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Other Current Assets and Investment in Joint Venture
12 Months Ended
Feb. 28, 2021
Disclosure Text Block Supplement [Abstract]  
OTHER CURRENT ASSETS AND INVESTMENT IN JOINT VENTURE

NOTE 4 – OTHER CURRENT ASSETS AND INVESTMENT IN JOINT VENTURE


Other current assets of approximately $115,000 on February 28, 2021 consist of vendor advances of $37,400, employee salary draws of $63,500 and prepaid expenses of $14,300. On February 29, 2020, other current assets consisted of unamortized prepaid expense of $1,487.


In March 2017, we entered into a joint venture agreement with a Chinese partner, Jiangsu Shengfeng Mobile Power Technology Co., Ltd. (“Jiangsu Shengfeng”), to address the Chinese market. Under the Jiangsu Shengfeng joint venture agreement, the Company owns 49% of the venture and our Chinese partner owns 51%. The Chinese partner agreed to contribute a total of approximately $9.25 million to the venture –– principally in the form of facilities and equipment as wells as approximately $500,000 in cash. The Company contributed $250,000 in cash as well as a limited license to the joint venture to manufacture, sell and service the AuraGen® products within China. The limited license sold to the Jiangsu Shengfeng joint venture, however, does not permit Jiangsu Shengfeng to manufacture the AuraGen® rotor; rather, the joint venture is required to purchase all rotor subassemblies as well as certain software elements directly from the Company. During Fiscal 2020, the Company recorded an impairment expense of $250,000 to write-off the joint venture investment due to operational and future cash-flow uncertainties associated with AuraGen®/VIPER market development prospects in China.