Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 31, 2019 | Oct. 10, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | SEYCHELLE ENVIRONMENTAL TECHNOLOGIES INC /CA | |
Entity Central Index Key | 0001056757 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-28 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Interactive Data Current | No | |
Entity Incorporation, State or Country Code | NV | |
Entity File Number | 0-29373 | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,640,313 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 2,175,966 | $ 2,078,122 |
Accounts receivable, net of allowance for doubtful accounts of $1,004 and $4,614, Respectively | 354,609 | 352,818 |
Related party receivables | 25,700 | 31,472 |
Inventory, net | 916,524 | 972,497 |
Prepaid expenses, deposits, and other current assets | 82,466 | 129,049 |
Total current assets | 3,555,265 | 3,563,958 |
PROPERTY AND EQUIPMENT, NET | 98,202 | 118,154 |
OTHER ASSETS | ||
Other assets | 66,670 | 66,670 |
Right-of-use lease asset-operating | 447,405 | 0 |
Total assets | 4,167,542 | 3,748,782 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 275,479 | 267,641 |
Customer deposits | 53,350 | 30,567 |
Lease liability, current portion | 240,495 | 5,938 |
Total current liabilities | 569,324 | 304,146 |
Long-term liabilities: | ||
Lease liability, net of current portion | 234,615 | 3,182 |
Total long-term liabilities | 234,615 | 3,182 |
Total Liabilities | 803,939 | 307,328 |
Stockholders' equity: | ||
Preferred stock, 6,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock $0.001 par value, 50,000,000 shares authorized, 26,640,313 issued and outstanding | 26,641 | 26,641 |
Additional paid-in capital | 8,944,368 | 8,944,368 |
Accumulated deficit | (5,577,726) | (5,499,875) |
Less treasury stock at cost 66,000 shares | (29,680) | (29,680) |
Total stockholders' equity | 3,363,603 | 3,441,454 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,167,542 | $ 3,748,782 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
CURRENT ASSETS | ||
Net of allowance for doubtful accounts | $ 1,004 | $ 4,614 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, authorized shares | 6,000,000 | 6,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 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 | 26,640,313 |
Common stock, outstanding shares | 26,640,313 | 26,640,313 |
Treasury stock | 66,000 | 66,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Statement [Abstract] | ||||
Sales | $ 790,198 | $ 735,677 | $ 1,471,020 | $ 1,869,578 |
Cost of sales | 532,721 | 351,073 | 816,472 | 954,513 |
Gross profit | 257,477 | 384,604 | 654,548 | 915,065 |
Operating expenses | ||||
Selling, general, and administrative | 370,129 | 498,309 | 705,020 | 922,771 |
Depreciation and amortization | 11,894 | 13,532 | 24,813 | 28,003 |
Total operating expenses | 382,023 | 511,841 | 729,833 | 950,774 |
Loss from operations | (124,546) | (127,237) | (75,285) | (35,709) |
Other income (expense) | ||||
Interest income (expense) | 7 | (485) | (739) | (1,038) |
Other expense | (303) | (1,901) | (227) | (84) |
Total other expense, net | (296) | (2,386) | (966) | (1,122) |
Loss before income tax expense | (124,842) | (129,623) | (76,251) | (36,831) |
Income tax expense | (800) | 0 | (1,600) | 0 |
Net loss | $ (125,642) | $ (129,623) | $ (77,851) | $ (36,831) |
BASIC LOSS PER SHARE | $ 0 | $ 0 | $ 0 | $ 0 |
DILUTED LOSS PER SHARE | $ 0 | $ 0 | $ 0 | $ 0 |
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 26,574,313 | 26,574,313 | 26,574,313 | 26,574,313 |
DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 26,574,313 | 26,574,313 | 26,574,313 | 26,574,313 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Begnning Balance, Shares at Feb. 28, 2018 | 26,640,313 | 66,000 | |||
Begnning Balance, Amount at Feb. 28, 2018 | $ 26,641 | $ (29,680) | $ 8,944,368 | $ (5,259,746) | $ 3,681,583 |
Net income (loss) | (36,831) | (36,831) | |||
Ending Balance, Shares at Aug. 31, 2018 | 26,640,313 | 66,000 | |||
Ending Balance, Amount at Aug. 31, 2018 | $ 26,641 | $ (29,680) | 8,944,368 | (5,296,577) | 3,644,752 |
Begnning Balance, Shares at May. 31, 2018 | 26,640,313 | 66,000 | |||
Begnning Balance, Amount at May. 31, 2018 | $ 26,641 | $ (29,680) | 8,944,368 | (5,166,957) | 3,774,372 |
Net income (loss) | (129,623) | (129,623) | |||
Ending Balance, Shares at Aug. 31, 2018 | 26,640,313 | 66,000 | |||
Ending Balance, Amount at Aug. 31, 2018 | $ 26,641 | $ (29,680) | 8,944,368 | (5,296,577) | 3,644,752 |
Begnning Balance, Shares at Feb. 28, 2019 | 26,640,313 | 66,000 | |||
Begnning Balance, Amount at Feb. 28, 2019 | $ 26,641 | $ (29,680) | 8,944,368 | (5,499,875) | 3,441,454 |
Net income (loss) | (77,851) | (77,851) | |||
Ending Balance, Shares at Aug. 31, 2019 | 26,640,313 | 66,000 | |||
Ending Balance, Amount at Aug. 31, 2019 | $ 26,641 | $ (29,680) | 8,944,368 | (5,577,726) | 3,363,603 |
Begnning Balance, Shares at May. 31, 2019 | 26,640,313 | 66,000 | |||
Begnning Balance, Amount at May. 31, 2019 | $ 26,641 | $ (29,680) | 8,944,368 | (5,452,084) | 3,489,245 |
Net income (loss) | (125,642) | (125,642) | |||
Ending Balance, Shares at Aug. 31, 2019 | 26,640,313 | 66,000 | |||
Ending Balance, Amount at Aug. 31, 2019 | $ 26,641 | $ (29,680) | $ 8,944,368 | $ (5,577,726) | $ 3,363,603 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (77,851) | $ (36,831) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 24,814 | 28,003 |
(Recovery) provision for doubtful accounts | (3,610) | 3,153 |
Accretion of right-of-use lease asset | (516) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,819 | 231,959 |
Related party receivables | 5,772 | 2,056 |
Inventory | 55,972 | (75,059) |
Prepaid expenses, deposits and other current assets | 46,584 | 57,567 |
Accounts payable and accrued expenses | 29,837 | (207,705) |
Customer deposits | 22,783 | (150,877) |
Net cash provided by (used in) operating activities | 105,604 | (147,734) |
INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (4,861) | (5,550) |
Net cash used in investing activities | (4,861) | (5,550) |
FINANCING ACTIVITIES: | ||
Repayment of capital lease obligations | (2,899) | (2,600) |
Net cash used in financing activities | (2,899) | (2,600) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 97,844 | (155,884) |
CASH AND CASH EQUIVALENTS - beginning of period | 2,078,122 | 2,075,833 |
CASH AND CASH EQUIVALENTS - end of period | 2,175,966 | 1,919,949 |
Supplemental disclosures of cash flow information: | ||
Initial recognition of lease asset | 555,296 | 0 |
Cash paid for: Interest | $ 353 | $ 1,038 |
1. CONDENSED FINANCIAL STATEMEN
1. CONDENSED FINANCIAL STATEMENTS | 6 Months Ended |
Aug. 31, 2019 | |
Condensed Financial Statements | |
CONDENSED FINANCIAL STATEMENTS | 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 August 31, 2019, 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 28, 2019. The results of operations for the periods ended August 31, 2019 and 2018 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 condensed consolidated financial statements. The condensed 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 the condensed consolidated financial statements and the February 28, 2019 consolidated financials included in the 10-K filed on May 29, 2019. The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Except for the accounting policy for leases, which was updated as a result of adopting a new accounting standard, there have been no material changes to our significant accounting policies in Note 2 - Significant Accounting Policies, of the Notes to Condensed Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 28, 2019. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), which amended the existing accounting standards for lease accounting to increase transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet. We adopted the standard effective March 1, 2019. Consequently, financial information will not be updated and disclosures required under the new standard will not be provided for periods presented before March 1, 2019 as these prior periods conform to the Accounting Standards Codification 840. We elected the package of practical expedients permitted under the transition guidance within the new standard. By adopting these practical expedients, we were not required to reassess (1) whether an existing contract meets the definition of a lease; (2) the lease classification for existing leases; or (3) costs previously capitalized as initial direct costs. We evaluated all leases within this scope under existing accounting standards and under the new ASU lease standard recognized approximately $580,000 of operating right-of-use assets and lease liabilities at the date of adoption. Other required disclosures include: Weighted average lease term 5 years Weighted average lease rate 6.25% Future minimum payments on the operating lease liability are as follows: 2020 $127,497 2021 $259,456 2022 $109,435 Total $496,388 The FASB issued an accounting standards update that creates a single source of revenue guidance under U.S. GAAP for all companies, in all industries. We adopted this guidance on March 1, 2018 using the modified retrospective approach. The adoption of this guidance did not have a significant impact on our consolidated financial statements. Refer to Note 5 of these Notes to Condensed Consolidated Financial Statements for additional information. |
2. BASIC INCOME (LOSS) PER SHAR
2. BASIC INCOME (LOSS) PER SHARE | 6 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
BASIC INCOME (LOSS) PER SHARE | NOTE 2: BASIC LOSS PER SHARE Basic loss per common share is computed by dividing net income by the weighted average number of common shares outstanding during each period presented. Diluted income 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, assuming conversion, exercise, or issuance of all potential common stock equivalents unless the effect is to reduce a loss or increase the income per share. If the inclusion of common stock equivalents in the weighted average number of common shares outstanding would be anti-dilutive these items would be omitted from the calculation of net income per common share. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method. The denominator for diluted loss per share for the six months ended August 31, 2019 and 2018, respectively, did not include 6,407,221 warrants as they would have been anti-dilutive. For the six months ended August 31, 2019 2018 Net loss available to common shareholders $ (77,851 ) $ (36,831 ) Weighted average common shares – basic 26,574,313 26,574,313 Net loss per share – basic $ 0.00 $ 0.00 Dilutive effect of common stock equivalents: Warrants - - Weighted average common shares – diluted 26,574,313 26,574,313 Net loss per share – diluted $ 0.00 $ 0.00 For the three months ended August 31, 2019 2018 Net loss available to common shareholders $ (125,642 ) $ (129,623 ) Weighted average common shares – basic 26,574,313 26,574,313 Net loss per share – basic $ 0.00 $ 0.00 Dilutive effect of common stock equivalents: Warrants - - Weighted average common shares – diluted 26,574,313 26,574,313 Net loss per share – diluted $ 0.00 $ 0.00 |
3. COMMON STOCK
3. COMMON STOCK | 6 Months Ended |
Aug. 31, 2019 | |
Equity [Abstract] | |
COMMON STOCK | NOTE 3: COMMON STOCK Warrants A summary of warrant activity for the six months ended August 31, 2019 is shown below. Weighted- Average Warrants Exercise Outstanding Price Outstanding at March 1, 2019 6,407,221 0.21 Granted - - Exercised - - Forfeited - - Outstanding at August 31, 2019 6,407,221 0.21 Vested at August 31, 2018 6,407,221 0.21 Exercisable at February 28, 2019 6,407,221 0.21 Expiration date December 15, 2020 The following table summarizes significant ranges of outstanding warrants as of August 31, 2019: Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Average Average Average Remaining Exercise Number Exercise Exercise Price Number Life (Years) Price Outstanding Price $0.21 6,407,221 1.29 $0.21 6,407,221 $0.21 |
4. INVENTORY
4. INVENTORY | 6 Months Ended |
Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 4: INVENTORY The Company's inventory consisted of the following at August 31, 2019 and February 28, 2019: August 31, 2019 February 28, 2019 Raw materials $ 364,932 $ 382,658 Finished goods 551,592 589,839 Net Inventory $ 916,524 $ 972,497 |
5. REVENUE RECOGNITION AND CONC
5. REVENUE RECOGNITION AND CONCENTRATIONS | 6 Months Ended |
Aug. 31, 2019 | |
Revenue Recognition [Abstract] | |
REVENUE RECOGNITION AND CONCENTRATIONS | NOTE 5: REVENUE RECOGNITION AND CONCENTRATIONS We derive our revenue primarily from product sales. We determine revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; (5) recognition of revenue when, or as, we satisfy a performance obligation. The Company's performance obligations consist solely of product shipped to customers. Revenue from product sales is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration we expect to receive in exchange for these products. Revenue is recognized net of returns and any taxes collected from customers. We offer standard contractual terms in our purchase orders. In addition, we use the practical expedient related to commissions paid since they would be amortized in less than one year. Sales to three customers accounted for 78% and 73% of sales for the three and six month periods ended August 31, 2019, respectively. Accounts receivable from these customers amounted to $261,211 or approximately 86% of accounts receivable as of August 31, 2019. Sales to two customers accounted for 50% and 57% of sales for the three and six month periods ended August 31, 2018, respectively. Accounts receivable from these customers amounted to $416,254 or approximately 70% of accounts receivable as of August 31, 2018. |
6. RELATED PARTY TRANSACTIONS
6. RELATED PARTY TRANSACTIONS | 6 Months Ended |
Aug. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 6: RELATED PARTY TRANSACTIONS The Company utilizes the services of an individual, who is a related party, to source materials and provide the manufacturing of component parts with third-party vendors in China. For the six months ended August 31, 2019 and 2018, purchases facilitated through the related party accounted for approximately 28% and 14%, respectively, of total raw material purchases. For the three months ended August 31, 2019 and 2018, purchases facilitated through the related party accounted for approximately 9% and 25%, respectively. The Company paid approximately $12,000 and $31,000 in direct commissions to the related party consultant during the six months ended August 31, 2019 and 2018, respectively, and $3,000 and $15,000 during the three months ended August 31, 2019 and 2018, respectively. The Company had advanced amounts to an employee of $25,700 and $26,000 as of August 31, 2019 and 2018, respectively. These amounts are being repaid through direct payroll withdrawals. The Company had receivables from stockholders of approximately $7,000 as of August 31, 2018. The Company had sales to two companies related to a former member of the Board of Directors. Specifically, sales to Sovereign Earth, LLC (dba Revolve) totaled approximately $583,000 and $438,000 for the six months ended August 31, 2019 and 2018, respectively, and $379,000 and $166,000 for the three months ended August 31, 2019 and 2018, respectively. Sales to Amazon Seychelle totaled approximately $224,000 and $56,000 for the six months ended August 31, 2019 and 2018, respectively, and $56,000 and $22,000 for the three months ended August 31, 2019 and 2018, respectively. Pursuant to the agreement with the Company, Sovereign Earth, LLC is the sole and exclusive seller of certain Seychelle products in specified Amazon world markets. |
7. COMMITMENTS AND CONTINGENCIE
7. COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7: COMMITMENTS AND CONTINGENCIES The Company entered into a lease agreement on one facility for its corporate offices, inventory and production at 22 Journey in Aliso Viejo, CA for a term of 5 years at a monthly rental of approximately $19,000. Legal Proceedings There is a pending legal action named Rolling Tides, LLC vs. Carl Palmer, Seychelle Environmental Technologies, Inc., and other defendants. The case was brought in the Superior Court of the State of California, County of Orange. The action alleges certain fraudulent transfers occurred from Seychelle to the various defendants. The plaintiffs have refused to identify any such transfers by date or amount. The matter is set for trial in November 2019. All the defendants have denied the allegations of the complaint, and are vigorously defending the matter. It is not likely that the case will be settled without trial. The Company believes that the case has no merit. Licenses The Company has historically entered into licensing agreements with third-parties for product proprietary rights, patent and trademark ownership, and use of product name. In return, the Company agrees to pay licensing fees and/or royalties on sales of those products. During the six months ended August 31, 2019 and 2018, the Company paid $6,226 and $4,051, respectively, and during the three months ended August 31, 2019 and 2018 $3,146 and $3,085, respectively, in royalties and licensing fees related under these agreements. |
8. SUBSEQUENT EVENTS
8. SUBSEQUENT EVENTS | 6 Months Ended |
Aug. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 8: SUBSEQUENT EVENTS Management has evaluated subsequent events from August 31, 2019 through the date the condensed consolidated financial statements were issued, and has concluded that no subs equent events have occurred that would require recognition or disclosure in these condensed consolidated financial statements. |
9. INCOME TAX
9. INCOME TAX | 6 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9: INCOME TAX Tax Cuts and Jobs Act On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "TCJA"). The TCJA makes broad and complex changes to the U.S. tax code, including, but not limited to, reducing the U.S. statutory corporate income tax rate from 35 percent to 21 percent, effective January 1, 2018. U.S. GAAP requires that deferred income tax assets and liabilities be remeasured at the income tax rate expected to apply when those temporary differences reverse, and that the effects of any change to such income tax rate be recognized in the period when the change was enacted. In connection with the Company's initial analysis of the impact of the TCJA, the Company recorded a discrete net tax expense of $282,408 in the year ended February 28, 2018. This net expense is primarily due to the remeasurement of the Company's existing deferred tax assets and liabilities. Due to the Company having a full valuation allowance related to their deferred taxes, the $282,408 discrete tax expense associated with the remeasurement was equally offset by the valuation allowance causing an overall net zero impact on the Company's current tax rate. We recorded a provision for income taxes of $800 for the quarter ended August 31, 2019 related to state taxes, based on the Company’s expected annual effective tax rate. |
1. CONDENSED FINANCIAL STATEM_2
1. CONDENSED FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Condensed Financial Statements | |
Other disclosures | Other required disclosures include: Weighted average lease term 5 years Weighted average lease rate 6.25% |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum payments on the operating lease liability are as follows: 2020 $127,497 2021 $259,456 2022 $109,435 Total $496,388 |
2. BASIC INCOME (LOSS) PER SH_2
2. BASIC INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted income (loss) per share | The denominator for diluted loss per share for the six months ended August 31, 2019 and 2018, respectively, did not include 6,407,221 warrants as they would have been anti-dilutive. For the six months ended August 31, 2019 2018 Net loss available to common shareholders $ (77,851 ) $ (36,831 ) Weighted average common shares – basic 26,574,313 26,574,313 Net loss per share – basic $ 0.00 $ 0.00 Dilutive effect of common stock equivalents: Warrants - - Weighted average common shares – diluted 26,574,313 26,574,313 Net loss per share – diluted $ 0.00 $ 0.00 For the three months ended August 31, 2019 2018 Net loss available to common shareholders $ (125,642 ) $ (129,623 ) Weighted average common shares – basic 26,574,313 26,574,313 Net loss per share – basic $ 0.00 $ 0.00 Dilutive effect of common stock equivalents: Warrants - - Weighted average common shares – diluted 26,574,313 26,574,313 Net loss per share – diluted $ 0.00 $ 0.00 |
3. COMMON STOCK (Tables)
3. COMMON STOCK (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Equity [Abstract] | |
Summary of warrant activity | A summary of warrant activity for the six months ended August 31, 2019 is shown below. Weighted- Average Warrants Exercise Outstanding Price Outstanding at March 1, 2019 6,407,221 0.21 Granted - - Exercised - - Forfeited - - Outstanding at August 31, 2019 6,407,221 0.21 Vested at August 31, 2018 6,407,221 0.21 Exercisable at February 28, 2019 6,407,221 0.21 |
Summary of significant ranges of outstanding warrants | The following table summarizes significant ranges of outstanding warrants as of August 31, 2019: Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Average Average Average Remaining Exercise Number Exercise Exercise Price Number Life (Years) Price Outstanding Price $0.21 6,407,221 1.29 $0.21 6,407,221 $0.21 |
4. INVENTORY (Tables)
4. INVENTORY (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | The Company's inventory consisted of the following at August 31, 2019 and February 28, 2019: August 31, 2019 February 28, 2019 Raw materials $ 364,932 $ 382,658 Finished goods 551,592 589,839 Net Inventory $ 916,524 $ 972,497 |
1. CONDENSED FINANCIAL STATEM_3
1. CONDENSED FINANCIAL STATEMENTS - Other disclosures (Details) | Aug. 31, 2019 |
Condensed Financial Statements | |
Weighted average lease term | 5 years |
Weighted average lease rate | 6.25% |
1. CONDENSED CONSOLIDATED FINAN
1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Future maturities of operating lease liability (Details) | Aug. 31, 2019USD ($) |
Condensed Financial Statements | |
2020 | $ 127,497 |
2021 | 259,456 |
2022 | 109,435 |
Total | $ 496,388 |
1. CONDENSED FINANCIAL STATEM_4
1. CONDENSED FINANCIAL STATEMENTS (Details Narrative) - USD ($) | Aug. 31, 2019 | Mar. 02, 2019 | Feb. 28, 2019 |
Condensed Financial Statements | |||
Operating right-of-use assets | $ 447,405 | $ 580,000 | $ 0 |
Lease liabilities | $ 580,000 |
2. BASIC INCOME (LOSS) PER SH_3
2. BASIC INCOME (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Net loss available to common shareholders | $ (125,642) | $ (129,623) | $ (77,851) | $ (36,831) |
Weighted average common shares - basic | 26,574,313 | 26,574,313 | 26,574,313 | 26,574,313 |
Net income (loss) per share - basic | $ 0 | $ 0 | $ 0 | $ 0 |
Dilutive effect of common stock equivalents: | ||||
Warrants | 0 | 0 | 0 | 0 |
Weighted average common shares - diluted | 26,574,313 | 26,574,313 | 26,574,313 | 26,574,313 |
Net loss per share - diluted | $ 0 | $ 0 | $ 0 | $ 0 |
3. COMMON STOCK - Summary of wa
3. COMMON STOCK - Summary of warrant activity (Details) | 6 Months Ended |
Aug. 31, 2019$ / sharesshares | |
Warrants Outstanding | |
Outstanding at March 1, 2019 | 6,407,221 |
Granted | 0 |
Exercised | 0 |
Forfeited | 0 |
Outstanding at August 31, 2019 | 6,407,221 |
Vested at August 31, 2019 | 6,407,221 |
Exercisable at February 28, 2019 | 6,407,221 |
Weighted-Average Exercise Price | |
Outstanding at beginning | $ / shares | $ 0.21 |
Granted | $ / shares | 0 |
Exercised | $ / shares | $ 0 |
Forfeited | 0 |
Outstanding at end (August 31, 2019) | $ / shares | $ 0.21 |
Vested (August 31, 2019) | $ / shares | 0.21 |
Exercisable (February 28, 2019) | $ / shares | $ 0.21 |
3. COMMON STOCK - Summarizes si
3. COMMON STOCK - Summarizes significant ranges of outstanding warrants (Details) - $ / shares | 6 Months Ended | |
Aug. 31, 2019 | Feb. 28, 2019 | |
Equity [Abstract] | ||
Execise price | $ 0.21 | |
Number of warrants outstanding | 6,407,221 | |
Weighted average remaining life in years | 1 year 3 months 15 days | |
Weighted Average Execise price | $ 0.21 | $ 0.21 |
Warrants Exercisable | ||
Number outstanding | 6,407,221 | |
Weighted average exercise price | $ 0.21 |
4. INVENTORY (Details)
4. INVENTORY (Details) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 364,932 | $ 382,658 |
Finished goods | 551,592 | 589,839 |
Inventory, Net | $ 916,524 | $ 972,497 |
5. REVENUE RECOGNITION AND CO_2
5. REVENUE RECOGNITION AND CONCENTRATIONS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Accounts receivable | $ 261,211 | $ 416,254 | $ 261,211 | $ 416,254 |
Sales Revenue, Net [Member] | Three Customers | ||||
Concentration Risk, Percentage | 78.00% | 73.00% | ||
Sales Revenue, Net [Member] | Two Customers | ||||
Concentration Risk, Percentage | 50.00% | 57.00% | ||
Accounts Receivable [Member] | Three Customers | ||||
Concentration Risk, Percentage | 86.00% | |||
Accounts Receivable [Member] | Two Customers | ||||
Concentration Risk, Percentage | 70.00% |
6 RELATED PARTY TRANSACTIONS (D
6 RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Percentage of raw material purchased | 9.00% | 25.00% | 28.00% | 14.00% |
Advances to employees | $ 25,700 | $ 26,000 | ||
Direct commissions to related party | $ 3,000 | $ 15,000 | 12,000 | 31,000 |
Receivable from stockholders | 7,000 | 7,000 | ||
Revenue from related party | 1,063,987 | 659,998 | ||
Sovereign Earth, LLC | ||||
Revenue from related party | 379,000 | 166,000 | 583,000 | 438,000 |
Amazon Seychelle | ||||
Revenue from related party | $ 22,000 | $ 56,000 | $ 224,000 | $ 56,000 |
7. COMMITMENTS AND CONTINGENC_2
7. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Lease payments per month | $ 19,000 | |||
Lease term | 5 years | 5 years | ||
Royalties and licensing fees | $ 3,146 | $ 3,085 | $ 6,226 | $ 4,051 |
9. INCOME TAX (Details Narrativ
9. INCOME TAX (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Valuation allowance for deferred tax assets | $ 282,408 | ||||
Discrete net tax expense | $ 282,408 | ||||
Statutory corporate income tax rate | 21.00% | 35.00% | |||
Income tax (expense) | $ 800 | $ 0 | $ 1,600 | $ 0 |