Cover
Cover - shares | 3 Months Ended | |
May 31, 2022 | Jul. 07, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | May 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --02-28 | |
Entity File Number | 000-55079 | |
Entity Registrant Name | ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC. | |
Entity Central Index Key | 0001498148 | |
Entity Tax Identification Number | 27-2343603 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 10800 Galaxie Avenue | |
Entity Address, City or Town | Ferndale | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48220 | |
City Area Code | 877 | |
Local Phone Number | 787-6268 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,945,967,695 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | May 31, 2022 | Feb. 28, 2022 |
Current assets: | ||
Cash | $ 921,629 | $ 4,648,146 |
Accounts receivable, net | 364,720 | 429,469 |
Device parts inventory, net | 1,609,248 | 1,530,657 |
Prepaid expenses and deposits | 320,169 | 442,164 |
Total current assets | 3,215,766 | 7,050,436 |
Operating lease asset | 1,296,944 | 1,331,605 |
Revenue earning devices, net of accumulated depreciation of $506,075 and $434,661, respectively | 811,750 | 709,063 |
Fixed assets, net of accumulated depreciation of $71,646 and $49,065, respectively | 209,101 | 137,952 |
Trademarks | 28,723 | 28,723 |
Security deposit | 21,239 | 21,239 |
Total assets | 5,583,523 | 9,279,018 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,070,410 | 968,853 |
Advances payable | 1,594 | 1,594 |
Customer deposits | 10,000 | |
Current operating lease liability | 250,168 | 254,027 |
Current portion of deferred variable payment obligation | 388,227 | 325,600 |
Current portion of convertible notes payable, net of discount of $0 and $0, respectively | 3,500 | 3,500 |
Loan payable - related party | 196,796 | 193,556 |
Incentive compensation plan payable | 641,000 | 479,500 |
Current portion of loans payable, net of discount of $0 and $14,745, respectively | 1,004,708 | |
Vehicle loan - current portion | 38,522 | 38,522 |
Current portion of accrued interest payable | 1,260,271 | |
Derivative liability | 7,587 | 7,587 |
Total current liabilities | 2,597,804 | 4,547,718 |
Non-current operating lease liability | 1,031,392 | 1,057,579 |
Loans payable, net of discount of $4,504,793 and $4,905,076, respectively | 20,066,853 | 20,309,069 |
Deferred variable payment obligation | 2,525,000 | 2,525,000 |
Accrued interest payable | 3,365,296 | 1,816,009 |
Total liabilities | 29,586,345 | 30,255,375 |
Stockholders’ deficit: | ||
Preferred stock, value, issued | ||
Common Stock, $0.00001 par value; 5,000,000,000 shares authorized 4,869,091,936 and 4,735,210,360 shares issued and outstanding, respectively | 48,692 | 47,353 |
Additional paid-in capital | 74,659,458 | 73,015,576 |
Preferred stock to be issued | 99,086 | 99,086 |
Accumulated deficit | (98,815,940) | (94,144,254) |
Total stockholders’ deficit | (24,002,822) | (20,976,357) |
Total liabilities and stockholders’ deficit | 5,583,523 | 9,279,018 |
Series E Preferred Stock [Member] | ||
Stockholders’ deficit: | ||
Preferred stock, value, issued | 3,350 | 3,350 |
Total stockholders’ deficit | 3,350 | 3,350 |
Series F Preferred Stock [Member] | ||
Stockholders’ deficit: | ||
Preferred stock, value, issued | 2,532 | 2,532 |
Total stockholders’ deficit | 101,618 | 101,618 |
Series G Preferred Stock [Member] | ||
Stockholders’ deficit: | ||
Preferred stock, value, issued |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | May 31, 2022 | Feb. 28, 2022 |
Accumulated depreciation, revenue earning devices | $ 506,075 | $ 434,661 |
Accumulated depreciation, fixed assets | 71,646 | 49,065 |
Discount of current portion of convertible notes payable | 0 | 0 |
Discount of current portion of loans payable | 0 | 14,745 |
Discount of loans payable | $ 4,504,793 | $ 4,905,076 |
Preferred stock, authorized | 15,545,650 | 15,545,650 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
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, shares, issued | 4,869,091,936 | 4,735,210,360 |
Common stock, shares, outstanding | 4,869,091,936 | 4,735,210,360 |
Series E Preferred Stock [Member] | ||
Preferred stock, authorized | 4,350,000 | 4,350,000 |
Preferred stock, shares issued | 3,350,000 | 3,350,000 |
Preferred stock, shares outstanding | 3,350,000 | 3,350,000 |
Preferred stock, par value (in dollars per shares) | $ 0.001 | $ 0.001 |
Series F Preferred Stock [Member] | ||
Preferred stock, authorized | 4,350 | 4,350 |
Preferred stock, shares issued | 2,532 | 2,532 |
Preferred stock, shares outstanding | 2,532 | 2,532 |
Preferred stock, par value (in dollars per shares) | $ 1 | $ 1 |
Series G Preferred Stock [Member] | ||
Preferred stock, authorized | 4,350,000 | 4,350,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, par value (in dollars per shares) | $ 0.001 | $ 0.001 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Income Statement [Abstract] | ||
Revenues | $ 385,157 | $ 560,334 |
Cost of Goods Sold | 293,724 | 110,926 |
Gross Profit | 91,433 | 449,408 |
Operating expenses: | ||
Research and development (including related party charges of $1,001,734 (2021-$478,951)) | 1,023,735 | 634,645 |
General and administrative | 2,400,392 | 1,899,792 |
Depreciation and amortization | 93,995 | 37,643 |
Operating lease cost and rent | 69,967 | 28,874 |
Total operating expenses | 3,588,089 | 2,600,954 |
Loss from operations | (3,496,656) | (2,151,546) |
Other income (expense), net: | ||
Change in fair value of derivative liabilities | 179,439 | |
Interest expense | (1,175,030) | (948,450) |
(Loss) on settlement of debt | (32,984,361) | |
Total other income (expense), net | (1,175,030) | (33,753,372) |
Net income (loss) | $ (4,671,686) | $ (35,904,918) |
Net income (loss) per share - basic | $ 0 | $ (0.01) |
Net income (loss) per share - diluted | $ 0 | $ (0.01) |
Weighted average common share outstanding - basic | 4,798,657,871 | 3,489,517,478 |
Weighted average common share outstanding - diluted | 4,798,657,871 | 3,489,517,478 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) | 3 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Income Statement [Abstract] | ||
Related party charges of research and development | $ 1,001,734 | $ 478,951 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDER'S DEFICIT (Unaudited) - USD ($) | Series E Preferred Stock [Member] | Series F Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Feb. 28, 2021 | $ 4,350 | $ 176,869 | $ 32,294 | $ 16,764,554 | $ (31,521,754) | $ (14,543,687) |
Beginning balance (in shares) at Feb. 28, 2021 | 4,350,000 | 2,799 | 3,229,426,884 | |||
Series F preferred shares and warrants issued with deferred variable payment obligation amendment agreement | $ 40 | 33,015,174 | 33,015,214 | |||
Series F preferred shares and warrants issued with deferred variable payment obligation amendment agreement (in shares) | 40 | |||||
Series F preferred shares cancelled in exchange for promissory notes | $ (83) | (6,732,752) | (6,732,835) | |||
Series F preferred shares cancelled in exchange for promissory notes (in shares) | (83) | |||||
Series F preferred shares issued on exercise of warrants | $ 38 | (38) | ||||
Series F preferred shares issued on exercise of warrants (in shares) | 38 | |||||
Series F preferred shares converted to common shares | $ (78) | $ 3,164 | (3,086) | |||
Series F preferred shares converted to common shares (in shares) | (78) | 316,345,998 | ||||
Warrants issued as part of a debt issuance | 4,749,006 | 4,749,006 | ||||
Stock based compensation | 69,350 | 69,350 | ||||
Net income | (35,904,918) | (35,904,918) | ||||
Ending balance, value at May. 31, 2021 | $ 4,350 | $ 176,786 | $ 35,458 | 47,862,208 | (67,426,672) | (19,347,870) |
Ending balance (in shares) at May. 31, 2021 | 4,350,000 | 2,716 | 3,545,772,882 | |||
Beginning balance, value at Feb. 28, 2022 | $ 3,350 | $ 101,618 | $ 47,353 | 73,015,576 | (94,144,254) | (20,976,357) |
Beginning balance (in shares) at Feb. 28, 2022 | 3,350,000 | 2,532 | 4,735,210,360 | |||
Issuance of shares, net of $117,157 issuance costs | $ 1,339 | 1,643,883 | 1,645,222 | |||
Issuance of shares, net of 117,157 issuance costs (in shares) | 133,881,576 | |||||
Rounding | (1) | (1) | ||||
Net income | (4,671,686) | (4,671,686) | ||||
Ending balance, value at May. 31, 2022 | $ 3,350 | $ 101,618 | $ 48,692 | $ 74,659,458 | $ (98,815,940) | $ (24,002,822) |
Ending balance (in shares) at May. 31, 2022 | 3,350,000 | 2,532 | 4,869,091,936 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDER'S DEFICIT (Unaudited) (Parenthetical) | 3 Months Ended |
May 31, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance cost of shares | $ 117,157 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
May 31, 2022 | May 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (4,671,686) | $ (35,904,918) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 93,995 | 37,643 |
Revenue earning device sold and expensed in cost of sales | 3,411 | |
Bad debts expense | 105,000 | |
Inventory provision | 25,000 | |
Reduction of right of use asset | 30,046 | 15,822 |
Accretion of lease liability | 36,355 | 13,052 |
Stock based compensation | 161,500 | 69,350 |
Change in fair value of derivative liabilities | (179,439) | |
Amortization of debt discounts | 415,029 | 317,269 |
(Gain) loss on settlement of debt | 32,984,361 | |
Increase in related party accrued payroll and interest | 3,240 | 80,760 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (40,251) | (466,887) |
Prepaid expenses and deposits on inventory | 126,610 | (80,000) |
Device parts inventory | (283,209) | (253,762) |
Accounts payable and accrued expenses | 101,557 | (225,006) |
Customer deposits | (10,000) | |
Accrued expense, related party | 20,998 | |
Operating lease liability payments | (66,401) | (28,874) |
Balance owed WeSecure | (122,000) | |
Current portion of deferred variable payment obligations for payments | 62,627 | 131,428 |
Accrued interest payable | 289,016 | 546,016 |
Net cash used in operating activities | (3,621,572) | (3,040,776) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of fixed assets | (88,214) | (15,362) |
Cash paid for security deposit | (15,880) | |
Net cash used in investing activities | (88,214) | (31,242) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Share proceeds net of issuance costs | 1,645,222 | |
Proceeds from loans payable | 5,426,146 | |
Repayment of loans payable | (1,661,953) | (264,189) |
Repayment of convertible debt | (65,000) | |
Net borrowings(repayments) on loan payable - related party | (121,147) | |
Net cash provided by financing activities | (16,731) | 4,975,810 |
Net change in cash | (3,726,517) | 1,903,792 |
Cash, beginning of period | 4,648,146 | 1,044,418 |
Cash, end of period | 921,629 | 2,948,210 |
Supplemental disclosure of cash and non-cash transactions: | ||
Cash paid for interest | 342,138 | 114,710 |
Cash paid for income taxes | ||
Noncash investing and financing activities: | ||
Right of use asset for operating lease liability | 1,275,970 | |
Transfer from device parts inventory to fixed assets | 179,619 | 70,162 |
Exchange of notes payable for Series F preferred shares | 6,732,835 | |
Discount applied to face value of loans | 6,162,945 | |
Warrants issued as part of debt issuance | 4,749,006 | |
Series F preferred shares converted to common shares | 3,086 | |
Series F preferred shares issued on exercise of warrants | $ 38 |
GENERAL INFORMATION
GENERAL INFORMATION | 3 Months Ended |
May 31, 2022 | |
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 an LLC. On July 25, 2017, Robotic Assistance Devices LLC converted to a C Corporation, Robotic Assistance Devices, Inc., through the issuance of 10,000 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 2,450 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 | 3 Months Ended |
May 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | 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 three months ended May 31, 2022, the Company had negative cash flow from operating activities of $ 3,621,572 98,815,940 617,962 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 raise an additional $ 15 million to $ 50 million before the end of the fiscal year. Management is committed to raise either non-dilutive funds or minimally dilutive funds. There is no assurance that these funds will be able to be raised nor can we provide assurance that these possible raises may not have dilutive effects. The company began raising money through it’s S-3 this year and made improvements in paying off debt, investing in inventory and at May 31, 2022 had $921,629 of cash on hand. Management is committed to raise either non-dilutive funds or minimally dilutive funds. There is no assurance that these funds will be able to be raised nor can we provide assurance that these possible raises may not have dilutive effects. The Company this fiscal period through to June 30, 2022 has raised an additional $2.5 million net of issuance costs through the sale of its common shares and paid approximately $1.6 million in current debt. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 3 Months Ended |
May 31, 2022 | |
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 May 27, 2022. 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, Robotic Assistance Devices Mobile, Inc., On the Move Experience, LLC and On the 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 three months ended May 31, 2022 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 principles 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 preferred stock and 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 was an allowance of $138,890 and $33,890 provided as of May 31, 2022 and February 28, 2022, respectively. 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 of both May 31, 2022 and February 28, 2021 there was a valuation reserve of $90,000 and $65,000, respectively. 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 five Computer equipment and software 2 3 Office equipment 4 years Manufacturing equipment 7 years Warehouse equipment 5 years Tooling 2 years Demo Devices 4 years Vehicles 3 years Leasehold improvements 5 years, the life of the lease 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 8, 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, 2023, but the Company does not expect the Tax Act to have a material impact on the Company’s consolidated financial statements Leases 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. Our CEO and Chairman holds sufficient shares of the Company’s voting preferred stock that give sufficient voting rights under the articles of incorporation and bylaws of the Company such that the CEO and Chairman can at any time unilaterally vote to increase the number of authorized shares of common stock of the Company, without the need to call a general meeting of common shareholders of the Company. 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: Fair Value Measurement Using Amount at Level 1 Level 2 Level 3 May 31, 2022 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 641,000 $ — $ — $ 641,000 Derivative liability – conversion features pursuant to convertible notes payable $ 7,587 $ — $ — $ 7,587 February 28, 2022 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 479,500 $ — $ — $ 479,500 Derivative liability – conversion features pursuant to convertible notes payable $ 7,587 $ — $ — $ 7,587 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 Issued Accounting Pronouncements Recently Adopted Accounting Standards In January 2020, the FASB issued new guidance intended to clarify certain interactions between accounting standards related to equity securities, equity method investments and certain derivatives. The guidance addresses accounting for the transition into and out of the equity method of accounting and measuring certain purchased options and forward contracts to acquire investments. The Company adopted the new guidance effective February 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption. In August 2020, the FASB issued amended guidance on the accounting for convertible instruments and contracts in an entity’s own equity. The guidance removes the separation model for convertible debt instruments and preferred stock, amends requirements for conversion options to be classified in equity as well as amends diluted earnings per share (EPS) calculations for certain convertible debt instruments. The amended guidance is effective for interim and annual periods in 2022. The application of the amendments in the new guidance are to be applied either on a modified retrospective or a retrospective basis. We are currently assessing the effect that the adoption of this standard will have on the Company’s consolidated financial statements upon adoption. Recently Issued Accounting Standards Not Yet Adopted In March 2020, the FASB issued optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for accounting for contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The optional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In October 2021, the FASB issued amended guidance that requires acquiring entities to recognize and measure contract assets and liabilities in a business combination in accordance with existing revenue recognition guidance. The amended guidance is effective for interim and annual periods in 2023 and is to be applied prospectively. Early adoption is permitted on a retrospective basis to the beginning of the fiscal year of adoption. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations. In November 2021, the FASB issued new guidance to increase the transparency of transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The guidance requires annual disclosures of such transactions to include the nature of the transactions and the significant terms and conditions, the accounting treatment and the impact to the company’s financial statements. The guidance is effective for annual periods beginning in 2022 and is to be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of adoption on its consolidated financial statements. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
May 31, 2022 | |
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 Three Months Ended Device rental activities $ 239,805 $ 125,992 Direct sales of goods and services 145,352 434,342 $ 385,157 $ 560,334 |
LEASES
LEASES | 3 Months Ended |
May 31, 2022 | |
Leases | |
LEASES | 5. LEASES We lease certain warehouses, and office space. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we did not combine lease and non-lease components. There is no lease renewal. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Below is a summary of our lease assets and liabilities at May 31, 2022 and February 28, 2022. Leases Classification May 31, 2022 February 28, 2022 Assets Operating Operating Lease Assets $ 1,296,944 $ 1,331,605 Liabilities Current Operating Current Operating Lease Liability $ 250,168 $ 254,027 Noncurrent Operating Noncurrent Operating Lease Liabilities 1,031,392 1,057,579 Total lease liabilities $ 1,281,560 $ 1,311,606 Note: As most of our leases do not provide an implicit rate, we use our incremental borrowing rate of 10% which for the leases noted above was based on the information available at commencement date in determining the present value of lease payments. We compare against loans we obtain to acquire physical assets and not loans we obtain for financing. The loans we obtain for financing are generally at significantly higher rates and we believe that physical space or vehicle rental agreements are in line with physical asset financing agreements. CAM charges were not included in operating lease expense and were expensed in general and administrative expenses as incurred. Operating lease cost and rent was $ 69,967 28,874 |
REVENUE EARNING DEVICES
REVENUE EARNING DEVICES | 3 Months Ended |
May 31, 2022 | |
Revenue Earning Devices | |
REVENUE EARNING DEVICES | 6. REVENUE EARNING DEVICES Revenue earning devices consisted of the following: May 31, 2022 February 28, 2022 Revenue earning devices $ 1,317,825 $ 1,143,724 Less: Accumulated depreciation (506,075 ) (434,661 ) $ 811,750 $ 709,063 During the three months ended May 31, 2022 the Company made total additions to revenue earning devices of $ 174,101 70,162 3,411 30,600 3,411 Depreciation expense was $ 71,414 33,005 |
FIXED ASSETS
FIXED ASSETS | 3 Months Ended |
May 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | 7. FIXED ASSETS Fixed assets consisted of the following: May 31, 2022 February 28, 2022 Automobile $ 84,880 $ 84,880 Manufacturing equipment 16,800 16,800 Demo devices 22,056 16,539 Computer equipment and software 117,873 36,742 Office equipment 15,312 15,312 Warehouse equipment 11,415 11,415 Tooling 7,082 — Leasehold improvements 5,329 5,329 280,747 187,017 Less: Accumulated depreciation (71,646 ) (49,065 ) $ 209,101 $ 137,952 During the three months ended May 31, 2022 the Company made additions of $ 93,730 5,516 15,362 Depreciation expense was $ 22,581 4,638 |
DEFERRED VARIABLE PAYMENT OBLIG
DEFERRED VARIABLE PAYMENT OBLIGATION | 3 Months Ended |
May 31, 2022 | |
Deferred Variable Payment Obligation | |
DEFERRED VARIABLE PAYMENT OBLIGATION | 8. 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 9 February 29, 2020 On May 9, 2019 the Company entered into two similar arrangements with two investors: (1) The investor would pay up to $ 400,000 4 400,000 (2) The investor would pay up to $ 50,000 1.11 50,000 These variable payments (Payments) are to be made 30 days after the end of each fiscal quarter. If the Payments would deplete RAD’s available cash by more than 30%, the Payments may be deferred for up to 12 months after the quarterly report at an interest rate of 6% per annum on the unpaid amount. In the event that at least 10% of the assets of the Company are sold by the Company, the investors would be entitled to the fair market value (FMV) of all future Payments associated with the assets sold as determined by an independent valuator to be chosen by the investors. The FMV cannot exceed 30% of the total asset disposition price defined as the total price paid for the assets plus all future Payments associated with the assets sold. In the event that the common or preferred shares are sold by the Company to a third party as to effect a change in control, then the investors must be paid the FMV of all future Payments in one lump payment. The FMV cannot exceed 30% of the share disposition price defined as the total price the third party paid for the shares plus the total value of all future Payments. 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 2.25 109,000 116,000 On December 30, 2019 the Company entered into another similar arrangement with a new investor whereby the investor would advance up to $ 100,000 1.00 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. 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 1.00 On July 1, 2020 the Company entered into a similar agreement with the first investor whereby the investor would pay up to $ 800,000 2.75 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 14.25 In summary of all agreements mentioned above if in the event that at least 10 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. As of March 1, 2021 as a result of the amendment with the first investor noted below. This aggregate asset disposition % was reduced from 43.77 % to 33.77% 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. As of February 28, 2022, the Company has accrued approximately $325,600 in Payments (February 28, 2021 -$91,587). On March 1, 2021 the first investor referred to above whose aggregate investment is $ 1,925,000 1) The rate payment was reduced from 14.25 9.65 2) The asset disposition % (see below) was reduced from 31 21 In consideration for the above changes, the investor received 40 Series F Convertible Preferred Stock and a warrant to purchase 367 1.00 38 33,015,214 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 May 31, 2022, and February 28, 2022, the long-term balances other than Payments already owed is the cash received of $ 2,525,000 2,525,000 For the three months ended May 31, 2022 and year ended February 28, 2022 , the Company has received $0 related to the deferred payment obligation since there were no new agreements during this period. The balance remains $ 2,525,000 The Payments first become payable on June 30, 2019 (unless otherwise indicated) based on the quarterly Revenues for the quarter ended May 31, 2019 and accrue every quarter thereafter. As of May 31, 2022, the Company has accrued $ 388,227 325,600 181,410 90,300 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 3 Months Ended |
May 31, 2022 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | 9. CONVERTIBLE NOTES PAYABLE Convertible notes payable consisted of the following: Balance Balance Interest Conversion May 31, February 28, Issued Maturity Rate Rate per Share 2022 2022 July 18, 2016 July 18, 2017 * 10% $0.003 (1) 3,500 3,500 3,500 3,500 Less: current portion of convertible notes payable (3,500 ) (3,500 ) Less: discount on noncurrent convertible notes payable — — Noncurrent convertible notes payable, net of discount $ — $ — Current portion of convertible notes payable $ 3,500 $ 3,500 Less: discount on current portion of convertible notes payable — — Current portion of convertible notes payable, net of discount $ 3,500 $ 3,500 __________ * This note was in default as of May 31, 2022. Default interest rate 22% (1) The conversion price is not subject to adjustment from forward or reverse stock splits. During both the three months ended May 31, 2022 and 2021, the Company incurred original issue discounts of $0, and debt discounts from derivative liabilities of $0 related to new convertible notes payable. During the three months ended May 31, 2022 and 2021, the Company recognized interest expense related to the amortization of debt discount of $0 and $81,131, respectively. The note above is unsecured. As of May 31, 2022 and February 28, 2022, the Company had total accrued interest payable of $28,454 and $28,104, respectively, all of which is classified as current. During the three months ended May 31, 2022, the Company had no convertible note activity During the three months ended May 31, 2021, the Company also had the following convertible note activity: ● The company settled convertible notes of $65,000 and accrued interest $22,525 for a cash payment of $93,984. A loss on settlement of debt of $6,459 was recorded. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
May 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 10. RELATED PARTY TRANSACTIONS For the three months ended May 31, 2022, the Company had no repayments of net advances from its loan payable-related party. For the three months ended May 31, 2021 the Company repaid net advances of $ 121,147 196,796 193,556 113,940 108,000 12 110,700 90,000 12 5,940 138,858 Pursuant to the amended Employment Agreement with its Chief Executive Officer, for the three months ended May 31, 2022 the Company accrued $161,500 of incentive compensation plan payable with a corresponding recognition of stock based compensation due to the expectation of additional awards being met. This will be payable in Series G Preferred Shares which are redeemable at the Company’s option at $ 1,000 641,000 479,500 During the three months ended May 31, 2022 and 2021, the Company was charged $ 1,001,734 478,951 |
OTHER DEBT _ VEHICLE LOAN
OTHER DEBT – VEHICLE LOAN | 3 Months Ended |
May 31, 2022 | |
Other Debt Vehicle Loan | |
OTHER DEBT – VEHICLE LOAN | 11. OTHER DEBT – VEHICLE LOAN In December 2016, RAD entered into a vehicle loan for $ 47,704 5 1,019 47,661 5 923 21,907 3,257 21,578 18,766 5,515 13,251 16,944 38,522 38,522 |
LOANS PAYABLE
LOANS PAYABLE | 3 Months Ended |
May 31, 2022 | |
Loans Payable | |
LOANS PAYABLE | 12. LOANS PAYABLE Loans payable at May 31, 2022 consisted of the following: Schedule of loans payable Annual Date Maturity Description Principal Interest Rate June 11, 2018 June 11, 2019 Promissory note (2) (#) $ — 25% January 31, 2019 June 30, 2019 Promissory note (1) (#) — 15% May 9, 2019 June 30, 2019 Promissory note (3) (#) — 15% May 31, 2019 June 30, 2019 Promissory note (4) (#) — 15% June 26, 2019 June 26, 2020 Promissory note (5) (#) — 15% September 24, 2019 June 24, 2020 Promissory note (6) (#) — 15% January 30, 2020 January 30, 2021 Promissory note (7) (#) — 15% February 27, 2020 February 27, 2021 Promissory note (8) (#) — 15% April 16, 2020 April 16, 2021 Promissory note (9) (#) — 15% May 12, 2020 May 12, 2021 Promissory note (11) (#) — 15% May 22, 2020 May 22, 2021 Promissory note (12) (#) — 15% June 2, 2020 June 2, 2021 Promissory note (13) (#) — 15% June 9, 2020 June 9, 2021 Promissory note (14) (#) — 15% June 12, 2020 June 12, 2021 Promissory note (15) (#) — 15% June 16, 2020 June 16, 2021 Promissory note (16) (#) — 15% September 15, 2020 September 15, 2022 Promissory note (17) (#) — 10% October 6, 2020 March 6, 2023 Promissory note (18) (#) — 12% November 12, 2020 November 12, 2023 Promissory note (19) (#) — 12% November 23, 2020 October 23, 2022 Promissory note (20) (#) — 15.5% November 23, 2020 November 23, 2023 Promissory note (21) (#) — 15% December 10, 2020 December 10, 2023 Promissory note (22) (#) — 12% December 10, 2020 December 10, 2023 Promissory note (23) 3,921,168 12% December 10, 2020 December 10, 2023 Promissory note (24) 3,054,338 12% December 10, 2020 December 10, 2023 Promissory note (25) 165,605 12% December 14, 2020 December 14, 2023 Promissory note (26) 310,375 12% December 30, 2020 December 30, 2023 Promissory note (27) 350,000 12% December 31, 2021 December 31, 2024 Promissory note (28) 25,000 12% December 31, 2021 December 31, 2024 Promissory note (29) 145,000 12% January 14, 2021 January 14, 2024 Promissory note (30) 550,000 12% February 22, 2021 February 22, 2024 Promissory note (31) 1,650,000 12% March 1, 2021 March 1, 2024 Promissory note (10) 6,000,000 12% June 8, 2021 June 8, 2024 Promissory note (32) 2,750,000 12% July 12, 2021 July 26, 2026 Promissory note (33) 4,000,160 7% September 14, 2021 September 14, 2024 Promissory note (34) 1,650,000 12% $ 24,571,646 Less discount on loans payable (4,504,793) Loans payable $ 20,066,853 __________ (#) Loans with a principal balance of $ 1,661,953 342,138 2,004,091 (1) Original $ 78,432 33 25,882 (2) Repayable in 12 4,562 48,000 (3) Original $ 7,850 33 2,590 (4) Original $ 86,567 33 28,567 (5) Original $ 79,104 33 26,104 (6) Original $ 12,000 3,000 (7) Original $ 11,000 2,450 (8) Original $ 5,000 1,200 (9) Original $ 13,000 3,850 (10) The unsecured note may be pre-payable at any time. Cash proceeds of $ 5,400,000 600,000 300,000,000 0.135 3 4,749,005 0 0 (11) Original $ 43,500 8,000 (12) Original $ 85,000 15,000 (13) Original $ 62,000 12,000 (14) Original $ 31,000 6,000 (15) Original $ 50,000 10,000 (16) Original $ 42,000 7,000 (17) Original $ 300,000 50,000 14,745 0 (18) Original principal of $ 150,000 (19) Original $ 110,000 10,000 70,000,000 0.00165 3 41,176 36,290 0 (20) Original principal of $ 65,000 (21) Original $ 300,000 25,000 230,000,000 0.00165 3 125,814 109,977 0 (22) Original $ 82,500 7,500 100,000,000 0.002 3 54,545 50,714 0 (23) This promissory note was issued as part of a debt settlement whereby $ 2,683,357 1,237,811 3,921,168 3,921,168 450,000,000 .002 990,000 (24) This promissory note was issued as part of a debt settlement whereby $ 1,460,794 1,593,544 3,054,338 3,054,338 250,000,000 .002 550,000 (25) This promissory note was issued as part of a debt settlement whereby $ 103,180 62,425 165,605 165,605 80,000,000 .002 176,000 (26) This promissory note was issued as part of a debt settlement whereby $ 235,000 75,375 310,375 310,375 25,000,000 .002 182,500 (27) The note, with an original principal amount of $ 350,000 35,000 50,000,000 0.025 3 271,250 13,060 263,793 (28) This promissory note was issued as part of a debt settlement whereby $ 9,200 6,944 16,144 25,000 (29) This promissory note was issued as part of a debt settlement whereby $ 79,500 28,925 108,425 145,000 (30) The note, with an original principal amount of $ 550,000 250,000 50,000,000 0.025 3 380,174 23,238 343,995 (31) The note, with an original principal balance of $ 1,650,000 150,000 100,000,000 0.135 3 1,342,857 42,874 1,368,957 (32) The note, with an original principal balance of $ 2,750,000 50,000 170,000,000 0.064 3 2,035,033 92,711 1,157,035 (33) This loan, with an original principal balance of $ 4,000,160 (34) The note, with an original principal balance of $ 1,650,000 150,000 250,000,000 0.037 3 1,284,783 31,420 1,371,013 |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 3 Months Ended |
May 31, 2022 | |
Derivative Liabilities | |
DERIVATIVE LIABILITIES | 13. DERIVATIVE LIABILITIES As of both May 31, 2022, and February 28, 2022 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 $ 7,587 |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) | 3 Months Ended |
May 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY (DEFICIT) | 14. STOCKHOLDERS’ EQUITY (DEFICIT) Summary or Preferred Stock Activity No preferred stock activity during the period Summary of Preferred Stock Warrant Activity Schedule of Summary of stock Option Activity Number of Series C Preferred Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at March 1, 2022 329 $1.00 4.50 Issued — — — Exercised — — — Forfeited and cancelled — — — Outstanding at May 31, 2022 329 $1.00 4.25 Summary of Common Stock Activity The Company issued 133,881,576 1,645,222 Summary of Common Stock Warrant Activity Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at March 1, 2022 1,216,845,661 $0.07 2.38 Issued — — — Exercised — — — Forfeited and cancelled — — — Outstanding at May 31, 2022 1,216,845,661 $0.07 2.12 For the three months ended May 31, 2022 and May 31, 2021, the Company recorded a total of $ 0 0 Summary of Common Stock Option Activity On April 9, 2021 the Company entered into an Employment Agreement with Chief Executive Officer, Steven Reinharz with a three- year term under the following terms whereby stock option awards will be granted if the following conditions are met: — A stock option award (option 1) will be granted to the employee to purchase 10,000,000 0.15 0.30 — A stock option award (option 2) will be granted to the employee to purchase 30,000,000 0.25 0.50 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
May 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. 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. The related legal costs are expensed as incurred. Purchase Commitment On August 15 ,2021 the Company entered into a memorandum of understanding with Ghost Robotics whereby the Company will modify and resell a Ghost Robotics (“Ghost”) product (“V50”) in development in exchange for the following: — the Company will pay Ghost a non refundable marketing fee of $ 500,000 100,000 September 1, 2021 40,000 — the Company will purchase $ 85,000 — Ghost agrees not to sell its V50 to three specific customers for a three-year period commencing after the first commercial sales of the V50. — the Company will re-brand their modified version of the V50 and be responsible for its testing and support. Operating Lease On December 18, 2020, the Company entered into a 15-month lease agreement for office space at 18009 Sky Park Circle Suite E, Irvine CA, 92614, commencing on December 18, 2020 through to March 31, 2022 3,859 3,859 On March 10, 2021, the Company entered into a 10 year lease agreement for q manufacturing facility at 10800 Galaxie Avenue, Ferndale, Michigan, 48220, commencing on May 1, 2021 through to April 30, 2031 15,880 15,880 On September 30, 2021, the Company entered into a 3-year lease agreement for a vehicle commencing September 30, 2021 through to April 30, 2031 with a minimum base rent of $1,538 per month. The Company paid a down payment of $18,462 On January 28, 2022, the Company entered into a 2-year lease agreement for office space at 1516 E Edinger, Santa Ana, California, 92705, commencing on February 1, 2022 through to January 31, 2024 with a minimum base rent of $1,500 per month. The Company paid a security deposit of $1,500 The Company’s leases are accounted for as operating leases. Rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. Rent expense and operating lease cost was $ 69,967 30,064 Maturity of Lease Liabilities Operating May 31, 2023 $ 250,169 May 31, 2024 244,169 May 31, 2025 213,711 May 31, 2026 207,558 May 31, 2027 207,558 May 31, 2028 and after 812,935 Total lease payments 1,936,100 Less: Interest (654,540 ) Present value of lease liabilities $ 1,281,560 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 3 Months Ended |
May 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | 16. EARNINGS (LOSS) PER SHARE The net income (loss) per common share amounts were determined as follows: For the Year Ended May 31, 2022 May 31, 2021 Numerator: Net income (loss) available to common shareholders $ (4,671,686 ) $ (35,904,918 ) Effect of common stock equivalents Add: interest expense on convertible debt 194 24,954 Add (less) loss (gain) on change of derivative liabilities — (179,439 ) Net income (loss) adjusted for common stock equivalents (4,671,492 ) (36,059,403 ) Denominator: Weighted average shares – basic 4,798,657,871 3,489,517,478 Net income (loss) per share – basic $ (0.00 ) $ (0.01 ) Denominator: Weighted average shares – diluted 4,798,657,871 3,489,517,478 Net income (loss) per share – diluted $ (0.00 ) $ (0.01 ) The anti-dilutive shares of common stock equivalents for the three months ended May 31, 2022 and 2021 were as follows: For the Year Ended May 31, 2022 May 31, 2021 Convertible notes and accrued interest 7,093,255 14,072,341 Convertible Class F Preferred Shares 16,798,367,179 12,232,916,443 Stock options and warrants 1,256,845,661 659,523,492 Total 18,062,306,095 12,906,512,276 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
May 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS Subsequent to May 31, 2022 through to July 12, 2022: — in June 2022, the Company issued 78,975,759 902,499 48,200 854,299 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 3 Months Ended |
May 31, 2022 | |
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 May 27, 2022. 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, Robotic Assistance Devices Mobile, Inc., On the Move Experience, LLC and On the 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 three months ended May 31, 2022 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 principles 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 preferred stock and 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 was an allowance of $138,890 and $33,890 provided as of May 31, 2022 and February 28, 2022, respectively. |
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 of both May 31, 2022 and February 28, 2021 there was a valuation reserve of $90,000 and $65,000, respectively. |
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 five Computer equipment and software 2 3 Office equipment 4 years Manufacturing equipment 7 years Warehouse equipment 5 years Tooling 2 years Demo Devices 4 years Vehicles 3 years Leasehold improvements 5 years, the life of the lease 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 8, 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, 2023, but the Company does not expect the Tax Act to have a material impact on the Company’s consolidated financial statements |
Leases | Leases 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. Our CEO and Chairman holds sufficient shares of the Company’s voting preferred stock that give sufficient voting rights under the articles of incorporation and bylaws of the Company such that the CEO and Chairman can at any time unilaterally vote to increase the number of authorized shares of common stock of the Company, without the need to call a general meeting of common shareholders of the Company. 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: Fair Value Measurement Using Amount at Level 1 Level 2 Level 3 May 31, 2022 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 641,000 $ — $ — $ 641,000 Derivative liability – conversion features pursuant to convertible notes payable $ 7,587 $ — $ — $ 7,587 February 28, 2022 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 479,500 $ — $ — $ 479,500 Derivative liability – conversion features pursuant to convertible notes payable $ 7,587 $ — $ — $ 7,587 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 Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently Adopted Accounting Standards In January 2020, the FASB issued new guidance intended to clarify certain interactions between accounting standards related to equity securities, equity method investments and certain derivatives. The guidance addresses accounting for the transition into and out of the equity method of accounting and measuring certain purchased options and forward contracts to acquire investments. The Company adopted the new guidance effective February 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption. In August 2020, the FASB issued amended guidance on the accounting for convertible instruments and contracts in an entity’s own equity. The guidance removes the separation model for convertible debt instruments and preferred stock, amends requirements for conversion options to be classified in equity as well as amends diluted earnings per share (EPS) calculations for certain convertible debt instruments. The amended guidance is effective for interim and annual periods in 2022. The application of the amendments in the new guidance are to be applied either on a modified retrospective or a retrospective basis. We are currently assessing the effect that the adoption of this standard will have on the Company’s consolidated financial statements upon adoption. Recently Issued Accounting Standards Not Yet Adopted In March 2020, the FASB issued optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for accounting for contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The optional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In October 2021, the FASB issued amended guidance that requires acquiring entities to recognize and measure contract assets and liabilities in a business combination in accordance with existing revenue recognition guidance. The amended guidance is effective for interim and annual periods in 2023 and is to be applied prospectively. Early adoption is permitted on a retrospective basis to the beginning of the fiscal year of adoption. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations. In November 2021, the FASB issued new guidance to increase the transparency of transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The guidance requires annual disclosures of such transactions to include the nature of the transactions and the significant terms and conditions, the accounting treatment and the impact to the company’s financial statements. The guidance is effective for annual periods beginning in 2022 and is to be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of adoption on its consolidated financial statements. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 3 Months Ended |
May 31, 2022 | |
Accounting Policies [Abstract] | |
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 | 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 five Computer equipment and software 2 3 Office equipment 4 years Manufacturing equipment 7 years Warehouse equipment 5 years Tooling 2 years Demo Devices 4 years Vehicles 3 years Leasehold improvements 5 years, the life of the lease |
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: | 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: Fair Value Measurement Using Amount at Level 1 Level 2 Level 3 May 31, 2022 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 641,000 $ — $ — $ 641,000 Derivative liability – conversion features pursuant to convertible notes payable $ 7,587 $ — $ — $ 7,587 February 28, 2022 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 479,500 $ — $ — $ 479,500 Derivative liability – conversion features pursuant to convertible notes payable $ 7,587 $ — $ — $ 7,587 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
May 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
The following table presents revenues from contracts with customers disaggregated by product/service: | The following table presents revenues from contracts with customers disaggregated by product/service: Three Months Ended Three Months Ended Device rental activities $ 239,805 $ 125,992 Direct sales of goods and services 145,352 434,342 $ 385,157 $ 560,334 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
May 31, 2022 | |
Leases | |
Below is a summary of our lease assets and liabilities at May 31, 2022 and February 28, 2022. | Below is a summary of our lease assets and liabilities at May 31, 2022 and February 28, 2022. Leases Classification May 31, 2022 February 28, 2022 Assets Operating Operating Lease Assets $ 1,296,944 $ 1,331,605 Liabilities Current Operating Current Operating Lease Liability $ 250,168 $ 254,027 Noncurrent Operating Noncurrent Operating Lease Liabilities 1,031,392 1,057,579 Total lease liabilities $ 1,281,560 $ 1,311,606 |
REVENUE EARNING DEVICES (Tables
REVENUE EARNING DEVICES (Tables) | 3 Months Ended |
May 31, 2022 | |
Revenue Earning Devices | |
Revenue earning devices consisted of the following: | Revenue earning devices consisted of the following: May 31, 2022 February 28, 2022 Revenue earning devices $ 1,317,825 $ 1,143,724 Less: Accumulated depreciation (506,075 ) (434,661 ) $ 811,750 $ 709,063 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 3 Months Ended |
May 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Fixed assets consisted of the following: | Fixed assets consisted of the following: May 31, 2022 February 28, 2022 Automobile $ 84,880 $ 84,880 Manufacturing equipment 16,800 16,800 Demo devices 22,056 16,539 Computer equipment and software 117,873 36,742 Office equipment 15,312 15,312 Warehouse equipment 11,415 11,415 Tooling 7,082 — Leasehold improvements 5,329 5,329 280,747 187,017 Less: Accumulated depreciation (71,646 ) (49,065 ) $ 209,101 $ 137,952 |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 3 Months Ended |
May 31, 2022 | |
Debt Disclosure [Abstract] | |
Convertible notes payable consisted of the following: | Convertible notes payable consisted of the following: Balance Balance Interest Conversion May 31, February 28, Issued Maturity Rate Rate per Share 2022 2022 July 18, 2016 July 18, 2017 * 10% $0.003 (1) 3,500 3,500 3,500 3,500 Less: current portion of convertible notes payable (3,500 ) (3,500 ) Less: discount on noncurrent convertible notes payable — — Noncurrent convertible notes payable, net of discount $ — $ — Current portion of convertible notes payable $ 3,500 $ 3,500 Less: discount on current portion of convertible notes payable — — Current portion of convertible notes payable, net of discount $ 3,500 $ 3,500 __________ * This note was in default as of May 31, 2022. Default interest rate 22% (1) The conversion price is not subject to adjustment from forward or reverse stock splits. |
LOANS PAYABLE (Tables)
LOANS PAYABLE (Tables) | 3 Months Ended |
May 31, 2022 | |
Loans Payable | |
Schedule of loans payable | Loans payable at May 31, 2022 consisted of the following: Schedule of loans payable Annual Date Maturity Description Principal Interest Rate June 11, 2018 June 11, 2019 Promissory note (2) (#) $ — 25% January 31, 2019 June 30, 2019 Promissory note (1) (#) — 15% May 9, 2019 June 30, 2019 Promissory note (3) (#) — 15% May 31, 2019 June 30, 2019 Promissory note (4) (#) — 15% June 26, 2019 June 26, 2020 Promissory note (5) (#) — 15% September 24, 2019 June 24, 2020 Promissory note (6) (#) — 15% January 30, 2020 January 30, 2021 Promissory note (7) (#) — 15% February 27, 2020 February 27, 2021 Promissory note (8) (#) — 15% April 16, 2020 April 16, 2021 Promissory note (9) (#) — 15% May 12, 2020 May 12, 2021 Promissory note (11) (#) — 15% May 22, 2020 May 22, 2021 Promissory note (12) (#) — 15% June 2, 2020 June 2, 2021 Promissory note (13) (#) — 15% June 9, 2020 June 9, 2021 Promissory note (14) (#) — 15% June 12, 2020 June 12, 2021 Promissory note (15) (#) — 15% June 16, 2020 June 16, 2021 Promissory note (16) (#) — 15% September 15, 2020 September 15, 2022 Promissory note (17) (#) — 10% October 6, 2020 March 6, 2023 Promissory note (18) (#) — 12% November 12, 2020 November 12, 2023 Promissory note (19) (#) — 12% November 23, 2020 October 23, 2022 Promissory note (20) (#) — 15.5% November 23, 2020 November 23, 2023 Promissory note (21) (#) — 15% December 10, 2020 December 10, 2023 Promissory note (22) (#) — 12% December 10, 2020 December 10, 2023 Promissory note (23) 3,921,168 12% December 10, 2020 December 10, 2023 Promissory note (24) 3,054,338 12% December 10, 2020 December 10, 2023 Promissory note (25) 165,605 12% December 14, 2020 December 14, 2023 Promissory note (26) 310,375 12% December 30, 2020 December 30, 2023 Promissory note (27) 350,000 12% December 31, 2021 December 31, 2024 Promissory note (28) 25,000 12% December 31, 2021 December 31, 2024 Promissory note (29) 145,000 12% January 14, 2021 January 14, 2024 Promissory note (30) 550,000 12% February 22, 2021 February 22, 2024 Promissory note (31) 1,650,000 12% March 1, 2021 March 1, 2024 Promissory note (10) 6,000,000 12% June 8, 2021 June 8, 2024 Promissory note (32) 2,750,000 12% July 12, 2021 July 26, 2026 Promissory note (33) 4,000,160 7% September 14, 2021 September 14, 2024 Promissory note (34) 1,650,000 12% $ 24,571,646 Less discount on loans payable (4,504,793) Loans payable $ 20,066,853 __________ (#) Loans with a principal balance of $ 1,661,953 342,138 2,004,091 (1) Original $ 78,432 33 25,882 (2) Repayable in 12 4,562 48,000 (3) Original $ 7,850 33 2,590 (4) Original $ 86,567 33 28,567 (5) Original $ 79,104 33 26,104 (6) Original $ 12,000 3,000 (7) Original $ 11,000 2,450 (8) Original $ 5,000 1,200 (9) Original $ 13,000 3,850 (10) The unsecured note may be pre-payable at any time. Cash proceeds of $ 5,400,000 600,000 300,000,000 0.135 3 4,749,005 0 0 (11) Original $ 43,500 8,000 (12) Original $ 85,000 15,000 (13) Original $ 62,000 12,000 (14) Original $ 31,000 6,000 (15) Original $ 50,000 10,000 (16) Original $ 42,000 7,000 (17) Original $ 300,000 50,000 14,745 0 (18) Original principal of $ 150,000 (19) Original $ 110,000 10,000 70,000,000 0.00165 3 41,176 36,290 0 (20) Original principal of $ 65,000 (21) Original $ 300,000 25,000 230,000,000 0.00165 3 125,814 109,977 0 (22) Original $ 82,500 7,500 100,000,000 0.002 3 54,545 50,714 0 (23) This promissory note was issued as part of a debt settlement whereby $ 2,683,357 1,237,811 3,921,168 3,921,168 450,000,000 .002 990,000 (24) This promissory note was issued as part of a debt settlement whereby $ 1,460,794 1,593,544 3,054,338 3,054,338 250,000,000 .002 550,000 (25) This promissory note was issued as part of a debt settlement whereby $ 103,180 62,425 165,605 165,605 80,000,000 .002 176,000 (26) This promissory note was issued as part of a debt settlement whereby $ 235,000 75,375 310,375 310,375 25,000,000 .002 182,500 (27) The note, with an original principal amount of $ 350,000 35,000 50,000,000 0.025 3 271,250 13,060 263,793 (28) This promissory note was issued as part of a debt settlement whereby $ 9,200 6,944 16,144 25,000 (29) This promissory note was issued as part of a debt settlement whereby $ 79,500 28,925 108,425 145,000 (30) The note, with an original principal amount of $ 550,000 250,000 50,000,000 0.025 3 380,174 23,238 343,995 (31) The note, with an original principal balance of $ 1,650,000 150,000 100,000,000 0.135 3 1,342,857 42,874 1,368,957 (32) The note, with an original principal balance of $ 2,750,000 50,000 170,000,000 0.064 3 2,035,033 92,711 1,157,035 (33) This loan, with an original principal balance of $ 4,000,160 (34) The note, with an original principal balance of $ 1,650,000 150,000 250,000,000 0.037 3 1,284,783 31,420 1,371,013 |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) (Tables) | 3 Months Ended |
May 31, 2022 | |
Equity [Abstract] | |
Schedule of Summary of stock Option Activity | Schedule of Summary of stock Option Activity Number of Series C Preferred Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at March 1, 2022 329 $1.00 4.50 Issued — — — Exercised — — — Forfeited and cancelled — — — Outstanding at May 31, 2022 329 $1.00 4.25 |
Summary of Common Stock Warrant Activity | Summary of Common Stock Warrant Activity Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at March 1, 2022 1,216,845,661 $0.07 2.38 Issued — — — Exercised — — — Forfeited and cancelled — — — Outstanding at May 31, 2022 1,216,845,661 $0.07 2.12 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
May 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
The Company’s leases are accounted for as operating leases. Rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. Rent expense and operating lease cost was $69,967 | The Company’s leases are accounted for as operating leases. Rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. Rent expense and operating lease cost was $ 69,967 30,064 Maturity of Lease Liabilities Operating May 31, 2023 $ 250,169 May 31, 2024 244,169 May 31, 2025 213,711 May 31, 2026 207,558 May 31, 2027 207,558 May 31, 2028 and after 812,935 Total lease payments 1,936,100 Less: Interest (654,540 ) Present value of lease liabilities $ 1,281,560 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended |
May 31, 2022 | |
Earnings Per Share [Abstract] | |
The net income (loss) per common share amounts were determined as follows: | The net income (loss) per common share amounts were determined as follows: For the Year Ended May 31, 2022 May 31, 2021 Numerator: Net income (loss) available to common shareholders $ (4,671,686 ) $ (35,904,918 ) Effect of common stock equivalents Add: interest expense on convertible debt 194 24,954 Add (less) loss (gain) on change of derivative liabilities — (179,439 ) Net income (loss) adjusted for common stock equivalents (4,671,492 ) (36,059,403 ) Denominator: Weighted average shares – basic 4,798,657,871 3,489,517,478 Net income (loss) per share – basic $ (0.00 ) $ (0.01 ) Denominator: Weighted average shares – diluted 4,798,657,871 3,489,517,478 Net income (loss) per share – diluted $ (0.00 ) $ (0.01 ) |
The anti-dilutive shares of common stock equivalents for the three months ended May 31, 2022 and 2021 were as follows: | The anti-dilutive shares of common stock equivalents for the three months ended May 31, 2022 and 2021 were as follows: For the Year Ended May 31, 2022 May 31, 2021 Convertible notes and accrued interest 7,093,255 14,072,341 Convertible Class F Preferred Shares 16,798,367,179 12,232,916,443 Stock options and warrants 1,256,845,661 659,523,492 Total 18,062,306,095 12,906,512,276 |
GENERAL INFORMATION (Details Na
GENERAL INFORMATION (Details Narrative) - shares | Aug. 28, 2017 | May 31, 2022 | Feb. 28, 2022 | Jul. 25, 2017 |
Restructuring Cost and Reserve [Line Items] | ||||
Common stock, issued | 4,869,091,936 | 4,735,210,360 | ||
Robotic Assistance Devices L L C [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Common stock, issued | 10,000 | |||
Robotic Assistance Devices L L C [Member] | Series E Preferred Stock [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of shares isuued under acquisition | 3,350,000 | |||
Robotic Assistance Devices L L C [Member] | Series F Preferred Stock [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of shares isuued under acquisition | 2,450 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) | 3 Months Ended |
May 31, 2022 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash flow from operating activities | $ 3,621,572 |
Accumulated deficit | 98,815,940 |
Working capital | $ 617,962 |
Fixed assets are stated at cost
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 (Details) | 3 Months Ended |
May 31, 2022 | |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 2 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 3 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 4 years |
Manufacturing Facility [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 7 years |
Warehouse Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 5 years |
Tools, Dies and Molds [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 2 years |
Demo Devices [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 4 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 3 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 5 years |
The following table presents in
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: (Details) - USD ($) | May 31, 2022 | Feb. 28, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Incentive compensation plan payable revaluation of equity awards payable in Series G shares | $ 641,000 | $ 479,500 |
Derivative liability - conversion features pursuant to convertible notes payable | 7,587 | 7,587 |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Incentive compensation plan payable revaluation of equity awards payable in Series G shares | ||
Derivative liability - conversion features pursuant to convertible notes payable | ||
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Incentive compensation plan payable revaluation of equity awards payable in Series G shares | ||
Derivative liability - conversion features pursuant to convertible notes payable | ||
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Incentive compensation plan payable revaluation of equity awards payable in Series G shares | 641,000 | 479,500 |
Derivative liability - conversion features pursuant to convertible notes payable | $ 7,587 | $ 7,587 |
The following table presents re
The following table presents revenues from contracts with customers disaggregated by product/service: (Details) - USD ($) | 3 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Device rental activities | $ 239,805 | $ 125,992 |
Direct sales of goods and services | 145,352 | 434,342 |
$ 385,157 | $ 560,334 |
Below is a summary of our lease
Below is a summary of our lease assets and liabilities at May 31, 2022 and February 28, 2022. (Details) - USD ($) | May 31, 2022 | Feb. 28, 2022 |
Leases | ||
Operating Lease Assets | $ 1,296,944 | $ 1,331,605 |
Current Operating Lease Liability | 250,168 | 254,027 |
Noncurrent Operating Lease Liabilities | 1,031,392 | 1,057,579 |
Total lease liabilities | $ 1,281,560 | $ 1,311,606 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Leases | ||
Operating lease cost | $ 69,967 | $ 28,874 |
Revenue earning devices consist
Revenue earning devices consisted of the following: (Details) - USD ($) | May 31, 2022 | Feb. 28, 2022 |
Revenue Earning Devices | ||
Revenue earning devices | $ 1,317,825 | $ 1,143,724 |
Less: Accumulated depreciation | (506,075) | (434,661) |
$ 811,750 | $ 709,063 |
REVENUE EARNING DEVICES (Detail
REVENUE EARNING DEVICES (Details Narrative) - USD ($) | 3 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Revenue earning | $ 385,157 | $ 560,334 |
Depreciation expense | 93,995 | 37,643 |
Robotic Assistance Devices L L C [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Revenue earning | 174,101 | 70,162 |
Deferred Gain on Disposal | 3,411 | |
Depreciation expense | 71,414 | $ 33,005 |
Robotic Assistance Devices L L C [Member] | Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Disposed of a revenue earning device | 3,411 | |
Robotic Assistance Devices L L C [Member] | Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Disposed of a revenue earning device | $ 30,600 |
Fixed assets consisted of the f
Fixed assets consisted of the following: (Details) - USD ($) | May 31, 2022 | Feb. 28, 2022 |
Property, Plant and Equipment [Line Items] | ||
Gross | $ 280,747 | $ 187,017 |
Less: Accumulated depreciation | (71,646) | (49,065) |
Fixed assets, net of accumulated depreciation | 209,101 | 137,952 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 84,880 | 84,880 |
Manufacturing Facility [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 16,800 | 16,800 |
Demo Devices [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 22,056 | 16,539 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 117,873 | 36,742 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 15,312 | 15,312 |
Warehouse Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 11,415 | 11,415 |
Tools, Dies and Molds [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 7,082 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | $ 5,329 | $ 5,329 |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - Robotic Assistance Devices L L C [Member] - USD ($) | 3 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Additions to fixed assets | $ 93,730 | $ 15,362 |
Assets transfers from inventory | 5,516 | |
Depreciation expense | $ 22,581 | $ 4,638 |
DEFERRED VARIABLE PAYMENT OBL_2
DEFERRED VARIABLE PAYMENT OBLIGATION (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Mar. 02, 2021 USD ($) $ / shares shares | Aug. 27, 2020 USD ($) | Jul. 02, 2020 USD ($) | Apr. 22, 2020 USD ($) | Feb. 29, 2020 USD ($) | Dec. 30, 2019 USD ($) | Nov. 18, 2019 USD ($) | May 09, 2019 USD ($) | Feb. 01, 2019 USD ($) | May 31, 2022 USD ($) | May 31, 2021 USD ($) shares | Aug. 27, 2021 | Feb. 28, 2022 USD ($) | May 28, 2022 USD ($) | |
Principal amount | $ 24,571,646 | |||||||||||||
Equity Method Investment, Aggregate Cost | $ 1,925,000 | |||||||||||||
Total payment obligation | 2,525,000 | $ 2,525,000 | ||||||||||||
Accrued Payment | 388,227 | 325,600 | ||||||||||||
Default on payments | $ 181,410 | $ 90,300 | ||||||||||||
Investor [Member] | ||||||||||||||
Maximum amount of debt | $ 1,925,000 | $ 800,000 | $ 100,000 | $ 100,000 | $ 900,000 | |||||||||
Percentage of exchange rate | 0.1425 | 0.0275 | 0.0100 | 0.0100 | 0.09 | |||||||||
Debt Instrument, Date of First Required Payment | Feb. 29, 2020 | |||||||||||||
Description of variable payments terms | These variable payments (Payments) are to be made 30 days after the end of each fiscal quarter. If the Payments would deplete RAD’s available cash by more than 30%, the Payments may be deferred for up to 12 months after the quarterly report at an interest rate of 6% per annum on the unpaid amount. | |||||||||||||
Description of disposition price | The FMV cannot exceed 30% of the share disposition price defined as the total price the third party paid for the shares plus the total value of all future Payments. | 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. As of March 1, 2021 as a result of the amendment with the first investor noted below. This aggregate asset disposition % was reduced from 43.77 % to 33.77% | ||||||||||||
Principal amount | $ 109,000 | $ 225,000 | ||||||||||||
Advance amount | 116,000 | |||||||||||||
Investor [Member] | Series F Preferred Stock [Member] | ||||||||||||||
Purchase of warrant | shares | 367 | 38 | ||||||||||||
Exercise price | $ / shares | $ 1 | |||||||||||||
Fair value of warrants | $ 33,015,214 | |||||||||||||
Investor [Member] | Maximum [Member] | ||||||||||||||
Percentage of exchange rate | 0.1425 | |||||||||||||
Percentage of total asset disposition price | 0.31 | |||||||||||||
Investor [Member] | Minimum [Member] | ||||||||||||||
Percentage of exchange rate | 0.0965 | |||||||||||||
Percentage of total asset disposition price | 0.21 | |||||||||||||
Investor One [Member] | ||||||||||||||
Maximum amount of debt | 400,000 | $ 400,000 | ||||||||||||
Percentage of exchange rate | 0.04 | |||||||||||||
Investor Two [Member] | ||||||||||||||
Maximum amount of debt | $ 50,000 | $ 50,000 | ||||||||||||
Percentage of exchange rate | 0.0111 | |||||||||||||
Investor Four [Member] | ||||||||||||||
Percentage of exchange rate | 0.0225 | |||||||||||||
Investor Three [Member] | ||||||||||||||
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. | |||||||||||||
Investor Five [Member] | ||||||||||||||
Description of variable payments terms | 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 | |||||||||||||
Investor Eight [Member] | ||||||||||||||
Percentage of assets sold | 10% | |||||||||||||
Investor Eight [Member] | ||||||||||||||
Total payment obligation | $ 2,525,000 | 2,525,000 | ||||||||||||
Proceeds from payment obligation | $ 2,525,000 | $ 2,525,000 |
Convertible notes payable consi
Convertible notes payable consisted of the following: (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
May 31, 2022 | Jul. 18, 2016 | Feb. 28, 2022 | Jul. 18, 2021 | |||
Short-Term Debt [Line Items] | ||||||
Total convertible notes payable | $ 3,500 | $ 3,500 | ||||
Less: current portion of convertible notes payable | (3,500) | (3,500) | ||||
Less: discount on noncurrent convertible notes payable | ||||||
Noncurrent convertible notes payable, net of discount | ||||||
Current portion of convertible notes payable | 3,500 | 3,500 | ||||
Less: discount on current portion of convertible notes payable | 0 | |||||
Current portion of convertible notes payable, net of discount | $ 3,500 | 3,500 | ||||
Convertible Notes Payable 12 Membe [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Debt Instrument, Issuance Date | Jul. 18, 2017 | [1] | Jul. 18, 2016 | |||
Convertible Notes Payable 12 [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Conversion rate per share | [2] | $ 0.003 | ||||
Total convertible notes payable | $ 3,500 | $ 3,500 | ||||
[1]This note was in default as of May 31, 2022. Default interest rate 22%[2]The conversion price is not subject to adjustment from forward or reverse stock splits. |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) | 3 Months Ended |
May 31, 2021 | |
Debt Disclosure [Abstract] | |
Description Of Business Activity | The company settled convertible notes of $65,000 and accrued interest $22,525 for a cash payment of $93,984. A loss on settlement of debt of $6,459 was recorded. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 3 Months Ended | 12 Months Ended | |
May 31, 2022 USD ($) $ / shares | May 31, 2021 USD ($) | Feb. 28, 2022 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Net borrowings on loan payable - related party | $ 121,147 | ||
Loan payable - related party | $ 196,796 | $ 193,556 | |
Balance due to related party | 113,940 | $ 110,700 | |
Deferred salary payable to related party | $ 108,000 | ||
Percentage of interest expense due to related party | 0.12 | 0.12 | |
Interest Expense, Related Party | $ 90,000 | ||
Interest accrued | $ 5,940 | 138,858 | |
Incentive Compensation Plan Payable | 641,000 | $ 479,500 | |
Professional fees | $ 1,001,734 | $ 478,951 | |
Incentives Compensation Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share price | $ / shares | $ 1,000 |
OTHER DEBT _ VEHICLE LOAN (Deta
OTHER DEBT – VEHICLE LOAN (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Nov. 30, 2017 | Dec. 31, 2016 | May 31, 2022 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Vehicle loan secured by automobile | $ 24,571,646 | |||||
Proceeds of disposal of vehicle offset against vehicle loan | $ 18,766 | |||||
Remaining asset value | 5,515 | |||||
Robotic Assistance Devices L L C [Member] | Secured Debt [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Vehicle loan secured by automobile | $ 47,661 | $ 47,704 | ||||
Debt Instrument, Term | 5 years | 5 years | ||||
Payment of debt interest and principal | $ 923 | $ 1,019 | ||||
Outstanding balance of the loan | $ 21,907 | |||||
Loss on sale of vehicle | 3,257 | |||||
Current portion vehicle loan | $ 21,578 | $ 21,578 | ||||
Reclassification of fixed assets to vehicle for disposal | 13,251 | |||||
Long-term vehicle loan | 16,944 | $ 16,944 | ||||
Total vehicle loan | $ 38,522 | $ 38,522 |
Schedule of loans payable (Deta
Schedule of loans payable (Details) - USD ($) | 3 Months Ended | ||||
Sep. 16, 2018 | Aug. 11, 2018 | May 31, 2022 | Feb. 28, 2022 | ||
Short-Term Debt [Line Items] | |||||
Date of issuance | [1] | May 22, 2020 | |||
Principal amount | $ 24,571,646 | ||||
Less discount on loans payable | (4,504,793) | ||||
Notes Payable | 20,066,853 | ||||
Unamortized discount | $ 0 | ||||
Promissory Note Payable 3030 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [2] | Jun. 11, 2018 | |||
Debt instrument, periodic payment | $ 4,562 | ||||
Long-term Debt | $ 48,000 | ||||
Promissory Notes Payable 958 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [3] | Jan. 31, 2019 | |||
Principal amount | $ 78,432 | ||||
Debt Conversion, Converted Instrument, Rate | 33% | ||||
Debt Conversion, Original Debt, Amount | $ 25,882 | ||||
Promissory Notes Payable 968 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [4] | May 09, 2019 | |||
Principal amount | $ 7,850 | ||||
Debt Conversion, Converted Instrument, Rate | 33% | ||||
Debt Conversion, Original Debt, Amount | $ 2,590 | ||||
Promissory Notes Payable 977 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [5] | May 31, 2019 | |||
Principal amount | $ 86,567 | ||||
Debt Conversion, Converted Instrument, Rate | 33% | ||||
Debt Conversion Original Debt Amount 2 | $ 28,567 | ||||
Promissory Note Payable 303022 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [6] | Jun. 26, 2019 | |||
Principal amount | $ 79,104 | ||||
Debt Conversion, Converted Instrument, Rate | 33% | ||||
Debt Conversion Original Debt Amount 2 | $ 26,104 | ||||
Promissory Note Payable 303 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [7] | Sep. 24, 2019 | |||
Principal amount | $ 12,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 3,000 | ||||
Promissory Note Payable 304 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [8] | Jan. 30, 2020 | |||
Principal amount | $ 11,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 2,450 | ||||
Promissory Note Payable 305 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [9] | Feb. 27, 2020 | |||
Principal amount | $ 5,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 1,200 | ||||
Promissory Note Payable 306 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [10] | Apr. 16, 2020 | |||
Principal amount | $ 13,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 3,850 | ||||
Promissory Note Payable 307 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [11] | May 12, 2020 | |||
Principal amount | $ 43,500 | ||||
Debt Conversion Original Debt Amount 2 | $ 8,000 | ||||
Promissory Note Payable309 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [12] | Jun. 02, 2020 | |||
Principal amount | $ 62,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 12,000 | ||||
Promissory Note Payable 310 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [13] | Jun. 09, 2020 | |||
Principal amount | $ 31,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 6,000 | ||||
Promissory Note Payable 311 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [14] | Jun. 12, 2020 | |||
Principal amount | $ 50,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 10,000 | ||||
Promissory Note Payable 312 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [15] | Jun. 16, 2020 | |||
Principal amount | $ 42,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 7,000 | ||||
Promissory Note Payable 316 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Sep. 15, 2020 | ||||
Principal amount | $ 300,000 | ||||
Debt Conversion Original Debt Amount 2 | 50,000 | ||||
Amortization expense | 14,745 | ||||
Unamortized discount | $ 0 | ||||
Promissory Note Payable 318 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Oct. 06, 2020 | ||||
Principal amount | $ 150,000 | ||||
Promissory Note Payable 319 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Nov. 12, 2020 | ||||
Principal amount | $ 110,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 10,000 | ||||
Number of warrants issued | 70,000,000 | ||||
Exercise price | $ 0.00165 | ||||
Class of warrant or right warrants term | 3 years | ||||
Debt discount | $ 41,176 | ||||
Amortization expense | 36,290 | ||||
Unamortized discount | $ 0 | ||||
Promissory Note Payable 320 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Nov. 23, 2020 | ||||
Principal amount | $ 65,000 | ||||
Promissory Note Payable 321 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Nov. 23, 2020 | ||||
Principal amount | $ 300,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 25,000 | ||||
Number of warrants issued | 230,000,000 | ||||
Exercise price | $ 0.00165 | ||||
Class of warrant or right warrants term | 3 years | ||||
Debt discount | $ 125,814 | ||||
Amortization expense | 109,977 | ||||
Unamortized discount | $ 0 | ||||
Promissory Note Payable 322 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Dec. 10, 2020 | ||||
Principal amount | $ 82,500 | ||||
Debt Conversion Original Debt Amount 2 | $ 7,500 | ||||
Number of warrants issued | 100,000,000 | ||||
Exercise price | $ 0.002 | ||||
Class of warrant or right warrants term | 3 years | ||||
Debt discount | $ 54,545 | ||||
Amortization expense | 50,714 | ||||
Unamortized discount | $ 0 | ||||
Promissory Note Payable 323 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Dec. 10, 2020 | ||||
Principal amount | $ 3,921,168 | ||||
Convertible Debt | 2,683,357 | ||||
Interest Payable Current And Noncurrent 1 | $ 1,237,811 | ||||
Promissory Note Payable 323 [Member] | Warrant [Member] | |||||
Short-Term Debt [Line Items] | |||||
Exercise price | $ 0.002 | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 3,921,168 | ||||
Stock Issued During Period, Shares, New Issues | 450,000,000 | ||||
Fair Value Of Notes | $ 990,000 | ||||
Promissory Note Payable 400 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Dec. 10, 2020 | ||||
Principal amount | $ 3,054,338 | ||||
Convertible Debt | 1,460,794 | ||||
Interest Payable Current And Noncurrent 1 | $ 1,593,544 | ||||
Promissory Note Payable 400 [Member] | Warrant [Member] | |||||
Short-Term Debt [Line Items] | |||||
Exercise price | $ 0.002 | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 3,054,338 | ||||
Stock Issued During Period, Shares, New Issues | 250,000,000 | ||||
Fair Value Of Notes | $ 550,000 | ||||
Promissory Note Payable 401 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Dec. 10, 2020 | ||||
Principal amount | $ 165,605 | ||||
Convertible Debt | 103,180 | ||||
Interest Payable Current And Noncurrent 1 | $ 62,425 | ||||
Promissory Note Payable 401 [Member] | Warrant [Member] | |||||
Short-Term Debt [Line Items] | |||||
Exercise price | $ 0.002 | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 165,605 | ||||
Stock Issued During Period, Shares, New Issues | 80,000,000 | ||||
Fair Value Of Notes | $ 176,000 | ||||
Promissory Note Payable 402 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Dec. 14, 2020 | ||||
Principal amount | $ 310,375 | ||||
Convertible Debt | 235,000 | ||||
Interest Payable Current And Noncurrent 1 | $ 75,375 | ||||
Promissory Note Payable 402 [Member] | Warrant [Member] | |||||
Short-Term Debt [Line Items] | |||||
Exercise price | $ 0.002 | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 310,375 | ||||
Stock Issued During Period, Shares, New Issues | 25,000,000 | ||||
Fair Value Of Notes | $ 182,500 | ||||
Promissory Note Payable 404 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Dec. 30, 2020 | ||||
Principal amount | $ 350,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 35,000 | ||||
Number of warrants issued | 50,000,000 | ||||
Exercise price | $ 0.025 | ||||
Class of warrant or right warrants term | 3 years | ||||
Debt discount | $ 271,250 | ||||
Amortization expense | 13,060 | ||||
Unamortized discount | $ 263,793 | ||||
Promissory Note Payable 405 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Dec. 31, 2021 | ||||
Principal amount | $ 25,000 | ||||
Convertible Debt | 9,200 | ||||
Interest Payable Current And Noncurrent 1 | 6,944 | ||||
Promissory Note Payable 405 [Member] | Warrant [Member] | |||||
Short-Term Debt [Line Items] | |||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 16,144 | ||||
Promissory Note Payable 406 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Dec. 31, 2021 | ||||
Principal amount | $ 145,000 | ||||
Convertible Debt | 79,500 | ||||
Interest Payable Current And Noncurrent 1 | 28,925 | ||||
Promissory Note Payable 406 [Member] | Warrant [Member] | |||||
Short-Term Debt [Line Items] | |||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 108,425 | ||||
Promissory Note Payable 407 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Jan. 14, 2021 | ||||
Principal amount | $ 550,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 250,000 | ||||
Number of warrants issued | 50,000,000 | ||||
Exercise price | $ 0.025 | ||||
Class of warrant or right warrants term | 3 years | ||||
Debt discount | $ 380,174 | ||||
Amortization expense | 23,238 | ||||
Unamortized discount | $ 343,995 | ||||
Promissory Note Payable 408 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Feb. 22, 2021 | ||||
Principal amount | $ 1,650,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 150,000 | ||||
Number of warrants issued | 100,000,000 | ||||
Exercise price | $ 0.135 | ||||
Class of warrant or right warrants term | 3 years | ||||
Debt discount | $ 1,342,857 | ||||
Amortization expense | 42,874 | ||||
Unamortized discount | $ 1,368,957 | ||||
Promissory Note Payable [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | [16] | Mar. 01, 2021 | |||
Principal amount | [16] | $ 6,000,000 | |||
Debt Conversion, Original Debt, Amount | 600,000 | ||||
Proceeds from Issuance of Debt | $ 5,400,000 | ||||
Number of warrants issued | 300,000,000 | ||||
Exercise price | $ 0.135 | ||||
Class of warrant or right warrants term | 3 years | ||||
Debt discount | $ 4,749,005 | ||||
Amortization expense | 0 | ||||
Unamortized discount | $ 0 | ||||
Promissory Note Payable 01 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Jun. 08, 2021 | ||||
Principal amount | $ 2,750,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 50,000 | ||||
Number of warrants issued | 170,000,000 | ||||
Exercise price | $ 0.064 | ||||
Class of warrant or right warrants term | 3 years | ||||
Debt discount | $ 2,035,033 | ||||
Amortization expense | 92,711 | ||||
Unamortized discount | $ 1,157,035 | ||||
Promissory Note Payable 02 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Jul. 12, 2021 | ||||
Principal amount | $ 4,000,160 | ||||
Promissory Note Payable 03 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Date of issuance | Sep. 14, 2021 | ||||
Principal amount | $ 1,650,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 150,000 | ||||
Number of warrants issued | 250,000,000 | ||||
Exercise price | $ 0.037 | ||||
Class of warrant or right warrants term | 3 years | ||||
Debt discount | $ 1,284,783 | ||||
Amortization expense | 31,420 | ||||
Unamortized discount | 1,371,013 | ||||
Promissory Notes Payable 7010 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt Instrument, Payment Terms | 12 | ||||
Promissory Note Payable308 [Member] | |||||
Short-Term Debt [Line Items] | |||||
Principal amount | 85,000 | ||||
Debt Conversion Original Debt Amount 2 | $ 15,000 | ||||
[1]Original $ 85,000 15,000 12 4,562 48,000 78,432 33 25,882 7,850 33 2,590 86,567 33 28,567 79,104 33 26,104 12,000 3,000 11,000 2,450 5,000 1,200 13,000 3,850 43,500 8,000 62,000 12,000 31,000 6,000 50,000 10,000 42,000 7,000 5,400,000 600,000 300,000,000 0.135 3 4,749,005 0 0 |
LOANS PAYABLE (Details Narrativ
LOANS PAYABLE (Details Narrative) | May 31, 2022 USD ($) |
Short-Term Debt [Line Items] | |
Debt Instrument, Face Amount | $ 24,571,646 |
Debt Instrument accrued interest | 342,138 |
Total debt instrument face ammount | 2,004,091 |
Principal Balance [Member] | |
Short-Term Debt [Line Items] | |
Debt Instrument, Face Amount | $ 1,661,953 |
DERIVATIVE LIABILITIES (Details
DERIVATIVE LIABILITIES (Details Narrative) - USD ($) | May 31, 2022 | Feb. 28, 2022 |
Derivative Liabilities | ||
Derivative liability | $ 7,587 | $ 7,587 |
Schedule of Summary of stock Op
Schedule of Summary of stock Option Activity (Details) - Preferred Stock [Member] - Warrant [Member] - $ / shares | 3 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended |
May 31, 2022 | Oct. 31, 2021 | Nov. 30, 2021 | Feb. 28, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Outstanding at beginning | 329 | |||
Weighted average exercise price at beginning | $ 1 | |||
Weighted average remaining years ending | 4 years 2 months 30 days | 4 years 6 months | ||
Issued | ||||
Issued | ||||
Exercised | ||||
Exercised | ||||
Forfeited and cancelled | 0 | |||
Forfeited and cancelled | ||||
Outstanding at ending | 329 | 329 | ||
Weighted average exercise price at ending | $ 1 | $ 1 |
Summary of Common Stock Warrant
Summary of Common Stock Warrant Activity (Details) - Common Stock [Member] - Warrant [Member] | 3 Months Ended |
May 31, 2022 $ / shares shares | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Outstanding at beginning | 1,216,845,661 |
Weighted average exercise price at beginning | $ / shares | $ 0.07 |
Outstanding at beginning (in years) | 2 years 4 months 17 days |
Issued | |
Issued | $ / shares | |
Exercised | |
Exercised | $ / shares | |
Forfeited and cancelled | |
Outstanding at ending | 1,216,845,661 |
Weighted average exercise price at ending | $ / shares | $ 0.07 |
Outstanding at ending (in years) | 2 years 1 month 13 days |
STOCKHOLDERS_ EQUITY (DEFICIT_2
STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($) | 3 Months Ended | ||
Apr. 09, 2021 | May 31, 2022 | May 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Shares Issue | 133,881,576 | ||
Net proceeds | $ 1,645,222 | ||
Share based compensation | $ 0 | $ 0 | |
Employment Agreement [Member] | Chief Executive Officer [Member] | Stock Option Award [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of shares issued (in shares) | 10,000,000 | ||
Exercise price (in dollars per share) | $ 0.15 | ||
Share Price | $ 0.30 | ||
Employment Agreement [Member] | Chief Executive Officer [Member] | Stock Option Award1 [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of shares issued (in shares) | 30,000,000 | ||
Exercise price (in dollars per share) | $ 0.25 | ||
Share Price | $ 0.50 |
The Company_s leases are accoun
The Company’s leases are accounted for as operating leases. Rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. Rent expense and operating lease cost was $69,967 (Details) | May 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
May 31, 2023 | $ 250,169 |
May 31, 2024 | 244,169 |
May 31, 2025 | 213,711 |
May 31, 2026 | 207,558 |
May 31, 2027 | 207,558 |
May 31, 2028 and after | 812,935 |
Total lease payments | 1,936,100 |
Less: Interest | (654,540) |
Present value of lease liabilities | $ 1,281,560 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Jan. 28, 2022 | Aug. 15, 2021 | Mar. 10, 2021 | Dec. 18, 2020 | May 31, 2022 | May 31, 2021 | Sep. 30, 2022 | Feb. 28, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Research and development | $ 1,023,735 | $ 634,645 | ||||||
Entity address | the Company entered into a 15-month lease agreement for office space at 18009 Sky Park Circle Suite E, Irvine CA, 92614, commencing on December 18, 2020 through to March 31, 2022 | |||||||
Annual rent | $ 15,880 | $ 3,859 | ||||||
Security deposit | $ 15,880 | $ 3,859 | $ 21,239 | $ 21,239 | ||||
[custom:EntityAddressAddressDescription1] | the Company entered into a 2-year lease agreement for office space at 1516 E Edinger, Santa Ana, California, 92705, commencing on February 1, 2022 through to January 31, 2024 with a minimum base rent of $1,500 per month. The Company paid a security deposit of $1,500 | the Company entered into a 10 year lease agreement for q manufacturing facility at 10800 Galaxie Avenue, Ferndale, Michigan, 48220, commencing on May 1, 2021 through to April 30, 2031 | the Company entered into a 3-year lease agreement for a vehicle commencing September 30, 2021 through to April 30, 2031 with a minimum base rent of $1,538 per month. The Company paid a down payment of $18,462 | |||||
Ghost Robotics [Member] | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Non refundable marketing fee | $ 500,000 | |||||||
Payable | $ 100,000 | |||||||
Maturity date | Sep. 01, 2021 | |||||||
Paid in instalments | $ 40,000 | |||||||
Research and development | $ 85,000 |
The net income (loss) per commo
The net income (loss) per common share amounts were determined as follows: (Details) - USD ($) | 3 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income (loss) available to common shareholders | $ (4,671,686) | $ (35,904,918) |
Add: interest expense on convertible debt | 194 | 24,954 |
Add (less) loss (gain) on change of derivative liabilities | (179,439) | |
Net income (loss) adjusted for common stock equivalents | $ (4,671,492) | $ (36,059,403) |
Weighted average shares - basic (in shares) | 4,798,657,871 | 3,489,517,478 |
Net income (loss) per share – basic | $ 0 | $ (0.01) |
Weighted average shares - diluted (in shares) | 4,798,657,871 | 3,489,517,478 |
Net income (loss) per share – diluted | $ 0 | $ (0.01) |
The anti-dilutive shares of com
The anti-dilutive shares of common stock equivalents for the three months ended May 31, 2022 and 2021 were as follows: (Details) - shares | 3 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 18,062,306,095 | 12,906,512,276 |
Series F Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 16,798,367,179 | 12,232,916,443 |
Stock Options And Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 1,256,845,661 | 659,523,492 |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 7,093,255 | 14,072,341 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Share Purchase Agreement [Member] | 1 Months Ended |
Jun. 30, 2022 USD ($) shares | |
Subsequent Event [Line Items] | |
Number of shares issued (in shares) | shares | 78,975,759 |
Proceeds From Issuance Of Debt Gross | $ 902,499 |
Proceeds from Debt, Net of Issuance Costs | 48,200 |
Proceeds from Issuance of Debt | $ 854,299 |