Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	May 31, 2016	May 31, 2015
Cash Flows from Operating Activities:
Net loss	$ (990,374)	$ (773,045)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization expense-loan fees		48,095
Interest income-amortization of original issue discount	(35,174)
Interest expense on warrant issuance	26,250
Interest expense-debt discount	258,867	84,178
Loss on issuance of convertible debt	71,061	301,309
Loss on conversion of convertible debt	154,694
Change in fair value of bifurcated embedded conversion options and derivative warrant liabilities	(10,206)	(182,776)
Stock-based compensation	20,000	251,833
Stock issued for loan fees		50,314
Changes in operating assets and liabilities:
Accounts receivable		(16,919)
Other receivables	(7,373)
Inventories		25,900
Other assets		(179)
Accounts payable and accrued expenses	40,382	81,339
Accounts payable and accrued expenses, related parties	109,510	(47,024)
Accrued interest on convertible and promissory notes payable	162,322	6,610
Net cash used in operating activities	(200,041)	(170,365)
Cash Flows from Investing Activities:
Purchase of note receivable	(345,000)	(150,000)
Principal payments received on note receivable	19,674
Net cash used in investing activities	(325,326)	(150,000)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock	5,000	2,000
Payments to related parties		(7,335)
Proceeds from issuance of convertible notes	157,000	330,000
Payments of convertible notes payable	(5,000)
Proceeds from issuance of notes payable	355,000
Proceeds from issuance of notes payable, related party	51,625
Payments of notes payable	(20,250)	(5,000)
Payments of notes payable, related party	(15,851)
Net cash provided by financing activities	527,524	319,665
Net change in cash	2,157	(700)
Cash - beginning of the period	405	2,247
Cash - ending of the period	2,562	1,547
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	2,200
Supplemental schedule of non-cash investing and financing activities:
Decrease in accounts payable and accrued expenses-related party in connection with the purchase of a third-party note receivable	25,000
Decrease in notes payable in connection with reduction in note receivable	(10,000)
Common stock issued for conversion of debt and accrued interest	183,048
Decrease in notes payable in connection with common stock issued	(7,330)
Decrease in accrued interest in connection with common stock issued	$ (21,024)
Issuance of preferred stock to shareholder for payment of accrued expenses, related party		76,900
Warrants issued in connection with notes payable	$ 30,987

AVALANCHE INTERNATIONAL, CORP. 10-Q