Daybreak Oil and Gas (DBRM) 10-Q 14 Jan 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Nov. 30, 2018	Jan. 14, 2019
Document And Entity Information
Entity Registrant Name	Daybreak Oil & Gas, Inc.
Entity Central Index Key	1,164,256
Document Type	10-Q
Document Period End Date	Nov. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--02-28
Is Entity's Reporting Status Current?	Yes
Is Entity Emerging Growth Company?	false
Elected Not To Use the Extended Transition Period	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		51,532,364
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,019

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Nov. 30, 2018	Feb. 28, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 41,651	$ 48,535
Restricted cash (short-term time deposit)		100,029
Accounts receivable:
Crude oil sales	90,987	104,840
Joint interest participants	55,769	58,452
Prepaid expenses and other current assets	22,992	21,796
Total current assets	211,399	333,652
CRUDE OIL AND NATURAL GAS PROPERTIES, successful efforts method, net
Proved properties	675,258	714,609
Unproved properties	31,187	31,187
PREPAID DRILLING COSTS	16,452	16,452
Total assets	934,296	1,095,900
CURRENT LIABILITIES:
Accounts payable and other accrued liabilities	2,023,741	2,022,672
Accounts payable - related parties	1,845,741	1,664,845
Accrued interest	3,491,480	1,822,673
Notes payable, related party	250,100	250,100
12% Notes payable, net of discount	313,649	307,571
12% Notes payable, related party, net of discount	248,928	244,103
Debt, current	9,157,794	9,157,794
Line of credit	834,329	873,350
Total current liabilities	18,165,762	16,343,108
LONG TERM LIABILITIES:
Asset retirement obligation	41,265	37,174
Total liabilities	18,207,027	16,380,282
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT:
Preferred stock	0	0
Common stock	51,532	51,532
Additional paid-in capital	22,997,759	22,997,759
Accumulated deficit	(40,322,732)	(38,334,383)
Total stockholders' deficit	(17,272,731)	(15,284,382)
Total liabilities and stockholders' deficit	934,296	1,095,900
Series A Convertible Preferred Stock
STOCKHOLDERS' DEFICIT:
Preferred stock	$ 710	$ 710

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Nov. 30, 2018	Feb. 28, 2018
Preferred stock, par value in dollars	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value in dollars	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	51,532,364	51,532,364
Common stock, shares outstanding	51,532,364	51,532,364
Unearned debt discount	$ 1,351	$ 7,429
12% Subordinated Notes
Unearned debt discount	1,351	7,429
12% Subordinated Notes | Chief Executive Officer
Unearned debt discount	$ 1,072	$ 5,897
Series A Convertible Preferred Stock
Preferred stock, par value in dollars	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,400,000	2,400,000
Preferred stock, shares issued	709,568	709,568
Preferred stock, shares outstanding	709,568	709,568
Preferred stock, cumulative dividend rate	6.00%	6.00%

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017
REVENUE:
Crude oil sales	$ 192,436	$ 169,532	$ 586,139	$ 438,295
OPERATING EXPENSES:
Production	41,337	38,229	115,893	130,454
Exploration and drilling (G&G)	0	8,048	992	103,041
Depreciation, depletion, and amortization (DD&A)	18,144	26,190	55,669	77,526
General and administrative	214,304	221,706	661,674	732,755
Total operating expenses	273,785	294,173	834,228	1,043,776
OPERATING LOSS	(81,349)	(124,641)	(248,089)	(605,481)
OTHER EXPENSE:
Interest expense, net	(576,795)	(411,414)	(1,740,260)	(1,366,931)
NET LOSS	(658,144)	(536,055)	(1,988,349)	(1,972,412)
Cumulative convertible preferred stock dividend requirement	(31,841)	(31,841)	(96,223)	(96,741)
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS	$ (689,985)	$ (567,896)	$ (2,084,572)	$ (2,069,153)
NET LOSS PER COMMON SHARE, basic and diluted	$ (0.01)	$ (0.01)	$ (0.04)	$ (0.04)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, Basic and diluted	51,532,364	51,532,364	51,532,364	51,520,666

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (1,988,349)	$ (1,972,412)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, depletion, amortization and impairment expense	55,669	77,526
Amortization of debt discount	10,903	10,904
Amortization of deferred financing costs	0	238,598
Reclass of unproved crude oil and natural gas properties to exploration expenses	0	51,486
Changes in assets and liabilities:
Accounts receivable - crude oil and natural gas sales	13,853	(24,403)
Accounts receivable - joint interest participants	2,683	(10,897)
Accounts receivable - other	0	(833)
Prepaid expenses and other current assets	(1,196)	(2,570)
Accounts payable and other accrued liabilities	1,069	242,178
Accounts payable - related parties	180,896	185,315
Accrued interest	1,691,486	1,052,851
Net cash used in operating activities	(32,986)	(152,257)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to crude oil and natural gas properties	(12,227)	0
Net cash used in investing activities	(12,227)	0
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt	0	102,700
Additions to line of credit	33,300	65,000
Payments on line of credit	(95,000)	(45,000)
Net cash provided by (used in) financing activities	(61,700)	122,700
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(106,913)	(29,557)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD	148,564	142,063
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	41,651	112,506
Cash paid for Interest	60,568	64,619
Cash paid for Income taxes	0	0
SUPPLEMENTAL CASH FLOW INFORMATION:
Non-cash increase to line of credit due to monthly interest	22,680	24,093
Proceeds of debt paid directly to accounts payable vendor	0	10,650
Revision to asset retirement obligation	0	40,108
Conversion of preferred stock to common stock	$ 0	$ 45

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Nov. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	NOTE 1 — ORGANIZATION AND BASIS OF PRESENTATION: Organization Originally incorporated as Daybreak Uranium, Inc., (“Daybreak Uranium”) under the laws of the State of Washington on March 11, 1955, Daybreak Uranium was organized to explore for, acquire, and develop mineral properties in the Western United States. During 2005, management of the Company decided to enter the crude oil and natural gas exploration and production industry. On October 25, 2005, the Company shareholders approved a name change from Daybreak Mines, Inc. to Daybreak Oil and Gas, Inc. (referred to herein as “Daybreak” or the “Company”) to better reflect the business of the Company. All of the Company’s crude oil and natural gas production is sold under contracts which are market-sensitive. Accordingly, the Company’s financial condition, results of operations, and capital resources are highly dependent upon prevailing market prices of, and demand for, crude oil and natural gas. These commodity prices are subject to wide fluctuations and market uncertainties due to a variety of factors that are beyond the control of the Company. These factors include the level of global demand for petroleum products, foreign supply of crude oil and natural gas, the establishment of and compliance with production quotas by crude oil-exporting countries, the relative strength of the U.S. dollar, weather conditions, the price and availability of alternative fuels, and overall economic conditions, both foreign and domestic. Basis of Presentation The accompanying unaudited interim financial statements and notes for the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q for quarterly reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”). Accordingly, they do not include all of the information and footnote disclosures normally required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included and such adjustments are of a normal recurring nature. Operating results for the nine months ended November 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending February 28, 2019. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2018. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions. These estimates and assumptions may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The accounting policies most affected by management’s estimates and assumptions are as follows: • The reliance on estimates of proved reserves to compute the provision for depreciation, depletion and amortization (“DD&A”) and to determine the amount of any impairment of proved properties; • The valuation of unproved acreage and proved crude oil and natural gas properties to determine the amount of any impairment of crude oil and natural gas properties; • Judgment regarding the productive status of in-progress exploratory wells to determine the amount of any provision for abandonment; and • Estimates regarding abandonment obligations. Reclassifications Certain reclassifications have been made to conform the prior period’s financial information to the current period’s presentation. These reclassifications had no effect on previously reported net loss or accumulated deficit. Earnings per Share The Company follows ASC Topic 260, Earnings per Share

Going Concern

Going Concern	9 Months Ended
	Nov. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 2 — GOING CONCERN: Financial Condition The Company’s financial statements for the nine months ended November 30, 2018 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company has incurred net losses since entering the crude oil and natural gas exploration industry and as of November 30, 2018 has an accumulated deficit of $40,322,732 and a working capital deficit of $17,954,363 which raises substantial doubt about the Company’s ability to continue as a going concern. Management Plans to Continue as a Going Concern The Company continues to implement plans to enhance its ability to continue as a going concern. Daybreak currently has a net revenue interest (“NRI”) in 20 producing crude oil wells in its East Slopes Project located in Kern County, California (the “East Slopes Project”). The revenue from these wells has created a steady and reliable source of revenue. The Company’s average working interest (“WI”) in these wells is 36.6% and the NRI is 28.4% for these same wells. The Company anticipates its revenue will continue to increase as the Company participates in the drilling of more wells in the East Slopes Project in California and as our exploratory drilling project begins in Michigan. However, given the current volatility and instability in hydrocarbon prices, the timing of any drilling activity in California and Michigan will be dependent on a sustained improvement in hydrocarbon prices and a successful refinancing or restructuring of the Company’s credit facility. The Company believes that our liquidity will improve when there is a sustained improvement in hydrocarbon prices. Daybreak’s sources of funds in the past have included the debt or equity markets and the sale of assets. While the Company has experienced revenue growth, which has resulted in positive cash flow from its crude oil and natural gas properties, it has not yet established a positive cash flow on a company-wide basis. It will be necessary for the Company to obtain additional funding from the private or public debt or equity markets in the future. However, the Company cannot offer any assurance that it will be successful in executing the aforementioned plans to continue as a going concern. Daybreak’s financial statements as of November 30, 2018 do not include any adjustments that might result from the inability to implement or execute the Company’s plans to improve its ability to continue as a going concern. On December 27, 2018, the Company settled its outstanding indebtedness with Maximilian including a release of and termination of all liens and security interests granted to Maximilian with respect to the Company’s California and Michigan Projects. Please refer to Note 14 – Subsequent Events for further discussion on this transaction.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Nov. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	NOTE 3 — RECENT ACCOUNTING PRONOUNCEMENTS: Accounting Standards Issued and Adopted In May 2014, the FASB issued ASC updated No. 2014-09, Revenue from Contracts with Customers (Topic 606 (ASU 2014-09) In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”). The update is effective for years beginning December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted. The purpose of Update 2016-18 is to clarify guidance and presentation related to restricted cash in the Statements of Cash Flows. The amendment requires beginning-of-period and end-of-period total amounts shown on the Statements of Cash Flows to include cash and cash equivalents as well as restricted cash and restricted cash equivalents. Adoption of this new standard did not have a material impact on the Company’s financial statements.

Restricted Cash

Restricted Cash	9 Months Ended
	Nov. 30, 2018
Cash and Cash Equivalents [Abstract]
Restricted Cash	NOTE 4 — RESTRICTED CASH: A reconciliation of cash, cash equivalents and restricted cash reported within the statement of financial position that sum to the total of the same such cash amounts shown in the statement of cash flows is set forth in the table below. November 30, 2018 November 30, 2017 Cash and cash equivalents $ 41,651 $ 12,487 Restricted cash - 100,019 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 41,651 $ 112,506 Amounts included in restricted cash represent those required to be set aside in the form of a short-term time deposit (CD) pledged as collateral in connection with any obligation for plugging, abandonment and site remediation requirements for our crude oil operations in California. Effective March 19, 2018, the collateral requirement obligation was rescinded. These funds then became available for the Company to use for regular business purposes.

Concentration Risk

Concentration Risk	9 Months Ended
	Nov. 30, 2018
Risks and Uncertainties [Abstract]
Concentration Risk	NOTE 5 — CONCENTRATION RISK: Substantially all of the Company’s trade accounts receivable result from crude oil and natural gas sales or joint interest billings to its working interest partners. This concentration of customers and joint interest owners may impact the Company’s overall credit risk as these entities could be affected by similar changes in economic conditions including lower crude oil prices as well as other related factors. Trade accounts receivable are generally not collateralized. The Company’s accounts receivable balances from California crude oil sales of $90,987 and $104,840 at November 30, 2018 and February 28, 2018, respectively were from one customer, Plains Marketing and represent crude oil sales that occurred in November and February 2018, respectively. Joint interest participant receivables balances of $55,769 and $58,452 at November 30, 2018 and February 28, 2018, respectively represent amounts due from working interest partners in California, where the Company is the Operator. There were no allowances for doubtful accounts for the Company’s trade accounts receivable at November 30, 2018 and February 28, 2018 as the joint interest owners have a history of paying their obligations. At November 30, 2018, the Company owed our principal lender, Maximilian Resources LLC, a Delaware limited liability company and successor by assignment to Maximilian Investors LLC (either party, as appropriate, is referred to in these notes to the financial statements as “Maximilian”), an aggregate $12.6 million or approximately 69.4% of the Company’s total debt.

Crude Oil and Natural Gas Prope

Crude Oil and Natural Gas Properties	9 Months Ended
	Nov. 30, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Crude Oil and Natural Gas Properties	NOTE 6 — CRUDE OIL AND NATURAL GAS PROPERTIES: Crude oil and natural gas property balances at November 30, 2018 and February 28, 2018 are set forth in the table below. November 30, 2018 February 28, 2018 Proved leasehold costs $ 115,119 $ 115,119 Costs of wells and development 2,298,186 2,293,668 Capitalized exploratory well costs 1,341,494 1,333,785 Cost of proved crude oil and natural gas properties 3,754,799 3,742,572 Accumulated depletion, depreciation, amortization and impairment (3,079,541) (3,027,963) Proved crude oil and natural gas properties, net $ 675,258 $ 714,609 Michigan unproved crude oil and natural gas properties 31,187 31,187 Total proved and unproved crude oil and natural gas properties, net $ 706,445 $ 745,796

Accounts Payable

Accounts Payable	9 Months Ended
	Nov. 30, 2018
Payables and Accruals [Abstract]
Accounts Payable	NOTE 7 — ACCOUNTS PAYABLE: On March 1, 2009, the Company became the operator for its East Slopes Project in California. Additionally, the Company then assumed certain original defaulting partners’ approximate $1.5 million liability representing a 25% working interest in the drilling and completion costs associated with the East Slopes Project four earning well program. The Company subsequently sold the same 25% working interest on June 11, 2009. Of the $1.5 million liability, $244,849 remains unpaid and is included in both the November 30, 2018 and February 28, 2018 accounts payable balances. Payment of this liability has been delayed until the Company’s cash flow situation improves. On October 17, 2018, a working interest partner in California filed a UCC financing statement in regards to payables owed to the partner by the Company. At November 30, 2018, the balance owed this working interest partner was $122,746.

Accounts Payable - Related Part

Accounts Payable - Related Parties	9 Months Ended
	Nov. 30, 2018
Related Party Transactions [Abstract]
Accounts Payable - Related Parties	NOTE 8 — ACCOUNTS PAYABLE- RELATED PARTIES: The November 30, 2018 and February 28, 2018 accounts payable – related parties balances of approximately $1.8 million and $1.7 million respectively, were comprised primarily of deferred salaries of the Company’s Executive Officers and certain employees; directors’ fees; expense reimbursements; and deferred interest payments on a 12% Subordinated Notes owed to the Company’s President and Chief Executive Officer. Payment of these deferred items has been delayed until the Company’s cash flow situation improves.

Short-Term and Long-Term Borrow

Short-Term and Long-Term Borrowings	9 Months Ended
	Nov. 30, 2018
Debt Disclosure [Abstract]
Short-Term and Long-Term Borrowings	NOTE 9 — SHORT-TERM AND LONG-TERM BORROWINGS: Current debt (Short-term borrowings) Note Payable – Related Party 12% Subordinated Notes The Company’s 12% Subordinated Notes (“the Notes”) issued pursuant to a January 2010 private placement offering to accredited investors, resulted in $595,000 in gross proceeds (of which $250,000 was from a related party) to the Company and accrue interest at 12% per annum, payable semi-annually on January 29th and July 29th. On January 29, 2015, the Company and 12 of the 13 holders of the Notes agreed to extend the maturity date of the Notes for an additional two years to January 29, 2017. Effective January 29, 2017, the maturity date of the Notes and the expiration date of the warrants that were issued in conjunction with the Notes were extended for an additional two years to January 29, 2019. The exercise price of the associated warrants was lowered from $0.14 to $0.07 as part of the Note maturity extension. There are ten noteholders, holding 980,000 warrants (including 500,000 warrants held by a related party) who have not yet exercised their warrants. The Notes principal of $565,000 is payable in full at the amended maturity date of the Notes. The fair value of the warrant modification, as determined by the Black-Scholes option pricing model, was $29,075 and was recognized as a discount to debt and is being amortized over the extended maturity date of the Notes. The Black-Scholes valuation encompassed the following weighted average assumptions: a risk free interest rate of 1.22%; volatility of 378.73%; and dividend yield of 0.0%. The Notes principal of $565,000 is payable in full at the amended maturity date of the Notes. Should the Board of Directors, on the maturity date, decide that the payment of the principal and any unpaid interest would impair the financial condition or operations of the Company, the Company may then elect a mandatory conversion of the unpaid principal and interest into the Company’s common stock at a conversion rate equal to 75% of the average closing price of the Company’s common stock over the 20 consecutive trading days preceding December 31, 2018. Amortization expense was $10,903 at November 30, 2018 and 2017, respectively. The unamortized debt discount at November 30, 2018 and February 28, 2018 was $2,423 and $13,326, respectively. 12% Note balances at November 30, 2018 and February 28, 2018 are set forth in the table below: November 30, 2018 February 28, 2018 12% Subordinated notes $ 315,000 $ 315,000 Debt discount (1,351) (7,429) 12% Subordinated notes balance, net $ 313,649 $ 307,571 12% Note balances – related parties at November 30, 2018 and February 28, 2018 are set forth in the table below: November 30, 2018 February 28, 2018 12% Subordinated notes – related party $ 250,000 $ 250,000 Debt discount (1,072) (5,897) 12% Subordinated notes – related party balance, net $ 248,928 $ 244,103 In conjunction with the Notes private placement, a total of 1,190,000 common stock purchase warrants (including 500,000 held by a related party) were issued at a rate of two warrants for every dollar raised through the private placement. The warrants have an amended exercise price of $0.07 and an amended expiration date of January 29, 2019. The 12% Note warrants that have been exercised are set forth in the table below. At November 30, 2018, there were 980,000 warrants (including 500,000 held by a related party) that were not exercised and had not expired. Fiscal Period Warrants Exercised Shares of Common Stock Issued Number of Accredited Investors Year Ended February 28, 2014 100,000 100,000 1 Year Ended February 28, 2015 50,000 50,000 1 Year Ended February 29, 2016 - - - Year Ended February 28, 2017 - - - Year Ended February 28, 2018 - - - Nine Months Ended November 30, 2018 - - - Totals 150,000 150,000 2 Maximilian Loan Agreement (Credit Facility) On October 31, 2012, the Company entered into a loan agreement with Maximilian Resources LLC, a Delaware limited liability company and successor by assignment to Maximilian Investors LLC (either party, as appropriate, is referred to in these notes to the financial statements as “Maximilian”), which provided for a revolving credit facility of up to $20 million, that matured on October 31, 2016, with a minimum commitment of $2.5 million. In August 2013, the Company amended its loan agreement with Maximilian thereby increasing the amount of the credit facility to $90 million and reduced the annual interest rate to 12%. The Company evaluated the amendment of the revolving credit facility under ASC 470-50-40 and determined that the Company’s borrowing capacity under the amended loan agreement exceeded its borrowing capacity under the old loan agreement. Consequently, the unamortized discount and deferred financing costs as of the date of amendment were amortized over the term of the loan agreement. On October 31, 2016 through the Fourth Amendment to the Amended and Restated Loan and Security Agreement (the “Restructuring Agreement”), the maturity date of the loan was changed to February 28, 2020. As a result of the decline in hydrocarbon prices that started in June of 2014, the Company has been unable to make any type of interest or principal payments required under the amended terms of its credit facility with Maximilian since December of 2015. Due to the Company’s default on the Maximilian loan, all unamortized discount and deferred financing costs were fully amortized during the twelve months ended February 28, 2018. Under the terms of the Restructuring Amendment all unpaid interest is currently being accrued. Accrued interest on the credit facility loan at November 30, 2018 and February 28, 2018 was $3,459,858 and $1,812,128, respectively. During the nine months ended November 30, 2018 and 2017, the Company received advances of $-0- and $102,700, respectively, under the terms of the credit facility. On December 27, 2018, the Company settled its outstanding indebtedness with Maximilian including a release and termination of all liens and security interests granted to Maximilian with respect to the Company’s California and Michigan projects. Please refer to Note 14 – Subsequent Events for further discussion on this transaction. Maximilian Promissory Note – Michigan Exploratory Joint Drilling Project The Company has a note payable loan balance to Maximilian of $94,650 as of November 30, 2018 and February 28, 2018. The Company has received $94,650 in aggregate from multiple advances since January 2017 from Maximilian under a separate promissory note agreement dated January 17, 2017 and amended on February 10, 2017 regarding the development of an exploratory joint drilling project in Michigan. Advances under this agreement are subject to a 5% (five percent) per annum interest rate. In the event of a default of any of the Company’s obligations under the promissory note, the amounts due may be called immediately due and payable at Maximilian’s option. Due to a lack of available funding from Maximilian, we have been unable to spud a well on the Michigan project. The Company is currently considered to be in default under the terms of its loan agreement. Maximilian is currently in receivership. The United States District Court for the Eastern District of New York, Southern Division has hired consultants to assist in finding a new lender. No assurances can be made as to who the new lender will be or how the structure of the loan will affect the Company. Accrued interest on the Michigan promissory note at November 30, 2018 and February 28, 2018 was $8,774 and $5,158, respectively. During the nine months ended November 30, 2018 and 2017, the Company received advances of $-0- and $10,650. The $10,650 was paid directly to the Operator of the Michigan project by Maximilian on the Company’s behalf. In accordance with the guidance found in ASC-470-10-45, the entire balance of both the Maximilian credit facility loan and the Michigan loan is presented under the current liabilities section of the balance sheets. Current debt balances at November 30, 2018 and February 28, 2018 are set forth in the table below: November 30, 2018 February 28, 2018 Credit facility balance $ 9,063,144 $ 9,063,144 Michigan exploratory joint drilling debt 94,650 94,650 Subtotal debt 9,157,794 9,157,794 Accrued interest on credit facility and Michigan exploratory joint drilling debt 3,468,632 1,817,287 Total Maximilian debt $ 12,626,426 $ 10,975,081 On December 27, 2018, the Company settled its outstanding indebtedness with Maximilian including a release and termination of all liens and security interests granted to Maximilian with respect to the Company’s California and Michigan projects. Please refer to Note 14 – Subsequent Events for further information on this transaction. Line of Credit At November 30, 2018 and February 28, 2018, the line of credit had an outstanding balance of $834,329 and $873,350, respectively. During the nine months ended November 30, 2018 and 2017, the Company received advances of $33,300 and $65,000 from the line of credit. Additionally during the nine months ended November 30, 2018, the Company made payments to the line of credit of $95,000 and $45,000, respectively. Interest incurred for the nine months ended November 30, 2018 and 2017 was $22,680 and $24,903, respectively.

Stockholders' Deficit

Stockholders' Deficit	9 Months Ended
	Nov. 30, 2018
Equity [Abstract]
Stockholders' Deficit	NOTE 10 — STOCKHOLDERS’ DEFICIT: Preferred Stock The Company is authorized to issue up to 10,000,000 shares of preferred stock with a par value of $0.001. The Company’s preferred stock may be entitled to preference over the common stock with respect to the distribution of assets of the Company in the event of liquidation, dissolution, or winding-up of the Company, whether voluntarily or involuntarily, or in the event of any other distribution of assets of the Company among its shareholders for the purpose of winding-up its affairs. The authorized but unissued shares of preferred stock may be divided into and issued in designated series from time to time by one or more resolutions adopted by the Board of Directors. The directors in their sole discretion shall have the power to determine the relative powers, preferences, and rights of each series of preferred stock. Series A Convertible Preferred Stock The Company has designated 2,400,000 shares of the 10,000,000 preferred shares as Series A Convertible Preferred Stock (“Series A Preferred”), with a $0.001 par value. At November 30, 2018 and February 28, 2018, there were 709,568 shares issued and outstanding, respectively, that had not been converted into our common stock. As of November 30, 2018, there are 44 accredited investors who have converted 690,197 Series A Preferred shares into 2,070,591 shares of Daybreak common stock. The conversions of Series A Preferred that have occurred since the Series A Preferred was first issued in July 2006 are set forth in the table below. Fiscal Period Ended Shares of Series A Preferred Converted to Common Stock Shares of Common Stock Issued from Conversion Number of Accredited Investors February 29, 2008 102,300 306,900 10 February 28, 2009 237,000 711,000 12 February 28, 2010 51,900 155,700 4 February 28, 2011 102,000 306,000 4 February 29, 2012 - - - February 28, 2013 18,000 54,000 2 February 28, 2014 151,000 453,000 9 February 28, 2015 3,000 9,000 1 February 29, 2016 10,000 30,000 1 February 28, 2017 - - - February 28, 2018 14,997 44,991 1 November 30, 2018 - - - Totals 690,197 2,070,591 44 Holders of Series A Preferred shall accrue dividends, in the amount of 6% of the original purchase price per annum. Dividends may be paid in cash or common stock at the discretion of the Company. Dividends are cumulative whether or not in any dividend period or periods the Company has assets legally available for the payment of such dividends. Accumulations of dividends on Series A Preferred do not bear interest. Dividends are payable upon declaration by the Board of Directors. As of November 30, 2018 no dividends have been declared or paid. Dividends earned since issuance for each fiscal year and the nine months ended November 30, 2018 are set forth in the table below: Fiscal Period Ended Shareholders at Period End Accumulated Dividends February 28, 2007 100 $ 155,311 February 29, 2008 90 242,126 February 28, 2009 78 209,973 February 28, 2010 74 189,973 February 28, 2011 70 173,707 February 29, 2012 70 163,624 February 28, 2013 68 161,906 February 28, 2014 59 151,323 February 28, 2015 58 132,634 February 29, 2016 57 130,925 February 28, 2017 57 130,415 February 28, 2018 56 128,231 November 30, 2018 56 96,223 $ 2,066,371 Common Stock The Company is authorized to issue up to 200,000,000 shares of $0.001 par value common stock of which 51,532,364 shares were issued and outstanding as of November 30, 2018 and February 28, 2018, respectively. Common Stock Balance Par Value Common stock, Issued and Outstanding, February 28, 2017 51,487,373 Conversion of Series A Convertible Preferred Stock to common stock 44,991 $ 45 Common stock, Issued and Outstanding, February 28, 2018 51,532,364 Conversion of Series A Convertible Preferred Stock to common stock - Common stock, Issued and Outstanding, November 30, 2018 51,532,364

Warrants

Warrants	9 Months Ended
	Nov. 30, 2018
Equity [Abstract]
Warrants	NOTE 11 WARRANTS: Warrants outstanding and exercisable as of November 30, 2018 are set forth in the table below: Warrants Exercise Price Remaining Life (Years) Exercisable Warrants Remaining 12% Subordinated notes 980,000 $0.07 0.17 980,000 980,000 980,000 Warrant activity for the nine months ended November 30, 2018 is set forth in the table below: Number of Warrants Weighted Average Exercise Price Warrants outstanding, February 28, 2018 7,839,784 $0.05 Changes during the nine months ended November 30, 2018: Issued - Expired / Cancelled / Forfeited 6,859,784 Warrants outstanding, November 30, 2018 980,000 $0.07 Warrants exercisable, November 30, 2018 980,000 $0.07 During the nine months ended November 30, 2018, there were no warrants issued, exercised or cancelled. There were 6,859,784 warrants that expired. These warrants had been issued to either Maximilian or to third parties in relation to financing that occurred in 2012 and 2013 through Maximilian. The remaining outstanding warrants as of November 30, 2018, have a weighted average exercise price of $0.07, a weighted average remaining life of 0.17 years, and an intrinsic value of $-0-.

Income Taxes

Income Taxes	9 Months Ended
	Nov. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 12 INCOME TAXES: On December 22, 2017, the federal government enacted a tax bill H.R.1, an act to provide for reconciliation pursuant to Titles II and V of the concurrent resolution on the budget for fiscal year 2018, commonly referred to as the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act contains significant changes to corporate taxation, including, but not limited to, reducing the U.S. federal corporate income tax rate from 35% to 21% and modifying or limiting many business deductions. The Company has re-measured its deferred tax liabilities based on rates at which they are expected to be utilized in the future, which is generally 21%. Reconciliation between actual tax expense (benefit) and income taxes computed by applying the U.S. federal income tax rate and state income tax rates to income from continuing operations before income taxes is set forth in the table below: November 30, 2018 February 28, 2018 Computed at U.S. and state statutory rates $ (593,325) $ (981,966) Permanent differences 1,570 29,060 New tax law adjustment - 2,912,689 Changes in valuation allowance 591,755 (1,959,783) Total $ - $ - Tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred liabilities are set forth in the table below: November 30, 2018 February 28, 2018 Deferred tax assets: Net operating loss carryforwards $ 9,013,635 $ 8,413,128 Crude oil and natural gas properties 38,682 47,434 Stock based compensation 66,187 66,187 Other 27,838 27,838 Less valuation allowance (9,146,342) (8,554,587) Total $ - $ - At November 30, 2018, the Company had estimated net operating loss (“NOL”) carryforwards for federal and state income tax purposes of approximately $30,206,552 which will begin to expire, if unused, beginning in 2024. Under the Tax Cuts and Jobs Act, the NOL portion of the loss incurred in the 2018 period of $2,963,803 will not expire and will carry over indefinitely. The valuation allowance increased $591,755 and $1,959,784 for the nine months ended November 30, 2018 and the year ended February 28, 2018, respectively. Section 382 of the Internal Revenue Code places annual limitations on the Company’s net operating loss (NOL) carryforward. The above estimates are based on management’s decisions concerning elections which could change the relationship between net income and taxable income. Management decisions are made annually and could cause estimates to vary significantly. The Company files federal income tax returns with the United States Internal revenue Service and state income tax returns in various state tax jurisdictions. As a general rule the Company’s tax returns for the fiscal years after 2014 currently remain subject to examinations by appropriate tax authorities. None of our tax returns are under examination at this time.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Nov. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 13 — COMMITMENTS AND CONTINGENCIES: Various lawsuits, claims and other contingencies arise in the ordinary course of the Company’s business activities. While the ultimate outcome of any future contingency is not determinable at this time, management believes that any liability or loss resulting therefrom will not materially affect the financial position, results of operations or cash flows of the Company. The Company, as an owner or lessee and operator of crude oil and natural gas properties, is subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the lessee under a crude oil and natural gas lease for the cost of pollution clean-up resulting from operations and subject the lessee to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. The Company maintains insurance coverage that is customary in the industry, although the Company is not fully insured against all environmental risks. The Company is not aware of any environmental claims existing as of November 30, 2018. There can be no assurance, however, that current regulatory requirements will not change or that past non-compliance with environmental issues will not be discovered on the Company’s crude oil and natural gas properties. The Company’s minimum annual office rental lease commitments by fiscal year as of November 30, 2018 is shown in the table below: Fiscal Year Ended Annual Office Lease Obligation February 28, 2019 $ 3,532 February 29, 2020 9,300 February 28, 2021 6,200 February 28, 2022 - February 28, 2023 and thereafter - Totals $ 19,032

Subsequent Events

Subsequent Events	9 Months Ended
	Nov. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	NOTE 14 — SUBSEQUENT EVENTS: On December 27, 2018, the Company paid Maximilian $700,000 to finalize a settlement of outstanding indebtedness through its credit facility and Michigan debt in the amount of approximately $12.6 million. The Company also acquired an additional 40% working interest in the Daybreak’s Michigan Project along with a note receivable from its Michigan Project Partner. Daybreak now owns a 70% working interest in its Michigan Project. Furthermore, all liens and security interests granted to Maximilian with respect to the Company’s leases in California and Michigan have been terminated and released. The effects of this transaction will be reflected on the Company’s financial statements at February 28, 2019. The $700,000 paid to Maximilian was obtained from private investors (of which $300,000 was from a related party) by selling a Production Payment from future wells to be drilled in California and Michigan.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Nov. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim financial statements and notes for the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q for quarterly reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”). Accordingly, they do not include all of the information and footnote disclosures normally required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included and such adjustments are of a normal recurring nature. Operating results for the nine months ended November 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending February 28, 2019. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2018.
Use of Estimates	Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions. These estimates and assumptions may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The accounting policies most affected by management’s estimates and assumptions are as follows: • The reliance on estimates of proved reserves to compute the provision for depreciation, depletion and amortization (“DD&A”) and to determine the amount of any impairment of proved properties; • The valuation of unproved acreage and proved crude oil and natural gas properties to determine the amount of any impairment of crude oil and natural gas properties; • Judgment regarding the productive status of in-progress exploratory wells to determine the amount of any provision for abandonment; and • Estimates regarding abandonment obligations.
Reclassifications	Reclassifications Certain reclassifications have been made to conform the prior period’s financial information to the current period’s presentation. These reclassifications had no effect on previously reported net loss or accumulated deficit.
Earnings Per Share	Earnings per Share The Company follows ASC Topic 260, Earnings per Share
Accounting Standards Issued and Adopted	Accounting Standards Issued and Adopted In May 2014, the FASB issued ASC updated No. 2014-09, Revenue from Contracts with Customers (Topic 606 (ASU 2014-09) In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”). The update is effective for years beginning December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted. The purpose of Update 216-18 is to clarify guidance and presentation related to restricted cash in the Statements of Cash Flows. The amendment requires beginning-of-period and end-of-period total amounts shown on the Statements of Cash Flows to include cash and cash equivalents as well as restricted cash and restricted cash equivalents. Adoption of this new standard did not have a material impact on the Company’s financial statements.

Restricted Cash (Tables)

Restricted Cash (Tables)	9 Months Ended
	Nov. 30, 2018
Cash and Cash Equivalents [Abstract]
Schedule of Restricted Cash and Cash Equivalents	November 30, 2018 November 30, 2017 Cash and cash equivalents $ 41,651 $ 12,487 Restricted cash - 100,019 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 41,651 $ 112,506

Crude Oil and Natural Gas Pro_2

Crude Oil and Natural Gas Properties (Tables)	9 Months Ended
	Nov. 30, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Capitalized Costs Relating to Crude Oil and Natural Gas Activities	November 30, 2018 February 28, 2018 Proved leasehold costs $ 115,119 $ 115,119 Costs of wells and development 2,298,186 2,293,668 Capitalized exploratory well costs 1,341,494 1,333,785 Cost of proved crude oil and natural gas properties 3,754,799 3,742,572 Accumulated depletion, depreciation, amortization and impairment (3,079,541) (3,027,963) Proved crude oil and natural gas properties, net $ 675,258 $ 714,609 Michigan unproved crude oil and natural gas properties 31,187 31,187 Total proved and unproved crude oil and natural gas properties, net $ 706,445 $ 745,796

Short-Term and Long-Term Borr_2

Short-Term and Long-Term Borrowings (Tables)	9 Months Ended
	Nov. 30, 2018
Debt Disclosure [Abstract]
Schedule of Short-Term Debt	November 30, 2018 February 28, 2018 12% Subordinated notes $ 315,000 $ 315,000 Debt discount (1,351) (7,429) 12% Subordinated notes balance, net $ 313,649 $ 307,571 November 30, 2018 February 28, 2018 12% Subordinated notes – related party $ 250,000 $ 250,000 Debt discount (1,072) (5,897) 12% Subordinated notes – related party balance, net $ 248,928 $ 244,103
Schedule of Shares Issued and Warrants Exercised in Conjunction with Private Placement	Fiscal Period Warrants Exercised Shares of Common Stock Issued Number of Accredited Investors Year Ended February 28, 2014 100,000 100,000 1 Year Ended February 28, 2015 50,000 50,000 1 Year Ended February 29, 2016 - - - Year Ended February 28, 2017 - - - Year Ended February 28, 2018 - - - Nine Months Ended November 30, 2018 - - - Totals 150,000 150,000 2
Schedule of Line of Credit Facilities	November 30, 2018 February 28, 2018 Credit facility balance $ 9,063,144 $ 9,063,144 Michigan exploratory joint drilling debt 94,650 94,650 Subtotal debt 9,157,794 9,157,794 Accrued interest on credit facility and Michigan exploratory joint drilling debt 3,468,632 1,817,287 Total Maximilian debt $ 12,626,426 $ 10,975,081

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)	9 Months Ended
	Nov. 30, 2018
Equity [Abstract]
Schedule of Stockholder's Equity	Fiscal Period Ended Shares of Series A Preferred Converted to Common Stock Shares of Common Stock Issued from Conversion Number of Accredited Investors February 29, 2008 102,300 306,900 10 February 28, 2009 237,000 711,000 12 February 28, 2010 51,900 155,700 4 February 28, 2011 102,000 306,000 4 February 29, 2012 - - - February 28, 2013 18,000 54,000 2 February 28, 2014 151,000 453,000 9 February 28, 2015 3,000 9,000 1 February 29, 2016 10,000 30,000 1 February 28, 2017 - - - February 28, 2018 14,997 44,991 1 November 30, 2018 - - - Totals 690,197 2,070,591 44
Schedule of Dividends Payable	Fiscal Period Ended Shareholders at Period End Accumulated Dividends February 28, 2007 100 $ 155,311 February 29, 2008 90 242,126 February 28, 2009 78 209,973 February 28, 2010 74 189,973 February 28, 2011 70 173,707 February 29, 2012 70 163,624 February 28, 2013 68 161,906 February 28, 2014 59 151,323 February 28, 2015 58 132,634 February 29, 2016 57 130,925 February 28, 2017 57 130,415 February 28, 2018 56 128,231 November 30, 2018 56 96,223 $ 2,066,371
Schedule of Common Stock Outstanding	Common Stock Balance Par Value Common stock, Issued and Outstanding, February 28, 2017 51,487,373 Conversion of Series A Convertible Preferred Stock to common stock 44,991 $ 45 Common stock, Issued and Outstanding, February 28, 2018 51,532,364 Conversion of Series A Convertible Preferred Stock to common stock - Common stock, Issued and Outstanding, November 30, 2018 51,532,364

Warrants (Tables)

Warrants (Tables)	9 Months Ended
	Nov. 30, 2018
Equity [Abstract]
Schedule of Stockholders' Equity Note Warrants and Rights	Warrants Exercise Price Remaining Life (Years) Exercisable Warrants Remaining 12% Subordinated notes 980,000 $0.07 0.17 980,000 980,000 980,000
Schedule of Warrant Activity	Number of Warrants Weighted Average Exercise Price Warrants outstanding, February 28, 2018 7,839,784 $0.05 Changes during the nine months ended November 30, 2018: Issued - Expired / Cancelled / Forfeited 6,859,784 Warrants outstanding, November 30, 2018 980,000 $0.07 Warrants exercisable, November 30, 2018 980,000 $0.07

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Nov. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense Benefit	November 30, 2018 February 28, 2018 Computed at U.S. and state statutory rates $ (593,325) $ (981,966) Permanent differences 1,570 29,060 New tax law adjustment - 2,912,689 Changes in valuation allowance 591,755 (1,959,783) Total $ - $ -
Schedule of Deferred Tax Assets and Liabilities	November 30, 2018 February 28, 2018 Deferred tax assets: Net operating loss carryforwards $ 9,013,635 $ 8,413,128 Crude oil and natural gas properties 38,682 47,434 Stock based compensation 66,187 66,187 Other 27,838 27,838 Less valuation allowance (9,146,342) (8,554,587) Total $ - $ -

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Nov. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Fiscal Year Ended Annual Office Lease Obligation February 28, 2019 $ 3,532 February 29, 2020 9,300 February 28, 2021 6,200 February 28, 2022 - February 28, 2023 and thereafter - Totals $ 19,032

Going Concern (Details Narrativ

Going Concern (Details Narrative)	Nov. 30, 2018USD ($)Number	Feb. 28, 2018USD ($)
Accumulated deficit	$ (40,322,732)	$ (38,334,383)
Working capital deficit	$ 17,954,363
Average Working and Net Revenue Interest | East Slopes Project
Number of producing oil wells, net revenue interest | Number	20
Average working interest	36.60%
Average net revenue interest	28.40%

Restricted Cash - Schedule of R

Restricted Cash - Schedule of Restricted Cash and Cash Equivalents (Details) - USD ($)	Nov. 30, 2018	Feb. 28, 2018	Nov. 30, 2017	Feb. 28, 2017
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 41,651	$ 48,535	$ 12,487
Restricted cash		100,029	100,019
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 41,651	$ 148,564	$ 112,506	$ 142,063

Concentration Risk (Details Nar

Concentration Risk (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2018	Feb. 28, 2018
Concentration of risk, description	At the Company's East Slopes project in California there is only one buyer available for the purchase of all crude oil production. The Company has no natural gas production in California. At November 30, 2018 and February 28, 2018 this one customer represented 100.0% of crude oil sales receivable balance. If this buyer is unable to resell its products or if they lose a significant sales contract, the Company may incur difficulties in selling its crude oil production.
Concentration risk, percent	100.00%
Accounts receivable balances	$ 90,987	$ 104,840
Joint interest participant receivable balances	$ 55,769	$ 58,452
Maximilian Investors LLC
Concentration risk, percent	69.40%
Line of credit	$ 12,600,000

Crude Oil and Natural Gas Pro_3

Crude Oil and Natural Gas Properties - Capitalized Costs Relating to Crude Oil and Natural Gas Activities (Details) - USD ($)	Nov. 30, 2018	Feb. 28, 2018
Oil and Natural Gas Property, Successful Effort Method, Net
Proved leasehold costs	$ 115,119	$ 115,119
Costs of wells and development	2,298,186	2,293,668
Capitalized exploratory well costs	1,341,494	1,333,785
Cost of proved crude oil and natural gas properties	3,754,799	3,742,572
Accumulated depletion, depreciation, amortization and impairment	(3,079,541)	(3,027,963)
Proved crude oil and natural gas properties, net	675,258	714,609
Michigan unproved crude oil and natural gas properties	31,187	31,187
Total proved and unproved crude oil and natural gas properties, net	$ 706,445	$ 745,796

Accounts Payable (Details Narra

Accounts Payable (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2018	Feb. 28, 2018
Payables and Accruals [Abstract]
Acquisition and disposition of East Slopes Project	On March 1, 2009, the Company became the operator for the East Slopes Project. The Company assumed certain original defaulting partners' approximate $1.5 million liability representing a 25% working interest in the drilling and completion costs associated with the East Slopes Project four earning well program. The Company subsequently sold the 25% working interest on June 11, 2009.
Accounts payable balance	$ 244,849	$ 244,849

Accounts Payable - Related Pa_2

Accounts Payable - Related Parties (Details Narrative) - USD ($)	Nov. 30, 2018	Feb. 28, 2018
Related Party Transactions [Abstract]
Accounts payable, related parties	$ 1,845,741	$ 1,664,845

Short-Term and Long-Term Borr_3

Short-Term and Long-Term Borrowings - Schedule of Short-Term Debt (Details) - USD ($)	Nov. 30, 2018	Feb. 28, 2018
Short-term Debt [Line Items]
Debt discount	$ (1,351)	$ (7,429)
12% Subordinated notes balance, net	313,649	307,571
12% Subordinated notes balance, related party, net	248,928	244,103
12% Subordinated Notes
Short-term Debt [Line Items]
12% Subordinated notes	315,000	315,000
Debt discount	(1,351)	(7,429)
12% Subordinated notes balance, net	313,649	307,571
12% Subordinated Notes | Chief Executive Officer
Short-term Debt [Line Items]
12% Subordinated notes	250,000	250,000
Debt discount	(1,072)	(5,897)
12% Subordinated notes balance, related party, net	$ 248,928	$ 244,103

Short-Term and Long-Term Borr_4

Short-Term and Long-Term Borrowings - Schedule of Shares Issued and Warrants Exercised with Private Placement (Details)	9 Months Ended	12 Months Ended
	Nov. 30, 2018Numbershares	Feb. 28, 2018Numbershares	Feb. 28, 2017Numbershares	Feb. 29, 2016Numbershares	Feb. 28, 2015Numbershares	Feb. 28, 2014Numbershares
Accredited investors | Number	44
12% Subordinated Notes
Warrants exercised | shares	150,000	0	0	0	50,000	100,000
Shares of common stock issued | shares	150,000	0	0	0	50,000	100,000
Accredited investors | Number	2	0	0	0	1	1

Short-Term and Long-Term Borr_5

Short-Term and Long-Term Borrowings - Schedule of Line of Credit Facilities (Details) - USD ($)	Nov. 30, 2018	Feb. 28, 2018
Line of Credit Facility [Line Items]
Subtotal debt	$ 9,157,794	$ 9,157,794
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility balance	9,063,144	9,063,144
Michigan exploratory joint drilling debt	94,650	94,650
Subtotal debt	9,157,794	9,157,794
Accrued interest on credit facility and Michigan exploratory joint drilling debt	3,468,632	1,817,287
Total maximum debt	$ 12,626,426	$ 10,975,081

Short-Term and Long-Term Borr_6

Short-Term and Long-Term Borrowings (Details Narrative) - USD ($)	9 Months Ended		12 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2014	Feb. 28, 2013	Feb. 28, 2010
Debt Instrument [Line Items]
Amortization of debt discount	$ 10,903	$ 10,904
Line of credit, amount outstanding	834,329		$ 873,350
Payments on line of credit	95,000	45,000
Notes payable, related party	250,100		250,100
Revolving Credit Facility | Maximilian Loan
Debt Instrument [Line Items]
Maximum borrowing						$ 20,000,000
Credit facility, advances	0	102,700
Credit facility, expiration date						Oct. 31, 2016
Minimum commitment fee						$ 2,500,000
Accrued interest	3,459,858		1,812,128
Revolving Credit Facility | Maximilian Loan | Michigan Exploratory Joint Drilling Project
Debt Instrument [Line Items]
Line of credit, amount outstanding	$ 94,650		$ 94,650
Line of credit, interest rate description	Advances under this agreement are subject to a 5% per annum interest rate.		Advances under this agreement are subject to a 5% per annum interest rate.
Payments made on behalf of the company	$ 10,650
Accrued interest	8,774		$ 5,158
Revolving Credit Facility | Maximilian - Amended and Restated Loan Agreement
Debt Instrument [Line Items]
Maximum borrowing					$ 90,000,000
Line of credit facility, interest rate					12.00%
Revolving Credit Facility | Maximilian - Fourth Amendment to Amended and Restated Loan Agreement
Debt Instrument [Line Items]
Credit facility, expiration date				Feb. 28, 2020
Line of Credit | UBS Bank USA
Debt Instrument [Line Items]
Maximum borrowing	890,000		890,000
Credit facility, advances	33,300	65,000
Line of credit, amount outstanding	834,329		$ 873,350
Payments on line of credit	95,000	45,000
Line of credit, interest expense	$ 22,680	24,903
Line of credit, interest rate description	Payable monthly at a stated reference rate of 0.249% + 337.5 basis points. The reference rate is based on the 30 day LIBOR ("London Interbank Offered Rate") and is subject to change from UBS.		On July 10, 2017 a portion of the outstanding credit line balance, $700,000, was converted to a 24 month fixed term annual interest rate of 3.244% with interest payable monthly. The remaining balance of the credit line has a stated reference rate of 0.249% + 337.5 basis points with interest payable monthly. The monthly interest rate on the remaining principal balance for November 2018 was 0.483%. The reference rate is based on the 30 day LIBOR ("London Interbank Offered Rate") and is subject to change from UBS.
12% Subordinated Notes
Debt Instrument [Line Items]
Interest rate							12.00%
Maturity date	Jan. 29, 2019		Jan. 29, 2019				Jan. 29, 2017
Payment terms							Payable semi-annually on January 29th and July 29th. Should the Board of Directors, on the maturity date, decide that the payment of the principal and any unpaid interest would impair the financial condition or operations of the Company, the Company may then elect a mandatory conversion of the unpaid principal and interest into the Company’s common stock at a conversion rate equal to 75% of the average closing price of the Company’s common stock over the 20 consecutive trading days preceding December 31, 2018.
Proceeds from subordinate notes							$ 595,000
Subordinate note, principal	$ 565,000		$ 565,000
Warrants issued	1,190,000		1,190,000
Warrants outstanding	980,000		980,000
Warrants, exercise price	$ 0.07		$ 0.07
Fair value of warrants	$ 29,075		$ 29,075
Weighted average risk free interest rate	1.22%		1.22%
Weighted average volatility rate	378.73%		378.73%
Amortization of debt discount	$ 10,903	$ 10,903
Unamortized debt discount	2,423		$ 13,326
Chief Executive Officer
Debt Instrument [Line Items]
Notes payable, related party	$ 250,100		$ 250,100
Related Party | 12% Subordinated Notes
Debt Instrument [Line Items]
Warrants issued	500,000
Warrants outstanding	500,000

Stockholders' Deficit - Convers

Stockholders' Deficit - Conversions of Series A Preferred Stock (Details)	9 Months Ended	12 Months Ended
	Nov. 30, 2018Numbershares	Feb. 28, 2018Numbershares	Feb. 28, 2017Numbershares	Feb. 29, 2016Numbershares	Feb. 28, 2015Numbershares	Feb. 28, 2014Numbershares	Feb. 28, 2013Numbershares	Feb. 29, 2012Numbershares	Feb. 28, 2011Numbershares	Feb. 28, 2010Numbershares	Feb. 28, 2009Numbershares	Feb. 29, 2008Numbershares
Series A preferred shares converted to common stock	690,197
Shares of common stock issued from conversion	2,070,591
Accredited investors | Number	44
Series A Convertible Preferred Stock
Series A preferred shares converted to common stock	0	14,997	0	10,000	3,000	151,000	18,000	0	102,000	51,900	237,000	102,300
Shares of common stock issued from conversion	0	44,991	0	30,000	9,000	453,000	54,000	0	306,000	155,700	711,000	306,900
Accredited investors | Number	0	1	0	1	1	9	2	0	4	4	12	10

Stockholders' Deficit - Preferr

Stockholders' Deficit - Preferred Stock Dividends Earned (Details)	9 Months Ended	12 Months Ended
	Nov. 30, 2018USD ($)Number	Feb. 28, 2018USD ($)Number	Feb. 28, 2017USD ($)Number	Feb. 29, 2016USD ($)Number	Feb. 28, 2015USD ($)Number	Feb. 28, 2014USD ($)Number	Feb. 28, 2013USD ($)Number	Feb. 29, 2012USD ($)Number	Feb. 28, 2011USD ($)Number	Feb. 28, 2010USD ($)Number	Feb. 28, 2009USD ($)Number	Feb. 29, 2008USD ($)Number	Feb. 28, 2007USD ($)Number
Equity [Abstract]
Preferred shareholders at period end | Number	56	56	57	57	58	59	68	70	70	74	78	90	100
Earned dividends	$ 96,223	$ 128,231	$ 130,415	$ 130,925	$ 132,634	$ 151,323	$ 161,906	$ 163,624	$ 173,707	$ 189,973	$ 209,973	$ 242,126	$ 155,311
Total accumulated dividends	$ 2,066,371

Stockholders' Deficit - Schedul

Stockholders' Deficit - Schedule of Common Stock Outstanding (Details) - USD ($)	9 Months Ended	12 Months Ended
	Nov. 30, 2018	Feb. 28, 2018
Equity [Abstract]
Common stock, Issued and Outstanding, beginning of period	51,532,364	51,487,373
Conversion of Series A Convertible Preferred Stock to common stock	0	44,991
Common stock, Issued and Outstanding, end of period	51,532,364	51,532,364
Conversion of Series A Convertible Preferred Stock to common stock, par value		$ 45

Stockholders' Deficit (Details

Stockholders' Deficit (Details Narrative)	9 Months Ended	12 Months Ended
	Nov. 30, 2018Number$ / sharesshares	Feb. 28, 2018Number$ / sharesshares	Feb. 28, 2017Numbershares	Feb. 29, 2016Numbershares	Feb. 28, 2015Numbershares	Feb. 28, 2014Numbershares	Feb. 28, 2013Numbershares	Feb. 29, 2012Numbershares	Feb. 28, 2011Numbershares	Feb. 28, 2010Numbershares	Feb. 28, 2009Numbershares	Feb. 29, 2008Numbershares
Preferred stock, par value in dollars | $ / shares	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series A preferred shares converted to common stock	690,197
Shares of common stock issued from conversion	2,070,591
Accredited investors | Number	44
Common stock, par value in dollars | $ / shares	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	51,532,364	51,532,364
Common stock, shares outstanding	51,532,364	51,532,364	51,487,373
Series A Convertible Preferred Stock
Preferred stock, par value in dollars | $ / shares	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,400,000	2,400,000
Preferred stock, shares issued	709,568	709,568
Preferred stock, shares outstanding	709,568	709,568
Series A preferred shares converted to common stock	0	14,997	0	10,000	3,000	151,000	18,000	0	102,000	51,900	237,000	102,300
Shares of common stock issued from conversion	0	44,991	0	30,000	9,000	453,000	54,000	0	306,000	155,700	711,000	306,900
Preferred stock, cumulative dividend rate	6.00%	6.00%
Accredited investors | Number	0	1	0	1	1	9	2	0	4	4	12	10

Warrants - Schedule of Stockhol

Warrants - Schedule of Stockholders' Equity Note Warrants and Rights (Details) - $ / shares	9 Months Ended
	Nov. 30, 2018	Feb. 28, 2018
Class of Warrant or Right [Line Items]
Remaining life (years)	7 months
12% Subordinated Notes
Class of Warrant or Right [Line Items]
Warrants	980,000	980,000
Exercise price	$ 0.07	$ 0.07
Remaining life (years)	4 months
Exercisable warrants remaining	980,000

Warrants - Schedule of Warrant

Warrants - Schedule of Warrant Activity (Details)	9 Months Ended
	Nov. 30, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Warrants outstanding, beginning of period	7,839,784
Issued
Expired / Cancelled / Forfeited	6,859,784
Warrants outstanding, end of period	980,000
Warrants exercisable, end of period	980,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date
Weighted average exercise price of warrants outstanding, beginning of period | $ / shares	$ 0.05
Weighted average exercise price of warrants outstanding, end of period | $ / shares	0.07
Weighted average exercise price of warrants exercisable, end of period | $ / shares	$ 0.07

Warrants (Details Narrative)

Warrants (Details Narrative)	9 Months Ended
	Nov. 30, 2018USD ($)$ / sharesshares
Equity [Abstract]
Warrants expired | shares	6,859,784
Weighted average exercise price | $ / shares	$ 0.07
Weighted average remaining life	7 months
Intrinsic value | $	$ 0

Income Taxes - Income Tax Expen

Income Taxes - Income Tax Expense Benefit Reconciliation (Details) - USD ($)	9 Months Ended	12 Months Ended
	Nov. 30, 2018	Feb. 28, 2018
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation
Computed at U.S. and state statutory rates	$ (593,325)	$ (981,966)
Permanent differences	1,570	29,060
New tax law adjustment	0	2,912,689
Changes in valuation allowance	591,755	(1,959,783)
Income tax expense (benefit)	$ 0	$ 0

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)	Nov. 30, 2018	Feb. 28, 2018
Deferred tax assets:
Net operating loss carryforwards	$ 9,013,635	$ 8,413,128
Crude oil and natural gas properties	38,682	47,434
Stock based compensation	66,187	66,187
Other	27,838	27,838
Less valuation allowance	(9,146,342)	(8,554,587)
Deferred tax assets, net	$ 0	$ 0

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Nov. 30, 2018	Feb. 28, 2018
Income Tax Disclosure [Abstract]
Reduction in corporate income tax rate	21.00%
Net operating loss carryforwards, federal and state, approximate	$ 30,206,552
NOL portion of loss incurred under the Tax Cuts and Jobs Act	$ 2,963,803
Net operating loss carryforwards, expiration date	Feb. 28, 2024
Approximate increase in valuation allowance	$ 591,755	$ 1,959,784

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details)	Nov. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
February 28, 2019	$ 3,532
February 29, 2020	9,300
February 28, 2021	6,200
February 28, 2022	0
February 28, 2023 and thereafter	0
Totals	$ 19,032

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)		1 Months Ended	9 Months Ended
		Dec. 31, 2018	Nov. 30, 2018	Nov. 30, 2017
Subsequent Event [Line Items]
Repayment of revolving credit facility balance			$ 95,000	$ 45,000
Subsequent Event | Revolving Credit Facility | Maximilian Loan
Subsequent Event [Line Items]
Repayment of revolving credit facility balance	[1]	$ 700,000
Extinguishment of debt		$ 12,600,000
Settlement, description		The Company acquired an additional 40% working interest in the Daybreak's Michigan Project along with a note receivable from its Michigan Project Partner.  Daybreak now owns a 70% working interest in its Michigan Project.  Furthermore, all encumbrances have been removed from all the Company's leases in California and Michigan.  The effects of this transaction will be reflected on the Company's financial statements at February 28, 2019.  The $700,000 paid to Maximilian was obtained from private investors by selling a Production Payment from future wells to be drilled in California and Michigan. No additional debt was created from this Production Payment sale.
[1]	The $700,000 paid to Maximilian was obtained from private investors (of which $300,000 was from a related party).