NOTE 3 – INVENTORIES

Inventories, stated at the lower of cost (first in first out), or market consisted of the following:

	November 30, 2016			February 29, 2016

Raw materials	$	1,872,720		$	1,858,347
Finished goods		1,568,188			1,558,554
		3,440,908			3,416,901
Inventory reserve		(3,440,908	)		(3,416,901	)
Current portion	$	0		$	0

The Company has not operated, and therefore has not produced product since late 2015. As a result, while the Company believes that a significant portion of the inventory has value, we are unable to substantiate its demand and market value and as a result have elected to reserve it in its entirety as of November 30, 2016 and February 29, 2016.