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Subsequent Events
3 Months Ended
May 31, 2022
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 16 – SUBSEQUENT EVENTS

 

In March 2022, the Company reached a settlement agreement with Kopple (see Note 9) to settle certain debt and accrued interest totaling $12,140,641 for $10,000,000, including $3,000,000 due on or before June 28, 2022, and the issuance of warrants exercisable into 3,331,664 shares of the Company’s common stock. In June 2022, the Company entered into an amendment to the settlement agreement with Kopple (the “Amendment”). Pursuant to the Amendment, the Company agreed to pay an extension fee and make a partial payment towards the $3,000,000 installment. For the additional consideration and the partial payment, Kopple agreed to extend the due date for the balance of the installment to July 2022. In June 2022, the Company made a partial payment of the first installment and as of the date of this report, has not yet paid the full balance of the $3,000,000 due to Kopple.

 

In July 2022, Melvin Gagerman, our former CEO and CFO, brought suit against the Company relating to a 2014 unsecured demand note in the original amount of $82,000. With interest, Gagerman claims to now be owed a total of approximately $150,000. The Company disputes that this note is presently enforceable against the Company and that the demanded amount is owed to Gagerman.

 

Subsequent to May 31, 2022, the Company issued 1,860,001 shares of common stock in exchange for cash proceeds of approximately $558,000.