Seychelle Environmental (SYEV) 10-Q 14 Jan 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Nov. 30, 2019	Jan. 10, 2020
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	Nov. 30, 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	Q3
Document Fiscal Year Focus	2020

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Nov. 30, 2019	Feb. 28, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 2,134,349	$ 2,078,122
Accounts receivable, net of allowance for doubtful accounts of $1,737 and $4,614, Respectively	453,454	352,818
Related party receivables	25,650	31,472
Inventory, net	961,841	972,497
Prepaid expenses, deposits, and other current assets	75,222	129,049
Total current assets	3,650,516	3,563,958
PROPERTY AND EQUIPMENT, NET	86,455	118,154
OTHER ASSETS
Other assets	66,670	66,670
Right-of-use lease asset-operating	392,159	0
Total assets	4,195,800	3,748,782
CURRENT LIABILITIES
Accounts payable and accrued expenses	298,801	267,641
Customer deposits	106,420	30,567
Lease liability, current portion	244,605	5,938
Total current liabilities	649,826	304,146
LONG-TERM LIABILITIES:
Lease liability, net of current portion	171,953	3,182
Total long-term liabilities	171,953	3,182
Total Liabilities	821,779	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	(5,567,308)	(5,499,875)
Less treasury stock at cost 66,000 shares	(29,680)	(29,680)
Total stockholders' equity	3,374,021	3,441,454
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 4,195,800	$ 3,748,782

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Nov. 30, 2019	Feb. 28, 2019
CURRENT ASSETS
Net of allowance for doubtful accounts	$ 1,737	$ 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		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Income Statement [Abstract]
Sales	$ 816,001	$ 609,444	$ 2,287,343	$ 2,479,023
Cost of sales	422,496	292,296	1,238,968	1,246,809
Gross profit	393,505	317,148	1,048,375	1,232,214
Operating expenses
Selling, general, and administrative	373,053	429,650	1,078,073	1,352,421
Depreciation and amortization	11,747	13,294	36,560	41,296
Total operating expenses	384,800	442,944	1,114,633	1,393,717
Income (loss) from operations	8,705	(125,796)	(66,258)	(161,503)
Other income (expense)
Interest income (expense)	5	(453)	(1,055)	(1,491)
Other income (expense)	1,708	(9)	1,480	(93)
Total other income (expense)	1,713	(462)	425	(1,584)
Income (loss) before income tax expense	10,418	(126,258)	(65,833)	(163,087)
Income tax expense	0	0	(1,600)	0
Net income (loss)	$ 10,418	$ (126,258)	$ (67,433)	$ (163,087)
BASIC EARNINGS PER SHARE	$ 0	$ 0	$ 0	$ (0.01)
DILUTED EARNINGS PER SHARE	$ 0	$ 0	$ 0	$ (0.01)
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

Condensed Consolidated Statem_2

Condensed 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	$ (5,259,748)	$ 3,681,581
Net income (loss)				(163,087)	(163,087)
Ending Balance, Shares at Nov. 30, 2018	26,640,313	66,000
Ending Balance, Amount at Nov. 30, 2018	$ 26,641	$ (29,680)	8,944,368	(5,422,835)	3,518,494
Begnning Balance, Shares at Aug. 31, 2018	26,640,313	66,000
Begnning Balance, Amount at Aug. 31, 2018	$ 26,641	$ (29,680)	8,944,368	(5,296,577)	3,644,752
Net income (loss)				(126,258)	(126,258)
Ending Balance, Shares at Nov. 30, 2018	26,640,313	66,000
Ending Balance, Amount at Nov. 30, 2018	$ 26,641	$ (29,680)	8,944,368	(5,422,835)	3,518,494
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)				(67,433)	(67,433)
Ending Balance, Shares at Nov. 30, 2019	26,640,313	66,000
Ending Balance, Amount at Nov. 30, 2019	$ 26,641	$ (29,680)	8,944,368	(5,567,308)	3,374,021
Begnning Balance, Shares at Aug. 31, 2019	26,640,313	66,000
Begnning Balance, Amount at Aug. 31, 2019	$ 26,641	$ (29,680)	8,944,368	(5,577,726)	3,363,603
Net income (loss)				10,418	10,418
Ending Balance, Shares at Nov. 30, 2019	26,640,313	66,000
Ending Balance, Amount at Nov. 30, 2019	$ 26,641	$ (29,680)	$ 8,944,368	$ (5,567,308)	$ 3,374,021

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
OPERATING ACTIVITIES:
Net loss	$ (67,433)	$ (163,087)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	36,560	41,296
(Recovery) provision for doubtful accounts	(2,877)	21,567
Accretion of right-of-use lease asset	(2,319)	0
Changes in operating assets and liabilities:
Accounts receivable	(97,759)	323,334
Related party receivables	5,822	(1,693)
Inventory	10,656	(85,121)
Prepaid expenses, deposits and other current assets	53,827	77,757
Accounts payable and accrued expenses	53,159	(138,808)
Customer deposits	75,853	(88,547)
Net cash provided by (used in) operating activities	65,489	(13,302)
INVESTING ACTIVITIES:
Purchase of property and equipment	(4,861)	(14,259)
Net cash used in investing activities	(4,861)	(14,259)
FINANCING ACTIVITIES:
Repayment of capital lease obligations	(4,401)	(3,966)
Net cash used in financing activities	(4,401)	(3,966)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	56,227	(31,527)
CASH AND CASH EQUIVALENTS - beginning of period	2,078,122	2,075,833
CASH AND CASH EQUIVALENTS - end of period	2,134,349	2,044,306
Supplemental disclosures of cash flow information:
Initial recognition of lease asset	555,296	0
Cash paid for: Interest	$ 1,056	$ 1,491

1. CONDENSED CONSOLIDATED FINAN

1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	9 Months Ended
	Nov. 30, 2019
Condensed Financial Statements
CONDENSED CONSOLIDATED 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 November 30, 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 (“U.S. GAAP”) 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 November 30, 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 U.S. GAAP 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 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 $ 63,748 2021 259,456 2022 109,435 Total $432,639 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. EARNINGS PER SHARE

2. EARNINGS PER SHARE	9 Months Ended
	Nov. 30, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 2: EARNINGS 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 nine months ended November 30, 2019 and 2018, respectively, did not include 6,407,221 warrants as they would have been anti-dilutive. For the nine months ended November 30, 2019 2018 Net loss available to common shareholders $ (67,433 ) $ (163,087 ) Weighted average common shares – basic 26,574,313 26,574,313 Earnings per share – basic $ 0.00 $ (0.01 ) Dilutive effect of common stock equivalents: Warrants - - Weighted average common shares – diluted 26,574,313 26,574,313 Earnings per share – diluted $ 0.00 $ (0.01 ) For the three months ended November 30, 2019 2018 Net income (loss) available to common shareholders $ 10,418 $ (126,258 ) Weighted average common shares – basic 26,574,313 26,574,313 Earnings 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 Earnings per share – diluted $ 0.00 $ 0.00

3. COMMON STOCK

3. COMMON STOCK	9 Months Ended
	Nov. 30, 2019
Equity [Abstract]
COMMON STOCK	NOTE 3: COMMON STOCK Warrants A summary of warrant activity for the nine months ended November 30, 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 November 30, 2019 6,407,221 0.21 Vested at November 30, 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 November 30, 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 0.79 $0.21 6,407,221 $0.21

4. INVENTORY

4. INVENTORY	9 Months Ended
	Nov. 30, 2019
Inventory Disclosure [Abstract]
INVENTORY	NOTE 4: INVENTORY The Company's inventory consisted of the following at November 30, 2019 and February 28, 2019: November 30, 2019 February 28, 2019 Raw materials $ 621,469 $ 382,658 Finished goods 340,372 589,839 Net inventory $ 961,841 $ 972,497

5. REVENUE RECOGNITION AND CONC

5. REVENUE RECOGNITION AND CONCENTRATIONS	9 Months Ended
	Nov. 30, 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 66.25% and 70.61% of sales for the three and nine month periods ended November 30, 2019, respectively. Accounts receivable from these customers amounted to $324,000 or approximately 82% of accounts receivable as of November 30, 2019. Sales to two customers accounted for 56% of sales for the three and nine month periods ended November 30, 2018. Accounts receivable from these customers amounted to $290,215 or approximately 66% of accounts receivable as of November 30, 2018.

6. RELATED PARTY TRANSACTIONS

6. RELATED PARTY TRANSACTIONS	9 Months Ended
	Nov. 30, 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 nine months ended November 30, 2019 and 2018, purchases facilitated through the related party accounted for approximately 33% and 16%, respectively, of total raw material purchases. For the three months ended November 30, 2019 and 2018, purchases facilitated through the related party accounted for approximately 37% and 24%, respectively. The Company paid approximately $23,907 and $39,000 in direct commissions to the related party consultant during the nine months ended November 30, 2019 and 2018, respectively, and $11,669 and $4 during the three months ended November 30, 2019 and 2018, respectively. During the three and nine months ended November 30, 2019, the Company incurred $33,131 and $94,000, respectively, for consulting services from Carl Palmer. Carl is a Board member and father of Cari Beck, an officer and Board member. These amounts are included as a component of selling, general, and administrative expenses on the condensed consolidated statements of operations. The Company had advanced amounts to an employee of $25,550 and $26,150 as of November 30, 2019 and 2018, respectively. These amounts are being repaid through direct payroll withdrawals. The Company had receivables from stockholders of approximately $100 and $11,000 as of November 30, 2019 and 2018, respectively. 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 $800,000 and $653,000 for the nine months ended November 30, 2019 and 2018, respectively, and $217,000 and $215,000 for the three months ended November 30, 2019 and 2018, respectively. Sales to Amazon Seychelle totaled approximately $307,000 and $98,000 for the nine months ended November 30, 2019 and 2018, respectively, and $84,000 and $42,000 for the three months ended November 30, 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	9 Months Ended
	Nov. 30, 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 February 2020. 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 nine months ended November 30, 2019 and 2018, the Company paid $9,226 and $7,136, respectively, and during the three months ended November 30, 2019 and 2018 $3,000 and $3,085, respectively, in royalties and licensing fees related under these agreements.

8. SUBSEQUENT EVENTS

8. SUBSEQUENT EVENTS	9 Months Ended
	Nov. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 8: SUBSEQUENT EVENTS Management has evaluated subsequent events from November 30, 2019 through the date the condensed consolidated financial statements were issued, and has concluded that no subsequent events have occurred that would require recognition or disclosure in these condensed consolidated financial statements.

9. INCOME TAX

9. INCOME TAX	9 Months Ended
	Nov. 30, 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 $0 for the quarter ended November 30, 2019 related to state taxes, based on the Company’s expected annual effective tax rate.

1. CONDENSED CONSOLIDATED FIN_2

1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Tables)	9 Months Ended
	Nov. 30, 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 $ 63,748 2021 259,456 2022 109,435 Total $432,639

2. EARNINGS PER SHARE (Tables)

2. EARNINGS PER SHARE (Tables)	9 Months Ended
	Nov. 30, 2019
Earnings Per Share [Abstract]
Basic and Diluted income (loss) per share	The denominator for diluted loss per share for the nine months ended November 30, 2019 and 2018, respectively, did not include 6,407,221 warrants as they would have been anti-dilutive. For the nine months ended November 30, 2019 2018 Net loss available to common shareholders $ (67,433 ) $ (163,087 ) Weighted average common shares – basic 26,574,313 26,574,313 Earnings per share – basic $ 0.00 $ (0.01 ) Dilutive effect of common stock equivalents: Warrants - - Weighted average common shares – diluted 26,574,313 26,574,313 Earnings per share – diluted $ 0.00 $ (0.01 ) For the three months ended November 30, 2019 2018 Net income (loss) available to common shareholders $ 10,418 $ (126,258 ) Weighted average common shares – basic 26,574,313 26,574,313 Earnings 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 Earnings per share – diluted $ 0.00 $ 0.00

3. COMMON STOCK (Tables)

3. COMMON STOCK (Tables)	9 Months Ended
	Nov. 30, 2019
Equity [Abstract]
Summary of warrant activity	A summary of warrant activity for the nine months ended November 30, 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 November 30, 2019 6,407,221 0.21 Vested at November 30, 2018 6,407,221 0.21 Exercisable at February 28, 2019 6,407,221 0.21 Expiration date December 15, 2020
Summary of significant ranges of outstanding warrants	The following table summarizes significant ranges of outstanding warrants as of November 30, 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 0.79 $0.21 6,407,221 $0.21

4. INVENTORY (Tables)

4. INVENTORY (Tables)	9 Months Ended
	Nov. 30, 2019
Inventory Disclosure [Abstract]
Inventory	The Company's inventory consisted of the following at November 30, 2019 and February 28, 2019: November 30, 2019 February 28, 2019 Raw materials $ 621,469 $ 382,658 Finished goods 340,372 589,839 Net inventory $ 961,841 $ 972,497

1. CONDENSED CONSOLIDATED FIN_3

1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Other disclosures (Details)	Nov. 30, 2019
Condensed Financial Statements
Weighted average lease term	5 years
Weighted average lease rate	6.25%

1. CONDENSED CONSOLIDATED FIN_4

1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Future maturities of operating lease liability (Details)	Nov. 30, 2019USD ($)
Condensed Financial Statements
2020	$ 63,748
2021	259,456
2022	109,435
Total	$ 432,639

1. CONDENSED FINANCIAL STATEMEN

1. CONDENSED FINANCIAL STATEMENTS (Details Narrative) - USD ($)	Nov. 30, 2019	Mar. 02, 2019	Feb. 28, 2019
Condensed Financial Statements
Operating right-of-use assets	$ 392,159	$ 580,000	$ 0
Lease liabilities		$ 580,000

2. EARNINGS PER SHARE (Details)

2. EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Earnings Per Share [Abstract]
Net income (loss) available to common shareholders	$ 10,418	$ (126,258)	$ (67,433)	$ (163,087)
Weighted average common shares - basic	26,574,313	26,574,313	26,574,313	26,574,313
Earnings per share - basic	$ 0	$ 0	$ 0	$ (0.01)
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
Earnings per share - diluted	$ 0	$ 0	$ 0	$ (0.01)

3. COMMON STOCK - Summary of wa

3. COMMON STOCK - Summary of warrant activity (Details)	9 Months Ended
	Nov. 30, 2019$ / sharesshares
Warrants Outstanding
Outstanding at March 1, 2019	6,407,221
Granted	0
Exercised	0
Forfeited	0
Outstanding at November 30, 2019	6,407,221
Vested at November 30, 2018	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 (November 30, 2019) | $ / shares	$ 0.21
Vested (November 30, 2018) | $ / 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	9 Months Ended
	Nov. 30, 2019	Feb. 28, 2019
Equity [Abstract]
Exercise price	$ 0.21
Number of warrants outstanding	6,407,221
Weighted average remaining life in years	9 months 14 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 ($)	Nov. 30, 2019	Feb. 28, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 621,469	$ 382,658
Finished goods	340,372	589,839
Net inventory	$ 961,841	$ 972,497

5. REVENUE RECOGNITION AND CO_2

5. REVENUE RECOGNITION AND CONCENTRATIONS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Accounts receivable	$ 324,000	$ 290,215	$ 324,000	$ 290,215
Sales Revenue, Net [Member] | Three Customers
Concentration Risk, Percentage	66.25%		70.61%
Sales Revenue, Net [Member] | Two Customers
Concentration Risk, Percentage		56.00%		56.00%
Accounts Receivable [Member] | Three Customers
Concentration Risk, Percentage			82.00%
Accounts Receivable [Member] | Two Customers
Concentration Risk, Percentage				66.00%

6 RELATED PARTY TRANSACTIONS (D

6 RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Percentage of raw material purchased	37.00%	24.00%	33.00%	16.00%
Direct commissions to related party	$ 11,669	$ 4	$ 23,907	$ 39,000
Advances to employees			25,550	26,150
Receivable from stockholders	100	11,000	100	11,000
Sovereign Earth, LLC
Revenue from related party	217,000	215,000	800,000	653,000
Amazon Seychelle
Revenue from related party	84,000	$ 42,000	307,000	$ 98,000
Carl Palmer
Consulting services	$ 33,131		$ 94,000

7. COMMITMENTS AND CONTINGENC_2

7. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Lease payments per month			$ 19,000
Lease term	5 years		5 years
Royalties and licensing fees	$ 3,000	$ 3,085	$ 9,226	$ 7,136

9. INCOME TAX (Details Narrativ

9. INCOME TAX (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 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)	$ 0	$ 0	$ 1,600	$ 0