Seychelle Environmental (SYEV) 10-Q 17 Jan 17 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Nov. 30, 2016shares
Document And Entity Information
Entity Registrant Name	SEYCHELLE ENVIRONMENTAL TECHNOLOGIES INC /CA
Entity Central Index Key	1,056,757
Document Type	10-Q
Document Period End Date	Nov. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--02-28
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	26,574,313
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Nov. 30, 2016	Feb. 29, 2016
ASSETS
Cash and cash equivalents	$ 493,463	$ 2,062,873
Accounts receivable, net of allowance for doubtful accounts and sales returns of $22,200 and $125,800, respectively	859,737	224,235
Related party receivables	27,350	39,575
Inventory, net	1,991,536	2,511,458
Prepaid expenses, deposits, and other current assets	131,928	115,440
Total current assets	3,504,014	4,953,581
Property and equipment, net	181,323	222,926
Intangible assets, net	50,290	51,343
Deferred tax assets	1,005,201	613,716
Other assets	84,812	15,651
Total assets	4,825,640	5,857,217
Current Liabilities:
Accounts payable and accrued expenses	315,310	415,226
Income taxes payable	134,181	28,219
Customer deposits	64,731	317,145
Capital lease obligation, current portion	4,802	9,390
Total current liabilities	519,024	769,980
Long term Liabilities:
Capital lease obligation, net of current	15,758	19,439
Total liabilities	534,782	789,419
STOCKHOLDERS' EQUITY
Preferred stock, 6,000,000 shares authorized, none issued or outstanding
Common stock $0.001 par value, 50,000,000 shares authorized, 26,640,313 and 26,390,313 issued and outstanding at August 31, 2016 and February 29, 2016, respectfully	26,641	26,391
Additional paid-in capital	8,944,368	8,827,118
Accumulated deficit	(4,650,471)	(3,773,431)
Less treasury stock at cost (66,000 and 36,000 shares at May 31, 2016 and February 29, 2016 respectively)	(29,680)	(12,280)
Total Stockholders' Equity	4,290,858	5,067,798
Total liabilities and stockholders' equity	$ 4,825,640	$ 5,857,217

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Nov. 30, 2016	Feb. 29, 2016
CURRENT ASSETS
Net of allowance for doubtful accounts	$ 22,200	$ 125,800
STOCKHOLDERS' EQUITY
Preferred stock, authorized shares	6,000,000	6,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Preferred stock, par value	$ 0	$ 0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	50,000,000	50,000,000
Common stock, issued shares	26,640,313	26,390,313
Common stock, outstanding shares	26,640,313	26,390,313

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Condensed Consolidated Statements Of Income
Sales	$ 1,257,844	$ 3,246,064	$ 2,885,212	$ 8,318,076
Cost of sales	1,003,395	1,696,850	1,950,312	4,084,591
Gross profit	254,449	1,549,214	934,900	4,233,485
OPERATING EXPENSES
Selling, General, and Administrative Expenses	493,286	651,839	1,831,211	1,771,355
Legal expenses	29,743	308,494	312,852	344,078
Depreciation and Amortization	19,821	23,280	62,651	52,574
Total operating expenses	542,850	983,613	2,206,714	2,168,007
Income (Loss) from Operations	(288,401)	565,601	(1,271,814)	2,065,478
OTHER INCOME (EXPENSE)
Interest income	7	9	23	237
Interest expense	(621)	(304)	(1,624)	(437)
Other income	(1,068)	(1,533)	11,163	(921)
Total other income (expense)	(1,682)	(1,828)	9,562	(1,121)
Income (loss) before income tax benefit (expense)	(290,083)	563,773	(1,262,252)	2,064,357
Income tax benefit (expense)	5,853	(192,811)	385,211	(705,820)
Net income (loss)	$ (284,230)	$ 370,962	$ (877,041)	$ 1,358,537
BASIC INCOME (LOSS) PER SHARE	$ (0.01)	$ 0.01	$ (0.03)	$ 0.05
DILUTED INCOME (LOSS) PER SHARE	$ (0.01)	$ 0.01	$ (0.03)	$ 0.05
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	26,574,313	26,372,003	26,574,313	26,139,612
DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	26,574,313	29,630,705	26,574,313	28,779,718

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Nov. 30, 2016	Nov. 30, 2015
OPERATING ACTIVITIES:
Net income (loss)	$ (877,041)	$ 1,358,537
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	62,651	52,574
Loss on disposal of assets	5,586
Stock-based compensation	117,500	358,497
Provision for doubtful accounts and sales returns	(103,652)
Deferred tax expense (benefit)	(391,485)	428,620
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(531,850)	(553,798)
Increase in related party receivables	12,225	(22,404)
Increase in inventory	519,922	(922,132)
Increase in prepaid expenses, deposits and other assets	(85,647)	13,868
Increase (decrease) in accounts payable and accrued expenses	(99,916)	81,334
Decrease in accrued legal and settlement fees		(532,103)
Decrease in income taxes payable	(252,414)	277,200
Increase (decrease) in customer deposits	105,962	(106,308)
Net Cash Used In Operating Activities	(1,518,159)	433,885
INVESTING ACTIVITIES:
Purchase of property and equipment	(25,582)	(66,191)
Net Cash Used In Investing Activities	(25,582)	(66,191)
FINANCING ACTIVITIES:
Repayment of capital lease obligation	(17,400)	(12,280)
Repurchase of treasury stock	(8,269)	(3,596)
Net Cash Used in Financing Activities	(25,669)	(15,876)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,569,410)	351,818
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	2,062,873	1,514,534
CASH AND CASH EQUIVALENTS AT END OF PERIOD	493,463	1,866,352
Non-cash investing and financing activities:
Acquisition of equipment under capital leases		26,000
Cash paid for:
Interest	1,624	437
Income taxes	$ 252,414

1.BASIS OF PRESENTATION

1.BASIS OF PRESENTATION	9 Months Ended
	Nov. 30, 2016
Notes to Financial Statements
BASIS OF PRESENTATION	NOTE 1: CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The accompanying condensed consolidated financial statements have been prepared by Seychelle Environmental Technologies, Inc., and subsidiaries (the "Company") without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at November 30, 2016, and for all periods presented herein, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended February 29, 2016. The results of operations for the periods ended November 30, 2016 and 2015 are not necessarily indicative of the operating results for the full fiscal years. The summary of significant accounting policies of the Company is presented to assist in understanding the Company's consolidated financial statements. The consolidated financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of these condensed consolidated financial statements and the February 29, 2016 consolidated financials included in the Form 10-K filed on June 16, 2016. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

2. INCOME (LOSS) PER SHARE

2. INCOME (LOSS) PER SHARE	9 Months Ended
	Nov. 30, 2016
Earnings Per Share [Abstract]
INCOME (LOSS) PER SHARE	NOTE 2: INCOME (LOSS) PER SHARE Basic income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during each period presented. Diluted income (loss) per share is determined using the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method. For the nine months ended November 30, 2016 2015 Numerator: Net income (loss) available to common shareholders $ (877,041 ) $ 1,358,537 Weighted average shares – basic 26,574,313 26,139,612 Net income (loss) per share – basic $ (0.03 ) $ 0.05 Dilutive effect of common stock equivalents: Warrants - 2,640,106 Weighted average shares – diluted 26,574,313 28,779,718 Net income (loss) per share – diluted $ (0.03 ) $ 0.05 For the three months ended November 30, 2016 2015 Numerator: Net income (loss) available to common shareholders $ (284,230 ) $ 370,962 Weighted average shares – basic 26,574,313 26,372,003 Net income (loss) per share – basic $ (0.01 ) $ 0.01 Dilutive effect of common stock equivalents: Warrants - 3,258,701 Weighted average shares – diluted 26,574,313 29,630,705 Net income (loss) per share – diluted $ (0.01 ) $ 0.01

3. COMMON STOCK AND STOCK PURCH

3. COMMON STOCK AND STOCK PURCHASE WARRANTS	9 Months Ended
	Nov. 30, 2016
Notes to Financial Statements
COMMON STOCK AND STOCK PURCHASE WARRANTS	NOTE 3: COMMON STOCK AND STOCK PURCHASE WARRANTS Common Stock During the nine month period ended November 30, 2016, 250,000 shares of fully vested restricted common stock were issued by the Company to an employee. The shares were valued at the closing price of the Company's common stock at the date of the grant for a total expense of $117,500. No common shares were issued during the three and nine month period ended November 30, 2016. During the three month period ended November 30, 2015, 120,000 shares of restricted common stock were issued to employees and officers of the Company. Additionally, 100,000 and 10,000 shares of restricted common stock were issued to TAM (as defined in Note 7) and vendors, respectively. During the nine month period ended November 30, 2015, 235,000 shares of restricted common stock were issued to employees and officers of the Company. Additionally, during this period, 200,000, 30,000, and 10,000 shares of restricted common stock were issued to TAM, vendors, and TAM's trustee, respectively. The shares were fully vested upon issuance. The value recorded in the accompanying condensed consolidated financial statements was based on the estimated fair value of the stock on the date of the grant and aggregated $73,600 and $156,600 for the three and nine month periods ended November 30, 2015, respectively. During the three months ended May 31, 2016 and November 30, 2015, the Company repurchased 30,000 and 36,000 shares of common stock respectively, at a cost of $17,400 and $12,280 respectively. These repurchases have been recorded as treasury stock and reflected as reductions of stockholders' equity on the accompanying condensed consolidated balance sheets. Warrants The Company has previously granted warrants to selected members of management and determined the estimated value of warrants granted using the Black-Scholes option pricing model. The warrants became fully vested during the year ended February 29, 2016. The amount of the expense charged to operations for warrants was $67,200 and $201,400 for the three and nine month periods ended November 30, 2015, respectively. There was no charge during the three or nine months ended November 30, 2016. A summary of warrant activity for the nine months ended November 30, 2016 is as follows: Weighted- Average Warrants Exercise Outstanding Price Outstanding at February 29, 2016 6,407,221 0.21 Granted - - Exercised - - Forfeited - 0.21 Outstanding at November 30, 2016 6,407,221 0.21 Vested at November 30, 2016 6,407,221 0.21 Exercisable at November 30, 2016 6,407,221 0.21 The following table summarizes significant ranges of outstanding warrants as of November 30, 2016: Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Average Average Average Exercise Number Remaining Exercise Number Exercise Price Outstanding Life (Years) Price Outstanding Price $0.21 6,407,221 4.29 $0.21 6,407,221 $0.21

4. INVENTORY

4. INVENTORY	9 Months Ended
	Nov. 30, 2016
Notes to Financial Statements
INVENTORY	NOTE 4: INVENTORY The Company's inventory consisted of the following at November 30, 2016 and February 29, 2016: November 30, 2016 February 29, 2016 Raw materials $ 1,332,713 $ 1,084,782 Finished goods 698,823 1,466,676 2,031,536 2,551,458 Reserve for obsolete and slow moving inventory (40,000 ) (40,000 ) $ 1,991,536 $ 2,511,4548

5. INCOME TAXES

5. INCOME TAXES	9 Months Ended
	Nov. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 5: INCOME TAXES For the three and nine month periods ended November 30, 2016, the Company incurred tax net operating losses ("NOL's") approximating $284,000 and $877,000, respectively. Such NOL's result in deferred tax assets of approximately $385,000 at November 30, 2016. Additionally, deferred tax assets at November 30, 2016 consists of stock compensation and temporary differences related to certain accrued expenses resulting in total deferred tax assets of approximately $1,005,000. In assessing the realization of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment. At November 30, 2016, management determined that a deferred tax asset valuation allowance was not necessary due to the Company's profitability in recent years. Management will continue to evaluate the need for a deferred tax asset valuation allowance going forward each reporting period.

6. CONCENTRATIONS

6. CONCENTRATIONS	9 Months Ended
	Nov. 30, 2016
Notes to Financial Statements
CONCENTRATIONS	NOTE 6: CONCENTRATIONS Sales to one customer accounted for 38% and 37%, respectively, of sales for the three and nine month period ended November 30, 2016. Accounts receivable from this customer amounted to $518,242 or 59% of accounts receivable as of November 30, 2016. Sales to two customers accounted for 61% and 64%, respectively, of sales for the three and nine month period ended November 30, 2015. Accounts receivable from these two customers amounted to $702,797 or 84% of accounts receivable as of November 30, 2015.

7. RELATED PARTY TRANSACTIONS

7. RELATED PARTY TRANSACTIONS	9 Months Ended
	Nov. 30, 2016
Notes to Financial Statements
RELATED PARTY TRANSACTIONS	NOTE 7: RELATED PARTY TRANSACTIONS During the three month periods ended November 30, 2016 and 2015, payments totaling $12,350 and $37,500, respectively, and during the nine month periods ended November 30, 2016 and 2015, payments totaling $49,090 and $112,500 respectively, were made to TAM Irrevocable Trust ("TAM") for consulting services, in which Cari Beck, is a trustee, as well as a Director of the Company and the daughter of the Company's CEO, Founder and President. During the three month periods ended November 30, 2016 and 2015, TAM purchased, on behalf of the Company, $61,884 and $185,000 respectively, of raw materials, respectively, from a vendor with which it already had a business relationship. During the nine month periods ended November 30, 2016 and 2015, TAM purchased, on behalf of the Company, $86,734 and $393,000, respectively, of raw materials, and paid $0 and $3,500, respectively, for related tooling to a vendor with which it already had a business relationship. As of November 30, 2016 and February 29, 2016, the Company had receivables from employees of $27,350 and $39,575. These amounts are being repaid through direct payroll withdrawals.

8. COMMITMENTS AND CONTINGENCIE

8. COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Nov. 30, 2016
Notes to Financial Statements
COMMITMENTS AND CONTINGENCIES	NOTE 8: COMMITMENTS AND CONTINGENCIES Leases The Company is obligated on three operating leases at November 30, 2016: two in San Juan Capistrano, California (as previously reported in the Company's Form 10-K/A filed with the Securities and Exchange Commission for the year ended February 29, 2016) and one (new) in Aliso Viejo, California. The Company moved its corporate headquarters from San Juan Capistrano to Aliso Viejo during August 2016 and combined its corporate offices with warehouse and production space, which were previously in separate locations. The Company has sub-leased its prior office space location to a third party in connection with the move, and is attempting to sub-lease the remaining San Juan Capistrano location to other third parties. The sub-lease was effective September 1, 2016, provides the Company with rental income of $6,505 per month, and expires July 31, 2017. The Company's Aliso Viejo lease was effective August 1, 2016, requires monthly payments of $19,446, with graduated annual increases, and expires in July 2021. Litigation On September 26, 2016, the Company was served with a complaint by a former employee alleging breach of contract. The Company believes the case is without merit and intends to vigorously defend itself in this matter. No outcome or range of loss can be determined at this time.

9. SUBSEQUENT EVENTS

9. SUBSEQUENT EVENTS	9 Months Ended
	Nov. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9: SUBSEQUENT EVENTS There are no subsequent events to report.

2. INCOME (LOSS) PER SHARE (Tab

2. INCOME (LOSS) PER SHARE (Tables)	9 Months Ended
	Nov. 30, 2016
Earnings Per Share [Abstract]
Income (loss) per share	For the nine months ended November 30, 2016 2015 Numerator: Net income (loss) available to common shareholders $ (877,041 ) $ 1,358,537 Weighted average shares – basic 26,574,313 26,139,612 Net income (loss) per share – basic $ (0.03 ) $ 0.05 Dilutive effect of common stock equivalents: Warrants - 2,640,106 Weighted average shares – diluted 26,574,313 28,779,718 Net income (loss) per share – diluted $ (0.03 ) $ 0.05 For the three months ended November 30, 2016 2015 Numerator: Net income (loss) available to common shareholders $ (284,230 ) $ 370,962 Weighted average shares – basic 26,574,313 26,372,003 Net income (loss) per share – basic $ (0.01 ) $ 0.01 Dilutive effect of common stock equivalents: Warrants - 3,258,701 Weighted average shares – diluted 26,574,313 29,630,705 Net income (loss) per share – diluted $ (0.01 ) $ 0.01

3. COMMON STOCK AND STOCK PUR16

3. COMMON STOCK AND STOCK PURCHASE WARRANTS (Tables)	9 Months Ended
	Nov. 30, 2016
Common Stock Purchase Warrants Tables
Summary of warrant activity	A summary of warrant activity for the nine months ended November 30, 2016 is as follows: Weighted- Average Warrants Exercise Outstanding Price Outstanding at February 29, 2016 6,407,221 0.21 Granted - - Exercised - - Forfeited - 0.21 Outstanding at November 30, 2016 6,407,221 0.21 Vested at November 30, 2016 6,407,221 0.21 Exercisable at November 30, 2016 6,407,221 0.21
Significant ranges of outstanding warrants	The following table summarizes significant ranges of outstanding warrants as of November 30, 2016: Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Average Average Average Exercise Number Remaining Exercise Number Exercise Price Outstanding Life (Years) Price Outstanding Price $0.21 6,407,221 4.29 $0.21 6,407,221 $0.21

4. INVENTORY (Tables)

4. INVENTORY (Tables)	9 Months Ended
	Nov. 30, 2016
Inventory Tables
Inventory	The Company's inventory consisted of the following at November 30, 2016 and February 29, 2016: November 30, 2016 February 29, 2016 Raw materials $ 1,332,713 $ 1,084,782 Finished goods 698,823 1,466,676 2,031,536 2,551,458 Reserve for obsolete and slow moving inventory (40,000 ) (40,000 ) $ 1,991,536 $ 2,511,4548

2. INCOME (LOSS) PER SHARE (Det

2. INCOME (LOSS) PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Numerator:
Net income (loss) available to common shareholders	$ (284,230)	$ 370,962	$ (877,041)	$ 1,358,537
Weighted average shares, basic	26,574,313	26,372,003	26,574,313	26,139,612
Net income (loss) per share - basic	$ (0.01)	$ 0.01	$ (0.03)	$ 0.05
Dilutive effect of common stock equivalents:
Warrants		3,258,701		2,640,106
Weighted average shares, diluted	26,574,313	29,630,705	26,574,313	28,779,718
Net income (loss) per share - diluted	$ (0.01)	$ 0.01	$ (0.03)	$ 0.05

3. COMMON STOCK AND STOCK PUR19

3. COMMON STOCK AND STOCK PURCHASE WARRANTS (Details) - $ / shares	9 Months Ended
	Nov. 30, 2016	Feb. 29, 2016
Common Stock Purchase Warrants Details
Warrants Outstanding	6,407,221
Warrants, Outstanding	6,407,221
Vested	6,407,221
Exercisable	6,407,221
Warrants Weighted Average Exercise Price per Share, Outstanding	$ 0.21
Warrants Weighted Average Exercise Price per Share, Granted	0.21
Warrants Weighted Average Exercise Price per Share, Exercised	0.21
Warrants Weighted Average Exercise Price per Share, Forfeited	0.21
Warrants Weighted Average Exercise Price per Share, Outstanding	0.21
Weighted Average Exercise Price Warrants Vested	0.21	$ 0.21
Weighted Average Exercise Price Warrants Exercisable	$ 0.21	$ 0.21

4. INVENTORY (Details)

4. INVENTORY (Details) - USD ($)	Nov. 30, 2016	Feb. 29, 2016
Inventory Details
Raw materials	$ 1,332,713	$ 1,084,782
Finished goods	698,823	1,466,676
Inventory	2,031,536	2,551,458
Reserve for obsolete and slow moving inventory	(40,000)	(40,000)
Inventory, Net	$ 1,991,536	$ 2,511,458

3. COMMON STOCK AND STOCK PUR21

3. COMMON STOCK AND STOCK PURCHASE WARRANTS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Common Stock Purchase Warrants Details Narrative
Expense charged to operations for warrants	$ 0	$ 67,200	$ 0	$ 134,200

5. INCOME TAXES (Details Narrat

5. INCOME TAXES (Details Narrative)	3 Months Ended	9 Months Ended
	Nov. 30, 2016USD ($)	Nov. 30, 2016USD ($)
Income Tax Disclosure [Abstract]
Net operating loss	$ 284,000	$ 877,000
Deferred tax assets	385,000	385,000
Total deferred tax assets	$ 1,005,000	$ 1,005,000

6. CONCENTRATIONS (Details Narr

6. CONCENTRATIONS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Concentrations Details Narrative
Percentage of sales attributable to one customer	38.00%		37.00%
Total dollar amount of accounts receivable attributable to one customers at the end of the period				$ 518,242
Percentage of accounts receivable attributable to one customer				59.00%
Percentage of sales attributable to two customers		61.00%		64.00%
Accounts receivable from two customers				$ 702,797
Percentage of sales attributable to two customers as of the end of the period				84.00%

7. RELATED PARTY TRANSACTIONS (

7. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015	Feb. 29, 2016
Related Party Transactions Details Narrative
Payments to Irrevocable Trust for consulting services in which Cari Beck is a trustee as well as the daughter of the Company's President	$ 12,350	$ 37,500	$ 49,090	$ 112,500
Payment to TAM for future purchase of intellectual property retained by TAM	61,884	185,000	86,734	393,000
Raw materials purchased	0	$ 3,500	0	3,500
Tooling from vendor				$ 3,500
Receivables due from employees	$ 27,350		$ 27,350		$ 39,575

8. COMMITMENTS AND CONTINGENC25

8. COMMITMENTS AND CONTINGENCIES (Details)	9 Months Ended
	Nov. 30, 2016USD ($)
Commitments And Contingencies Details
Lease payments per month	$ 19,446