Intellipharmaceutics International Inc. (IPCI)

[Samsa]

Weezhul, according to the company financials the debentures are handled as EQUITY with an off setting liability. This is why I keep saying that the reclassification of the arrants to shares in August will help the company meet the share holder equity requirement.

see below:

In fiscal 2013, the Company issued an unsecured convertible debenture in the principal amount of $1.5 million (the
“Debenture”) as described in Note 7. At issuance, the conversion option was bifurcated from its host contract and the fair value
of the conversion option was characterized as an embedded derivative upon issuance as it met the criteria of ASC topic 815
Derivatives and Hedging. Subsequent changes in the fair value of the embedded derivative were recorded in the consolidated
statements of operations and comprehensive loss. The proceeds received from the Debenture less the initial amount allocated to
the embedded derivative were allocated to the liability and were accreted over the life of the Debenture using the imputed rate
of interest. The Company changed its functional currency effective December 1, 2013 such that the conversion option no
longer met the criteria for bifurcation and was prospectively reclassified to shareholders’ equity under ASC Topic 815 at the
U.S. dollar translated amount at December 1, 2013

also see this in regards to why I feel the reclassification in August will now be carried as Shareholder equity;

The Company changed its functional currency
effective December 1, 2013 such that these warrants met the criteria for prospective equity classification in ASC topic 480, and
the U.S. dollar translated amount of the warrant liability at December 1, 2013 became the amount reclassified to equity.