losses 323,000 No expiry date 11,000 No expiry date 13,000 No expiry date Non-capital losses 8,194,000 2026-2039 4,503,000 2026-2038 2,452,000 2026-2037 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Nov. 30, 2019 | |
Disclosure of operating segments [abstract] | |
Schedule of reportable operating segments | Below summarizes the Company’s reportable operating segments for the year ended November 30, 2019. Film Video Games Total $ $ $ Segment Information Revenue - 429,236 429,236 Cost of sales - (1,985,804) (1,985,804) Operating expenses - (445,396) (445,396) Other expenses - 195,726 195,726 Taxes - 1,659 1,659 Segment loss - (1,804,579) (1,804,579) Corporate expenses: Operating expenses (5,401,319) Other expenses (580,335) Tax recovery 160,917 Foreign currency translation 12,775 Total corporate expenses (5,807,962) Comprehensive loss for the year (7,612,541) Capital expenditures: Equipment - 125,143 125,143 Below summarizes the Company’s reportable operating segments for the year ended November 30, 2018. Film Video Games Total $ $ $ Segment Information Revenue - 687,381 687,381 Cost of sales - (758,749) (758,749) Operating expenses - (318,682) (318,682) Other expenses (442,585) (153,206) (595,791) Taxes - (1,621) (1,621) Segment loss (442,585) (544,877) (987,462) Corporate expenses: Operating expenses (1,759,084) Other expenses (4,753,687) Foreign currency translation 398,892 Total corporate expenses (6,113,879) Comprehensive loss for the year (7,101,341) Capital expenditures: Intangible assets - 79,808 79,808 Goodwill - 3,585,883 3,585,883 |
NATURE AND CONTINUANCE OF OPE_2
NATURE AND CONTINUANCE OF OPERATIONS (Details) - CAD ($) | Aug. 09, 2018 | Aug. 09, 2018 | Nov. 30, 2019 | Nov. 30, 2018 |
Statements Line Items [Line Items] | ||||
Accumulated deficit | $ 18,441,785 | $ 10,860,401 | ||
Leading Brands Inc [Member] | ||||
Statements Line Items [Line Items] | ||||
Number of common share issued | 1,848,980 | 1,848,980 | ||
Number of common shares outstanding | 1,848,980 | 1,848,980 | ||
Conversion price per share | $ 0.5741 | $ 0.5741 | ||
Liquid Media Group Canada Ltd [Member] | ||||
Statements Line Items [Line Items] | ||||
Issuance of common stock | 1,288,497 | 1,288,497 | ||
Percentage of common shares issued and outstanding | 69.69% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Detail Narrative) | 12 Months Ended |
Nov. 30, 2019 | |
Household Pests Holdings Inc [Member] | |
Significant Accounting Policies [Line Items] | |
Percentage owned | 50.00% |
Waterproof Studios Inc [Member] | |
Significant Accounting Policies [Line Items] | |
Percentage owned | 49.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details) | Jan. 09, 2018 | Nov. 30, 2019 | Nov. 30, 2018 |
Parent [member] | CANADA | |||
Significant Accounting Policies [Line Items] | |||
Percentage owned | 100.00% | 51.00% | |
ifrs-full:SubsidiariesMember | |||
Significant Accounting Policies [Line Items] | |||
Percentage owned | 51.00% | ||
ifrs-full:SubsidiariesMember | US [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage owned | 51.00% | 100.00% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Nov. 30, 2019 | |
Video Game Catalogues [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful lives | 15 years |
REVERSE ACQUISITION (Details Na
REVERSE ACQUISITION (Details Narrative) | Aug. 09, 2018shares | Aug. 09, 2018CAD ($)shares | Nov. 30, 2019CAD ($)shares | Nov. 30, 2018CAD ($)shares | Nov. 30, 2017CAD ($)shares |
Statements Line Items [Line Items] | |||||
Stock option holders granted stock options | 461,500 | 117,000 | 240,000 | ||
Percentage of risk free rate | 2.09% | 1.82% | 2.09% | 1.28% | |
Percentage of volatility | 127.00% | 92.00% | 127.00% | 120.00% | |
Percentages of dividend yield | $ | $ 0 | ||||
Investigation Cost | $ | $ 192,601 | $ 359,590 | $ 362,655 | ||
Liquid Media Group Canada Ltd [Member] | |||||
Statements Line Items [Line Items] | |||||
Issuance of common stock | 1,288,497 | 1,288,497 | |||
Leading Brands Inc [Member] | |||||
Statements Line Items [Line Items] | |||||
Number of share retained | 560,410 | ||||
Stock option holders granted stock options | 117,000 |
REVERSE ACQUISITION (Details)
REVERSE ACQUISITION (Details) - CAD ($) | Nov. 30, 2019 | Nov. 30, 2018 | Aug. 09, 2018 |
Allocated as follows: | |||
Restricted cash | $ 672,663 | $ 574,510 | |
Receivables | 698,361 | 182,067 | |
Liabilities | $ (8,319,156) | $ (5,499,660) | |
Leading Brands Inc [Member] | |||
Cost of acquisition: | |||
Shares retained by public company shareholders- 560,410 shares at US$5.85 x 1.3047 | $ 4,277,319 | ||
Fair value of stock options | 96,303 | ||
Total | 4,373,622 | ||
Allocated as follows: | |||
Cash | 4,769 | ||
Restricted cash | 574,510 | ||
Prepaid expenses | 37,132 | ||
Receivables | 124,561 | ||
Liabilities | (497,907) | ||
Total | 243,065 | ||
Allocated to listing expense | 4,130,557 | ||
Total | $ 4,373,622 |
RESTRICTED CASH (Detail Narrati
RESTRICTED CASH (Detail Narrative) - CAD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Restricted Cash And Cash Equivalent Abstract | ||
Restricted cash and cash equivalents | $ 672,663 | $ 574,510 |
ACQUISITION OF MAJESCO ENTERT_3
ACQUISITION OF MAJESCO ENTERTAINMENT COMPANY (Detail Narrative) | Jan. 09, 2018CAD ($)Share | Nov. 30, 2019CAD ($) | Nov. 30, 2018CAD ($) |
Disclosure of detailed information about business combination [line items] | |||
Amount of cash consideration accrued in business combination | $ 1,190,476 | ||
Amount of fee payable to finder | $ 59,854 | ||
Majesco Entertainment Company [Member] | |||
Disclosure of detailed information about business combination [line items] | |||
Percentage of equity interests acquired | 51.00% | ||
Number of share issued as consideration | Share | 66,667 | ||
Value for share issued as consideration | $ 415,000 | ||
Amount of cash consideration accrued in business combination | $ 664,450 | ||
Percentage of fee paid to finder | 5.00% | ||
Amount of fee paid to finder | $ 93,375 | ||
Amount of fee payable to finder | $ 33,223 |
ACQUISITION OF MAJESCO ENTERT_4
ACQUISITION OF MAJESCO ENTERTAINMENT COMPANY (Details) - CAD ($) | Jan. 09, 2018 | Nov. 30, 2019 | Nov. 30, 2018 |
Allocated as follows: | |||
Goodwill | $ 3,356,355 | ||
Non-controlling interest (Note 17) | $ (1,684,615) | ||
Majesco Entertainment Company [Member] | |||
Consideration: | |||
Common shares | $ 415,000 | ||
Estimated cash payment on acquisition | 1,245,000 | ||
Finder's fee | 93,375 | ||
Total consideration provided | 1,753,375 | ||
Allocated as follows: | |||
Cash | 11,060 | ||
Accounts payable | (67,320) | ||
Due from former shareholder | 56,260 | ||
Intangible assets - brand | 103,335 | ||
Goodwill | 3,356,355 | ||
Deferred income taxes | (21,700) | ||
Non-controlling interest (Note 17) | (1,684,615) | ||
Total | $ 1,753,375 |
RECEIVABLES (Details)
RECEIVABLES (Details) - CAD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Trade and other receivables [abstract] | ||
Accounts receivable | $ 25,299 | $ 151,362 |
Sales tax receivable | 14,293 | 30,705 |
Other receivables | 658,769 | 0 |
Receivables | $ 698,361 | $ 182,067 |
RECEIVABLES (Details Narrative)
RECEIVABLES (Details Narrative) | 12 Months Ended |
Nov. 30, 2019CAD ($) | |
Trade and other receivables [abstract] | |
Royalty receivable from developer | $ 70,108 |
Actual royalty received from developer | 33,254 |
Loss on royalty receivable | $ 36,854 |
PREPAIDS (Details Narrative)
PREPAIDS (Details Narrative) | Nov. 30, 2019CAD ($) |
Disclosure Prepaids Details Narrative Abstract | |
Prepaid Expenses | $ 208,066 |
LOANS RECEIVABLE (Detail Narrat
LOANS RECEIVABLE (Detail Narrative) - CAD ($) | 12 Months Ended | |||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2019 | Nov. 30, 2018 | |
Waterproof Studios Inc [Member] | ||||
Loans Receivable [Line Items] | ||||
Advances | $ 100,000 | |||
Loan receivable interest rate | 8.00% | |||
Loans receivable default interest rate | 2% plus the applicable rate | |||
Accrued interest receivable | $ 11,651 | $ 11,322 | ||
Participant Games Inc [Member] | ||||
Loans Receivable [Line Items] | ||||
Advances | $ 150,000 | |||
Loan receivable interest rate | 15.00% | |||
Accrued interest receivable | 81,926 | 49,806 | ||
Installment Entertainment Inc [Member] | ||||
Loans Receivable [Line Items] | ||||
Advances | $ 100,000 | |||
Loan receivable interest rate | 15.00% | |||
Accrued interest receivable | $ 47,342 | $ 26,937 |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Loans Receivable [Line Items] | |||
Opening balance | $ 431,295 | $ 381,891 | |
Reclassified as long-term | (326,743) | ||
Accrued interest revenue | 8,137 | 53,367 | $ 2,500 |
Repayments received | (17,807) | (3,963) | |
Closing balance | 94,882 | 431,295 | 381,891 |
Waterproof Studios Inc [Member] | |||
Loans Receivable [Line Items] | |||
Opening balance | 104,552 | 100,399 | |
Accrued interest revenue | 8,137 | 8,116 | |
Repayments received | (17,807) | (3,963) | |
Closing balance | 94,882 | 104,552 | 100,399 |
Participant Games Inc [Member] | |||
Loans Receivable [Line Items] | |||
Opening balance | 199,806 | 172,135 | |
Reclassified as long-term | (199,806) | ||
Accrued interest revenue | 27,671 | ||
Repayments received | 0 | ||
Closing balance | 199,806 | 172,135 | |
Installment Entertainment Inc [Member] | |||
Loans Receivable [Line Items] | |||
Opening balance | 126,937 | 109,357 | |
Reclassified as long-term | $ (126,937) | ||
Accrued interest revenue | 17,580 | ||
Repayments received | 0 | ||
Closing balance | $ 126,937 | $ 109,357 |
LICENSES (Detail Textuals)
LICENSES (Detail Textuals) - CAD ($) | Oct. 15, 2018 | Nov. 30, 2019 | Nov. 30, 2018 |
Licenses [Abstract] | |||
Currency translation adjustment | $ 100,636 | $ 105,677 | |
Number of common shares issued for licenses | 888,000 | 888,000 | |
Amount of common shares issued for licenses | 4,880,639 | $ 4,880,639 | |
Amortization licenses cost | $ 1,819,596 | $ 603,718 | |
Minimum term of corresponding agreements | 1 year | ||
Maximum term of corresponding agreements | 10 years |
INVESTMENT IN ASSOCIATE (Detail
INVESTMENT IN ASSOCIATE (Details) - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Disclosure of associates [line items] | |||
Share of loss of equity investment | $ (195,726) | $ 119,654 | $ 25,036 |
Waterproof [Member] | |||
Disclosure of associates [line items] | |||
Balance, beginning of year | 397,629 | 509,857 | 534,893 |
Share of loss of equity investment | 195,726 | (119,654) | (25,036) |
Currency translation adjustment | (6,081) | 7,426 | 0 |
Derecognition to investment in equity instruments | (587,274) | ||
Balance, end of year | $ 397,629 | $ 509,857 |
INVESTMENT IN ASSOCIATE (Deta_2
INVESTMENT IN ASSOCIATE (Details 2) - CAD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Disclosure of associates [line items] | ||
Current assets | $ 6,349,663 | $ 5,534,124 |
Current liabilities | (5,805,314) | $ (4,823,718) |
Waterproof [Member] | ||
Disclosure of associates [line items] | ||
Current assets | 563,806 | |
Non-current assets | 255,904 | |
Current liabilities | (678,258) | |
Non-current liabilities | (36,787) | |
Net assets | $ 104,665 |
INVESTMENT IN ASSOCIATE (Deta_3
INVESTMENT IN ASSOCIATE (Details 3) - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Disclosure of associates [line items] | |||
Revenue | $ 429,236 | $ 687,381 | |
Cost of sales | (1,985,804) | (758,749) | |
Loss for the year | $ (7,625,316) | (7,500,233) | (1,928,870) |
Waterproof [Member] | |||
Disclosure of associates [line items] | |||
Revenue | 4,999,395 | 2,358,268 | |
Cost of sales | (3,951,861) | (1,768,559) | |
Expenses | (1,291,786) | (640,815) | |
Loss for the year | $ (244,252) | $ (51,106) |
INVESTMENT IN ASSOCIATE (Deta_4
INVESTMENT IN ASSOCIATE (Detail Narrative) - Waterproof [Member] | 1 Months Ended |
Apr. 15, 2015CAD ($)shares | |
Disclosure of associates [line items] | |
Percentage of ownership interest | 49.00% |
Amount of cash consideration | $ 475,000 |
Number of share issued as consideration | 100,000 |
Value for share issued as consideration | $ 125,001 |
Number of common shares issued to finder as fees | shares | 40,000 |
Value for number of common shares issued to finder as fees | $ 50,000 |
INVESTMENT IN ASSOCIATE (Deta_5
INVESTMENT IN ASSOCIATE (Detail Narrative 2) - CAD ($) | Jul. 02, 2015 | Apr. 15, 2015 | Nov. 30, 2018 | Nov. 30, 2017 |
Waterproof [Member] | ||||
Disclosure of associates [line items] | ||||
Percentage of ownership interest | 49.00% | |||
Household Pests [Member] | ||||
Disclosure of associates [line items] | ||||
Percentage of ownership interest | 50.00% | |||
Acquisition costs | $ 125,000 | |||
Deferred costs | $ 181,872 | |||
Investment wrote-off | $ 310,484 | |||
Pigmental Llc [Member] | Household Pests [Member] | Animation Work Purchase Agreement Between Sergio Animation Studios, S.L. And Owner [Member] | ||||
Disclosure of associates [line items] | ||||
Value of agreement | $ 625,000 |
INTANGIBLE ASSETS (Detail Narra
INTANGIBLE ASSETS (Detail Narrative) - CAD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Video Game Catalogues [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Development costs | $ 212,625 | $ 79,808 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - CAD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | $ 1,676,822 | |
Ending balance | 1,707,959 | $ 1,676,822 |
Video Game Catalogues [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 1,571,536 | |
Ending balance | 1,597,660 | 1,571,536 |
Brand names [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 105,286 | |
Ending balance | 110,299 | 105,286 |
Gross carrying amount [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 1,694,544 | |
Additions - shares | 1,572,791 | |
Additions - paid or accrued | 133,356 | 196,160 |
Write-off | (116,352) | |
Net exchange differences | (2,040) | 41,945 |
Ending balance | 1,825,860 | 1,694,544 |
Gross carrying amount [member] | Video Game Catalogues [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 1,589,258 | |
Additions - shares | 1,469,456 | |
Additions - paid or accrued | 133,356 | 196,160 |
Write-off | (116,352) | |
Net exchange differences | (7,053) | 39,994 |
Ending balance | 1,715,561 | 1,589,258 |
Gross carrying amount [member] | Brand names [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 105,286 | |
Additions - shares | 103,335 | |
Additions - paid or accrued | 0 | |
Write-off | 0 | |
Net exchange differences | 5,013 | 1,951 |
Ending balance | 110,299 | 105,286 |
Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 17,722 | |
Net exchange differences | (23) | |
Additions | 100,202 | 17,722 |
Ending balance | 117,901 | 17,722 |
Accumulated depreciation and amortisation [member] | Video Game Catalogues [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 17,722 | |
Net exchange differences | (23) | |
Additions | 100,202 | 17,722 |
Ending balance | 117,901 | 17,722 |
Accumulated depreciation and amortisation [member] | Brand names [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 0 | |
Additions | 0 | |
Ending balance | $ 0 | $ 0 |
GOODWILL (Detail Textuals)
GOODWILL (Detail Textuals) - CAD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Goodwill [Abstract] | ||
Goodwill | $ 3,356,355 | |
Foreign currency translation adjustment | $ 226,193 | $ 229,528 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Detail Narrative) - CAD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Accounts Payable And Accrued Liabilities [Abstract] | ||
Stock issued during period, shares, issued for settlement of accounts payable | 159,873 | 81,937 |
Stock issued during period, value, issued for settlement of accounts payable | $ 634,175 | $ 449,291 |
Amount of accounts payable settlement | 595,045 | |
Gain on debt settlements | $ 98,487 | $ 145,764 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - CAD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Accounts Payable And Accrued Liabilities [Abstract] | ||
Accounts payable | $ 2,845,308 | $ 1,084,852 |
Accounts payable on legacy beverage assets | 250,000 | |
Accrued liabilities | 821,014 | 1,277,345 |
Payroll taxes payable | 474 | 842 |
Sales tax payable | 2,911 | |
Developer royalties payable | 84,332 | |
Payable on Majesco acquisition (Note 5) | 697,674 | 1,190,476 |
Accounts payable and accrued liabilities | $ 4,367,381 | $ 3,887,847 |
LOANS PAYABLE (Details)
LOANS PAYABLE (Details) - CAD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Loans Payable [Roll Forward] | ||
Balance | $ 934,203 | $ 1,043,368 |
Advance | 812,933 | 205,082 |
Repayment - cash | (309,203) | (78,000) |
Repayment - shares | (236,247) | |
Balance | 1,437,933 | 934,203 |
Related Party [Member] | ||
Loans Payable [Roll Forward] | ||
Balance | 291,368 | |
Advance | 37,582 | |
Repayment - cash | (172,203) | (50,500) |
Repayment - shares | (106,247) | |
Third Party [Member] | ||
Loans Payable [Roll Forward] | ||
Balance | 2,000 | |
Advance | 150,000 | 167,500 |
Repayment - cash | (137,000) | (27,500) |
Repayment - shares | (130,000) | |
Credit Facility [Member] | ||
Loans Payable [Roll Forward] | ||
Balance | 750,000 | |
Advance | 0 | |
Repayment - cash | 0 | |
Repayment - shares | 0 | |
Accretion | $ 0 | |
Bank Loan [Member] | ||
Loans Payable [Roll Forward] | ||
Advance | 662,933 | |
Balance | $ 662,933 |
LOANS PAYABLE (Detail Narrative
LOANS PAYABLE (Detail Narrative) - CAD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Loans Payable [Line Items] | ||
Accounts payable and accrued liabilities | $ 4,367,381 | $ 3,887,847 |
Related Party [Member] | ||
Loans Payable [Line Items] | ||
Percentage of interest rate | 8.00% | |
Accounts payable and accrued liabilities | $ 39,747 | 42,911 |
Third Party [Member] | ||
Loans Payable [Line Items] | ||
Percentage of interest rate | 14.40% | |
Accounts payable and accrued liabilities | $ 2,192 | 1,945 |
Credit Facility [Member] | ||
Loans Payable [Line Items] | ||
Percentage of interest rate | 14.40% | |
Accounts payable and accrued liabilities | $ 289,282 | $ 181,282 |
SHARE CAPITAL AND RESERVES (Det
SHARE CAPITAL AND RESERVES (Detail Narrative) | Apr. 30, 2019USD ($)shares | Feb. 28, 2019USD ($)shares | Oct. 15, 2018USD ($)shares$ / shares | Aug. 09, 2018shares | Aug. 09, 2018USD ($)shares | Oct. 23, 2017USD ($)shares | Sep. 12, 2017USD ($)shares | Sep. 06, 2017USD ($)shares | May 19, 2017USD ($)shares | Apr. 06, 2017 | Mar. 14, 2017USD ($)shares | Nov. 30, 2019USD ($)$ / sharesshares | Nov. 30, 2019CAD ($)shares | Nov. 30, 2018CAD ($)shares | Nov. 30, 2018USD ($)shares$ / shares | Nov. 30, 2017CAD ($)shares | Jan. 09, 2018CAD ($)Share |
Disclosure of classes of share capital [line items] | |||||||||||||||||
Shares issued pursuant to exercise of stock options | $ 75,000 | $ 75,000 | |||||||||||||||
Shares issued pursuant to exercise of stock options (in shares) | shares | 20,000 | ||||||||||||||||
Number of common shares issued for licenses | shares | 888,000 | 888,000 | 888,000 | ||||||||||||||
Shares issued for finder fees | $ 24,600 | 24,600 | |||||||||||||||
Shares issued for finder fees (in shares) | shares | 4,000 | ||||||||||||||||
Number of shares issued to settle debt | shares | 46,539 | 113,334 | 73,291 | 22,854 | 117,750 | ||||||||||||
Amount of shares issued to settle debt | $ 199,896 | $ 335,792 | $ 204,123 | $ 69,100 | $ 353,250 | $ 634,175 | $ 623,771 | 642,973 | |||||||||
Description of settlement of debt | On April 30, 2019, the Company issued 46,539 common shares valued at $243,162 to settle debt of $199,896 resulting in a loss of $43,266 which is included in loss on debt settlements. | On February 28, 2019, the Company issued 113,334 common shares valued at $391,013 to settle debt of $335,792 resulting in a loss of $55,221 which is included in loss on debt settlements. | On April 6, 2017, the Company closed a non-brokered private placement and issued 89,833 units at a price of $3.00 per unit for gross proceeds of $269,500 of which $16,500 was settled for debt. Each unit consisted of one common share and 0.287 of a share purchase warrant of the Company. Each whole warrant entitles the holder to purchase one additional common share at a price of $3.75 per share for a term of five years from closing. | On March 14, 2017, the Company issued 117,750 units valued at $353,250 to settle debt. Each unit was comprised of one common share and 0.287 of a share purchase warrant of the Company. Each whole warrant entitles the holder to purchase one additional common share at a price of $3.75 per share for a term of five years from closing. | |||||||||||||
Gain on debt settlements | $ (43,266) | $ (55,221) | |||||||||||||||
Total amount of debt settlements | $ 243,162 | $ 391,013 | |||||||||||||||
Amount of shaes issued for intangible assets | $ 1,469,456 | 1,469,456 | |||||||||||||||
Shares issued for intangible assets | shares | 268,000 | ||||||||||||||||
Number of warrants issued for exercise | shares | 158,291 | ||||||||||||||||
Amount of proceeds form warrants issued | $ 368,617 | ||||||||||||||||
Exercise price of warrants | $ / shares | $ 5 | $ 1.75 | |||||||||||||||
Number of units issued | shares | 800,000 | ||||||||||||||||
Units issue price per unit | $ / shares | $ 4 | ||||||||||||||||
Shares issued for cash | $ 4,157,760 | 4,157,760 | |||||||||||||||
Total amount of agents fees | 410,218 | ||||||||||||||||
Legal fees | 36,353 | ||||||||||||||||
Shares issued for share issuance costs | $ 41,531 | $ (423,371) | |||||||||||||||
Shares issued for share issuance costs (in shares) | shares | 10,000 | ||||||||||||||||
Description Of Brokered Private Placement | Each unit consisted of one common share and one share purchase warrant exercisable for a three-year period at an exercise price of US$5.00 per warrant. | ||||||||||||||||
Fair value of exercised stock options reserves to share capital | $ 48,000 | ||||||||||||||||
Agents Warrants [Member] | |||||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||||
Number of warrants issued | shares | 8,000 | 8,000 | 8,000 | ||||||||||||||
Amount of warrant issued | $ 24,774 | $ 24,774 | |||||||||||||||
Fair value of exercised warrants reserves to share capital | $ 2,985 | ||||||||||||||||
Number of warrants issued for exercise | shares | 1,837 | 1,837 | |||||||||||||||
Amount of proceeds form warrants issued | $ 2,296 | ||||||||||||||||
Exercise price of warrants | $ / shares | $ 1.25 | ||||||||||||||||
Share Purchase Warrants [Member] | |||||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||||
Number of warrants issued | shares | 1,000,167 | 800,000 | 800,000 | 323,673 | |||||||||||||
Fair value of exercised warrants reserves to share capital | $ 23,854 | ||||||||||||||||
Number of warrants issued for exercise | shares | 4,750 | 51,148 | 51,148 | ||||||||||||||
Amount of proceeds form warrants issued | $ 17,812 | $ 154,320 | |||||||||||||||
Majesco Entertainment Company [Member] | |||||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||||
Number of share issued as consideration | Share | 66,667 | ||||||||||||||||
Value for share issued as consideration | $ 415,000 | ||||||||||||||||
Liquid Media Group Canada Ltd [Member] | |||||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||||
Issuance of common stock | shares | 1,288,497 | 1,288,497 | |||||||||||||||
Amount of issuance of common stock | $ 4,277,319 | ||||||||||||||||
Amount of warrant issued | $ 96,303 |
SHARE CAPITAL AND RESERVES (D_2
SHARE CAPITAL AND RESERVES (Detail Narrative 2) | Aug. 09, 2018CAD ($)shares | Nov. 30, 2019shares$ / shares | Nov. 30, 2018CAD ($)shares$ / shares | Nov. 30, 2017shares$ / shares |
Statements Line Items [Line Items] | ||||
Basic and diluted earnings (loss) per share | $ / shares | $ 1.78 | $ 3.14 | $ 0.96 | |
Weighted average number of ordinary shares outstanding | 4,255,297 | 2,397,117 | 2,001,832 | |
Basic and diluted profit per share attributable to non-controlling interests | $ / shares | $ (.01) | $ 0.02 | ||
Attributable to non-controlling interests of weighted average number of common shares outstanding | 4,255,297 | 2,397,117 | ||
Stock option holders granted stock options | 461,500 | 117,000 | 240,000 | |
Share Options [Member] | ||||
Statements Line Items [Line Items] | ||||
Stock option holders granted stock options | 117,000 | |||
Share Options [Member] | Stock Option Vesting Tranche Two [Member] | ||||
Statements Line Items [Line Items] | ||||
Percentage of vested share | 25.00% | |||
Share Options [Member] | Stock Option Vesting Tranche One [Member] | ||||
Statements Line Items [Line Items] | ||||
Percentage of vested share | 25.00% | |||
Share Options [Member] | Stock Option Vesting Tranche Three [Member] | ||||
Statements Line Items [Line Items] | ||||
Percentage of vested share | 25.00% | |||
Leading Brands Inc [Member] | ||||
Statements Line Items [Line Items] | ||||
Stock option holders granted stock options | 117,000 | |||
Fair value of stock options | $ | $ 96,303 | |||
Leading Brands Inc [Member] | Share Options [Member] | ||||
Statements Line Items [Line Items] | ||||
Percentage of options granted | 25.00% | |||
Stock option holders granted stock options | 89,000 | |||
Fair value of stock options | $ | $ 96,303 | |||
Percentage of vested share | 25.00% |
SHARE CAPITAL AND RESERVES (D_3
SHARE CAPITAL AND RESERVES (Details) | Nov. 30, 2019shares |
Disclosure of classes of share capital [line items] | |
Number of shares authorized | 20,000,000 |
Preferred Shares Without Par Value [Member] | |
Disclosure of classes of share capital [line items] | |
Number of shares authorized | 9,999,900 |
Series A Preferred Shares [Member] | |
Disclosure of classes of share capital [line items] | |
Number of shares authorized | 1,000,000 |
Series B Preferred Shares [Member] | |
Disclosure of classes of share capital [line items] | |
Number of shares authorized | 100 |
Series C Preferred Shares [Member] | |
Disclosure of classes of share capital [line items] | |
Number of shares authorized | 1,000,000 |
Series D Preferred Shares [Member] | |
Disclosure of classes of share capital [line items] | |
Number of shares authorized | 4,000,000 |
Series E Preferred Shares [Member] | |
Disclosure of classes of share capital [line items] | |
Number of shares authorized | 4,000,000 |
Ordinary shares [member] | |
Disclosure of classes of share capital [line items] | |
Number of shares authorized | 500,000,000 |
SHARE CAPITAL AND RESERVES (D_4
SHARE CAPITAL AND RESERVES (Details 2) - $ / shares | Aug. 09, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 |
Disclosure of reserves within equity [abstract] | ||||
Risk-free interest rate | 2.09% | 1.82% | 2.09% | 1.28% |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Expected life | 5 years | 11 months 8 days | 5 years | |
Volatility | 127.00% | 92.00% | 127.00% | 120.00% |
Weighted average fair value per option | $ 2.46 | $ 2.08 | $ 2.4 |
SHARE CAPITAL AND RESERVES (D_5
SHARE CAPITAL AND RESERVES (Details 3) | 12 Months Ended | ||
Nov. 30, 2019shares$ / shares | Nov. 30, 2018shares$ / shares | Nov. 30, 2017shares$ / shares | |
Numberofshareoptions [Abstract] | |||
Balance | shares | 117,000 | 220,000 | |
Cancelled - Plan of Arrangement | shares | (117,000) | (220,000) | |
Granted | shares | 461,500 | 117,000 | 240,000 |
Exercised | shares | (20,000) | ||
Balance | shares | 461,500 | 117,000 | 220,000 |
Weightedaverageexerciseprice [Abstract] | |||
Balance | $ / shares | $ 17.67 | $ 3.75 | |
Cancelled - Plan of Arrangement | $ / shares | 17.67 | 3.75 | |
Granted | $ / shares | 17.67 | 3.75 | |
Exercised | $ / shares | 3.75 | ||
Balance | $ / shares | $ 3.39 | $ 17.67 | $ 3.75 |
SHARE CAPITAL AND RESERVES (D_6
SHARE CAPITAL AND RESERVES (Details 4) | 12 Months Ended | |||
Nov. 30, 2019shares$ / shares | Nov. 30, 2018shares | Nov. 30, 2017shares | Nov. 30, 2016shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Number of Stock Options Outstanding | 461,500 | 117,000 | 220,000 | |
Ranges Of Exercise Prices For Outstanding Share Options $3.39 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Number of Stock Options Outstanding | 461,500 | |||
Exercise Price | $ / shares | $ 3.39 | |||
Expiry Date Exercise Price Of Outstanding Share Options | Feb. 28, 2024 |
SHARE CAPITAL AND RESERVES (D_7
SHARE CAPITAL AND RESERVES (Details 5) | 12 Months Ended |
Nov. 30, 2018$ / shares | |
Disclosure of reserves within equity [abstract] | |
Risk-free interest rate | 2.30% |
Dividend yield | 0.00% |
Expected life | 2 years |
Volatility | 105.00% |
Weighted average fair value per option | $ 3.10 |
SHARE CAPITAL AND RESERVES (D_8
SHARE CAPITAL AND RESERVES (Details 6) | Oct. 15, 2018shares | Nov. 30, 2019shares$ / shares | Nov. 30, 2018shares$ / shares | Nov. 30, 2017shares$ / shares |
Weighted Average Exercise Price Of Other Equity Instruments [Abstract] | ||||
Balance | $ 17.67 | $ 3.75 | ||
Granted on anti-dilution clause | 17.67 | 3.75 | ||
Exercised | 3.75 | |||
Cancelled | 17.67 | 3.75 | ||
Balance | $ 3.39 | $ 17.67 | $ 3.75 | |
Agents Warrants [Member] | ||||
Number Of Other Equity Instruments [Abstract] | ||||
Balance | shares | 10,737 | 4,574 | 4,574 | |
Issued | shares | 8,000 | 8,000 | ||
Exercised | shares | (1,837) | |||
Cancelled | shares | 2,737 | |||
Balance | shares | 8,000 | 10,737 | 4,574 | |
Weighted Average Exercise Price Of Other Equity Instruments [Abstract] | ||||
Balance | $ 4.35 | $ 1.25 | $ 1.25 | |
Issued | 5.32 | |||
Exercised | 1.25 | |||
Cancelled | $ 1.25 | |||
Balance | $ 4.35 | $ 1.25 | ||
Share Purchase Warrants [Member] | ||||
Number Of Other Equity Instruments [Abstract] | ||||
Balance | shares | 1,142,598 | 320,946 | ||
Issued | shares | 1,000,167 | 800,000 | 323,673 | |
Granted on anti-dilution clause | shares | 72,800 | |||
Exercised | shares | (158,291) | (51,148) | (2,727) | |
Balance | shares | 1,984,474 | 1,142,598 | 320,946 | |
Weighted Average Exercise Price Of Other Equity Instruments [Abstract] | ||||
Balance | $ 6.05 | $ 4.36 | ||
Issued | 2.33 | 6.65 | 4.36 | |
Granted on anti-dilution clause | 3.32 | |||
Exercised | $ 2.33 | 3.01 | 3.75 | |
Balance | $ 6.05 | $ 4.36 |
SHARE CAPITAL AND RESERVES (D_9
SHARE CAPITAL AND RESERVES (Details 7) | 12 Months Ended | |||
Nov. 30, 2019shares$ / shares | Nov. 30, 2018shares | Nov. 30, 2017shares | Nov. 30, 2016shares | |
Agents Warrants [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of Warrants | 8,000 | 10,737 | 4,574 | 4,574 |
Agents Warrants [Member] | Ranges Of Exercise Prices For Outstanding Share Options 5.32 [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of Warrants | 8,000 | |||
Exercise Price | $ / shares | $ 5.32 | |||
Expiry Date | Oct. 15, 2020 | |||
Share Purchase Warrants [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of Warrants | 1,984,474 | 1,142,598 | 320,946 | |
Share Purchase Warrants [Member] | Ranges Of Exercise Prices $1.59 [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of Warrants | 31,504 | |||
Exercise Price | $ / shares | $ 1.59 | |||
Expiry Date | Mar. 14, 2022 | |||
Share Purchase Warrants [Member] | Ranges Of Exercise Prices $1.59 [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of Warrants | 24,208 | |||
Exercise Price | $ / shares | $ 1.59 | |||
Expiry Date | Apr. 6, 2022 | |||
Share Purchase Warrants [Member] | Ranges Of Exercise Prices $1.59 [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of Warrants | 286,886 | |||
Exercise Price | $ / shares | $ 1.59 | |||
Expiry Date | Aug. 30, 2020 | |||
Share Purchase Warrants [Member] | Ranges Of Exercise Prices $1.59 [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of Warrants | 800,000 | |||
Exercise Price | $ / shares | $ 1.59 | |||
Expiry Date | Oct. 15, 2021 | |||
Share Purchase Warrants [Member] | Ranges Of Exercise Prices $2.33 [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of Warrants | 841,876 | |||
Exercise Price | $ / shares | $ 2.33 | |||
Expiry Date | Feb. 26, 2021 |
SHARE CAPITAL AND RESERVES (_10
SHARE CAPITAL AND RESERVES (Details 8) - Derivative Liability [Member] | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
US [Member] | ||
Disclosure of financial liabilities [line items] | ||
Risk-free interest rate | 2.08% | |
Dividend yield | 0.00% | |
Expected life | 2 years 3 months | |
Volatility | 102.00% | |
CANADA | ||
Disclosure of financial liabilities [line items] | ||
Risk-free interest rate | 1.70% | 2.16% |
Dividend yield | 0.00% | 0.00% |
Expected life | 9 months | 1 year 9 months |
Volatility | 106.00% | 114.00% |
Probability of exercise | 75.00% | 20.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail Narrative) - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Disclosure of transactions between related parties [abstract] | |||
Accrued interest revenue | $ 8,137 | $ 53,367 | $ 2,500 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details) - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Disclosure of transactions between related parties [abstract] | |||
Consulting and directors fees | $ 603,500 | $ 407,525 | $ 379,890 |
Share-based compensation | 890,418 | 0 | 576,000 |
Interest expense | 5,174 | 18,537 | 9,147 |
key management personnel compensation | $ 1,499,092 | $ 426,062 | $ 965,037 |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details Narrative) | 12 Months Ended |
Nov. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Percentage of equity attributable non-controlling interest held in Majesco | 49.00% |
NON-CONTROLLING INTEREST (Det_2
NON-CONTROLLING INTEREST (Details) - CAD ($) | 12 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Noncontrolling Interest [Abstract] | ||
Balance, Beginning of period | $ 1,838,941 | |
Non-controlling interest on acquisition of Majesco (Note 5) | $ 1,684,615 | |
Share of income for the year | (43,932) | 37,516 |
Foreign exchange on translation | (8,608) | 116,810 |
Balance, End of period | $ 1,786,401 | $ 1,838,941 |
NON-CONTROLLING INTEREST (Det_3
NON-CONTROLLING INTEREST (Details 2) - CAD ($) | Nov. 30, 2019 | Nov. 30, 2018 |
Assets | ||
Current | $ 6,349,663 | $ 5,534,124 |
Assets | 15,389,472 | 15,577,056 |
Liabilities | ||
Current liabilities | 5,805,314 | 4,823,718 |
Liabilities | 8,319,156 | 5,499,660 |
Non-controlling interest | 1,786,401 | 1,838,941 |
Non-controlling interests [member] | ||
Assets | ||
Current | 33,770 | 243,660 |
Non-current | 3,905,471 | 3,776,093 |
Assets | 3,939,241 | 4,019,753 |
Liabilities | ||
Current liabilities | 270,362 | 243,630 |
Non-current | 23,163 | 23,184 |
Liabilities | 293,525 | 266,814 |
Net assets | 3,645,716 | 3,752,939 |
Non-controlling interest | $ 1,786,401 | $ 1,838,941 |
NON-CONTROLLING INTEREST (Det_4
NON-CONTROLLING INTEREST (Details 3) - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Noncontrolling Interest [Abstract] | |||
Profit attributable to non-controlling interest | $ (43,932) | $ 37,516 | |
Foreign exchange on translation | (8,608) | 116,810 | |
Comprehensive profit attributable to non-controlling interest | $ (52,540) | $ 154,320 |
SUPPLEMENTAL DISCLOSURES WITH_2
SUPPLEMENTAL DISCLOSURES WITH RESPECT TO CASH FLOWS (Details) | Oct. 15, 2018USD ($) | Nov. 30, 2019CAD ($) | Nov. 30, 2018CAD ($) | Nov. 30, 2017CAD ($) |
Supplemental non-cash disclosures | ||||
Reallocation of value of options upon exercise | $ 48,000 | |||
Reallocation of value of warrants upon exercise | 2,986 | |||
Shares issued for the acquisition of Majesco (Note 5) | 415,000 | |||
Amount of shaes issued for intangible assets | $ 1,469,456 | 1,469,456 | ||
Shares issued for licenses | 4,880,639 | |||
Shares issued for debt settlements | 634,175 | 623,771 | 357,750 | |
Warrants issued for share issue costs | 24,774 | |||
Net assets acquired on RTO (Note 3) | 243,065 | |||
Shares issued for commitment | 156,000 | |||
Investment in associates in accounts payable | 31,567 | |||
Acquisition of equipment in accounts payable | 125,143 | |||
Units issued for conversion of convertible debentures | 2,040,346 | 1,795,456 | ||
Accounts payable applied to convertible debentures | 23,675 | |||
Derecognition of investment in associate | 587,274 | |||
Loans receivable allocated to long-term | 379,268 | |||
Residual value of warrants on conversion of convertible debentures | $ 30,779 |
CONTINGENCIES (Detail Narrative
CONTINGENCIES (Detail Narrative) - 1 months ended Oct. 31, 2018 - Former Chief Executive Officer [Member] | CAD ($) | USD ($) |
Disclosure Of Contingencies [Line Items] | ||
Amount of lawsuit | $ 11,800,000 | |
Base compensation | $ 120,000 | |
Increased in base compensation per year | $ 400,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Disclosure Of Income Tax [Abstract] | |||
Loss before income taxes | $ (7,787,892) | $ (7,498,612) | $ (1,928,870) |
Expected income tax expense (recovery) at statutory rates | (2,103,000) | (2,025,000) | (502,000) |
Change in statutory, foreign tax, foreign exchange rates and other | (44,576) | (75,379) | (13,000) |
Permanent difference | 356,000 | 1,439,000 | 163,000 |
Share issue cost | (132,000) | ||
Adjustment to prior years provision versus statutory tax returns and expiry of non-capital losses | (123,000) | ||
Change in unrecognized deferred tax assets | 1,752,000 | 795,000 | $ 352,000 |
Income tax expense | $ (1,659) | $ 1,621 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Deferred Tax Asset Allowable Capital Losses [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 323,000 | $ 11,000 | $ 13,000 |
Expiry Date, Range | No expiry date | No expiry date | No expiry date |
Deferred Tax Asset Investment In Associates [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 0 | $ 56,000 | $ 0 |
Expiry Date, Range | No expiry date | No expiry date | No expiry date |
Deferred Tax Asset Share Issue Costs [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 305,000 | $ 414,000 | $ 44,000 |
Expiry Date, Range | 2020 to 2022 | 2019 to 2022 | 2018 to 2022 |
Deferred Tax Asset Cumulative Eligible Capital [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 0 | $ 0 | $ 35,000 |
Expiry Date, Range | No expiry date | No expiry date | No expiry date |
Deferred Tax Asset Property And Equipment [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 2,675,000 | $ 437,000 | $ 36,000 |
Expiry Date, Range | No expiry date | No expiry date | No expiry date |
Deferred Tax Asset Non Capital Losses [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 8,194,000 | $ 4,503,000 | $ 2,452,000 |
Expiry Date, Range | 2026 to 2039 | 2026 to 2038 | 2026 to 2037 |
SEGMENTED INFORMATION (Detail N
SEGMENTED INFORMATION (Detail Narrative) | 12 Months Ended |
Nov. 30, 2019Segment | |
Disclosure of operating segments [abstract] | |
Number of reportable operating segments | 2 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) - CAD ($) | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 429,236 | $ 687,381 | |
Cost of sales | (1,985,804) | (758,749) | |
Other income (expenses) | (384,609) | (5,349,478) | (374,659) |
Taxes | (1,659) | 1,621 | |
Corporate expenses: | |||
Foreign currency translation | 12,775 | 398,892 | |
Comprehensive loss for the year | (7,612,541) | (7,101,341) | $ (1,928,870) |
Capital expenditures: | |||
Intangible assets | 1,707,959 | 1,676,822 | |
Goodwill | 3,582,548 | 3,585,883 | |
Equipment | 123,305 | ||
Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 429,236 | 687,387 | |
Cost of sales | (1,985,804) | (758,749) | |
Operating expenses | (445,396) | (318,682) | |
Other income (expenses) | 195,726 | (595,791) | |
Taxes | 1,659 | (1,621) | |
Segment loss | (1,804,579) | (987,462) | |
Corporate expenses: | |||
Operating expenses | (5,401,319) | 1,759,084 | |
Other income (expenses) | (580,335) | (4,753,687) | |
Tax recovery | 160,917 | ||
Foreign currency translation | 12,775 | 398,892 | |
Total corporate expenses | (5,807,962) | (6,113,879) | |
Comprehensive loss for the year | (7,612,541) | (7,101,341) | |
Capital expenditures: | |||
Intangible assets | 79,808 | ||
Goodwill | 3,585,883 | ||
Equipment | 125,143 | ||
Operating segments [member] | Film [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 0 | |
Cost of sales | 0 | 0 | |
Operating expenses | 0 | 0 | |
Other income (expenses) | 0 | (442,585) | |
Taxes | 0 | 0 | |
Segment loss | 0 | (442,585) | |
Operating segments [member] | Video Games [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 429,236 | 687,381 | |
Cost of sales | (1,985,804) | (758,749) | |
Operating expenses | (445,396) | (318,682) | |
Other income (expenses) | 195,726 | (153,206) | |
Taxes | 1,659 | (1,621) | |
Segment loss | (1,804,579) | (544,877) | |
Capital expenditures: | |||
Intangible assets | 79,808 | ||
Goodwill | $ 3,585,883 | ||
Equipment | $ 125,143 |