10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q /A

Amendment No. 1

(MARK ONE)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 31, 2016

or

[_] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 0-55079

ON THE MOVE SYSTEMS CORP.

(Exact name of registrant as specified in its charter)

Nevada	27-2343603
(State or other jurisdiction of Incorporation or organization)	(I.R.S. Employer Identification Number)
701 North Green Valley Parkway, Suite 200 Henderson, Nevada	89074
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code: 702-990-3271

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [_]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months.

Yes [X] No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	[_]	Accelerated filer	[_]
Non-accelerated filer	[_]	Smaller reporting company	[X]
(Do not check is smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [_] No [X]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of November 2, 2016, there were 7,229,226 shares of common stock are issued and outstanding.

EXPLANATORY NOTE

The purpose of this Amendment No. 1 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended August 31, 2016 (“Form 10-Q”) is to submit Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 consists of the Interactive Data Files from the Registrant’s Form 10-Q for the quarterly period ended August 31, 2016, filed with the Securities and Exchange Commission on November 4, 2016.

Additionally, on page 7, the CONSOLIDATED STATEMENTS OF CASH FLOWS, we corrected typographical errors as follows:

1)    On the line item labeled “Accrued interest payable” under the “2016” column, the incorrect number “101,318” has been corrected to “101,418”.

2)    On the line item labeled “Repayment of capital lease” under the “2016” column, the incorrect number “(1,867)” has been corrected to “(1,967)”.

3)    On the line item labeled “NET CASH PROVIDED BY FINANCING ACTIVITIES” under the “2016” column, the incorrect number “31,633” has been corrected to “66,633”.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION	4
Item 1. Financial Statements	4
Consolidated Balance Sheets  (Unaudited)	4
Consolidated Statements of Operations  (Unaudited)	5
Consolidated Statement of Stockholders’ Deficit  (Unaudited)	6
Consolidated Statements of Cash Flows  (Unaudited)	7
Notes to the Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3. Quantitative and Qualitative Disclosures about Market Risk	17
Item 4. Controls and Procedures	17
PART II — OTHER INFORMATION	18
Item 1. Legal Proceedings	18
Item 1A. Risk Factors	18
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3. Defaults upon Senior Securities	18
Item 4. Mine Safety Disclosures	18
Item 5. Other Information	18
Item 6. Exhibits	18

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this report contain or may contain forward-looking statements. These statements, identified by words such as “plan”, “anticipate”, “believe”, “estimate”, “should”, “expect” and similar expressions include our expectations and objectives regarding our future financial position, operating results and business strategy. These statements are subject to known and unknown risks, uncertainties and other factors, which may cause actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward - looking statements. These forward-looking statements were based on various factors and were derived utilizing numerous assumptions and other factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, our ability to secure suitable financing to continue with our existing business or change our business and conclude a merger, acquisition or combination with a business prospect, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors. Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described in connection with any forward-looking statements that may be made herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Readers should carefully review this report in its entirety, including but not limited to our financial statements and the notes thereto and the risks described in our Annual Report on Form 10-K for the fiscal year ended February 29, 2016. We advise you to carefully review the reports and documents we file from time to time with the Securities and Exchange Commission (the “SEC”), particularly our quarterly reports on Form 10-Q and our current reports on Form 8-K. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

OTHER PERTINENT INFORMATION

When used in this report, the terms, “we,” the “Company,” “OMVS”, “our,” and “us” refers to On the Move Systems Corp., a Nevada corporation.

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PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ON THE MOVE SYSTEMS CORP.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	August 31, 2016			February 29, 2016
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	735		$	2,223
Prepaid expenses		651			3,484
Total current assets		1,386			5,707
Fixed assets net of accumulated depreciation of $841 and $182, respectively		3,080			3,739
TOTAL ASSETS	$	4,466		$	9,446
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	354,254		$	302,136
Advances payable		1,594			1,594
Current portion of convertible notes payable, net of discount of $350,560 and $422,298, respectively		742,697			515,418
Short-term convertible notes payable, net of discount of $39,165 and $7,333, respectively		79,539			38,667
Short-term accrued interest payable		4,243			—
Current portion of accrued interest payable		254,674			185,447
Current portion of capital lease		3,861			3,775
Total current liabilities		1,440,862			1,047,037
Convertible notes payable, net of discount of $371,900 and $500,485, respectively, net of current portion.		425,194			418,521
Accrued interest payable		132,911			105,492
Capital lease obligation		5,425			7,378
Derivative liability		36,671,152			—
TOTAL LIABILITIES		38,675,544			1,578,428
COMMITMENTS AND CONTINGENCIES		—			—
STOCKHOLDERS’ EQUITY (DEFICIT)
Common Stock, $0.001 par value; 480,000,000 shares authorized 5,537,816 and 4,908,816 shares issued and outstanding at August 31, 2016 and February 29, 2016, respectively.		5,538			4,909
Series E Preferred Stock, $0.001 par value; 1,000,000 shares authorized; 1,000,000 shares issued and outstanding at August 31, 2016 and February 29, 2016, respectively.		1,000			1,000
Preferred Stock, undesignated; 19,000,000 shares authorized; no shares issued and outstanding at August 31, 2016 and February 29, 2016, respectively.		—			—
Additional paid-in capital		(41,831,860	)		6,072,872
Retained earnings		3,154,244			(7,647,763	)
Total stockholders’ deficit		(38,671,078	)		(1,568,982	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	4,466		$	9,446

The accompany notes are an integral part of these unaudited consolidated financial statements.

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ON THE MOVE SYSTEMS CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Six months ended August 31,						Three months ended August 31,
	2016			2015			2016			2015
OPERATING EXPENSES
General and administrative expenses	$	160,595		$	266,393		$	93,702		$	114,399
Operating Loss		(160,595	)		(266,393	)		(93,702	)		(114,399	)
OTHER INCOME (EXPENSE)
Interest expense		(345,645	)		(331,698	)		(207,170	)		(144,059	)
Gain on account payable forgiveness		30,000			—			30,000			—
Gain on derivative instruments		11,321,247			—			11,321,247			—
Loss on debt covenant violation		(43,000	)		—			(43,000	)		—
Total Other Income (Expense)		10,962,602			(331,698	)		11,101,077			(144,059	)
NET INCOME (LOSS)	$	10,802,007		$	(598,091	)	$	11,007,375		$	(258,458	)
NET INOME (LOSS) PER COMMON SHARE –
Basic	$	2.11		$	(0.39	)	$	2.13		$	(0.11	)
Diluted	$	(0.00	)	$	(0.39	)	$	(0.00	)	$	(0.11	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING –
Basic		5,126,832			1,551,656			5,156,914			2,311,368
Diluted		383,759,899			1,551,656			383,767,130			2,311,368

The accompany notes are an integral part of these unaudited consolidated financial statements.

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ON THE MOVE SYSTEMS CORP.

CONSOLIDATED STATEMENT OF CHANGE IN SHAREHOLDERS’ DEFICIT

(UNAUDITED)

	Common Stock			Series E Preferred Stock			Additional Paid-In			Accumulated
	Shares	Amount		Shares	Amount		Capital			Deficit			Total
BALANCE, February 29, 2016	4,908,816	$	4,909	1,000,000	$	1,000	$	6,072,872		$	(7,647,763	)	$	(1,568,982	)
Common stock issued for debt and interest conversion	629,000		629	—		—		20,567			—			21,196
Beneficial conversion feature on issuance of convertible note payable	—		—	—		—		35,100			—			35,100
Derivative liabilities reclassified from additional paid-in capital	—		—	—		—		(47,960,399	)					(47,960,399	)
Net Income	—		—	—		—		—			10,802,007			10,802,007
BALANCE, August 31, 2016	5,537,816	$	5,538	1,000,000	$	1,000	$	(41,831,860	)	$	3,154,244		$	(38,671,078	)

The accompany notes are an integral part of these unaudited consolidated financial statements.

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ON THE MOVE SYSTEMS CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six months ended August 31,
	2016			2015
CASH FLOW FROM OPERATING ACTIVITIES:
Net income (loss)	$	10,802,007		$	(598,091	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount on convertible note payable		244,091			252,246
Depreciation & amortization		659			9,250
Gain on accounts payable forgiveness		(30,000	)		—
Less on debt covenant violation		43,000			—
Gain on derivative instruments		(11,321,247	)		—
Changes in operating assets and liabilities:
Accounts receivable		—			3,750
Prepaid expenses		2,833			—
Accounts payable and accrued liabilities		89,118			103,925
Accrued interest payable		101,418			78,134
NET CASH USED IN OPERATING ACTIVITIES		(68,121	)		(150,786	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advances		35,100			157,012
Proceeds from convertible promissory note		33,500			—
Repayment of capital lease		( 1,967	)		(2,763	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		66,633			154,249
NET INCREASE (DECREASE) IN CASH		(1,488	)		3,463
CASH, at the beginning of the period		2,223			2,679
CASH, at the end of the period	$	735		$	6,142
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	234		$	—
Taxes	$	—		$	—
Noncash investing and financing transaction:
Refinancing of advances into convertible notes payable	$	35,100		$	157,012
Beneficial conversion discount on convertible note payable	$	35,100		$	157,012
Conversion of convertible notes payable and interest	$	21,196		$	183,277
Derivative liabilities reclassified from additional paid-in capital	$	47,960,399		$	—
Debt discount from recognition of derivative liabilities	$	32,000		$	—

The accompany notes are an integral part of these unaudited consolidated financial statements.

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ON THE MOVE SYSTEMS CORP.

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2016

Note 1. General Organization and Business

On the Move Systems Corp. (“we”, “us”, “our”, “OMVS”, or the “Company”) was incorporated in Nevada on March 25, 2010. We reincorporated into Nevada on February 17, 2015. Our business focus is transportation services. We are currently exploring the on-demand logistics market by developing a network of logistics partnerships. Our year-end is February 28. The company is located at 701 North Green Valley Parkway, Suite 200, Henderson, Nevada 89074. Our telephone number is 702-990-3271.

Our business focus is transportation-related technology services.  We are currently exploring the online, on-demand logistics market by developing a shared economy network of trucking partnerships. We are in the process of building a shared economy app designed to put independent drivers and brokers together for more efficient pricing and booking, optimized operations and quick delivery turnarounds.  We have signed a letter of intent with a Houston-area software design firm regarding development of such a platform.  This app, when released, will revolutionize the trucking industry by connecting national and local carriers, enabling each to maximize revenues and reduce costs.

Note 2. Going Concern

The accompanying 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, 2016, the Company had negative cash flow from operating activities of $33,121. As of August 31, 2016, the Company had negative working capital of $1,439,476. Management does not anticipate having positive cash flow from operations in the near future. These factors raise a substantial doubt about the Company’s ability to continue as a going concern.

The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business.

Management has plans to address the Company’s financial situation as follows:

In the near term, management plans to continue to focus on raising the funds necessary to implement the Company’s business plan. Management will continue to seek out debt financing to obtain the capital required to meet the Company’s financial obligations. There is no assurance, however, that lenders will continue to advance capital to the Company or that the new business operations will be profitable. The possibility of failure in obtaining additional funding and the potential inability to achieve profitability raises doubts about the Company’s ability to continue as a going concern.

In the long term, management believes that the Company’s projects and initiatives will be successful and will provide cash flow to the Company that will be used to finance the Company’s future growth. However, there can be no assurances that the Company’s planned activities will be successful, or that the Company will ultimately attain profitability. The Company’s long-term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to achieve adequate profitability and cash flows from operations to sustain its operations.

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Note 3. Summary of Significant Accounting Policies

Interim Financial Statements

These unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements for the fiscal year ended February 29, 2016 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the “SEC”).

The results of operations for the six month period ended August 31, 2016 are not necessarily indicative of the results to be expected for the full fiscal year ending February 28, 2017.

Principles of Consolidation

The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries, On the Move Experience, LLC and OMV Transports, LLC. Intercompany transactions have been eliminated in consolidation. The fiscal year-end for the Company and its subsidiaries is February 28.

Fair Value of Financial Instruments

ASC 820 Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services.

Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort.

As of August 31, 2016 the significant inputs to the Company’s derivative liability calculation were Level 3 inputs.

The following schedule summarizes the valuation of financial instruments at fair value in the balance sheets as of August 31, 2016:

	Fair Value Measurements as of August 31, 2016
	Level 1		Level 2		Level 3
Assets
None	$		$		$
Total assets		—		—		—
Liabilities
Warrant derivative liability		—		—		89,521
Conversion option derivative liability		—		—		36,582,396
Total liabilities		—		—		36,671,152

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The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy:

	Significant Unobservable Inputs (Level 3) Three Months Ended August 31,					Significant Unobservable Inputs (Level 3) Six Months Ended August 31,
	2016			2015		2016			2015
Beginning balance	$	—		$	—	$	—		$	—
Change in fair value		11,321,247			—		11,321,247			—
Additions reclassified from equity		(47,960,399	)		—		(47,960,399	)		—
Other		(32,000	)		—		(32,000	)		—
Ending balance	$	36,671,152		$	—	$	36,671,152		$	—

Note 4. Advances

During the six months ended August 31, 2016, Vista View Ventures, Inc. (“Vista View”) paid $35,100 of expenses on behalf of the company. These funds were paid from Vista View to KMDA and then by KMDA to the Company on behalf of Vista View. At the end of the quarter, we issued a convertible promissory note to Vista View for $35,100. See Note 5 and Note 6.

At August 31, 2016 and February 29, 2016, we did not owe Vista View anything for advances provided to us or expenses paid on our behalf.

At August 31, 2016 and February 29, 2016, we owed a third party $1,594 and $1,594, respectfully, for advances provided to us.

Note 5. Related Party Transactions

Our chief executive officer is involved in other business activities and may, in the future, become involved in other business opportunities that become available. They may face a conflict in selecting between the Company and other business interests. We have not formulated a policy for the resolution of such conflicts.

Services Provided by KM Delaney & Assoc.

During the six months ended August 31, 2016 and 2015, KM Delaney & Associates (“KMDA”) provided certain administrative functions to us. The services provide include accounting and bookkeeping services, treasury and cash management services, financial reporting, and other support staffing requirements. As part of the services provided to the Company, KMDA receives the advances from the lender (See note 4) and disburses those funds to us. We discontinued our arrangement with KMDA on April 30, 2016. During the six months ended August 31, 2016 and 2015, KMDA billed us $35,100 and $95,254, respectively, for those services. As of August 31, 2016 and February 29, 2016, we owed KMDA $183,568 and $198,568, respectively. These amounts are included in accounts payable on the balance sheet.

Note 6. Gain on Accounts Payable Forgiveness

During the six months ended August 31, 2016, we impaired the value of our 10 tri-axel truck trailers. The original agreement had called for a payment of $60,000, of which we had paid $30,000. The seller agreed to forgive the remaining $30,000, which we recorded as a gain on accounts payable forgiveness.

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Note 7. Convertible Notes Payable

Convertible notes payable consist of the following as of August 31, 2016 and February 29, 2016:

Issued	Maturity	Interest Rate	Conversion Rate per Share	Balance August 31, 2016			Balance February 29, 2016
February 28, 2011	February 27, 2013	7%	$0.015	$	32,600		$	32,600
January 31, 2013	February 28, 2017	10%	$0.01		119,091			120,562
May 31, 2013	November 30, 2016	10%	$0.01		261,595			261,595
November 30, 2013	November 30, 2017	10%	$0.01		396,958			396,958
August 31, 2014	August 31, 2016	10%	$0.002		355,652			355,652
November 30, 2014	November 30, 2016	10%	$0.002		103,950			103,950
February 28, 2015	February 28, 2017	10%	$0.001		63,357			63,357
May 31, 2015	May 31, 2017	10%	$1.00		65,383			65,383
August 31, 2015	August 31, 2017	10%	$0.30		91,629			91,629
November 30, 2015	November 30, 2018	10%	$0.30		269,791			269,791
February 3, 2016	February 3, 2017	5%	49% discount		24,705			46,000
February 29, 2016	February 28, 2019	10%	60% discount		95,245			95,245
March 22, 2016	March 22, 2017	5%	49% discount		60,000			—
May 31, 2016	May 31, 2019	10%	60% discount		35,100			—
July 18, 2016	July 18, 2017	8%	49% discount		9,000			—
August 30, 2016	August 30, 2017	8%	50% discount		25,000			—
Total convertible notes payable				$	2,009,056		$	1,902,722
Less: short-term convertible notes payable					(118,704	)		(46,000	)
Less: current portion of convertible notes payable					(1,093,257	)		(937,716	)
Less: discount on noncurrent convertible notes payable					(371,900	)		(500,485	)
Long-term convertible notes payable, net of discount				$	425,195		$	418,521
Current portion of convertible notes payable					1,093,257			937,716
Less: discount on current portion of convertible notes payable					(350,560	)		(422,298	)
Current portion of convertible notes payable, net of discount				$	742,697		$	515,418
Short-term convertible notes					118,704			46,000
Less: discount on short-term convertible notes					(39,165	)		(7,333	)
Short-term convertible notes, net of discount				$	79,539		$	38,667

All of the notes above are unsecured. The note dated February 28, 2011 is currently is in default and bears default interest at 18% per annum.

Convertible notes issued

Issued	Maturity	Interest Rate	Conversion Rate per Share		Amount of Note		Original Issue Discount		Beneficial Conversion Feature
March 22, 2016	March 22, 2017	5%		49% discount (1)	$	40,000	$	6,500	$	—
May 31, 2016	May 31, 2019	10%		60% discount (2)		35,100		—		35,100
July 18, 2016	July 18, 2017	8%		49% discount (1)		9,000		2,000		—
August 30, 2016	August 30, 2017	8%		50% discount (3)		25,000		—		—
Total					$	108,420	$	8,500	$	35,100

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__________

(1)	This note is convertible at 49% discount to the lowest trading price over the preceding 20 trading days. The note becomes convertible 180 days after issuance.
(2)	This note is convertible at a 60% discount to the volume weighted average closing price over the preceding five trading days, subject to the condition that the conversion price shall never be less than $0.01 per share.
(3)	This note is convertible at 50% discount to the lowest trading price over the preceding 20 trading days. As this note was a modification of an existing note that was convertible, it is immediately convertible.

Advances Refinanced into Convertible Notes

During the six months ended August 31, 2016, we refinanced $35,100 of non-interest bearing advances into a convertible note. All principal and accrued interest is payable on the maturity date.

The Company evaluated the terms of the notes in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. We determined that the conversion features did not meet the definition of a liability and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. We evaluated the conversion features for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the notes and was deemed to be less than the market value of underlying common stock at the inception of the note. Therefore, we recognized a discount for the beneficial conversion features of $67,100, in aggregate, on the date the notes were signed. We amortize the discounts for the notes dated May 31, 2016 at an effective interest rates of 317.38%. The beneficial conversion feature was recorded as an increase in additional paid-in capital and a discount to the convertible notes payable. The discount to the convertible notes payable will be amortized to interest expense over the life of the notes. During the six months ended August 31, 2016 and 2015, we amortized discount on convertible notes payable of $239,575 and $252,246, respectively, to interest expense.

Convertible Notes Issued for Cash

On March 22, 2016, we issued a convertible promissory note for $40,000. The note has an original issue discount of $6,500. The note matures on March 22, 2017, and bears interest at 5% per annum. The terms on the note allow the noteholder to convert principal and accrued interest into shares of our common stock beginning 180 days after issuance. The variable conversion rate is a 49% discount to the lowest trading price over the preceding 20 trading days.

On August 30, 2016, we issued a convertible promissory note with a face value of $31,320. The note has an original issue discount of $6,320. The note matures on August 30, 2017, and bears interest at 8% per annum. The terms of the note allow the noteholder to convert principal and accrued interest into shares of common stock beginning 180 days after issuance. The variable conversion rate is a 50% discount to the lowest trading price over the preceding 20 trading days. As of August 31, 2016, we had not received the cash proceeds from this note, so these funds appear on the balance sheet as “Note proceeds receivable.” The funds were received subsequent to the end of the quarter, and is considered a subsequent event.

We evaluated the terms of the notes in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. The conversion met the definition of a liability and therefore we bifurcated the conversion feature and account for it as a separate derivative liability. We recognized derivative liability of $48,833. $25,000 of this was recorded as a discount to the convertible note, and the remaining $23,833 was immediately expensed to loss on derivative instruments.

Convertible Notes Issued for payment of Accounts Payable

On July 18, 2016, we issued a convertible promissory note for $9,000, with an original issue discount of $2,000. The note matures on July 18, 2017, and bears interest at 8% per annum. The noteholder paid the proceeds from this note directly to one of our vendors to reduce our outstanding account payable. The variable conversion rate is a 49% discount to the lowest trading price over the preceding 20 trading days. The terms of the note allow the noteholder to convert principal and accrued interest into shares of common stock immediately upon issuance.

- 12 -

We evaluated the terms of the notes in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. The conversion features met the definition of a liability and therefore we bifurcated the conversion feature and account for it as a separate derivative liability. We recognized a $19,894 derivative liability related to the note using Black-Scholes model, $7,000 of which was recorded as a discount, and $12,894 as a loss on derivative instruments. Due to the embedded derivative, we had to evaluate our existing convertible notes for derivative liabilities. See Note 8.

The terms of the convertible note required us to issue 900,000 warrants with a strike price of $0.01 per share, with a maturity date of July 18, 2021. We recognized $117,058 derivative liability, which was immediately recognized as a loss on derivative instruments.

Violation of Debt Covenants

We violated the terms of our agreements for the convertible notes dated February 3, 2016 and March 22, 2016 on July 20, 2016 and July 25, 2016, respectively. The agreement had required us to file all quarterly and annual reports with the SEC on time. We filed our quarterly report on form 10-Q for the period May 31, 2016 after the deadline. As a result, the annual interest rate on each note increased from 5% per year to 18% per year. Additionally, the agreement called for us to increase the principal balance of the notes by 50% of their original face value. We recognized a loss on debt covenant violations of $23,000 and $20,000 on the notes dates February 3, 2016 and March 22, 2016, respectively. $25,000 of one of the note was re-assigned to another note holder and convertible immediately. The conversion feature was determined to be derivative liabilities, see Note 8.

Conversions to common stock

During six months ended August 31, 2016, the holders of the Convertible Note Payable dated January 31, 2013 elected to convert principal and accrued interest in the amounts show below into shares of common stock at a rate of $0.01 per share. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion.

Date	Amount Converted		Number of Shares Issued
March 1, 2016	$	1,900	190,000
August 8, 2016		9,871	175,000
August 26, 2016		9,425	264,000
Total	$	21,196	629,000

Note 8. Derivative Liabilities

On July 18, 2016, we issued a convertible promissory note with embedded variable price conversion options that is determined to be derivative instrument (see Note 7). We recognized a derivative liability of $19,894, which was recorded as a $7,000 discount to the note and a loss on derivative instruments of $12,894.

The same note required us to issue 900,000 warrants, which are also valued as a derivative instrument. Therefore, we recognized a derivative liability $117,058. This was recorded as a $117,058 loss on derivative instruments.

The embedded derivative in the July 18, 2016 convertible note tainted our outstanding convertible notes issues prior to that period. We calculated a $47,960,399 derivative liability related to those notes, which we reclassified from additional paid-in capital.

On August 30, 2016, we issued a modified convertible promissory note for $25,000, which had an embedded derivative liability of $48,833. We recognized this as a $25,000 discount against the note and a $23,833 loss on derivative instruments.

On August 31, 2016, we revalued the fair value all of our derivative instruments and determined that we had total derivative liabilities of $36,671,152. We recognized a gain on derivative instruments of $11,475,032. During the six months ended August 31, 2016, we recognized gain on derivative of $11,321,247.

We used Black-Scholes model to determine the fair value of the conversion option and warrants.

As of August 31, 2016, the aggregate fair value of the outstanding derivative liabilities was $36,371,152.

- 13 -

The Company estimated the fair value of the derivative liabilities using the Black-Scholes option pricing model using the following key assumptions during the six months ended August 31, 2016

Expected dividends	—	%
Expected term (years)	0.25 – 5.00
Volatility	121% – 295	%
Risk-free rate	1.57% – 1.59	%

Note 9. Debt Payment Obligations

	Twelve months ended August 31,
		2017		2018		2019		2020		2021		Total
Convertible notes	$	1,211,961	$	396,958	$	400,137	$	—	$	—	$	2,009,056
Capital lease		3,861		4,038		1,387		—		—		9,286
Total	$	1,215822	$	400,996	$	401,524	$	—	$	—	$	2,018,342

Note 10. Earnings per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS is similarly calculated except that the common shares outstanding for the period is increased to reflect the potential dilution that could occur if outstanding convertible notes payable were converted and warrants were exercised. Anti-dilutive shares represent potentially dilutive securities that which are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive.

The following is a calculation of basic and diluted weighted-average shares outstanding:

	Six months ended August 31,				Three months ended August 31,
	2016		2015		2016		2015
Weighted-average shares – basic		5,126,832		1,551,656		5,156,914		2,311,368
Dilution effect of warrants		850,793		—		827,942		—
Dilution effect of convertible notes payable		377,782,274		—		377,782,274		—
Weighted-average shares - diluted		383,759,899		1,551,656		383,767,130		2,311,368

The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect:

	Six months ended August 31,				Three months ended August 31,
	2016		2015		2016		2015
Weighted-average common stock issuable under convertible notes payable excluded from diluted EPS due to the anti-dilutive effect due to net loss		—		1,692		—		1,393

Note 10. Subsequent Events

On September 4, 2016, we issued into a convertible promissory note for $31,320, for $25,000 in cash proceeds.

On September 8, 2016, the holder of our modified convertible promissory note dated August 30, 2016, converted $6,002 of principal and accrued interest into 193,633 shares of our common stock.

On September 9, 2016, the holder of our convertible promissory note dated February 3, 2016, converted $7,268 of principal into 285,000 shares of our common stock.

On September 22, 2016, the holder of our convertible promissory note dated February 3, 2016, converted $3,065 of principal into 299,000 shares of our common stock.

- 14 -

On September 29, 2016, the holder of our modified convertible promissory note dated August 30, 2016, converted $1,558 of principal and accrued interest into 259,635 shares of our common stock.

On September 29, 2016, the holder of our convertible promissory note dated February 3, 2016, converted $1,928 of principal into 315,000 share of our common stock.

On October 10, 2016, the holder of our modified convertible promissory note dated August 30, 2016, converted $1,713 of principal and accrued interest into 339,142 shares of our common stock.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

On the Move Systems Corp. (“we”, “us”, “our”, “OMVS”, or the “Company”) was incorporated in Nevada on March 25, 2010. We reincorporated into Nevada on February 17, 2015. Our business focus is transportation services. We are currently exploring the on-demand logistics market by developing a network of logistics partnerships. Our year-end is February 28. The company is located at 701 North Green Valley Parkway, Suite 200, Henderson, Nevada 89074. Our telephone number is 702-990-3271.

Our business focus is transportation-related technology services.  We are currently exploring the online, on-demand logistics market by developing a shared economy network of trucking partnerships.  OMVS is in the process of building a shared economy app designed to put independent drivers and brokers together for more efficient pricing and booking, optimized operations and quick delivery turnarounds.  The company has signed a letter of intent with a Houston-area software design firm regarding development of such a platform.  The Company believes that this app, when released, could revolutionize the trucking industry by connecting national and local carriers, enabling each to maximize revenues and reduce costs.

Critical Accounting Policies

We prepare our Consolidated financial statements in conformity with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends, and other factors that management believes to be important at the time the condensed Consolidated financial statements are prepared. On a regular basis, we review our accounting policies and how they are applied and disclosed in our condensed Consolidated financial statements.

While we believe that the historical experience, current trends and other factors considered support the preparation of our condensed consolidated financial statements in conformity with GAAP, actual results could differ from our estimates and such differences could be material.

For a full description of our critical accounting policies, please refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report for the year ended February 29, 2016 on Form 10-K.

Results of Operations

Six months ended August 31, 2016 compared to the six months ended August 31, 2015.

General and Administrative Expenses

We recognized general and administrative expenses in the amount of $160,595 and $266,393 for the six months ended August 31, 2016 and ended 2015, respectively.  The decrease is due to a reduction in professional fees.

Interest Expense

Interest expense increased from $331,698 for the six months ended August 31, 2015 to $345,645 for the six months ended August 31, 2016. Interest expense for the six months ended August 31, 2016 included amortization of discount on convertible notes payable of $244,091, compared to $252,246 for the comparable period of 2015.

- 15 -

Gain on Derivative Instruments

During the six months ended August 31, 2016, we realized a $11,321,247 gain on the derivative liabilities related to our convertible notes and warrants. We had no derivative liabilities during the six months ended August 31, 2015.

Gain on Debt Forgiveness

During the six months ended August 31, 2016, we recognized a $30,000 gain on accounts payable that had been forgiven. We had no gain on debt forgiveness in the prior year.

Loss on Debt Covenant Violations

During the six months ended August 31, 2016, we recognized a $43,000 loss on debt covenant violations. We had no losses on debt covenant violations in the prior year. See Note 7.

Net Income

We had net income of $10,802,007 for the six months ended August 31, 2016 as compared to a $598,091 loss for the comparable period of 2015. The increase in net income relates entirely to the gain on derivative instruments related to our convertible notes payable and warrants.

Three months ended August 31, 2016 compared to the three months ended August 31, 2015.

General and Administrative Expenses

We recognized general and administrative expenses in the amount of $93,702 and $114,399 for the three months ended August 31, 2016 and ended 2015, respectively. The decrease is due to lower professional fees during the current period.

Interest Expense

Interest expense increased from $144,059 for the three months ended August 31, 2015 to $207,170 for the three months ended August 31, 2016.

Interest expense for the three months ended August 31, 2016 included amortization of discount on convertible notes payable of $154,800, compared to $105,146 for the comparable period of 2015.

The remaining interest expense was due to interest on our convertible notes payable and the interest portion of our capital lease.

Gain on Derivative Instruments

During the three months ended August 31, 2016, we realized a $11,321,247 gain on the derivative liabilities related to our convertible notes. We had no derivative liabilities during the three months ended August 31, 2015.

Gain on Debt Forgiveness

During the three months ended August 31, 2016, we recognized a $30,000 gain on accounts payable that had been forgiven. We had no gain on debt forgiveness in the prior year.

Loss on Debt Covenant Violations

During the three months ended August 31, 2016, we recognized a $43,000 loss on debt covenant violations. We had no losses on debt covenant violations in the prior year. See Note 7.

Net Income

We had net income of $11,007,375 for the three months ended August 31, 2016 as compared to a $258,458 loss for the comparable period of 2015. The increase in net income relates entirely to the gain on derivative instruments related to our convertible notes payable.

- 16 -

Liquidity and Capital Resources

At August 31, 2016, we had cash on hand of $735. The company has negative working capital of $1,439,476 . Net cash used in operating activities for the six months ended August 31, 2016 was $33,121. Cash on hand is adequate to fund our operations for less than one month. We do not expect to achieve positive cash flow from operating activities in the near future. We will require additional cash in order to implement our business plan. There is no guarantee that we will be able to attain fund when we need them or that funds will be available on terms that are acceptable to the Company. We have no material commitments for capital expenditures as of August 31, 2016.

Additional Financing

Additional financing is required to continue operations. Although actively searching for available capital, the Company does not have any current arrangements for additional outside sources of financing and cannot provide any assurance that such financing will be available.

Off Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This item is not applicable to smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES

Management’s Report on Internal Control over Financial Reporting

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of August 31, 2016. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of August 31, 2016, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed by us under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

1.

As of August 31, 2016, we did not maintain effective controls over the control environment. Specifically we have not developed and effectively communicated to our employees our accounting policies and procedures. This has resulted in inconsistent practices. Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

2.

As of August 31, 2016, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness.

Our management, including our principal executive officer and principal financial officer, who is the same person, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

Change in Internal Controls Over Financial Reporting

There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On October 12, 2015, we received notice that it had been sued in the United States District Court for the Central District of California. The plaintiff alleges that we obtained certain trade secrets through a third party also named in the suit. We believe the suit is without merit and intend to vigorously defend it.

ITEM 1A. RISK FACTORS

This item is not applicable to smaller reporting companies.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On March 1, 2016, we issued 190,000 shares of common stock upon conversion of $1,900 of a convertible note.

Each issuance of securities was issued without registration in reliance of the exemption from registration Section 3(a)9 of the Securities Act of 1933.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company has not defaulted upon senior securities.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to the Company.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

3.1	Articles of Incorporation (1)
3.2	Bylaws (2)
14	Code of Ethics (2)
21	Subsidiaries of the Registrant (3)
31.1	Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer and principal financial and account officer. (4)
32.1	Section 1350 Certification of principal executive officer and principal financial accounting officer. (4)
101	XBRL data files of Financial Statement and Notes contained in this Quarterly Report on Form 10-Q. (4) (5)

__________

(1)	Incorporated by reference of our Form DEF 14C file with the Securities and Exchange Commission on February 11, 2015.
(2)	Incorporated by reference to our Form S-1 filed with the Securities and Exchange Commission on August 4, 2010.
(3)	Previously filed or furnished with original Quarterly Report on Form 10-Q for August 31, 2016 filed with the Securities and Exchange Commission on November 4, 2016.
(4)	Filed or furnished herewith.
(5)	In accordance with Regulation S-T, the Interactive Data Files in Exhibit 101 to the Quarterly Report on Form 10-Q shall be deemed “furnished” and not “filed.”

- 18 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	On the Move Systems Corp.
Date: January 23, 2017	BY: /s/ Robert Wilson
	Robert Wilson
	President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Treasurer and Director

- 19 -

EX-31

Exhibit 31.1

RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Robert Wilson, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A Amendment No. 1 for the period ended August 31, 2016 of On the Move Systems Corp.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 23, 2017	BY: /s/ Robert Wilson
	Robert Wilson
	President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Treasurer and Director

EX-32

Exhibit 32.1

SECTION 1350 CERTIFICATION

In connection with the quarterly report of On the Move Systems Corp. (the “Company”) on Form 10-Q/A Amendment No. 1 for the period ended August 31, 2016 as filed with the Securities and Exchange Commission (the “Report”), I, Robert Wilson, President of the Company, certify, pursuant to 18 U.S.C. SS. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: January 23, 2017	BY: /s/ Robert Wilson
	Robert Wilson
	President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Treasurer and Director

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Aug. 31, 2016	Nov. 02, 2016
Document And Entity Information
Entity Registrant Name	ON THE MOVE SYSTEMS CORP.
Entity Central Index Key	0001498148
Document Type	10-Q
Trading Symbol	OMVS
Document Period End Date	Aug. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--02-28
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		7,229,226
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2017

XML

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Aug. 31, 2016	Feb. 29, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 735	$ 2,223
Prepaid expenses	651	3,484
Total current assets	1,386	5,707
Fixed assets net of accumulated depreciation of $841 and $182, respectively	3,080	3,739
TOTAL ASSETS	4,466	9,446
CURRENT LIABILITIES
Accounts payable and accrued liabilities	354,254	302,136
Advances payable	1,594	1,594
Current portion of convertible notes payable, net of discount of $350,560 and $422,298, respectively	742,697	515,418
Short-term convertible notes payable, net of discount of $39,165 and $7,333, respectively	79,539	38,667
Short-term accrued interest payable	4,243
Current portion of accrued interest payable	254,674	185,447
Current portion of capital lease	3,861	3,775
Total current liabilities	1,440,862	1,047,037
Convertible notes payable, net of discount of $371,900 and $500,485, respectively, net of current portion.	425,194	418,521
Accrued interest payable	132,911	105,492
Capital lease obligation	5,425	7,378
Derivative liability	36,671,152
TOTAL LIABILITIES	38,675,544	1,578,428
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Common Stock, $0.001 par value; 480,000,000 shares authorized 5,537,816 and 4,908,816 shares issued and outstanding at August 31, 2016 and February 29, 2016, respectively.	5,538	4,909
Series E Preferred Stock, $0.001 par value; 1,000,000 shares authorized; 1,000,000 shares issued and outstanding at August 31, 2016 and February 29, 2016, respectively.	1,000	1,000
Preferred Stock, undesignated; 19,000,000 shares authorized; no shares issued and outstanding at August 31, 2016 and February 29, 2016, respectively.
Additional paid-in capital	(41,831,860)	6,072,872
Retained earnings	3,154,244	(7,647,763)
Total stockholders' deficit	(38,671,078)	(1,568,982)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 4,466	$ 9,446

XML

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	Aug. 31, 2016	Feb. 29, 2016
Statement of Financial Position [Abstract]
Fixed assets, accumulated depreciation	$ 841	$ 182
Current convertible notes payable, discount	350,560	422,298
Short term convertible notes payable, discount	39,165	7,333
Convertible notes payable, discount	$ 371,900	$ 500,485
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, authorized	480,000,000	480,000,000
Common Stock, issued	5,537,816	4,908,816
Common Stock, outstanding	5,537,816	4,908,816
Series E Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Series E Preferred Stock, authorized	1,000,000	1,000,000
Series E Preferred Stock, issued	1,000,000	1,000,000
Series E Preferred Stock, outstanding	1,000,000	1,000,000
Preferred Stock, authorized	19,000,000	19,000,000
Preferred Stock, issued	0	0
Preferred Stock, outstanding	0	0

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
OPERATING EXPENSES
General and administrative expenses	$ 93,702	$ 114,399	$ 160,595	$ 266,393
Operating Loss	(93,702)	(114,399)	(160,595)	(266,393)
OTHER INCOME (EXPENSE)
Interest expense	(207,170)	(144,059)	(345,645)	(331,698)
Gain on account payable forgiveness	30,000		30,000
Gain on derivative instruments	11,321,247		11,321,247
Loss on debt covenant violation	(43,000)		(43,000)
Total Other Income (Expense)	11,101,077	(144,059)	10,962,602	(331,698)
NET INCOME (LOSS)	$ 11,007,375	$ (258,458)	$ 10,802,007	$ (598,091)
NET INOME (LOSS) PER COMMON SHARE -
Basic (in dollars per share)	$ 2.13	$ (0.11)	$ 2.11	$ (0.39)
Diluted (in dollars per share)	$ 0.00	$ (0.11)	$ 0.00	$ (0.39)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -
Basic (in shares)	5,156,914	2,311,368	5,126,832	1,551,656
Diluted (in shares)	383,767,130	2,311,368	383,759,899	1,551,656

XML

CONSOLIDATED STATEMENT OF CHANGE IN SHAREHOLDERS' DEFICIT (UNAUDITED) - 6 months ended Aug. 31, 2016 - USD ($)	Common Stock [Member]	Series E Preferred Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Beginning at Feb. 29, 2016	$ 4,909	$ 1,000	$ 6,072,872	$ (7,647,763)	$ (1,568,982)
Balance at Beginning (in shares) at Feb. 29, 2016	4,908,816	1,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for debt and interest conversion	$ 629		20,567		21,196
Common stock issued for debt and interest conversion (in shares)	629,000
Beneficial conversion feature on issuance of convertible note payable			35,100		35,100
Derivative liabilities reclassified from additional paid-in capital			(47,960,399)		(47,960,399)
Net Income				10,802,007	10,802,007
Balance at Ending at Aug. 31, 2016	$ 5,538	$ 1,000	$ (41,831,860)	$ 3,154,244	$ (38,671,078)
Balance at Ending (in shares) at Aug. 31, 2016	5,537,816	1,000,000

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
CASH FLOW FROM OPERATING ACTIVITIES:
Net income (loss)	$ 10,802,007	$ (598,091)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount on convertible note payable	244,091	252,246
Depreciation & amortization	659	9,250
Gain on accounts payable forgiveness	(30,000)
Less on debt covenant violation	43,000
Gain on derivative instruments	(11,321,247)
Changes in operating assets and liabilities:
Accounts receivable		3,750
Prepaid expenses	2,833
Accounts payable and accrued liabilities	89,118	103,925
Accrued interest payable	101,418	78,134
NET CASH USED IN OPERATING ACTIVITIES	(68,121)	(150,786)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advances	35,100	157,012
Proceeds from convertible promissory note	33,500
Repayment of capital lease	(1,967)	(2,763)
NET CASH PROVIDED BY FINANCING ACTIVITIES	66,633	154,249
NET INCREASE (DECREASE) IN CASH	(1,488)	3,463
CASH, at the beginning of the period	2,223	2,679
CASH, at the end of the period	735	6,142
Cash paid during the period for:
Interest	234
Taxes
Noncash investing and financing transaction:
Refinancing of advances into convertible notes payable	35,100	157,012
Beneficial conversion discount on convertible note payable	35,100	157,012
Conversion of convertible notes payable and interest	21,196	183,277
Derivative liabilities reclassified from additional paid-in capital	47,960,399
Debt discount from recognition of derivative liabilities	$ 32,000

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General Organization and Business

6 Months Ended

Aug. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General Organization and Business

Note 1. General Organization and Business

On the Move Systems Corp. (“we”, “us”, “our”, “OMVS”, or the “Company”) was incorporated in Nevada on March 25, 2010. We reincorporated into Nevada on February 17, 2015. Our business focus is transportation services. We are currently exploring the on-demand logistics market by developing a network of logistics partnerships. Our year-end is February 28. The company is located at 701 North Green Valley Parkway, Suite 200, Henderson, Nevada 89074. Our telephone number is 702-990-3271.

Our business focus is transportation-related technology services.  We are currently exploring the online, on-demand logistics market by developing a shared economy network of trucking partnerships. We are in the process of building a shared economy app designed to put independent drivers and brokers together for more efficient pricing and booking, optimized operations and quick delivery turnarounds.  We have signed a letter of intent with a Houston-area software design firm regarding development of such a platform.  This app, when released, will revolutionize the trucking industry by connecting national and local carriers, enabling each to maximize revenues and reduce costs.

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Going Concern

6 Months Ended

Aug. 31, 2016

Accounting Policies [Abstract]

Going Concern

Note 2. Going Concern

The accompanying 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, 2016, the Company had negative cash flow from operating activities of $33,121. As of August 31, 2016, the Company had negative working capital of $1,439,476. Management does not anticipate having positive cash flow from operations in the near future. These factors raise a substantial doubt about the Company’s ability to continue as a going concern.

The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business.

Management has plans to address the Company’s financial situation as follows:

In the near term, management plans to continue to focus on raising the funds necessary to implement the Company’s business plan. Management will continue to seek out debt financing to obtain the capital required to meet the Company’s financial obligations. There is no assurance, however, that lenders will continue to advance capital to the Company or that the new business operations will be profitable. The possibility of failure in obtaining additional funding and the potential inability to achieve profitability raises doubts about the Company’s ability to continue as a going concern.

In the long term, management believes that the Company’s projects and initiatives will be successful and will provide cash flow to the Company that will be used to finance the Company’s future growth. However, there can be no assurances that the Company’s planned activities will be successful, or that the Company will ultimately attain profitability. The Company’s long-term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to achieve adequate profitability and cash flows from operations to sustain its operations.

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Significant Accounting Policies

6 Months Ended

Aug. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 3. Summary of Significant Accounting Policies

Interim Financial Statements

These unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements for the fiscal year ended February 29, 2016 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the “SEC”).

The results of operations for the six month period ended August 31, 2016 are not necessarily indicative of the results to be expected for the full fiscal year ending February 28, 2017.

Principles of Consolidation

The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries, On the Move Experience, LLC and OMV Transports, LLC. Intercompany transactions have been eliminated in consolidation. The fiscal year-end for the Company and its subsidiaries is February 28.

Fair Value of Financial Instruments

ASC 820 Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services.

Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort.

As of August 31, 2016 the significant inputs to the Company’s derivative liability calculation were Level 3 inputs.

The following schedule summarizes the valuation of financial instruments at fair value in the balance sheets as of August 31, 2016:

	Fair Value Measurements as of August 31, 2016
	Level 1		Level 2		Level 3
Assets
None	$		$		$
Total assets		—		—		—
Liabilities
Warrant derivative liability		—		—		89,521
Conversion option derivative liability		—		—		36,582,396
Total liabilities		—		—		36,671,152

The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy:

	Significant Unobservable Inputs (Level 3) Three Months Ended August 31,					Significant Unobservable Inputs (Level 3) Six Months Ended August 31,
	2016			2015		2016			2015
Beginning balance	$	—		$	—	$	—		$	—
Change in fair value		11,321,247			—		11,321,247			—
Additions reclassified from equity		(47,960,399	)		—		(47,960,399	)		—
Other		(32,000	)		—		(32,000	)		—
Ending balance	$	36,671,152		$	—	$	36,671,152		$	—

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Advances

6 Months Ended

Aug. 31, 2016

Debt Disclosure [Abstract]

Advances

Note 4. Advances

During the six months ended August 31, 2016, Vista View Ventures, Inc. (“Vista View”) paid $35,100 of expenses on behalf of the company. These funds were paid from Vista View to KMDA and then by KMDA to the Company on behalf of Vista View. At the end of the quarter, we issued a convertible promissory note to Vista View for $35,100. See Note 5 and Note 6.

At August 31, 2016 and February 29, 2016, we did not owe Vista View anything for advances provided to us or expenses paid on our behalf.

At August 31, 2016 and February 29, 2016, we owed a third party $1,594 and $1,594, respectfully, for advances provided to us.

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Related Party Transactions

6 Months Ended

Aug. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Note 5. Related Party Transactions

Our chief executive officer is involved in other business activities and may, in the future, become involved in other business opportunities that become available. They may face a conflict in selecting between the Company and other business interests. We have not formulated a policy for the resolution of such conflicts.

Services Provided by KM Delaney & Assoc.

During the six months ended August 31, 2016 and 2015, KM Delaney & Associates (“KMDA”) provided certain administrative functions to us. The services provide include accounting and bookkeeping services, treasury and cash management services, financial reporting, and other support staffing requirements. As part of the services provided to the Company, KMDA receives the advances from the lender (See note 4) and disburses those funds to us. We discontinued our arrangement with KMDA on April 30, 2016. During the six months ended August 31, 2016 and 2015, KMDA billed us $35,100 and $95,254, respectively, for those services. As of August 31, 2016 and February 29, 2016, we owed KMDA $183,568 and $198,568, respectively. These amounts are included in accounts payable on the balance sheet.

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Gain on Accounts Payable Forgiveness

6 Months Ended

Aug. 31, 2016

Gain On Accounts Payable Forgiveness

Gain on Accounts Payable Forgiveness

Note 6. Gain on Accounts Payable Forgiveness

During the six months ended August 31, 2016, we impaired the value of our 10 tri-axel truck trailers. The original agreement had called for a payment of $60,000, of which we had paid $30,000. The seller agreed to forgive the remaining $30,000, which we recorded as a gain on accounts payable forgiveness.

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Convertible Notes Payable

6 Months Ended

Aug. 31, 2016

Debt Disclosure [Abstract]

Convertible Notes Payable

Note 7. Convertible Notes Payable

Convertible notes payable consist of the following as of August 31, 2016 and February 29, 2016:

Issued	Maturity	Interest Rate	Conversion Rate per Share	Balance August 31, 2016			Balance February 29, 2016
February 28, 2011	February 27, 2013	7%	$0.015	$	32,600		$	32,600
January 31, 2013	February 28, 2017	10%	$0.01		119,091			120,562
May 31, 2013	November 30, 2016	10%	$0.01		261,595			261,595
November 30, 2013	November 30, 2017	10%	$0.01		396,958			396,958
August 31, 2014	August 31, 2016	10%	$0.002		355,652			355,652
November 30, 2014	November 30, 2016	10%	$0.002		103,950			103,950
February 28, 2015	February 28, 2017	10%	$0.001		63,357			63,357
May 31, 2015	May 31, 2017	10%	$1.00		65,383			65,383
August 31, 2015	August 31, 2017	10%	$0.30		91,629			91,629
November 30, 2015	November 30, 2018	10%	$0.30		269,791			269,791
February 3, 2016	February 3, 2017	5%	49% discount		24,705			46,000
February 29, 2016	February 28, 2019	10%	60% discount		95,245			95,245
March 22, 2016	March 22, 2017	5%	49% discount		60,000			—
May 31, 2016	May 31, 2019	10%	60% discount		35,100			—
July 18, 2016	July 18, 2017	8%	49% discount		9,000			—
August 30, 2016	August 30, 2017	8%	50% discount		25,000			—
Total convertible notes payable				$	2,009,056		$	1,902,722
Less: short-term convertible notes payable					(118,704	)		(46,000	)
Less: current portion of convertible notes payable					(1,093,257	)		(937,716	)
Less: discount on noncurrent convertible notes payable					(371,900	)		(500,485	)
Long-term convertible notes payable, net of discount				$	425,195		$	418,521
Current portion of convertible notes payable					1,093,257			937,716
Less: discount on current portion of convertible notes payable					(350,560	)		(422,298	)
Current portion of convertible notes payable, net of discount				$	742,697		$	515,418
Short-term convertible notes					118,704			46,000
Less: discount on short-term convertible notes					(39,165	)		(7,333	)
Short-term convertible notes, net of discount				$	79,539		$	38,667

All of the notes above are unsecured. The note dated February 28, 2011 is currently is in default and bears default interest at 18% per annum.

Convertible notes issued

Issued	Maturity	Interest Rate	Conversion Rate per Share		Amount of Note		Original Issue Discount		Beneficial Conversion Feature
March 22, 2016	March 22, 2017	5%		49% discount (1)	$	40,000	$	6,500	$	—
May 31, 2016	May 31, 2019	10%		60% discount (2)		35,100		—		35,100
July 18, 2016	July 18, 2017	8%		49% discount (1)		9,000		2,000		—
August 30, 2016	August 30, 2017	8%		50% discount (3)		25,000		—		—
Total					$	108,420	$	8,500	$	35,100

(1)	This note is convertible at 49% discount to the lowest trading price over the preceding 20 trading days. The note becomes convertible 180 days after issuance.
(2)	This note is convertible at a 60% discount to the volume weighted average closing price over the preceding five trading days, subject to the condition that the conversion price shall never be less than $0.01 per share.
(3)	This note is convertible at 50% discount to the lowest trading price over the preceding 20 trading days. As this note was a modification of an existing note that was convertible, it is immediately convertible.

Advances Refinanced into Convertible Notes

During the six months ended August 31, 2016, we refinanced $35,100 of non-interest bearing advances into a convertible note. All principal and accrued interest is payable on the maturity date.

The Company evaluated the terms of the notes in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. We determined that the conversion features did not meet the definition of a liability and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. We evaluated the conversion features for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the notes and was deemed to be less than the market value of underlying common stock at the inception of the note. Therefore, we recognized a discount for the beneficial conversion features of $67,100, in aggregate, on the date the notes were signed. We amortize the discounts for the notes dated May 31, 2016 at an effective interest rates of 317.38%. The beneficial conversion feature was recorded as an increase in additional paid-in capital and a discount to the convertible notes payable. The discount to the convertible notes payable will be amortized to interest expense over the life of the notes. During the six months ended August 31, 2016 and 2015, we amortized discount on convertible notes payable of $239,575 and $252,246, respectively, to interest expense.

Convertible Notes Issued for Cash

On March 22, 2016, we issued a convertible promissory note for $40,000. The note has an original issue discount of $6,500. The note matures on March 22, 2017, and bears interest at 5% per annum. The terms on the note allow the noteholder to convert principal and accrued interest into shares of our common stock beginning 180 days after issuance. The variable conversion rate is a 49% discount to the lowest trading price over the preceding 20 trading days.

On August 30, 2016, we issued a convertible promissory note with a face value of $31,320. The note has an original issue discount of $6,320. The note matures on August 30, 2017, and bears interest at 8% per annum. The terms of the note allow the noteholder to convert principal and accrued interest into shares of common stock beginning 180 days after issuance. The variable conversion rate is a 50% discount to the lowest trading price over the preceding 20 trading days. As of August 31, 2016, we had not received the cash proceeds from this note, so these funds appear on the balance sheet as “Note proceeds receivable.” The funds were received subsequent to the end of the quarter, and is considered a subsequent event.

We evaluated the terms of the notes in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. The conversion met the definition of a liability and therefore we bifurcated the conversion feature and account for it as a separate derivative liability. We recognized derivative liability of $48,833. $25,000 of this was recorded as a discount to the convertible note, and the remaining $23,833 was immediately expensed to loss on derivative instruments.

Convertible Notes Issued for payment of Accounts Payable

On July 18, 2016, we issued a convertible promissory note for $9,000, with an original issue discount of $2,000. The note matures on July 18, 2017, and bears interest at 8% per annum. The noteholder paid the proceeds from this note directly to one of our vendors to reduce our outstanding account payable. The variable conversion rate is a 49% discount to the lowest trading price over the preceding 20 trading days. The terms of the note allow the noteholder to convert principal and accrued interest into shares of common stock immediately upon issuance.

We evaluated the terms of the notes in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. The conversion features met the definition of a liability and therefore we bifurcated the conversion feature and account for it as a separate derivative liability. We recognized a $19,894 derivative liability related to the note using Black-Scholes model, $7,000 of which was recorded as a discount, and $12,894 as a loss on derivative instruments. Due to the embedded derivative, we had to evaluate our existing convertible notes for derivative liabilities. See Note 8.

The terms of the convertible note required us to issue 900,000 warrants with a strike price of $0.01 per share, with a maturity date of July 18, 2021. We recognized $117,058 derivative liability, which was immediately recognized as a loss on derivative instruments.

Violation of Debt Covenants

We violated the terms of our agreements for the convertible notes dated February 3, 2016 and March 22, 2016 on July 20, 2016 and July 25, 2016, respectively. The agreement had required us to file all quarterly and annual reports with the SEC on time. We filed our quarterly report on form 10-Q for the period May 31, 2016 after the deadline. As a result, the annual interest rate on each note increased from 5% per year to 18% per year. Additionally, the agreement called for us to increase the principal balance of the notes by 50% of their original face value. We recognized a loss on debt covenant violations of $23,000 and $20,000 on the notes dates February 3, 2016 and March 22, 2016, respectively. $25,000 of one of the note was re-assigned to another note holder and convertible immediately. The conversion feature was determined to be derivative liabilities, see Note 8.

Conversions to common stock

During six months ended August 31, 2016, the holders of the Convertible Note Payable dated January 31, 2013 elected to convert principal and accrued interest in the amounts show below into shares of common stock at a rate of $0.01 per share. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion.

Date	Amount Converted		Number of Shares Issued
March 1, 2016	$	1,900	190,000
August 8, 2016		9,871	175,000
August 26, 2016		9,425	264,000
Total	$	21,196	629,000

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Derivative Liabilities

6 Months Ended

Aug. 31, 2016

Derivative Liability [Abstract]

Derivative Liabilities

Note 8. Derivative Liabilities

On July 18, 2016, we issued a convertible promissory note with embedded variable price conversion options that is determined to be derivative instrument (see Note 7). We recognized a derivative liability of $19,894, which was recorded as a $7,000 discount to the note and a loss on derivative instruments of $12,894.

The same note required us to issue 900,000 warrants, which are also valued as a derivative instrument. Therefore, we recognized a derivative liability $117,058. This was recorded as a $117,058 loss on derivative instruments.

The embedded derivative in the July 18, 2016 convertible note tainted our outstanding convertible notes issues prior to that period. We calculated a $47,960,399 derivative liability related to those notes, which we reclassified from additional paid-in capital.

On August 30, 2016, we issued a modified convertible promissory note for $25,000, which had an embedded derivative liability of $48,833. We recognized this as a $25,000 discount against the note and a $23,833 loss on derivative instruments.

On August 31, 2016, we revalued the fair value all of our derivative instruments and determined that we had total derivative liabilities of $36,671,152. We recognized a gain on derivative instruments of $11,475,032. During the six months ended August 31, 2016, we recognized gain on derivative of $11,321,247.

We used Black-Scholes model to determine the fair value of the conversion option and warrants.

As of August 31, 2016, the aggregate fair value of the outstanding derivative liabilities was $36,371,152.

The Company estimated the fair value of the derivative liabilities using the Black-Scholes option pricing model using the following key assumptions during the six months ended August 31, 2016

Expected dividends	—	%
Expected term (years)	0.25 – 5.00
Volatility	121% – 295	%
Risk-free rate	1.57% – 1.59	%

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Debt Payment Obligations

6 Months Ended

Aug. 31, 2016

Debt Disclosure [Abstract]

Debt Payment Obligations

Note 9. Debt Payment Obligations

	Twelve months ended August 31,
		2017		2018		2019		2020		2021		Total
Convertible notes	$	1,211,961	$	396,958	$	400,137	$	—	$	—	$	2,009,056
Capital lease		3,861		4,038		1,387		—		—		9,286
Total	$	1,215822	$	400,996	$	401,524	$	—	$	—	$	2,018,342

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Earnings per Share

6 Months Ended

Aug. 31, 2016

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -

Earnings per Share

Note 10. Earnings per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS is similarly calculated except that the common shares outstanding for the period is increased to reflect the potential dilution that could occur if outstanding convertible notes payable were converted and warrants were exercised. Anti-dilutive shares represent potentially dilutive securities that which are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive.

The following is a calculation of basic and diluted weighted-average shares outstanding:

	Six months ended August 31,				Three months ended August 31,
	2016		2015		2016		2015
Weighted-average shares – basic		5,126,832		1,551,656		5,156,914		2,311,368
Dilution effect of warrants		850,793		—		827,942		—
Dilution effect of convertible notes payable		377,782,274		—		377,782,274		—
Weighted-average shares - diluted		383,759,899		1,551,656		383,767,130		2,311,368

The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect:

	Six months ended August 31,				Three months ended August 31,
	2016		2015		2016		2015
Weighted-average common stock issuable under convertible notes payable excluded from diluted EPS due to the anti-dilutive effect due to net loss		—		1,692		—		1,393

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Subsequent Events

6 Months Ended

Aug. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

Note 10. Subsequent Events

On September 4, 2016, we issued into a convertible promissory note for $31,320, for $25,000 in cash proceeds.

On September 8, 2016, the holder of our modified convertible promissory note dated August 30, 2016, converted $6,002 of principal and accrued interest into 193,633 shares of our common stock.

On September 9, 2016, the holder of our convertible promissory note dated February 3, 2016, converted $7,268 of principal into 285,000 shares of our common stock.

On September 22, 2016, the holder of our convertible promissory note dated February 3, 2016, converted $3,065 of principal into 299,000 shares of our common stock.

On September 29, 2016, the holder of our modified convertible promissory note dated August 30, 2016, converted $1,558 of principal and accrued interest into 259,635 shares of our common stock.

On September 29, 2016, the holder of our convertible promissory note dated February 3, 2016, converted $1,928 of principal into 315,000 share of our common stock.

On October 10, 2016, the holder of our modified convertible promissory note dated August 30, 2016, converted $1,713 of principal and accrued interest into 339,142 shares of our common stock.

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Significant Accounting Policies (Policies)

6 Months Ended

Aug. 31, 2016

Accounting Policies [Abstract]

Interim Financial Statements

Interim Financial Statements

These unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements for the fiscal year ended February 29, 2016 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the “SEC”).

The results of operations for the six month period ended August 31, 2016 are not necessarily indicative of the results to be expected for the full fiscal year ending February 28, 2017.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries, On the Move Experience, LLC and OMV Transports, LLC. Intercompany transactions have been eliminated in consolidation. The fiscal year-end for the Company and its subsidiaries is February 28.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

ASC 820 Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services.

Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort.

As of August 31, 2016 the significant inputs to the Company’s derivative liability calculation were Level 3 inputs.

The following schedule summarizes the valuation of financial instruments at fair value in the balance sheets as of August 31, 2016:

	Fair Value Measurements as of August 31, 2016
	Level 1		Level 2		Level 3
Assets
None	$		$		$
Total assets		—		—		—
Liabilities
Warrant derivative liability		—		—		89,521
Conversion option derivative liability		—		—		36,582,396
Total liabilities		—		—		36,671,152

The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy:

	Significant Unobservable Inputs (Level 3) Three Months Ended August 31,					Significant Unobservable Inputs (Level 3) Six Months Ended August 31,
	2016			2015		2016			2015
Beginning balance	$	—		$	—	$	—		$	—
Change in fair value		11,321,247			—		11,321,247			—
Additions reclassified from equity		(47,960,399	)		—		(47,960,399	)		—
Other		(32,000	)		—		(32,000	)		—
Ending balance	$	36,671,152		$	—	$	36,671,152		$	—

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Aug. 31, 2016

Accounting Policies [Abstract]

Schedule of financial instruments at fair value

The following schedule summarizes the valuation of financial instruments at fair value in the balance sheets as of August 31, 2016:

	Fair Value Measurements as of August 31, 2016
	Level 1		Level 2		Level 3
Assets
None	$		$		$
Total assets		—		—		—
Liabilities
Warrant derivative liability		—		—		89,521
Conversion option derivative liability		—		—		36,582,396
Total liabilities		—		—		36,671,152

Schedule of reconciliation of fair value of financial assets and liabilities classified as Level 3

The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy:

	Significant Unobservable Inputs (Level 3) Three Months Ended August 31,					Significant Unobservable Inputs (Level 3) Six Months Ended August 31,
	2016			2015		2016			2015
Beginning balance	$	—		$	—	$	—		$	—
Change in fair value		11,321,247			—		11,321,247			—
Additions reclassified from equity		(47,960,399	)		—		(47,960,399	)		—
Other		(32,000	)		—		(32,000	)		—
Ending balance	$	36,671,152		$	—	$	36,671,152		$	—

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Convertible Notes Payable (Tables)

6 Months Ended

Aug. 31, 2016

Debt Disclosure [Abstract]

Schedule of convertible notes payable

Convertible notes payable consist of the following as of August 31, 2016 and February 29, 2016:

Issued	Maturity	Interest Rate	Conversion Rate per Share	Balance August 31, 2016			Balance February 29, 2016
February 28, 2011	February 27, 2013	7%	$0.015	$	32,600		$	32,600
January 31, 2013	February 28, 2017	10%	$0.01		119,091			120,562
May 31, 2013	November 30, 2016	10%	$0.01		261,595			261,595
November 30, 2013	November 30, 2017	10%	$0.01		396,958			396,958
August 31, 2014	August 31, 2016	10%	$0.002		355,652			355,652
November 30, 2014	November 30, 2016	10%	$0.002		103,950			103,950
February 28, 2015	February 28, 2017	10%	$0.001		63,357			63,357
May 31, 2015	May 31, 2017	10%	$1.00		65,383			65,383
August 31, 2015	August 31, 2017	10%	$0.30		91,629			91,629
November 30, 2015	November 30, 2018	10%	$0.30		269,791			269,791
February 3, 2016	February 3, 2017	5%	49% discount		24,705			46,000
February 29, 2016	February 28, 2019	10%	60% discount		95,245			95,245
March 22, 2016	March 22, 2017	5%	49% discount		60,000			—
May 31, 2016	May 31, 2019	10%	60% discount		35,100			—
July 18, 2016	July 18, 2017	8%	49% discount		9,000			—
August 30, 2016	August 30, 2017	8%	50% discount		25,000			—
Total convertible notes payable				$	2,009,056		$	1,902,722
Less: short-term convertible notes payable					(118,704	)		(46,000	)
Less: current portion of convertible notes payable					(1,093,257	)		(937,716	)
Less: discount on noncurrent convertible notes payable					(371,900	)		(500,485	)
Long-term convertible notes payable, net of discount				$	425,195		$	418,521
Current portion of convertible notes payable					1,093,257			937,716
Less: discount on current portion of convertible notes payable					(350,560	)		(422,298	)
Current portion of convertible notes payable, net of discount				$	742,697		$	515,418
Short-term convertible notes					118,704			46,000
Less: discount on short-term convertible notes					(39,165	)		(7,333	)
Short-term convertible notes, net of discount				$	79,539		$	38,667

Schedule of convertible notes issued

Convertible notes issued

Issued	Maturity	Interest Rate	Conversion Rate per Share		Amount of Note		Original Issue Discount		Beneficial Conversion Feature
March 22, 2016	March 22, 2017	5%		49% discount (1)	$	40,000	$	6,500	$	—
May 31, 2016	May 31, 2019	10%		60% discount (2)		35,100		—		35,100
July 18, 2016	July 18, 2017	8%		49% discount (1)		9,000		2,000		—
August 30, 2016	August 30, 2017	8%		50% discount (3)		25,000		—		—
Total					$	108,420	$	8,500	$	35,100

(1) This note is convertible at 49% discount to the lowest trading price over the preceding 20 trading days. The note becomes convertible 180 days after issuance.

(2) This note is convertible at a 60% discount to the volume weighted average closing price over the preceding five trading days, subject to the condition that the conversion price shall never be less than $0.01 per share.

(3) This note is convertible at 50% discount to the lowest trading price over the preceding 20 trading days. As this note was a modification of an existing note that was convertible, it is immediately convertible.

Schedule of conversion of convertible notes payable

Date	Amount Converted		Number of Shares Issued
March 1, 2016	$	1,900	190,000
August 8, 2016		9,871	175,000
August 26, 2016		9,425	264,000
Total	$	21,196	629,000

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Derivative Liabilities (Tables)

6 Months Ended

Aug. 31, 2016

Derivative Liability [Abstract]

Schedule of fair value derivative liabilities

The Company estimated the fair value of the derivative liabilities using the Black-Scholes option pricing model using the following key assumptions during the six months ended August 31, 2016

Expected dividends	—	%
Expected term (years)	0.25 – 5.00
Volatility	121% – 295	%
Risk-free rate	1.57% – 1.59	%

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Debt Payment Obligations (Tables)

6 Months Ended

Aug. 31, 2016

Debt Disclosure [Abstract]

Schedule of debt payment obligations

	Twelve months ended August 31,
		2017		2018		2019		2020		2021		Total
Convertible notes	$	1,211,961	$	396,958	$	400,137	$	—	$	—	$	2,009,056
Capital lease		3,861		4,038		1,387		—		—		9,286
Total	$	1,215822	$	400,996	$	401,524	$	—	$	—	$	2,018,342

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Earnings per Share (Tables)

6 Months Ended

Aug. 31, 2016

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -

Schedule of basic and diluted weighted-average shares outstanding

The following is a calculation of basic and diluted weighted-average shares outstanding:

	Six months ended August 31,				Three months ended August 31,
	2016		2015		2016		2015
Weighted-average shares – basic		5,126,832		1,551,656		5,156,914		2,311,368
Dilution effect of warrants		850,793		—		827,942		—
Dilution effect of convertible notes payable		377,782,274		—		377,782,274		—
Weighted-average shares - diluted		383,759,899		1,551,656		383,767,130		2,311,368

Schedule of anti-dilutive securities

The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect:

	Six months ended August 31,				Three months ended August 31,
	2016		2015		2016		2015
Weighted-average common stock issuable under convertible notes payable excluded from diluted EPS due to the anti-dilutive effect due to net loss		—		1,692		—		1,393

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Going Concern (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Accounting Policies [Abstract]
Cash flow from operating activities	$ (68,121)	$ (150,786)
Working capital deficit	$ (1,439,476)

XML

Summary of Significant Accounting Policies (Details)	Aug. 31, 2016 USD ($)
Liabilities
Total liabilities	$ 36,371,152
Fair Value, Level 1 [Member]
Assets
Total assets
Liabilities
Warrant derivative liability
Conversion option derivative liability
Total liabilities
Fair Value, Level 2 [Member]
Assets
Total assets
Liabilities
Warrant derivative liability
Conversion option derivative liability
Total liabilities
Fair Value, Level 3 [Member]
Assets
Total assets
Liabilities
Warrant derivative liability	89,521
Conversion option derivative liability	36,582,396
Total liabilities	$ 36,671,152

XML

Summary of Significant Accounting Policies (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance
Change in fair value	11,321,247		11,321,247
Additions reclassified from equity	(47,960,399)		(47,960,399)
Other	(32,000)		(32,000)
Ending balance	$ 36,671,152		$ 36,671,152

XML

Advances (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Feb. 29, 2016
Convertible notes payable	$ 2,009,056		$ 1,902,722
Advances payable	1,594		1,594
Proceeds from convertible promissory note	33,500
10% Convertible Note Due May 31, 2019 [Member]
Convertible notes payable	95,245		95,245
Vista View Ventures, Inc. (Non-Interest Bearing Advances) [Member]
Proceeds from convertible promissory note	35,100
Vista View Ventures, Inc. (Non-Interest Bearing Advances) [Member] | 10% Convertible Note Due May 31, 2019 [Member]
Convertible notes payable	35,100
Third Party [Member]
Advances payable	$ 1,594		$ 1,594

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Related Party Transactions (Details Narrative) - KM Delaney & Associates [Member] - USD ($)	6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Feb. 29, 2016
Advances from lender	$ 35,100	$ 95,254
Due to related parties	$ 183,568		$ 198,568

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Gain on Accounts Payable Forgiveness (Details Narrative)	6 Months Ended
	Aug. 31, 2016 USD ($) Truck	Aug. 31, 2015 USD ($)
Gain On Accounts Payable Forgiveness
Accounts payble under agreement	$ 60,000
Gain on accounts payable forgiveness	$ 30,000
Number of trucks | Truck	10
Payments of accounts payable	$ 30,000

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Debt Payment Obligations (Details)	Aug. 31, 2016 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2017	$ 1,215,822
2018	400,996
2019	401,524
2020
2021
Total	2,018,342
Convertible Notes [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
2017	1,211,961
2018	396,958
2019	400,137
2020
2021
Total	2,009,056
Capital Lease Obligations [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
2017	3,861
2018	4,038
2019	1,387
2020
2021
Total	$ 9,286

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Convertible Notes Payable (Details)					6 Months Ended		12 Months Ended
		Aug. 30, 2016	Jul. 18, 2016	Mar. 22, 2016	Aug. 31, 2016 USD ($) $ / shares		Feb. 29, 2016 USD ($) $ / shares
Total convertible notes payable					$ 2,009,056		$ 1,902,722
Less: short-term convertible notes payable					(118,704)		(46,000)
Less: current portion of convertible notes payable					(1,093,257)		(937,716)
Less: discount on noncurrent convertible notes payable					(371,900)		(500,485)
Long-term convertible notes payable, net of discount					425,194		418,521
Current portion of convertible notes payable					1,093,257		937,716
Less: discount on current portion of convertible notes payable					(350,560)		(422,298)
Current portion of convertible notes payable, net of discount					742,697		515,418
Short-term convertible notes					118,704		46,000
Less: discount on short-term convertible notes					(39,165)		(7,333)
Short-term convertible notes, net of discount					$ 79,539		$ 38,667
7% Convertible Note Due February 27, 2013 [Member]
Issuance date					Feb. 28, 2011		Feb. 28, 2011
Conversion rate per share | $ / shares					$ 0.015		$ 0.015
Total convertible notes payable					$ 32,600		$ 32,600
10% Convertible Note Due February 28, 2017 [Member]
Issuance date					Jan. 31, 2013		Jan. 31, 2013
Conversion rate per share | $ / shares					$ 0.01		$ 0.01
Total convertible notes payable					$ 119,091		$ 120,562
10% Convertible Note Due November 30,2016 [Member]
Issuance date					May 31, 2013		May 31, 2013
Conversion rate per share | $ / shares					$ 0.01		$ 0.01
Total convertible notes payable					$ 261,595		$ 261,595
10% Convertible Note Due November 30, 2017 [Member]
Issuance date					Nov. 30, 2013		Nov. 30, 2013
Conversion rate per share | $ / shares					$ 0.01		$ 0.01
Total convertible notes payable					$ 396,958		$ 396,958
10% Convertible Note Due August 31, 2016 [Member]
Issuance date					Aug. 31, 2014		Aug. 31, 2014
Conversion rate per share | $ / shares					$ 0.002		$ 0.002
Total convertible notes payable					$ 355,652		$ 355,652
10% Convertible Note Due November 30, 2016 [Member]
Issuance date					Nov. 30, 2014		Nov. 30, 2014
Conversion rate per share | $ / shares					$ 0.002		$ 0.002
Total convertible notes payable					$ 103,950		$ 103,950
10% Convertible Note Due February 28, 2017 [Member]
Issuance date					Feb. 28, 2015		Feb. 28, 2015
Conversion rate per share | $ / shares					$ 0.001		$ 0.001
Total convertible notes payable					$ 63,357		$ 63,357
10% Convertible Note Due May 31, 2017 [Member]
Issuance date					May 31, 2015		May 31, 2015
Conversion rate per share | $ / shares					$ 1.00		$ 1.00
Total convertible notes payable					$ 65,383		$ 65,383
10% Convertible Note Due August 31, 2017 [Member]
Issuance date					Aug. 31, 2015		Aug. 31, 2015
Conversion rate per share | $ / shares					$ 0.30		$ 0.30
Total convertible notes payable					$ 91,629		$ 91,629
10% Convertible Note Due November 30, 2018 [Member]
Issuance date					Nov. 30, 2015		Nov. 30, 2015
Conversion rate per share | $ / shares					$ 0.30		$ 0.30
Total convertible notes payable					$ 269,791		$ 269,791
5% Convertible Note Due February 3, 2017 [Member]
Issuance date					Feb. 03, 2016		Feb. 03, 2016
Percentage of conversion rate discount					0.49		0.49
Total convertible notes payable					$ 24,705		$ 46,000
10% Convertible Note Due February 28, 2019 [Member]
Issuance date					Feb. 29, 2016		Feb. 29, 2016
Percentage of conversion rate discount					0.60		0.60
Total convertible notes payable					$ 95,245		$ 95,245
5% Convertible Note Due March 22, 2017 [Member]
Issuance date					Mar. 22, 2016
Percentage of conversion rate discount				0.49	0.49	[1]
Total convertible notes payable					$ 60,000
10% Convertible Note Due May 31, 2019 [Member]
Issuance date					May 31, 2016
Percentage of conversion rate discount	[2]				0.60
Total convertible notes payable					$ 35,100
8% Convertible Note Due July 18, 2017 [Member]
Issuance date	[1]				Jul. 18, 2016
Percentage of conversion rate discount			0.49		0.49	[1]
Total convertible notes payable					$ 9,000
8% Convertible Note Due August 30, 2017 [Member]
Issuance date					Aug. 30, 2016
Percentage of conversion rate discount		0.50			0.50	[3]
Total convertible notes payable					$ 25,000

[1] This note is convertible at 49% discount to the lowest trading price over the preceding 20 trading days. The note becomes convertible 180 days after issuance.

[2] This note is convertible at a 60% discount to the volume weighted average closing price over the preceding five trading days, subject to the condition that the conversion price shall never be less than $0.01 per share.

[3] This note is convertible at 50% discount to the lowest trading price over the preceding 20 trading days. As this note was a modification of an existing note that was convertible, it is immediately convertible.

XML

Convertible Notes Payable (Details 1)					6 Months Ended
		Aug. 30, 2016 USD ($)	Jul. 18, 2016 USD ($)	Mar. 22, 2016 USD ($)	Aug. 31, 2016 USD ($)
Beneficial Conversion Feature					$ 67,100
5% Convertible Note Due March 22, 2017 [Member]
Issuance Date					Mar. 22, 2016
Percentage of conversion rate discount				0.49	0.49	[1]
Amount of Note				$ 40,000	$ 40,000
Original Issue Discount				$ 6,500	$ 6,500
10% Convertible Note Due May 31, 2019 [Member]
Issuance Date					May 31, 2016
Percentage of conversion rate discount	[2]				0.60
Amount of Note					$ 35,100
Beneficial Conversion Feature					$ 35,100
8% Convertible Note Due July 18, 2017 [Member]
Issuance Date	[1]				Jul. 18, 2016
Percentage of conversion rate discount			0.49		0.49	[1]
Amount of Note			$ 9,000		$ 9,000
Original Issue Discount			$ 2,000		$ 2,000
8% Convertible Note Due August 30, 2017 [Member]
Issuance Date					Aug. 30, 2016
Percentage of conversion rate discount		0.50			0.50	[3]
Amount of Note		$ 31,320			$ 25,000
Original Issue Discount		$ 6,320
Convertible Notes [Member]
Amount of Note					108,420
Original Issue Discount					8,500
Beneficial Conversion Feature					$ 35,100

[1] This note is convertible at 49% discount to the lowest trading price over the preceding 20 trading days. The note becomes convertible 180 days after issuance.

[2] This note is convertible at a 60% discount to the volume weighted average closing price over the preceding five trading days, subject to the condition that the conversion price shall never be less than $0.01 per share.

[3] This note is convertible at 50% discount to the lowest trading price over the preceding 20 trading days. As this note was a modification of an existing note that was convertible, it is immediately convertible.

XML

Convertible Notes Payable (Details 2) - 10% Convertible Note Due February 28, 2017 [Member]	6 Months Ended
	Aug. 31, 2016 USD ($) shares
Amount converted | $	$ 21,196
Number of shares issued | shares	629,000
March 1, 2016 [Member]
Amount converted | $	$ 1,900
Number of shares issued | shares	190,000
August 8, 2016 [Member]
Amount converted | $	$ 9,871
Number of shares issued | shares	175,000
August 26, 2016 [Member]
Amount converted | $	$ 9,425
Number of shares issued | shares	264,000

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Convertible Notes Payable (Details Narrative)

3 Months Ended

6 Months Ended

12 Months Ended

Aug. 30, 2016

USD ($)

Jul. 18, 2016

USD ($)

$ / shares

shares

Mar. 22, 2016

USD ($)

Aug. 31, 2016

USD ($)

$ / shares

Aug. 31, 2015

USD ($)

Aug. 31, 2016

USD ($)

$ / shares

Aug. 31, 2015

USD ($)

Feb. 29, 2016

USD ($)

Beneficial conversion discount on convertible note payable

$ 67,100

Amortization of discount on convertible note payable

244,091

$ 252,246

Derivative liabilities

$ 36,671,152

36,671,152

Gain (loss) on derivative instruments

$ 11,321,247

11,321,247

Loss on debt covenant violations

$ 43,000

Effective interest rate

317.38%

317.38%

10% Convertible Note Due May 31, 2019 [Member]

Beneficial conversion discount on convertible note payable

$ 35,100

Face amount

$ 35,100

$ 35,100

Percentage of conversion rate discount over the preceding 20 trading days

^[1]

0.60

10% Convertible Note Due May 31, 2019 [Member] | Minimum [Member]

Conversion rate per share (in dollars per share) | $ / shares

$ 0.01

$ 0.01

5% Convertible Note Due March 22, 2017 [Member]

Face amount

$ 40,000

$ 40,000

$ 40,000

Original issue discount

$ 6,500

$ 6,500

Percentage of conversion rate discount over the preceding 20 trading days

0.49

0.49

^[2]

Description of debt covenants

Agreement had required us to file all quarterly and annual reports with the SEC on time. We filed our quarterly report on form 10-Q for the period May 31, 2016 after the deadline. As a result, the annual interest rate on each note increased from 5% per year to 18% per year. Additionally, the agreement called for us to increase the principal balance of the notes by 50% of their original face value. $25,000 of one of the note was re-assigned to another note holder and convertible immediately. The conversion feature was determined to be derivative liabilities.

Loss on debt covenant violations

$ 20,000

8% Convertible Note Due August 30, 2017 [Member]

Face amount

$ 31,320

25,000

$ 25,000

Original issue discount

$ 6,320

Percentage of conversion rate discount over the preceding 20 trading days

0.50

0.50

^[3]

Derivative liabilities

$ 48,833

Derivative liabilities recorded as discount on debt instrument

25,000

Gain (loss) on derivative instruments

$ 23,833

8% Convertible Note Due July 18, 2017 [Member]

Face amount

$ 9,000

$ 9,000

$ 9,000

Original issue discount

$ 2,000

$ 2,000

Percentage of conversion rate discount over the preceding 20 trading days

0.49

0.49

^[2]

Derivative liabilities

$ 19,894

Derivative liabilities recorded as discount on debt instrument

7,000

Gain (loss) on derivative instruments

(12,894)

8% Convertible Note Due July 18, 2017 [Member] | Warrant [Member]

Derivative liabilities

117,058

Gain (loss) on derivative instruments

$ (117,058)

Number of warrants issued | shares

900,000

Strike price (in dollars per share) | $ / shares

$ 0.01

Maturity date

Jul. 18, 2021

5% Convertible Note Due February 3, 2017 [Member]

Percentage of conversion rate discount over the preceding 20 trading days

0.49

0.49

Description of debt covenants

Agreement had required us to file all quarterly and annual reports with the SEC on time. We filed our quarterly report on form 10-Q for the period May 31, 2016 after the deadline. As a result, the annual interest rate on each note increased from 5% per year to 18% per year. Additionally, the agreement called for us to increase the principal balance of the notes by 50% of their original face value. $25,000 of one of the note was re-assigned to another note holder and convertible immediately. The conversion feature was determined to be derivative liabilities.

Loss on debt covenant violations

$ 23,000

[1] This note is convertible at a 60% discount to the volume weighted average closing price over the preceding five trading days, subject to the condition that the conversion price shall never be less than $0.01 per share.

[2] This note is convertible at 49% discount to the lowest trading price over the preceding 20 trading days. The note becomes convertible 180 days after issuance.

[3] This note is convertible at 50% discount to the lowest trading price over the preceding 20 trading days. As this note was a modification of an existing note that was convertible, it is immediately convertible.

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Derivative Liabilities (Details)	6 Months Ended
	Aug. 31, 2016
Derivative Liabilities [Abstract]
Expected dividends
Minimum [Member]
Derivative Liabilities [Abstract]
Expected term (years)	3 months
Volatility	121.00%
Risk-free rate	1.57%
Maximum [Member]
Derivative Liabilities [Abstract]
Expected term (years)	5 years
Volatility	295.00%
Risk-free rate	1.59%

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Derivative Liabilities (Details Narrative) - USD ($)			3 Months Ended		6 Months Ended
	Aug. 30, 2016	Jul. 18, 2016	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015	Feb. 29, 2016
Derivative liabilities			$ 36,671,152		$ 36,671,152
Gain (loss) on derivative instruments			11,321,247		11,321,247
Derivative liabilities reclassified from additional paid-in capital					47,960,399
Fair value of derivative liabilities			36,371,152		36,371,152
8% Convertible Note Due July 18, 2017 [Member]
Derivative liabilities		$ 19,894
Derivative liabilities recorded as discount on debt instrument		7,000
Gain (loss) on derivative instruments		(12,894)
Derivative liabilities reclassified from additional paid-in capital		47,960,399
Face amount		9,000	$ 9,000		$ 9,000
8% Convertible Note Due July 18, 2017 [Member] | Warrant [Member]
Derivative liabilities		117,058
Gain (loss) on derivative instruments		$ (117,058)
Number of warrants issued		900,000
Modified Convertible Promissory Note [Member]
Derivative liabilities	$ 48,833
Derivative liabilities recorded as discount on debt instrument	25,000
Gain (loss) on derivative instruments	23,833
Face amount	$ 25,000

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Earnings per Share (Details) - shares	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -
Weighted-average shares - basic	5,156,914	2,311,368	5,126,832	1,551,656
Dilution effect of warrants	827,942		850,793
Dilution effect of convertible notes payable	377,782,274		377,782,274
Weighted-average shares - diluted	383,767,130	2,311,368	383,759,899	1,551,656

XML

Earnings per Share (Details 1) - shares	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -
Number of shares excluded from diluted EPS due to the anti-dilutive effect due to net loss		1,393		1,692

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Subsequent Events (Details Narrative) - USD ($)							6 Months Ended
	Oct. 10, 2016	Sep. 29, 2016	Sep. 22, 2016	Sep. 09, 2016	Sep. 08, 2016	Sep. 04, 2016	Aug. 31, 2016	Aug. 31, 2015	Feb. 29, 2016
Convertible notes payable							$ 2,009,056		$ 1,902,722
Proceeds from convertible promissory note							33,500
8% Convertible Note Due August 30, 2017 [Member]
Convertible notes payable							25,000
5% Convertible Note Due February 3, 2017 [Member]
Convertible notes payable							$ 24,705		$ 46,000
Subsequent Event [Member] | 8% Convertible Note Due August 30, 2017 [Member]
Convertible notes payable						$ 31,320
Principal and accrued interest	$ 1,713	$ 1,558			$ 6,002
Value of common shares issued upon conversion	339,142	259,635			193,633
Proceeds from convertible promissory note						$ 25,000
Subsequent Event [Member] | 5% Convertible Note Due February 3, 2017 [Member]
Convertible notes payable		$ 1,928	$ 3,065	$ 7,268
Value of common shares issued upon conversion		315,000	299,000	285,000