Notes Payable

12 Months Ended

Feb. 28, 2023

Notes Payable [Abstract]

NOTES PAYABLE

NOTE 8 – NOTES PAYABLE

Notes payable consisted of the following:

	February 28, 2023		February 28, 2022
(amounts in thousands)
Secured notes payable
(a) Note payable-EID loan	$	150	$	150
(b) Notes payable-vehicles and equipment		188		266
Unsecured notes payable
(c) Note payable-other		10		10
Total	$	348	$	426
Non-current		256		328

(a) Economic Injury Disaster (EID) Loan

Entities negatively impacted by the COVID-19 pandemic were eligible to apply for loans sponsored by the United States Small Business Administration (“SBA”) Economic Injury Disaster Loan (“EID Loan”) program. On July 1, 2020, the Company received a $150 loan under this program. The proceeds can be used to fund payroll, healthcare benefits, rent and other qualifying expenses, and the loan is not subject to a loan forgiveness provision. The loan is due July 1, 2050, interest accrues at 3.75% per annum, and is secured by the assets of the Company.

(b) Notes payable-vehicle and equipment

During Fiscal 2022, the Company purchased two pieces of equipment and a vehicle for approximately $329 as a part of its efforts to expand its operations and research and development capacities. The Company made down payments aggregating to approximately $41 with the balance financed by two notes payable aggregating to approximately $288. The notes are secured by the equipment and vehicle purchased. One note is due in 36 equal monthly payments of approximately $6 each, including interest at 2.9% per annum. The second note is due in 72 equal monthly payments of approximately $1.5 each, including interest at 10.9% interest per annum. As of February 28, 2023, the balance of the notes was approximately $188.

(c) Other notes payable

Demand promissory notes as of February 28, 2023 and February 28, 2022 are for one individual issued in September 2015 that is payable on demand with an interest rate of 10% per annum.

At February 28, 2023 and 2022, accrued interest on notes payable totaled approximately $23 and $36, respectively, and is included in accrued expenses (See Note 10).