Cover
Cover - shares | 9 Months Ended | |
Nov. 30, 2020 | Jan. 12, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Artificial Intelligence Technology Solutions Inc. | |
Entity Central Index Key | 0001498148 | |
Document Type | 10-Q | |
Entity Incorporation, State or Country Code | NV | |
Entity File Number | 0-55079 | |
Document Period End Date | Nov. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-28 | |
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 | 2,570,141,294 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Nov. 30, 2020 | Feb. 29, 2020 | [1] |
Current assets: | |||
Cash | $ 249,297 | $ 13,307 | |
Accounts receivable | 111,709 | 50,117 | |
Device parts inventory | 104,360 | 24,789 | |
Total current assets | 465,366 | 88,213 | |
Revenue earning devices, net of accumulated depreciation of $197,138 and $123,088 respectively | 238,061 | 239,171 | |
Fixed assets, net of accumulated depreciation of $64,212 and $51,637, respectively | 4,767 | 16,258 | |
Total assets | 708,194 | 343,642 | |
Current liabilities: | |||
Accounts payable and accrued expenses | 1,525,134 | 1,144,660 | |
Advances payable | 1,594 | 1,597 | |
Balance owed WeSecure | 139,500 | 162,500 | |
Customer deposits | 10,500 | 10,000 | |
Current portion of deferred variable payment obligation | 77,683 | 30,534 | |
Current portion of convertible notes payable, net of discount of $22,488 and $120,602 respectively | 5,486,076 | 6,613,625 | |
Loan payable - related party | 1,189,155 | 1,310,358 | |
Current portion of loans payable, net of discount of $207,500 and $0, respectively | 923,497 | 696,154 | |
Vehicle loan - current portion | 38,522 | 38,522 | |
Current portion of accrued interest payable | 3,486,043 | 2,778,583 | |
Derivative liability | 3,261,457 | 6,890,688 | |
Total current liabilities | 16,139,161 | 19,677,221 | |
Convertible notes payable, net of discount of $0 and $30,486 respectively | 69,515 | ||
Note payable | |||
Loans payable, net of discount of $200,300 and $0, respectively | 649,250 | ||
Deferred variable payment obligation | 2,525,000 | 1,559,000 | |
Accrued interest payable | 16,038 | 144,311 | |
Total liabilities | 19,329,449 | 21,450,047 | |
Commitments and Contingencies | |||
Stockholders' deficit: | |||
Preferred Stock, undesignated; 15,645,650 shares authorized; no shares issued and outstanding at November 30, 2020 and February 29, 2020, respectively | |||
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 | |
Series F Convertible Preferred Stock, $1.00 par value; 4,350 shares authorized; 2,634 and 3,450 shares issued and outstanding, respectively | 2,634 | 3,450 | |
Common Stock, $0.00001 par value; 5,000,000,000 shares authorized 1,889,573,434 and 418,415 shares issued and outstanding, respectively | 18,896 | 4 | |
Additional paid-in capital | 10,436,299 | 4,334,564 | |
Preferred stock to be issued | 174,070 | 174,070 | |
Accumulated deficit | (29,257,504) | (25,622,843) | |
Total stockholders' deficit | (18,621,255) | (21,106,405) | |
Total liabilities and stockholders' deficit | $ 708,194 | $ 343,642 | |
[1] | Derived from audited information |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Nov. 30, 2020 | Feb. 29, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, Revenue earning devices | $ 197,138 | $ 123,088 |
Accumulated depreciation, Fixed assets | 64,212 | 51,637 |
Discount of current portion of convertible notes payable | 22,488 | 120,602 |
Discount of current portion of loans payable | 207,500 | 0 |
Discount of convertible notes payable | 0 | 30,486 |
Discount of loans payable | $ 200,300 | $ 0 |
Preferred stock, undesignated, authorized | 15,645,650 | 15,645,650 |
Preferred stock, undesignated, issued | 0 | 0 |
Preferred stock, undesignated, outstanding | 0 | 0 |
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 | 2,634 | 3,450 |
Series F Preferred Stock, outstanding | 2,634 | 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 | 1,889,573,434 | 418,415 |
Common Stock, outstanding | 1,889,573,434 | 418,415 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 119,700 | $ 71,434 | $ 259,103 | $ 186,763 |
Cost of Goods Sold | 24,682 | 26,861 | 69,983 | 68,129 |
Gross Profit | 95,018 | 44,573 | 189,120 | 118,634 |
Operating expenses: | ||||
Research and development | 20,624 | 127,564 | 211,025 | 246,872 |
General and administrative | 944,323 | 432,714 | 1,795,624 | 1,232,734 |
Depreciation and amortization | 30,145 | 27,591 | 88,621 | 74,059 |
Loss on disposal of fixed assets | (7,500) | 553 | (7,500) | |
Total operating expenses | 995,092 | 580,369 | 2,095,823 | 1,546,165 |
Loss from operations | (900,074) | (535,796) | (1,906,703) | (1,427,531) |
Other income (expense), net: | ||||
Change in fair value of derivative liabilities | 5,354,622 | (2,108,596) | 1,027,328 | 367,971 |
Interest expense | (1,076,275) | (825,504) | (2,785,317) | (2,207,473) |
Gain (loss) on settlement of debt | 30,032 | 73,865 | 30,032 | 186,374 |
Total other income (expense), net | 4,308,379 | (2,860,235) | (1,727,957) | (1,653,128) |
Net income (loss) | $ 3,408,305 | $ (3,396,031) | $ (3,634,660) | $ (3,080,659) |
Net income ( loss) per share - basic (in dollars per share) | $ 0 | $ (3.40) | $ 0 | $ (15.30) |
Net income (loss) per share - diluted (in dollars per share) | $ 0 | $ (3.40) | $ 0 | $ (15.30) |
Weighted average common share outstanding - basic (in shares) | 679,536,441 | 312,730 | 470,273,731 | 185,596 |
Weighted average common share outstanding - diluted (in shares) | 679,536,441 | 312,730 | 470,273,731 | 185,596 |
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, 2019 | $ 3,395,606 | $ (19,409,194) | $ 4,350 | $ 177,520 | $ (15,831,718) | ||
Balance at beginning (in shares) at Feb. 28, 2019 | 20,026 | 4,350,000 | 3,450 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adjustment to derivative liability | 154,684 | 154,684 | |||||
Common stock issued for debt conversion | 142,998 | 142,998 | |||||
Common stock issued for debt conversion (in shares) | 17,104 | ||||||
Stock based compensation | |||||||
Net income | 690,606 | 690,606 | |||||
Balance at end at May. 31, 2019 | 3,693,288 | (18,718,588) | $ 4,350 | $ 177,520 | (14,843,430) | ||
Balance at end (in shares) at May. 31, 2019 | 37,130 | 4,350,000 | 3,450 | ||||
Balance at beginning at Feb. 28, 2019 | 3,395,606 | (19,409,194) | $ 4,350 | $ 177,520 | (15,831,718) | ||
Balance at beginning (in shares) at Feb. 28, 2019 | 20,026 | 4,350,000 | 3,450 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | (3,080,659) | ||||||
Balance at end at Nov. 30, 2019 | 4,471,303 | (22,489,853) | $ 4,350 | $ 177,520 | (17,836,680) | ||
Balance at end (in shares) at Nov. 30, 2019 | 153,534 | 4,350,000 | 3,450 | ||||
Balance at beginning at May. 31, 2019 | 3,693,288 | (18,718,588) | $ 4,350 | $ 177,520 | (14,843,430) | ||
Balance at beginning (in shares) at May. 31, 2019 | 37,130 | 4,350,000 | 3,450 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adjustment to derivative liability | 228,634 | 228,634 | |||||
Common stock issued for debt conversion | 251,699 | 251,699 | |||||
Common stock issued for debt conversion (in shares) | 99,300 | ||||||
Stock based compensation | |||||||
Net income | (375,234) | (375,234) | |||||
Balance at end at Aug. 31, 2019 | 4,173,621 | (19,093,822) | $ 4,350 | $ 177,520 | (14,738,331) | ||
Balance at end (in shares) at Aug. 31, 2019 | 136,430 | 4,350,000 | 3,450 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adjustment to derivative liability | 154,684 | 154,684 | |||||
Common stock issued for debt conversion | 142,998 | 142,998 | |||||
Common stock issued for debt conversion (in shares) | 17,104 | ||||||
Net income | (3,396,031) | (3,396,031) | |||||
Balance at end at Nov. 30, 2019 | 4,471,303 | (22,489,853) | $ 4,350 | $ 177,520 | (17,836,680) | ||
Balance at end (in shares) at Nov. 30, 2019 | 153,534 | 4,350,000 | 3,450 | ||||
Balance at beginning at Feb. 29, 2020 | $ 4 | 4,334,564 | (25,622,843) | $ 4,350 | $ 177,520 | (21,106,405) | [1] |
Balance at beginning (in shares) at Feb. 29, 2020 | 418,415 | 4,350,000 | 3,450 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adjustment to derivative liability | 167,497 | 167,497 | |||||
Common stock issued for debt conversion | $ 61 | 159,597 | 159,658 | ||||
Common stock issued for debt conversion (in shares) | 6,068,336 | ||||||
Rounding shares (in shares) | 9 | ||||||
Net income | 1,975,276 | 1,975,276 | |||||
Balance at end at May. 31, 2020 | $ 65 | 4,661,658 | (23,647,567) | $ 4,350 | $ 177,520 | (18,803,974) | |
Balance at end (in shares) at May. 31, 2020 | 6,486,760 | 4,350,000 | 3,450 | ||||
Balance at beginning at Feb. 29, 2020 | $ 4 | 4,334,564 | (25,622,843) | $ 4,350 | $ 177,520 | (21,106,405) | [1] |
Balance at beginning (in shares) at Feb. 29, 2020 | 418,415 | 4,350,000 | 3,450 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | (3,634,660) | ||||||
Balance at end at Nov. 30, 2020 | $ 18,896 | 10,436,299 | (29,257,504) | $ 4,350 | $ 176,704 | (18,621,255) | |
Balance at end (in shares) at Nov. 30, 2020 | 1,889,573,434 | 4,350,000 | 2,634 | ||||
Balance at beginning at May. 31, 2020 | $ 65 | 4,661,658 | (23,647,567) | $ 4,350 | $ 177,520 | (18,803,974) | |
Balance at beginning (in shares) at May. 31, 2020 | 6,486,760 | 4,350,000 | 3,450 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adjustment to derivative liability | 1,560,733 | 1,560,733 | |||||
Contributed Capital | (11,508) | (11,508) | |||||
Common stock issued for debt conversion | $ 5,235 | 1,916,719 | 1,921,954 | ||||
Common stock issued for debt conversion (in shares) | 523,543,455 | ||||||
Cancellation of Series F Preferred Shares | 816 | $ (816) | |||||
Cancellation of Series F Preferred Shares (in shares) | (816) | ||||||
Net income | (9,018,241) | (9,018,241) | |||||
Balance at end at Aug. 31, 2020 | $ 5,300 | 8,128,418 | (32,665,808) | $ 4,350 | $ 176,704 | (24,351,036) | |
Balance at end (in shares) at Aug. 31, 2020 | 530,030,215 | 4,350,000 | 2,634 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adjustment to derivative liability | 873,673 | 873,673 | |||||
Common stock issued for debt conversion | $ 13,596 | 1,104,208 | 1,117,804 | ||||
Common stock issued for debt conversion (in shares) | 1,359,543,219 | ||||||
Warrants issued with promissory notes | 330,000 | 330,000 | |||||
Net income | 3,408,304 | 3,408,305 | |||||
Balance at end at Nov. 30, 2020 | $ 18,896 | $ 10,436,299 | $ (29,257,504) | $ 4,350 | $ 176,704 | $ (18,621,255) | |
Balance at end (in shares) at Nov. 30, 2020 | 1,889,573,434 | 4,350,000 | 2,634 | ||||
[1] | Derived from audited information |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (3,634,660) | $ (3,080,659) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 88,621 | 74,059 | |
Loss (gain) on (disposal) impairment of fixed assets | 553 | (7,500) | |
Stock based compensation | 362,084 | ||
Provision for inventory | |||
Provision for inventory | 54,702 | ||
Change in fair value of derivative liabilities | (1,027,328) | (367,971) | |
Interest expense related to derivative liability in excess of face value of debt | 172,242 | ||
Interest expense related to penalties from debt defaults | 939,705 | 207,116 | |
Amortization of debt discounts | 197,650 | 739,334 | |
(Gain) loss on settlement of debt | (30,032) | (186,374) | |
Increase in related party accrued payroll and interest | 215,196 | 209,695 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (61,142) | (40,025) | |
Prepaid expenses | 18,778 | ||
Device parts inventory | (79,571) | (3,154) | |
Accounts payable and accrued expenses | (6,636) | 113,533 | |
Accrued expense , related party | (2,955) | (10,967) | |
Customer deposits | 4,000 | ||
Balance owed WeSecure | (23,000) | (17,500) | |
Current portion of deferred variable payment obligation | 47,149 | 20,092 | |
Accrued interest payable | 1,568,291 | 704,111 | |
Advances payable | (11,043) | ||
Net cash used in operating activities | (1,446,075) | (1,407,531) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (77,577) | (26,825) | |
Proceeds of disposal of fixed assets | 1,000 | 11,000 | |
Net cash used in investing activities | (76,577) | (15,825) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from deferred variable payment obligation | 966,000 | 1,197,500 | |
Proceeds from loans payable | 1,213,623 | 681,877 | |
Repayment of loans payable | (76,079) | (411,036) | |
Net proceeds from convertible notes payable | 25,000 | ||
Cash on consolidation of RAD G | (284) | ||
Net borrowings (repayments) on loan payable - related party | (344,618) | (74,938) | |
Net cash provided by financing activities | 1,758,642 | 1,418,403 | |
Net change in cash | 235,990 | (4,953) | |
Cash, beginning of period | 13,307 | [1] | 21,192 |
Cash, end of period | 249,297 | 16,239 | |
Supplemental disclosure of cash and non-cash transactions: | |||
Cash paid for interest | 2,630 | 40,815 | |
Cash paid for income taxes | |||
Noncash investing and financing activities: | |||
Debt discount from derivative liabilities | 26,250 | ||
Transfer from device parts inventory to fixed assets | 106,256 | ||
Conversion of convertible notes, interest and fees to shares of common stock | 3,199,416 | 492,608 | |
Release of derivative liability on conversion of convertible notes payable | 2,601,903 | 493,405 | |
Settlement of convertible notes payable to accounts payable and accrued expenses | 75,000 | ||
Discount added to face value of loans | 85,000 | ||
Warrants issued with loans | 330,000 | ||
Capitalization of accrued interest to convertible notes payable and loans payable | 160,282 | ||
Opening balance sheet RAD G | $ 11,508 | ||
[1] | Derived from audited information |
GENERAL INFORMATION
GENERAL INFORMATION | 9 Months Ended |
Nov. 30, 2020 | |
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. 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 | 9 Months Ended |
Nov. 30, 2020 | |
Going Conern Disclosure Abstract | |
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 nine months ended November 30, 2020, the Company had negative cash flow from operating activities of $1,446,075. As of November 30, 2020, the Company has an accumulated deficit of $29,257,504, and negative working capital of $15,673,795. 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 | 9 Months Ended |
Nov. 30, 2020 | |
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 filed on July 28, 2020. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Robotic Assistance Devices, Inc., Robotic Assistance Devices Group, Inc. (see Note 16), Robotic Assistance Devices Mobile, 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 nine months ended November 30, 2020 are not necessarily indicative of the results that may be expected for the entire year. Use of Estimates In order to prepare financial statements in conformity with accounting principals generally accepted in the United States, management must make estimates, judgements and assumptions that affect the amounts reported in the financial statements and determine whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based. The most significant estimates included in these consolidated financial statements are those associated with the assumptions used to value derivative liabilities. 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 nine months ended November 30, 2020 and the year ended February 29, 2020. 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. As at both nine months ended November 30, 2020 and February 29, 2020 we had a valuation reserve of $160,000. 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. 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 7, 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 Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. ASC 740, Accounting for Income Taxes requires companies to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation is enacted. The Company’s gross deferred tax assets were revalued based on the reduction in the federal statutory tax rate from 35% to 21%. A corresponding offset has been made to the valuation allowance, and any potential other taxes arising due to the Tax Act will result in reductions to the Company’s net operating loss carryforward and valuation allowance. The Company will continue to analyze the Tax Act to assess its full effects on the Company’s financial results, including disclosures, for the Company’s fiscal year ending February 28, 2021, but the Company does not expect the Tax Act to have a material impact on the Company’s consolidated financial statements. Leases We adopted ASU No. 2016—02— Leases (topic 842) In addition, we elected the hindsight practical expedient to determine the lease term for existing leases. The standard did not materially impact our consolidated net loss, accumulated deficit, and had no impact on cash flows. Lease agreements are evaluated to determine if they are sales/finance leases meeting any of the following criteria at inception: (a) transfer of ownership of the underlying asset; (b) purchase option that is reasonably certain of being exercised; (c) the lease term is greater than a major part of the remaining estimated economic life of the underlying asset; or (d) if the present value of the sum of lease payments and any residual value guaranteed by the lessee that has not already been included in lease payments in accordance with ASC 842-10-30-5(f) equals or exceeds substantially all of the fair value of the underlying asset. If at its inception, a lease meets any of the four lease criteria above, the lease is classified by the Company as a sales/finance; 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 November 30, 2020 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 3,261,457 $ — $ — $ 3,261,457 February 29, 2020 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 6,890,688 $ — $ — $ 6,890,688 See Note 12 for specific inputs used in the multinomial lattice 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. Recently Adopted Accounting Pronouncements On March 1, 2019 the Company adopted ASU No. 2016-02, Leases (Topic 842) In September 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses Reclassifications Certain reclassifications have been made in the 2019 financial statements to conform to the 2020 presentation. These reclassifications have no effect on net loss for 2019. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Nov. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 4. 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 842 (which addresses lease accounting and was adopted on March 1, 2019). 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 Nine Months Ended Device rental activities $ 84,600 $ 214,803 Direct sales of goods and services 35,100 44,300 $ 119,700 $ 259,103 Three Months Ended Nine Months Ended Device rental activities $ 67,343 $ 152,267 Direct sales of goods and services 4,091 34,496 $ 71,434 $ 186,763 |
REVENUE EARNING DEVICES
REVENUE EARNING DEVICES | 9 Months Ended |
Nov. 30, 2020 | |
Revenue Earning Devices | |
REVENUE EARNING DEVICES | 5. REVENUE EARNING DEVICES Revenue earning devices consisted of the following: November 30, 2020 February 29, 2020 Revenue earning devices $ 435,199 $ 362,259 Less: Accumulated depreciation (197,138 ) (123,088 ) $ 238,061 $ 239,171 During the nine months ended November 30, 2020, the Company made total additions to revenue earning devices of $72,940. During the nine months ended November 30, 2019, the Company made total additions to revenue earning devices of $132,081 including $106,256 in inventory transfers. During the nine months ended November 30, 2019 the Company disposed of a revenue earning device having a net book value of $3,500 for $11,000 and recorded a gain on disposal of $7,500. Depreciation expense was $26,589 and $74,050 for the three and nine months ended November 30, 2020, respectively, and $22,107 and $57,662 for the three and nine months ended November 30, 2019, respectively. |
FIXED ASSETS
FIXED ASSETS | 9 Months Ended |
Nov. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | 6. FIXED ASSETS Fixed assets consisted of the following: November 30, 2020 February 29, 2020 Automobile $ 43,453 $ 41,953 Computer equipment 23,399 20,262 Office equipment 2,127 5,680 68,979 67,895 Less: Accumulated depreciation (64,212 ) (51,637 ) $ 4,767 $ 16,258 During the three months and nine months ended November 30, 2020 the Company made additions of $0 and $4,638. The Company made additions of $1,000 for both the three and nine months ended November 30, 2019.During the nine months ended November 30 ,2020, the Company disposed of office equipment having an original cost of $3,550 and a net book value of $1,553 for $1,000 in proceeds and recorded a $553 loss on disposal of fixed assets. Depreciation expense was $3,556 and $14,571 for the three and nine months ended November 30, 2020, respectively, and $5,484 and $16,397 for the three and nine months ended November 30, 2019, respectively. |
DEFERRED VARIABLE PAYMENT OBLIG
DEFERRED VARIABLE PAYMENT OBLIGATION | 9 Months Ended |
Nov. 30, 2020 | |
Deferred Variable Payment Obligation | |
DEFERRED VARIABLE PAYMENT OBLIGATION | 7. 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 turned 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 had agreed to pay the remaining balance in minimum $60,000 monthly installments, concluding November 30, 2019. At February 29, 2020 the investor had advanced the full $900,000. 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 turned 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 had agreed to pay the remaining balance in four monthly installments of $64,111 starting July 1, 2019. At February 29, 2020, $400,000 had 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 turned 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 February 29, 2020, $50,000 had been paid to the Company. These variable payments (Payments) are to be made either 30 days up to 90 days after the fiscal quarter depending on the agreement. If the Payments would deplete RAD’s available cash by a percentage between 1% and 31% depending on the rate Payment, 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. On November 18, 2019 the Company entered into another similar arrangement with the (February 1, 2019) investor above whereby the investor would advance up to $225,000 in exchange for a perpetual 2.25% rate Payment on the Company’s quarterly Revenues (commencing on quarter ending May 31, 2020). At May 31, 2020 the investor has fully funded this commitment. On December 30, 2019 the Company entered into another similar arrangement with a new investor whereby the investor would advance up to $100,000 in exchange for a perpetual 1.00% rate Payment on the Company’s quarterly Revenues (commencing quarter ended November 30, 2020). At May 31, 2020 the investor has advanced $50,000 with the remainder to be advanced no later than June 30, 2020. As the investor has only advanced the $50,000 the 1.00% rate Payment has been adjusted on a pro-rata basis to 0.50%. On April 22, 2020 the Company entered into another similar arrangement with the (first May 9, 2019) investor above whereby the investor would advance up to $100,000 in exchange for a perpetual 1.00% rate Payment on the Company’s quarterly Revenues. At May 31, 2020 the investor has fully funded this commitment. 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 30, 2020, 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 year end February 28, 2021 filing. On July 1, 2020 the Company entered into a similar agreement with the first investor whereby the investor would pay up to $800,000 in exchange for a perpetual 2.75% rate payment (Payment) on the Company’s reported quarterly revenue. These Payments are to be made 90 days after the fiscal quarter with the first payment being due no later than May 31, 2021. If the Payments would deplete RAD’s available cash by more than 20%, the payment may be deferred. The investor had agreed to pay $100,000 per month over an 8 month period with the first payment due July 2020 and the final payment no later than February 28, 2021. As at August 31, 2020 the investor had fully funded the $800,000 commitment On August 27, 2020 the Company and the first investor referred to above consolidated the three separate agreements of February 1, 2019 for $900,000, November 18, 2019 for $225,000 and July 1, 2020 for $800,000 into a new agreement for a total of $1,925,000. This new agreement is for similar terms as the above agreements save for the following: the rate payment is revised to 14.25% payable on revenues commencing the quarter ended August 31, 2020 and the Payments are secured by the assets of the Company. This interest may be secured by UCC filing but is subordinated to equipment financing on the products the Company leases to its customers. In summary of all agreements mentioned above if 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 43.77% 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 43.77% 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. For the nine months ended November 30, 2020, the Company has received $966,000 related to the deferred payment obligation bringing the balance to $2,525,000 at November 30, 2020. (February 29, 2020 -$1,559,000). The Payments will first become payable on June 30, 2019 (unless otherwise indicated) based on the quarterly Revenues for the quarter ended May 31, 2019 and will accrue every quarter thereafter. For the three months and nine months ended November 30, 2020 the Company accrued $18,455 and $57,149 in Payments. As of November 30, 2020, the Company has accrued a total of $77,683 in payments (February 29, 2020 -$30,534). |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 9 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | 8. CONVERTIBLE NOTES PAYABLE Convertible notes payable consisted of the following: Balance Balance Interest Conversion November 30, February 29, Issued Maturity Rate Rate per Share 2020 2020 January 31, 2013 February 28, 2017* X 10% $0.010 (3) $ 119,091 $ 119,091 May 31, 2013 November 30, 2016* X 10% $0.010 (3) 261,595 261,595 August 31, 2014 November 30, 2016* X 10% $0.002 (3) 355,652 355,652 November 30, 2014 November 30, 2016* X 10% $0.002 (3) 103,950 103,950 February 28, 2015 February 28, 2017* X 10% $0.001 (3) 63,357 63,357 May 31, 2015 August 31, 2017* X 10% $1.000 (3) 65,383 65,383 August 31, 2015 August 31, 2017* X 10% $0.300 (3) 91,629 91,629 November 30, 2015 November 30, 2018* X 10% $0.300 (3) 269,791 269,791 February 29, 2016 February 28, 2019* X 10% 60% discount (2) 95,245 95,245 May 31, 2016 May 31, 2019* X 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 XXX 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 XXX 8% 35% discount (2) 50,000 50,000 April 26, 2017 April 26, 2018* 0% $0.001 68 68 May 1, 2017 May 1, 2021 XXX 8% 35% discount (2) 50,000 50,000 May 4, 2017 May 4, 2018* 8% 40% discount (2) — 22,610 May 15, 2017 May 15, 2018* 0% $0.001 1,280 1,280 May 17, 2017 May 17, 2020* XXX 10% 40% discount (1) 85,000 85,000 June 7, 2017 June 7, 2018* 8% 40% discount (2) — 156,764 June 16, 2017 June 16, 2018* 0% $0.001 750 750 July 6, 2017 July 6, 2018 8% 40% discount (2) — 200,000 August 8, 2017 August 8, 2018 8% 40% discount (2) — 125,000 July 28, 2017 July 28, 2018* XX 15% 40% discount (2) 57,495 47,913 August 29, 2017 August 29, 2018* XX 15% 50% discount (2) 9,705 162,250 October 4, 2017 May 4, 2018* 8% 40% discount (2) 44,662 150,000 October 16, 2017 October 16, 2018* XX 15% 50% discount (2) 394,244 328,537 November 22, 2017 November 22, 2018* XX 15% 50% discount (2) 660,330 550,275 December 28, 2017 December 28, 2017 10% 40% discount (2) — 57,008 December 29, 2017 December 29, 2018* XX 15% 50% discount (2) 435,600 363,000 January 9, 2018 January 9, 2019* 8% 40% discount (2)(1) 79,508 79,508 January 30, 2018 January 30, 2019* XX 15% 50% discount (2)(1) 396,000 330,000 February 21, 2018 February 21, 2019* XX 15% 50% discount (2)(1) 279,591 330,000 March 14, 2018 March 14, 2019* 10% 40% discount (2) — 50,000 June 7, 2017 June 9, 2019 8% 40% discount (2) 200,000 200,000 April 9, 2018 April 9, 2019* XX 15% 50% discount (2) 72,600 60,500 March 21, 2017 March 21, 2018 8% 40% discount (2) — 40,000 April 20, 2018 April 20, 2019* 8% 40% discount (2) 97,659 97,659 May 2, 2018 December 2, 2018* 10% 40% discount (2) — 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 May 23, 2018 May 23, 2019 10% 50% discount (2) — 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) — 43,125 July 6, 2017 June 9, 2019 8% 40% discount (2) — 200,000 August 1, 2018 August 1, 2019* XX 15% 50% discount (2) 42,900 35,750 August 23, 2018 August 23, 2019* 8% 45% discount (2) — 70,123 September 13, 2018 June 30, 2019* 12% 45% discount (2) 9,200 9,200 September 17, 2018 March 17, 2019* 10% 50% discount (2) — 4,945 September 20, 2018 September 20, 2019* XX 15% 50% discount (2) 51,942 43,285 September 24, 2018 June 24, 2019* 8% 40% discount (2) 45,663 63,913 August 8, 2017 June 9, 2019 8% 40% discount (2) — 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 August 29, 2019 August 29, 2020* 8% 40% discount (2) 28,875 26,250 5,508,564 6,834,228 Less: current portion of convertible notes payable (5,508,564 ) (6,734,227 ) Less: discount on noncurrent convertible notes payable — (30,486 ) Noncurrent convertible notes payable, net of discount $ — $ 69,515 Current portion of convertible notes payable $ 5,508,564 $ 6,734,227 Less: discount on current portion of convertible notes payable (22,488 ) (120,602 ) Current portion of convertible notes payable, net of discount $ 5,486,076 $ 6,613,625 * The indicated notes were in default as of November 30, 2020. Default interest rate 24% X On December 10, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $1,460,794 and associated accrued interest of $1,593,544 totaling $3,054,338 in exchange for promissory notes dated December 10, 2020 totaling $3,054,338, maturing December 10, 2023 and bearing interest at 12% per annum and a warrant to purchase 250,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $550,000. These notes are secured by a general security charging all of RAD’s present and after-acquired property. XX On December 10, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $2,683,357 and associated accrued interest of $1,237,811 totaling $3,921,1688 in exchange for a promissory note dated December 10, 2020 of $3,921,1688, maturing December 10, 2023 and bearing interest at 12% per annum and a warrant to purchase 450,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $990,000. XXX On December 14, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $235,000 and associated accrued interest of $75,375 totaling $310,375 in exchange for a promissory note dated December 14, 2020 of $310,375, maturing December 10, 2023 and bearing interest at 12% per annum, a warrant to purchase 25,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $182,500 and 55 shares of Series F Preferred Shares having a fair value of $1,151,166. (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 November 30, 2020 and 2019, the Company incurred original issue discounts of $0 and $1,250 respectively, and debt discounts from derivative liabilities of $0 and $ 25,000, respectively, related to new convertible notes payable. During the three months ended November 30, 2020 and 2019, the Company recognized interest expense related to the amortization of debt discount of $0 and $56,171, respectively. The Company recorded penalty interest of $494,428 and $175,463 during the three months ended November 30, 2020 and November 30, 2019, respectively. During the nine months ended November 30, 2020 and 2019, the Company incurred original issue discounts of $0 and $1,250, respectively and derivative discounts of $0 and $26,250, respectively, related to new convertible notes payable. During the nine months ended November 30, 2020 and 2019, the Company recognized interest expense related to the amortization of debt discount of $23,957 and $739,334, respectively. The Company recorded penalty interest of $939,705 and $207,116 during the nine months ended November 30, 2020 and November 30, 2019, respectively. All the notes above are unsecured. As of November 30, 2020, the Company had total accrued interest payable of $3,486,043 all of which is classified as current. 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 nine months ended November 30, 2020, the Company also had the following convertible note activity: ● The company recorded $939,705 in penalties as increases on various notes, with a corresponding charge to interest. ● holders of certain convertible notes payable elected to convert a total of $2,094,934 of principal and $1,083,982 accrued interest, and $20,500 of fees into 1,889,155,010 shares of common stock. No gain or loss was recognized on conversions as these conversions occurred within the terms of the agreement that provided for conversion. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Nov. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 9. RELATED PARTY TRANSACTIONS For the nine months ended November 30, 2019, the Company had net repayments of $74,938 from its loan payable-related party. For the nine months ended November 30, 2020 the Company repaid net advances of $344,618. At November 30, 2020, the loan payable-related party was $1,189,155 and $1,310,358 at February 29, 2020. Included in the balance due to the related party at November 30, 2020 is $874,374 of deferred salary and interest, $594,000 of which bears interest at 12%. At February 29, 2020, included in the balance due to the related party is $656,334 of deferred salary and interest, $426,000 of which bears interest at 12%. The accrued interest included in loan at November 30, 2020 and November 30, 2019 was $84,418 and $34,917, respectively. During the three and nine months ended November 30, 2020 and 2019, the Company was charged $10,157 and $121,973, respectively for consulting fees for research and development to a company owned by a principal shareholder. During the three and nine months ended November 30, 2019 the Company was charged $90,090 and $47,238, respectively in consulting fees for research and development to a company owned by a principal shareholder. The company received a credit in the quarter ended May 31, 2019 that were a result of billing corrections of ($106,444) and after adjusting for this, would bring total charges in the nine months ended November 30, 2019 to $153,682. |
OTHER DEBT - VEHICLE LOAN
OTHER DEBT - VEHICLE LOAN | 9 Months Ended |
Nov. 30, 2020 | |
Other Debt - Vehicle Loan | |
OTHER DEBT - VEHICLE LOAN | 10. 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 made were $0 and $5,746 for the years ended February 29, 2020 and February 28, 2019, 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 both November 30, 2020 and February 29, 2020. For the first vehicle loan, the vehicle was retired in 2020, the proceeds of the disposal of $18,766 was applied against the balance of the loan with a $5,515 gain on the remaining asset value of $13,251. A balance of $16,944 remains on this vehicle loan at both November 30, 2020 and February 29, 2020 The remaining total balances of the amounts owed on the vehicle loans were $38,522 and $38,522 as of November 30, 2020 and February 28, 2020, respectively, of which all were classified as current. The Company ceased making payments of principal and interest in fiscal 2019 and the company has returned the remaining vehicles to the financing company for disposal. |
LOANS PAYABLE
LOANS PAYABLE | 9 Months Ended |
Nov. 30, 2020 | |
Loans Payable [Abstract] | |
LOANS PAYABLE | 11. LOANS PAYABLE Loans payable consisted of the following: Annual Date Maturity Description Principal Interest 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) 12,624 25% * August 16, 2018 October 1, 2018 Promissory note 10,000 25% * August 23, 2018 October 20, 2018 Promissory note (21) 15,000 20% * October 11, 2018 October 11, 2019 Promissory note (7) 17,000 20% * August 5, 2019 March 11, 2020 Factoring Agreement (4) 18,750 (4) * November 12, 2019 August 11, 2020 Factoring Agreement (10) 53,465 (10) * December 20, 2019 March 5, 2020 Factoring Agreement (14) 7,480 * October 17,2019 April 29, 2020 Factoring Agreement (11) — (11) September 27, 2019 April 4, 2020 Factoring Agreement (12) 8,857 (12) * January 31, 2019 June 30, 2019 Promissory note (2) 78,432 15% * January 24, 2019 January 24, 2021 Loan (8) 168,658 11% May 9, 2019 June 30, 2019 Promissory note (5) 7,850 15% * May 31, 2019 June 30, 2019 Promissory note (6) 86,567 15% * June 26, 2019 June 26, 2020 Promissory note (9) 79,104 15% * September 24, 2019 June 24 2020 Promissory note (13) 12,000 15% * January 30, 2020 January 30, 2021 Promissory note (15) 11,000 15% February 27, 2020 February 27, 2021 Promissory note (16) 5,000 15% April 16, 2020 April 16, 2021 Promissory note (17) 13,000 15% May 12, 2020 May 12, 2021 Promissory note (18) 43,500 15% May 22, 2020 May 22, 2021 Promissory note (19) 85,000 15% June 2, 2020 June 2, 2021 Promissory note (23) 62,000 15% June 9, 2020 June 9, 2021 Promissory note (24) 31,000 15% June 12, 2020 June 12, 2021 Promissory note (25) 50,000 15% June 16, 2020 June 16, 2021 Promissory note (26) 42,000 15% April 3, 2020 April 3, 2021 Promissory note (20) $ 27,697 20% August 31, 2020 August 31, 2021 Promissory note (22) 44,183 20% September 8, 2020 September 8, 2021 Promissory note (27) 7,380 20% September 15, 2020 September 15, 2022 Promissory note (28) 300,000 10% October 6, 2020 March 6, 2023 Promissory note (29) 150,000 12% November 12, 2020 November 12, 2023 Promissory note (30) 110,000 12% November 23, 2020 October 22, 2023 Promissory note (31) 65,000 15.5% November 23, 2020 November 23, 2023 Promissory note (32) 300,000 15% $ 1,980,547 Less current portion of loans payable (1,130,997 ) Less discount on loans payable (200,300 ) Loans payable $ 649,250 Current portion of loans payable $ 1,130,997 Less discount on current portion of loans payable (207,500 ) Loans payable net of discount $ 923,497 * 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 $12,376 has been repaid by the Company and no notices have been received. Accrued interest of $1,511 has been recorded. (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 $58,500, including payments of $8,275 made during the nine months ended November 30, 2020. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. (5) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $2,590. (6) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $28,567. (7) $6,000 repaid during the year ended February 29,2020 (8) $200,000 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 favor of the lender on a first priority basis subject to the following: the lender’s security in this respect shall be postponeable to security in favor of institutional financing obtained by RAD. Bonus interest of 10,304 has been accrued payable March 31, 2020. (9) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $26,104. (10) Total loan of $243,639, repayable $1,509 per week including fees and interest of $60,042. Original cash proceeds of $7,877, repayment of loans (5) and (13) totaling $15,732, partial repayment of fees of $5,566 all totaling $29,175, additional advances of $88,772 with remaining $65,551 to be advanced to the company over the remaining 18 weeks. The Company has repaid a total of $98,616, including payments of $20,827 made during the nine months ended November 30, 2020. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. (11) Total loan of $71,000, repayable $710 per business day including fees and interest of $21,000. Original proceeds of $50,000. Loan fully repaid at August 31, 2020. (12) Total loan of $59,960, repayable $590 per business day including fees and interest of $19,960. Original proceeds of $40,000 less repayment of $51,103, including payments of $6,036 made during the quarter ended August 31, 2020. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. (13) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $3,000. (14) Total loan of $12,400, repayable $1,240 per week including fees and interest of $2,400. Original cash proceeds of $10,000, repayments of $4,920. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. (15) The note may be pre-payable at any time. The note balance includes 22% original issue discount of $2,450. (16) The note may be pre-payable at any time. The note balance includes 24% original issue discount of $1,200. (17) The note may be pre-payable at any time. The note balance includes an original issue discount of $3,850. (18) The note may be pre-payable at any time. The note balance includes an original issue discount of $8,000. (19) The note may be pre-payable at any time. The note balance includes an original issue discount of $15,000. (20) $ 40,000 CDN loan, both principal and interest are due at maturity, if unpaid there is a 10% penalty on unpaid balance. By consent of all parties, lender may convert balance into Class F shares at $6,739 USD per share. (21) Principal repayable in one year. Interest repayable in 10 monthly instalments of $460 commencing January 11 ,2019 and secured by revenue earning devices having a net book value of at least $186,000. 25,000 repaid. (22) $ 60,000 CDN loan, principal is due at maturity, interest is payable commencing the third month after the loan over the remaining 10 months. If principal or interest unpaid there is a 10% penalty on unpaid balance. By consent of all parties, lender may convert balance into Class F shares at $6,739 USD per share. (23) The note may be pre-payable at any time. The note balance includes an original issue discount of $12,000. (24) The note may be pre-payable at any time. The note balance includes an original issue discount of $6,000. (25) The note may be pre-payable at any time. The note balance includes an original issue discount of $10,000. (26) The note may be pre-payable at any time. The note balance includes an original issue discount of $7,000. (27) $ 10,000 CDN loan, principal is due at maturity, interest is payable monthly commencing the third month after the loan over the remaining 10 months. If principal or interest unpaid there is a 10% penalty on unpaid balance. By consent of all parties, lender may convert balance into Class F shares at $6,739 USD per share. (28) The note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Interest payable monthly, principal due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. (29) Principal and interest repayable in 28 monthly instalments commencing December 6, 2020, the first 6 months at $2,000 per month, the remaining 22 payments at $ 8,500 per month. Secured by revenue earning devices. (30) The note may be pre-payable at any time. The note balance includes an original issue discount of $10,000 and was issued with warrant to purchase 70,000,000 shares at an exercise price of $0.00165 per share, with a 3 year term and having a fair value of $77,000 using Black-Scholes with assumptions described in Note 13. The discount and warrant are being amortized over the term of the loan. (31) Principal and interest repayable in 28 monthly instalments commencing December 6, 2020, the first 6 months at $2,000 per month, the remaining 22 payments at $ 8,500 per month. Secured by revenue earning devices. (32) The note may be pre-payable at any time. The note balance includes an original issue discount of $25,000 and was issued with warrant to purchase 230,000,000 shares at an exercise price of $0.00165 per share with a 3 year term and having a fair value of $253,000 using Black-Scholes with assumptions described in note 13. The discount and warrant are being amortized over the term of the loan. |
DERIVATIVE LIABILITES
DERIVATIVE LIABILITES | 9 Months Ended |
Nov. 30, 2020 | |
Derivative Liability [Abstract] | |
DERIVATIVE LIABILITES | 12. DERIVATIVE LIABILITIES As of November 30, 2020, 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 $3,261,457. The Company estimated the fair value of the derivative liabilities using the multinomial lattice model using the following key assumptions during the three months ended November 30, 2020: Strike price $0.002 - $0.0006 Fair value of Company common stock $0.004 - $0.0011 Dividend yield 0.00% Expected volatility 383.4% - 167.5% Risk free interest rate 0.09% - 0.07% Expected term (years) 0.50 - 0.13 During the three months ended November 30, 2020, and 2019, the Company released $873,673 and $109,987, respectively, of the Company’s derivative liability to equity due to the conversions of principal and interest on the associated notes. During the nine months ended November 30, 2020, and 2019, the Company released $2,601,903 and $493,405, 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 nine months ended November 30, 2020 were as follows: Balance as of February 29, 2020 $ 6,890,688 Release of derivative liability on conversion of convertible notes payable (2,601,903 ) Change in fair value of derivative liabilities (1,027,328 ) Balance as of November 30, 2020 $ 3,261,457 |
SHAREHOLDERS' EQUITY (DEFICIT)
SHAREHOLDERS' EQUITY (DEFICIT) | 9 Months Ended |
Nov. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY (DEFICIT) | 13. STOCKHOLDERS’ EQUITY (DEFICIT) Summary of Common Stock Activity On March 27, 2020, the Company undertook a 10,000:1 reverse stock split and on August 24, 2018, the Company undertook a 100:1 reverse stock split. The share capital has been retrospectively adjusted accordingly to reflect this reverse stock split, except for the conversion price of certain convertible notes as the conversion price is not subject to adjustment from forward and reverse stock splits (see Note 8). During the nine months ended November 30, 2020, the Company issued 1,889,155,010 shares of its common stock for the conversion of debt and related interest and fees totaling $3,199,416 including $2,094,934 of principal, $1,083,982 interest, $20,500 in fees in connection with debt converted during the period, as well as the release of the related derivative liability (see Note 12). Summary of Preferred Stock Activity On July 22, 2020 the board of directors passed a resolution whereby the sole director agreed to return for cancellation, 816 of his 1000 Series F preferred shares to the Company. On December 1, 2020 the company issued 110 Series F shares having a fair value of $362,084 to a consultant for services previously rendered which was recorded as professional fees with a corresponding adjustment to accrued liabilities. Summary of Warrant Activity Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at March 1, 2020 2,043 $106.00 1.81 Issued 300,000,000 $0.0016 2.98 Exercised — — — Forfeited and cancelled — — — Outstanding at November 30, 2020 300,002,043 $0.0024 2.98 For the nine months ended November 30, 2020 and November 30, 2019, the Company recorded a total of $0 and $0, respectively, to stock-based compensation for options and warrants with a corresponding adjustment to additional paid-in capital. During the nine months ended November 30, 2020 the Company issued warrants to purchase a total 300,000,000 common shares along with promissory notes (see Note 11) recorded as a discount and amortized over the respective loan term with a corresponding adjustment to paid in capital. These warrants (a) have an aggregate grant date fair value of $300,000 based on the Black-Scholes Option Pricing model with the following assumptions: Strike price $.00165 Fair value of Company’s common stock $0.0011 Dividend yield 0.00% Expected volatility 404.8% Risk free interest rate 0.39% - 0.41% Expected term (years) 3.00 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Nov. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. 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 9) filed lawsuit in California Superior Court seeking damages for this non-payment of this balance of WeSecure assets sold totaling $25,000, unpaid consulting fees payable to the two principals through 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 at February 28, 2019. At November 30, 2020 an outstanding balance of $139,500 remains. As of November 30, 2020 the Company paid $40,500. As of this filing the November 2019 through July 2020 instalments are in arrears. The Company repaid $10,000 towards these arrears in the three months ended November 30, 2020 included in the total payments above. The related legal costs are expensed as incurred. Operating Lease 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 which commenced 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, San Juan Capistrano, California, for a nominal fee of $264/yr. 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 $3,000 and $14,800 for the three and nine months ended November 30, 2020, respectively and $2,000 and $6,000 for the three and nine months ended November 30, 2019, respectively. At November 30, 2020 the Company had no 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 | 9 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | 15. EARNINGS (LOSS) PER SHARE The net income (loss) per common share amounts were determined as follows: For the Three Months Ended For the Nine Months Ended November 30 November 30 2020 2019 2020 2019 Numerator: Net income (loss) available to common shareholders $ 3,408,305 $ (3,396,031 ) $ (3,634,660 ) $ (3,080,659 ) Effect of common stock equivalents Add: interest expense on convertible debt 479,387 225,109 1,503,148 608,965 Add Penalty interest on convertible debt 494,428 — 939,705 — Add (less) loss (gain) on change of derivative liabilities (5,354,622 ) 2,108,596 (1,027,328 ) (367,971 ) Net income (loss) adjusted for common stock equivalents (972,502 ) (1,062,326 ) (2,219,135 ) (2,839,665 ) Denominator: Weighted average shares - basic 679,536,441 312,730 470,273,731 185,596 Net income (loss) per share – basic $ 0.00 $ (3.40 ) $ 0.00 $ (15.30 ) Dilutive effect of common stock equivalents: Convertible Debt — — — — Preferred shares — — — — Warrants — — — — — — — — Denominator: Weighted average shares – diluted 679,536,441 312,730 470,273,731 185,596 Net income (loss) per share – diluted $ 0.00 $ (3.40 ) $ 0.00 $ (15.30 ) The anti-dilutive shares of common stock equivalents for the three and nine months ended November 30, 2020 and November 30, 2019 were as follows: For the Three Months Ended For the Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Convertible notes and accrued interest 13,732,671,277 13,852,676 13,732,671,277 13,852,676 Convertible Class F Preferred shares 6,519,028,347 1,328,832 6,519,028,347 1,328,832 Warrants 300,002,043 2,043 300,002,043 2,043 Total 20,551,701,667 15,183,551 20,551,701,667 15,183,551 |
ROBOTIC ASSISTANCE DEVICES GROU
ROBOTIC ASSISTANCE DEVICES GROUP, INC. CONSOLIDATION | 9 Months Ended |
Nov. 30, 2020 | |
Robotic Assistance Devices Group Inc Consolidation | |
ROBOTIC ASSISTANCE DEVICES GROUP, INC. CONSOLIDATION | 16. ROBOTIC ASSISTANCE DEVICES GROUP, INC. CONSOLIDATION In the quarter ended August 31, 2020, one of Robotics Assistance Devices, Inc.’s (“RAD”) lenders entered receivership under the US Bankruptcy Courts supervision. The trustee assigned to the bankruptcy estate used powers granted under the loan agreement with RAD to take over and control RAD’s bank accounts which allowed the trustee to transfer all funds available to the bankruptcy estate in partial repayment of the loan, which amounted to approximately $50,200. Because the trustee of the bankruptcy estate maintained effective control of RAD’s bank accounts, one member of Management transferred control of an entity under his control to the Company in order to transfer the conduct of RAD business to the new entity, Robotics Assistance Devices Group, Inc. (“RAD G”) Because of this, the Company has consolidated RAD G beginning on June 1, 2020. The table below shows the assets and liabilities consolidated on June 1, 2020 that were contributed: Cash $ (283 ) Accounts receivable 450 Other liabilities (11,675 ) Net liabilities contributed $ (11,508 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Nov. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS Subsequent to November 30, 2020 through to January 12, 2021: Convertible note holders converted $161,480 of principal and $100,471 interest into 436,567,860 shares of the Company’s common stock. On December 1, 2020 the Company issued 110 Series F Preferred Shares to a consultant for services rendered at a fair value of $362,084. The company recorded this as payment for accrued liabilities with a corresponding adjustment to paid in capital. On December 10, 2020 the Company settled convertible notes (see Note 8) totaling $1,460,794 and associated accrued interest of $1,593,544 totaling $3,054,338 in exchange for promissory notes dated December 10, 2020 totaling $3,054,338, maturing December 10, 2023 and bearing interest at 12% per annum and a warrant to purchase 250,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $550,000.These notes are secured by a general security charging all of RAD’s present and after-acquired property. On December 10, 2020 the Company settled additional convertible notes (see Note 8) totaling $2,683,357 and associated accrued interest of $1,237,811 totaling $3,921,1688 in exchange for a promissory note dated December 10, 2020 of $3,921,168, maturing December 10, 2023 and bearing interest at 12% per annum and a warrant to purchase 450,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $990,000. On December 10, 2020 RAD Inc. entered into a 15 month lease commencing December 18, 2020 and ending March 31, 2022. The monthly lease payments are $3,859 with a$3,859 security deposit. The Company will account for this according to ASC 842. On December 14, 2020 the Company settled additional convertible notes (see Note 8) totaling $235,000 and associated accrued interest of $75,375 totaling $310,375 in exchange for a promissory note dated December 14, 2020 of $310,375, maturing December 10, 2023 and bearing interest at 12% per annum , a warrant to purchase 25,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $182,500 and 55 shares of Series F Preferred Shares having a fair value of $ 1,151,166. On December 28, 2020 and January 1, 2021 a warrant holder exercised 145,741.573 and 131,345,178 warrant shares through cashless exercise and received 119,000,000 and 125,000,000 shares, respectively. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Nov. 30, 2020 | |
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 filed on July 28, 2020. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Robotic Assistance Devices, Inc., Robotic Assistance Devices Group, Inc. (see Note 16), Robotic Assistance Devices Mobile, 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 nine months ended November 30, 2020 are not necessarily indicative of the results that may be expected for the entire year. |
Use of Estimates | Use of Estimates In order to prepare financial statements in conformity with accounting principals generally accepted in the United States, management must make estimates, judgements and assumptions that affect the amounts reported in the financial statements and determine whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based. The most significant estimates included in these consolidated financial statements are those associated with the assumptions used to value derivative liabilities. |
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 nine months ended November 30, 2020 and the year ended February 29, 2020. |
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. As at both nine months ended November 30, 2020 and February 29, 2020 we had a valuation reserve of $160,000. |
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. 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 7, 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 Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. ASC 740, Accounting for Income Taxes requires companies to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation is enacted. The Company’s gross deferred tax assets were revalued based on the reduction in the federal statutory tax rate from 35% to 21%. A corresponding offset has been made to the valuation allowance, and any potential other taxes arising due to the Tax Act will result in reductions to the Company’s net operating loss carryforward and valuation allowance. The Company will continue to analyze the Tax Act to assess its full effects on the Company’s financial results, including disclosures, for the Company’s fiscal year ending February 28, 2021, but the Company does not expect the Tax Act to have a material impact on the Company’s consolidated financial statements. |
Leases | Leases We adopted ASU No. 2016—02— Leases (topic 842) In addition, we elected the hindsight practical expedient to determine the lease term for existing leases. The standard did not materially impact our consolidated net loss, accumulated deficit, and had no impact on cash flows. Lease agreements are evaluated to determine if they are sales/finance leases meeting any of the following criteria at inception: (a) transfer of ownership of the underlying asset; (b) purchase option that is reasonably certain of being exercised; (c) the lease term is greater than a major part of the remaining estimated economic life of the underlying asset; or (d) if the present value of the sum of lease payments and any residual value guaranteed by the lessee that has not already been included in lease payments in accordance with ASC 842-10-30-5(f) equals or exceeds substantially all of the fair value of the underlying asset. If at its inception, a lease meets any of the four lease criteria above, the lease is classified by the Company as a sales/finance; 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 November 30, 2020 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 3,261,457 $ — $ — $ 3,261,457 February 29, 2020 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 6,890,688 $ — $ — $ 6,890,688 See Note 12 for specific inputs used in the multinomial lattice 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On March 1, 2019 the Company adopted ASU No. 2016-02, Leases (Topic 842) In September 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses |
Reclassification | Reclassifications Certain reclassifications have been made in the 2019 financial statements to conform to the 2020 presentation. These reclassifications have no effect on net loss for 2019. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of fixed assets lives | Minor replacements and maintenance and repairs which do not improve or extend asset lives are expensed currently. 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 November 30, 2020 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 3,261,457 $ — $ — $ 3,261,457 February 29, 2020 Liabilities Derivative liability – conversion features pursuant to convertible notes payable $ 6,890,688 $ — $ — $ 6,890,688 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
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 Nine Months Ended Device rental activities $ 84,600 $ 214,803 Direct sales of goods and services 35,100 44,300 $ 119,700 $ 259,103 Three Months Ended Nine Months Ended Device rental activities $ 67,343 $ 152,267 Direct sales of goods and services 4,091 34,496 $ 71,434 $ 186,763 |
REVENUE EARNING DEVICES (Tables
REVENUE EARNING DEVICES (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Revenue Earning Devices | |
Schedule of revenue earning devices | Revenue earning devices consisted of the following: November 30, 2020 February 29, 2020 Revenue earning devices $ 435,199 $ 362,259 Less: Accumulated depreciation (197,138 ) (123,088 ) $ 238,061 $ 239,171 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | Fixed assets consisted of the following: November 30, 2020 February 29, 2020 Automobile $ 43,453 $ 41,953 Computer equipment 23,399 20,262 Office equipment 2,127 5,680 68,979 67,895 Less: Accumulated depreciation (64,212 ) (51,637 ) $ 4,767 $ 16,258 |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes payable | Convertible notes payable consisted of the following: Balance Balance Interest Conversion November 30, February 29, Issued Maturity Rate Rate per Share 2020 2020 January 31, 2013 February 28, 2017* X 10% $0.010 (3) $ 119,091 $ 119,091 May 31, 2013 November 30, 2016* X 10% $0.010 (3) 261,595 261,595 August 31, 2014 November 30, 2016* X 10% $0.002 (3) 355,652 355,652 November 30, 2014 November 30, 2016* X 10% $0.002 (3) 103,950 103,950 February 28, 2015 February 28, 2017* X 10% $0.001 (3) 63,357 63,357 May 31, 2015 August 31, 2017* X 10% $1.000 (3) 65,383 65,383 August 31, 2015 August 31, 2017* X 10% $0.300 (3) 91,629 91,629 November 30, 2015 November 30, 2018* X 10% $0.300 (3) 269,791 269,791 February 29, 2016 February 28, 2019* X 10% 60% discount (2) 95,245 95,245 May 31, 2016 May 31, 2019* X 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 XXX 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 XXX 8% 35% discount (2) 50,000 50,000 April 26, 2017 April 26, 2018* 0% $0.001 68 68 May 1, 2017 May 1, 2021 XXX 8% 35% discount (2) 50,000 50,000 May 4, 2017 May 4, 2018* 8% 40% discount (2) — 22,610 May 15, 2017 May 15, 2018* 0% $0.001 1,280 1,280 May 17, 2017 May 17, 2020* XXX 10% 40% discount (1) 85,000 85,000 June 7, 2017 June 7, 2018* 8% 40% discount (2) — 156,764 June 16, 2017 June 16, 2018* 0% $0.001 750 750 July 6, 2017 July 6, 2018 8% 40% discount (2) — 200,000 August 8, 2017 August 8, 2018 8% 40% discount (2) — 125,000 July 28, 2017 July 28, 2018* XX 15% 40% discount (2) 57,495 47,913 August 29, 2017 August 29, 2018* XX 15% 50% discount (2) 9,705 162,250 October 4, 2017 May 4, 2018* 8% 40% discount (2) 44,662 150,000 October 16, 2017 October 16, 2018* XX 15% 50% discount (2) 394,244 328,537 November 22, 2017 November 22, 2018* XX 15% 50% discount (2) 660,330 550,275 December 28, 2017 December 28, 2017 10% 40% discount (2) — 57,008 December 29, 2017 December 29, 2018* XX 15% 50% discount (2) 435,600 363,000 January 9, 2018 January 9, 2019* 8% 40% discount (2)(1) 79,508 79,508 January 30, 2018 January 30, 2019* XX 15% 50% discount (2)(1) 396,000 330,000 February 21, 2018 February 21, 2019* XX 15% 50% discount (2)(1) 279,591 330,000 March 14, 2018 March 14, 2019* 10% 40% discount (2) — 50,000 June 7, 2017 June 9, 2019 8% 40% discount (2) 200,000 200,000 April 9, 2018 April 9, 2019* XX 15% 50% discount (2) 72,600 60,500 March 21, 2017 March 21, 2018 8% 40% discount (2) — 40,000 April 20, 2018 April 20, 2019* 8% 40% discount (2) 97,659 97,659 May 2, 2018 December 2, 2018* 10% 40% discount (2) — 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 May 23, 2018 May 23, 2019 10% 50% discount (2) — 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) — 43,125 July 6, 2017 June 9, 2019 8% 40% discount (2) — 200,000 August 1, 2018 August 1, 2019* XX 15% 50% discount (2) 42,900 35,750 August 23, 2018 August 23, 2019* 8% 45% discount (2) — 70,123 September 13, 2018 June 30, 2019* 12% 45% discount (2) 9,200 9,200 September 17, 2018 March 17, 2019* 10% 50% discount (2) — 4,945 September 20, 2018 September 20, 2019* XX 15% 50% discount (2) 51,942 43,285 September 24, 2018 June 24, 2019* 8% 40% discount (2) 45,663 63,913 August 8, 2017 June 9, 2019 8% 40% discount (2) — 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 August 29, 2019 August 29, 2020* 8% 40% discount (2) 28,875 26,250 5,508,564 6,834,228 Less: current portion of convertible notes payable (5,508,564 ) (6,734,227 ) Less: discount on noncurrent convertible notes payable — (30,486 ) Noncurrent convertible notes payable, net of discount $ — $ 69,515 Current portion of convertible notes payable $ 5,508,564 $ 6,734,227 Less: discount on current portion of convertible notes payable (22,488 ) (120,602 ) Current portion of convertible notes payable, net of discount $ 5,486,076 $ 6,613,625 * The indicated notes were in default as of November 30, 2020. Default interest rate 24% X On December 10, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $1,460,794 and associated accrued interest of $1,593,544 totaling $3,054,338 in exchange for promissory notes dated December 10, 2020 totaling $3,054,338, maturing December 10, 2023 and bearing interest at 12% per annum and a warrant to purchase 250,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $550,000. These notes are secured by a general security charging all of RAD’s present and after-acquired property. XX On December 10, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $2,683,357 and associated accrued interest of $1,237,811 totaling $3,921,1688 in exchange for a promissory note dated December 10, 2020 of $3,921,1688, maturing December 10, 2023 and bearing interest at 12% per annum and a warrant to purchase 450,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $990,000. XXX On December 14, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $235,000 and associated accrued interest of $75,375 totaling $310,375 in exchange for a promissory note dated December 14, 2020 of $310,375, maturing December 10, 2023 and bearing interest at 12% per annum, a warrant to purchase 25,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $182,500 and 55 shares of Series F Preferred Shares having a fair value of $1,151,166. (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) | 9 Months Ended |
Nov. 30, 2020 | |
Loans Payable [Abstract] | |
Schedule of loans payable | Loans payable consisted of the following: Annual Date Maturity Description Principal Interest 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) 12,624 25% * August 16, 2018 October 1, 2018 Promissory note 10,000 25% * August 23, 2018 October 20, 2018 Promissory note (21) 15,000 20% * October 11, 2018 October 11, 2019 Promissory note (7) 17,000 20% * August 5, 2019 March 11, 2020 Factoring Agreement (4) 18,750 (4) * November 12, 2019 August 11, 2020 Factoring Agreement (10) 53,465 (10) * December 20, 2019 March 5, 2020 Factoring Agreement (14) 7,480 * October 17,2019 April 29, 2020 Factoring Agreement (11) — (11) September 27, 2019 April 4, 2020 Factoring Agreement (12) 8,857 (12) * January 31, 2019 June 30, 2019 Promissory note (2) 78,432 15% * January 24, 2019 January 24, 2021 Loan (8) 168,658 11% May 9, 2019 June 30, 2019 Promissory note (5) 7,850 15% * May 31, 2019 June 30, 2019 Promissory note (6) 86,567 15% * June 26, 2019 June 26, 2020 Promissory note (9) 79,104 15% * September 24, 2019 June 24 2020 Promissory note (13) 12,000 15% * January 30, 2020 January 30, 2021 Promissory note (15) 11,000 15% February 27, 2020 February 27, 2021 Promissory note (16) 5,000 15% April 16, 2020 April 16, 2021 Promissory note (17) 13,000 15% May 12, 2020 May 12, 2021 Promissory note (18) 43,500 15% May 22, 2020 May 22, 2021 Promissory note (19) 85,000 15% June 2, 2020 June 2, 2021 Promissory note (23) 62,000 15% June 9, 2020 June 9, 2021 Promissory note (24) 31,000 15% June 12, 2020 June 12, 2021 Promissory note (25) 50,000 15% June 16, 2020 June 16, 2021 Promissory note (26) 42,000 15% April 3, 2020 April 3, 2021 Promissory note (20) $ 27,697 20% August 31, 2020 August 31, 2021 Promissory note (22) 44,183 20% September 8, 2020 September 8, 2021 Promissory note (27) 7,380 20% September 15, 2020 September 15, 2022 Promissory note (28) 300,000 10% October 6, 2020 March 6, 2023 Promissory note (29) 150,000 12% November 12, 2020 November 12, 2023 Promissory note (30) 110,000 12% November 23, 2020 October 22, 2023 Promissory note (31) 65,000 15.5% November 23, 2020 November 23, 2023 Promissory note (32) 300,000 15% $ 1,980,547 Less current portion of loans payable (1,130,997 ) Less discount on loans payable (200,300 ) Loans payable $ 649,250 Current portion of loans payable $ 1,130,997 Less discount on current portion of loans payable (207,500 ) Loans payable net of discount $ 923,497 * 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 $12,376 has been repaid by the Company and no notices have been received. Accrued interest of $1,511 has been recorded. (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 $58,500, including payments of $8,275 made during the nine months ended November 30, 2020. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. (5) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $2,590. (6) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $28,567. (7) $6,000 repaid during the year ended February 29,2020 (8) $200,000 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 favor of the lender on a first priority basis subject to the following: the lender’s security in this respect shall be postponeable to security in favor of institutional financing obtained by RAD. Bonus interest of 10,304 has been accrued payable March 31, 2020. (9) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $26,104. (10) Total loan of $243,639, repayable $1,509 per week including fees and interest of $60,042. Original cash proceeds of $7,877, repayment of loans (5) and (13) totaling $15,732, partial repayment of fees of $5,566 all totaling $29,175, additional advances of $88,772 with remaining $65,551 to be advanced to the company over the remaining 18 weeks. The Company has repaid a total of $98,616, including payments of $20,827 made during the nine months ended November 30, 2020. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. (11) Total loan of $71,000, repayable $710 per business day including fees and interest of $21,000. Original proceeds of $50,000. Loan fully repaid at August 31, 2020. (12) Total loan of $59,960, repayable $590 per business day including fees and interest of $19,960. Original proceeds of $40,000 less repayment of $51,103, including payments of $6,036 made during the quarter ended August 31, 2020. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. (13) The note may be pre-payable at any time. The note balance includes 33% original issue discount of $3,000. (14) Total loan of $12,400, repayable $1,240 per week including fees and interest of $2,400. Original cash proceeds of $10,000, repayments of $4,920. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. (15) The note may be pre-payable at any time. The note balance includes 22% original issue discount of $2,450. (16) The note may be pre-payable at any time. The note balance includes 24% original issue discount of $1,200. (17) The note may be pre-payable at any time. The note balance includes an original issue discount of $3,850. (18) The note may be pre-payable at any time. The note balance includes an original issue discount of $8,000. (19) The note may be pre-payable at any time. The note balance includes an original issue discount of $15,000. (20) $ 40,000 CDN loan, both principal and interest are due at maturity, if unpaid there is a 10% penalty on unpaid balance. By consent of all parties, lender may convert balance into Class F shares at $6,739 USD per share. (21) Principal repayable in one year. Interest repayable in 10 monthly instalments of $460 commencing January 11 ,2019 and secured by revenue earning devices having a net book value of at least $186,000. 25,000 repaid. (22) $ 60,000 CDN loan, principal is due at maturity, interest is payable commencing the third month after the loan over the remaining 10 months. If principal or interest unpaid there is a 10% penalty on unpaid balance. By consent of all parties, lender may convert balance into Class F shares at $6,739 USD per share. (23) The note may be pre-payable at any time. The note balance includes an original issue discount of $12,000. (24) The note may be pre-payable at any time. The note balance includes an original issue discount of $6,000. (25) The note may be pre-payable at any time. The note balance includes an original issue discount of $10,000. (26) The note may be pre-payable at any time. The note balance includes an original issue discount of $7,000. (27) $ 10,000 CDN loan, principal is due at maturity, interest is payable monthly commencing the third month after the loan over the remaining 10 months. If principal or interest unpaid there is a 10% penalty on unpaid balance. By consent of all parties, lender may convert balance into Class F shares at $6,739 USD per share. (28) The note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Interest payable monthly, principal due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. (29) Principal and interest repayable in 28 monthly instalments commencing December 6, 2020, the first 6 months at $2,000 per month, the remaining 22 payments at $ 8,500 per month. Secured by revenue earning devices. (30) The note may be pre-payable at any time. The note balance includes an original issue discount of $10,000 and was issued with warrant to purchase 70,000,000 shares at an exercise price of $0.00165 per share, with a 3 year term and having a fair value of $77,000 using Black-Scholes with assumptions described in Note 13. The discount and warrant are being amortized over the term of the loan. (31) Principal and interest repayable in 28 monthly instalments commencing December 6, 2020, the first 6 months at $2,000 per month, the remaining 22 payments at $ 8,500 per month. Secured by revenue earning devices. (32) The note may be pre-payable at any time. The note balance includes an original issue discount of $25,000 and was issued with warrant to purchase 230,000,000 shares at an exercise price of $0.00165 per share with a 3 year term and having a fair value of $253,000 using Black-Scholes with assumptions described in note 13. The discount and warrant are being amortized over the term of the loan. |
DERIVATIVE LIABILITES (Tables)
DERIVATIVE LIABILITES (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
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 three months ended November 30, 2020: Strike price $0.002 - $0.0006 Fair value of Company common stock $0.004 - $0.0011 Dividend yield 0.00% Expected volatility 383.4% - 167.5% Risk free interest rate 0.09% - 0.07% Expected term (years) 0.50 - 0.13 |
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 nine months ended November 30, 2020 were as follows: Balance as of February 29, 2020 $ 6,890,688 Release of derivative liability on conversion of convertible notes payable (2,601,903 ) Change in fair value of derivative liabilities (1,027,328 ) Balance as of November 30, 2020 $ 3,261,457 |
SHAREHOLDERS' EQUITY (DEFICIT)
SHAREHOLDERS' EQUITY (DEFICIT) (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule for summary of stock option activity | Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at March 1, 2020 2,043 $106.00 1.81 Issued 300,000,000 $0.0016 2.98 Exercised — — — Forfeited and cancelled — — — Outstanding at November 30, 2020 300,002,043 $0.0024 2.98 |
Schedule for black-Scholes Option Pricing model | Black-Scholes Option Pricing model with the following assumptions: Strike price $.00165 Fair value of Company’s common stock $0.0011 Dividend yield 0.00% Expected volatility 404.8% Risk free interest rate 0.39% - 0.41% Expected term (years) 3.00 |
COMMITMENTS & CONTINGENCIES (Ta
COMMITMENTS & CONTINGENCIES (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
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) | 9 Months Ended |
Nov. 30, 2020 | |
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 Nine Months Ended November 30 November 30 2020 2019 2020 2019 Numerator: Net income (loss) available to common shareholders $ 3,408,305 $ (3,396,031 ) $ (3,634,660 ) $ (3,080,659 ) Effect of common stock equivalents Add: interest expense on convertible debt 479,387 225,109 1,503,148 608,965 Add Penalty interest on convertible debt 494,428 — 939,705 — Add (less) loss (gain) on change of derivative liabilities (5,354,622 ) 2,108,596 (1,027,328 ) (367,971 ) Net income (loss) adjusted for common stock equivalents (972,502 ) (1,062,326 ) (2,219,135 ) (2,839,665 ) Denominator: Weighted average shares - basic 679,536,441 312,730 470,273,731 185,596 Net income (loss) per share – basic $ 0.00 $ (3.40 ) $ 0.00 $ (15.30 ) Dilutive effect of common stock equivalents: Convertible Debt — — — — Preferred shares — — — — Warrants — — — — — — — — Denominator: Weighted average shares – diluted 679,536,441 312,730 470,273,731 185,596 Net income (loss) per share – diluted $ 0.00 $ (3.40 ) $ 0.00 $ (15.30 ) |
Schedule of anti-dilutive shares | The anti-dilutive shares of common stock equivalents for the three and nine months ended November 30, 2020 and November 30, 2019 were as follows: For the Three Months Ended For the Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Convertible notes and accrued interest 13,732,671,277 13,852,676 13,732,671,277 13,852,676 Convertible Class F Preferred shares 6,519,028,347 1,328,832 6,519,028,347 1,328,832 Warrants 300,002,043 2,043 300,002,043 2,043 Total 20,551,701,667 15,183,551 20,551,701,667 15,183,551 |
ROBOTIC ASSISTANCE DEVICES GR_2
ROBOTIC ASSISTANCE DEVICES GROUP, INC. CONSOLIDATION (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Robotic Assistance Devices Group Inc Consolidation | |
Schedule of assets and liabilities consolidated | The table below shows the assets and liabilities consolidated on June 1, 2020 that were contributed: Cash $ (283 ) Accounts receivable 450 Other liabilities (11,675 ) Net liabilities contributed $ (11,508 ) |
GENERAL INFORMATION (Details Na
GENERAL INFORMATION (Details Narrative) - shares | Aug. 28, 2017 | Nov. 30, 2020 | Feb. 29, 2020 | Jul. 25, 2017 |
Common stock, issued | 1,889,573,434 | 418,415 | ||
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 ($) | 9 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Feb. 29, 2020 | [1] | |
Going Conern Disclosure Abstract | ||||
Cash flow from operating activities | $ (1,446,075) | $ (1,407,531) | ||
Accumulated deficit | (29,257,504) | $ (25,622,843) | ||
Working capital | $ 15,673,795 | |||
[1] | Derived from audited information |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) | 9 Months Ended |
Nov. 30, 2020 | |
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 ($) | Nov. 30, 2020 | Feb. 29, 2020 |
Liabilities | ||
Derivative liability - conversion features pursuant to convertible notes payable | $ 3,261,457 | $ 6,890,688 |
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 | $ 3,261,457 | $ 6,890,688 |
ACCOUNTING POLICIES (Details Na
ACCOUNTING POLICIES (Details Narrative) - USD ($) | Dec. 22, 2017 | Nov. 30, 2020 |
Inventory valuation reserve | $ 160,000 | |
Revenue earning devices, useful life | 48 months | |
federal statutory tax rate | 35.00% | |
Reduction in the federal statutory tax rate | 21.00% | |
Minimum [Member] | ||
Fixed assets, useful life | 3 years | |
Maximum [Member] | ||
Fixed assets, useful life | 5 years |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Device rental activities | $ 84,600 | $ 67,343 | $ 214,803 | $ 152,267 |
Direct sales of goods and services | 35,100 | 4,091 | 44,300 | 34,496 |
Total revenue from contracts with customers | $ 119,700 | $ 71,434 | $ 259,103 | $ 186,763 |
REVENUE EARNING DEVICES (Detail
REVENUE EARNING DEVICES (Details) - USD ($) | Nov. 30, 2020 | Feb. 29, 2020 |
Revenue Earning Devices | ||
Revenue earning devices | $ 435,199 | $ 362,259 |
Less: Accumulated depreciation | (197,138) | (123,088) |
Total revenue earning devices | $ 238,061 | $ 239,171 |
REVENUE EARNING DEVICES (Deta_2
REVENUE EARNING DEVICES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Revenue Earning Devices | ||||
Revenue earning devices, depreciation expense | $ 26,589 | $ 22,107 | $ 74,050 | $ 57,662 |
Total additions to revenue earning devices | 72,940 | $ 132,081 | ||
Inventory transfers | 106,256 | 106,256 | ||
Total disposed revenue earning device | 11,000 | 11,000 | ||
Net book value | 3,500 | 3,500 | ||
Gain on disposal | $ 7,500 | $ 7,500 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) | Nov. 30, 2020 | Feb. 29, 2020 | |
Gross | $ 68,979 | $ 67,895 | |
Less: Accumulated depreciation | (64,212) | (51,637) | |
Fixed assets, net of accumulated depreciation | 4,767 | 16,258 | [1] |
Automobile [Member] | |||
Gross | 43,453 | 41,953 | |
Computer Equipment [Member] | |||
Gross | 23,399 | 20,262 | |
Office Equipment [Member] | |||
Gross | $ 2,127 | $ 5,680 | |
[1] | Derived from audited information |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Depreciation expense | $ 3,556 | $ 5,484 | $ 14,571 | $ 16,397 |
Additions to fixed assets | $ 0 | $ 1,000 | 4,638 | 1,000 |
Proceeds of disposal of fixed assets | 1,000 | $ 11,000 | ||
Office Equipment [Member] | ||||
Original cost | 3,550 | |||
Net book value | 1,553 | |||
Loss on disposal of fixed assets | 553 | |||
Proceeds of disposal of fixed assets | $ 1,000 |
DEFERRED VARIABLE PAYMENT OBL_2
DEFERRED VARIABLE PAYMENT OBLIGATION (Details Narrative) - USD ($) | Aug. 27, 2020 | Jul. 01, 2020 | Apr. 22, 2020 | Dec. 30, 2019 | Nov. 18, 2019 | May 09, 2019 | Feb. 01, 2019 | Feb. 29, 2020 | Nov. 30, 2020 | May 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | May 31, 2020 | |
Principal amount | $ 1,980,547 | $ 1,980,547 | ||||||||||||
Accrued Payment | $ 30,534 | 77,683 | 77,683 | |||||||||||
Debt outstanding | 1,559,000 | 2,525,000 | 2,525,000 | |||||||||||
Accrued in payment | 18,455 | 57,149 | ||||||||||||
Proceeds from payment obligation | 966,000 | 966,000 | $ 1,197,500 | |||||||||||
Total payment obligation | 1,559,000 | [1] | 2,525,000 | 2,525,000 | ||||||||||
Current portion of deferred variable payment obligation | 30,534 | [1] | 77,683 | $ 77,683 | ||||||||||
Investor [Member] | ||||||||||||||
Advance amount | $ 900,000 | $ 50,000 | ||||||||||||
Description of disposition price | The FMV cannot exceed 43.77% 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 | $ 100,000 | $ 900,000 | ||||||||||||
Percentage of exchange rate | 1.00% | 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. | |||||||||||||
Periodic payment | $ 60,000 | |||||||||||||
Maturity date | Nov. 30, 2019 | |||||||||||||
Frequency of periodic payment | Monthly installments | |||||||||||||
Interest rate | 6.00% | |||||||||||||
Investor [Member] | Maximum [Member] | ||||||||||||||
Payment rate | 31.00% | |||||||||||||
Investor [Member] | Minimum [Member] | ||||||||||||||
Payment rate | 1.00% | |||||||||||||
Investor [Member] | New Agreement [Member] | ||||||||||||||
Payment rate | 14.25% | |||||||||||||
Description of agreement | The Company and the first investor referred to above consolidated the three separate agreements of February 1, 2019 for $900,000, November 18, 2019 for $225,000 and July 1, 2020 for $800,000 into a new agreement for a total of $1,925,000. | |||||||||||||
Investor [Member] | Financial Assets Sold under Agreement to Repurchase [Member] | ||||||||||||||
Percentage of total asset disposition price | 43.77% | |||||||||||||
Investor Three [Member] | ||||||||||||||
Maximum amount of debt | $ 100,000 | $ 50,000 | $ 17,444 | |||||||||||
Percentage of exchange rate | 1.00% | 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. | As the investor had only advanced the $50,000 the 1.00% rate Payment has been adjusted on a pro-rata basis to 0.50%. | ||||||||||||
Periodic payment | $ 8,014 | |||||||||||||
Date of first required payment | Jul. 1, 2019 | |||||||||||||
Frequency of periodic payment | Four monthly installments | |||||||||||||
Proceeds from related party | $ 50,000 | |||||||||||||
Investor Six [Member] | ||||||||||||||
Maximum amount of debt | $ 800,000 | $ 225,000 | ||||||||||||
Percentage of exchange rate | 2.75% | 2.25% | ||||||||||||
Description of variable payments terms | If the total investor advances turns out to be less than $100,000, this would not constitute a breach of the agreement, rather the 1.00% rate would be adjusted on a pro-rata basis. | |||||||||||||
Description of advance payment terms | The investor has agreed to pay $100,000 per month over an 8 month period with the first payment due July 2020 and the final payment no later than February 28, 2021. | |||||||||||||
Date of first required payment | May 31, 2021 | |||||||||||||
Total payment obligation | $ 800,000 | $ 800,000 | ||||||||||||
Payment rate | 20.00% | |||||||||||||
Investor Two [Member] | ||||||||||||||
Maximum amount of debt | $ 400,000 | $ 143,556 | ||||||||||||
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 | $ 400,000 | |||||||||||||
[1] | Derived from audited information |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details) - USD ($) | 9 Months Ended | |||
Nov. 30, 2020 | Feb. 29, 2020 | |||
Total convertible notes payable | [1] | |||
Less: current portion of convertible notes payable | (5,508,564) | (6,734,227) | ||
Less: discount on noncurrent convertible notes payable | (30,486) | |||
Noncurrent convertible notes payable, net of discount | 69,515 | [1] | ||
Current portion of convertible notes payable | 5,508,564 | 6,734,227 | ||
Less: discount on current portion of convertible notes payable | (22,488) | (120,602) | ||
Current portion of convertible notes payable, net of discount | $ 5,486,076 | 6,613,625 | [1] | |
Convertible Notes Payable # 1 [Member] | ||||
Issued | Jan. 31, 2013 | |||
Maturity | [2],[3] | Feb. 28, 2017 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [4] | $ 0.010 | ||
Total convertible notes payable | $ 119,091 | 119,091 | ||
Convertible Notes Payable # 2 [Member] | ||||
Issued | May 31, 2013 | |||
Maturity | [2],[3] | Nov. 30, 2016 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [4] | $ 0.010 | ||
Total convertible notes payable | $ 261,595 | 261,595 | ||
Convertible Notes Payable # 3 [Member] | ||||
Issued | Aug. 31, 2014 | |||
Maturity | [2],[3] | Nov. 30, 2016 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [4] | $ 0.002 | ||
Total convertible notes payable | $ 355,652 | 355,652 | ||
Convertible Notes Payable # 4 [Member] | ||||
Issued | Nov. 30, 2014 | |||
Maturity | [2],[3] | Nov. 30, 2016 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [4] | $ 0.002 | ||
Total convertible notes payable | $ 103,950 | 103,950 | ||
Convertible Notes Payable # 5 [Member] | ||||
Issued | Feb. 28, 2015 | |||
Maturity | [2],[3] | Feb. 28, 2017 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [4] | $ 0.001 | ||
Total convertible notes payable | $ 63,357 | 63,357 | ||
Convertible Notes Payable # 6 [Member] | ||||
Issued | May 31, 2015 | |||
Maturity | [2],[3] | Aug. 31, 2017 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [4] | $ 1 | ||
Total convertible notes payable | $ 65,383 | 65,383 | ||
Convertible Notes Payable # 7 [Member] | ||||
Issued | Aug. 31, 2015 | |||
Maturity | [2],[3] | Aug. 31, 2017 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [4] | $ 0.300 | ||
Total convertible notes payable | $ 91,629 | 91,629 | ||
Convertible Notes Payable # 8 [Member] | ||||
Issued | Nov. 30, 2015 | |||
Maturity | [2],[3] | Nov. 30, 2018 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [4] | $ 0.300 | ||
Total convertible notes payable | $ 269,791 | 269,791 | ||
Convertible Notes Payable # 9 [Member] | ||||
Issued | Feb. 29, 2016 | |||
Maturity | [2],[3] | Feb. 28, 2019 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [5] | 60% discount | ||
Total convertible notes payable | $ 95,245 | 95,245 | ||
Convertible Notes Payable # 10 [Member] | ||||
Issued | May 31, 2016 | |||
Maturity | [2],[3] | May 31, 2019 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [4] | $ 0.003 | ||
Total convertible notes payable | $ 35,100 | 35,100 | ||
Convertible Notes Payable # 11 [Member] | ||||
Issued | Jul. 18, 2016 | |||
Maturity | [3] | Jul. 18, 2017 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [4] | $ 0.003 | ||
Total convertible notes payable | $ 3,500 | 3,500 | ||
Convertible Notes Payable # 12 [Member] | ||||
Issued | Dec. 31, 2016 | |||
Maturity | Dec. 31, 2020 | |||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 35% discount | ||
Total convertible notes payable | $ 65,000 | 65,000 | ||
Convertible Notes Payable # 13 [Member] | ||||
Issued | Jan. 15, 2017 | |||
Maturity | [6] | Jan. 15, 2021 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 35% discount | ||
Total convertible notes payable | $ 50,000 | 50,000 | ||
Convertible Notes Payable # 14 [Member] | ||||
Issued | Jan. 15, 2017 | |||
Maturity | Jan. 15, 2021 | |||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 35% discount | ||
Total convertible notes payable | $ 100,000 | 100,000 | ||
Convertible Notes Payable # 15 [Member] | ||||
Issued | Jan. 16, 2017 | |||
Maturity | Jan. 16, 2021 | |||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 35% discount | ||
Total convertible notes payable | $ 150,000 | 150,000 | ||
Convertible Notes Payable # 16 [Member] | ||||
Issued | Mar. 8, 2017 | |||
Maturity | [3] | Mar. 8, 2020 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | $ 100,000 | 100,000 | ||
Convertible Notes Payable # 17 [Member] | ||||
Issued | Mar. 9, 2017 | |||
Maturity | [6] | Mar. 9, 2021 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 35% discount | ||
Total convertible notes payable | $ 50,000 | 50,000 | ||
Convertible Notes Payable # 18 [Member] | ||||
Issued | Apr. 26, 2017 | |||
Maturity | [3] | Apr. 26, 2018 | ||
Interest Rate | 0.00% | |||
Conversion Rate per Share | $ 0.001 | |||
Total convertible notes payable | $ 68 | 68 | ||
Convertible Notes Payable # 19 [Member] | ||||
Issued | May 1, 2017 | |||
Maturity | [6] | May 1, 2021 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 35% discount | ||
Total convertible notes payable | $ 50,000 | 50,000 | ||
Convertible Notes Payable # 20 [Member] | ||||
Issued | May 4, 2017 | |||
Maturity | [3] | May 4, 2018 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | 22,610 | |||
Convertible Notes Payable # 21 [Member] | ||||
Issued | May 15, 2017 | |||
Maturity | [3] | May 15, 2018 | ||
Interest Rate | 0.00% | |||
Conversion Rate per Share | $ 0.001 | |||
Total convertible notes payable | $ 1,280 | 1,280 | ||
Convertible Notes Payable # 22 [Member] | ||||
Issued | May 17, 2017 | |||
Maturity | [3],[6] | May 17, 2020 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [7] | 40% discount | ||
Total convertible notes payable | $ 85,000 | 85,000 | ||
Convertible Notes Payable # 23 [Member] | ||||
Issued | Jun. 7, 2017 | |||
Maturity | [3] | Jun. 7, 2018 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | 156,764 | |||
Convertible Notes Payable # 24 [Member] | ||||
Issued | Jun. 16, 2017 | |||
Maturity | [3] | Jun. 16, 2018 | ||
Interest Rate | 0.00% | |||
Conversion Rate per Share | $ 0.001 | |||
Total convertible notes payable | $ 750 | 750 | ||
Convertible Notes Payable # 25 [Member] | ||||
Issued | Jul. 6, 2017 | |||
Maturity | Jul. 6, 2018 | |||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | 200,000 | |||
Convertible Notes Payable # 26 [Member] | ||||
Issued | Aug. 8, 2017 | |||
Maturity | Aug. 8, 2018 | |||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | 125,000 | |||
Convertible Notes Payable # 27 [Member] | ||||
Issued | Jul. 28, 2017 | |||
Maturity | [3],[8] | Jul. 28, 2018 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | $ 57,495 | 47,913 | ||
Convertible Notes Payable # 28 [Member] | ||||
Issued | Aug. 29, 2017 | |||
Maturity | [3],[8] | Aug. 29, 2018 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | $ 9,705 | 162,250 | ||
Convertible Notes Payable # 29 [Member] | ||||
Issued | Oct. 4, 2017 | |||
Maturity | [3] | May 4, 2018 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | $ 44,662 | 150,000 | ||
Convertible Notes Payable # 30 [Member] | ||||
Issued | Oct. 16, 2017 | |||
Maturity | [3],[8] | Oct. 16, 2018 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | $ 394,244 | 328,537 | ||
Convertible Notes Payable # 31 [Member] | ||||
Issued | Nov. 22, 2017 | |||
Maturity | [3],[8] | Nov. 22, 2018 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | $ 660,330 | 550,275 | ||
Convertible Notes Payable # 32 [Member] | ||||
Issued | Dec. 28, 2017 | |||
Maturity | Dec. 28, 2017 | |||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | 57,008 | |||
Convertible Notes Payable # 33 [Member] | ||||
Issued | Dec. 29, 2017 | |||
Maturity | [3],[8] | Dec. 29, 2018 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | $ 435,600 | 363,000 | ||
Convertible Notes Payable # 34 [Member] | ||||
Issued | Jan. 9, 2018 | |||
Maturity | [3] | Jan. 9, 2019 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5],[7] | 40% discount | ||
Total convertible notes payable | $ 79,508 | 79,508 | ||
Convertible Notes Payable # 35 [Member] | ||||
Issued | Jan. 30, 2018 | |||
Maturity | [3],[8] | Jan. 30, 2019 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5],[7] | 50% discount | ||
Total convertible notes payable | $ 396,000 | 330,000 | ||
Convertible Notes Payable # 36 [Member] | ||||
Issued | Feb. 21, 2018 | |||
Maturity | [3],[8] | Feb. 21, 2019 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5],[7] | 50% discount | ||
Total convertible notes payable | $ 279,591 | 330,000 | ||
Convertible Notes Payable # 37 [Member] | ||||
Issued | Mar. 14, 2018 | |||
Maturity | [3] | Mar. 14, 2019 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | 50,000 | |||
Convertible Notes Payable # 38 [Member] | ||||
Issued | Jun. 7, 2017 | |||
Maturity | Jun. 9, 2019 | |||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | $ 200,000 | 200,000 | ||
Convertible Notes Payable # 39 [Member] | ||||
Issued | Apr. 9, 2018 | |||
Maturity | [3],[8] | Apr. 9, 2019 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | $ 72,600 | 60,500 | ||
Convertible Notes Payable # 40 [Member] | ||||
Issued | Mar. 21, 2017 | |||
Maturity | Mar. 21, 2018 | |||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | 40,000 | |||
Convertible Notes Payable # 41 [Member] | ||||
Issued | Apr. 20, 2018 | |||
Maturity | [3] | Apr. 20, 2019 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | $ 97,659 | 97,659 | ||
Convertible Notes Payable # 42 [Member] | ||||
Issued | May 2, 2018 | |||
Maturity | [3] | Dec. 2, 2018 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | 70,682 | |||
Convertible Notes Payable # 43 [Member] | ||||
Issued | May 4, 2018 | |||
Maturity | [3] | May 4, 2019 | ||
Interest Rate | 12.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | $ 123,750 | 123,750 | ||
Convertible Notes Payable # 44 [Member] | ||||
Issued | May 14, 2018 | |||
Maturity | [3] | Dec. 14, 2018 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | 33,542 | |||
Convertible Notes Payable # 45 [Member] | ||||
Issued | May 23, 2018 | |||
Maturity | May 23, 2019 | |||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | 110,000 | |||
Convertible Notes Payable # 46 [Member] | ||||
Issued | Jun. 6, 2018 | |||
Maturity | [3] | Jun. 6, 2019 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | $ 282,949 | 282,949 | ||
Convertible Notes Payable # 47 [Member] | ||||
Issued | Jun. 19, 2018 | |||
Maturity | Mar. 19, 2019 | |||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | 43,125 | |||
Convertible Notes Payable # 48 [Member] | ||||
Issued | Jul. 6, 2017 | |||
Maturity | Jun. 9, 2019 | |||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | 200,000 | |||
Convertible Notes Payable # 49 [Member] | ||||
Issued | Aug. 1, 2018 | |||
Maturity | [3],[8] | Aug. 1, 2019 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | $ 42,900 | 35,750 | ||
Convertible Notes Payable # 50 [Member] | ||||
Issued | Aug. 23, 2018 | |||
Maturity | [3] | Aug. 23, 2019 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 45% discount | ||
Total convertible notes payable | 70,123 | |||
Convertible Notes Payable # 51 [Member] | ||||
Issued | Sep. 13, 2018 | |||
Maturity | [3] | Jun. 30, 2019 | ||
Interest Rate | 12.00% | |||
Conversion Rate per Share | [5] | 45% discount | ||
Total convertible notes payable | $ 9,200 | 9,200 | ||
Convertible Notes Payable # 52 [Member] | ||||
Issued | Sep. 17, 2018 | |||
Maturity | [3] | Mar. 17, 2019 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | 4,945 | |||
Convertible Notes Payable # 53 [Member] | ||||
Issued | Sep. 20, 2018 | |||
Maturity | [3],[8] | Sep. 20, 2019 | ||
Interest Rate | 15.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | $ 51,942 | 43,285 | ||
Convertible Notes Payable # 54 [Member] | ||||
Issued | Sep. 24, 2018 | |||
Maturity | [3] | Jun. 24, 2019 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | $ 45,663 | 63,913 | ||
Convertible Notes Payable # 55 [Member] | ||||
Issued | Aug. 8, 2017 | |||
Maturity | Jun. 9, 2019 | |||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | 125,000 | |||
Convertible Notes Payable # 56 [Member] | ||||
Issued | Nov. 8, 2018 | |||
Maturity | [3] | Aug. 15, 2019 | ||
Interest Rate | 12.00% | |||
Conversion Rate per Share | [5] | 45% discount | ||
Total convertible notes payable | $ 79,500 | 79,500 | ||
Convertible Notes Payable # 57 [Member] | ||||
Issued | Nov. 26, 2018 | |||
Maturity | [3] | May 26, 2019 | ||
Interest Rate | 10.00% | |||
Conversion Rate per Share | [5] | 50% discount | ||
Total convertible notes payable | 44,799 | |||
Convertible Notes Payable # 58 [Member] | ||||
Issued | Aug. 29, 2019 | |||
Maturity | [3] | Aug. 29, 2020 | ||
Interest Rate | 8.00% | |||
Conversion Rate per Share | [5] | 40% discount | ||
Total convertible notes payable | $ 28,875 | 26,250 | ||
Convertible Note [Member] | ||||
Interest Rate | 24.00% | |||
Total convertible notes payable | $ 5,508,564 | $ 6,834,228 | ||
[1] | Derived from audited information | |||
[2] | On December 10, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $1,460,794 and associated accrued interest of $1,593,544 totaling $3,054,338 in exchange for promissory notes dated December 10, 2020 totaling $3,054,338, maturing December 10, 2023 and bearing interest at 12% per annum and a warrant to purchase 250,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $550,000. These notes are secured by a general security charging all of RAD's present and after-acquired property. | |||
[3] | The indicated notes were in default as of November 30, 2020. Default interest rate 24% | |||
[4] | The conversion price is not subject to adjustment from forward or reverse stock splits. | |||
[5] | 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. | |||
[6] | On December 14, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $235,000 and associated accrued interest of $75,375 totaling $310,375 in exchange for a promissory note dated December 14, 2020 of $310,375, maturing December 10, 2023 and bearing interest at 12% per annum, a warrant to purchase 25,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $182,500 and 55 shares of Series F Preferred Shares having a fair value of $1,151,166. | |||
[7] | The note is convertible beginning six months after the date of issuance. | |||
[8] | On December 10, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $2,683,357 and associated accrued interest of $1,237,811 totaling $3,921,1688 in exchange for a promissory note dated December 10, 2020 of $3,921,1688, maturing December 10, 2023 and bearing interest at 12% per annum and a warrant to purchase 450,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $990,000. |
CONVERTIBLE NOTES PAYABLE (De_2
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | Dec. 14, 2020 | Dec. 10, 2020 | Jul. 22, 2020 | Dec. 01, 2020 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 29, 2020 |
Principal face amount | $ 1,980,547 | $ 1,980,547 | |||||||
Amortization of discount on convertible note payable | $ 197,650 | $ 739,334 | |||||||
Warrant exercise price (in dollars per share) | $ 0.0024 | $ 0.0024 | $ 106 | ||||||
Series F Preferred Stock [Member] | |||||||||
Number of shares issued | 1,000 | ||||||||
Subsequent Event [Member] | Series F Preferred Stock [Member] | |||||||||
Number of shares issued | 110 | ||||||||
Convertible Notes Payable [Member] | |||||||||
Original issue discounts | $ 0 | $ 1,250 | $ 0 | 1,250 | |||||
Amortization of discount on convertible note payable | 0 | 56,171 | 23,957 | 739,334 | |||||
Penalty interest | 494,428 | 175,463 | 939,705 | 207,116 | |||||
Debt discounts from derivative liabilities | 0 | $ 25,000 | 0 | $ 26,250 | |||||
Convertible Notes Payable [Member] | |||||||||
Principal face amount | 2,094,934 | 2,094,934 | |||||||
Notes fees | 20,500 | 20,500 | |||||||
Accrued interest payable | 1,083,982 | $ 1,083,982 | |||||||
Convertible Notes Payable [Member] | Subsequent Event [Member] | |||||||||
Principal face amount | $ 235,000 | $ 1,460,794 | |||||||
Accrued interest payable | 75,375 | 1,593,544 | |||||||
Value of shares converted | $ 310,375 | $ 3,054,338 | |||||||
Debt interest rate | 12.00% | 12.00% | |||||||
Fair value | $ 1,151,166 | $ 550,000 | |||||||
Convertible Notes Payable [Member] | Subsequent Event [Member] | Series F Preferred Stock [Member] | |||||||||
Number of shares issued | 55 | ||||||||
Fair value | $ 182,500 | ||||||||
Convertible Notes Payable [Member] | Common Stock [Member] | |||||||||
Number of shares issued | 1,889,155,010 | ||||||||
Convertible Notes Payable [Member] | Warrant [Member] | Subsequent Event [Member] | |||||||||
Number of shares issued | 25,000,000 | 250,000,000 | |||||||
Warrant exercise price (in dollars per share) | $ 0.002 | $ 0.002 | |||||||
Warrant maturity | 3 years | 3 years | |||||||
Unsecured Convertible Note [Member] | |||||||||
Accrued interest payable | $ 3,486,043 | $ 3,486,043 | |||||||
Convertible Notes Payable 1 [Member] | |||||||||
Debt interest rate | 10.00% | 10.00% | |||||||
Convertible Notes Payable 1 [Member] | Subsequent Event [Member] | |||||||||
Principal face amount | $ 2,683,357 | ||||||||
Accrued interest payable | 1,237,811 | ||||||||
Value of shares converted | $ 39,211,688 | ||||||||
Debt interest rate | 12.00% | ||||||||
Fair value | $ 990,000 | ||||||||
Convertible Notes Payable 1 [Member] | Warrant [Member] | Subsequent Event [Member] | |||||||||
Number of shares issued | 450,000,000 | ||||||||
Warrant exercise price (in dollars per share) | $ 0.002 | ||||||||
Warrant maturity | 3 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 29, 2020 | May 31, 2019 | ||
Related Party Transactions [Abstract] | |||||||
Loan payable - related party | $ 1,189,155 | $ 1,189,155 | $ 1,310,358 | [1] | |||
Balance due to related party | 874,374 | $ 874,374 | $ 656,334 | ||||
Percentage of interest expense due to related party | 12.00% | 12.00% | |||||
Deferred salary payable - related party | $ 594,000 | $ 426,000 | |||||
Accrued interest, related party | 84,418 | $ 34,917 | |||||
Consulting fees for research and development | $ 10,157 | $ 90,090 | $ 121,973 | 47,238 | |||
Credit received - related party | $ 153,682 | $ 153,682 | $ (106,444) | ||||
[1] | Derived from audited information |
OTHER DEBT - VEHICLE LOAN (Deta
OTHER DEBT - VEHICLE LOAN (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2016 | Nov. 30, 2020 | Feb. 29, 2020 | Feb. 28, 2019 | |
Vehicle loan secured by automobile | $ 1,980,547 | ||||
Vehicle Loan [Member] | |||||
Current portion vehicle loan | 38,522 | $ 38,522 | |||
Vehicle Loan [Member] | Robotic Assistance Devices, LLC ("RAD") [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 | $ 5,746 | |||
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 | 18,766 | ||||
Reclassification of fixed assets to vehicle for disposal | 5,515 | ||||
Remaining asset value | 16,944 | ||||
First Vehicle Loan [Member] | Robotic Assistance Devices, LLC ("RAD") [Member] | |||||
Outstanding balance of the loan | 5,515 | ||||
Proceeds of disposal of vehicle offset against vehicle loan | 18,766 | ||||
Remaining asset value | $ 13,251 |
LOANS PAYABLE (Details)
LOANS PAYABLE (Details) - USD ($) | 9 Months Ended | |||
Nov. 30, 2020 | Feb. 29, 2020 | [1] | ||
Principal amount | $ 1,980,547 | |||
Less current portion of loans payable | 923,497 | $ 696,154 | ||
Less discount on loans payable | (200,300) | |||
Total | 649,250 | |||
Current portion of loans payable | (923,497) | $ (696,154) | ||
Less discount on current portion of loans payable | (207,500) | |||
Loans payable net of discount | $ 923,497 | |||
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 | $ 10,000 | |||
25% Promissory Note Due on August 16, 2019 [Member] | ||||
Date of issuance | [2] | Aug. 16, 2018 | ||
Principal amount | [2],[4] | $ 12,624 | ||
25% Promissory Note Due on October 1 ,2018 [Member] | ||||
Date of issuance | [2] | Aug. 16, 2018 | ||
Principal amount | $ 10,000 | |||
20% Promissory Note Due on October 20 ,2018 [Member] | ||||
Date of issuance | [2] | Aug. 23, 2018 | ||
Principal amount | [2],[5] | $ 15,000 | ||
20% Promissory Note Due on October 11, 2019 [Member] | ||||
Date of issuance | [2] | Oct. 11, 2018 | ||
Principal amount | [2],[6] | $ 17,000 | ||
Factoring Agreement Due on March 11, 2020 [Member] | ||||
Date of issuance | [2] | Aug. 5, 2019 | ||
Principal amount | [2],[7] | $ 18,750 | ||
15% Promissory Note Due on June 30, 2019 [Member] | ||||
Date of issuance | [2] | Jan. 31, 2019 | ||
Principal amount | [2],[8] | $ 78,432 | ||
11% Loan Due on January 24, 2021 [Member] | ||||
Date of issuance | Jan. 24, 2019 | |||
Principal amount | [2],[9] | $ 168,658 | ||
15% Promissory Note Due on June 30, 2019 [Member] | ||||
Date of issuance | [2] | May 9, 2019 | ||
Principal amount | [2],[10] | $ 7,850 | ||
15% Promissory Note Due on June 30, 2019 [Member] | ||||
Date of issuance | [2] | May 31, 2019 | ||
Principal amount | [2],[11] | $ 86,567 | ||
15% Promissory Note Due on June 26, 2020 [Member] | ||||
Date of issuance | [2] | Jun. 26, 2019 | ||
Principal amount | [2],[12] | $ 79,104 | ||
15% Promissory Note Due on June 24 2020 [Member] | ||||
Date of issuance | Sep. 24, 2019 | |||
Principal amount | [2],[13] | $ 12,000 | ||
15% Promissory Note Due on January 30, 2021 [Member] | ||||
Date of issuance | Jan. 30, 2020 | |||
Principal amount | [2],[14] | $ 11,000 | ||
15% Promissory Note Due on February 27, 2021 [Member] | ||||
Date of issuance | Feb. 27, 2020 | |||
Principal amount | [2],[15] | $ 5,000 | ||
15% Promissory Note Due on April 16, 2021 [Member] | ||||
Date of issuance | Apr. 16, 2020 | |||
Principal amount | [2],[16] | $ 13,000 | ||
15% Promissory Note Due on May 12, 2021 [Member] | ||||
Date of issuance | May 12, 2020 | |||
Principal amount | [2],[17] | $ 43,500 | ||
15% Promissory Note Due on May 22, 2021 [Member] | ||||
Date of issuance | May 22, 2020 | |||
Principal amount | [2],[18] | $ 85,000 | ||
15% Promissory Note Due on June 2, 2021 [Member] | ||||
Date of issuance | Jun. 2, 2020 | |||
Principal amount | [2],[19] | $ 62,000 | ||
15% Promissory Note Due on June 9, 2021 [Member] | ||||
Date of issuance | Jun. 9, 2020 | |||
Principal amount | [2],[20] | $ 31,000 | ||
15% Promissory Note Due on June 12, 2021 [Member] | ||||
Date of issuance | Jun. 12, 2020 | |||
Principal amount | [2],[21] | $ 50,000 | ||
15% Promissory Note Due on June 16, 2021 [Member] | ||||
Date of issuance | Jun. 16, 2020 | |||
Principal amount | [2],[22] | $ 42,000 | ||
15% Promissory Note Due on April 3, 2021 [Member] | ||||
Date of issuance | Apr. 3, 2020 | |||
Principal amount | [2],[23] | $ 27,697 | ||
15% Promissory Note Due on August 31, 2021 [Member] | ||||
Date of issuance | Aug. 31, 2020 | |||
Principal amount | [2],[24] | $ 44,183 | ||
15% Promissory Note Due on September 8, 2021 [Member] | ||||
Date of issuance | Sep. 8, 2020 | |||
Principal amount | [2],[25] | $ 7,380 | ||
15% Promissory Note Due on September 15, 2022 [Member] | ||||
Date of issuance | Sep. 15, 2020 | |||
Principal amount | [2],[26] | $ 300,000 | ||
15% Promissory Note Due on March 6, 2023 [Member] | ||||
Date of issuance | Oct. 6, 2020 | |||
Principal amount | [2],[27] | $ 150,000 | ||
15% Promissory Note Due on November 12, 2023 [Member] | ||||
Date of issuance | Nov. 12, 2020 | |||
Principal amount | [2],[28] | $ 110,000 | ||
15% Promissory Note Due on October 22, 2023 [Member] | ||||
Date of issuance | Nov. 23, 2020 | |||
Principal amount | [2],[29] | $ 65,000 | ||
15% Promissory Note Due on November 23, 2023 [Member] | ||||
Date of issuance | Nov. 23, 2020 | |||
Principal amount | [2],[30] | $ 300,000 | ||
Convertible Notes Payable [Member] | ||||
Principal amount | $ 2,094,934 | |||
Factoring Agreement Due on August 11, 2020 [Member] | ||||
Date of issuance | [2] | Nov. 12, 2019 | ||
Principal amount | [2],[31] | $ 53,465 | ||
Factoring Agreement Due on March 5, 2020 [Member] | ||||
Date of issuance | [2] | Dec. 20, 2019 | ||
Principal amount | [2],[32] | $ 7,480 | ||
Factoring Agreement Due on April 29, 2020 [Member] | ||||
Date of issuance | [2] | Oct. 17, 2019 | ||
Principal amount | [2],[33] | |||
Factoring Agreement Due on April 4, 2020 [Member] | ||||
Date of issuance | [2] | Sep. 27, 2019 | ||
Principal amount | [2],[34] | $ 8,857 | ||
[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 $12,376 has been repaid by the Company and no notices have been received. Accrued interest of $1,511 has been recorded. | |||
[5] | Principal repayable in one year. Interest repayable in 10 monthly instalments of $460 commencing January 11 ,2019 and secured by revenue earning devices having a net book value of at least $186,000. 25,000 repaid. | |||
[6] | $6,000 repaid during the year ended February 29,2020 | |||
[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 $58,500, including payments of $8,275 made during the nine months ended November 30, 2020. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. | |||
[8] | The note may be pre-payable at any time. The note balance includes 33% original issue discount of $25,882. | |||
[9] | $200,000 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 favor of the lender on a first priority basis subject to the following: the lender's security in this respect shall be postponeable to security in favor of institutional financing obtained by RAD. Bonus interest of 10,304 has been accrued payable March 31, 2020. | |||
[10] | The note may be pre-payable at any time. The note balance includes 33% original issue discount of $2,590. | |||
[11] | The note may be pre-payable at any time. The note balance includes 33% original issue discount of $28,567. | |||
[12] | The note may be pre-payable at any time. The note balance includes 33% original issue discount of $26,104. | |||
[13] | The note may be pre-payable at any time. The note balance includes 33% original issue discount of $3,000. | |||
[14] | The note may be pre-payable at any time. The note balance includes 22% original issue discount of $2,450. | |||
[15] | The note may be pre-payable at any time. The note balance includes 24% original issue discount of $1,200. | |||
[16] | The note may be pre-payable at any time. The note balance includes an original issue discount of $3,850. | |||
[17] | The note may be pre-payable at any time. The note balance includes an original issue discount of $8,000. | |||
[18] | The note may be pre-payable at any time. The note balance includes an original issue discount of $15,000. | |||
[19] | The note may be pre-payable at any time. The note balance includes an original issue discount of $12,000. | |||
[20] | The note may be pre-payable at any time. The note balance includes an original issue discount of $6,000. | |||
[21] | The note may be pre-payable at any time. The note balance includes an original issue discount of $10,000. | |||
[22] | The note may be pre-payable at any time. The note balance includes an original issue discount of $7,000. | |||
[23] | $ 40,000 CDN loan, both principal and interest are due at maturity, if unpaid there is a 10% penalty on unpaid balance. By consent of all parties, lender may convert balance into Class F shares at $6,739 USD per share. | |||
[24] | $ 60,000 CDN loan, principal is due at maturity, interest is payable commencing the third month after the loan over the remaining 10 months. If principal or interest unpaid there is a 10% penalty on unpaid balance. By consent of all parties, lender may convert balance into Class F shares at $6,739 USD per share. | |||
[25] | $ 10,000 CDN loan, principal is due at maturity, interest is payable monthly commencing the third month after the loan over the remaining 10 months. If principal or interest unpaid there is a 10% penalty on unpaid balance. By consent of all parties, lender may convert balance into Class F shares at $6,739 USD per share. | |||
[26] | The note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Interest payable monthly, principal due at maturity. Secured by a general security charging all of RAD's present and after-acquired property. | |||
[27] | Principal and interest repayable in 28 monthly instalments commencing December 6, 2020, the first 6 months at $2,000 per month, the remaining 22 payments at $ 8,500 per month. Secured by revenue earning devices. | |||
[28] | The note may be pre-payable at any time. The note balance includes an original issue discount of $10,000 and was issued with warrant to purchase 70,000,000 shares at an exercise price of $0.00165 per share, with a 3 year term and having a fair value of $77,000 using Black-Scholes with assumptions described in Note 13. The discount and warrant are being amortized over the term of the loan. | |||
[29] | Principal and interest repayable in 28 monthly instalments commencing December 6, 2020, the first 6 months at $2,000 per month, the remaining 22 payments at $ 8,500 per month. Secured by revenue earning devices. | |||
[30] | The note may be pre-payable at any time. The note balance includes an original issue discount of $25,000 and was issued with warrant to purchase 230,000,000 shares at an exercise price of $0.00165 per share with a 3 year term and having a fair value of $253,000 using Black-Scholes with assumptions described in note 13. The discount and warrant are being amortized over the term of the loan. | |||
[31] | Total loan of $243,639, repayable $1,509 per week including fees and interest of $60,042. Original cash proceeds of $7,877, repayment of loans (5) and (13) totaling $15,732, partial repayment of fees of $5,566 all totaling $29,175, additional advances of $88,772 with remaining $65,551 to be advanced to the company over the remaining 18 weeks. The Company has repaid a total of $98,616, including payments of $20,827 made during the nine months ended November 30, 2020. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. | |||
[32] | Total loan of $12,400, repayable $1,240 per week including fees and interest of $2,400. Original cash proceeds of $10,000, repayments of $4,920. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. | |||
[33] | Total loan of $71,000, repayable $710 per business day including fees and interest of $21,000. Original proceeds of $50,000. Loan fully repaid at August 31, 2020. | |||
[34] | Total loan of $59,960, repayable $590 per business day including fees and interest of $19,960. Original proceeds of $40,000 less repayment of $51,103, including payments of $6,036 made during the quarter ended August 31, 2020. The Company has pledged a security interest on all accounts receivable and bank accounts of the Company. Obligation under personal guaranty of the controlling shareholder of the Company. |
LOANS PAYABLE (Details Narrativ
LOANS PAYABLE (Details Narrative) - USD ($) | Jan. 11, 2019 | Sep. 16, 2018 | Aug. 11, 2018 | Mar. 31, 2020 | Aug. 31, 2020 | Nov. 30, 2020 | Feb. 29, 2020 |
25% Promissory Note Due on August 16, 2019 [Member] | |||||||
Perodic Payment | $ 2,376 | ||||||
Repayment of debt | 12,376 | ||||||
Net book value | $ 25,000 | ||||||
Payment term | 12 monthly instalments | ||||||
Accrued interest | $ 1,511 | ||||||
15% Promissory Note Due on June 30, 2019 [Member] | |||||||
Percentage of original issue discounts | 33.00% | ||||||
Original issue discounts | $ 25,882 | ||||||
25% Promissory Note Due on June 11, 2019 [Member] | |||||||
Perodic Payment | $ 4,562 | ||||||
Net book value | $ 48,000 | ||||||
Payment term | 12 monthly instalments | ||||||
Factoring Agreement Due on March 11, 2020 [Member] | |||||||
Perodic Payment | 475 | ||||||
Repayment of debt | 8,275 | ||||||
Original proceeds | 31,353 | ||||||
Fees and interest | 25,170 | ||||||
Loan carry forward | 23,227 | ||||||
Repayment of loan payable | 58,500 | ||||||
Total Loan | $ 79,750 | ||||||
15% Promissory Note Due on June 30, 2019 [Member] | |||||||
Percentage of original issue discounts | 33.00% | ||||||
Original issue discounts | $ 2,590 | ||||||
15% Promissory Note Due on June 30, 2019 [Member] | |||||||
Percentage of original issue discounts | 33.00% | ||||||
Original issue discounts | $ 28,567 | ||||||
20% Promissory Note Due on October 11, 2019 [Member] | |||||||
Repayment of debt | $ 6,000 | ||||||
11% Loan Due on January 24, 2021 [Member] | |||||||
Accrued interest | $ 10,304 | ||||||
Partial repayment of fees | $ 200,000 | ||||||
15% Promissory Note Due on June 26, 2020 [Member] | |||||||
Percentage of original issue discounts | 33.00% | ||||||
Original issue discounts | $ 26,104 | ||||||
Factoring Agreement Due on August 11, 2020 [Member] | |||||||
Perodic Payment | 1,509 | ||||||
Repayment of debt | 98,616 | ||||||
Fees and interest | 60,042 | ||||||
Proceeds from loan payable | 7,877 | ||||||
Repayment of loan payable | 15,732 | ||||||
Total Loan | 243,639 | ||||||
Partial repayment of fees | 5,566 | ||||||
Total Fees | 29,175 | ||||||
Additional advances | 88,772 | ||||||
Remaining amount to be advanced | $ 65,551 | ||||||
Remaining period to be advanced | 18 weeks | ||||||
Factoring Agreement Due on April 29, 2020 [Member] | |||||||
Perodic Payment | $ 710 | ||||||
Fees and interest | 21,000 | ||||||
Proceeds from loan payable | 50,000 | ||||||
Total Loan | 71,000 | ||||||
Factoring Agreement Due on April 4, 2020 [Member] | |||||||
Perodic Payment | 590 | ||||||
Fees and interest | 19,960 | ||||||
Proceeds from loan payable | 40,000 | ||||||
Repayment of loan payable | $ 6,036 | 51,103 | |||||
Total Loan | $ 59,960 | ||||||
15% Promissory Note Due on June 24 2020 [Member] | |||||||
Percentage of original issue discounts | 33.00% | ||||||
Original issue discounts | $ 3,000 | ||||||
Factoring Agreement Due on March 5, 2020 [Member] | |||||||
Perodic Payment | 1,240 | ||||||
Fees and interest | 2,400 | ||||||
Proceeds from loan payable | 10,000 | ||||||
Repayment of loan payable | 4,920 | ||||||
Total Loan | $ 12,400 | ||||||
15% Promissory Note Due on January 30, 2021 [Member] | |||||||
Percentage of original issue discounts | 22.00% | ||||||
Original issue discounts | $ 2,450 | ||||||
20% Promissory Note Due on October 20 ,2018 [Member] | |||||||
Repayment of debt | 25,000 | ||||||
Net book value | $ 186,000 | ||||||
Payment term | 10 monthly instalments | One year | |||||
Percentage of original issue discounts | 24.00% | ||||||
Original issue discounts | $ 1,200 | ||||||
Interest repayable | $ 460 | ||||||
15% Promissory Note Due on April 16, 2021 [Member] | |||||||
Original issue discounts | 3,850 | ||||||
15% Promissory Note Due on May 12, 2021 [Member] | |||||||
Original issue discounts | 8,000 | ||||||
15% Promissory Note Due on May 22, 2021 [Member] | |||||||
Original issue discounts | $ 15,000 | ||||||
15% Promissory Note Due on April 3, 2021 [Member] | |||||||
Percentage of penalty charge | 10.00% | ||||||
Total Loan | $ 40,000 | ||||||
15% Promissory Note Due on April 3, 2021 [Member] | Series F Preferred Stock [Member] | |||||||
Debt conversion price (in dollars per share) | $ 6,739 |
LOANS PAYABLE (Details Narrat_2
LOANS PAYABLE (Details Narrative 1) - USD ($) | Jan. 11, 2019 | Nov. 30, 2020 | Feb. 29, 2020 |
Warrant exercise price (in dollars per share) | $ 0.0024 | $ 106 | |
20% Promissory Note Due on October 20 ,2018 [Member] | |||
Repayment of debt | $ 25,000 | ||
Net book value | $ 186,000 | ||
Payment term | 10 monthly instalments | One year | |
Percentage of original issue discounts | 24.00% | ||
Original issue discounts | $ 1,200 | ||
15% Promissory Note Due on August 31, 2021 [Member] | |||
Percentage of penalty charge | 10.00% | ||
Total Loan | $ 60,000 | ||
15% Promissory Note Due on August 31, 2021 [Member] | Series F Preferred Stock [Member] | |||
Debt conversion price (in dollars per share) | $ 6,739 | ||
15% Promissory Note Due on June 2, 2021 [Member] | |||
Original issue discounts | $ 12,000 | ||
15% Promissory Note Due on June 9, 2021 [Member] | |||
Original issue discounts | 6,000 | ||
15% Promissory Note Due on June 12, 2021 [Member] | |||
Original issue discounts | 10,000 | ||
15% Promissory Note Due on June 16, 2021 [Member] | |||
Original issue discounts | $ 7,000 | ||
15% Promissory Note Due on September 8, 2021 [Member] | |||
Percentage of penalty charge | 10.00% | ||
Total Loan | $ 10,000 | ||
15% Promissory Note Due on September 8, 2021 [Member] | Series F Preferred Stock [Member] | |||
Debt conversion price (in dollars per share) | $ 6,739 | ||
15% Promissory Note Due on September 15, 2022 [Member] | |||
Original issue discounts | $ 50,000 | ||
15% Promissory Note Due on March 6, 2023 [Member] | |||
Payment term | Principal and interest repayable in 28 monthly instalments commencing December 6, 2020, the first 6 months at $2,000 per month, the remaining 22 payments at $ 8,500 per month. | ||
15% Promissory Note Due on November 12, 2023 [Member] | |||
Original issue discounts | $ 10,000 | ||
Number of warrants issued | 70,000,000 | ||
Warrant exercise price (in dollars per share) | $ 0.00165 | ||
Warrant term | 3 years | ||
15% Promissory Note Due on October 22, 2023 [Member] | |||
Payment term | Principal and interest repayable in 28 monthly instalments commencing December 6, 2020, the first 6 months at $2,000 per month, the remaining 22 payments at $ 8,500 per month. | ||
15% Promissory Note Due on November 23, 2023 [Member] | |||
Original issue discounts | $ 25,000 | ||
Number of warrants issued | 230,000,000 | ||
Warrant exercise price (in dollars per share) | $ 0.00165 | ||
Warrant term | 3 years |
DERIVATIVE LIABILITIES (Details
DERIVATIVE LIABILITIES (Details) | 9 Months Ended |
Nov. 30, 2020Number$ / shares | |
Strike price | $ / shares | $ 0.00165 |
Dividend Yield [Member] | |
Fair value measurement | 0 |
Maximum [Member] | |
Strike price | $ / shares | $ 0.002 |
Maximum [Member] | Fair Value Of Company Common Stock[Member] | |
Fair value measurement | 0.004 |
Maximum [Member] | Expected Volatility [Member] | |
Fair value measurement | 383.4 |
Maximum [Member] | Risk Free Interest Rate [Member] | |
Fair value measurement | 0.09 |
Maximum [Member] | Expected Term [Member] | |
Expected term (years) | 6 months |
Minimum [Member] | |
Strike price | $ / shares | $ 0.0006 |
Minimum [Member] | Fair Value Of Company Common Stock[Member] | |
Fair value measurement | 0.0011 |
Minimum [Member] | Expected Volatility [Member] | |
Fair value measurement | 167.5 |
Minimum [Member] | Risk Free Interest Rate [Member] | |
Fair value measurement | 0.07 |
Minimum [Member] | Expected Term [Member] | |
Expected term (years) | 1 month 8 days |
DERIVATIVE LIABILITES (Details
DERIVATIVE LIABILITES (Details 1) | 9 Months Ended | |
Nov. 30, 2020USD ($) | ||
Balance as of February 29, 2020 | $ 6,890,688 | [1] |
Balance as of November 30, 2020 | 3,261,457 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Balance as of February 29, 2020 | 6,890,688 | |
Release of derivative liability on conversion of convertible notes payable | (2,601,903) | |
Change in fair value of derivative liabilities | (1,027,328) | |
Balance as of November 30, 2020 | $ 3,261,457 | |
[1] | Derived from audited information |
DERIVATIVE LIABILITIES (Detai_2
DERIVATIVE LIABILITIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 29, 2020 | [1] | |
Derivative Liability [Abstract] | ||||||
Derivative liabilities | $ 3,261,457 | $ 3,261,457 | $ 6,890,688 | |||
Due to equity conversions derivative liability | $ 873,673 | $ 109,987 | $ 2,601,903 | $ 493,405 | ||
[1] | Derived from audited information |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) (Details) | 9 Months Ended |
Nov. 30, 2020$ / sharesshares | |
Number of Warrants, Outstanding [Roll Forward] | |
Outstanding at beginning | 2,043 |
Issued | 300,000,000 |
Exercised | |
Forfeited and cancelled | |
Outstanding at ending | 300,002,043 |
Warrants, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Outstanding at beginning | $ / shares | $ 106 |
Issued | $ / shares | 0.0016 |
Outstanding at ending | $ / shares | $ 0.0024 |
Warrants, Options, Outstanding, Weighted Average Remaining Contractual Life [Roll Forward] | |
Outstanding at beginning | 1 year 9 months 22 days |
Issued | 2 years 11 months 23 days |
Outstanding at ending | 2 years 11 months 23 days |
STOCKHOLDERS' DEFICIT (Details
STOCKHOLDERS' DEFICIT (Details 1) | 9 Months Ended |
Nov. 30, 2020$ / shares | |
Strike price | $ 0.00165 |
Fair value of Company's common stock | $ 0.0011 |
Dividend yield | 0.00% |
Expected volatility | 404.80% |
Expected term (years) | 3 years |
Minimum [Member] | |
Strike price | $ 0.0006 |
Risk free interest rate | 0.39% |
Maximum [Member] | |
Strike price | $ 0.002 |
Risk free interest rate | 0.41% |
STOCKHOLDERS' EQUITY (DEFICIT_2
STOCKHOLDERS' EQUITY (DEFICIT) (Details Narrative) - USD ($) | Dec. 14, 2020 | Jul. 22, 2020 | Mar. 27, 2020 | Aug. 24, 2018 | Dec. 01, 2020 | Aug. 31, 2020 | Nov. 30, 2020 | Nov. 30, 2019 | Dec. 10, 2020 | Feb. 29, 2020 |
Number of common stock, authorized | 5,000,000,000 | 5,000,000,000 | ||||||||
Common stock, par value (in dollars per shares) | $ 0.00001 | $ 0.00001 | ||||||||
Description of reverse stock split | 10,000:1 | 100:1 | ||||||||
Principal amount | $ 1,980,547 | |||||||||
Interest paid | 2,630 | $ 40,815 | ||||||||
Stock-based compensation adjustment to additional paid in capital | $ 362,084 | |||||||||
Convertible Notes Payable [Member] | ||||||||||
Number of common stock, authorized | 1,889,155,010 | |||||||||
Fees converted | $ 20,500 | |||||||||
Accrued interest payable | 3,199,416 | |||||||||
Principal amount | 2,094,934 | |||||||||
Aggregate grant date fair value | 300,000 | |||||||||
Convertible Notes Payable [Member] | ||||||||||
Accrued interest payable | 1,083,982 | |||||||||
Principal amount | 2,094,934 | |||||||||
Interest paid | $ 1,083,982 | |||||||||
Number of common stock shares issued on conversion (in shares) | 300,000,000 | |||||||||
Subsequent Event [Member] | Convertible Notes Payable [Member] | ||||||||||
Accrued interest payable | $ 75,375 | $ 1,593,544 | ||||||||
Principal amount | $ 235,000 | $ 1,460,794 | ||||||||
Series F Preferred Stock [Member] | ||||||||||
Number of shares issued (in shares) | 1,000 | |||||||||
Number of shares cancelled (in shares) | 816 | 816 | ||||||||
Series F Preferred Stock [Member] | Subsequent Event [Member] | ||||||||||
Number of shares issued (in shares) | 110 | |||||||||
fair value of stock | $ 362,084 | |||||||||
Series F Preferred Stock [Member] | Subsequent Event [Member] | Convertible Notes Payable [Member] | ||||||||||
Number of shares issued (in shares) | 55 |
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 | Nov. 30, 2020 |
Total | $ 20,000 | $ 20,000 | $ 20,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 60,000 | $ 15,000 | $ 10,000 | $ 10,000 | $ 7,500 | $ 7,500 | $ 5,000 | $ 5,000 | $ 180,000 | |
Subsequent Event [Member] | |||||||||||||||||
Total | $ 120,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 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 | Apr. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 28, 2019 |
Rent expense | $ 3,000 | $ 2,000 | $ 14,800 | $ 6,000 | |||||||||||||||||
Description of settlement | Company paid $40,500. As of this filing the November 2019 through July 2020 instalments are in arrears. The Company repaid $10,000 towards these arrears | ||||||||||||||||||||
Settlement payment | $ 20,000 | $ 20,000 | $ 20,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 60,000 | $ 15,000 | $ 10,000 | $ 10,000 | $ 7,500 | $ 7,500 | $ 5,000 | $ 5,000 | 180,000 | |||||
Accured expenses | $ 139,500 | $ 180,000 | |||||||||||||||||||
Robotic Assistance Devices, LLC ("RAD") [Member] | |||||||||||||||||||||
Entity address | The Company currently maintains an office at 1218-1222 Magnolia Ave, Suite 106 Bldg. H ,Corona, California. | ||||||||||||||||||||
Mailing Address [Member] | Robotic Assistance Devices, LLC ("RAD") [Member] | |||||||||||||||||||||
Entity address | RAD maintains a mailing address for 31103 Ranch Viejo Road, Suite d2114. | ||||||||||||||||||||
Yearly nominal fee for mailing | $ 264 | ||||||||||||||||||||
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 $180,000 in June 2019 payable in 14 monthly instalments. | ||||||||||||||||||||
WeSecure Robotics, Inc [Member] | Unpaid Consulting Fees Payable [Member] | |||||||||||||||||||||
Non-payment balance | 125,924 | ||||||||||||||||||||
WeSecure Robotics, Inc [Member] | Labor Code Violations [Member] | |||||||||||||||||||||
Non-payment balance | 48,434 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Numerator: | ||||||||
Net income (loss) available to common shareholders | $ 3,408,305 | $ (9,018,241) | $ 1,975,276 | $ (3,396,031) | $ (375,234) | $ 690,606 | $ (3,634,660) | $ (3,080,659) |
Add: interest expense on convertible debt | 479,387 | 225,109 | 1,503,148 | 608,965 | ||||
Add Penalty interest on convertible debt | 494,428 | 939,705 | ||||||
Add (less) loss (gain) on change of derivative liabilities | (5,354,622) | 2,108,596 | (1,027,328) | (367,971) | ||||
Net income (loss) adjusted for common stock equivalents | $ (972,502) | $ (1,062,326) | $ (2,219,135) | $ (2,839,665) | ||||
Denominator: | ||||||||
Weighted average shares - basic (in shares) | 679,536,441 | 312,730 | 470,273,731 | 185,596 | ||||
Net income (loss) per share - basic (in dollars per share) | $ 0 | $ (3.40) | $ 0 | $ (15.30) | ||||
Dilutive effect of common stock equivalents: | ||||||||
Convertible Debt (in shares) | ||||||||
Preferred shares (in shares) | ||||||||
Warrants | ||||||||
Dilutive effect of common stock equivalents, total | ||||||||
Denominator: | ||||||||
Weighted average shares - diluted (in shares) | 679,536,441 | 312,730 | 470,273,731 | 185,596 | ||||
Net income (loss) per share - diluted (in dollars per share) | $ 0 | $ (3.40) | $ 0 | $ (15.30) |
EARNINGS (LOSS) PER SHARE (De_2
EARNINGS (LOSS) PER SHARE (Details 1) - shares | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Total | 20,551,701,667 | 15,183,551 | 20,551,701,667 | 15,183,551 |
Series F Preferred Stock [Member] | ||||
Total | 6,519,028,347 | 1,328,832 | 6,519,028,347 | 1,328,832 |
Convertible notes and accrued interest [Member] | ||||
Total | 13,732,671,277 | 13,852,676 | 13,732,671,277 | 13,852,676 |
Warrants [Member] | ||||
Total | 300,002,043 | 2,043 | 300,002,043 | 2,043 |
ROBOTIC ASSISTANCE DEVICES GR_3
ROBOTIC ASSISTANCE DEVICES GROUP, INC. CONSOLIDATION (Details) - USD ($) | Nov. 30, 2020 | Feb. 29, 2020 | [1] | Nov. 30, 2019 | Feb. 28, 2019 |
Robotic Assistance Devices Group Inc Consolidation | |||||
Cash | $ 249,297 | $ 13,307 | $ 16,239 | $ 21,192 | |
Accounts receivable | 111,709 | $ 50,117 | |||
Other liabilities | (11,675) | ||||
Net liabilities contributed | $ (11,508) | ||||
[1] | Derived from audited information |
ROBOTIC ASSISTANCE DEVICES GR_4
ROBOTIC ASSISTANCE DEVICES GROUP, INC. CONSOLIDATION (Details Narrative) | 9 Months Ended |
Nov. 30, 2020USD ($) | |
Robotic Assistance Devices, LLC ("RAD") [Member] | |
Repayment of the loan | $ 50,200 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Dec. 14, 2020 | Dec. 10, 2020 | Dec. 10, 2020 | Jan. 31, 2021 | Jan. 31, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | Jan. 01, 2021 | Dec. 28, 2020 | Feb. 29, 2020 |
Principal amount | $ 1,980,547 | |||||||||
Interest paid | $ 2,630 | $ 40,815 | ||||||||
Exercised price of warrant | $ 0.0024 | $ 106 | ||||||||
Warrant maturity term | 2 years 11 months 23 days | 1 year 9 months 22 days | ||||||||
Number of cashless warrant exercised | 300,002,043 | 2,043 | ||||||||
Subsequent Event [Member] | RAD Inc. [Mmember] | ||||||||||
Operating lease term | 15 months | 15 months | ||||||||
Description of lease | Lease commencing December 18, 2020 and ending March 31, 2022. | |||||||||
Amount of lease paid | $ 3,859 | |||||||||
Amount of security deposit | 3,859 | $ 3,859 | ||||||||
Subsequent Event [Member] | Series F Preferred Stock [Member] | ||||||||||
Number of share issued for services (in shares) | 110 | |||||||||
Value of share issued for services | $ 362,084 | |||||||||
Subsequent Event [Member] | Convertible Note [Member] | ||||||||||
Number of shares converted (in shares) | 436,567,860 | |||||||||
Value of shares converted | 3,054,338 | |||||||||
Principal amount | $ 1,460,794 | 1,460,794 | $ 161,480 | $ 161,480 | ||||||
Interest paid | 1,593,544 | $ 100,471 | ||||||||
Value of shares issued | $ 3,054,338 | |||||||||
Issaunce date | Dec. 10, 2020 | |||||||||
Maturity date | Dec. 10, 2023 | |||||||||
Interest rate | 12.00% | 12.00% | ||||||||
Number of warrant purchased | 250,000,000 | 250,000,000 | ||||||||
Exercised price of warrant | $ 0.002 | $ 0.002 | ||||||||
Warrant maturity term | 3 years | 3 years | ||||||||
Fair value of warrant | $ 550,000 | |||||||||
Subsequent Event [Member] | Additional Convertible Notes [Member] | ||||||||||
Value of shares converted | $ 310,375 | 39,211,688 | ||||||||
Principal amount | 235,000 | $ 2,683,357 | 2,683,357 | |||||||
Interest paid | 75,375 | 1,237,811 | ||||||||
Value of shares issued | $ 310,375 | $ 3,921,168 | ||||||||
Issaunce date | Dec. 14, 2020 | Dec. 10, 2020 | ||||||||
Maturity date | Dec. 10, 2023 | Dec. 10, 2023 | ||||||||
Interest rate | 12.00% | 12.00% | 12.00% | |||||||
Number of warrant purchased | 25,000,000 | 450,000,000 | 450,000,000 | 131,345,178 | 145,741,573 | |||||
Exercised price of warrant | $ 0.002 | $ 0.002 | $ 0.002 | |||||||
Warrant maturity term | 3 years | 3 years | 3 years | |||||||
Fair value of warrant | $ 182,500 | $ 990,000 | ||||||||
Number of cashless warrant exercised | 125,000,000 | 119,000,000 | ||||||||
Subsequent Event [Member] | Additional Convertible Notes [Member] | Series F Preferred Stock [Member] | ||||||||||
Number of shares converted (in shares) | 55 | |||||||||
Value of shares converted | $ 1,151,166 |