Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 31, 2019 | Dec. 03, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | Artificial Intelligence Technology Solutions Inc. | |
Entity Central Index Key | 0001498148 | |
Document Type | 10-Q/A | |
Entity Incorporation, State or Country Code | NV | |
Entity File Number | 000-55079 | |
Document Period End Date | Aug. 31, 2019 | |
Amendment Flag | true | |
Amendment Description | EXPLANATORY NOTE The purpose of this Amendment No. 1 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended August 31, 2019 (“Form 10-Q”) is to submit Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 consists of the Interactive Data Files from the Registrant’s Form 10-Q for the quarterly period ended August 31, 2019, filed with the Securities and Exchange Commission on December 5, 2019. We also revised the outstanding shares of the issuer’s common stock to December 3, 2019: 3,851,686,859 shares. Additionally, we corrected typographical errors as follows: 1) Page 4, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. The weighted average common share outstanding – diluted for the three months ended August 31, 2019 was corrected to 543,026,466 from 14,782,274,832. 2) Page 16, note 8. FIXED ASSETS. In the last paragraph, the year was corrected to 2019: “Depreciation expense was $5,461 and $10,912 for the three and six months ended August 31, 2019, respectively, and $14,886 and $29,898 for the three and six months ended August 31, 2018, respectively.” 3) Page 19, note 11. CONVERTIBLE NOTES PAYABLE. In the first full paragraph, the year was corrected to 2018: “During the three months ended August 31, 2019 and 2018, the Company incurred original issue discounts of $0 and $13,960, respectively, and derivative discounts of $0 and $123,401, respectively, related to new convertible notes payable.” 4) Page 24, note 18. EARNINGS (LOSS) PER SHARE. In the table, the dilutive effect of common stock equivalents for the comparative three months ended August 31, 2018, and August 31, 2019 were removed and the following table was added: The anti-dilutive shares of common stock equivalents for the three and six months ended August 31, 2019 and 2018 were as follows: For the Three Months Ended August 31, For the Six Months Ended August 31, 2019 2018 2019 2018 Stock options and warrants — 2,294 — — Convertible debt 9,406,564,462 542,730,108 — — Preferred stock 4,706,857,132 9,377,102 — — Total 14,113,421,594 552,109,504 — — | |
Current Fiscal Year End Date | --02-29 | |
Entity Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,851,686,859 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 | ||
Current assets: | ||||
Cash | $ 5,575 | $ 21,192 | [1] | |
Accounts receivable | 57,186 | 39,964 | [1] | |
Device parts inventory | 178,862 | 273,496 | [1] | |
Prepaid expenses and deposits | 18,778 | [1] | ||
Vehicles held for disposal | 13,251 | 13,251 | [1] | |
Total current assets | 254,874 | 366,681 | [1] | |
Revenue earning devices, net of accumulated depreciation of 78,340 and $42,784 respectively | 272,978 | 187,174 | [1] | |
Fixed assets, net of accumulated depreciation of $40,614 and $29,701, respectively | 26,281 | 37,194 | [1] | |
Total assets | 554,133 | 591,049 | [1] | |
Current liabilities: | ||||
Accounts payable and accrued expenses | 1,007,225 | 1,486,488 | [1] | |
Advances payable | 1,594 | 12,637 | [1] | |
Balance owed WeSecure | 170,000 | 25,000 | [1] | |
Customer deposits | 10,000 | 10,000 | [1] | |
Current portion of deferred variable payment obligation | 10,013 | 2,108 | [1] | |
Current portion of convertible notes payable, net of discount of $60,960 and $718,015, respectively | 5,814,154 | 5,484,446 | [1] | |
Loan payable - related party | 1,153,904 | 782,844 | [1] | |
Current portion of loans payable | 503,420 | 321,946 | [1] | |
Vehicle loan - current portion | 57,286 | 57,287 | [1] | |
Current portion of accrued interest payable | 1,651,214 | 1,390,706 | [1] | |
Derivative liability | 3,310,254 | 6,170,139 | [1] | |
Total current liabilities | 13,689,064 | 15,743,601 | [1] | |
Convertible notes payable, net of discount of $213,509 and $302,105 respectively | 351,490 | 262,895 | [1] | |
Loans payable | 140,535 | 140,535 | [1] | |
Deferred variable payment obligation | 1,002,237 | 190,392 | [1] | |
Accrued interest payable | 109,138 | 85,344 | [1] | |
Total liabilities | 15,292,464 | 16,422,767 | [1] | |
Commitments and Contingencies | [1] | |||
Stockholders' deficit: | ||||
Preferred Stock, undesignated; 15,645,650 shares authorized; no shares issued and outstanding at August 31, 2019 and February 28, 2019, respectively | [1] | |||
Series E Preferred Stock, $0.001 par value; 4,350,000 shares authorized; 4,350,000 and 4,350,000 shares issued and outstanding, respectively | 4,350 | 4,350 | [1] | |
Series F Convertible Preferred Stock, $1.00 par value; 4,350 shares authorized; 3,450 and 3,450 shares issued and outstanding, respectively | 3,450 | 3,450 | [1] | |
Common Stock, $0.00001 par value; 5,000,000,000 shares authorized 1,364,306,415 and 200,261,790 shares issued and outstanding, respectively see Note 16 | 13,643 | 2,003 | [1] | |
Additional paid-in capital | 4,159,978 | 3,393,603 | [1] | |
Preferred stock to be issued | 174,070 | 174,070 | [1] | |
Accumulated deficit | (19,093,822) | (19,409,194) | [1] | |
Total stockholders' deficit | (14,738,331) | (15,831,718) | [1] | |
Total liabilities and stockholders' deficit | $ 554,133 | $ 591,049 | [1] | |
[1] | Derived from audited information. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, Revenue earning devices | $ 78,340 | $ 42,784 |
Accumulated depreciation, Fixed assets | 40,614 | 29,701 |
Discount of current portion of convertible notes payable | 60,960 | 718,015 |
Discount of convertible notes payable | $ 213,509 | $ 302,105 |
Preferred stock, undesignated, authorized | 15,645,650 | 15,645,650 |
Preferred stock, undesignated, issued | ||
Preferred stock, undesignated, outstanding | ||
Series E Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Series E Preferred Stock, authorized | 4,350,000 | 4,350,000 |
Series E Preferred Stock, issued | 4,350,000 | 4,350,000 |
Series E Preferred Stock, outstanding | 4,350,000 | 4,350,000 |
Series F Preferred Stock, par value (in dollars per share) | $ 1 | $ 1 |
Series F Preferred Stock, authorized | 4,350 | 4,350 |
Series F Preferred Stock, issued | 3,450 | 3,450 |
Series F Preferred Stock, outstanding | 3,450 | 3,450 |
Common stock, par value (in dollars per shares) | $ 0.00001 | $ 0.00001 |
Common stock, authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, issued | 1,364,306,415 | 200,261,790 |
Common stock, outstanding | 1,364,306,415 | 200,261,790 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 75,024 | $ 10,175 | $ 115,329 | $ 26,841 |
Cost of Goods Sold | 31,250 | 203 | 35,509 | |
Gross Profit (Loss) | 75,024 | (21,075) | 115,126 | (8,668) |
Operating expenses: | ||||
Research and development | 108,097 | 64,501 | 55,944 | 233,131 |
General and administrative | 504,358 | 840,752 | 904,449 | 1,751,719 |
Depreciation and amortization | 25,250 | 29,560 | 46,468 | 51,413 |
Loss on impairment of fixed assets | 4,739 | 4,739 | ||
Total operating expenses | 637,705 | 939,552 | 1,006,861 | 2,041,002 |
Loss from operations | (562,681) | (960,627) | (891,735) | (2,049,670) |
Other income (expense), net: | ||||
Change in fair value of derivative liabilities | 712,466 | (1,859,253) | 2,476,567 | 15,992,640 |
Interest expense | (525,019) | (1,531,674) | (1,381,969) | (3,684,758) |
Gain (loss) on settlement of debt | (322,755) | 112,509 | (54,610) | |
Total other income (expense), net | 187,447 | (3,713,682) | 1,207,107 | 12,253,272 |
Net income (loss) | $ (375,234) | $ (4,674,309) | $ 315,372 | $ 10,203,602 |
Net income ( loss) per share - basic (in dollars per share) | $ (2.49) | $ (0.01) | $ 6.4 | |
Net income (loss) per share - diluted (in dollars per share) | $ (2.49) | $ (0.01) | ||
Weighted average common share outstanding - basic (in shares) | 543,026,466 | 1,878,320 | 305,487,172 | 1,594,296 |
Weighted average common share outstanding - diluted (in shares) | 543,026,466 | 1,878,320 | 14,418,908,766 | 550,921,512 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDER'S DEFICIT (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Series E Preferred Stock [Member] | Series F Preferred Stock [Member] | Total | |
Balance at beginning at Feb. 28, 2018 | $ 12 | $ 1,233,300 | $ (35,504,029) | $ 4,350 | $ 3,450 | $ (34,262,917) | |
Balance at beginning (in shares) at Feb. 28, 2018 | 1,250,600 | 4,350,000 | 3,450 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Preferred stock payable | $ 174,070 | 174,070 | |||||
Adjustment to derivative liability | 757,222 | 757,222 | |||||
Common stock issued for debt conversion | $ 15 | $ 468,848 | $ 468,863 | ||||
Common stock issued for debt conversion (in shares) | 1,467,953 | ||||||
Common Stock adjustment for reverse split | 82,050 | 82,050 | |||||
Common Stock adjustment for reverse split (in shares) | (552) | ||||||
Stock based compensation | $ 9,571 | $ 9,571 | |||||
Net income (loss) | 10,203,602 | 10,203,602 | |||||
Balance at end at Aug. 31, 2018 | $ 27 | 2,550,991 | (25,300,427) | $ 4,350 | $ 177,520 | (22,567,539) | |
Balance at end (in shares) at Aug. 31, 2018 | 2,718,001 | 4,350,000 | 3,450 | ||||
Balance at beginning at Feb. 28, 2019 | $ 2,003 | 3,393,603 | (19,409,194) | $ 4,350 | $ 177,520 | (15,831,718) | [1] |
Balance at beginning (in shares) at Feb. 28, 2019 | 200,261,790 | 4,350,000 | 3,450 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adjustment to derivative liability | 383,318 | 383,318 | |||||
Common stock issued for debt conversion | $ 11,640 | 383,057 | 394,697 | ||||
Common stock issued for debt conversion (in shares) | 1,164,044,625 | ||||||
Net income (loss) | 315,372 | 315,372 | |||||
Balance at end at Aug. 31, 2019 | $ 13,643 | $ 4,159,978 | $ (19,093,822) | $ 4,350 | $ 177,520 | $ (14,738,331) | |
Balance at end (in shares) at Aug. 31, 2019 | 1,364,306,415 | 4,350,000 | 3,450 | ||||
[1] | Derived from audited information. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
CASH FLOWS USED IN OPERATING ACTIVITIES: | |||
Net income (loss) | $ 315,372 | $ 10,203,602 | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 46,468 | 51,413 | |
Provision for note receivable | 40,000 | ||
Loss on impairment of fixed assets | 4,739 | ||
Stock based compensation | 0 | 9,571 | |
Change in fair value of derivative liabilities | (2,476,567) | (15,992,640) | |
Interest expense related to penalties from debt defaults | 221,055 | ||
Interest expense related to derivative liability in excess of face value of debt | 684,781 | ||
Amortization of debt discounts | 657,058 | 2,352,222 | |
(Gain) loss on settlement of debt | (112,509) | 54,610 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (17,222) | 9,627 | |
Prepaid expenses | 18,778 | 12,826 | |
Device parts inventory | (3,153) | 50,529 | |
Accounts payable and accrued expenses | (46,510) | 784,172 | |
Balance owed WeSecure | (10,000) | ||
Accrued interest payable | 504,616 | 403,799 | |
Advances payable | (11,043) | ||
Net cash used in operating activities | (1,134,712) | (1,109,694) | |
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (23,572) | (188,690) | |
Cash paid for security deposit | (75) | ||
Net cash used in investing activities | (23,572) | (188,765) | |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES: | |||
Proceeds from convertible notes payable, net | 818,108 | ||
Proceeds from deferred variable payment obligation | 819,750 | ||
Proceeds from loans payable | 263,429 | 171,040 | |
Repayment of loans payable | (100,038) | ||
Net borrowings on loan payable - related party | 159,526 | 135,908 | |
Repayment of vehicle loan | (8,984) | ||
Proceeds from sale of preferred shares | 174,070 | ||
Net cash provided by financing activities | 1,142,667 | 1,290,142 | |
Net change in cash | (15,617) | (8,317) | |
Cash, beginning of period | 21,192 | [1] | 24,773 |
Cash, end of period | 5,575 | 16,456 | |
Supplemental disclosure of cash and non-cash transactions: | |||
Cash paid for interest | 8,654 | 3,213 | |
Cash paid for taxes | |||
Noncash investing and financing activities: | |||
Debt discount from derivative liabilities | 924,009 | ||
Inventory converted to revenue earning devices | 97,788 | 94,575 | |
Conversion of convertible notes and interest to shares of common stock | 394,697 | 550,913 | |
Release of derivative liability on conversion of convertible notes payable | 383,318 | 757,222 | |
Settlement and exchange of convertible notes payable | 575,286 | ||
Capitalization of accrued interest to convertible notes payable and loans payable | $ 56,280 | $ 58,288 | |
[1] | Derived from audited information. |
GENERAL INFORMATION
GENERAL INFORMATION | 6 Months Ended |
Aug. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL INFORMATION | 1. GENERAL INFORMATION Artificial Intelligence Technology Solutions Inc. (“AITX” or the “Company”) was incorporated in Florida on March 25, 2010 and reincorporated in Nevada on February 17, 2015. On August 24, 2018, Artificial Intelligence Technology Solutions Inc., changed its name from On the Move Systems Corp (“OMVS”). Robotic Assistance Devices, LLC (“RAD”), was incorporated in the State of Nevada on July 26, 2016 as a LLC. On July 25, 2017, Robotic Assistance Devices LLC converted to a C Corporation, Robotic Assistance Devices, Inc. through the issuance of 10,000 common shares to its sole shareholder. On August 28, 2017, AITX completed the acquisition of RAD (the “Acquisition”), whereby AITX acquired all the ownership and equity interest in RAD for 3,350,000 shares of AITX Series E Preferred Stock and 2,450 shares of Series F Convertible Preferred Stock. AITX’s prior business focus was transportation services, and AITX was exploring the on-demand logistics market by developing a network of logistics partnerships. As a result of the closing of the Acquisition, AITX has succeeded to the business of RAD, in which AITX purchased all of the outstanding shares of capital stock of RAD. As a result, AITX’s business going forward will consist of one segment activity which is the delivery of artificial intelligence and robotic solutions for operational, security and monitoring needs. The Acquisition was treated as a reverse recapitalization effected by a share exchange for financial accounting and reporting purposes since substantially all of AITX’s operations were disposed of as part of the consummation of the transaction. Therefore, no goodwill or other intangible assets were recorded by AITX as a result of the Acquisition. RAD is treated as the accounting acquirer as its stockholders control the Company after the Acquisition, even though AITX was the legal acquirer. As a result, the assets and liabilities and the historical operations that are reflected in these financial statements are those of RAD as if RAD had always been the reporting company. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Aug. 31, 2019 | |
Going Concern | |
GOING CONECRN | 2. GOING CONCERN The accompanying unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern. For the six months ended August 31, 2019, the Company had negative cash flow from operating activities of $1,134,712. As of August 31, 2019, the Company has an accumulated deficit of $19,093,822, and negative working capital of $13,434,190. Management does not anticipate having positive cash flow from operations in the near future. These factors raise a substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the issuance of these financial statements. The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business. Management has plans to address the Company’s financial situation as follows: In the near term, management plans to continue to focus on raising the funds necessary to implement the Company’s business plan. Management will continue to seek out debt financing to obtain the capital required to meet the Company’s financial obligations. There is no assurance, however, that lenders will continue to advance capital to the Company or that the new business operations will be profitable. The possibility of failure in obtaining additional funding and the potential inability to achieve profitability raises substantial doubts about the Company’s ability to continue as a going concern. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | 3. ACCOUNTING POLICIES Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and in conformity with the condensing instructions on Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto in the Company’s latest Annual Report filed with the SEC on Form 10-K as amended and filed on November 4, 2019. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Robotic Assistance Devices, Inc., On the Move Experience, LLC and OMV Transports, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of such statements. The results of operations for the six months ended August 31, 2019 are not necessarily indicative of the results that may be expected for the entire year. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Estimates are used in the fair value calculation of the derivative liability, in determination of cash flows and fair value determinations in impairment testing. Cash The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market instruments. The Company places its cash and cash equivalents with high-quality, U.S. financial institutions and, to date has not experienced losses on any of its balances. Accounts Receivable Accounts receivable are comprised of balances due from customers, net of estimated allowances for uncollectible accounts. In determining collectability, historical trends are evaluated, and specific customer issues are reviewed on a periodic basis to arrive at appropriate allowances. There were no allowances provided for the six months ended August 31, 2019 and the year ended February 28, 2019. Device Parts Inventory Device parts inventory is stated at the lower of cost or net realizable value using the weighted average cost method. The Company records a valuation reserve for obsolete and slow-moving inventory, relying principally on specific identification of such inventory. The Company uses these device parts in the assembly of revenue earning devices (and demo devices) as well as research and development. Depending on use, the Company will transfer the parts to the corresponding asset or expense if used in research and development. A charge to income is taken when factors that would result in a need for an increase in the valuation, such as excess or obsolete inventory, are noted. Revenue Earning Devices Revenue earning devices are stated at cost. Depreciation is provided on a straight-line basis over the estimated useful life of 48 months. The Company continually evaluates revenue earning devices to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the devices should be evaluated for possible impairment. The Company uses a combination of the undiscounted cash flows and market approaches in assessing whether an asset has been impaired. The Company measures impairment losses based upon the amount by which the carrying amount of the asset exceeds the fair value. Fixed Assets Fixed assets are stated at cost. Depreciation is provided on the straight-line method based on the estimated useful lives of the respective assets which range from three to five years. Major repairs or improvements are capitalized. Minor replacements and maintenance and repairs which do not improve or extend asset lives are expensed currently. Demo Devices 4 years Vehicles 3 years Computer equipment 3 years Office equipment 4 years The Company periodically evaluates the fair value of fixed assets whenever events or changes in circumstances indicate that its carrying amounts may not be recoverable. Upon retirement or other disposition of fixed assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is recognized in income. Research and Development Research and development costs are expensed in the period they are incurred in accordance with ASC 730, Research and Development Contingencies Occasionally, the Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. Sales of Future Revenues The Company has entered into transactions, as more fully described in footnote 10, in which it has received funding from investors in exchange for which it will make payments to those investors based on the level of sales of certain revenue categories, generally based on a percentage of sales for those certain revenues. The Company determines whether these agreements constitute sales of future revenues or are in substance debt based on the facts and circumstances of each agreement, with the following primary criteria determinative of whether the agreement constitutes a sale of future revenues or debt: ● Does the agreement purport, in substance, to be a sale ● Does the Company have continuing involvement in the generation of cash flows due the investor ● Is the transaction cancellable by either party through payment of a lump sum or other transfer of assets ● Is the investors rate of return is implicitly limited by the terms of the agreement ● Does the Company’s revenue for a reporting period underlying the agreement have only a minimal impact on the investor’s rate of return ● Does the investor have recourse relating to payments due In the event a transaction is determined to be a sale of future revenues, it is recorded as deferred revenue and amortized using the sum-of-the-revenue method. In the event a transaction is determined to be debt, it is recorded as debt and amortized using the effective interest method. As of the date of these financial statements, the Company has determined that all such agreements are debt. Revenue Recognition ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Revenue Recognition (Topic 605) Income Taxes On July 25, 2017, Robotic Assistance Devices LLC converted to a C Corporation, Robotic Assistance Devices, Inc., through the issuance of 10,000 common shares to its sole shareholder. Prior to the conversion on July 25, 2017, income taxes are not provided in the financial statements as presented as RAD was an LLC and the income or loss flowed through to the shareholder for the two months ended February 28, 2017. Thereafter, income taxes are accounted for under the asset and liability method from that date forward. Deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities, and net operating loss and other tax credit carry-forwards. These items are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Leases Lease agreements are evaluated to determine if they are capital leases meeting any of the following criteria at inception: (a) transfer of ownership; (b) bargain purchase option; (c) the lease term is equal to 75 percent or more of the estimated economic life of the leased property; or (d) the present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. If at its inception, a lease meets any of the four lease criteria above, the lease is classified by the Company as a capital lease; and if none of the four criteria are met, the lease is classified by the Company as an operating lease. Operating lease payments are recognized as an expense in the income statement on a straight-line basis over the lease term, whereby an equal amount of rent expense is attributed to each period during the term of the lease, regardless of when actual payments are made. This generally results in rent expense in excess of cash payments during the early years of a lease and rent expense less than cash payments in the later years. The difference between rent expense recognized and actual rental payments is recorded as deferred rent and included in liabilities. Distinguishing Liabilities from Equity The Company relies on the guidance provided by ASC Topic 480, Distinguishing Liabilities from Equity Once the Company determines that a financial instrument should not be classified as a liability, the Company determines whether the financial instrument should be presented between the liability section and the equity section of the balance sheet (“temporary equity”). The Company will determine temporary equity classification if the redemption of the financial instrument is outside the control of the Company (i.e. at the option of the holder). Otherwise, the Company accounts for the financial instrument as permanent equity. Initial Measurement The Company records its financial instruments classified as liability, temporary equity or permanent equity at issuance at the fair value, or cash received. Subsequent Measurement – Financial Instruments Classified as Liabilities The Company records the fair value of its financial instruments classified as liabilities at each subsequent measurement date. The changes in fair value of its financial instruments classified as liabilities are recorded as other income (expenses). Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurements and Disclosures ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC Topic 820 are described as follows: ● Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. ● Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 – Inputs that are unobservable for the asset or liability. Measured on a Recurring Basis The following table presents information about our liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell: Amount at Fair Value Measurement Using Fair Value Level 1 Level 2 Level 3 August 31, 2019 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 3,310,254 $ — $ — $ 3,310,254 February 28, 2019 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 6,170,139 $ — $ — $ 6,170,139 See Note 15 for specific inputs used and a description of the model used in determining fair value. The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, prepaid expenses and advances, accounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. Earnings (Loss) per Share Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used to determine the number of shares assumed to be purchased from the exercise of stock options and/or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive. Basic loss per common share is computed based on the weighted average number of shares outstanding during the period. Diluted loss per share is computed in a manner similar to the basic loss per share, except the weighted-average number of shares outstanding is increased to include all common shares, including those with the potential to be issued by virtue of convertible debt and other such convertible instruments. Diluted loss per share contemplates a complete conversion to common shares of all convertible instruments only if they are dilutive in nature with regards to earnings per share. See additional disclosure in Note 18. Recently Adopted Accounting Pronouncements See discussion of the adoption of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” In May 2017, the FASB issued ASU 2017-09, Modification Accounting for Share-Based Payment Arrangements On March 1, 2019 the Company adopted ASU No. 2016-02, Leases (Topic 842) Recently Issued Accounting Pronouncements In September 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses |
CORRECTION OF AN ERROR IN PREVI
CORRECTION OF AN ERROR IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 6 Months Ended |
Aug. 31, 2019 | |
Correction Of Error In Previously Issued Financial Statements | |
CORRECTION OF AN ERROR IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 4. CORRECTION OF AN ERROR IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS At February 28, 2019 the company corrected an error on how it was recording the issuance of warrants that were issued along with share conversions throughout the fiscal year. The Company had been recording it as a separate transaction recording the fair value of the warrants at conversion when the Company should have been including the warrants as part of the fair value of the share conversion. Accordingly $57,538 and $530,498 in stock based compensation was reduced for the three months and six ending August 31, 2018, respectively from the results originally reported, with a corresponding decease in paid in capital. The comparative figures have been adjusted throughout this document to reflect this change. The impact on the financial statements for the three and six months ended August 31, 2018 are as follows: CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS Originally stated Restated Three Months Adjustment Three Months Revenues $ 10,175 $ — $ 10,175 Cost of Goods Sold 31,250 — 31,250 Gross Profit (21,075 ) — (21,075 ) Operating expenses: Research and development 64,501 — 64,501 General and administrative 898,290 (57,538 ) 840,752 Depreciation and amortization 29,560 — 29,560 Loss on impairment of fixed assets 4,739 — 4,739 Total operating expenses 997,090 (57,538 ) 939,552 Loss from operations (1,018,165 ) 57,538 (960,627 ) Total other income (expense), net (3,713,682 ) — (3,713,682 ) Net income (loss) $ (4,731,847 ) $ 57,538 $ (4,674,309 ) Net income ( loss) per share - basic $ (2.52 ) — $ (2.49 ) Net income (loss) per share - diluted $ (2.52 ) — $ (2.49 ) Originally stated Restated Six Months Ended Adjustment Six Months Ended Revenues $ 26,841 $ — $ 26,841 Cost of Goods Sold 35,509 — 35,509 Gross Profit (8,668 ) — (8,668 ) Operating expenses: Research and development 233,131 — 233,131 General and administrative 2,282,217 (530,498 ) 1,751,719 Depreciation and amortization 51,413 51,413 Loss on impairment of fixed assets 4,739 — 4,739 Total operating expenses 2,571,500 (530,498 ) 2,041,002 Loss from operations (2,580,168 ) 530,498 (2,049,670 ) Total other income (expense), net 12,253,272 — 12,253,272 Net income (loss) $ 9,673,104 $ 530,498 $ 10,203,602 Net income ( loss) per share - basic $ 6.07 — $ 6.40 Net income (loss) per share - diluted $ (0.01 ) — $ (0.01 ) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 9,673,104 $ 530,498 $ 10,203,602 Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 51,413 — 51,413 Provision for note receivable 40,000 — 40,000 Loss on impairment of fixed assets 4,739 — 4,739 Stock based compensation 540,069 (530,498 ) 9,571 Change in fair value of derivative liabilities (15,992,640 ) — (15,992,640 ) Interest expense related to penalties from debt defaults 221,055 — 221,055 Interest expense related to derivative liability in excess of face value of debt 684,781 — 684,781 Amortization of debt discounts 2,352,222 — 2,352,222 Loss on settlement of debt 54,610 — 54,610 Changes in operating assets and liabilities: — Accounts receivable 9,627 — 9,627 Prepaid expenses 12,826 — 12,826 Device parts inventory 50,529 — 50,529 Accounts payable and accrued expenses 784,172 — 784,172 Accrued interest payable 403,799 — 403,799 Net cash used in operating activities (1,109,694 ) — (1,109,694 ) Net cash used in investing activities (188,765 ) — (188,765 ) Net cash provided by financing activities 1,290,142 — 1,290,142 Net change in cash (8,317 ) — (8,317 ) Cash, beginning of period 24,773 — 24,773 Cash, end of period $ 16,456 $ — $ 16,456 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Aug. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 5. REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue is earned primarily from two sources: 1) direct sales of goods or services and 2) short-term rentals. Direct sales of goods or services are accounted for under Topic 606, and short-term rentals are accounted for under Topic 840 (which addresses lease accounting and will be updated after the adoption of Topic 842 on March 1, 2019) as operating leases. As disclosed in the revenue recognition section of Note 3 – Accounting Polices, the Company adopted Topic 606 in accordance with the effective date on March 1, 2018. Note 3 includes disclosures regarding the Company’s method of adoption and the impact on the Company’s financial statements. Revenue is recognized on direct sales of goods or services when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. After adopting Topic 842, also referred to above in Note 3, the Company is accounting for revenue earned from rental activities where an identified asset is transferred to the customer and the customer has the ability to control that asset. The Company recognizes revenue from its device rental activities when persuasive evidence of a contract exists, the performance obligations have been satisfied, the transaction price is fixed or determinable and collection is reasonably assured. Performance obligations associated with device rental transactions are satisfied over the rental period. Rental periods are short-term in nature. Therefore, the Company has elected to apply the practical expedient which eliminates the requirement to disclose information about remaining performance obligations. Payments are due from customers at the completion of the rental, except for customers with negotiated payment terms, generally net 30 days or less, which are invoiced and remain as accounts receivable until collected. The following table presents revenues from contracts with customers disaggregated by product/service: Three Months Ended Six Months Ended Device rental activities $ 75,024 $ 115,329 Direct sales of goods and services — — $ 75,024 $ 115,329 Three Months Ended Six Months Ended Device rental activities $ 10,175 $ 26,431 Direct sales of goods and services — 410 $ 10,175 $ 26,841 |
PREPAID EXPENSES AND DEPOSITS
PREPAID EXPENSES AND DEPOSITS | 6 Months Ended |
Aug. 31, 2019 | |
Prepaid Expenses And Deposits | |
PREPAID EXPENSES AND DEPOSITS | 6. PREPAID EXPENSES AND DEPOSITS Prepaid expenses and deposits on device parts expected to be received within one year were comprised of the following: August 31, 2019 February 28, 2019 Prepaid insurance $ — $ 18,778 $ — $ 18,778 |
REVENUE EARNING DEVICES
REVENUE EARNING DEVICES | 6 Months Ended |
Aug. 31, 2019 | |
Revenue Earning Devices | |
REVENUE EARNING DEVICES | 7. REVENUE EARNING DEVICES Revenue earning devices consisted of the following: August 31, 2019 February 28, 2019 Revenue earning devices $ 351,318 $ 229,958 Less: Accumulated depreciation (78,340 ) (42,784 ) $ 272,978 $ 187,174 During the six months ended August 31, 2019, the Company made total additions to revenue earning devices of $121,360 including $97,788 in inventory transfers. During the six months ended August 31, 2018, the Company made total additions to revenue earning devices of $188,690. Depreciation expense was $19,789 and $35,556 for the three and six months ended August 31, 2019, respectively, and $11,579 and $14,788 for the three and six months ended August 31, 2018, respectively. |
FIXED ASSETS
FIXED ASSETS | 6 Months Ended |
Aug. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | 8. FIXED ASSETS Fixed assets consisted of the following: August 31, 2019 February 28, 2019 Automobile $ 40,953 $ 40,953 Computer equipment 20,262 20,262 Office equipment 5,680 5,680 Leasehold improvements — — 66,895 66,895 Less: Accumulated depreciation (40,614 ) (29,701 ) $ 26,281 $ 37,194 During the six months ended August, 2019 and August 31, 2018, the Company made no additions to fixed assets. Depreciation expense was $5,461 and $10,912 for the three and six months ended August 31, 2019, respectively, and $14,886 and $29,898 for the three and six months ended August 31, 2018, respectively. |
CUSTOMER DEPOSITS
CUSTOMER DEPOSITS | 6 Months Ended |
Aug. 31, 2019 | |
Customer Deposits | |
CUSTOMER DEPOSITS | 9. CUSTOMER DEPOSITS As of February 28, 2017, the Company received a $10,000 deposit from a customer towards the rental of equipment with no expected delivery, and accordingly the deposit is expected to be returned to the customer sometime in fiscal 2020. |
DEFERRED VARIABLE PAYMENT OBLIG
DEFERRED VARIABLE PAYMENT OBLIGATION | 6 Months Ended |
Aug. 31, 2019 | |
Deferred Variable Payment Obligation | |
DEFERRED VARIABLE PAYMENT OBLIGATION | 10. DEFERRED VARIABLE PAYMENT OBLIGATION On February 1, 2019 the Company entered into an agreement with an investor whereby the investor would pay up to $900,000 (including $192,500 paid in January and February 2019) in exchange for a perpetual 9% rate payment (Payments) on the Company’s reported quarterly revenue from operations excluding any gains or losses from financial instruments (Revenues). If the total investor advances turns out to be less than $900,000, this would not constitute a breach of the agreement, rather the 9% rate would be adjusted on a pro-rata basis. The investor has agreed to pay the remaining balance in minimum $60,000 monthly installments, concluding November 30, 2019. At August 31, 2019, $706,500 has been paid to the Company. On May 9, 2019 the Company entered into two similar arrangements with two investors: (1) The investor would pay up to $400,000 (including $143,556 paid in May 2019) in exchange for a perpetual 4% rate Payment on the Company’s reported quarterly Revenues. If the total investor advances turns out to be less than $400,000, this would not constitute a breach of the agreement, rather the 4% rate would be adjusted on a pro-rata basis. The investor has agreed to pay the remaining balance in four monthly installments of $64,111 starting July 1, 2019. At August 31, 2019, $271,778 has been paid to the Company. (2) The investor would pay up to $50,000 (including $17,444 paid in May 2019) in exchange for a perpetual 1.11% rate Payment on the Company’s reported quarterly Revenues. If the total investor advances turns out to be less than $50,000, this would not constitute a breach of the agreement, rather the 1.11% rate would be adjusted on a pro-rata basis. The investor has agreed to pay the remaining balance in four monthly installments of $8,014 starting July 1, 2019. At August 31, 2019, $33,972 has been paid to the Company. These variable payments (Payments) are to be made 30 days after the fiscal quarter. If the Payments would deplete RAD’s available cash by more than 30%, the Payments may be deferred for up to 12 months after the quarterly report at an interest rate of 6% per annum on the unpaid amount. In the event that at least 10% of the assets of the Company are sold by the Company, the investors would be entitled to the fair market value (FMV) of all future Payments associated with the assets sold as determined by an independent valuator to be chosen by the investors. The FMV cannot exceed 30% of the total asset disposition price defined as the total price paid for the assets plus all future Payments associated with the assets sold. In the event that the common or preferred shares are sold by the Company to a third party as to effect a change in control, then the investors must be paid the FMV of all future Payments in one lump payment. The FMV cannot exceed 30% of the share disposition price defined as the total price the third party paid for the shares plus the total value of all future Payments. The Payments will first become payable on June 30, 2019 based on the quarterly Revenues for the quarter ended May 31, 2019 and will accrue every quarter thereafter. The Company retains total involvement in the generation of cash flows from these revenue streams that form the basis of the payments to be made to the investors under this agreement. Because of this, the Company has determined that the agreements constitute debt agreements. As of August 31, 2019, the Company has not yet completed its assessment of the likely cash flows under these agreements, and thus, has not yet determined the effective interest rate under these agreements. The Company expects to have completed its analysis of the expected cash flows prior to the filing of the fiscal third quarter November 30, 2019 filing. As of August 31, 2019, the Company owes the investors approximately $10,000. No amounts have been recorded to date as interest, as the amounts are immaterial. As of August 31, 2019, and February 28, 2019, the balances under these agreements were $1,012,250 and $192,500, respectively. As of the date of these financial statements the investors had fully funded their commitments under the agreements. |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | 11. CONVERTIBLE NOTES PAYABLE Convertible notes payable consisted of the following: Balance Balance Interest Conversion August 31, February 28, Issued Maturity Rate Rate per Share 2019 2019 February 28, 2011 February 26, 2013 * 7% $0.015 $— $32,600 January 31, 2013 February 28, 2017 * 10% $0.010 (3) 119,091 119,091 May 31, 2013 November 30, 2016 * 10% $0.010 (3) 261,595 261,595 August 31, 2014 November 30, 2016 * 10% $0.002 (3) 355,652 355,652 November 30, 2014 November 30, 2016 * 10% $0.002 (3) 103,950 103,950 February 28, 2015 February 28, 2017 * 10% $0.001 (3) 63,357 63,357 May 31, 2015 August 31, 2017* 10% $1.000 (3) 65,383 65,383 August 31, 2015 August 31, 2017* 10% $0.300 (3) 91,629 91,629 November 30, 2015 November 30, 2018* 10% $0.300 (3) 269,791 269,791 February 29, 2016 February 28, 2019* 10% 60% discount (2) 95,245 95,245 May 31, 2016 May 31, 2019* 10% $0.003 (3) 35,100 35,100 July 18, 2016 July 18, 2017* 10% $0.003 (3) 3,500 3,500 December 31, 2016 December 31, 2020 8% 35% discount (2) 65,000 65,000 January 15, 2017 January 15, 2021 8% 35% discount (2) 50,000 50,000 January 15, 2017 January 15, 2021 8% 35% discount (2) 100,000 100,000 January 16, 2017 January 16, 2021 8% 35% discount (2) 150,000 150,000 March 8, 2017 March 8, 2020 10% 40% discount (2) 100,000 100,000 March 9, 2017 March 9, 2021 8% 35% discount (2) 50,000 50,000 April 19, 2017 April 19, 2018* 15% 50% discount (2) — 96,250 April 26, 2017 April 26, 2018* 0% $0.001 68 68 May 1, 2017 May 1, 2021 8% 35% discount (2) 50,000 50,000 May 4, 2017 May 4, 2018* 8% 40% discount (2) 35,585 131,450 May 15, 2017 May 15, 2018* 0% $0.001 1,280 1,280 May 17, 2017 May 17, 2020 10% 40% discount (1) 85,000 85,000 June 7, 2017 June 7, 2018* 8% 40% discount (2) 156,764 180,964 June 16, 2017 June 16, 2018* 0% $0.001 750 750 July 6, 2017 July 6, 2018* 8% 40% discount (2) 200,000 200,000 August 8, 2017 August 8, 2018* 8% 40% discount (2) 125,000 125,000 August 29, 2017 August 29, 2018* 15% 50% discount (2) 147,500 147,500 October 4, 2017 May 4, 2018* 8% 40% discount (2) 150,000 150,000 October 16, 2017 October 16, 2018* 15% 50% discount (2) 175,093 204,067 November 22, 2017 November 22, 2018* 15% 50% discount (2) 500,250 500,250 December 28, 2017 December 28, 2017* 10% 40% discount (2) 28,150 28,150 December 29, 2017 December 29, 2018* 15% 50% discount (2) 330,000 330,000 January 9, 2018 January 9, 2019* 8% 40% discount (2)(1) 79,508 79,508 January 30, 2018 January 30, 2019* 15% 50% discount (2)(1) 300,000 300,000 February 21, 2018 February 21, 2019* 15% 50% discount (2)(1) 300,000 300,000 March 14, 2018 March 14, 2019* 10% 40% discount (2) 50,000 50,000 June 7, 2017 June 9, 2019* 8% 40% discount (2) 200,000 200,000 April 9, 2018 April 9, 2019* 15% 50% discount (2) 55,000 55,000 March 21, 2017 March 21, 2018* 8% 40% discount (2) 40,000 40,000 April 20, 2018 April 20, 2019* 8% 40% discount (2) 97,659 65,106 May 2, 2018 December 2, 2018* 10% 40% discount (2) 70,682 70,682 May 4, 2018 May 4, 2019* 12% 50% discount (2) 123,750 123,750 May 14, 2018 December 14, 2018* 10% 50% discount (2) 33,542 33,542 May 23, 2018 May 23, 2019* 10% 50% discount (2) 110,000 110,000 June 6, 2018 June 6, 2019* 15% 50% discount (2) 282,949 282,949 June 19, 2018 March 19, 2019* 15% 50% discount (2) 87,274 87,274 July 6, 2017 June 9, 2019* 8% 40% discount (2) 200,000 200,000 August 1, 2018 August 1, 2019* 15% 50% discount (2) 32,500 32,500 August 23, 2018 August 23, 2019* 8% 45% discount (2) 70,123 77,435 September 13, 2018 June 30, 2019* 12% 45% discount (2) 9,200 79,500 September 17, 2018 March 17, 2019* 10% 50% discount (2) 4,945 4,945 September 20, 2018 September 20, 2019 15% 50% discount (2) 34,950 39,350 September 24, 2018 June 24, 2019* 8% 40% discount (2) 44,000 44,000 August 8, 2017 June 9, 2019* 8% 40% discount (2) 125,000 125,000 November 8, 2018 August 15, 2019* 12% 45% discount (2) 79,500 79,500 November 26, 2018 May 26, 2019* 10% 50% discount (2) 44,799 44,798 6,440,114 6,767,461 Less: current portion of convertible notes payable (5,875,114) (6,202,461) Less: discount on noncurrent convertible notes payable (213,510) (302,105) Noncurrent convertible notes payable, net of discount $351,490 $262,895 Current portion of convertible notes payable $5,875,114 $6,202,461 Less: discount on current portion of convertible notes payable (60,960) (718,015) Current portion of convertible notes payable, net of discount $5,814,154 $5,484,446 * The indicated notes were in default as of August 31, 2019. Default interest rate 24% (1) The note is convertible beginning six months after the date of issuance. (2) The notes are convertible at a discount (as indicated) to the average market price and are accounted for and evaluated under ASC 480 as discussed in Note 3. (3) The conversion price is not subject to adjustment from forward or reverse stock splits. During the three months ended August 31, 2019 and 2018, the Company incurred original issue discounts of $0 and $13,960, respectively, and derivative discounts of $0 and $123,401, respectively, related to new convertible notes payable. These amounts are included in discounts on convertible notes payable and are being amortized to interest expense over the life of the convertible notes payable. During the three months ended August 31, 2019 and 2018, the Company recognized interest expense related to the amortization of debt discount of $161,870 and $1,218,459, respectively. The Company recorded penalty interest of $35,265 during the three months ended August 31, 2018. During the six months ended August 31, 2019 and 2018, the Company incurred original issue discounts of $0 and $62,853, respectively, and derivative discounts of $0 and $924,009, respectively, related to new convertible notes payable. These amounts are included in discounts on convertible notes payable and are being amortized to interest expense over the life of the convertible notes payable. During the six months ended August 31, 2019 and 2018, the Company recognized interest expense related to the amortization of debt discount of $660,100 and $2,352,222, respectively. The Company recorded penalty interest of $32,553 and $221,055 during the six months ended August 31, 2019 and August 31, 2018, respectively. All the notes above are unsecured. As of August 31, 2019, the Company had total accrued interest payable of $1,760,352, of which $1,651,214 is classified as current and $109,138 is classified as noncurrent. The Company determined that the embedded conversion features in the convertibles notes described below should be accounted for as derivative liabilities as a result of their variable conversion rates. During the six months ended August 31, 2019, the Company also had the following convertible note activity: ● The Company wrote off a note payable for $32,600 and related interest of $97,139. The note has matured in February 2013, the company cannot contact the lender and the note is legally prescribed. A gain on settlement of debt of $129,739 was recorded.. ● The company recorded a $32,553 penalty as increase on the 4/20/2018 note, with a corresponding charge to interest. ● During the six months ended August 31, 2019, holders of certain convertible notes payable elected to convert a total of $327,302 of principal and $66,895 accrued interest, and $500 of fees into 1,164,044,625 shares of common stock. No gain or loss was recognized on conversions as they occurred within the terms of the agreement that provided for conversion. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Aug. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS For the six months ended August 31, 2019 and 2018, the Company received net advances of $159,526 and $135,908, respectively, from its loan payable-related party. At August 31, 2019, the loan payable-related party was $1,153,904 and $782,844 at February 28, 2019. At August 31, 2019, included in the balance due to the related party is $526,633 of deferred salary and interest, $331,602 of which bears interest at 12%. At February 28, 2019, included in the balance due to the related party is $352,392 of deferred salary and interest, $210,000 of which bears interest at 12%. The accrued interest included at August 31, 2019 and February 28, 2019 was $34,917 and $13,650, respectively. During the three and six months ended August 31, 2019 the Company paid $54,222 and $(42,852), respectively in consulting fees for research and development to a company owned by a principal shareholder. The credit received in the quarter ended May 31, 2019 were a result of billing corrections of ($106,444) and after adjusting for this, would bring total charges in the six months ended August 31, 2019 to $63,592. During the three and six months ended August 31, 2018, the Company paid $60,768 and $196,108 in consulting fees for research and development to a company owned by a principal shareholder. |
OTHER DEBT - VEHICLE LOANS
OTHER DEBT - VEHICLE LOANS | 6 Months Ended |
Aug. 31, 2019 | |
Other Debt - Vehicle Loan | |
OTHER DEBT - VEHICLE LOANS | 13. OTHER DEBT – VEHICLE LOAN In December 2016, RAD entered into a vehicle loan for $47,704 secured by the vehicle. The loan is repayable over 5 years maturing November 9, 2021, and repayable $1,019 per month including interest and principal. In November 2017, RAD entered into another vehicle loan secured by the vehicle for $47,661. The loan is repayable over 5 years, maturing October 24, 2022 and repayable at $923 per month including interest and principal. The principal repayments were $0 and $8,984 for the six months ended August 31, 2019 and 2018, respectively. Regarding the second vehicle loan, the vehicle was returned at the end of fiscal 2019 and the car was subsequently sold by the lender for proceeds of $21,907 which went to reduce the outstanding balance of the loan. A loss of $3,257 was recorded as well. A balance of $21,578 remains on this vehicle loan at August 31, 2019. The remaining total balances of the amounts owed on the vehicle loans were $57,286 and $57,287 as of August 31, 2019 and February 28, 2019, respectively, of which all is current. The Company ceased making payments of principal and interest during the year and the company will return the remaining vehicle to the financing company for disposal in the upcoming months. The company has re-allocated the remaining vehicle from fixed assets to vehicles for disposal at the remaining net book value of $13,251 at August 31, 2019 and February 28, 2019. |
LOANS PAYABLE
LOANS PAYABLE | 6 Months Ended |
Aug. 31, 2019 | |
Loans Payable [Abstract] | |
LOANS PAYABLE | 14. LOANS PAYABLE Loans payable consisted of the following at August 31, 2019: Annual Interest Date Maturity Description Principal Rate June 11, 2018 June 11, 2019 Promissory note (3) 48,000 25% * August 10, 2018 September 1, 2018 Promissory note 10,000 25% * August 16, 2018 August 16, 2019 Promissory note (1) 22,624 25% * August 16, 2018 October 1, 2018 Promissory note 10,000 25% * August 23, 2018 October 20, 2018 Promissory note 5,506 20% * October 10, 2018 December 10, 2018 Promissory note (8) 4,956 20% * October 11, 2018 October 11, 2019 Promissory note (10) 23,000 20% August 5, 2019 March 11, 2020 Factoring Agreement (4) 70,725 (4) July 22, 2019 November 15, 2019 Factoring Agreement (9) 27,813 (9) July 9, 2019 January 5, 2020 Factoring Agreement (5) 28,843 (5) January 31, 2019 June 30, 2019 Promissory note (2) 78,432 15% * January 24, 2019 January 24,2021 Loan (11) 140,535 11% May 9, 2019 June 30, 2019 Promissory note (6) 7,850 15% * May 31, 2019 June 30, 2019 Promissory note (7) 86,567 15% * June 26, 2019 June 26, 2020 Promissory note (12) 79,104 15% 643,955 Less current portion of loans payable 140,535 Non-current portion of loans payable 503,420 * Note is in default. No notice has been given by the note holder. (1) Repayable in 12 monthly instalments of $2,376 commencing September 16, 2018 and secured by revenue earning devices having a net book value of at least $25,000.Only one $2,376 repayment has been made by the Company and no notices have been received. Accrued interest of $795 has been recorded this quarter. (2) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $25,882. (3) Repayable in 12 monthly instalments of $4,562 commencing August 11, 2018 and secured by revenue earning devices having a net book value of at least $48,000. No repayments have been made by the Company and no notices have been received. (4) Total loan $79,750, repayable $475 per business day including fees and interest of $25,170. Original cash proceeds of $31,353 and $23,227 carried from previous loan less repayment of $9,025. Previous loan ending December 19, 2019 of $31,080 including additional interest and fees of $11,111 was repaid this quarter. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty bv the controlling shareholder of the Company. (5) Total loan of $41.700, repayable $348 per business day including fees and interest of $11,700. Original proceeds of $30,000 less repayment of $12,058.The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guarantee by the controlling shareholder of the Company. (6) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $2,590. (7) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $28,567. (8) Repayable in 10 monthly instalments of $848 commencing January 10, 2019 and secured by revenue earning devices having a net book value of at least $186,000. $2,544 repaid this quarter. (9) Total loan $52,150, repayable $869 per business day including fees and interest of $17,150. Original cash proceeds of $35,000 less repayment of 24,337. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty bv the controlling shareholder of the Company. (10) $20,000 repaid in quarter ended February 28, 2019. (11) $185,000 Canadian loan. Interest payable every calendar quarter commencing June30, 2019, if unpaid accrued interest to be paid at maturity. An additional interest amount calculated as 4% of RAD revenues from SCOT rentals for the fiscal years 2020 and 2021 shall be payable March 31, 2020 and March 31, 2021, respectively. Secured by a general security charging all of RAD’s present and after-acquired property in favour of the lender on a first priority basis subject to the following: the lender’s security in this respect shall be post-poneable to security in favour of institutional financing obtained by RAD. (12) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $26,104. During the six months ended August 31, 2019 the Company received proceeds of $263,429 and repaid $100,038 of loan payable. During the three months ended August 31, 2019 the Company received proceeds of $159,573 and repaid $69,498 of loan payable. |
DERIVATIVE LIABILITES
DERIVATIVE LIABILITES | 6 Months Ended |
Aug. 31, 2019 | |
Derivative Liability [Abstract] | |
DERIVATIVE LIABILITES | 15. DERIVATIVE LIABILITES As of August 31, 2019, the Company revalued the fair value of all of the Company’s derivative liabilities associated with the conversion features on the convertible notes payable and determined that it had a total derivative liability of $3,310,254. The Company estimated the fair value of the derivative liabilities using the multinomial lattice model using the following key assumptions during the six months ended August 31, 2019: Strike price $1.00 - $0.001 Fair value of Company common stock $0.0003 - $0.0015 Dividend yield 0.00% Expected volatility 293.32% - 183.6% Risk free interest rate 1.20% - 2.58% Expected term (years) 0.05 - 3.12 During the three and six months ended August 31, 2019, the Company released $228,634 and $383,318, respectively, of the Company’s derivative liability to equity due to the conversions of principal and interest on the associated notes. During the three and six months ended August 31, 2018, the Company released $75,092 and $757,222, respectively, of the Company’s derivative liability to equity due to the conversions of principal and interest on the associated notes. The changes in the derivative liabilities (Level 3 financial instruments) measured at fair value on a recurring basis for the six months ended August 31, 2019 were as follows: Balance as of February 28, 2019 $ 6,170,139 Release of derivative liability on conversion of convertible notes payable (383,318 ) Change in fair value of derivative liabilities (2,476,567 ) Balance as of August 31, 2019 $ 3,310,254 |
SHAREHOLDERS' EQUITY (DEFICIT)
SHAREHOLDERS' EQUITY (DEFICIT) | 6 Months Ended |
Aug. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY (DEFICIT) | 16. STOCKHOLDERS’ EQUITY (DEFICIT) Summary of Common Stock Activity On April 23, 2019 the Board of Directors approved an increase in authorized share capital to 5,000,000,000 shares of common stock and to change the par value of the common stock to $0.00001 per share. This became effective on June 20, 2019. The share capital has been retrospectively adjusted accordingly to reflect this change in par value. On April 23, 2019 the Board of Directors were granted approval to effectuate at its sole discretion a Reverse Stock Split of the Company’s Common Stock, by a ratio of no less than 2:1 and not more than 2000:1, with such ratio to be determined at the sole discretion of the Board and with the process to effect such Reverse Split to be commenced at any time, if at all, within a period of 6 months after May 31, 2019. As of this filing no Reverse splits have been authorized by the Board of Directors. During the six months ended August 31, 2019, the Company issued 1,164,044,625 shares of its common stock for the conversion of debt and related interest and fees totaling $394.697 including $327,302 of principal and $66,895 accrued interest, and $500 of fees in connection with debt converted during the period, as well as the release of the related derivative liability (see Note 15). Summary of Stock Option Activity Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at March 1, 2019 20,436,309 $ 0.01 2.56 Issued — — — Exercised — — — Forfeited and cancelled — — — Outstanding at August 31, 2019 20,436,309 $ 0.01 2.31 For the six months ended August 31, 2019 and August 31, 2018, the Company recorded a total of $0 and $9,571, respectively, to stock-based compensation for options and warrants with a corresponding adjustment to additional paid-in capital. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Litigation Occasionally, the Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision for a liability when it believes that is both probable that a liability has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s condensed consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. In April 2019 the principals of WeSecure (see Note 8) filed lawsuit in California Superior Court seeking damages for non-payment balance of sale of WeSecure assets totaling $25,000, unpaid consulting fees payable to the two principals through to September 2019 totaling $125,924, and labor code violations of $48,434 all totaling $199,358 plus attorney’s fees and damages. The parties finally settled all claims with a full release for $180,000 in June 2019 payable in 14 monthly instalments as follows: 2019 2020 Total 6/30/19 $5,000 1/26/2020 $15,000 7/30/19 $5,000 2/25/2020 $15,000 8/29/19 $7,500 3/26/2020 $15,000 9/28/19 $7,500 4/25/2020 $15,000 10/28/19 $10,000 5/25/2020 $20,000 11/27/19 $10,000 6/25/2020 $20,000 12/27/19 $15,000 7/24/2020 $20,000 Total $60,000 $120,000 $180,000 The company has fully accrued the above $180,000. As of October 14, 2019 the Company has paid $17,500. As of filing the September through November instalments are in arrears. The related legal costs are expensed as incurred. The Company currently maintains an office at 1218-1222 Magnolia Ave, Suite 106 Bldg. H, Corona, California 92881 pursuant to a month to month lease commencing March 1, 2019. The Company’s annual rent is $12,000 per year. RAD maintains a mailing address for 31103 Ranch Viejo Road, Suite d2114 for a nominal fee of $264/yr. RAD previously had its offices at 23121 La Cadena Suite B/C Laguna Hills, California 92675, pursuant to a five-year term ending March 31, 2022. Its annual rental cost for this facility was approximately $65,000, plus a proportionate share of operating expenses of approximately $35,000 annually. The Company also leased premises in northern California. The lease was for three years, beginning in August 2017, and would expire in August 2020. The Company shared these premises with a former supplier who was the co-lessee. Through agreement with the supplier, the Company was to pay 75% of the lease costs and the supplier was to pay 25%. The Company’s share of rent costs was approximately $43,000 annually. On February 1, 2018 the Company entered into an additional lease for premises for a robotic control center. The lease ran from February 1, 2018 to January 31, 2021 for $6,600 annually. At the end of fiscal 2019 the Company terminated all three preceding leases through verbal arrangement with the landlord. Regarding the lease at La Cadena, the Company agreed to a settlement amount to cover unpaid rent, commissions and leasehold improvements paid by the landlord totaling $62,039 to be paid by the Company in 4 monthly instalments of $5,000 commencing August 1, 2019 with the remaining balance to be paid in $10,000 monthly instalments thereafter. The Company recorded the $62,039 as a loss on settlement. No further liability was recorded for both the northern California and robotic control center leases. The Company’s leases are accounted for as operating leases. Rent expense is recorded over the lease terms on a straight-line basis. Rent expense was $1,000 and $4,000 for the three and six months ended August 31, 2019, respectively and $30,157 and $59,762 for the three and six months ended August 31, 2018, respectively. At August 31, 2019 there were no Company’s future minimum payments. Convertible Notes Payable Certain convertible notes payable carry conditions whereby in the event of ant default of any condition the Company would be subject to certain financial penalties. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | 18. EARNINGS (LOSS) PER SHARE The net income (loss) per common share amounts were determined as follows: For the Three Months Ended For the Six Months Ended August 31, August 31, 2019 2018 2019 2018 Numerator: Net income (loss) available to common shareholders (375,234 ) (4,674,309 ) 315,372 10,203,602 Effect of common stock equivalents Add: interest expense on convertible debt 150,848 — 281,204 410,184 Add (less) loss (gain) on change of derivative liabilities (712,466 ) — (2,476,567 ) (15,992,640 ) Net income (loss) adjusted for common stock equivalents (936,852 ) (4,674,309 ) (1,879,991 ) (5,378,854 ) Denominator: Weighted average shares – basic 543,026,486 1,878,320 305,487,172 1,594,296 Net income (loss) per share – basic $ (0.00 ) $ (2.49 ) $ (0.01 ) $ 6.40 Dilutive effect of common stock equivalents: Warrants — — — 16,436 Convertible Debt — — 9,406,564,462 553,933,579 Preferred shares — — 4,706,857,132 9,377,102 Denominator: Weighted average shares – diluted 543,026,486 1,878,320 14,418,908,766 564,921,413 Net income (loss) per share – diluted $ (0.00 ) $ (2.49 ) $ (0.00 ) $ (0.01 ) The anti-dilutive shares of common stock equivalents for the three and six months ended August 31, 2019 and 2018 were as follows: For the Three Months Ended August 31, For the Six Months Ended August 31, 2019 2018 2019 2018 Stock options and warrants — 2,294 — — Convertible debt 9,406,564,462 542,730,108 — — Preferred stock 4,706,857,132 9,377,102 — — Total 14,113,421,594 552,109,504 — — |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Aug. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS Subsequent to August 31, 2019: - convertible note holders converted $234,904 principal, and $110,965 interest into 2,300,380,444 shares of the Company’s common stock. - the Company entered into a factoring loan on September 17, 2019 with a 10 week maturity totaling $24,000 including cash proceeds of $20,000 and $4,000 in interest and fees. Repayable $2,480 per week with $9,920 repaid to date. - the Company entered into a factoring loan on September 27, 2019 with a 5 month maturity totaling $59,600 including cash proceeds of $40,000 and $19,600 in interest and fees Repayable $590 per business day with $5,905 repaid to date. - On September 5, 2019, the Company received $25,000 of proceeds from an investor for a promissory note with a principal amount of $26,250, maturing on August 29, 2020. The promissory note is convertible into common shares of the Company at a conversion price equal to 60% of the lowest trading price of the Company’s common stock for the last 20 trading days prior to conversion, and has a 8% per annum interest rate. - the Company repaid $66,127 in various other loans. - the Company received $194,250 from investors in advances on the deferred variable payment obligation. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and in conformity with the condensing instructions on Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto in the Company’s latest Annual Report filed with the SEC on Form 10-K as amended and filed on November 4, 2019. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Robotic Assistance Devices, Inc., On the Move Experience, LLC and OMV Transports, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of such statements. The results of operations for the six months ended August 31, 2019 are not necessarily indicative of the results that may be expected for the entire year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Estimates are used in the fair value calculation of the derivative liability, in determination of cash flows and fair value determinations in impairment testing. |
Cash | Cash The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market instruments. The Company places its cash and cash equivalents with high-quality, U.S. financial institutions and, to date has not experienced losses on any of its balances. |
Accounts Receivable | Accounts Receivable Accounts receivable are comprised of balances due from customers, net of estimated allowances for uncollectible accounts. In determining collectability, historical trends are evaluated, and specific customer issues are reviewed on a periodic basis to arrive at appropriate allowances. There were no allowances provided for the six months ended August 31, 2019 and the year ended February 28, 2019. |
Device Parts Inventory | Device Parts Inventory Device parts inventory is stated at the lower of cost or net realizable value using the weighted average cost method. The Company records a valuation reserve for obsolete and slow-moving inventory, relying principally on specific identification of such inventory. The Company uses these device parts in the assembly of revenue earning devices (and demo devices) as well as research and development. Depending on use, the Company will transfer the parts to the corresponding asset or expense if used in research and development. A charge to income is taken when factors that would result in a need for an increase in the valuation, such as excess or obsolete inventory, are noted. |
Revenue Earning Devices | Revenue Earning Devices Revenue earning devices are stated at cost. Depreciation is provided on a straight-line basis over the estimated useful life of 48 months. The Company continually evaluates revenue earning devices to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the devices should be evaluated for possible impairment. The Company uses a combination of the undiscounted cash flows and market approaches in assessing whether an asset has been impaired. The Company measures impairment losses based upon the amount by which the carrying amount of the asset exceeds the fair value. |
Fixed Assets | Fixed Assets Fixed assets are stated at cost. Depreciation is provided on the straight-line method based on the estimated useful lives of the respective assets which range from three to five years. Major repairs or improvements are capitalized. Minor replacements and maintenance and repairs which do not improve or extend asset lives are expensed currently. Demo Devices 4 years Vehicles 3 years Computer equipment 3 years Office equipment 4 years The Company periodically evaluates the fair value of fixed assets whenever events or changes in circumstances indicate that its carrying amounts may not be recoverable. Upon retirement or other disposition of fixed assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is recognized in income. |
Research and Development | Research and Development Research and development costs are expensed in the period they are incurred in accordance with ASC 730, Research and Development |
Contingencies | Contingencies Occasionally, the Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. |
Sales of Future Revenues | Sales of Future Revenues The Company has entered into transactions, as more fully described in footnote 10, in which it has received funding from investors in exchange for which it will make payments to those investors based on the level of sales of certain revenue categories, generally based on a percentage of sales for those certain revenues. The Company determines whether these agreements constitute sales of future revenues or are in substance debt based on the facts and circumstances of each agreement, with the following primary criteria determinative of whether the agreement constitutes a sale of future revenues or debt: ● Does the agreement purport, in substance, to be a sale ● Does the Company have continuing involvement in the generation of cash flows due the investor ● Is the transaction cancellable by either party through payment of a lump sum or other transfer of assets ● Is the investors rate of return is implicitly limited by the terms of the agreement ● Does the Company’s revenue for a reporting period underlying the agreement have only a minimal impact on the investor’s rate of return ● Does the investor have recourse relating to payments due In the event a transaction is determined to be a sale of future revenues, it is recorded as deferred revenue and amortized using the sum-of-the-revenue method. In the event a transaction is determined to be debt, it is recorded as debt and amortized using the effective interest method. As of the date of these financial statements, the Company has determined that all such agreements are debt. |
Revenue Recognition | Revenue Recognition ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Revenue Recognition (Topic 605) |
Income Taxes | Income Taxes On July 25, 2017, Robotic Assistance Devices LLC converted to a C Corporation, Robotic Assistance Devices, Inc., through the issuance of 10,000 common shares to its sole shareholder. Prior to the conversion on July 25, 2017, income taxes are not provided in the financial statements as presented as RAD was an LLC and the income or loss flowed through to the shareholder for the two months ended February 28, 2017. Thereafter, income taxes are accounted for under the asset and liability method from that date forward. Deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities, and net operating loss and other tax credit carry-forwards. These items are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. |
Leases | Leases Lease agreements are evaluated to determine if they are capital leases meeting any of the following criteria at inception: (a) transfer of ownership; (b) bargain purchase option; (c) the lease term is equal to 75 percent or more of the estimated economic life of the leased property; or (d) the present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. If at its inception, a lease meets any of the four lease criteria above, the lease is classified by the Company as a capital lease; and if none of the four criteria are met, the lease is classified by the Company as an operating lease. Operating lease payments are recognized as an expense in the income statement on a straight-line basis over the lease term, whereby an equal amount of rent expense is attributed to each period during the term of the lease, regardless of when actual payments are made. This generally results in rent expense in excess of cash payments during the early years of a lease and rent expense less than cash payments in the later years. The difference between rent expense recognized and actual rental payments is recorded as deferred rent and included in liabilities. |
Distinguishing Liabilities from Equity | Distinguishing Liabilities from Equity The Company relies on the guidance provided by ASC Topic 480, Distinguishing Liabilities from Equity Once the Company determines that a financial instrument should not be classified as a liability, the Company determines whether the financial instrument should be presented between the liability section and the equity section of the balance sheet (“temporary equity”). The Company will determine temporary equity classification if the redemption of the financial instrument is outside the control of the Company (i.e. at the option of the holder). Otherwise, the Company accounts for the financial instrument as permanent equity. Initial Measurement The Company records its financial instruments classified as liability, temporary equity or permanent equity at issuance at the fair value, or cash received. Subsequent Measurement – Financial Instruments Classified as Liabilities The Company records the fair value of its financial instruments classified as liabilities at each subsequent measurement date. The changes in fair value of its financial instruments classified as liabilities are recorded as other income (expenses). |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurements and Disclosures ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC Topic 820 are described as follows: ● Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. ● Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 – Inputs that are unobservable for the asset or liability. Measured on a Recurring Basis The following table presents information about our liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell: Amount at Fair Value Measurement Using Fair Value Level 1 Level 2 Level 3 August 31, 2019 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 3,310,254 $ — $ — $ 3,310,254 February 28, 2019 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 6,170,139 $ — $ — $ 6,170,139 See Note 15 for specific inputs used and a description of the model used in determining fair value. The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, prepaid expenses and advances, accounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used to determine the number of shares assumed to be purchased from the exercise of stock options and/or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive. Basic loss per common share is computed based on the weighted average number of shares outstanding during the period. Diluted loss per share is computed in a manner similar to the basic loss per share, except the weighted-average number of shares outstanding is increased to include all common shares, including those with the potential to be issued by virtue of convertible debt and other such convertible instruments. Diluted loss per share contemplates a complete conversion to common shares of all convertible instruments only if they are dilutive in nature with regards to earnings per share. See additional disclosure in Note 18. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements See discussion of the adoption of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” In May 2017, the FASB issued ASU 2017-09, Modification Accounting for Share-Based Payment Arrangements On March 1, 2019 the Company adopted ASU No. 2016-02, Leases (Topic 842) |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In September 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of fixed assets lives | Major repairs or improvements are capitalized. Minor replacements and maintenance and repairs which do not improve or extend asset lives are expensed currently. Demo Devices 4 years Vehicles 3 years Computer equipment 3 years Office equipment 4 years |
Schedule of measured on a recurring basis | The following table presents information about our liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell: Amount at Fair Value Measurement Using Fair Value Level 1 Level 2 Level 3 August 31, 2019 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 3,310,254 $ — $ — $ 3,310,254 February 28, 2019 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 6,170,139 $ — $ — $ 6,170,139 |
CORRECTION OF AN ERROR IN PRE_2
CORRECTION OF AN ERROR IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Correction Of Error In Previously Issued Financial Statements | |
Schedule of financial statements | The impact on the financial statements for the three and six months ended August 31, 2018 are as follows: CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS Originally stated Restated Three Months Adjustment Three Months Revenues $ 10,175 $ — $ 10,175 Cost of Goods Sold 31,250 — 31,250 Gross Profit (21,075 ) — (21,075 ) Operating expenses: Research and development 64,501 — 64,501 General and administrative 898,290 (57,538 ) 840,752 Depreciation and amortization 29,560 — 29,560 Loss on impairment of fixed assets 4,739 — 4,739 Total operating expenses 997,090 (57,538 ) 939,552 Loss from operations (1,018,165 ) 57,538 (960,627 ) Total other income (expense), net (3,713,682 ) — (3,713,682 ) Net income (loss) $ (4,731,847 ) $ 57,538 $ (4,674,309 ) Net income ( loss) per share - basic $ (2.52 ) — $ (2.49 ) Net income (loss) per share - diluted $ (2.52 ) — $ (2.49 ) Originally stated Restated Six Months Ended Adjustment Six Months Ended Revenues $ 26,841 $ — $ 26,841 Cost of Goods Sold 35,509 — 35,509 Gross Profit (8,668 ) — (8,668 ) Operating expenses: Research and development 233,131 — 233,131 General and administrative 2,282,217 (530,498 ) 1,751,719 Depreciation and amortization 51,413 51,413 Loss on impairment of fixed assets 4,739 — 4,739 Total operating expenses 2,571,500 (530,498 ) 2,041,002 Loss from operations (2,580,168 ) 530,498 (2,049,670 ) Total other income (expense), net 12,253,272 — 12,253,272 Net income (loss) $ 9,673,104 $ 530,498 $ 10,203,602 Net income ( loss) per share - basic $ 6.07 — $ 6.40 Net income (loss) per share - diluted $ (0.01 ) — $ (0.01 ) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 9,673,104 $ 530,498 $ 10,203,602 Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 51,413 — 51,413 Provision for note receivable 40,000 — 40,000 Loss on impairment of fixed assets 4,739 — 4,739 Stock based compensation 540,069 (530,498 ) 9,571 Change in fair value of derivative liabilities (15,992,640 ) — (15,992,640 ) Interest expense related to penalties from debt defaults 221,055 — 221,055 Interest expense related to derivative liability in excess of face value of debt 684,781 — 684,781 Amortization of debt discounts 2,352,222 — 2,352,222 Loss on settlement of debt 54,610 — 54,610 Changes in operating assets and liabilities: — Accounts receivable 9,627 — 9,627 Prepaid expenses 12,826 — 12,826 Device parts inventory 50,529 — 50,529 Accounts payable and accrued expenses 784,172 — 784,172 Accrued interest payable 403,799 — 403,799 Net cash used in operating activities (1,109,694 ) — (1,109,694 ) Net cash used in investing activities (188,765 ) — (188,765 ) Net cash provided by financing activities 1,290,142 — 1,290,142 Net change in cash (8,317 ) — (8,317 ) Cash, beginning of period 24,773 — 24,773 Cash, end of period $ 16,456 $ — $ 16,456 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue from contracts with customers | The following table presents revenues from contracts with customers disaggregated by product/service: Three Months Ended Six Months Ended Device rental activities $ 75,024 $ 115,329 Direct sales of goods and services — — $ 75,024 $ 115,329 Three Months Ended Six Months Ended Device rental activities $ 10,175 $ 26,431 Direct sales of goods and services — 410 $ 10,175 $ 26,841 |
PREPAID EXPENSES AND DEPOSITS (
PREPAID EXPENSES AND DEPOSITS (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Prepaid Expenses And Deposits | |
Schedule of prepaid expenses and deposits | Prepaid expenses and deposits on device parts expected to be received within one year were comprised of the following: August 31, 2019 February 28, 2019 Prepaid insurance $ — $ 18,778 $ — $ 18,778 |
REVENUE EARNING DEVICES (Tables
REVENUE EARNING DEVICES (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Revenue Earning Devices | |
Schedule of revenue earning devices | Revenue earning devices consisted of the following: August 31, 2019 February 28, 2019 Revenue earning devices $ 351,318 $ 229,958 Less: Accumulated depreciation (78,340 ) (42,784 ) $ 272,978 $ 187,174 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | Fixed assets consisted of the following: August 31, 2019 February 28, 2019 Automobile $ 40,953 $ 40,953 Computer equipment 20,262 20,262 Office equipment 5,680 5,680 Leasehold improvements — — 66,895 66,895 Less: Accumulated depreciation (40,614 ) (29,701 ) $ 26,281 $ 37,194 |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes payable | Convertible notes payable consisted of the following: Balance Balance Interest Conversion August 31, February 28, Issued Maturity Rate Rate per Share 2019 2019 February 28, 2011 February 26, 2013 * 7% $0.015 $— $32,600 January 31, 2013 February 28, 2017 * 10% $0.010 (3) 119,091 119,091 May 31, 2013 November 30, 2016 * 10% $0.010 (3) 261,595 261,595 August 31, 2014 November 30, 2016 * 10% $0.002 (3) 355,652 355,652 November 30, 2014 November 30, 2016 * 10% $0.002 (3) 103,950 103,950 February 28, 2015 February 28, 2017 * 10% $0.001 (3) 63,357 63,357 May 31, 2015 August 31, 2017* 10% $1.000 (3) 65,383 65,383 August 31, 2015 August 31, 2017* 10% $0.300 (3) 91,629 91,629 November 30, 2015 November 30, 2018* 10% $0.300 (3) 269,791 269,791 February 29, 2016 February 28, 2019* 10% 60% discount (2) 95,245 95,245 May 31, 2016 May 31, 2019* 10% $0.003 (3) 35,100 35,100 July 18, 2016 July 18, 2017* 10% $0.003 (3) 3,500 3,500 December 31, 2016 December 31, 2020 8% 35% discount (2) 65,000 65,000 January 15, 2017 January 15, 2021 8% 35% discount (2) 50,000 50,000 January 15, 2017 January 15, 2021 8% 35% discount (2) 100,000 100,000 January 16, 2017 January 16, 2021 8% 35% discount (2) 150,000 150,000 March 8, 2017 March 8, 2020 10% 40% discount (2) 100,000 100,000 March 9, 2017 March 9, 2021 8% 35% discount (2) 50,000 50,000 April 19, 2017 April 19, 2018* 15% 50% discount (2) — 96,250 April 26, 2017 April 26, 2018* 0% $0.001 68 68 May 1, 2017 May 1, 2021 8% 35% discount (2) 50,000 50,000 May 4, 2017 May 4, 2018* 8% 40% discount (2) 35,585 131,450 May 15, 2017 May 15, 2018* 0% $0.001 1,280 1,280 May 17, 2017 May 17, 2020 10% 40% discount (1) 85,000 85,000 June 7, 2017 June 7, 2018* 8% 40% discount (2) 156,764 180,964 June 16, 2017 June 16, 2018* 0% $0.001 750 750 July 6, 2017 July 6, 2018* 8% 40% discount (2) 200,000 200,000 August 8, 2017 August 8, 2018* 8% 40% discount (2) 125,000 125,000 August 29, 2017 August 29, 2018* 15% 50% discount (2) 147,500 147,500 October 4, 2017 May 4, 2018* 8% 40% discount (2) 150,000 150,000 October 16, 2017 October 16, 2018* 15% 50% discount (2) 175,093 204,067 November 22, 2017 November 22, 2018* 15% 50% discount (2) 500,250 500,250 December 28, 2017 December 28, 2017* 10% 40% discount (2) 28,150 28,150 December 29, 2017 December 29, 2018* 15% 50% discount (2) 330,000 330,000 January 9, 2018 January 9, 2019* 8% 40% discount (2)(1) 79,508 79,508 January 30, 2018 January 30, 2019* 15% 50% discount (2)(1) 300,000 300,000 February 21, 2018 February 21, 2019* 15% 50% discount (2)(1) 300,000 300,000 March 14, 2018 March 14, 2019* 10% 40% discount (2) 50,000 50,000 June 7, 2017 June 9, 2019* 8% 40% discount (2) 200,000 200,000 April 9, 2018 April 9, 2019* 15% 50% discount (2) 55,000 55,000 March 21, 2017 March 21, 2018* 8% 40% discount (2) 40,000 40,000 April 20, 2018 April 20, 2019* 8% 40% discount (2) 97,659 65,106 May 2, 2018 December 2, 2018* 10% 40% discount (2) 70,682 70,682 May 4, 2018 May 4, 2019* 12% 50% discount (2) 123,750 123,750 May 14, 2018 December 14, 2018* 10% 50% discount (2) 33,542 33,542 May 23, 2018 May 23, 2019* 10% 50% discount (2) 110,000 110,000 June 6, 2018 June 6, 2019* 15% 50% discount (2) 282,949 282,949 June 19, 2018 March 19, 2019* 15% 50% discount (2) 87,274 87,274 July 6, 2017 June 9, 2019* 8% 40% discount (2) 200,000 200,000 August 1, 2018 August 1, 2019* 15% 50% discount (2) 32,500 32,500 August 23, 2018 August 23, 2019* 8% 45% discount (2) 70,123 77,435 September 13, 2018 June 30, 2019* 12% 45% discount (2) 9,200 79,500 September 17, 2018 March 17, 2019* 10% 50% discount (2) 4,945 4,945 September 20, 2018 September 20, 2019 15% 50% discount (2) 34,950 39,350 September 24, 2018 June 24, 2019* 8% 40% discount (2) 44,000 44,000 August 8, 2017 June 9, 2019* 8% 40% discount (2) 125,000 125,000 November 8, 2018 August 15, 2019* 12% 45% discount (2) 79,500 79,500 November 26, 2018 May 26, 2019* 10% 50% discount (2) 44,799 44,798 6,440,114 6,767,461 Less: current portion of convertible notes payable (5,875,114) (6,202,461) Less: discount on noncurrent convertible notes payable (213,510) (302,105) Noncurrent convertible notes payable, net of discount $351,490 $262,895 Current portion of convertible notes payable $5,875,114 $6,202,461 Less: discount on current portion of convertible notes payable (60,960) (718,015) Current portion of convertible notes payable, net of discount $5,814,154 $5,484,446 * The indicated notes were in default as of August 31, 2019. Default interest rate 24% (1) The note is convertible beginning six months after the date of issuance. (2) The notes are convertible at a discount (as indicated) to the average market price and are accounted for and evaluated under ASC 480 as discussed in Note 3. (3) The conversion price is not subject to adjustment from forward or reverse stock splits. |
LOANS PAYABLE (Tables)
LOANS PAYABLE (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Loans Payable [Abstract] | |
Schedule of loans payable | Loans payable consisted of the following at August 31, 2019: Annual Interest Date Maturity Description Principal Rate June 11, 2018 June 11, 2019 Promissory note (3) 48,000 25% * August 10, 2018 September 1, 2018 Promissory note 10,000 25% * August 16, 2018 August 16, 2019 Promissory note (1) 22,624 25% * August 16, 2018 October 1, 2018 Promissory note 10,000 25% * August 23, 2018 October 20, 2018 Promissory note 5,506 20% * October 10, 2018 December 10, 2018 Promissory note (8) 4,956 20% * October 11, 2018 October 11, 2019 Promissory note (10) 23,000 20% August 5, 2019 March 11, 2020 Factoring Agreement (4) 70,725 (4) July 22, 2019 November 15, 2019 Factoring Agreement (9) 27,813 (9) July 9, 2019 January 5, 2020 Factoring Agreement (5) 28,843 (5) January 31, 2019 June 30, 2019 Promissory note (2) 78,432 15% * January 24, 2019 January 24,2021 Loan (11) 140,535 11% May 9, 2019 June 30, 2019 Promissory note (6) 7,850 15% * May 31, 2019 June 30, 2019 Promissory note (7) 86,567 15% * June 26, 2019 June 26, 2020 Promissory note (12) 79,104 15% 643,955 Less current portion of loans payable 140,535 Non-current portion of loans payable 503,420 * Note is in default. No notice has been given by the note holder. (1) Repayable in 12 monthly instalments of $2,376 commencing September 16, 2018 and secured by revenue earning devices having a net book value of at least $25,000.Only one $2,376 repayment has been made by the Company and no notices have been received. Accrued interest of $795 has been recorded this quarter. (2) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $25,882. (3) Repayable in 12 monthly instalments of $4,562 commencing August 11, 2018 and secured by revenue earning devices having a net book value of at least $48,000. No repayments have been made by the Company and no notices have been received. (4) Total loan $79,750, repayable $475 per business day including fees and interest of $25,170. Original cash proceeds of $31,353 and $23,227 carried from previous loan less repayment of $9,025. Previous loan ending December 19, 2019 of $31,080 including additional interest and fees of $11,111 was repaid this quarter. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty bv the controlling shareholder of the Company. (5) Total loan of $41.700, repayable $348 per business day including fees and interest of $11,700. Original proceeds of $30,000 less repayment of $12,058.The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guarantee by the controlling shareholder of the Company. (6) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $2,590. (7) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $28,567. (8) Repayable in 10 monthly instalments of $848 commencing January 10, 2019 and secured by revenue earning devices having a net book value of at least $186,000. $2,544 repaid this quarter. (9) Total loan $52,150, repayable $869 per business day including fees and interest of $17,150. Original cash proceeds of $35,000 less repayment of 24,337. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty bv the controlling shareholder of the Company. (10) $20,000 repaid in quarter ended February 28, 2019. (11) $185,000 Canadian loan. Interest payable every calendar quarter commencing June30, 2019, if unpaid accrued interest to be paid at maturity. An additional interest amount calculated as 4% of RAD revenues from SCOT rentals for the fiscal years 2020 and 2021 shall be payable March 31, 2020 and March 31, 2021, respectively. Secured by a general security charging all of RAD’s present and after-acquired property in favour of the lender on a first priority basis subject to the following: the lender’s security in this respect shall be post-poneable to security in favour of institutional financing obtained by RAD. (12) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $26,104. |
DERIVATIVE LIABILITES (Tables)
DERIVATIVE LIABILITES (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Derivative Liability [Abstract] | |
Schedule of derivative liabilities using the Monte-Carlo | The Company estimated the fair value of the derivative liabilities using the multinomial lattice model using the following key assumptions during the six months ended August 31, 2019: Strike price $1.00 - $0.001 Fair value of Company common stock $0.0003 - $0.0015 Dividend yield 0.00% Expected volatility 293.32% - 183.6% Risk free interest rate 1.20% - 2.58% Expected term (years) 0.05 - 3.12 |
Schedule of level 3 financial instruments | The changes in the derivative liabilities (Level 3 financial instruments) measured at fair value on a recurring basis for the six months ended August 31, 2019 were as follows: Balance as of February 28, 2019 $ 6,170,139 Release of derivative liability on conversion of convertible notes payable (383,318 ) Change in fair value of derivative liabilities (2,476,567 ) Balance as of August 31, 2019 $ 3,310,254 |
SHAREHOLDERS' EQUITY (DEFICIT)
SHAREHOLDERS' EQUITY (DEFICIT) (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule for summary of stock option activity | Summary of Stock Option Activity Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at March 1, 2019 20,436,309 $ 0.01 2.56 Issued — — — Exercised — — — Forfeited and cancelled — — — Outstanding at August 31, 2019 20,436,309 $ 0.01 2.31 |
COMMITMENTS & CONTINGENCIES (Ta
COMMITMENTS & CONTINGENCIES (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of RAD's future minimum payments | The parties finally settled all claims with a full release for $180,000 in June 2019 payable in 14 monthly instalments as follows: 2019 2020 Total 6/30/19 $5,000 1/26/2020 $15,000 7/30/19 $5,000 2/25/2020 $15,000 8/29/19 $7,500 3/26/2020 $15,000 9/28/19 $7,500 4/25/2020 $15,000 10/28/19 $10,000 5/25/2020 $20,000 11/27/19 $10,000 6/25/2020 $20,000 12/27/19 $15,000 7/24/2020 $20,000 Total $60,000 $120,000 $180,000 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings (loss) per share | The net income (loss) per common share amounts were determined as follows: For the Three Months Ended For the Six Months Ended August 31, August 31, 2019 2018 2019 2018 Numerator: Net income (loss) available to common shareholders (375,234 ) (4,674,309 ) 315,372 10,203,602 Effect of common stock equivalents Add: interest expense on convertible debt 150,848 — 281,204 410,184 Add (less) loss (gain) on change of derivative liabilities (712,466 ) — (2,476,567 ) (15,992,640 ) Net income (loss) adjusted for common stock equivalents (936,852 ) (4,674,309 ) (1,879,991 ) (5,378,854 ) Denominator: Weighted average shares – basic 543,026,486 1,878,320 305,487,172 1,594,296 Net income (loss) per share – basic $ (0.00 ) $ (2.49 ) $ (0.01 ) $ 6.40 Dilutive effect of common stock equivalents: Warrants — — — 16,436 Convertible Debt — — 9,406,564,462 553,933,579 Preferred shares — — 4,706,857,132 9,377,102 Denominator: Weighted average shares – diluted 543,026,486 1,878,320 14,418,908,766 564,921,413 Net income (loss) per share – diluted $ (0.00 ) $ (2.49 ) $ (0.00 ) $ (0.01 ) |
Schedule of anti-dilutive shares | The anti-dilutive shares of common stock equivalents for the three and six months ended August 31, 2019 and 2018 were as follows: For the Three Months Ended August 31, For the Six Months Ended August 31, 2019 2018 2019 2018 Stock options and warrants — 2,294 — — Convertible debt 9,406,564,462 542,730,108 — — Preferred stock 4,706,857,132 9,377,102 — — Total 14,113,421,594 552,109,504 — — |
GENERAL INFORMATION (Details Na
GENERAL INFORMATION (Details Narrative) - shares | Aug. 28, 2017 | Aug. 31, 2019 | Feb. 28, 2019 | Jul. 25, 2017 |
Common stock, issued | 1,364,306,415 | 200,261,790 | ||
Robotic Assistance Devices, LLC ("RAD") [Member] | ||||
Common stock, issued | 10,000 | |||
Robotic Assistance Devices, LLC ("RAD") [Member] | Series F Preferred Stock [Member] | ||||
Number of shares isuued under acquisition | 2,450 | |||
Robotic Assistance Devices, LLC ("RAD") [Member] | Series E Preferred Stock [Member] | ||||
Number of shares isuued under acquisition | 3,350,000 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 6 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Feb. 28, 2019 | [1] | |
Going Concern | ||||
Cash flow from operating activities | $ (1,134,712) | $ (1,109,694) | ||
Accumulated deficit | (19,093,822) | $ (19,409,194) | ||
Working capital | $ (13,434,190) | |||
[1] | Derived from audited information. |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) | 6 Months Ended |
Aug. 31, 2019 | |
Demo Devices [Member] | |
Fixed assets, useful life | 4 years |
Vehicles [Member] | |
Fixed assets, useful life | 3 years |
Computer Equipment [Member] | |
Fixed assets, useful life | 3 years |
Office Equipment [Member] | |
Fixed assets, useful life | 4 years |
ACCOUNTING POLICIES (Details 1)
ACCOUNTING POLICIES (Details 1) - Fair Value, Measurements, Recurring [Member] - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
Liabilities | ||
Derivative liability - conversion features pursuant to convertible notes payable | $ 3,310,254 | $ 6,170,139 |
Level 1 [Member] | ||
Liabilities | ||
Derivative liability - conversion features pursuant to convertible notes payable | ||
Level 2 [Member] | ||
Liabilities | ||
Derivative liability - conversion features pursuant to convertible notes payable | ||
Level 3 [Member] | ||
Liabilities | ||
Derivative liability - conversion features pursuant to convertible notes payable | $ 3,310,254 | $ 6,170,139 |
ACCOUNTING POLICIES (Details Na
ACCOUNTING POLICIES (Details Narrative) - shares | Jul. 25, 2017 | Aug. 31, 2019 |
Revenue earning devices, useful life | 48 months | |
Minimum [Member] | ||
Fixed assets, useful life | 3 years | |
Maximum [Member] | ||
Fixed assets, useful life | 5 years | |
Robotic Assistance Devices, LLC ("RAD") [Member] | ||
Issuance of authorized common shares to sole shareholder | 10,000 |
CORRECTION OF AN ERROR IN PRE_3
CORRECTION OF AN ERROR IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Revenues | $ 75,024 | $ 10,175 | $ 115,329 | $ 26,841 |
Cost of Goods Sold | 31,250 | 203 | 35,509 | |
Gross Profit | 75,024 | (21,075) | 115,126 | (8,668) |
Operating expenses: | ||||
Research and development | 108,097 | 64,501 | 55,944 | 233,131 |
General and administrative | 504,358 | 840,752 | 904,449 | 1,751,719 |
Depreciation and amortization | 25,250 | 29,560 | 46,468 | 51,413 |
Loss on impairment of fixed assets | 4,739 | 4,739 | ||
Total operating expenses | 637,705 | 939,552 | 1,006,861 | 2,041,002 |
Loss from operations | (562,681) | (960,627) | (891,735) | (2,049,670) |
Total other income (expense), net | 187,447 | (3,713,682) | 1,207,107 | 12,253,272 |
Net income (loss) | $ (375,234) | $ (4,674,309) | $ 315,372 | $ 10,203,602 |
Net income ( loss) per share - basic (in dollars per share) | $ (2.49) | $ (0.01) | $ 6.4 | |
Net income (loss) per share - diluted (in dollars per share) | $ (2.49) | $ (0.01) | ||
Originally Stated [Member] | ||||
Revenues | $ 10,175 | $ 26,841 | ||
Cost of Goods Sold | 31,250 | 35,509 | ||
Gross Profit | (21,075) | (8,668) | ||
Operating expenses: | ||||
Research and development | 64,501 | 233,131 | ||
General and administrative | 898,290 | 2,282,217 | ||
Depreciation and amortization | 29,560 | 51,413 | ||
Loss on impairment of fixed assets | 4,739 | 4,739 | ||
Total operating expenses | 997,090 | 2,571,500 | ||
Loss from operations | (1,018,165) | (2,580,168) | ||
Total other income (expense), net | (3,713,682) | 12,253,272 | ||
Net income (loss) | $ (4,731,847) | $ 9,673,104 | ||
Net income ( loss) per share - basic (in dollars per share) | $ (2.52) | $ 6.07 | ||
Net income (loss) per share - diluted (in dollars per share) | $ (2.52) | $ (0.01) | ||
Adjustment [Member] | ||||
Revenues | ||||
Cost of Goods Sold | ||||
Gross Profit | ||||
Operating expenses: | ||||
Research and development | ||||
General and administrative | (57,538) | (530,498) | ||
Depreciation and amortization | ||||
Loss on impairment of fixed assets | ||||
Total operating expenses | (57,538) | (530,498) | ||
Loss from operations | 57,538 | 530,498 | ||
Total other income (expense), net | ||||
Net income (loss) | $ 57,538 | $ 530,498 | ||
Net income ( loss) per share - basic (in dollars per share) | ||||
Net income (loss) per share - diluted (in dollars per share) |
CORRECTION OF AN ERROR IN PRE_4
CORRECTION OF AN ERROR IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income (loss) | $ (375,234) | $ (4,674,309) | $ 315,372 | $ 10,203,602 | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 46,468 | 51,413 | |||
Provision for note receivable | 40,000 | ||||
Loss on impairment of fixed assets | 4,739 | ||||
Stock based compensation | 0 | 9,571 | |||
Change in fair value of derivative liabilities | (712,466) | 1,859,253 | (2,476,567) | (15,992,640) | |
Interest expense related to penalties from debt defaults | 221,055 | ||||
Interest expense related to derivative liability in excess of face value of debt | 684,781 | ||||
Amortization of debt discounts | 657,058 | 2,352,222 | |||
Loss on settlement of debt | 322,755 | (112,509) | 54,610 | ||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (17,222) | 9,627 | |||
Prepaid expenses | 18,778 | 12,826 | |||
Device parts inventory | (3,153) | 50,529 | |||
Accounts payable and accrued expenses | (46,510) | 784,172 | |||
Accrued interest payable | 504,616 | 403,799 | |||
Net cash used in operating activities | (1,134,712) | (1,109,694) | |||
Net cash used in investing activities | (23,572) | (188,765) | |||
Net cash provided by financing activities | 1,142,667 | 1,290,142 | |||
Net change in cash | (15,617) | (8,317) | |||
Cash, beginning of period | 21,192 | [1] | 24,773 | ||
Cash, end of period | $ 5,575 | 16,456 | $ 5,575 | 16,456 | |
Originally Stated [Member] | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income (loss) | (4,731,847) | 9,673,104 | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 51,413 | ||||
Provision for note receivable | 40,000 | ||||
Loss on impairment of fixed assets | 4,739 | ||||
Stock based compensation | 540,069 | ||||
Change in fair value of derivative liabilities | (15,992,640) | ||||
Interest expense related to penalties from debt defaults | 221,055 | ||||
Interest expense related to derivative liability in excess of face value of debt | 684,781 | ||||
Amortization of debt discounts | 2,352,222 | ||||
Loss on settlement of debt | 54,610 | ||||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 9,627 | ||||
Prepaid expenses | 12,826 | ||||
Device parts inventory | 50,529 | ||||
Accounts payable and accrued expenses | 784,172 | ||||
Accrued interest payable | 403,799 | ||||
Net cash used in operating activities | (1,109,694) | ||||
Net cash used in investing activities | (188,765) | ||||
Net cash provided by financing activities | 1,290,142 | ||||
Net change in cash | (8,317) | ||||
Cash, beginning of period | 24,773 | ||||
Cash, end of period | 16,456 | 16,456 | |||
Adjustment [Member] | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income (loss) | 57,538 | 530,498 | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | |||||
Provision for note receivable | |||||
Loss on impairment of fixed assets | |||||
Stock based compensation | (57,538) | (530,498) | |||
Change in fair value of derivative liabilities | |||||
Interest expense related to penalties from debt defaults | |||||
Interest expense related to derivative liability in excess of face value of debt | |||||
Amortization of debt discounts | |||||
Loss on settlement of debt | |||||
Changes in operating assets and liabilities: | |||||
Accounts receivable | |||||
Prepaid expenses | |||||
Device parts inventory | |||||
Accounts payable and accrued expenses | |||||
Accrued interest payable | |||||
Net cash used in operating activities | |||||
Net cash used in investing activities | |||||
Net cash provided by financing activities | |||||
Net change in cash | |||||
Cash, beginning of period | |||||
Cash, end of period | |||||
[1] | Derived from audited information. |
CORRECTION OF AN ERROR IN PRE_5
CORRECTION OF AN ERROR IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Stock based compensation | $ 0 | $ (9,571) | |
Adjustment [Member] | |||
Stock based compensation | $ 57,538 | $ 530,498 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Device rental activities | $ 75,024 | $ 10,175 | $ 115,329 | $ 26,431 |
Direct sales of goods and services | 410 | |||
Total revenue from contracts with customers | $ 75,024 | $ 10,175 | $ 115,329 | $ 26,841 |
PREPAID EXPENSES AND DEPOSITS_2
PREPAID EXPENSES AND DEPOSITS (Details) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 | |
Prepaid Expenses And Deposits | |||
Prepaid insurance | $ 18,778 | ||
Total Prepaid expenses and deposits | $ 18,778 | [1] | |
[1] | Derived from audited information. |
REVENUE EARNING DEVICES (Detail
REVENUE EARNING DEVICES (Details) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
Revenue Earning Devices | ||
Revenue earning devices | $ 351,318 | $ 229,958 |
Less: Accumulated depreciation | (78,340) | (42,784) |
Total revenue earning devices | $ 272,978 | $ 187,174 |
REVENUE EARNING DEVICES (Deta_2
REVENUE EARNING DEVICES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Revenue earning devices, depreciation expense | $ 19,789 | $ 11,579 | $ 35,556 | $ 14,788 |
Total additions to revenue earning devices | 121,360 | $ 188,690 | ||
Robotic Assistance Devices, LLC ("RAD") [Member] | ||||
Inventory transfers | $ 97,788 | $ 97,788 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 | |
Gross | $ 66,895 | $ 66,895 | |
Less: Accumulated depreciation | (40,614) | (29,701) | |
Fixed assets, net of accumulated depreciation | 26,281 | 37,194 | [1] |
Automobile [Member] | |||
Gross | 40,953 | 40,953 | |
Computer Equipment [Member] | |||
Gross | 20,262 | 20,262 | |
Office Equipment [Member] | |||
Gross | 5,680 | $ 5,680 | |
Leasehold Improvements [Member] | |||
Gross | |||
[1] | Derived from audited information. |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 5,461 | $ 14,886 | $ 10,912 | $ 29,898 |
Additions to fixed assets | $ 0 | $ 0 |
CUSTOMER DEPOSITS (Details Narr
CUSTOMER DEPOSITS (Details Narrative) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 | [1] | Feb. 28, 2017 |
Customer deposits | $ 10,000 | $ 10,000 | ||
Equipment [Member] | ||||
Customer deposits | $ 10,000 | |||
[1] | Derived from audited information. |
DEFERRED VARIABLE PAYMENT OBL_2
DEFERRED VARIABLE PAYMENT OBLIGATION (Details Narrative) - USD ($) | May 09, 2019 | Feb. 01, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2019 | Feb. 28, 2019 |
Principal amount | $ 327,302 | |||||
Due to related parties | 526,633 | $ 352,392 | ||||
Debt outstanding | 1,012,250 | 192,500 | ||||
Proceeds from related party | 159,526 | $ 135,908 | ||||
Investor [Member] | ||||||
Due to related parties | 10,000 | |||||
Investor [Member] | ||||||
Principal amount | $ 17,444 | |||||
Maximum amount of debt | $ 50,000 | |||||
Percentage of exchange rate | 1.11% | |||||
Description of variable payments terms | If the total investor advances turns out to be less than $50,000, this would not constitute a breach of the agreement, rather the 1.11% rate would be adjusted on a pro-rata basis. | |||||
Periodic payment | $ 8,014 | |||||
Date of first required payment | Jul. 1, 2019 | |||||
Frequency of periodic payment | Four monthly installments | |||||
Proceeds from related party | 33,972 | |||||
Investor [Member] | ||||||
Principal amount | $ 143,556 | |||||
Maximum amount of debt | $ 400,000 | |||||
Percentage of exchange rate | 4.00% | |||||
Description of variable payments terms | If the total investor advances turns out to be less than $400,000, this would not constitute a breach of the agreement, rather the 4% rate would be adjusted on a pro-rata basis. | |||||
Periodic payment | $ 64,111 | |||||
Date of first required payment | Jul. 1, 2019 | |||||
Frequency of periodic payment | Four monthly installments | |||||
Proceeds from related party | $ 271,778 | |||||
Investor [Member] | ||||||
Principal amount | $ 192,500 | |||||
Description of disposition price | The FMV cannot exceed 30% of the share disposition price defined as the total price the third party paid for the shares plus the total value of all future Payments. | |||||
Maximum amount of debt | $ 900,000 | |||||
Percentage of exchange rate | 9.00% | |||||
Description of variable payments terms | If the total investor advances turns out to be less than $900,000, this would not constitute a breach of the agreement, rather the 9% rate would be adjusted on a pro-rata basis. | These variable payments (Payments) are to be made 30 days after the fiscal quarter. If the Payments would deplete RAD’s available cash by more than 30%, the Payments may be deferred for up to 12 months after the quarterly report at an interest rate of 6% per annum on the unpaid amount. | ||||
Periodic payment | $ 60,000 | |||||
Maturity date | Nov. 30, 2019 | |||||
Date of first required payment | Jun. 30, 2019 | |||||
Frequency of periodic payment | Monthly installments | |||||
Proceeds from related party | $ 706,500 | |||||
Investor [Member] | Financial Assets Sold under Agreement to Repurchase [Member] | ||||||
Percentage of assets sold | 10.00% | |||||
Percentage of total asset disposition price | 30.00% |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details) - USD ($) | 6 Months Ended | |||
Aug. 31, 2019 | Feb. 28, 2019 | |||
Total convertible notes payable | $ 6,440,114 | $ 6,767,461 | ||
Less: current portion of convertible notes payable | (5,875,114) | (6,202,461) | ||
Less: discount on noncurrent convertible notes payable | (213,510) | (302,105) | ||
Noncurrent convertible notes payable, net of discount | 351,490 | 262,895 | [1] | |
Current portion of convertible notes payable | 5,875,114 | 6,202,461 | ||
Less: discount on current portion of convertible notes payable | (60,960) | (718,015) | ||
Current portion of convertible notes payable, net of discount | $ 5,814,154 | 5,484,446 | [1] | |
10% Convertible Note Due February 28, 2017 [Member] | ||||
Issuance date | Jan. 31, 2013 | |||
Conversion rate per share | [2] | $ 0.010 | ||
Total convertible notes payable | [3] | $ 119,091 | $ 119,091 | |
7% Convertible Note Due February 26, 2013 [Member] | ||||
Issuance date | Feb. 28, 2011 | |||
Conversion rate per share | $ 0.015 | |||
Total convertible notes payable | $ 32,600 | [3] | ||
10% Convertible Note Due November 30, 2016 [Member] | ||||
Issuance date | May 31, 2013 | |||
Conversion rate per share | [2] | $ 0.010 | ||
Total convertible notes payable | [3] | $ 261,595 | 261,595 | |
10% Convertible Note Due November 30, 2016 [Member] | ||||
Issuance date | Aug. 31, 2014 | |||
Conversion rate per share | [2] | $ 0.002 | ||
Total convertible notes payable | [3] | $ 355,652 | 355,652 | |
10% Convertible Note Due November 30, 2016 [Member] | ||||
Issuance date | Nov. 30, 2014 | |||
Conversion rate per share | [2] | $ 0.002 | ||
Total convertible notes payable | [3] | $ 103,950 | 103,950 | |
10% Convertible Note Due February 28, 2017 [Member] | ||||
Issuance date | Feb. 28, 2015 | |||
Conversion rate per share | [2] | $ 0.001 | ||
Total convertible notes payable | [3] | $ 63,357 | 63,357 | |
10% Convertible Note Due August 31, 2017 [Member] | ||||
Issuance date | May 31, 2015 | |||
Conversion rate per share | [2] | $ 1 | ||
Total convertible notes payable | [3] | $ 65,383 | 65,383 | |
10% Convertible Note Due August 31, 2017 [Member] | ||||
Issuance date | Aug. 31, 2015 | |||
Conversion rate per share | [2] | $ 0.300 | ||
Total convertible notes payable | [3] | $ 91,629 | 91,629 | |
10% Convertible Note Due November 30, 2018 [Member] | ||||
Issuance date | Nov. 30, 2015 | |||
Conversion rate per share | [2] | $ 0.300 | ||
Total convertible notes payable | [3] | $ 269,791 | 269,791 | |
10% Convertible Note Due February 28, 2019 [Member] | ||||
Issuance date | Feb. 29, 2016 | |||
Percentage of conversion rate discount | [4] | 60.00% | ||
Total convertible notes payable | [3] | $ 95,245 | 95,245 | |
10% Convertible Note Due May 31, 2019 [Member] | ||||
Issuance date | May 31, 2016 | |||
Conversion rate per share | [2] | $ 0.003 | ||
Total convertible notes payable | [3] | $ 35,100 | 35,100 | |
10% Convertible Note Due July 18, 2017 [Member] | ||||
Issuance date | Jul. 18, 2016 | |||
Conversion rate per share | [2] | $ 0.003 | ||
Total convertible notes payable | [3] | $ 3,500 | 3,500 | |
8% Convertible Note Due December 31, 2020 [Member] | ||||
Issuance date | Dec. 31, 2016 | |||
Percentage of conversion rate discount | [4] | 35.00% | ||
Total convertible notes payable | $ 65,000 | 65,000 | ||
8% Convertible Note Due January 15, 2021 [Member] | ||||
Issuance date | Jan. 15, 2017 | |||
Percentage of conversion rate discount | [4] | 35.00% | ||
Total convertible notes payable | $ 50,000 | 50,000 | ||
8% Convertible Note Due January 15, 2021 [Member] | ||||
Issuance date | Jan. 15, 2017 | |||
Percentage of conversion rate discount | [4] | 35.00% | ||
Total convertible notes payable | $ 100,000 | 100,000 | ||
8% Convertible Note Due January 16, 2021 [Member] | ||||
Issuance date | Jan. 16, 2017 | |||
Percentage of conversion rate discount | [4] | 35.00% | ||
Total convertible notes payable | $ 150,000 | 150,000 | ||
10% Convertible Note Due March 8, 2020 [Member] | ||||
Issuance date | Mar. 8, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | $ 100,000 | 100,000 | ||
8% Convertible Note Due March 9, 2021 [Member] | ||||
Issuance date | Mar. 9, 2017 | |||
Percentage of conversion rate discount | [4] | 35.00% | ||
Total convertible notes payable | $ 50,000 | 50,000 | ||
15% Convertible Note Due April 19, 2018 [Member] | ||||
Issuance date | Apr. 19, 2017 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | 96,250 | ||
0% Convertible Note Due April 26, 2018 [Member] | ||||
Issuance date | Apr. 26, 2017 | |||
Conversion rate per share | $ 0.001 | |||
Total convertible notes payable | [3] | $ 68 | 68 | |
8% Convertible Note Due May 1, 2021 [Member] | ||||
Issuance date | May 1, 2017 | |||
Percentage of conversion rate discount | [4] | 35.00% | ||
Total convertible notes payable | $ 50,000 | 50,000 | ||
8% Convertible Note Due May 4, 2018 [Member] | ||||
Issuance date | May 4, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 35,585 | 131,450 | |
0% Convertible Note Due May 15, 2018 [Member] | ||||
Issuance date | May 15, 2017 | |||
Conversion rate per share | $ 0.001 | |||
Total convertible notes payable | [3] | $ 1,280 | 1,280 | |
10% Convertible Note Due May 17, 2020 [Member] | ||||
Issuance date | May 17, 2017 | |||
Percentage of conversion rate discount | [5] | 40.00% | ||
Total convertible notes payable | $ 85,000 | 85,000 | ||
8% Convertible Note Due June 7, 2018 [Member] | ||||
Issuance date | Jun. 7, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 156,764 | 180,964 | |
0% Convertible Note Due June 16, 2018 [Member] | ||||
Issuance date | Jun. 16, 2017 | |||
Conversion rate per share | $ 0.001 | |||
Total convertible notes payable | [3] | $ 750 | 750 | |
8% Convertible Note Due July 6, 2018 [Member] | ||||
Issuance date | Jul. 6, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 200,000 | 200,000 | |
8% Convertible Note Due August 8, 2018 [Member] | ||||
Issuance date | Aug. 8, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 125,000 | 125,000 | |
15% Convertible Note Due August 29, 2018 [Member] | ||||
Issuance date | Aug. 29, 2017 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 147,500 | 147,500 | |
8% Convertible Note Due May 4, 2018 [Member] | ||||
Issuance date | Oct. 4, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 150,000 | 150,000 | |
15% Convertible Note Due October 16, 2018 [Member] | ||||
Issuance date | Oct. 16, 2017 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 175,093 | 204,067 | |
15% Convertible Note Due November 22, 2018 [Member] | ||||
Issuance date | Nov. 22, 2017 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 500,250 | 500,250 | |
10% Convertible Note Due December 28, 2017 [Member] | ||||
Issuance date | Dec. 28, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 28,150 | 28,150 | |
15% Convertible Note Due December 29, 2018 [Member] | ||||
Issuance date | Dec. 29, 2017 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 330,000 | 330,000 | |
8% Convertible Note Due January 9, 2019 [Member] | ||||
Issuance date | Jan. 9, 2018 | |||
Percentage of conversion rate discount | [4],[5] | 40.00% | ||
Total convertible notes payable | [3] | $ 79,508 | 79,508 | |
15% Convertible Note Due January 30, 2019 [Member] | ||||
Issuance date | Jan. 30, 2018 | |||
Percentage of conversion rate discount | [4],[5] | 50.00% | ||
Total convertible notes payable | [3] | $ 300,000 | 300,000 | |
15% Convertible Note Due February 21, 2019 [Member] | ||||
Issuance date | Feb. 21, 2018 | |||
Percentage of conversion rate discount | [4],[5] | 50.00% | ||
Total convertible notes payable | [3] | $ 300,000 | 300,000 | |
10% Convertible Note Due March 14, 2019 [Member] | ||||
Issuance date | Mar. 14, 2018 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 50,000 | 50,000 | |
8% Convertible Note Due June 9, 2019 [Member] | ||||
Issuance date | Jun. 7, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 200,000 | 200,000 | |
15% Convertible Note Due April 9, 2019 [Member] | ||||
Issuance date | Apr. 9, 2018 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 55,000 | 55,000 | |
8% Convertible Note Due March 21, 2018 [Member] | ||||
Issuance date | Mar. 21, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 40,000 | 40,000 | |
8% Convertible Note Due April 20, 2019 [Member] | ||||
Issuance date | Apr. 20, 2018 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 97,659 | 65,106 | |
10% Convertible Note Due December 2, 2018 [Member] | ||||
Issuance date | May 2, 2018 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 70,682 | 70,682 | |
12% Convertible Note Due May 4, 2019 [Member] | ||||
Issuance date | May 4, 2018 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 123,750 | 123,750 | |
10% Convertible Note Due December 14, 2018 [Member] | ||||
Issuance date | May 14, 2018 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 33,542 | 33,542 | |
10% Convertible Note Due May 23, 2019 [Member] | ||||
Issuance date | May 23, 2018 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 110,000 | 110,000 | |
15% Convertible Note Due June 6, 2019 [Member] | ||||
Issuance date | Jun. 6, 2018 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 282,949 | 282,949 | |
15% Convertible Note Due March 19, 2019 [Member] | ||||
Issuance date | Jun. 19, 2018 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 87,274 | 87,274 | |
8% Convertible Note Due June 9, 2018 [Member] | ||||
Issuance date | Jul. 6, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 200,000 | 200,000 | |
15% Convertible Note Due August 1, 2019 [Member] | ||||
Issuance date | Aug. 1, 2018 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 32,500 | 32,500 | |
8% Convertible Note Due August 23, 2019 [Member] | ||||
Issuance date | Aug. 23, 2018 | |||
Percentage of conversion rate discount | [4] | 45.00% | ||
Total convertible notes payable | [3] | $ 70,123 | 77,435 | |
12% Convertible Note Due June 30, 2019 [Member] | ||||
Issuance date | Sep. 13, 2018 | |||
Percentage of conversion rate discount | [4] | 45.00% | ||
Total convertible notes payable | [3] | $ 9,200 | 79,500 | |
10% Convertible Note Due March 17, 2019 [Member] | ||||
Issuance date | Sep. 17, 2018 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 4,945 | 4,945 | |
15% Convertible Note Due September 20, 2019 [Member] | ||||
Issuance date | Sep. 20, 2018 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 34,950 | 39,350 | |
8% Convertible Note Due June 24, 2019 [Member] | ||||
Issuance date | Sep. 24, 2018 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 44,000 | 44,000 | |
8% Convertible Note Due June 9, 2019 [Member] | ||||
Issuance date | Aug. 8, 2017 | |||
Percentage of conversion rate discount | [4] | 40.00% | ||
Total convertible notes payable | [3] | $ 125,000 | 125,000 | |
12% Convertible Note Due August 15, 2019 [Member] | ||||
Issuance date | Nov. 8, 2018 | |||
Percentage of conversion rate discount | [4] | 45.00% | ||
Total convertible notes payable | [3] | $ 79,500 | 79,500 | |
10% Convertible Note Due May 26, 2019 [Member] | ||||
Issuance date | Nov. 26, 2018 | |||
Percentage of conversion rate discount | [4] | 50.00% | ||
Total convertible notes payable | [3] | $ 44,799 | $ 44,798 | |
[1] | Derived from audited information. | |||
[2] | The conversion price is not subject to adjustment from forward or reverse stock splits. | |||
[3] | The indicated notes were in default as of August 31, 2019. Default interest rate 24% | |||
[4] | The notes are convertible at a discount (as indicated) to the average market price and are accounted for and evaluated under ASC 480 as discussed in Note 3. | |||
[5] | The note is convertible beginning six months after the date of issuance. |
CONVERTIBLE NOTES PAYABLE (De_2
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Principal face amount | $ 327,302 | $ 327,302 | ||
Proceeds from note | 159,573 | 263,429 | ||
Debt discount recognized from derivative liabilities | $ 924,009 | |||
Amortization of discount on convertible note payable | 657,058 | 2,352,222 | ||
Accrued interest payable | 66,895 | $ 66,895 | ||
Number of common stock issued upon conversion | 1,164,044,625 | |||
Convertible Note [Member] | ||||
Principal face amount | 327,302 | $ 327,302 | ||
Number of shares issued | 1,164,044,625 | |||
Notes fees | 500 | $ 500 | ||
Accrued interest payable | 66,895 | 66,895 | ||
Convertible Note Due April 20, 2018 [Member] | ||||
Penalty interest | 32,553 | |||
Convertible Note Due February 2013 [Member] | ||||
Gain(loss) on settlement of debt | 129,739 | |||
Write off debt | 32,600 | |||
Write off debt interest | 97,139 | |||
Convertible Note [Member] | ||||
Original issue discounts | 0 | $ 13,960 | 0 | 62,853 |
Debt discount recognized from derivative liabilities | 0 | 123,401 | 0 | 924,009 |
Amortization of discount on convertible note payable | 161,870 | 1,218,459 | 660,100 | 2,352,222 |
Penalty interest | $ 35,265 | 32,553 | $ 221,055 | |
Unsecured Convertible Note [Member] | ||||
Current accrued interest payable | 1,651,214 | 1,651,214 | ||
Noncurrent accrued interest payable | 109,138 | 109,138 | ||
Accrued interest payable | $ 1,760,352 | $ 1,760,352 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Feb. 28, 2019 | May 31, 2018 | ||
Related Party Transactions [Abstract] | |||||||
Net borrowings on loan payable - related party | $ 159,526 | $ 135,908 | |||||
Loan payable - related party | $ 1,153,904 | 1,153,904 | $ 782,844 | [1] | |||
Balance due to related party | 526,633 | 526,633 | 352,392 | ||||
Interest expense, related party | $ 331,602 | $ 210,000 | |||||
Percentage of interest expense due to related party | 12.00% | 12.00% | |||||
Accrued interest, related party | $ 34,917 | $ 13,650 | |||||
Consulting fees for research and development | $ 54,222 | $ 60,768 | $ (42,852) | $ 196,108 | |||
Credit received - related party | $ (106,444) | ||||||
[1] | Derived from audited information. |
OTHER DEBT - VEHICLE LOAN (Deta
OTHER DEBT - VEHICLE LOAN (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2016 | Aug. 31, 2019 | Aug. 31, 2018 | Feb. 28, 2019 | |
Vehicle loan secured by automobile | $ 327,302 | ||||
Outstanding balance of the loan | 394,697 | ||||
Robotic Assistance Devices, LLC ("RAD") [Member] | Vehicle Loan [Member] | |||||
Vehicle loan secured by automobile | $ 47,661 | $ 47,704 | |||
Term of debt | 5 years | 5 years | |||
Maturity date | Oct. 24, 2022 | Nov. 9, 2021 | |||
Payment of debt interest and principal | $ 923 | $ 1,019 | |||
Principal repayment of debt | 0 | $ 8,984 | |||
Total vehicle loan | 57,286 | $ 57,287 | |||
Current portion vehicle loan | 21,578 | ||||
Outstanding balance of the loan | 21,907 | ||||
Loss on sale of vehicle | 3,257 | ||||
Proceeds of disposal of vehicle offset against vehicle loan | $ 13,251 | $ 13,251 |
LOANS PAYABLE (Details)
LOANS PAYABLE (Details) - USD ($) | 6 Months Ended | |||
Aug. 31, 2019 | Feb. 28, 2019 | [1] | ||
Principal amount | $ 327,302 | |||
Total | 643,955 | |||
Less current portion of loans payable | 140,535 | |||
Non current portion of loans payable | $ 503,420 | $ 321,946 | ||
25% Promissory Note Due on June 11, 2019 [Member] | ||||
Date of issuance | [2] | Jun. 11, 2018 | ||
Principal amount | [2],[3] | $ 48,000 | ||
25% Promissory Note Due on September 1, 2018 [Member] | ||||
Date of issuance | [2] | Aug. 10, 2018 | ||
Principal amount | [2] | $ 10,000 | ||
25% Promissory Note Due on August 16, 2019 [Member] | ||||
Date of issuance | [2] | Aug. 16, 2018 | ||
Principal amount | [2],[4] | $ 22,624 | ||
25% Promissory Note Due on October 1 ,2018 [Member] | ||||
Date of issuance | [2] | Aug. 16, 2018 | ||
Principal amount | [2] | $ 10,000 | ||
20% Promissory Note Due on October 20 ,2018 [Member] | ||||
Date of issuance | [2] | Aug. 23, 2018 | ||
Principal amount | [2] | $ 5,506 | ||
20% Promissory Note Due on December 10, 2018 [Member] | ||||
Date of issuance | [2] | Oct. 10, 2018 | ||
Principal amount | [2],[5] | $ 4,956 | ||
20% Promissory Note Due on October 11, 2019 [Member] | ||||
Date of issuance | [2] | Oct. 11, 2018 | ||
Principal amount | [2],[6] | $ 23,000 | ||
Factoring Agreement Due on March 11, 2020 [Member] | ||||
Date of issuance | Aug. 5, 2019 | |||
Principal amount | [7] | $ 70,725 | ||
Factoring Agreement Due on November 15, 2019 [Member] | ||||
Date of issuance | Jul. 22, 2019 | |||
Principal amount | [8] | $ 27,813 | ||
Factoring Agreement Due on January 5, 2020 [Member] | ||||
Date of issuance | Jul. 9, 2019 | |||
Principal amount | [9] | $ 28,843 | ||
15% Promissory Note Due on June 30, 2019 [Member] | ||||
Date of issuance | [2] | Jan. 31, 2019 | ||
Principal amount | [2],[10] | $ 78,432 | ||
11% Loan Due on January 24, 2021 [Member] | ||||
Date of issuance | Jan. 24, 2019 | |||
Principal amount | [11] | $ 140,535 | ||
15% Promissory Note Due on June 30, 2019 [Member] | ||||
Date of issuance | [2] | May 9, 2019 | ||
Principal amount | [2],[12] | $ 7,850 | ||
15% Promissory Note Due on June 30, 2019 [Member] | ||||
Date of issuance | [2] | May 31, 2019 | ||
Principal amount | [2],[13] | $ 86,567 | ||
15% Promissory Note Due on June 26, 2020 [Member] | ||||
Date of issuance | Jun. 26, 2019 | |||
Principal amount | [14] | $ 79,104 | ||
[1] | Derived from audited information. | |||
[2] | Note is in default. No notice has been given by the note holder. | |||
[3] | Repayable in 12 monthly instalments of $4,562 commencing August 11, 2018 and secured by revenue earning devices having a net book value of at least $48,000. No repayments have been made by the Company and no notices have been received. | |||
[4] | Repayable in 12 monthly instalments of $2,376 commencing September 16, 2018 and secured by revenue earning devices having a net book value of at least $25,000.Only one $2,376 repayment has been made by the Company and no notices have been received. Accrued interest of $795 has been recorded this quarter. | |||
[5] | Repayable in 10 monthly instalments of $848 commencing January 10, 2019 and secured by revenue earning devices having a net book value of at least $186,000. $2,544 repaid this quarter. | |||
[6] | $20,000 repaid in quarter ended February 28, 2019. | |||
[7] | Total loan $79,750, repayable $475 per business day including fees and interest of $25,170. Original cash proceeds of $31,353 and $23,227 carried from previous loan less repayment of $9,025. Previous loan ending December 19, 2019 of $31,080 including additional interest and fees of $11,111 was repaid this quarter. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty bv the controlling shareholder of the Company. | |||
[8] | Total loan $52,150, repayable $869 per business day including fees and interest of $17,150. Original cash proceeds of $35,000 less repayment of 24,337. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty bv the controlling shareholder of the Company. | |||
[9] | Total loan of $41.700, repayable $348 per business day including fees and interest of $11,700. Original proceeds of $30,000 less repayment of $12,058.The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guarantee by the controlling shareholder of the Company. | |||
[10] | The note may be pre-payable at any time. The note balance includes 33% original issue discount of $25,882. | |||
[11] | $185,000 Canadian loan. Interest payable every calendar quarter commencing June30, 2019, if unpaid accrued interest to be paid at maturity. An additional interest amount calculated as 4% of RAD revenues from SCOT rentals for the fiscal years 2020 and 2021 shall be payable March 31, 2020 and March 31, 2021, respectively. Secured by a general security charging all of RAD's present and after-acquired property in favour of the lender on a first priority basis subject to the following: the lender's security in this respect shall be post-poneable to security in favour of institutional financing obtained by RAD. | |||
[12] | The note may be pre-payable at any time. The note balance includes 33% original issue discount of $2,590. | |||
[13] | The note may be pre-payable at any time. The note balance includes 33% original issue discount of $28,567. | |||
[14] | The note may be pre-payable at any time. The note balance includes 33% original issue discount of $26,104. |
LOANS PAYABLE (Details Narrativ
LOANS PAYABLE (Details Narrative) - USD ($) | Jan. 10, 2019 | Sep. 16, 2018 | Aug. 11, 2018 | Aug. 31, 2019 | Aug. 31, 2019 | Jan. 11, 2019 | |
Principal amount | $ 327,302 | $ 327,302 | |||||
Proceeds from loan payable | 159,573 | 263,429 | |||||
Repayment of loan payable | 69,498 | 100,038 | |||||
20% Promissory Note Due on January 10, 2019 [Member] | |||||||
Perodic Payment | $ 848 | ||||||
Repayment of debt | 2,544 | ||||||
Net book value | $ 186,000 | ||||||
Payment term | P10M | ||||||
20% Promissory Note Due on October 11, 2019 [Member] | |||||||
Repayment of debt | $ 20,000 | ||||||
Factoring Agreement Due on November 15, 2019 [Member] | |||||||
Perodic Payment | 869 | ||||||
Repayment of debt | 24,337 | 24,337 | |||||
Original proceeds | 35,000 | ||||||
Fees and interest | 17,150 | ||||||
Principal amount | 52,150 | 52,150 | |||||
Factoring Agreement on January 5, 2020 [Member] | |||||||
Perodic Payment | 348 | ||||||
Repayment of debt | 12,058 | 12,058 | |||||
Original proceeds | 30,000 | ||||||
Fees and interest | 11,700 | ||||||
Principal amount | 41,700 | 41,700 | |||||
Factoring Agreement on December 19, 2019 [Member] | |||||||
Repayment of debt | 11,111 | 11,111 | |||||
Fees and interest | 31,080 | ||||||
Factoring Agreement Due on March 11, 2020 [Member] | |||||||
Perodic Payment | 475 | ||||||
Repayment of debt | 9,025 | 9,025 | |||||
Original proceeds | 31,353 | ||||||
Fees and interest | 25,170 | ||||||
Principal amount | 79,750 | 79,750 | |||||
Loan carry forward | 23,227 | ||||||
25% Promissory Note Due on August 16, 2019 [Member] | |||||||
Perodic Payment | $ 2,376 | ||||||
Net book value | $ 25,000 | ||||||
Payment term | P12M | ||||||
Accrued interest | 795 | ||||||
Principal amount | [1],[2] | 22,624 | $ 22,624 | ||||
15% Promissory Note on June 30, 2019 [Member] | |||||||
Percentage of original issue discounts | 33.00% | ||||||
Original issue discounts | $ 2,590 | ||||||
15% Promissory Note on June 30, 2019 [Member] | |||||||
Percentage of original issue discounts | 33.00% | ||||||
Original issue discounts | $ 28,567 | ||||||
25% Promissory Note Due on June 11, 2019 [Member] | |||||||
Perodic Payment | $ 4,562 | ||||||
Net book value | $ 48,000 | ||||||
Payment term | P12M | ||||||
11% Loan on January 24, 2021 [Member] | |||||||
Principal amount | $ 185,000 | $ 185,000 | |||||
11% Loan on January 24, 2021 [Member] | Robotic Assistance Devices, LLC ("RAD") [Member] | |||||||
Debt interest rate | 4.00% | 4.00% | |||||
11% Loan on January 24, 2021 [Member] | Robotic Assistance Devices, LLC ("RAD") [Member] | Minimum [Member] | |||||||
Maturity date | Mar. 31, 2020 | ||||||
11% Loan on January 24, 2021 [Member] | Robotic Assistance Devices, LLC ("RAD") [Member] | Maximum [Member] | |||||||
Maturity date | Mar. 31, 2021 | ||||||
15% Promissory Note on June 30, 2019 [Member] | |||||||
Percentage of original issue discounts | 33.00% | ||||||
Principal amount | $ 25,882 | $ 25,882 | |||||
Factoring Agreement Due on June 26, 2020 [Member] | |||||||
Percentage of original issue discounts | 33.00% | ||||||
Original issue discounts | $ 26,104 | ||||||
[1] | Note is in default. No notice has been given by the note holder. | ||||||
[2] | Repayable in 12 monthly instalments of $2,376 commencing September 16, 2018 and secured by revenue earning devices having a net book value of at least $25,000.Only one $2,376 repayment has been made by the Company and no notices have been received. Accrued interest of $795 has been recorded this quarter. |
DERIVATIVE LIABILITES (Details)
DERIVATIVE LIABILITES (Details) | 6 Months Ended |
Aug. 31, 2019$ / shares | |
Dividend Yield [Member] | |
Fair value measurement | 0 |
Maximum [Member] | |
Strike price | $ 1 |
Maximum [Member] | Fair Value Of Company Common Stock[Member] | |
Fair value measurement | 0.0015 |
Maximum [Member] | Expected Volatility [Member] | |
Fair value measurement | 2.9332 |
Maximum [Member] | Risk Free Interest Rate [Member] | |
Fair value measurement | 0.0258 |
Maximum [Member] | Expected Term [Member] | |
Expected term (years) | 3 years 1 month 13 days |
Minimum [Member] | |
Strike price | $ 0.001 |
Minimum [Member] | Fair Value Of Company Common Stock[Member] | |
Fair value measurement | 0.0003 |
Minimum [Member] | Expected Volatility [Member] | |
Fair value measurement | 1.836 |
Minimum [Member] | Risk Free Interest Rate [Member] | |
Fair value measurement | 0.0120 |
Minimum [Member] | Expected Term [Member] | |
Expected term (years) | 18 days |
DERIVATIVE LIABILITES (Details
DERIVATIVE LIABILITES (Details 1) - USD ($) | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Balance as of February 28, 2019 | [1] | $ 6,170,139 | |
Derivative liability in excess of face value of debt recorded to interest expense | $ 684,781 | ||
Increase in derivative liability due to debt settlement | $ 924,009 | ||
Balance as of August 31, 2019 | 3,310,254 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Balance as of February 28, 2019 | 6,170,139 | ||
Release of derivative liability on conversion of convertible notes payable | (383,318) | ||
Change in fair value of derivative liabilities | (2,476,567) | ||
Balance as of August 31, 2019 | $ 3,310,254 | ||
[1] | Derived from audited information. |
DERIVATIVE LIABILITES (Detail_2
DERIVATIVE LIABILITES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Feb. 28, 2019 | [1] | |
Derivative Liability [Abstract] | ||||||
Derivative liabilities | $ 3,310,254 | $ 3,310,254 | $ 6,170,139 | |||
Due to equity conversions derivative liability | $ 228,634 | $ 75,092 | $ 383,318 | $ 757,222 | ||
[1] | Derived from audited information. |
SHAREHOLDERS' EQUITY (DEFICIT_2
SHAREHOLDERS' EQUITY (DEFICIT) (Details) | 6 Months Ended |
Aug. 31, 2019$ / sharesshares | |
Number of Warrants, Outstanding [Roll Forward] | |
Outstanding at beginning | shares | 20,436,309 |
Issued | shares | |
Exercised | shares | |
Forfeited and cancelled | shares | |
Outstanding at ending | shares | 20,436,309 |
Warrants, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Outstanding at beginning | $ / shares | $ 0.01 |
Issued | $ / shares | |
Exercised | $ / shares | |
Forfeited and cancelled | $ / shares | |
Outstanding at ending | $ / shares | $ 0.01 |
Warrants, Options, Outstanding, Weighted Average Remaining Contractual Life [Roll Forward] | |
Outstanding at beginning | 2 years 6 months 22 days |
Outstanding at ending | 2 years 3 months 22 days |
SHAREHOLDERS' EQUITY (DEFICIT_3
SHAREHOLDERS' EQUITY (DEFICIT) (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Apr. 23, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Feb. 28, 2019 | |
Stockholders' Equity Note [Abstract] | ||||
Number of common stock, authorized | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | |
Number of common stock shares issued on conversion (in shares) | 1,164,044,625 | |||
Common stock, par value (in dollars per shares) | $ 0.00001 | $ 0.00001 | $ 0.00001 | |
Description of reverse stock split | 2:1 and not more than 2000:1 | |||
Fees converted | $ 500 | |||
Accrued interest payable | 66,895 | |||
Original amount | 394,697 | |||
Principal amount | 327,302 | |||
Stock-based compensation adjustment to additional paid in capital | $ 0 | $ 9,571 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Dec. 31, 2020 | Jul. 24, 2020 | Jun. 25, 2020 | May 25, 2020 | Apr. 25, 2020 | Mar. 26, 2020 | Feb. 25, 2020 | Jan. 26, 2020 | Dec. 31, 2019 | Dec. 27, 2019 | Nov. 27, 2019 | Oct. 28, 2019 | Sep. 28, 2019 | Aug. 29, 2019 | Jul. 30, 2019 | Jun. 30, 2019 | Oct. 14, 2018 | Aug. 31, 2019 |
Total | $ 7,500 | $ 5,000 | $ 5,000 | $ 17,500 | $ 180,000 | |||||||||||||
Subsequent Event [Member] | ||||||||||||||||||
Total | $ 120,000 | $ 20,000 | $ 20,000 | $ 20,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 60,000 | $ 15,000 | $ 10,000 | $ 10,000 | $ 7,500 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Dec. 31, 2020 | Jul. 24, 2020 | Jun. 25, 2020 | May 25, 2020 | Apr. 25, 2020 | Mar. 26, 2020 | Feb. 25, 2020 | Jan. 26, 2020 | Dec. 31, 2019 | Dec. 27, 2019 | Nov. 27, 2019 | Oct. 28, 2019 | Sep. 28, 2019 | Aug. 29, 2019 | Jul. 30, 2019 | Jun. 30, 2019 | Oct. 14, 2018 | Feb. 01, 2018 | Apr. 30, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Rent expense | $ 1,000 | $ 30,157 | $ 4,000 | $ 59,762 | ||||||||||||||||||||
Operating expenses | $ 637,705 | $ 939,552 | 1,006,861 | $ 2,041,002 | ||||||||||||||||||||
Loss on settlement | $ 62,039 | |||||||||||||||||||||||
Settlement payment | $ 7,500 | $ 5,000 | $ 5,000 | $ 17,500 | $ 180,000 | |||||||||||||||||||
WeSecure Robotics, Inc [Member] | ||||||||||||||||||||||||
Non-payment balance | 25,000 | |||||||||||||||||||||||
Attorney's fees and damages | $ 199,358 | |||||||||||||||||||||||
Description of settlement | The parties finally settled all claims with a full release for $180,000 in June 2019 payable in 14 monthly instalments. | |||||||||||||||||||||||
WeSecure Robotics, Inc [Member] | Unpaid Consulting Fees Payable [Member] | ||||||||||||||||||||||||
Non-payment balance | 125,924 | |||||||||||||||||||||||
WeSecure Robotics, Inc [Member] | Labor Code Violations [Member] | ||||||||||||||||||||||||
Non-payment balance | 48,434 | |||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||
Settlement payment | $ 120,000 | $ 20,000 | $ 20,000 | $ 20,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 60,000 | $ 15,000 | $ 10,000 | $ 10,000 | $ 7,500 | |||||||||||
Extension date | Nov. 8, 2019 | |||||||||||||||||||||||
Northern California [Member] | ||||||||||||||||||||||||
Rent lease expire | 2020-08 | |||||||||||||||||||||||
Percentager of lease cost paid by company | 75.00% | |||||||||||||||||||||||
Percentager of lease cost paid by supplier | 25.00% | |||||||||||||||||||||||
Rent expense | $ 43,000 | |||||||||||||||||||||||
Robotic control center [Member] | ||||||||||||||||||||||||
Lease cost | $ 6,600 | |||||||||||||||||||||||
Lease maturity date | Jan. 31, 2021 | |||||||||||||||||||||||
Robotic Assistance Devices, LLC ("RAD") [Member] | ||||||||||||||||||||||||
Description of settlement | Regarding the lease at La Cadena, the Company agreed to a settlement amount to cover unpaid rent , commissions and leasehold improvements paid by the landlord totaling $62,039 to be paid by the Company in 4 monthly instalments of $5,000 commencing August 1, 2019 with the remaining balance to be paid in $10,000 monthly instalments thereafter. | |||||||||||||||||||||||
Entity address | The Company currently maintains an office at 1218-1222 Magnolia Ave, Suite 106 Bldg. H ,Corona, California. | |||||||||||||||||||||||
Annual rent | $ 12,000 | |||||||||||||||||||||||
Robotic Assistance Devices, LLC ("RAD") [Member] | Mailing Address [Member] | ||||||||||||||||||||||||
Entity address | RAD maintains a mailing address for 31103 Ranch Viejo Road, Suite d2114. | |||||||||||||||||||||||
Yearly nominal fee for mailing | $ 264 | |||||||||||||||||||||||
Annual rent | 65,000 | |||||||||||||||||||||||
Operating expenses | $ 35,000 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Numerator: | ||||
Net income (loss) available to common shareholders | $ (375,234) | $ (4,674,309) | $ 315,372 | $ 10,203,602 |
Effect of common stock equivalents | ||||
Add: interest expense on convertible debt | 150,848 | 281,204 | 410,184 | |
Add (less) loss (gain) on change of derivative liabilities | (712,466) | (2,476,567) | (15,992,640) | |
Net income (loss) adjusted for common stock equivalents | $ (936,852) | $ (4,674,309) | $ (1,879,991) | $ (5,378,854) |
Denominator: | ||||
Weighted average shares - basic (in shares) | 543,026,466 | 1,878,320 | 305,487,172 | 1,594,296 |
Net income (loss) per share - basic (in dollars per share) | $ (2.49) | $ (0.01) | $ 6.4 | |
Dilutive effect of common stock equivalents: | ||||
Warrants (in shares) | 16,436 | |||
Convertible Debt (in shares) | 9,406,564,462 | 553,933,579 | ||
Preferred shares (in shares) | 4,706,857,132 | 9,377,102 | ||
Denominator: | ||||
Weighted average shares - diluted (in shares) | 543,026,466 | 1,878,320 | 14,418,908,766 | 550,921,512 |
Net income (loss) per share - diluted (in dollars per share) | $ (2.49) | $ (0.01) |
EARNINGS (LOSS) PER SHARE (De_2
EARNINGS (LOSS) PER SHARE (Details 1) - shares | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Total | 14,113,421,594 | 552,109,504 | ||
Stock Options And Warrants [Member] | ||||
Total | 2,294 | |||
Convertible Debt [Member] | ||||
Total | 9,406,564,462 | 542,730,108 | ||
Preferred Stock [Member] | ||||
Total | 4,706,857,132 | 9,377,102 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Sep. 27, 2019 | Sep. 17, 2019 | Sep. 05, 2019 | Sep. 02, 2019 | Feb. 01, 2019 | Aug. 31, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Feb. 28, 2019 | |
Interest paid | $ 8,654 | $ 3,213 | ||||||||
Principal amount | $ 327,302 | 327,302 | ||||||||
Proceeds from issuance of debt | 159,573 | 263,429 | ||||||||
Carried forward loan amount | 394,697 | 394,697 | ||||||||
Deferred variable payment obligation | $ 1,002,237 | $ 1,002,237 | $ 190,392 | [1] | ||||||
Subsequent Event [Member] | Other Loans [Member] | ||||||||||
Repaid loan | $ 66,127 | |||||||||
Subsequent Event [Member] | Convertible Notes [Member] | ||||||||||
Number of shares converted (in shares) | 2,300,380,444 | |||||||||
Number of shares converted, value | $ 234,904 | |||||||||
Interest paid | 110,965 | |||||||||
Subsequent Event [Member] | Factoring Loan [Member] | ||||||||||
Interest paid | $ 19,600 | $ 4,000 | ||||||||
Term of debt | 5 months | 2 months | ||||||||
Principal amount | $ 59,600 | $ 24,000 | ||||||||
Proceeds from issuance of debt | 40,000 | 20,000 | ||||||||
Payment of debt interest and principal | $ 590 | $ 2,480 | ||||||||
Description of repayment of note | Repayable $590 per business day with $5,905 repaid to date. | Repayable $2,480 per week with $9,920 repaid to date. | ||||||||
Investor [Member] | ||||||||||
Principal amount | $ 192,500 | |||||||||
Payment of debt interest and principal | $ 60,000 | |||||||||
Description of repayment of note | If the total investor advances turns out to be less than $900,000, this would not constitute a breach of the agreement, rather the 9% rate would be adjusted on a pro-rata basis. | These variable payments (Payments) are to be made 30 days after the fiscal quarter. If the Payments would deplete RAD’s available cash by more than 30%, the Payments may be deferred for up to 12 months after the quarterly report at an interest rate of 6% per annum on the unpaid amount. | ||||||||
Debt instrument maturity date | Nov. 30, 2019 | |||||||||
Investor [Member] | Subsequent Event [Member] | ||||||||||
Deferred variable payment obligation | $ 194,250 | |||||||||
Investor [Member] | Subsequent Event [Member] | Promissory Note [Member] | ||||||||||
Principal amount | $ 26,250 | |||||||||
Proceeds from issuance of debt | $ 25,000 | |||||||||
Debt instrument maturity date | Aug. 29, 2020 | |||||||||
Debt instrument conversion terms | The promissory note is convertible into common shares of the Company at a conversion price equal to 60% of the lowest trading price of the Company’s common stock for the last 20 trading days prior to conversion, and has a 8% per annum interest rate. | |||||||||
[1] | Derived from audited information. |