Cover
Cover - shares | 6 Months Ended | |
Aug. 31, 2023 | Sep. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Aug. 31, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
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 | 7,160,712,056 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Aug. 31, 2023 | Feb. 28, 2023 | |
Current assets: | |||
Cash | $ 1,512,112 | $ 939,759 | [1] |
Accounts receivable, net | 260,671 | 265,024 | [1] |
Device parts inventory, net | 1,689,930 | 1,637,899 | [1] |
Prepaid expenses and deposits | 675,258 | 596,310 | [1] |
Total current assets | 4,137,971 | 3,438,992 | [1] |
Operating lease asset | 1,148,682 | 1,208,440 | [1] |
Revenue earning devices, net of accumulated depreciation of $1,044,294 and $779,839, respectively | 1,756,228 | 1,235,219 | [1] |
Fixed assets, net of accumulated depreciation of $276,530 and $182,002, respectively | 328,591 | 315,888 | [1] |
Trademarks | 27,080 | 27,080 | [1] |
Investment at cost | 50,000 | 50,000 | [1] |
Security deposit | 21,239 | 21,239 | [1] |
Total assets | 7,469,791 | 6,296,858 | [1] |
Current liabilities: | |||
Accounts payable and accrued expenses | 1,276,960 | 1,343,379 | [1] |
Advances payable- related party | 1,594 | 1,594 | [1] |
Customer deposits | 34,698 | 9,900 | [1] |
Current operating lease liability | 239,669 | 248,670 | [1] |
Current portion of deferred variable payment obligation | 667,634 | 542,177 | [1] |
Loan payable - related party | 260,746 | 206,516 | [1] |
Incentive compensation plan payable | 1,104,000 | 979,000 | [1] |
Current portion of loans payable, net of discount of $966,767 and $1,651,597 | 19,403,219 | 9,918,389 | [1] |
Vehicle loan - current portion | 38,522 | 38,522 | [1] |
Current portion of accrued interest payable | 5,726,894 | 2,761,446 | [1] |
Total current liabilities | 28,753,936 | 16,049,593 | [1] |
Non-current operating lease liability | 901,321 | 950,541 | [1] |
Loans payable, net of discount of $4,654,370 and $4,130,291, respectively | 7,175,990 | 15,554,069 | [1] |
Deferred variable payment obligation | 2,525,000 | 2,525,000 | [1] |
Accrued interest payable | 2,061,093 | 3,060,656 | [1] |
Total liabilities | 41,417,340 | 38,139,859 | [1] |
Stockholders' deficit: | |||
Preferred stock, value | [1] | ||
Common Stock, $0.00001 par value; 10,000,000,000 shares authorized 7,039,806,793 and 5,848,741,599 shares issued, issuable and outstanding, respectively | 70,399 | 58,489 | [1] |
Additional paid-in capital | 87,445,715 | 80,247,252 | [1] |
Preferred stock to be issued | 99,086 | 99,086 | [1] |
Accumulated deficit | (121,568,632) | (112,253,711) | [1] |
Total stockholders' deficit | (33,947,549) | (31,843,001) | [1] |
Total liabilities and stockholders' deficit | 7,469,791 | 6,296,858 | [1] |
Series G Preferred Stock [Member] | |||
Stockholders' deficit: | |||
Preferred stock, value | [1] | ||
Series E Preferred Stock [Member] | |||
Stockholders' deficit: | |||
Preferred stock, value | 3,350 | 3,350 | [1] |
Total stockholders' deficit | 3,350 | 3,350 | |
Series F Preferred Stock [Member] | |||
Stockholders' deficit: | |||
Preferred stock, value | 2,533 | 2,533 | [1] |
Total stockholders' deficit | $ 101,619 | $ 101,619 | |
[1]Derived from audited information |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Aug. 31, 2023 | Feb. 28, 2023 |
Accumulated depreciation, revenue earning devices | $ 1,044,294 | $ 779,839 |
Accumulated depreciation, fixed assets | 276,530 | 182,002 |
Discount of current portion of loans payable | 966,767 | 1,651,597 |
Discount of loans payable | $ 4,654,370 | $ 4,130,291 |
Preferred stock, authorized | 15,545,650 | 15,545,650 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per shares) | $ 0.00001 | $ 0.00001 |
Common stock, authorized | 10,000,000,000 | 10,000,000,000 |
Preferred stock, shares issued | 7,039,806,793 | 5,848,741,599 |
Common stock, shares, outstanding | 7,039,806,793 | 5,848,741,599 |
Series G Preferred Stock [Member] | ||
Preferred stock, authorized | 100,000 | 100,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, par value (in dollars per shares) | $ 0.001 | $ 0.001 |
Series E Preferred Stock [Member] | ||
Preferred stock, authorized | 4,350,000 | 4,350,000 |
Preferred stock, shares outstanding | 3,350,000 | 3,350,000 |
Preferred stock, shares issued | 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 outstanding | 2,533 | 2,533 |
Preferred stock, shares issued | 2,533 | 2,533 |
Preferred stock, par value (in dollars per shares) | $ 1 | $ 1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 386,363 | $ 267,484 | $ 771,571 | $ 652,641 |
Cost of Goods Sold | 89,014 | 34,214 | 180,525 | 327,938 |
Gross Profit | 297,349 | 233,270 | 591,046 | 324,703 |
Operating expenses: | ||||
Research and development (Note 10) | 794,548 | 963,786 | 1,686,305 | 1,987,521 |
General and administrative | 2,294,471 | 2,238,442 | 4,414,902 | 4,638,834 |
Depreciation and amortization | 191,041 | 145,793 | 358,983 | 239,788 |
Operating lease cost and rent | 62,541 | 63,681 | 125,083 | 133,648 |
Total operating expenses | 3,342,601 | 3,411,702 | 6,585,273 | 6,999,791 |
Loss from operations | (3,045,252) | (3,178,432) | (5,994,227) | (6,675,088) |
Other income (expense), net: | ||||
Change in fair value of derivative liabilities | 3,595 | 3,595 | ||
Interest expense | (1,753,216) | (1,002,020) | (3,359,432) | (2,177,050) |
Gain (loss) on settlement of debt | 38,740 | 3,992 | 38,740 | 3,992 |
Total other expense net | (1,714,476) | (994,433) | (3,320,692) | (2,169,463) |
Net loss | $ (4,759,728) | $ (4,172,865) | $ (9,314,919) | $ (8,844,551) |
Net loss per share - basic | $ 0 | $ 0 | $ 0 | $ 0 |
Net loss per share - diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average common share outstanding - basic | 6,568,957,612 | 4,970,040,852 | 6,266,833,467 | 4,884,349,362 |
Weighted average common share outstanding - diluted | 6,568,957,612 | 4,970,040,852 | 6,266,833,467 | 4,884,349,362 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' 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, 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 $176,672 issuance costs | $ 1,339 | 1,643,883 | 1,645,222 | ||||
Issuance of shares, net of issuance costs (in shares) | 133,881,576 | ||||||
Rounding | (1) | (1) | |||||
Net income | (4,671,686) | (4,671,686) | |||||
Ending balance, (in shares) at May. 31, 2022 | 3,350,000 | 4,869,091,936 | |||||
Ending balance, value at May. 31, 2022 | $ 3,350 | 101,618 | $ 48,692 | 74,659,458 | (98,815,940) | (24,002,822) | |
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 | ||||
Net income | (8,844,551) | ||||||
Ending balance, (in shares) at Aug. 31, 2022 | 3,350,000 | 2,532 | 5,063,354,356 | ||||
Ending balance, value at Aug. 31, 2022 | $ 3,350 | $ 101,618 | $ 50,635 | 74,111,156 | (102,988,805) | (28,722,046) | |
Beginning balance, value at May. 31, 2022 | $ 3,350 | 101,618 | $ 48,692 | 74,659,458 | (98,815,940) | (24,002,822) | |
Beginning balance, (in shares) at May. 31, 2022 | 3,350,000 | 4,869,091,936 | |||||
Issuance of shares, net of $176,672 issuance costs | $ 1,917 | 1,889,350 | 1,891,267 | ||||
Issuance of shares, net of issuance costs (in shares) | 191,691,135 | ||||||
Net income | (4,172,865) | (4,172,865) | |||||
Cashless exercise of warrants | $ 97 | (97) | |||||
Cashless exercise of warrants (in shares) | 9,688,179 | ||||||
Relative fair value of warrants issued with debt | 404,374 | 404,374 | |||||
Cancelled shares | $ (171) | 171 | |||||
Cancelled Shares (in shares) | (17,116,894) | ||||||
Exchange of 955,000,000 warrants for debt | (2,960,500) | (2,960,500) | |||||
Shares as payment for services | $ 100 | 118,400 | 118,500 | ||||
Ending balance, (in shares) at Aug. 31, 2022 | 3,350,000 | 2,532 | 5,063,354,356 | ||||
Shares as payment for services (in shares) | 10,000,000 | ||||||
Ending balance, value at Aug. 31, 2022 | $ 3,350 | $ 101,618 | $ 50,635 | 74,111,156 | (102,988,805) | (28,722,046) | |
Beginning balance, value at Feb. 28, 2023 | $ 3,350 | $ 101,619 | $ 58,489 | 80,247,252 | 112,253,711 | (31,843,001) | [1] |
Beginning balance, (in shares) at Feb. 28, 2023 | 3,350,000 | 2,533 | 5,848,741,599 | ||||
Issuance of shares, net of $176,672 issuance costs | $ 2,809 | 1,316,100 | 1,318,909 | ||||
Issuance of shares, net of issuance costs (in shares) | 280,929,190 | ||||||
Net income | 4,555,193 | (4,555,193) | |||||
Ending balance, (in shares) at May. 31, 2023 | 3,350,000 | 6,129,670,789 | |||||
Ending balance, value at May. 31, 2023 | $ 3,350 | 101,619 | $ 61,298 | 82,563,520 | 116,808,904 | (34,079,117) | |
Relative fair value of Series F warrants issued with loans payable | 947,447 | 947,447 | |||||
Stock based compensation | 52,721 | 52,721 | |||||
Beginning balance, value at Feb. 28, 2023 | $ 3,350 | $ 101,619 | $ 58,489 | 80,247,252 | 112,253,711 | (31,843,001) | [1] |
Beginning balance, (in shares) at Feb. 28, 2023 | 3,350,000 | 2,533 | 5,848,741,599 | ||||
Net income | (9,314,919) | ||||||
Ending balance, (in shares) at Aug. 31, 2023 | 3,350,000 | 2,533 | 7,039,806,793 | ||||
Shares as payment for services (in shares) | 6,500,000 | ||||||
Ending balance, value at Aug. 31, 2023 | $ 3,350 | $ 101,619 | $ 70,399 | 87,445,715 | (121,568,632) | (33,947,549) | |
Beginning balance, value at May. 31, 2023 | $ 3,350 | 101,619 | $ 61,298 | 82,563,520 | 116,808,904 | (34,079,117) | |
Beginning balance, (in shares) at May. 31, 2023 | 3,350,000 | 6,129,670,789 | |||||
Issuance of shares, net of $176,672 issuance costs | $ 9,036 | 4,787,087 | 4,796,123 | ||||
Issuance of shares, net of issuance costs (in shares) | 903,636,004 | ||||||
Net income | (4,759,728) | (4,759,728) | |||||
Shares as payment for services | $ 65 | 44,395 | 44,460 | ||||
Ending balance, (in shares) at Aug. 31, 2023 | 3,350,000 | 2,533 | 7,039,806,793 | ||||
Ending balance, value at Aug. 31, 2023 | $ 3,350 | $ 101,619 | $ 70,399 | 87,445,715 | (121,568,632) | (33,947,549) | |
Stock based compensation | $ 50,713 | $ 50,713 | |||||
[1]Derived from audited information |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' DEFICIT (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | |||
Aug. 31, 2023 | May 31, 2023 | Aug. 31, 2022 | May 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Issuance cost of shares | $ 176,672 | $ 81,285 | $ 95,293 | $ 117,157 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
CASH FLOWS USED IN OPERATING ACTIVITIES: | ||
Net loss | $ (9,314,919) | $ (8,844,551) |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 358,983 | 239,786 |
Bad debts expense | 24,730 | 145,000 |
Inventory provision | 70,000 | |
Reduction of right of use asset | 58,220 | 56,854 |
Accretion of lease liability | 66,864 | 72,090 |
Stock based compensation | 228,434 | 343,000 |
Change in fair value of derivative liabilities | (3,595) | |
Amortization of debt discounts | 1,258,198 | 671,594 |
Increase in related party accrued payroll and interest | 54,230 | 6,480 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (20,377) | (158,183) |
Prepaid expenses | (77,410) | (23,984) |
Device parts inventory | (941,261) | (632,760) |
Accounts payable and accrued expenses | 16,775 | 351,014 |
Customer deposits | 24,798 | (8,128) |
Operating lease liabilities | (125,083) | (128,944) |
Current portion of deferred variable payment obligation for payments | 125,457 | 106,120 |
Accrued interest payable | 1,965,885 | 987,737 |
Net cash used in operating activities | (6,335,216) | (6,754,462) |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Purchase of fixed assets | (3,463) | (207,197) |
Net cash used in investing activities | (3,463) | (207,197) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Share proceeds net of issuance costs | 6,115,032 | 3,255,289 |
Proceeds from loans payable | 1,050,000 | 500,000 |
Repayment of loans payable | (254,000) | (1,697,953) |
Proceeds from convertible debt and warrants issued | 619,250 | |
Net cash provided by financing activities | 6,911,032 | 2,676,586 |
Net change in cash | 572,353 | (4,285,073) |
Cash, beginning of period | 939,759 | 4,648,146 |
Cash, end of period | 1,512,112 | 363,073 |
Supplemental disclosure of cash and non-cash transactions: | ||
Cash paid for interest | 9,892 | 405,117 |
Cash paid for income taxes | ||
Noncash investing and financing activities: | ||
Transfer from device parts inventory to revenue earning devices | 889,230 | 452,526 |
Discount applied to face value of loans | 150,000 | 39,500 |
Series F warrants issued as part of debt | $ 947,447 |
GENERAL INFORMATION
GENERAL INFORMATION | 6 Months Ended |
Aug. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL INFORMATION | 1. GENERAL INFORMATION Artificial Intelligence Technology Solutions Inc. (“AITX” or the “Company”) was incorporated in Florida on March 25, 2010 and reincorporated in Nevada on February 17, 2015. On August 24, 2018, Artificial Intelligence Technology Solutions Inc., changed its name from On the Move Systems Corp (“OMVS”). Robotic Assistance Devices, LLC (“RAD”), was incorporated in the State of Nevada on July 26, 2016 as a Limited Liability Company. 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 | 6 Months Ended |
Aug. 31, 2023 | |
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 six months ended August 31, 2023, the Company had negative cash flow from operating activities of $ 6,335,216 121,568,632 24,615,965 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: 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. In March 2023, the Company entered into an equity financing agreement whereby an investor will purchase up to $ 12,500,000 200,000 300,000 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 quarter through to September 26, 2023 has raised an additional $ 5.2 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Aug. 31, 2023 | |
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 June 14, 2023. 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 six months ended August 31, 2023 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. Concentrations Loans payable At August 31, 2023 there were $ 32,200,345 27,890,506 87 31,254,345 26,540,506 85 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 $ 59,000 39,000 37 54 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 August 31, 2023 and February 28, 2023 there was a valuation reserve of $ 195,000 195,000 Revenue Earning Devices Revenue earning devices are stated at cost. Depreciation is provided on a straight-line basis over the estimated useful life of 48 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 two five Minor replacements and maintenance and repairs which do not improve or extend asset lives are expensed currently. Fixed assets consisted of the following: 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 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 no 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) two 33 26 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%. 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 Chief Executive Officer/ 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/ 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 August 31, 2023 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 1,104,000 $ — $ — $ 1,104,000 February 28, 2023 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 979,000 $ — $ — $ 979,000 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 Issued Accounting Standards Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Aug. 31, 2023 | |
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 Three Months Six Months Six Months August 31, 2023 August 31, 2022 August 31, 2023 August 31, 2022 Device rental activities $ 343,543 $ 228,214 $ 581,692 $ 468,019 Direct sales of goods and services 42,820 39,270 189,879 184,622 Revenues $ 386,363 $ 267,484 $ 771,571 652,641 |
LEASES
LEASES | 6 Months Ended |
Aug. 31, 2023 | |
Leases | |
LEASES | 5. LEASES We lease certain warehouses, and office space. Leases with an initial term of 12 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 August 31, 2023 and February 28, 2023. Leases Classification August 31, 2023 February 28, 2023 Assets Operating Operating Lease Assets $ 1,148,682 $ 1,208,440 Liabilities Current Operating Current Operating Lease Liability $ 239,669 $ 248,670 Noncurrent Operating Noncurrent Operating Lease Liabilities 901,321 950,541 Total lease liabilities $ 1,140,990 $ 1,199,211 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. Rent expense and operating lease cost was $ 62,541 125,083 63,681 133,648 |
REVENUE EARNING DEVICES
REVENUE EARNING DEVICES | 6 Months Ended |
Aug. 31, 2023 | |
Revenue Earning Devices | |
REVENUE EARNING DEVICES | 6. REVENUE EARNING DEVICES Revenue earning devices consisted of the following: August 31, 2023 February 28, 2023 Revenue earning devices $ 2,800,522 $ 2,015,058 Less: Accumulated depreciation (1,044,294 ) (779,839 ) Total $ 1,756,228 $ 1,235,219 During the three and six months ended August 31, 2023 the Company made total additions to revenue earning devices of $ 341,042 785,464 251,946 426,047 Depreciation expense was $ 141,614 264,455 116,125 187,539 |
FIXED ASSETS
FIXED ASSETS | 6 Months Ended |
Aug. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | 7. FIXED ASSETS Fixed assets consisted of the following: August 31, 2023 February 28, 2023 Automobile $ 101,680 $ 101,680 Demo devices 172,778 69,010 Tooling 101,322 101,322 Machinery and equipment 8,825 8,825 Computer equipment 150,387 150,387 Office equipment 15,312 15,312 Furniture and fixtures 21,225 21,225 Warehouse equipment 14,561 14,561 Leasehold improvements 19,031 15,568 605,121 497,890 Less: Accumulated depreciation (276,530 ) (182,002 ) $ 328,591 $ 315,888 During the three months ended August 31, 2023, the Company made additions of $ 75,057 107,230 103,767 3,463 139,946 20,693 118,983 233,676 26,479 207,197 Depreciation expense was $ 49,427 94,528 29,668 52,249 |
DEFERRED VARIABLE PAYMENT OBLIG
DEFERRED VARIABLE PAYMENT OBLIGATION | 6 Months Ended |
Aug. 31, 2023 | |
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 in exchange for a perpetual 1.00 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 $ 900,000 225,000 800,000 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 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 August 31, 2023, the Company has accrued $ 667,634 431,719 542,177 325,600 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 August 31, 2023, and February 28, 2023, the long-term balances other than Payments already owed is the cash received of $ 2,525,000 2,525,000 For both the three months and six months ended August 31, 2023 and year ended February 28, 2023, the Company has received $ 0 2,525,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 9. RELATED PARTY TRANSACTIONS For both the three months ended August 31, 2023 and August 31, 2022 , the Company had no 260,746 206,516 172,265 145,500 12 108,000 108,000 12 23,515 15,660 Pursuant to the amended Employment Agreement with its Chief Executive Officer, for the three months and six ended August 31, 2023, the Company accrued $ 62,000 63,000 125,000 224,500 1,000 1,104,000 979,000 During the three months ended August 31, 2023 and 2022, the Company was charged $ 777,260 957,395 During the six months ended August 31, 2023 and 2022, the Company was charged $ 1,659,275 1,959,129 |
OTHER DEBT _ VEHICLE LOAN
OTHER DEBT – VEHICLE LOAN | 6 Months Ended |
Aug. 31, 2023 | |
Other Debt Vehicle Loan | |
OTHER DEBT – VEHICLE LOAN | 10. OTHER DEBT – VEHICLE LOAN In December 2016, RAD entered into a vehicle loan for $ 47,704 5 November 9, 2021 1,019 47,661 5 October 24, 2022 923 0 21,907 3,257 21,578 18,766 5,515 13,251 16,944 38,522 38,522 |
LOANS PAYABLE
LOANS PAYABLE | 6 Months Ended |
Aug. 31, 2023 | |
Loans Payable | |
LOANS PAYABLE | 11. LOANS PAYABLE Loans payable at August 31, 2023 consisted of the following: Annual Date Maturity Description Principal Interest Rate July 18, 2016 July 18, 2017 Promissory note (1) * $ 3,500 22% December 10, 2020 December 10, 2023 Promissory note (2) 3,921,168 12% December 10, 2020 December 10, 2023 Promissory note (3) 3,054,338 12% December 10, 2020 December 10, 2023 Promissory note (4) 165,605 12% December 14, 2020 December 14, 2023 Promissory note (5) 310,375 12% December 30, 2020 December 30, 2023 Promissory note (6) 350,000 12% January 1, 2021 January 1, 2024 Promissory note (7) 25,000 12% January 1, 2021 January 1, 2024 Promissory note (8) 145,000 12% January 14, 2021 January 14, 2024 Promissory note (9) 550,000 12% February 22, 2021 February 22, 2024 Promissory note (10) 1,650,000 12% March 1, 2021 March 1, 2024 Promissory note (11) 6,000,000 12% June 8, 2021 June 8, 2024 Promissory note (12) 2,750,000 12% July 12, 2021 July 26, 2026 Promissory note (13) 3,830,360 7% September 14, 2021 September 14, 2024 Promissory note (14) 1,650,000 12% July 28, 2022 July 28, 2023 Promissory note (15) — 15% August 30, 2022 August 30,2024 Promissory note (16) 3,000,000 15% September 7, 2022 September 7, 2023 Promissory note (17) 370,000 15% September 8, 2022 September 8, 2023 Promissory note (18) 475,000 15% October 13, 2022 October 13, 2023 Promissory note (19) 350,000 15% October 28, 2022 October 31, 2026 Promissory note (20) 400,000 15% November 9, 2022 October 31, 2026 Promissory note (20) 400,000 15% November 10, 2022 October 31, 2026 Promissory note (20) 400,000 15% November 15, 2022 October 31, 2026 Promissory note (20) 400,000 15% January 11, 2023 October 31,2026 Promissory note (20) 400,000 15% February 6, 2023 October 31, 2026 Promissory note (20) 400,000 15% April 5. 2023 October 31, 2026 Promissory note (20) 400,000 15% April 20, 23 October 31, 2026 Promissory note (20) 400,000 15% May 11, 2023 October 31, 2026 Promissory note (20) 400,000 15% $ 32,200,346 Less: current portion of loans payable (20,369,986 ) Less: discount on non-current loans payable (4,654,370 ) Non-current loans payable, net of discount $ 7,175,990 Current portion of loans payable $ 20,369,986 Less: discount on current portion of loans payable (966,767 ) Current portion of loans payable, net of discount $ 19,403,219 * In default (1) This note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions placed on the lender. (2) This promissory note was issued as part of a debt settlement whereby $ 2,683,357 1,237,811 3,921,168 3,921,168 .002 990,000 (3) This promissory note was issued as part of a debt settlement whereby $ 1,460,794 1,593,544 3,054,338 3,054,338 .002 550,000 (4) 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 (5) 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 (6) The note, with an original principal amount of $ 350,000 35,000 50,000,000 0.025 3 271,250 271,250 52,756 92,660 100,855 (7) This promissory note was issued as part of a debt settlement whereby $ 9,200 6,944 16,144 25,000 (8) This promissory note was issued as part of a debt settlement whereby $ 79,500 28,925 108,425 145,000 (9) The note, with an original principal amount of $ 550,000 250,000 50,000,000 0.025 3 380,174 380,174 62,143 113,188 126,148 (10) The note, with an original principal balance of $ 1,650,000 150,000 100,000,000 0.135 3 1,342,857 1,342,857 50,000,000 .0164 3 950,000 220,757 379,821 732,440 (11) The unsecured note may be pre-payable at any time. Cash proceeds of $ 5,400,000 6,000,000 600,000 300,000,000 0.135 3 4,749,005 4,749,005 150,000,000 .0164 3 2,850,000 (12) The note, with an original principal balance of $ 2,750,000 50,000 170,000,000 0.064 3 2,035,033 2,035,033 85,000,000 .0164 3 1,615,000 175,789 330,699 463,519 (13) This loan, with an original principal balance of $ 4,000,160 27,000 54,000 (14) The note, with an original principal balance of $ 1,650,000 150,000 250,000,000 0.037 3 1,284,783 1,284,783 115,344 202,274 1,27,501 (15) Original $ 170,000 20,000 3,739 9,026 0 (16) A warrant holder exchanged 955,000,000 3,000,000 15 2,960,500 39,500 4,736 9,293 21,576 (17) Original $ 400,000 50,000 15,479 27,821 0 (18) Original $ 475,000 75,000 17,799 36,729 0 (19) Original $ 350,000 50,000 13,295 25,585 7,325 (20) On October 28, 2022 the Company entered into an loan facility with a lender for up to $4,000,000 including an original issue discount of $500,000. In exchange the Company will issue one series F Preferred Share, extended 329 series F warrants with a March 1, 2026 maturity to a new October 31, 2033 maturity, and issue up to 10 tranches with each tranche of $400,000, with cash proceeds of $350,000 an original issue discount of $50,000, October 31, 2026 maturity, and 61 Series F warrants with a October 31, 2033 maturity. 400,000 50,000 2,472 4,338 343,685 400,000 50,000 2,438 4,276 344,162 400,000 50,000 2,233 3,900 346,981 400,000 50,000 2,489 4,370 343,445 400,000 50,000 2,541 4,565 342,724 400,000 50,000 2,436 4,272 344,154 400,000 50,000 2,523 3,274 342,971 400,000 50,000 2,010 2,206 350,013 400,000 50,000 0 0 398,983 |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) | 6 Months Ended |
Aug. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY (DEFICIT) | 13. STOCKHOLDERS’ EQUITY (DEFICIT) Summary or Preferred Stock Activity No preferred stock activity during the period. Summary of Preferred Stock Warrant Activity Number of Series F Preferred Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at March 1, 2023 695 $1.00 10.00 Issued 183 1.00 9.88 Exercised — — — Forfeited and cancelled — — — Outstanding at August 31, 2023 878 $1.00 9.75 During the six months ended August 31, 2023, as part of debt issuance the Company issued 183 Series F Preferred Warrants to a lender for a relative fair value of $ 947,447 Summary of Common Stock Activity The Company increased authorized common shares from 7,225,000,000 10,000,000,000 For the three months ended August 31, 2023, the Company issued 903,636,004 4,972,795 4,796,193 176,672 1,184,565,194 6,372,989 6,115,032 257,956 6,500,000 44,460 83,200 38,640 12,100,000 The table below represent the common shares issued, issuable and outstanding at August 31, 2023 and February 28, 2023: Common shares August 31, 2023 February 28, 2023 Issued 7,039,806,793 5,836,641,599 Issuable — 12,100,000 Issued, issuable and outstanding 7,039,806,793 5,848,741,599 Summary of Common Stock Warrant Activity For the three months and six months ended August 31, 2023 and August 31, 2022, the Company recorded a total of $ 50,713 0 103,434 0 Summary of Common Stock Warrant Activity Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at February 28, 2023 314,217,451 $0.114 1.95 Issued — — — Exercised — — — Forfeited and cancelled — — — Outstanding at August 31, 2023 314,217,451 $0.114 1.45 Summary of Common Stock Option Activity -Employee Stock Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at February 28 , 2023 95,725,000 $0.02 4.75 Issued — — — Exercised — — — Forfeited, extinguished and cancelled (13,025,000 ) $0.02 (4.75) Outstanding at August 31, 2023 82,700,000 $0.02 4.25 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Aug. 31, 2023 | |
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. 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 with a minimum base rent of $ 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 with a minimum base rent of $ 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 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 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. 62,541 125,083 63,681 133,648 Summary of rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. Maturity of Lease Liabilities Operating August 31, 2024 $ 239,669 August 31, 2025 207,558 August 31, 2026 207,558 August 31, 2027 207,558 August 31, 2028 207,558 August 31, 2029 and after 553,488 Total lease payments 1,623,389 Less: Interest (482,399 ) Present value of lease liabilities $ 1,140,990 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Aug. 31, 2023 | |
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 Three Months Ended For the Six Months Ended August 31, August 31, 2023 2022 2023 2022 Numerator: Net income (loss) available to common shareholders $ (4,759,728 ) $ (4,172,865 ) $ (9,314,919 ) $ (8,844,551 ) Effect of common stock equivalents Add: interest expense on convertible debt — 8,543 — 8,737 Add (less) loss (gain) on settlement of debt — (3,992 ) — (3,992 ) Add (less) loss (gain) on change of derivative liabilities — (3,595 ) — (3,595 ) Net income (loss) adjusted for common stock equivalents (4,759,728 ) (4,171,909 ) (9,314,919 ) (8,843,401 ) Denominator: Weighted average shares – basic 6,568,957,612 4,970,040,852 6,266,833,467 4,884,349,362 Net income (loss) per share – basic $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 ) Dilutive effect of common stock equivalents: Convertible Debt — — — — Preferred shares — — — — Warrants — — — — — — — — Denominator: Weighted average shares – diluted 6,568,957,612 4,970,040,852 6,266,833,467 4,884,349,362 Net income (loss) per share – diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 ) The anti-dilutive shares of common stock equivalents for the three and six months ended August 31, 2023 and 2022 were as follows: For the Three Months Ended For the Six Months Ended August 31, August 31, 2023 2022 2023 2022 Convertible notes and accrued interest — 836,425,685 — 836,425,685 Convertible Series F Preferred Shares 24,286,988,436 — 24,286,988,436 — Stock options and warrants 433,767,451 401,217,451 433,767,451 401,217,451 Total 24,720,755,887 1,237,643,136 24,720,755,887 1,237,643,136 * On August 23, 2021, the Company filed amended Series F preferred shares such that Series F preferred shares are not convertible into common stock by a holder until (A) August 23, 2023 or (B) the date on which such a conversion may be required for the purpose of (i) uplisting the Company to a new stock exchange, or (ii) selling more than 50% of the Company’s assets. Had these Series F preferred shares been convertible at August 31, 2023 and 2022 the dilutive effects would be as follows: Series F Preferred shares been convertible the dilutive effects would be as follows: For the Three and Six Months Ended August 31, 2023 August 31, 2022 Convertible Series F Preferred Shares — 17,375,422,528 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Aug. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS Subsequent to August 31, 2023 through to October 12, 2023: — The Company issued 120,905,263 377,224 8,569 368,655 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Aug. 31, 2023 | |
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 June 14, 2023. 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 six months ended August 31, 2023 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. |
Concentrations | Concentrations Loans payable At August 31, 2023 there were $ 32,200,345 27,890,506 87 31,254,345 26,540,506 85 |
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 $ 59,000 39,000 37 54 |
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 August 31, 2023 and February 28, 2023 there was a valuation reserve of $ 195,000 195,000 |
Revenue Earning Devices | Revenue Earning Devices Revenue earning devices are stated at cost. Depreciation is provided on a straight-line basis over the estimated useful life of 48 |
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 two five Minor replacements and maintenance and repairs which do not improve or extend asset lives are expensed currently. Fixed assets consisted of the following: 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 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 no |
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) two 33 26 |
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%. |
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 Chief Executive Officer/ 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/ 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 August 31, 2023 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 1,104,000 $ — $ — $ 1,104,000 February 28, 2023 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 979,000 $ — $ — $ 979,000 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 Issued Accounting Standards Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Fixed assets consisted of the following: | Fixed assets consisted of the following: 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 |
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 August 31, 2023 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 1,104,000 $ — $ — $ 1,104,000 February 28, 2023 Liabilities Incentive compensation plan payable- revaluation of equity awards payable in Series G shares $ 979,000 $ — $ — $ 979,000 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
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 Three Months Six Months Six Months August 31, 2023 August 31, 2022 August 31, 2023 August 31, 2022 Device rental activities $ 343,543 $ 228,214 $ 581,692 $ 468,019 Direct sales of goods and services 42,820 39,270 189,879 184,622 Revenues $ 386,363 $ 267,484 $ 771,571 652,641 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Leases | |
Below is a summary of our lease assets and liabilities at August 31, 2023 and February 28, 2023. | Below is a summary of our lease assets and liabilities at August 31, 2023 and February 28, 2023. Leases Classification August 31, 2023 February 28, 2023 Assets Operating Operating Lease Assets $ 1,148,682 $ 1,208,440 Liabilities Current Operating Current Operating Lease Liability $ 239,669 $ 248,670 Noncurrent Operating Noncurrent Operating Lease Liabilities 901,321 950,541 Total lease liabilities $ 1,140,990 $ 1,199,211 |
REVENUE EARNING DEVICES (Tables
REVENUE EARNING DEVICES (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Revenue Earning Devices | |
Revenue earning devices consisted of the following: | Revenue earning devices consisted of the following: August 31, 2023 February 28, 2023 Revenue earning devices $ 2,800,522 $ 2,015,058 Less: Accumulated depreciation (1,044,294 ) (779,839 ) Total $ 1,756,228 $ 1,235,219 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Fixed assets consisted of the following: | Fixed assets consisted of the following: August 31, 2023 February 28, 2023 Automobile $ 101,680 $ 101,680 Demo devices 172,778 69,010 Tooling 101,322 101,322 Machinery and equipment 8,825 8,825 Computer equipment 150,387 150,387 Office equipment 15,312 15,312 Furniture and fixtures 21,225 21,225 Warehouse equipment 14,561 14,561 Leasehold improvements 19,031 15,568 605,121 497,890 Less: Accumulated depreciation (276,530 ) (182,002 ) $ 328,591 $ 315,888 |
LOANS PAYABLE (Tables)
LOANS PAYABLE (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Loans Payable | |
Loans payable at August 31, 2023 consisted of the following: | Loans payable at August 31, 2023 consisted of the following: Annual Date Maturity Description Principal Interest Rate July 18, 2016 July 18, 2017 Promissory note (1) * $ 3,500 22% December 10, 2020 December 10, 2023 Promissory note (2) 3,921,168 12% December 10, 2020 December 10, 2023 Promissory note (3) 3,054,338 12% December 10, 2020 December 10, 2023 Promissory note (4) 165,605 12% December 14, 2020 December 14, 2023 Promissory note (5) 310,375 12% December 30, 2020 December 30, 2023 Promissory note (6) 350,000 12% January 1, 2021 January 1, 2024 Promissory note (7) 25,000 12% January 1, 2021 January 1, 2024 Promissory note (8) 145,000 12% January 14, 2021 January 14, 2024 Promissory note (9) 550,000 12% February 22, 2021 February 22, 2024 Promissory note (10) 1,650,000 12% March 1, 2021 March 1, 2024 Promissory note (11) 6,000,000 12% June 8, 2021 June 8, 2024 Promissory note (12) 2,750,000 12% July 12, 2021 July 26, 2026 Promissory note (13) 3,830,360 7% September 14, 2021 September 14, 2024 Promissory note (14) 1,650,000 12% July 28, 2022 July 28, 2023 Promissory note (15) — 15% August 30, 2022 August 30,2024 Promissory note (16) 3,000,000 15% September 7, 2022 September 7, 2023 Promissory note (17) 370,000 15% September 8, 2022 September 8, 2023 Promissory note (18) 475,000 15% October 13, 2022 October 13, 2023 Promissory note (19) 350,000 15% October 28, 2022 October 31, 2026 Promissory note (20) 400,000 15% November 9, 2022 October 31, 2026 Promissory note (20) 400,000 15% November 10, 2022 October 31, 2026 Promissory note (20) 400,000 15% November 15, 2022 October 31, 2026 Promissory note (20) 400,000 15% January 11, 2023 October 31,2026 Promissory note (20) 400,000 15% February 6, 2023 October 31, 2026 Promissory note (20) 400,000 15% April 5. 2023 October 31, 2026 Promissory note (20) 400,000 15% April 20, 23 October 31, 2026 Promissory note (20) 400,000 15% May 11, 2023 October 31, 2026 Promissory note (20) 400,000 15% $ 32,200,346 Less: current portion of loans payable (20,369,986 ) Less: discount on non-current loans payable (4,654,370 ) Non-current loans payable, net of discount $ 7,175,990 Current portion of loans payable $ 20,369,986 Less: discount on current portion of loans payable (966,767 ) Current portion of loans payable, net of discount $ 19,403,219 * In default (1) This note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions placed on the lender. (2) This promissory note was issued as part of a debt settlement whereby $ 2,683,357 1,237,811 3,921,168 3,921,168 .002 990,000 (3) This promissory note was issued as part of a debt settlement whereby $ 1,460,794 1,593,544 3,054,338 3,054,338 .002 550,000 (4) 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 (5) 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 (6) The note, with an original principal amount of $ 350,000 35,000 50,000,000 0.025 3 271,250 271,250 52,756 92,660 100,855 (7) This promissory note was issued as part of a debt settlement whereby $ 9,200 6,944 16,144 25,000 (8) This promissory note was issued as part of a debt settlement whereby $ 79,500 28,925 108,425 145,000 (9) The note, with an original principal amount of $ 550,000 250,000 50,000,000 0.025 3 380,174 380,174 62,143 113,188 126,148 (10) The note, with an original principal balance of $ 1,650,000 150,000 100,000,000 0.135 3 1,342,857 1,342,857 50,000,000 .0164 3 950,000 220,757 379,821 732,440 (11) The unsecured note may be pre-payable at any time. Cash proceeds of $ 5,400,000 6,000,000 600,000 300,000,000 0.135 3 4,749,005 4,749,005 150,000,000 .0164 3 2,850,000 (12) The note, with an original principal balance of $ 2,750,000 50,000 170,000,000 0.064 3 2,035,033 2,035,033 85,000,000 .0164 3 1,615,000 175,789 330,699 463,519 (13) This loan, with an original principal balance of $ 4,000,160 27,000 54,000 (14) The note, with an original principal balance of $ 1,650,000 150,000 250,000,000 0.037 3 1,284,783 1,284,783 115,344 202,274 1,27,501 (15) Original $ 170,000 20,000 3,739 9,026 0 (16) A warrant holder exchanged 955,000,000 3,000,000 15 2,960,500 39,500 4,736 9,293 21,576 (17) Original $ 400,000 50,000 15,479 27,821 0 (18) Original $ 475,000 75,000 17,799 36,729 0 (19) Original $ 350,000 50,000 13,295 25,585 7,325 (20) On October 28, 2022 the Company entered into an loan facility with a lender for up to $4,000,000 including an original issue discount of $500,000. In exchange the Company will issue one series F Preferred Share, extended 329 series F warrants with a March 1, 2026 maturity to a new October 31, 2033 maturity, and issue up to 10 tranches with each tranche of $400,000, with cash proceeds of $350,000 an original issue discount of $50,000, October 31, 2026 maturity, and 61 Series F warrants with a October 31, 2033 maturity. 400,000 50,000 2,472 4,338 343,685 400,000 50,000 2,438 4,276 344,162 400,000 50,000 2,233 3,900 346,981 400,000 50,000 2,489 4,370 343,445 400,000 50,000 2,541 4,565 342,724 400,000 50,000 2,436 4,272 344,154 400,000 50,000 2,523 3,274 342,971 400,000 50,000 2,010 2,206 350,013 400,000 50,000 0 0 398,983 |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Equity [Abstract] | |
Summary of Preferred Stock Warrant Activity | Summary of Preferred Stock Warrant Activity Number of Series F Preferred Warrants Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at March 1, 2023 695 $1.00 10.00 Issued 183 1.00 9.88 Exercised — — — Forfeited and cancelled — — — Outstanding at August 31, 2023 878 $1.00 9.75 |
The table below represent the common shares issued, issuable and outstanding at August 31, 2023 and February 28, 2023: | The table below represent the common shares issued, issuable and outstanding at August 31, 2023 and February 28, 2023: Common shares August 31, 2023 February 28, 2023 Issued 7,039,806,793 5,836,641,599 Issuable — 12,100,000 Issued, issuable and outstanding 7,039,806,793 5,848,741,599 |
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 February 28, 2023 314,217,451 $0.114 1.95 Issued — — — Exercised — — — Forfeited and cancelled — — — Outstanding at August 31, 2023 314,217,451 $0.114 1.45 |
Summary of Common Stock Option Activity -Employee Stock Options | Summary of Common Stock Option Activity -Employee Stock Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Years Outstanding at February 28 , 2023 95,725,000 $0.02 4.75 Issued — — — Exercised — — — Forfeited, extinguished and cancelled (13,025,000 ) $0.02 (4.75) Outstanding at August 31, 2023 82,700,000 $0.02 4.25 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. | Summary of rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. Maturity of Lease Liabilities Operating August 31, 2024 $ 239,669 August 31, 2025 207,558 August 31, 2026 207,558 August 31, 2027 207,558 August 31, 2028 207,558 August 31, 2029 and after 553,488 Total lease payments 1,623,389 Less: Interest (482,399 ) Present value of lease liabilities $ 1,140,990 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
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 Three Months Ended For the Six Months Ended August 31, August 31, 2023 2022 2023 2022 Numerator: Net income (loss) available to common shareholders $ (4,759,728 ) $ (4,172,865 ) $ (9,314,919 ) $ (8,844,551 ) Effect of common stock equivalents Add: interest expense on convertible debt — 8,543 — 8,737 Add (less) loss (gain) on settlement of debt — (3,992 ) — (3,992 ) Add (less) loss (gain) on change of derivative liabilities — (3,595 ) — (3,595 ) Net income (loss) adjusted for common stock equivalents (4,759,728 ) (4,171,909 ) (9,314,919 ) (8,843,401 ) Denominator: Weighted average shares – basic 6,568,957,612 4,970,040,852 6,266,833,467 4,884,349,362 Net income (loss) per share – basic $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 ) Dilutive effect of common stock equivalents: Convertible Debt — — — — Preferred shares — — — — Warrants — — — — — — — — Denominator: Weighted average shares – diluted 6,568,957,612 4,970,040,852 6,266,833,467 4,884,349,362 Net income (loss) per share – diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 ) |
The anti-dilutive shares of common stock equivalents for the three and six months ended August 31, 2023 and 2022 were as follows: | The anti-dilutive shares of common stock equivalents for the three and six months ended August 31, 2023 and 2022 were as follows: For the Three Months Ended For the Six Months Ended August 31, August 31, 2023 2022 2023 2022 Convertible notes and accrued interest — 836,425,685 — 836,425,685 Convertible Series F Preferred Shares 24,286,988,436 — 24,286,988,436 — Stock options and warrants 433,767,451 401,217,451 433,767,451 401,217,451 Total 24,720,755,887 1,237,643,136 24,720,755,887 1,237,643,136 * On August 23, 2021, the Company filed amended Series F preferred shares such that Series F preferred shares are not convertible into common stock by a holder until (A) August 23, 2023 or (B) the date on which such a conversion may be required for the purpose of (i) uplisting the Company to a new stock exchange, or (ii) selling more than 50% of the Company’s assets. Had these Series F preferred shares been convertible at August 31, 2023 and 2022 the dilutive effects would be as follows: |
Series F Preferred shares been convertible the dilutive effects would be as follows: | Series F Preferred shares been convertible the dilutive effects would be as follows: For the Three and Six Months Ended August 31, 2023 August 31, 2022 Convertible Series F Preferred Shares — 17,375,422,528 |
GENERAL INFORMATION (Details Na
GENERAL INFORMATION (Details Narrative) - shares | Aug. 28, 2017 | Aug. 31, 2023 | Feb. 28, 2023 | Jul. 25, 2017 |
Restructuring Cost and Reserve [Line Items] | ||||
Common stock, issued | 7,039,806,793 | 5,848,741,599 | ||
Robotic Assistance Devices LLC [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Common stock, issued | 10,000 | |||
Robotic Assistance Devices LLC [Member] | Series E Preferred Stock [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of shares isuued under acquisition | 3,350,000 | |||
Robotic Assistance Devices LLC [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) - USD ($) | 1 Months Ended | 6 Months Ended | |
Sep. 26, 2023 | Mar. 31, 2023 | Aug. 31, 2023 | |
Cash flow from operating activities | $ 6,335,216 | ||
Accumulated deficit | 121,568,632 | ||
Working capital | 24,615,965 | ||
Additional issuance costs | $ 5,200,000 | ||
Minimum [Member] | |||
Other cost cutting management estimates | 200,000 | ||
Maximum [Member] | |||
Other cost cutting management estimates | $ 300,000 | ||
Common Stock [Member] | |||
Purchase of common stock | $ 12,500,000 |
Fixed assets consisted of the f
Fixed assets consisted of the following: (Details) | Aug. 31, 2023 |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 2 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 5 years |
Computer Equipment and Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, useful life | 2 years |
Computer Equipment and Software [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 Equipment [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 |
Tooling [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 ($) | Aug. 31, 2023 | Feb. 28, 2023 |
Platform Operator, Crypto-Asset [Line Items] | ||
Incentive compensation plan payable revaluation of equity awards payable in Series G shares | $ 1,104,000 | $ 979,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Incentive compensation plan payable revaluation of equity awards payable in Series G shares | ||
Fair Value, Inputs, Level 2 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Incentive compensation plan payable revaluation of equity awards payable in Series G shares | ||
Fair Value, Inputs, Level 3 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Incentive compensation plan payable revaluation of equity awards payable in Series G shares | $ 1,104,000 | $ 979,000 |
ACCOUNTING POLICIES (Details Na
ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 31, 2023 USD ($) Number | Aug. 31, 2022 | Aug. 31, 2023 USD ($) Number | Feb. 28, 2023 USD ($) | ||
Property, Plant and Equipment [Line Items] | |||||
Loans payable | $ 32,200,345 | $ 32,200,345 | $ 31,254,345 | ||
Accounts receivable, net | $ 260,671 | 260,671 | 265,024 | [1] | |
Percentage of accounts receivable | 37% | 54% | |||
Inventory valuation reserves | $ 195,000 | $ 195,000 | 195,000 | ||
Depreciation life | 48 months | 48 months | |||
Deferred development costs | $ 0 | $ 0 | 0 | ||
Percentage of revenue | 33% | 26% | 33% | ||
Description of deferred tax assets and liabilities | The Company’s gross deferred tax assets were revalued based on the reduction in the federal statutory tax rate from 35% to 21%. | ||||
Two Customer [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of customers | Number | 2 | 2 | |||
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Fixed assets, useful life | 2 years | 2 years | |||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Fixed assets, useful life | 5 years | 5 years | |||
Controller [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Loans additions | $ 27,890,506 | $ 26,540,506 | |||
Loans percentage | 87% | 87% | 85% | ||
[1]Derived from audited information |
The following table presents re
The following table presents revenues from contracts with customers disaggregated by product/service: (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Device rental activities | $ 343,543 | $ 228,214 | $ 581,692 | $ 468,019 |
Direct sales of goods and services | 42,820 | 39,270 | 189,879 | 184,622 |
Revenues | $ 386,363 | $ 267,484 | $ 771,571 | $ 652,641 |
Below is a summary of our lease
Below is a summary of our lease assets and liabilities at August 31, 2023 and February 28, 2023. (Details) - USD ($) | Aug. 31, 2023 | Feb. 28, 2023 | |
Leases | |||
Operating lease assets | $ 1,148,682 | $ 1,208,440 | |
Current operating lease liability | 239,669 | 248,670 | [1] |
Noncurrent operating lease liabilities | 901,321 | 950,541 | [1] |
Total lease liabilities | $ 1,140,990 | $ 1,199,211 | |
[1]Derived from audited information |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Leases | ||||
Weighted average remaining lease term | 12 months | 12 months | ||
Rent | $ 62,541 | $ 63,681 | $ 125,083 | $ 133,648 |
Operating lease cost | $ 62,541 | $ 63,681 | $ 125,083 | $ 133,648 |
Revenue earning devices consist
Revenue earning devices consisted of the following: (Details) - USD ($) | Aug. 31, 2023 | Feb. 28, 2023 |
Revenue Earning Devices | ||
Revenue earning devices | $ 2,800,522 | $ 2,015,058 |
Less: Accumulated depreciation | (1,044,294) | (779,839) |
Total | $ 1,756,228 | $ 1,235,219 |
REVENUE EARNING DEVICES (Detail
REVENUE EARNING DEVICES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Revenue earning | $ 386,363 | $ 267,484 | $ 771,571 | $ 652,641 |
Depreciation expense | 191,041 | 145,793 | 358,983 | 239,788 |
Robotic Assistance Devices LLC [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Revenue earning | 341,042 | 251,946 | 785,464 | 426,047 |
Depreciation expense | $ 141,614 | $ 116,125 | $ 264,455 | $ 187,539 |
Fixed assets consisted of the_2
Fixed assets consisted of the following: (Details) - USD ($) | Aug. 31, 2023 | Feb. 28, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Gross | $ 605,121 | $ 497,890 | |
Less: accumulated depreciation | (276,530) | (182,002) | |
Fixed assets, net of accumulated depreciation | 328,591 | 315,888 | [1] |
Automobiles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross | 101,680 | 101,680 | |
Demo Devices [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross | 172,778 | 69,010 | |
Tools, Dies and Molds [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross | 101,322 | 101,322 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross | 8,825 | 8,825 | |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross | 150,387 | 150,387 | |
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross | 15,312 | 15,312 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross | 21,225 | 21,225 | |
Warehouse Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross | 14,561 | 14,561 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross | $ 19,031 | $ 15,568 | |
[1]Derived from audited information |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - Robotic Assistance Devices LLC [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Additions to fixed assets | $ 75,057 | $ 139,946 | $ 107,230 | $ 233,676 |
Assets transfers from inventory | 20,693 | 103,767 | 26,479 | |
Remaining additions to fixed assets | 118,983 | 3,463 | 207,197 | |
Depreciation expense | $ 49,427 | $ 29,668 | $ 94,528 | $ 52,249 |
DEFERRED VARIABLE PAYMENT OBL_2
DEFERRED VARIABLE PAYMENT OBLIGATION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Mar. 03, 2021 | Aug. 27, 2020 | Jul. 01, 2020 | Apr. 22, 2020 | Feb. 29, 2020 | Dec. 30, 2019 | Nov. 18, 2019 | May 09, 2019 | Feb. 01, 2019 | May 31, 2021 | Aug. 31, 2023 | Aug. 27, 2021 | Feb. 28, 2023 | ||
Principal amount | $ 32,200,346 | |||||||||||||
Accrued payment | 667,634 | $ 542,177 | ||||||||||||
Default on payments | 431,719 | 325,600 | ||||||||||||
Aggregate investment | $ 1,925,000 | |||||||||||||
Total payment obligation | 2,525,000 | 2,525,000 | [1] | |||||||||||
Payment receive | $ 0 | 0 | ||||||||||||
Investor [Member] | ||||||||||||||
Maximum amount of debt | $ 1,925,000 | $ 800,000 | $ 100,000 | $ 900,000 | ||||||||||
Percentage of exchange rate | 14.25% | 2.75% | 1% | 1% | 9% | |||||||||
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 | 367 | 38 | ||||||||||||
Exercise price | $ 1 | |||||||||||||
Fair value of warrants | $ 33,015,214 | |||||||||||||
Investor [Member] | Maximum [Member] | ||||||||||||||
Percentage of exchange rate | 14.25% | |||||||||||||
Percentage of total asset disposition price | 31% | |||||||||||||
Investor [Member] | Minimum [Member] | ||||||||||||||
Percentage of exchange rate | 9.65% | |||||||||||||
Percentage of total asset disposition price | 21% | |||||||||||||
Investor [Member] | Agreement [Member] | ||||||||||||||
Maximum amount of debt | $ 900,000 | |||||||||||||
Investor [Member] | Agreement One [Member] | ||||||||||||||
Maximum amount of debt | 225,000 | |||||||||||||
Investor [Member] | Ageement Two [Member] | ||||||||||||||
Maximum amount of debt | $ 800,000 | |||||||||||||
Investor One [Member] | ||||||||||||||
Maximum amount of debt | 400,000 | $ 400,000 | ||||||||||||
Percentage of exchange rate | 4% | |||||||||||||
Investor Two [Member] | ||||||||||||||
Maximum amount of debt | $ 50,000 | $ 50,000 | ||||||||||||
Percentage of exchange rate | 1.11% | |||||||||||||
Investor Four [Member] | ||||||||||||||
Percentage of exchange rate | 2.25% | |||||||||||||
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 | ||||||||||||
Deferred payment obligation | $ 2,525,000 | $ 2,525,000 | ||||||||||||
[1]Derived from audited information |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Net borrowings on loan payable - related party | $ 0 | $ 0 | ||||
Loan payable - related party | $ 260,746 | 260,746 | $ 206,516 | |||
Balance due to related party | 172,265 | 172,265 | $ 108,000 | |||
Interest Expense | 1,753,216 | $ 1,002,020 | $ 3,359,432 | 2,177,050 | ||
Percentage of interest expense due to related party | 12% | 12% | ||||
Deferred salary payable to related party | $ 108,000 | |||||
Interest accrued related party | $ 23,515 | $ 15,660 | ||||
Consulting fees for research and development | $ 777,260 | $ 957,395 | $ 1,659,275 | $ 1,959,129 | ||
Incentives Compensation Plan [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Share price | $ 1,000 | $ 1,000 |
OTHER DEBT _ VEHICLE LOAN (Deta
OTHER DEBT – VEHICLE LOAN (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||||||
Nov. 30, 2017 | Dec. 31, 2016 | Aug. 31, 2023 | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2020 | Feb. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Vehicle loan secured by automobile | $ 32,200,346 | |||||||
Principal repayments of loan | $ 0 | $ 0 | ||||||
Proceeds of disposal of vehicle offset against vehicle loan | 18,766 | |||||||
Remaining asset value | 5,515 | |||||||
Reclassification of fixed assets to vehicle for disposal | 13,251 | |||||||
Robotic Assistance Devices LLC [Member] | Secured Debt [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Vehicle loan secured by automobile | $ 47,661 | $ 47,704 | ||||||
Term of debt | 5 years | 5 years | ||||||
Maturity date | Oct. 24, 2022 | Nov. 09, 2021 | ||||||
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 | ||||||
Long-term vehicle loan | $ 16,944 | $ 16,944 | ||||||
Total vehicle loan | $ 38,522 | $ 38,522 |
Loans payable at August 31, 202
Loans payable at August 31, 2023 consisted of the following: (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||
May 11, 2023 | Apr. 20, 2023 | Apr. 05, 2023 | Feb. 06, 2023 | Jan. 11, 2023 | Nov. 15, 2022 | Nov. 10, 2022 | Nov. 09, 2022 | Oct. 28, 2022 | Feb. 28, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Feb. 28, 2023 | Feb. 28, 2021 | ||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Debt instrument, face amount | $ 32,200,346 | $ 32,200,346 | |||||||||||||||||
Less: current portion of loans payable | (20,369,986) | (20,369,986) | |||||||||||||||||
Less: discount on non-current loans payable | (4,654,370) | (4,654,370) | |||||||||||||||||
Non-current loans payable, net of discount | 7,175,990 | 7,175,990 | |||||||||||||||||
Current portion of loans payable | 20,369,986 | 20,369,986 | |||||||||||||||||
Less: discount on current portion of loans payable | (966,767) | (966,767) | |||||||||||||||||
Current portion of loans payable, net of discount | $ 19,403,219 | $ 19,403,219 | |||||||||||||||||
Warrant purchase | 6,500,000 | 6,500,000 | 12,100,000 | ||||||||||||||||
Fair value of warrants | $ 0 | $ 0 | |||||||||||||||||
Interest expenses | $ 1,753,216 | $ 1,002,020 | $ 3,359,432 | $ 2,177,050 | |||||||||||||||
Promissory Note Payable 01 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [1],[2] | Jul. 18, 2016 | |||||||||||||||||
Debt instrument, face amount | [1],[2] | $ 3,500 | $ 3,500 | ||||||||||||||||
Annual interest rate | [1],[2] | 22% | 22% | ||||||||||||||||
Promissory Note Payable 02 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [3] | Dec. 10, 2020 | |||||||||||||||||
Debt instrument, face amount | [3] | $ 3,921,168 | $ 3,921,168 | ||||||||||||||||
Annual interest rate | [3] | 12% | 12% | ||||||||||||||||
Debt settlement amount | $ 2,683,357 | $ 2,683,357 | |||||||||||||||||
Accrued interest | $ 1,237,811 | 1,237,811 | |||||||||||||||||
Promissory Note Payable 02 [Member] | Warrant [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Common stock issued for debt conversion | $ 3,921,168 | ||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.002 | $ 0.002 | |||||||||||||||||
Fair value of notes | $ 990,000 | ||||||||||||||||||
Promissory Note Payable 03 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [4] | Dec. 10, 2020 | |||||||||||||||||
Debt instrument, face amount | [4] | $ 3,054,338 | $ 3,054,338 | ||||||||||||||||
Annual interest rate | [4] | 12% | 12% | ||||||||||||||||
Debt settlement amount | $ 1,460,794 | $ 1,460,794 | |||||||||||||||||
Accrued interest | $ 1,593,544 | 1,593,544 | |||||||||||||||||
Promissory Note Payable 03 [Member] | Warrant [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Common stock issued for debt conversion | $ 3,054,338 | ||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.002 | $ 0.002 | |||||||||||||||||
Fair value of notes | $ 550,000 | ||||||||||||||||||
Promissory Note Payable04 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [5] | Dec. 10, 2020 | |||||||||||||||||
Debt instrument, face amount | [5] | $ 165,605 | $ 165,605 | ||||||||||||||||
Annual interest rate | [5] | 12% | 12% | ||||||||||||||||
Debt settlement amount | $ 103,180 | $ 103,180 | |||||||||||||||||
Accrued interest | $ 62,425 | 62,425 | |||||||||||||||||
Promissory Note Payable04 [Member] | Warrant [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Common stock issued for debt conversion | $ 165,605 | ||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.002 | $ 0.002 | |||||||||||||||||
Fair value of notes | $ 176,000 | ||||||||||||||||||
Warrant purchase | 80,000,000 | ||||||||||||||||||
Promissory Note Payable05 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [6] | Dec. 14, 2020 | |||||||||||||||||
Debt instrument, face amount | [6] | $ 310,375 | $ 310,375 | ||||||||||||||||
Annual interest rate | [6] | 12% | 12% | ||||||||||||||||
Debt settlement amount | $ 235,000 | $ 235,000 | |||||||||||||||||
Accrued interest | $ 75,375 | 75,375 | |||||||||||||||||
Promissory Note Payable05 [Member] | Warrant [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Common stock issued for debt conversion | $ 310,375 | ||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.002 | $ 0.002 | |||||||||||||||||
Fair value of notes | $ 182,500 | ||||||||||||||||||
Warrant purchase | 25,000,000 | ||||||||||||||||||
Promissory Note Payable 06 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [7] | Dec. 30, 2020 | |||||||||||||||||
Debt instrument, face amount | [7] | $ 350,000 | $ 350,000 | ||||||||||||||||
Annual interest rate | [7] | 12% | 12% | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.025 | $ 0.025 | |||||||||||||||||
Original issue discount | $ 35,000 | ||||||||||||||||||
Warrants issued | 50,000,000 | ||||||||||||||||||
Class of warrant or right warrants term | 3 years | ||||||||||||||||||
Fair value of warrants | $ 271,250 | $ 271,250 | |||||||||||||||||
Debt discount | 271,250 | 271,250 | |||||||||||||||||
Amortization expens | 52,756 | 92,660 | |||||||||||||||||
Debt instrument, unamortized discount | 100,855 | $ 100,855 | |||||||||||||||||
Promissory Note Payable 07 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [8] | Jan. 01, 2021 | |||||||||||||||||
Debt instrument, face amount | [8] | $ 25,000 | $ 25,000 | ||||||||||||||||
Annual interest rate | [8] | 12% | 12% | ||||||||||||||||
Debt settlement amount | $ 9,200 | $ 9,200 | |||||||||||||||||
Accrued interest | 6,944 | 6,944 | |||||||||||||||||
Promissory Note Payable 07 [Member] | Warrant [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Common stock issued for debt conversion | $ 16,144 | ||||||||||||||||||
Promissory Note Payable 08 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [9] | Jan. 01, 2021 | |||||||||||||||||
Debt instrument, face amount | [9] | $ 145,000 | $ 145,000 | ||||||||||||||||
Annual interest rate | [9] | 12% | 12% | ||||||||||||||||
Debt settlement amount | $ 79,500 | $ 79,500 | |||||||||||||||||
Accrued interest | 28,925 | 28,925 | |||||||||||||||||
Promissory Note Payable 08 [Member] | Warrant [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Debt instrument, face amount | 145,000 | 145,000 | |||||||||||||||||
Common stock issued for debt conversion | $ 108,425 | ||||||||||||||||||
Promissory Note Payable 09 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [10] | Jan. 14, 2021 | |||||||||||||||||
Debt instrument, face amount | [10] | $ 550,000 | $ 550,000 | ||||||||||||||||
Annual interest rate | [10] | 12% | 12% | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.025 | $ 0.025 | |||||||||||||||||
Original issue discount | $ 250,000 | ||||||||||||||||||
Warrants issued | 50,000,000 | ||||||||||||||||||
Class of warrant or right warrants term | 3 years | ||||||||||||||||||
Fair value of warrants | $ 380,174 | $ 380,174 | |||||||||||||||||
Debt discount | 380,174 | 380,174 | |||||||||||||||||
Amortization expens | 62,143 | 113,188 | |||||||||||||||||
Debt instrument, unamortized discount | 126,148 | $ 126,148 | |||||||||||||||||
Promissory Note Payable10 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [11] | Feb. 22, 2021 | |||||||||||||||||
Debt instrument, face amount | [11] | $ 1,650,000 | $ 1,650,000 | ||||||||||||||||
Annual interest rate | [11] | 12% | 12% | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.0164 | $ 0.135 | $ 0.135 | ||||||||||||||||
Original issue discount | $ 150,000 | ||||||||||||||||||
Warrants issued | 100,000,000 | ||||||||||||||||||
Class of warrant or right warrants term | 3 years | ||||||||||||||||||
Fair value of warrants | $ 1,342,857 | $ 1,342,857 | |||||||||||||||||
Debt discount | 1,342,857 | 1,342,857 | |||||||||||||||||
Amortization expens | 220,757 | 379,821 | |||||||||||||||||
Debt instrument, unamortized discount | 732,440 | $ 732,440 | |||||||||||||||||
Interest expenses | $ 950,000 | ||||||||||||||||||
Promissory Note Payable10 [Member] | Common Stock [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Warrants issued | 50,000,000 | ||||||||||||||||||
Class of warrant or right warrants term | 3 years | ||||||||||||||||||
Promissory Note Payable11 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [12] | Mar. 01, 2021 | |||||||||||||||||
Debt instrument, face amount | [12] | $ 6,000,000 | $ 6,000,000 | ||||||||||||||||
Annual interest rate | [12] | 12% | 12% | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.135 | $ 0.135 | |||||||||||||||||
Warrants issued | 300,000,000 | ||||||||||||||||||
Class of warrant or right warrants term | 3 years | ||||||||||||||||||
Debt discount | $ 4,749,005 | $ 4,749,005 | |||||||||||||||||
Interest expenses | $ 2,850,000 | ||||||||||||||||||
Proceeds from issuance of debt | 5,400,000 | ||||||||||||||||||
Debt conversion original debt amount 1 | 600,000 | ||||||||||||||||||
Promissory Note Payable11 [Member] | Valuation Technique, Option Pricing Model [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Fair value of warrants | $ 4,749,005 | ||||||||||||||||||
Promissory Note Payable11 [Member] | Common Stock [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.0164 | ||||||||||||||||||
Warrants issued | 150,000,000 | ||||||||||||||||||
Class of warrant or right warrants term | 3 years | ||||||||||||||||||
Promissory Note Payable12 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [13] | Jun. 08, 2021 | |||||||||||||||||
Debt instrument, face amount | [13] | $ 2,750,000 | $ 2,750,000 | ||||||||||||||||
Annual interest rate | [13] | 12% | 12% | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.064 | $ 0.064 | |||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Warrants issued | 170,000,000 | ||||||||||||||||||
Class of warrant or right warrants term | 3 years | ||||||||||||||||||
Fair value of warrants | $ 2,035,033 | $ 2,035,033 | |||||||||||||||||
Debt discount | 2,035,033 | 2,035,033 | |||||||||||||||||
Amortization expens | 175,789 | 330,699 | |||||||||||||||||
Debt instrument, unamortized discount | 463,519 | $ 463,519 | |||||||||||||||||
Interest expenses | $ 1,615,000 | ||||||||||||||||||
Promissory Note Payable12 [Member] | Common Stock [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.0164 | ||||||||||||||||||
Warrants issued | 85,000,000 | ||||||||||||||||||
Class of warrant or right warrants term | 3 years | ||||||||||||||||||
Promissory Note Payable13 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [14] | Jul. 12, 2021 | |||||||||||||||||
Debt instrument, face amount | [14] | $ 3,830,360 | $ 3,830,360 | ||||||||||||||||
Annual interest rate | [14] | 7% | 7% | ||||||||||||||||
Principal ammount | $ 4,000,160 | $ 4,000,160 | |||||||||||||||||
Repayment of notes | 27,000 | $ 54,000 | |||||||||||||||||
Promissory Note Payable14 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [15] | Sep. 14, 2021 | |||||||||||||||||
Debt instrument, face amount | [15] | $ 1,650,000 | $ 1,650,000 | ||||||||||||||||
Annual interest rate | [15] | 12% | 12% | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.037 | $ 0.037 | |||||||||||||||||
Original issue discount | $ 150,000 | ||||||||||||||||||
Warrants issued | 250,000,000 | ||||||||||||||||||
Class of warrant or right warrants term | 3 years | ||||||||||||||||||
Fair value of warrants | $ 1,284,783 | $ 1,284,783 | |||||||||||||||||
Debt discount | 1,284,783 | 1,284,783 | |||||||||||||||||
Amortization expens | 115,344 | 202,274 | |||||||||||||||||
Debt instrument, unamortized discount | 127,501 | $ 127,501 | |||||||||||||||||
Promissory Note Payable15 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [16] | Jul. 28, 2022 | |||||||||||||||||
Debt instrument, face amount | $ 170,000 | $ 170,000 | |||||||||||||||||
Annual interest rate | [16] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 20,000 | ||||||||||||||||||
Amortization expens | $ 3,739 | 9,026 | |||||||||||||||||
Debt instrument, unamortized discount | 0 | $ 0 | |||||||||||||||||
Promissory Note Payable16 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [17] | Aug. 30, 2022 | |||||||||||||||||
Debt instrument, face amount | [17] | $ 3,000,000 | $ 3,000,000 | ||||||||||||||||
Annual interest rate | [17] | 15% | 15% | ||||||||||||||||
Debt discount | $ 39,500 | $ 39,500 | |||||||||||||||||
Amortization expens | 4,736 | 9,293 | |||||||||||||||||
Debt instrument, unamortized discount | $ 21,576 | $ 21,576 | |||||||||||||||||
Class of warrant or right outstanding | 955,000,000 | 955,000,000 | |||||||||||||||||
Rate of interest | 15% | 15% | |||||||||||||||||
Class of warrant or right, outstanding | $ 2,960,500 | ||||||||||||||||||
Promissory Note Payable17 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [18] | Sep. 07, 2022 | |||||||||||||||||
Debt instrument, face amount | [18] | $ 370,000 | $ 370,000 | ||||||||||||||||
Annual interest rate | [18] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | $ 15,479 | 27,821 | |||||||||||||||||
Debt instrument, unamortized discount | 0 | $ 0 | |||||||||||||||||
Promissory Note Payable18 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [19] | Sep. 08, 2022 | |||||||||||||||||
Debt instrument, face amount | [19] | $ 475,000 | $ 475,000 | ||||||||||||||||
Annual interest rate | [19] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 75,000 | ||||||||||||||||||
Amortization expens | $ 17,799 | 36,729 | |||||||||||||||||
Debt instrument, unamortized discount | 0 | $ 0 | |||||||||||||||||
Promissory Note Payable19 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [20] | Oct. 13, 2022 | |||||||||||||||||
Debt instrument, face amount | [20] | $ 350,000 | $ 350,000 | ||||||||||||||||
Annual interest rate | [20] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | $ 13,295 | 25,585 | |||||||||||||||||
Debt instrument, unamortized discount | 7,325 | $ 7,325 | |||||||||||||||||
Promissory Note Payable20 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [21] | Oct. 28, 2022 | |||||||||||||||||
Debt instrument, face amount | [21] | $ 400,000 | $ 400,000 | ||||||||||||||||
Annual interest rate | [21] | 15% | 15% | ||||||||||||||||
Line of credit facility | $ 4,000,000 | $ 4,000,000 | |||||||||||||||||
Promissory Note Payable 21 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [21] | Nov. 09, 2022 | |||||||||||||||||
Debt instrument, face amount | $ 400,000 | $ 400,000 | [21] | $ 400,000 | [21] | ||||||||||||||
Annual interest rate | [21] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | $ 2,472 | $ 4,338 | |||||||||||||||||
Debt instrument, unamortized discount | 343,685 | $ 343,685 | |||||||||||||||||
Promissory Note Payable 22 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [21] | Nov. 10, 2022 | |||||||||||||||||
Debt instrument, face amount | $ 400,000 | $ 400,000 | [21] | $ 400,000 | [21] | ||||||||||||||
Annual interest rate | [21] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | $ 2,438 | $ 4,276 | |||||||||||||||||
Debt instrument, unamortized discount | 344,162 | $ 344,162 | |||||||||||||||||
Promissory Note Payable 23 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [21] | Nov. 15, 2022 | |||||||||||||||||
Debt instrument, face amount | $ 400,000 | $ 400,000 | [21] | $ 400,000 | [21] | ||||||||||||||
Annual interest rate | [21] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | $ 2,233 | $ 3,900 | |||||||||||||||||
Debt instrument, unamortized discount | 346,981 | $ 346,981 | |||||||||||||||||
Promissory Note Payable 24 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [21] | Jan. 11, 2023 | |||||||||||||||||
Debt instrument, face amount | $ 400,000 | $ 400,000 | [21] | $ 400,000 | [21] | ||||||||||||||
Annual interest rate | [21] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | $ 2,489 | $ 4,370 | |||||||||||||||||
Debt instrument, unamortized discount | 343,445 | $ 343,445 | |||||||||||||||||
Promissory Note Payable 25 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [21] | Feb. 06, 2023 | |||||||||||||||||
Debt instrument, face amount | $ 400,000 | $ 400,000 | [21] | $ 400,000 | [21] | ||||||||||||||
Annual interest rate | [21] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | $ 2,541 | $ 4,565 | |||||||||||||||||
Debt instrument, unamortized discount | 342,724 | $ 342,724 | |||||||||||||||||
Promissory Note Payable 26 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [21] | Apr. 05, 2023 | |||||||||||||||||
Debt instrument, face amount | $ 400,000 | $ 400,000 | [21] | $ 400,000 | [21] | ||||||||||||||
Annual interest rate | [21] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | $ 2,436 | $ 4,272 | |||||||||||||||||
Debt instrument, unamortized discount | 344,154 | $ 344,154 | |||||||||||||||||
Promissory Note Payable 27 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [21] | Apr. 20, 2023 | |||||||||||||||||
Debt instrument, face amount | $ 400,000 | $ 400,000 | [21] | $ 400,000 | [21] | ||||||||||||||
Annual interest rate | [21] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | $ 2,523 | $ 3,274 | |||||||||||||||||
Debt instrument, unamortized discount | 342,971 | $ 342,971 | |||||||||||||||||
Promissory Note Payable 28 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Date of issuance | [21] | May 11, 2023 | |||||||||||||||||
Debt instrument, face amount | $ 400,000 | $ 400,000 | [21] | $ 400,000 | [21] | ||||||||||||||
Annual interest rate | [21] | 15% | 15% | ||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | $ 2,010 | $ 2,206 | |||||||||||||||||
Debt instrument, unamortized discount | 350,013 | 350,013 | |||||||||||||||||
Promissory Note Payable 29 [Member] | |||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||
Debt instrument, face amount | $ 400,000 | ||||||||||||||||||
Original issue discount | $ 50,000 | ||||||||||||||||||
Amortization expens | 0 | 0 | |||||||||||||||||
Debt instrument, unamortized discount | $ 398,983 | $ 398,983 | |||||||||||||||||
[1]In default[2]This note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions placed on the lender.[3]This promissory note was issued as part of a debt settlement whereby $ 2,683,357 1,237,811 3,921,168 3,921,168 .002 990,000 1,460,794 1,593,544 3,054,338 3,054,338 .002 550,000 103,180 62,425 165,605 165,605 80,000,000 .002 176,000 235,000 75,375 310,375 310,375 25,000,000 .002 182,500 350,000 35,000 50,000,000 0.025 3 271,250 271,250 52,756 92,660 100,855 9,200 6,944 16,144 25,000 79,500 28,925 108,425 145,000 550,000 250,000 50,000,000 0.025 3 380,174 380,174 62,143 113,188 126,148 1,650,000 150,000 100,000,000 0.135 3 1,342,857 1,342,857 50,000,000 .0164 3 950,000 220,757 379,821 732,440 5,400,000 6,000,000 600,000 300,000,000 0.135 3 4,749,005 4,749,005 150,000,000 .0164 3 2,850,000 2,750,000 50,000 170,000,000 0.064 3 2,035,033 2,035,033 85,000,000 .0164 3 1,615,000 175,789 330,699 463,519 4,000,160 27,000 54,000 1,650,000 150,000 250,000,000 0.037 3 1,284,783 1,284,783 115,344 202,274 1,27,501 170,000 20,000 3,739 9,026 0 955,000,000 3,000,000 15 2,960,500 39,500 4,736 9,293 21,576 400,000 50,000 15,479 27,821 0 475,000 75,000 17,799 36,729 0 350,000 50,000 13,295 25,585 7,325 the Company entered into an loan facility with a lender for up to $4,000,000 including an original issue discount of $500,000. In exchange the Company will issue one series F Preferred Share, extended 329 series F warrants with a March 1, 2026 maturity to a new October 31, 2033 maturity, and issue up to 10 tranches with each tranche of $400,000, with cash proceeds of $350,000 an original issue discount of $50,000, October 31, 2026 maturity, and 61 Series F warrants with a October 31, 2033 maturity. 400,000 50,000 2,472 4,338 343,685 400,000 50,000 2,438 4,276 344,162 400,000 50,000 2,233 3,900 346,981 400,000 50,000 2,489 4,370 343,445 400,000 50,000 2,541 4,565 342,724 400,000 50,000 2,436 4,272 344,154 400,000 50,000 2,523 3,274 342,971 400,000 50,000 2,010 2,206 350,013 400,000 50,000 0 0 398,983 |
Summary of Preferred Stock Warr
Summary of Preferred Stock Warrant Activity (Details) - Preferred Stock [Member] - Warrant [Member] | 6 Months Ended |
Aug. 31, 2023 $ / shares shares | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Outstanding at beginning | shares | 695 |
Weighted average exercise price at beginning | $ / shares | $ 1 |
Weighted average remaining years beginning | 10 years |
Issued | shares | 183 |
Issued | $ / shares | $ 1 |
Issued | 9 years 10 months 17 days |
Exercised | shares | 0 |
Exercised | $ / shares | |
Forfeited and cancelled | shares | 0 |
Forfeited and cancelled | $ / shares | |
Outstanding at ending | shares | 878 |
Weighted average exercise price at ending | $ / shares | $ 1 |
Weighted average remaining years ending | 9 years 9 months |
The table below represent the c
The table below represent the common shares issued, issuable and outstanding at August 31, 2023 and February 28, 2023: (Details) - shares | Aug. 31, 2023 | Feb. 28, 2023 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Issued | 7,039,806,793 | 5,848,741,599 |
Common Stock [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Issued | 7,039,806,793 | 5,836,641,599 |
Issuable | 12,100,000 | |
Issued, issuable and outstanding | 7,039,806,793 | 5,848,741,599 |
Summary of Common Stock Warrant
Summary of Common Stock Warrant Activity (Details) - Common Stock [Member] - Warrant [Member] | 6 Months Ended |
Aug. 31, 2023 $ / shares shares | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Outstanding at beginning | shares | 314,217,451 |
Weighted average exercise price at beginning | $ / shares | $ 0.114 |
Outstanding at beginning (in years) | 1 year 11 months 12 days |
Issued | shares | |
Issued | $ / shares | |
Exercised | shares | |
Exercised | $ / shares | |
Forfeited and cancelled | shares | |
Forfeited and cancelled | $ / shares | |
Outstanding at ending | shares | 314,217,451 |
Weighted average exercise price at ending | $ / shares | $ 0.114 |
Outstanding at ending (in years) | 1 year 5 months 12 days |
Summary of Common Stock Option
Summary of Common Stock Option Activity -Employee Stock Options (Details) - Equity Option [Member] - $ / shares | 6 Months Ended | |
Aug. 31, 2023 | Feb. 28, 2023 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Outstanding at beginning | 95,725,000 | |
Outstanding at beginning | $ 0.02 | |
Weighted average remaining years | 4 years 2 months 30 days | 4 years 9 months |
Issued | ||
Issued | ||
Exercised | ||
Exercised | ||
Forfeited, extinguished and cancelled | (13,025,000) | |
Forfeited, extinguished and cancelled | $ 0.02 | |
Weighted average remaining years | 4 years 9 months | |
Outstanding at ending | 82,700,000 | |
Outstanding at ending | $ 0.02 |
STOCKHOLDERS_ EQUITY (DEFICIT_2
STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Feb. 28, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Increase in shares authorization | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | ||
Issuance of shares | 6,500,000 | 6,500,000 | 12,100,000 | ||
Fair value | $ 44,460 | $ 44,460 | |||
Payment for services | 83,200 | $ 83,200 | |||
Gain on settlement of debt | $ 38,640 | ||||
Equity Option [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Issuance of shares | 903,636,004 | 1,184,565,194 | |||
Gross proceeds | $ 4,972,795 | $ 6,372,989 | |||
Issuance costs | 4,796,193 | 6,115,032 | |||
Net proceeds | $ 176,672 | $ 257,956 | |||
Minimum [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Increase in shares authorization | 7,225,000,000 | 7,225,000,000 | |||
Maximum [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Increase in shares authorization | 10,000,000,000 | 10,000,000,000 | |||
Warrant [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Relative fair value | $ 947,447 | $ 947,447 | |||
Share based compensation | $ 50,713 | $ 103,434 | $ 0 | $ 0 |
Summary of rent expense and ope
Summary of rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. (Details) | Aug. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
August 31, 2024 | $ 239,669 |
August 31, 2025 | 207,558 |
August 31, 2026 | 207,558 |
August 31, 2027 | 207,558 |
August 31, 2028 | 207,558 |
August 31, 2029 and after | 553,488 |
Total lease payments | 1,623,389 |
Less: Interest | (482,399) |
Present value of lease liabilities | $ 1,140,990 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Jan. 28, 2022 | Sep. 30, 2021 | Mar. 10, 2021 | Dec. 18, 2020 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Feb. 28, 2023 | [1] | |
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
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 with a minimum base rent of $3,859 per month. | |||||||||
Annual rent | $ 1,500 | $ 1,538 | $ 15,880 | $ 3,859 | ||||||
Security deposit | $ 1,500 | $ 18,462 | $ 15,880 | $ 3,859 | $ 21,239 | $ 21,239 | $ 21,239 | |||
Entity address | 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 with a minimum base rent of $15,880 per month. | |||||||||
Entity address | 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. | |||||||||
Entity address | 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. | |||||||||
Rent expense and operating lease cost | $ 62,541 | $ 63,681 | $ 125,083 | $ 133,648 | ||||||
[1]Derived from audited information |
The net income (loss) per commo
The net income (loss) per common share amounts were determined as follows: (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2023 | May 31, 2023 | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Earnings Per Share [Abstract] | ||||||
Net Income (Loss) Attributable to Parent | $ (4,759,728) | $ (4,555,193) | $ (4,172,865) | $ (4,671,686) | $ (9,314,919) | $ (8,844,551) |
Interest on Convertible Debt, Net of Tax | 8,543 | 8,737 | ||||
Realized Gain (Loss), Derivative and Foreign Currency Transaction Price Change, Operating, before Tax | (3,595) | (3,595) | ||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ (4,759,728) | $ (4,171,909) | $ (9,314,919) | $ (8,843,401) | ||
Weighted Average Number of Shares Outstanding Basic1 | 6,568,957,612 | 4,970,040,852 | 6,266,833,467 | 4,884,349,362 | ||
Weighted Average Number of Shares Outstanding, Diluted, Adjustment | 6,568,957,612 | 4,970,040,852 | 6,266,833,467 | 4,884,349,362 |
The anti-dilutive shares of com
The anti-dilutive shares of common stock equivalents for the three and six months ended August 31, 2023 and 2022 were as follows: (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 24,720,755,887 | 1,237,643,136 | 24,720,755,887 | 1,237,643,136 | |
Series F Preferred Stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | [1] | 24,286,988,436 | 24,286,988,436 | ||
Stock Options and Warrants [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 433,767,451 | 401,217,451 | 433,767,451 | 401,217,451 | |
Convertible Debt Securities [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 836,425,685 | 836,425,685 | |||
[1]On August 23, 2021, the Company filed amended Series F preferred shares such that Series F preferred shares are not convertible into common stock by a holder until (A) August 23, 2023 or (B) the date on which such a conversion may be required for the purpose of (i) uplisting the Company to a new stock exchange, or (ii) selling more than 50% of the Company’s assets. Had these Series F preferred shares been convertible at August 31, 2023 and 2022 the dilutive effects would be as follows: |
Series F Preferred shares been
Series F Preferred shares been convertible the dilutive effects would be as follows: (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Convertible series F preferred shares | 0 | 17,375,422,528 | 0 | 17,375,422,528 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Share Purchase Agreement [Member] | Oct. 12, 2023 USD ($) shares |
Subsequent Event [Line Items] | |
Issuance of shares | shares | 120,905,263 |
Gross proceeds | $ 377,224 |
Issuance costs | 8,569 |
Net proceeds | $ 368,655 |