Inventories

12 Months Ended

Feb. 28, 2019

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 3 – INVENTORIES

Inventories at February 28, 2019 and February 28, 2018 consisted of the following:

	2019			2018
Raw materials	$	1,932,050		$	1,884,456
Finished goods		1,651,283			1,572,555
		3,583,333			3,457,011
Inventory reserve		(3,583,333	)		(3,457,011	)
Current portion	$	-		$	-

Inventories consist primarily of components and completed units for the Company's AuraGen^® product.

Early in our AuraGen^® program, we determined it was most cost-effective to outsource production of components and subassemblies to volume-oriented manufacturers, rather than produce these parts in-house. As a result of this decision, and based on then anticipated sales, we purchased, prior to fiscal 2001, a substantial inventory of components at volume prices, a portion of which was then assembled into finished AuraGen^® units. Since sales did not meet expectations, we have been selling product from this inventory for several years. Management has analyzed its inventories based on its current business plan, current potential orders for future delivery, potential obsolescence and pending proposals with prospective customers and has determined we do not expect to realize all of its inventories within the next year. As described in Note 2 above, while the Company believes the inventory has some value, it has elected to fully reserve the inventory due to the inability of determining the demand and, therefore, fair market value at February 28, 2019 and February 28, 2018 is zero.