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Gain on Extinguishment of Debt
12 Months Ended
Feb. 28, 2022
Gain On Extinguishment Of Debt [Abstract]  
GAIN ON EXTINGUISHMENT OF DEBT

NOTE 12 – GAIN ON EXTINGUISHMENT OF DEBT

 

During fiscal 2021, the Company recorded a gain on extinguishment of debt primarily related to the cancellation of liabilities following the expiration of the statute of limitations on such debt. The Company obtained a legal opinion with conclusions that support the Company’s position that the statute of limitations for all potential claims owed by the Company on approximately $2,704,000 of accrued wages and vendor payables, and notes payable and accrued interest of approximately $743,000, had expired pursuant to various precedents. Accordingly, the Company recorded a gain on extinguishment of debt of $3,447,039 in the accompanying statement of operations for the year ended February 28, 2021.