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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Basis of Presentation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated
financial statements of Loop Industries, Inc. and Subsidiaries (the "Company") have been prepared in accordance with
accounting principles generally accepted in the United States of America for interim financial information and with the instructions
to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements. In the opinion of management, all normal recurring
adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended
November 30, 2016 are not necessarily indicative of the results that may be expected for the year ending February 28, 2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>The Company	</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Loop Industries, Inc. was incorporated on March
11, 2010 under the laws of the State of Nevada, under the name "Radikal Phones Inc." We changed our name to "First
American Group Inc." on October 7, 2010, and then we changed our name to our current name, "Loop Industries, Inc.",
effective July 21, 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 29, 2015, Loop Industries, Inc. entered
into a Share Exchange Agreement (the "Share Exchange Agreement"), by and among the Company, and the holders of common
stock of Loop Holdings, Inc. Under the terms and conditions of the Share Exchange Agreement, the Company offered, sold and
issued 23,257,500 shares of common stock in consideration for all the issued and outstanding shares in Loop Holdings. The
effect of the issuance was that Loop Holdings shareholders held approximately 78.1% of the issued and outstanding shares of common
stock of the Company upon consummation of the Share Exchange Agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to a Stock Redemption Agreement dated
June 29, 2015 entered into commensurate with the share exchange, the Company redeemed 25,000,000 shares of First American Group
common stock from two stockholders' for an aggregate redemption price of $16,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As the former owners and management of Loop
Industries have voting and operating control of the Company after the share exchange, the transaction has been accounted for as
a recapitalization with Loop Holdings deemed the acquiring company for accounting purposes, and the Company deemed the legal
acquirer. No step-up in basis or intangible assets or goodwill was recorded and the aggregate cost of $60,571 representing the
net liabilities assumed of $35,243, $16,000 cost of the redeemed shares and closing costs of $9,328 was reflected as a cost of
the transaction in June 2015. The consolidated financial statements reflect the historical results of Loop Holdings prior
to the Share Exchange, and that of the combined company following the Share Exchange.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company engages in the designing, prototyping
and building a closed loop plastics recycling business that leverages a proprietary de-polymerization technology.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All references to shares of common stock in
this Report on Form 10-Q give retroactive effect to a one-for-four (1:4) reverse split of the Company's issued and outstanding
shares of common stock, which reverse split took effect on the OTCQB on September 21, 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Basis of Consolidation </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These consolidated financial statements have
been prepared in conformity with generally accepted accounting principles in the United States of America ("US GAAP")
and comprise the consolidated financial position and results of operations of Loop Industries Inc. and an operating division of 8198381
Canada Inc., (Loop Canada) a Canadian Company that is owned 100% by the majority shareholder of Loop Industries Inc. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company determined due to the close association
between the Company and Loop Canada, the ongoing management of Loop Canada by the Company's majority stockholder, that the activities
of Loop Canada are principally related to Loop Industries, Inc., and the Company's right to receive the outputs from the activities
of Loop Canada which could potentially be significant to the Company, Loop Canada is a variable interest entity (VIE) requiring
consolidation with the Company. The Company determined that it is both the Primary beneficiary and provider of financial support
to these Loop Canada operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 24, 2016, 9449507 Canada Inc. was incorporated
to absorb all the assets and liabilities pertaining to the pilot plant commissioned by Loop Industries Inc. to 8198381 Canada Inc.
On November 11, 2016, the shares of 9449507 Canada Inc., which was wholly owned by Mr. Solomita, were transferred to Loop Industries
Inc. In December 23, 2016, 9449507 Canada Inc., changed its legal name to Loop Canada Inc.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The transfer of the assets and liabilities
will be executed following a letter of intent signed to that effect on June 13, 2016 and it is expected to be completed during
the fourth quarter of this fiscal year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Intercompany balances and transactions have
been eliminated in consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Going Concern</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements
have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and
commitments in the normal course of business. As reflected in the accompanying consolidated financial statements, the Company has
no recurring source of revenue and during the nine months ended November 30, 2016, the Company incurred a net loss of $2.5 Million
and used cash in operations of $2.0 Million. These factors raise substantial doubt about the Company's ability to continue as a
going concern. The ability of the Company to continue as a going concern is dependent upon the Company's ability to raise additional
funds and implement its business plan. Our auditors report regarding our February, 29, 2016 Financial Statements express an opinion
that substantial doubt exists as to whether we can continue as a going concern. The financial statements do not include any adjustments
that might be necessary if the Company is unable to continue as a going concern.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management estimates that the current funds
on hand will not be sufficient to continue operations through the next twelve months and to finalize the transition from pilot
scale to a full scale commercial manufacturing facility. Management is currently seeking additional funds, primarily through
the issuance of debt and equity securities for cash and estimates that a significant amount of capital will be necessary to advance
the development of our projects to the point at which they will become commercially viable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">No assurance can be given that any future financing
will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company could obtain
additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution
for our stock holders, in case of equity financing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: center"><font style="font-size: 10pt"><b>Estimated Useful</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>November 30,</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>February 29,</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Life</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: center"><font style="font-size: 10pt"><b>(years)</b></font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" id="ffcell" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
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<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Machinery and Equipment</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 9%; text-align: center"><font style="font-size: 10pt">5 - 7</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1,496,320</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1,126,147</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Office equipment and furniture</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: center"><font style="font-size: 10pt">5 - 8</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">126,625</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">108,030</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt">3</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">338,645</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">314,786</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,961,590</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,548,963</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Less: accumulated depreciation</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(408,566</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(149,609</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Property and equipment, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,553,024</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,399,354</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense is recorded as an operating
expense in the consolidated statements of operations and comprehensive loss and amounted to $86,349 and $71,194 for the three
months ended November 30, 2016 and 2015, respectively, and to $242,712 and $82,565 for the nine months ended November 30, 2016
and 2015, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Advances from Major Shareholder</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Daniel Solomita, the Company's major stockholder
and CEO, or companies controlled by him, has made advances to the Company to finance its operations. The amounts due to these
entities as of November 30, 2016 and February 29, 2016 were $360,084 and $492,128, respectively. The advances are unsecured, non-interest
bearing with no formal terms of repayment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Employment Agreement and Accrued Compensation
due Major Shareholder</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company entered into employment agreement
with Daniel Solomita, the Company's President and Chief Executive Officer for an indefinite term. During the term, officer shall
receive monthly salary of $15,000. Compensation expense under this agreement amounted to $45,000 during the three months ended
November 30, 2016 and 2015, and to $135,000 during the nine months ended November 30, 2016 and 2015. As of November 30, 2016, and
February 29, 2016, accrued compensation of $345,000 and $210,000, respectively, was due to Mr. Solomita.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, the Company agreed to issue the
officer 4 million shares of the Company's common stock, in tranches of one million shares each, if certain milestones were met.
The bonus of 4,000,000 shares of common stock is payable to Mr. Solomita as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font-size-adjust: none; font-stretch: normal">
<tr>
<td style="width: 4%"> </td>
<td style="vertical-align: top; width: 4%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">(i) </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">1,000,000 shares of common stock shall be issued to Mr. Solomita when the Company's securities are listed on an exchange or the OTCQX tier of the OTC Markets;</font></td></tr>
<tr>
<td> </td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"> </td>
<td style="vertical-align: top"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">(ii) </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">1,000,000 shares of common stock shall be issued to Mr. Solomita when the Company executes a contract for a minimum quantity of 25,000 M/T of PTA/EG or a PET;</font></td></tr>
<tr>
<td> </td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"> </td>
<td style="vertical-align: top"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">(iii) </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">1,000,000 shares of common stock shall be issued to Mr. Solomita when the Company's first full-scale production facility is in commercial operation; and</font></td></tr>
<tr>
<td> </td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"> </td>
<td style="vertical-align: top"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">(iv) </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">1,000,000 shares of common stock shall be issued to Mr. Solomita when the Company's second full-scale production facility is in commercial operation.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The milestones had not been met as of November
30, 2016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 15, 2016, the Company and Mr. Solomita
entered into an Amendment No. 1 to Employment Agreement (the "Amendment No. 1"), which amends the Employment Agreement.
Amendment No. 1 provides that the Company shall issue Mr. Solomita one share of the Company's Series A Preferred Stock for
consideration of Mr. Solomita agreeing not to terminate his employment with the Company for a period of five years from the date
of Amendment No. 1.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the exchange
rates used:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" id="hdcell" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Nine Months Ended November 30,</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Period end Canadian $: US Dollar exchange rate</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td id="ffcell" style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">0.74</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">0.75</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Average period Canadian $: US Dollar exchange rate</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.77</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.78</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: center"><font style="font-size: 10pt"><b>Estimated Useful</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>November 30,</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>February 29,</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Life</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: center"><font style="font-size: 10pt"><b>(years)</b></font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" id="ffcell" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Machinery and Equipment</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 9%; text-align: center"><font style="font-size: 10pt">5 - 7</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1,496,320</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1,126,147</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Office equipment and furniture</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: center"><font style="font-size: 10pt">5 - 8</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">126,625</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">108,030</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Leasehold improvements</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt">3</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">338,645</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">314,786</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,961,590</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,548,963</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Less: accumulated depreciation</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(408,566</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(149,609</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Property and equipment, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,553,024</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,399,354</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: center"><font style="font-size: 10pt"><b>Estimated Useful</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>November 30,</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>February 29,</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Life</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: center"><font style="font-size: 10pt">(years)</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td id="ffcell" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">In-process research & development</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: center"><font style="font-size: 10pt">7</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">445,050</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">445,050</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Less: accumulated amortization</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(121,155</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(73,471</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Intellectual Property, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">323,895</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">371,579</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below summarizes the Company's warrants
activities:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" id="hdcell" style="border-bottom-style: solid; border-bottom-width: 1pt">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number of</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Warrant<br />
Shares</b></p></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font><br />
<font style="font-size: 10pt"><b>Price Range</b></font><br />
<font style="font-size: 10pt"><b>Per Share</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font><br />
<font style="font-size: 10pt"><b>Average</b></font><br />
<font style="font-size: 10pt"><b>Exercise</b></font><br />
<font style="font-size: 10pt"><b>Price</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" id="ffcell" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Balance, February 29, 2016</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">2,322,334</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">0.80 to $6.00</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1.03</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Granted</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">712,670</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3.00 to $6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5.68</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Forfeited</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(1,000,000</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.80</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.80</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Exercised</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Expired</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Balance, November 30, 2016</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,035,004</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.80 to $6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2.77</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Earned and exercisable, November 30, 2016</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,437,087</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">0.80 to $6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.45</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Unvested, November 30, 2016</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">597,917</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.80 to $3.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1.14</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes information
concerning outstanding and exercisable warrants as of November 30, 2016:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="10" id="hdcell" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Warrants Outstanding</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="10" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Warrants Exercisable</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Range of</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise Prices</b></p></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Outstanding</b></p></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Average</b></font><br />
<font style="font-size: 10pt"><b>Remaining</b></font><br />
<font style="font-size: 10pt"><b>Contractual Life</b></font><br />
<font style="font-size: 10pt"><b>(in years)</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font><br />
<font style="font-size: 10pt"><b>Average</b></font><br />
<font style="font-size: 10pt"><b>Exercise Price</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercisable</b></p></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Average</b></font><br />
<font style="font-size: 10pt"><b>Remaining</b></font><br />
<font style="font-size: 10pt"><b>Contractual Life</b></font><br />
<font style="font-size: 10pt"><b>(in years)</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font><br />
<font style="font-size: 10pt"><b>Average</b></font><br />
<font style="font-size: 10pt"><b>Exercise</b></font><br />
<font style="font-size: 10pt"><b>Price</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td colspan="2" style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" id="ffcell" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">0.80</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 12%; text-align: right"><font style="font-size: 10pt">1,220,000</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 12%; text-align: right"><font style="font-size: 10pt">1.02</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 11%; text-align: right"><font style="font-size: 10pt">0.80</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 11%; text-align: right"><font style="font-size: 10pt">695,000</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 11%; text-align: right"><font style="font-size: 10pt">1.02</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 11%; text-align: right"><font style="font-size: 10pt">0.80</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">740,004</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.93</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">740,004</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.93</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">75,000</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.52</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,083</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.52</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
445050
445050
P7Y
712670
-1000000
0.80
6.00
3.00
5.68
0.80
3.45
290396
104822
72978
26472
217418
78350
102244
78613
1217600
499924
472986
153753
744614
346171
368403
240085
1034007
1134986
561545
829080
472462
305906
277951
416700
2482689
3638932
5771600
2363348
-2132668
52892
2416240
1065211
871354
375473
204102
495882
832545
1036647
2482689
3638932
1725207
1413348
1913725
1002892
2416240
371579
323895
323895
412900
412900
1399354
1553024
133119
153033
1419905
825891
978924
711756
1762013
1268193
847415
493820
177001
1024416
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: center"><font style="font-size: 10pt"><b>Estimated Useful</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>November 30,</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>February 29,</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Life</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: center"><font style="font-size: 10pt">(years)</font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td id="ffcell" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">In-process research & development</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: center"><font style="font-size: 10pt">7</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">445,050</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">445,050</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Less: accumulated amortization</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(121,155</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(73,471</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Intellectual Property, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">323,895</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">371,579</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 27, 2014, the Company entered into
an intellectual property agreement with Mr. Hatem Essaddam wherein the Company purchased a certain technique and method (In-process
research and development) for $445,050 allowing for the depolymerization of polyethylene terephthalate at ambient temperature
and atmospheric pressure. The Company will use such technique in its processing plant. The technology is being amortized using
the straight-line method over the estimated used life of the patents.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition to the $445,050 paid by the
Company under the Intellectual Property Assignment Agreement, the Company is required to make additional payments totaling
CDN$800,000 Mr. Essaddam within sixty (60) days of each of the following milestones (the "Milestones") having been met,
as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr>
<td style="width: 4%"> </td>
<td style="vertical-align: top; width: 4%; text-align: justify"><font style="font-size: 10pt">(i)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">CDN$200,000 when an average of twenty (20) metric tons per day of terephthalic acid meeting the is produced by the Company for twenty (20) operating days;</font></td></tr>
<tr>
<td> </td>
<td style="text-align: justify"> </td>
<td> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">(ii)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">CDN$200,000 when an average of thirty (30) metric tons per day of terephthalic acid is produced by the Company for thirty (30) operating days;</font></td></tr>
<tr>
<td> </td>
<td style="text-align: justify"> </td>
<td> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">(iii)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">CDN$200,000 when an average of sixty (60) metric tons per day of terephthalic acid is produced by the Company for sixty (60) operating days; and</font></td></tr>
<tr>
<td> </td>
<td style="text-align: justify"> </td>
<td> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">(iv)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">CDN$200,000 when an average of one hundred (100) metric tons per day of terephthalic acid is produced by the Company for sixty (60) operating days.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of November 30, 2016 the Company is still
in its test pilot program, none of the Milestones have been met, and accordingly no additional CDN$200,000 payment has been made.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Additionally, the Company is obligated to make
royalty payments of up to CDN$27,000,000, payable as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr>
<td style="vertical-align: top; width: 4%"> </td>
<td style="vertical-align: top; width: 4%; text-align: justify"><font style="font-size: 10pt">(a)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">10% of gross profits on the sale of all products derived by the Company from the technology assigned to the Company under the agreement;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">(b)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">10% of any license fee paid to the Company in respect of any licensing or other right to use the technology assigned to the Company and granted to a third party by the Assignee;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">(c)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">5% of any royalty or other similar payment made to the Company by a third party to whom a license or other right to use the technology assigned to the Company has been granted by the Company; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">(d)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">5% of any royalty or other similar payment made to the Company by a third party in respect of a sub-license or other right to use the technology assigned to the Company granted by the third party.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of November 30, 2016, the Company did not
make any royalty payments under the Intellectual Property Assignment Agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization expense is recorded as an operating
expense in the consolidated statements of operations and comprehensive loss and amounted to $15,895 and $7,419 for the three
months ended November 30, 2016 and 2015, respectively, and to $47,684 and $22,257 for the nine months ended November 30, 2016 and
2015, respectively.</p>
637670
637670
6.00
4.20
3826016
2880
-9453
-2120
2880
-7333
-809
-8441
0.80
36129
253041
163614
422586
1598399
492128
360084
363083
166270
5931
-36915
-3123802
-5662925
614001
3918356
8464278
2992
3140
47684
22257
15895
7419
135000
135000
45000
45000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Use of Estimates </u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in
conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Those estimates and assumptions include estimates for depreciable lives of property and equipment, analysis of impairments of recorded
intangibles, accruals for potential liabilities and assumptions made in calculating the fair value of certain stock instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Fair value of financial instruments</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies FASB ASC 820, Fair Value
Measurement, which defines fair value and establishes a framework for measuring fair value and making disclosures about fair value
measurements. FASB ASC 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price
observability used in measuring financial instruments at fair value. Market price observability is impacted by a number of factors,
including the type of financial instruments and the characteristics specific to them. Financial instruments with readily available
quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market
price observability and a lesser degree of judgment used in measuring fair value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There are three levels within the hierarchy
that may be used to measure fair value:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font-size-adjust: none; font-stretch: normal">
<tr>
<td style="vertical-align: top; width: 6%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Level 1</font></td>
<td style="vertical-align: top; width: 2%; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt">—</font></td>
<td style="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">A quoted price in an active market for identical assets or liabilities.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Level 2</font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt">—</font></td>
<td style="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Significant pricing inputs are observable inputs, which are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Level 3</font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt">—</font></td>
<td style="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Significant pricing inputs are unobservable inputs, which are inputs that reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value measurements level of an asset
or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The valuation methodologies described above
may produce a fair value calculation that may not be indicative of future net realizable value or reflective of future fair values.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts of the Company's financial
assets and liabilities, such as cash, prepayments, accounts payable and accrued liabilities approximate their fair values
because of the short maturity of these instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Foreign Currency Translations and Transactions</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements
are presented in United States dollars, the functional currency of the Company. Capital accounts of foreign subsidiaries are translated
into US Dollars from foreign currency at their historical exchange rates when the capital transactions occurred. Assets and liabilities
are translated at the exchange rate as of the balance sheet date. Income and expenditures are translated at the average exchange
rate of the period. As a result, currency exchange fluctuations may impact our revenue and the costs of our operations. We
currently do not engage in any currency hedging activities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the exchange
rates used:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" id="hdcell" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Nine Months Ended November 30,</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Period end Canadian $: US Dollar exchange rate</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td id="ffcell" style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">0.74</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">0.75</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Average period Canadian $: US Dollar exchange rate</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.77</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.78</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expenditures are translated at the average
exchange rate for the period presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Value added tax and other receivables</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is registered for the Canadian
Federal and Provincial Goods and Services Taxes. As a registrant, the Company is obligated to collect, and is entitled to claim
sale taxes paid on its expenses and capital expenditures incurred in Canada. As at the Balance Sheet date of November 30, and February
29, 2016, the computed net recoverable sale taxes amount to $163,614 and $253,041, respectively for which the Company expects full
reimbursement. The Company is the process of filing the required returns to claim the remaining recoverable balance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Intangible Assets</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management performs impairment tests of indefinite-lived
intangible assets at least annually, or whenever an event occurs or circumstances change that indicate impairment has more likely
than not occurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reviews intangible assets subject
to amortization at least annually to determine if any adverse conditions exist or a change in circumstances has occurred that would
indicate impairment or a change in the remaining useful life. If the carrying value of an asset exceeds its undiscounted cash flows,
the Company writes down the carrying value of the intangible asset to its fair value in the period identified. If the carrying
value of assets is determined not to be recoverable, the Company records an impairment loss equal to the excess of the carrying
value over the fair value of the assets. The Company's estimate of fair value is based on the best information available, in the
absence of quoted market prices. The Company generally calculates fair value as the present value of estimated future cash flows
that the Company expects to generate from the asset using a discounted cash flow income approach as described above. If the estimate
of an intangible asset's remaining useful life is changed, the Company amortizes the remaining carrying value of the intangible
asset prospectively over the revised remaining useful life.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of November 30, and February 29, 2016 the
Company determined that there were no indicators of impairment of its recorded intangible assets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Stock Based Compensation</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company periodically issues stock options
and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company
accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the
Financial Accounting Standards Board (FASB) whereas the value of the award is measured on the date of grant and recognized as compensation
expense on the straight-line basis over the vesting period. The Company accounts for stock option and warrant grants issued and
vesting to non-employees in accordance with the authoritative guidance of the FASB whereas the value of the stock compensation
is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the
date at which the necessary performance to earn the equity instruments is complete. Options granted to non-employees are revalued
each reporting period to determine the amount to be recorded as an expense in the respective period. As the options vest, they
are valued on each vesting date and an adjustment is recorded for the difference between the value already recorded and the then
current value on the date of vesting. In certain circumstances where there are no future performance requirements by the non-employee,
option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement
date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the Company's stock option
and warrant grants are estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to
risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation
expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model, and based on actual experience.
The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in
future periods.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Income Taxes</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company calculates its income tax charge
on the basis of the tax laws enacted at the balance sheet date in the countries where the Company and its subsidiaries operate
and generate taxable income, in accordance with FASB ASC 740, Income Taxes. The Company uses an asset and liability approach for
financial accounting and reporting for income taxes that allows recognition and measurement of deferred tax assets based upon the
likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided
for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more
likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility
is uncertain. The Company's policy is to recognize interest and/or penalties related to income tax matters in income tax expense.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Net Loss per Share</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company computes net loss per share in
accordance with FASB ASC 260 Earnings per share. Basic earnings (loss) per share is computed by dividing the net income (loss)
applicable to Common Stockholders by the weighted average number of shares of Common Stock outstanding during the year. Diluted
earnings (loss) per share is computed by dividing the net income (loss) applicable to Common Stockholders by the weighted average
number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive
potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation
if their effect is antidilutive.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the three and nine months ended November
30, 2016 and 2015, the calculations of basic and diluted loss per share are the same because potential dilutive securities would
have an anti-dilutive effect. The potentially dilutive securities consisted of 2,035,004 outstanding warrants as of November 30,
2016. There were no warrants outstanding as of November 30, 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Recently Issued Accounting Pronouncements</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the Financial Accounting Standards
Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers. ASU 2014-09 will
eliminate transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle
based approach for determining revenue recognition. On August 12, 2015, FASB delayed the required implementation to fiscal years
ending after December 15, 2017 but now permitted organizations such the Company to adopt earlier. ASU 2014-09 will require that
companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will
require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer
contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill
a contract. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date
of adoption. Management has determined to adopt ASU 2014-09 in The Company is in the process of evaluating the impact of ASU 2014-09
on the Company's financial statements and disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB issued Accounting
Standards Update (ASU) No. 2016-02, <i>Leases</i>. ASU 2016-02 requires a lessee to record a right of use asset and a corresponding
lease liability on the balance sheet for all leases with terms longer than 12 months. ASU 2016-02 is effective for all interim
and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition
approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest
comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process
of evaluating the impact of ASU 2016-02 on the Company's financial statements and disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2014, the FASB issued Accounting
Standards Update No. 2014-15 (ASU 2014-15), Presentation of Financial Statements - Going Concern (Subtopic 205-10). ASU 2014-15
provides guidance as to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to
continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements for
each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events, considered
in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after
the date that the financial statements are issued (or within one year after the date that the financial statements are available
to be issued when applicable). Management's evaluation should be based on relevant conditions and events that are known and reasonably
knowable at the date that the financial statements are issued (or at the date that the financial statements are available to be
issued when applicable). Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions
and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as
they become due within one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15
is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early
application is permitted. The Company will adopt ASU 2014-15 on the Company's financial statement presentation and disclosures
beginning in 2016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other recent accounting pronouncements issued
by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities
and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future
consolidated financial statements. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in
conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Those estimates and assumptions include estimates for depreciable lives of property and equipment, analysis of impairments of recorded
intangibles, accruals for potential liabilities and assumptions made in calculating the fair value of certain stock instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies FASB ASC 820, Fair Value
Measurement, which defines fair value and establishes a framework for measuring fair value and making disclosures about fair value
measurements. FASB ASC 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price
observability used in measuring financial instruments at fair value. Market price observability is impacted by a number of factors,
including the type of financial instruments and the characteristics specific to them. Financial instruments with readily available
quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market
price observability and a lesser degree of judgment used in measuring fair value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There are three levels within the hierarchy
that may be used to measure fair value:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font-size-adjust: none; font-stretch: normal">
<tr>
<td style="vertical-align: top; width: 6%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Level 1</font></td>
<td style="vertical-align: top; width: 2%; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt">—</font></td>
<td style="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">A quoted price in an active market for identical assets or liabilities.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Level 2</font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt">—</font></td>
<td style="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Significant pricing inputs are observable inputs, which are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Level 3</font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: center"><font style="font-size: 10pt">—</font></td>
<td style="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Significant pricing inputs are unobservable inputs, which are inputs that reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value measurements level of an asset
or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The valuation methodologies described above
may produce a fair value calculation that may not be indicative of future net realizable value or reflective of future fair values.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts of the Company's financial
assets and liabilities, such as cash, prepayments, accounts payable and accrued liabilities approximate their fair values
because of the short maturity of these instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements
are presented in United States dollars, the functional currency of the Company. Capital accounts of foreign subsidiaries are translated
into US Dollars from foreign currency at their historical exchange rates when the capital transactions occurred. Assets and liabilities
are translated at the exchange rate as of the balance sheet date. Income and expenditures are translated at the average exchange
rate of the period. As a result, currency exchange fluctuations may impact our revenue and the costs of our operations. We
currently do not engage in any currency hedging activities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the exchange
rates used:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" id="hdcell" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Nine Months Ended November 30,</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>2015</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Period end Canadian $: US Dollar exchange rate</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td id="ffcell" style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">0.74</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">0.75</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Average period Canadian $: US Dollar exchange rate</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.77</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.78</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expenditures are translated at the average
exchange rate for the period presented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is registered for the Canadian
Federal and Provincial Goods and Services Taxes. As a registrant, the Company is obligated to collect, and is entitled to claim
sale taxes paid on its expenses and capital expenditures incurred in Canada. As at the Balance Sheet date of November 30, and February
29, 2016, the computed net recoverable sale taxes amount to $163,614 and $253,041, respectively for which the Company expects full
reimbursement. The Company is the process of filing the required returns to claim the remaining recoverable balance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management performs impairment tests of indefinite-lived
intangible assets at least annually, or whenever an event occurs or circumstances change that indicate impairment has more likely
than not occurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reviews intangible assets subject
to amortization at least annually to determine if any adverse conditions exist or a change in circumstances has occurred that would
indicate impairment or a change in the remaining useful life. If the carrying value of an asset exceeds its undiscounted cash flows,
the Company writes down the carrying value of the intangible asset to its fair value in the period identified. If the carrying
value of assets is determined not to be recoverable, the Company records an impairment loss equal to the excess of the carrying
value over the fair value of the assets. The Company's estimate of fair value is based on the best information available, in the
absence of quoted market prices. The Company generally calculates fair value as the present value of estimated future cash flows
that the Company expects to generate from the asset using a discounted cash flow income approach as described above. If the estimate
of an intangible asset's remaining useful life is changed, the Company amortizes the remaining carrying value of the intangible
asset prospectively over the revised remaining useful life.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of November 30, and February 29, 2016 the
Company determined that there were no indicators of impairment of its recorded intangible assets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company periodically issues stock options
and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company
accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the
Financial Accounting Standards Board (FASB) whereas the value of the award is measured on the date of grant and recognized as compensation
expense on the straight-line basis over the vesting period. The Company accounts for stock option and warrant grants issued and
vesting to non-employees in accordance with the authoritative guidance of the FASB whereas the value of the stock compensation
is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the
date at which the necessary performance to earn the equity instruments is complete. Options granted to non-employees are revalued
each reporting period to determine the amount to be recorded as an expense in the respective period. As the options vest, they
are valued on each vesting date and an adjustment is recorded for the difference between the value already recorded and the then
current value on the date of vesting. In certain circumstances where there are no future performance requirements by the non-employee,
option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement
date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the Company's stock option
and warrant grants are estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to
risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation
expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model, and based on actual experience.
The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in
future periods.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company calculates its income tax charge
on the basis of the tax laws enacted at the balance sheet date in the countries where the Company and its subsidiaries operate
and generate taxable income, in accordance with FASB ASC 740, Income Taxes. The Company uses an asset and liability approach for
financial accounting and reporting for income taxes that allows recognition and measurement of deferred tax assets based upon the
likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided
for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more
likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility
is uncertain. The Company's policy is to recognize interest and/or penalties related to income tax matters in income tax expense.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company computes net loss per share in
accordance with FASB ASC 260 Earnings per share. Basic earnings (loss) per share is computed by dividing the net income (loss)
applicable to Common Stockholders by the weighted average number of shares of Common Stock outstanding during the year. Diluted
earnings (loss) per share is computed by dividing the net income (loss) applicable to Common Stockholders by the weighted average
number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive
potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation
if their effect is antidilutive.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the three and nine months ended November
30, 2016 and 2015, the calculations of basic and diluted loss per share are the same because potential dilutive securities would
have an anti-dilutive effect. The potentially dilutive securities consisted of 2,035,004 outstanding warrants as of November 30,
2016. There were no warrants outstanding as of November 30, 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the Financial Accounting Standards
Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers. ASU 2014-09 will
eliminate transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle
based approach for determining revenue recognition. On August 12, 2015, FASB delayed the required implementation to fiscal years
ending after December 15, 2017 but now permitted organizations such the Company to adopt earlier. ASU 2014-09 will require that
companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will
require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer
contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill
a contract. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date
of adoption. Management has determined to adopt ASU 2014-09 in The Company is in the process of evaluating the impact of ASU 2014-09
on the Company's financial statements and disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB issued Accounting
Standards Update (ASU) No. 2016-02, <i>Leases</i>. ASU 2016-02 requires a lessee to record a right of use asset and a corresponding
lease liability on the balance sheet for all leases with terms longer than 12 months. ASU 2016-02 is effective for all interim
and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition
approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest
comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process
of evaluating the impact of ASU 2016-02 on the Company's financial statements and disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2014, the FASB issued Accounting
Standards Update No. 2014-15 (ASU 2014-15), Presentation of Financial Statements - Going Concern (Subtopic 205-10). ASU 2014-15
provides guidance as to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to
continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements for
each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events, considered
in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after
the date that the financial statements are issued (or within one year after the date that the financial statements are available
to be issued when applicable). Management's evaluation should be based on relevant conditions and events that are known and reasonably
knowable at the date that the financial statements are issued (or at the date that the financial statements are available to be
issued when applicable). Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions
and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as
they become due within one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15
is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early
application is permitted. The Company will adopt ASU 2014-15 on the Company's financial statement presentation and disclosures
beginning in 2016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other recent accounting pronouncements issued
by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities
and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future
consolidated financial statements. </p>
242712
82565
86349
71194
6.00
-2539123
-1809756
-1107509
-1071996
-1431614
-737760
106053
32348
60571
60571
204667
2539123
1809756
749407
743839
-2539123
-1809756
-749407
-743839
-2539123
-2581969
-1821261
-767895
-808405
42846
11505
18488
64566
-0.08
-0.07
-0.02
-0.02
31001702
26533037
31390807
29810800
29910800
1
31390807
1
204667
204667
1275340
3826016
128
3825888
106053
534000
242712
82565
-2078931
-1037721
-212880
-196813
315797
-36129
6090
89427
-159185
-412921
-1085351
412921
1085351
3693972
2658312
3826016
2237000
-132044
421312
1175813
610279
-26307
75039
59919
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Common Stock</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended November 30,
2016, the Company sold 1,275,340 shares of its common stock, and 637,670 warrants to acquire shares of common stock at $3.00 per share
resulting in proceeds to the Company of $3,826,016. In addition, 204,667 shares of common stock sold in the previous year were
issued and reclassified to shares outstanding.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Warrants</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has not adopted a formal stock
option plan, however, it has made periodic non-plan grants of warrants for services and financing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended February 29, 2016, the
Company issued warrants to purchase 2,220,000 shares of the Company's common stock at an exercise price of $.80 per share for services.
During the nine months ended November 30, 2016, the Company issued warrants to purchase 75,000 shares of the Company's common stock
at an exercise price of $3.00 per share for services. The total fair value of the warrants granted was determined to be $1,398,288.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three and nine months ended November
30, 2016, the Company amortized $32,348, and $106,053, respectively, of these costs which are included in operating expenses. As
of November 30, 2016, the unamortized balance of these costs was $424,142 which will be amortized over the next two years. The
aggregate intrinsic value of the warrants outstanding as of November 30, 2016, was $4,238,000 calculated as the difference between
the closing market price of $4.20 and the exercise price of the Company's warrants as of November 30, 2016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended November 30, 2016,
the Company issued warrants to purchase 637,670 shares of the Company's common stock at an exercise price of $6.00 per share to
certain investors upon the sale of 1,275,340 common shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below summarizes the Company's warrants
activities:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" id="hdcell" style="border-bottom-style: solid; border-bottom-width: 1pt">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number of</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Warrant<br />
Shares</b></p></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font><br />
<font style="font-size: 10pt"><b>Price Range</b></font><br />
<font style="font-size: 10pt"><b>Per Share</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font><br />
<font style="font-size: 10pt"><b>Average</b></font><br />
<font style="font-size: 10pt"><b>Exercise</b></font><br />
<font style="font-size: 10pt"><b>Price</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" id="ffcell" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Balance, February 29, 2016</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">2,322,334</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">0.80 to $6.00</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1.03</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Granted</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">712,670</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3.00 to $6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5.68</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Forfeited</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(1,000,000</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.80</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.80</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Exercised</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Expired</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Balance, November 30, 2016</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,035,004</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.80 to $6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2.77</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Earned and exercisable, November 30, 2016</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,437,087</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">0.80 to $6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.45</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Unvested, November 30, 2016</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">597,917</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.80 to $3.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1.14</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes information
concerning outstanding and exercisable warrants as of November 30, 2016:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="10" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Warrants Outstanding</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="10" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Warrants Exercisable</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Range of</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise Prices</b></p></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Outstanding</b></p></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Average</b></font><br />
<font style="font-size: 10pt"><b>Remaining</b></font><br />
<font style="font-size: 10pt"><b>Contractual Life</b></font><br />
<font style="font-size: 10pt"><b>(in years)</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font><br />
<font style="font-size: 10pt"><b>Average</b></font><br />
<font style="font-size: 10pt"><b>Exercise Price</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercisable</b></p></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Average</b></font><br />
<font style="font-size: 10pt"><b>Remaining</b></font><br />
<font style="font-size: 10pt"><b>Contractual Life</b></font><br />
<font style="font-size: 10pt"><b>(in years)</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font><br />
<font style="font-size: 10pt"><b>Average</b></font><br />
<font style="font-size: 10pt"><b>Exercise</b></font><br />
<font style="font-size: 10pt"><b>Price</b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td colspan="2" style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 10pt">0.80</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 12%; text-align: right"><font style="font-size: 10pt">1,220,000</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 12%; text-align: right"><font style="font-size: 10pt">1.02</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 11%; text-align: right"><font style="font-size: 10pt">0.80</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 11%; text-align: right"><font style="font-size: 10pt">695,000</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 11%; text-align: right"><font style="font-size: 10pt">1.02</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 11%; text-align: right"><font style="font-size: 10pt">0.80</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">740,004</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.93</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">740,004</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.93</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">6.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">75,000</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.52</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,083</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1.52</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3.00</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of November 30, 2016, and 2015, the Company
had two reportable diverse geographical concentrations, the United States and Canada. Information related to these operating segments,
net of eliminations, consists of the following for the periods below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" id="hdcell" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Nine months ended</b></font><br />
<font style="font-size: 10pt"><b>November 30, 2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>United States</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Canada</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Total </b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" id="ffcell" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Revenue</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Cost of revenue</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">General and administrative</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">561,545</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">472,462</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,034,007</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Research and development</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">472,986</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">744,614</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,217,600</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Depreciation and amortization</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">72,978</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">217,418</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">290,396</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Foreign exchange loss (gain)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(2,880</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(2,880</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Loss from operations</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,107,509</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,431,614</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">2,539,123</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>As at</b></font><br />
<font style="font-size: 10pt"><b>November 30, 2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>United States</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Canada</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b> Total </b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Current assets</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1,268,193</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">493,820</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1,762,013</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Property and equipment, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">133,119</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,419,905</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,553,024</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Intangible assets, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">323,895</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">323,895</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Total assets</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,725,207</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,913,725</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3,638,932</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Current liabilities</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">375,473</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">495,882</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">871,354</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Equity</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">5,396,127</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(2,628,550</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">2,767,577</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Total liabilities and equity</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">5,771,600</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">(2,132,668</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">3,638,932</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Nine months ended</b></font><br />
<font style="font-size: 10pt"><b>November 30, 2015</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>United States</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Canada</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Total </b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Revenue</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Cost of revenue</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">General and administrative</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">829,080</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">305,906</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,134,986</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Research and development</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">153,753</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">346,171</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">499,924</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Depreciation and amortization</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">26,472</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">78,350</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">104,822</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Cost of reverse merger</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">60,571</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">60,571</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Foreign exchange loss (gain)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">2,120</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">7,333</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">9,453</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Loss from operations</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,071,996</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">737,760</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,809,756</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>As at</b></font><br />
<font style="font-size: 10pt"><b>November 30, 2015</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>United States</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Canada</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b> Total </b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Current assets</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">847,415</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">177,001</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1,024,416</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Property and equipment, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">153,033</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">825,891</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">978,924</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Intangible assets, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">412,900</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">412,900</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Total assets</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,413,348</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,002,892</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,416,240</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Current liabilities</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">204,102</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">832,545</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,036,647</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Equity</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">2,159,246</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(779,653</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">1,379,593</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Total liabilities and equity</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">2,363,348</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">52,892</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">2,416,240</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of November 30, 2016, and 2015, the Company
had two reportable diverse geographical concentrations, the United States and Canada. Information related to these operating segments,
net of eliminations, consists of the following for the periods below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" id="hdcell" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Nine months ended</b></font><br />
<font style="font-size: 10pt"><b>November 30, 2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>United States</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Canada</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Total </b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" id="ffcell" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Revenue</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Cost of revenue</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">General and administrative</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">561,545</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">472,462</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,034,007</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Research and development</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">472,986</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">744,614</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,217,600</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Depreciation and amortization</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">72,978</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">217,418</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">290,396</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Foreign exchange loss (gain)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(2,880</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(2,880</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Loss from operations</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,107,509</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,431,614</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">2,539,123</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>As at</b></font><br />
<font style="font-size: 10pt"><b>November 30, 2016</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>United States</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Canada</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b> Total </b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Current assets</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1,268,193</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">493,820</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1,762,013</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Property and equipment, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">133,119</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,419,905</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,553,024</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Intangible assets, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">323,895</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">323,895</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Total assets</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,725,207</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,913,725</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3,638,932</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Current liabilities</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">375,473</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">495,882</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">871,354</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Equity</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">5,396,127</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(2,628,550</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">2,767,577</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Total liabilities and equity</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">5,771,600</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">(2,132,668</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">3,638,932</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Nine months ended</b></font><br />
<font style="font-size: 10pt"><b>November 30, 2015</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>United States</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Canada</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Total </b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Revenue</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Cost of revenue</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">General and administrative</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">829,080</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">305,906</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,134,986</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Research and development</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">153,753</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">346,171</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">499,924</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Depreciation and amortization</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">26,472</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">78,350</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">104,822</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Cost of reverse merger</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">60,571</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">60,571</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Foreign exchange loss (gain)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">2,120</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">7,333</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">9,453</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Loss from operations</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,071,996</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">737,760</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">1,809,756</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="6" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>As at</b></font><br />
<font style="font-size: 10pt"><b>November 30, 2015</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>United States</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b>Canada</b></font></td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td colspan="2" style="border-bottom-style: solid; border-bottom-width: 1pt; text-align: center"><font style="font-size: 10pt"><b> Total </b></font></td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td colspan="2" style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Current assets</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">847,415</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">177,001</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">1,024,416</font></td>
<td style="vertical-align: bottom; width: 1%; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Property and equipment, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">153,033</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">825,891</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">978,924</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Intangible assets, net</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">412,900</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">412,900</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Total assets</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,413,348</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,002,892</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,416,240</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Current liabilities</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">204,102</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">832,545</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,036,647</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Equity</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">2,159,246</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">(779,653</font></td>
<td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: solid; border-bottom-width: 1pt; text-align: right"><font style="font-size: 10pt">1,379,593</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Total liabilities and equity</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">2,363,348</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">52,892</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; text-align: justify"> </td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: justify"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; border-bottom-style: double; border-bottom-width: 2.25pt; text-align: right"><font style="font-size: 10pt">2,416,240</font></td>
<td style="vertical-align: bottom; text-align: justify"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
2010-03-11
Nevada
<font style="font: 10pt Times New Roman, Times, Serif">Company offered,
sold and issued 23,257,500 shares of common stock in consideration for all the issued and outstanding shares in Loop Holdings.
0.781
25000000
16000
60571
35243
16000
9328
1:4
445050
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr>
<td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 4%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(i)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">CDN$200,000
when an average of twenty (20) metric tons per day of terephthalic acid meeting the is produced by the Company for twenty
(20) operating days;</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(ii)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">CDN$200,000
when an average of thirty (30) metric tons per day of terephthalic acid is produced by the Company for thirty (30) operating
days;</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(iii)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">CDN$200,000
when an average of sixty (60) metric tons per day of terephthalic acid is produced by the Company for sixty (60) operating
days; and</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(iv)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">CDN$200,000
when an average of one hundred (100) metric tons per day of terephthalic acid is produced by the Company for sixty (60) operating
days.</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr>
<td style="vertical-align: top; width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 4%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(a)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">10%
of gross profits on the sale of all products derived by the Company from the technology assigned to the Company under the
agreement;</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(b)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">10%
of any license fee paid to the Company in respect of any licensing or other right to use the technology assigned to the Company
and granted to a third party by the Assignee;</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(c)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">5%
of any royalty or other similar payment made to the Company by a third party to whom a license or other right to use the technology
assigned to the Company has been granted by the Company; and</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(d)</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">5%
of any royalty or other similar payment made to the Company by a third party in respect of a sub-license or other right to
use the technology assigned to the Company granted by the third party.</font></td></tr>
</table>
15000
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr>
<td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 4%; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(i)
</font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000
shares of common stock shall be issued to Mr. Solomita when the Company's securities are listed on an exchange or the OTCQX
tier of the OTC Markets;</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(ii)
</font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000
shares of common stock shall be issued to Mr. Solomita when the Company executes a contract for a minimum quantity of 25,000
M/T of PTA/EG or a PET;</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(iii)
</font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000
shares of common stock shall be issued to Mr. Solomita when the Company's first full-scale production facility is in commercial
operation; and</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(iv)
</font></td>
<td style="vertical-align: top; font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000
shares of common stock shall be issued to Mr. Solomita when the Company's second full-scale production facility is in commercial
operation.</font></td></tr>
</table>
597917
0.80
6.00
0.80
6.00
0.80
3.00
1.14
1275340
1275340