| Significant Accounting Policies (Policies) | 12 Months Ended |
| Feb. 28, 2019 |
| Significant Accounting Policies | |
| Basis of Presentation and Principles of Consolidation | These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S. dollars. These consolidated financial statements include the accounts of the Company and the following entity:
MBE Holdings Inc. Wholly-owned subsidiary All inter-company balances and transactions
have been eliminated upon consolidation. |
| Use of Estimates | The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the useful lives and recoverability of equipment, fair value of stock-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
| Reclassifications | Certain of the prior year figures have been reclassified to conform to the current year’s presentation. |
| Cash and Cash Equivalents | The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. |
| Property and Equipment | Property and equipment is recorded at cost. Depreciation is recorded at the following annual rates:
Computer equipment 20% – declining balance method
Furniture and equipment 55% – declining balance method |
| Impairment of Long-lived Assets | The Company reviews long-lived assets such as property and equipment with finite useful lives for impairment whenever events or changes in circumstance indicate that the carrying amount may not be recoverable. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the excess of the carrying amount over the fair value of the asset. |
| Financial Instruments and Fair Value Measurements | ASC 820, “Fair Value Measurements and Disclosures” requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 Level 1 applies to assets or liabilities
for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities
for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar
assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume
or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can
be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities
for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value
of the assets or liabilities. The Company’s financial instruments
consist principally of cash, accounts payable and accrued liabilities, amounts due to a related party. The following table represents assets
and liabilities that are measured and recognized at fair value as of February 28, 2019, on a recurring basis:
Level 1 $
Level 2 $
Level 3 $
Cash 5,225 – –
The recorded values of all other
financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. |
| Income Taxes | The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Income Taxes”. The asset and liability method provides that deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carry-forwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred income tax assets to the amount that is believed more likely than not to be realized.
The Company has not recorded any amounts pertaining to uncertain tax positions. |
| Foreign Currency Translation | The Company’s functional and reporting
currency is the United States dollar. The functional currency of MBE is the Canadian dollar. Monetary assets and liabilities denominated
in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets, liabilities,
and items recorded in income arising from transactions denominated in foreign currencies are translated at rates of exchange in
effect at the date of the transaction. Gains and losses arising on translation or settlement of foreign currency denominated transactions
or balances are included in the determination of income. The accounts of MBE are translated to United
States dollars using the current rate method. Accordingly, assets and liabilities are translated into United States dollars at
the period-end exchange rate while revenue and expenses are translated at the average exchange rates during the period. Related
exchange gains and losses are included in a separate component of stockholders’ equity as accumulated other comprehensive
income. |
| Stock Based Compensation | The Company records stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation”, using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.
The Company uses the Black-Scholes option pricing model to calculate the fair value of stock-based awards. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the consolidated statement of operations over the requisite service period. |
| Research and Development | Research and development costs are charged as operating expenses as incurred. |
| Loss Per Share | The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the consolidated statement of operations. Basic 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 gives 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 in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As at February 28, 2019, the Company had 23,981,500 (2018 – 23,881,500) potentially dilutive shares outstanding. |
| Comprehensive Loss | Comprehensive loss consists of net loss and other related gains and losses affecting stockholders’ equity that are excluded from net income or loss. As at February 28, 2019 and 2018, comprehensive loss includes cumulative translation adjustments for changes in foreign currency exchange rates during the period. |
| Recent Accounting Pronouncements | In February 2016, the FASB issued new lease
accounting guidance in ASU No. 2016-02, “Leases”. This new guidance was initiated as a joint project with the International
Accounting Standards Board to simplify lease accounting and improve the quality of and comparability of financial information for
users. This new guidance would eliminate the concept of off-balance sheet treatment for “operating leases” for lessees
for the vast majority of lease contracts. Under ASU No. 2016-02, at inception, a lessee must classify all leases with a term of
over one year as either finance or operating, with both classifications resulting in the recognition of a defined “right-of-use”
asset and a lease liability on the balance sheet. However, recognition in the income statement will differ depending on the lease
classification, with finance leases recognizing the amortization of the right-of-use asset separate from the interest on the lease
liability and operating leases recognizing a single total lease expense. Lessor accounting under ASU No. 2016-02 would be substantially
unchanged from the previous lease requirements under GAAP. ASU No. 2016-02 will take effect for public companies in fiscal years
beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted and for leases
existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, lessees
and lessors must apply a modified retrospective transition approach. The Company is currently evaluating the new guidance and has
not determined the impact this standard may have on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13,
“Changes to Disclosure Requirements for Fair Value Measurements”, which will improve the effectiveness of disclosure
requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure
requirements, and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.
The Company will be evaluating the impact this standard will have on the Company’s financial statements. The Company has implemented all new accounting
pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are
any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results
of operations. |
