Leases

12 Months Ended

Feb. 28, 2023

Leases [Abstract]

LEASES

NOTE 11 – LEASES

During Fiscal 2021, our facilities consisted primarily of an approximate 20 square feet facility in Stanton, California and an additional storage facility in Santa Clarita, California. Effective February 28, 2021, the Company vacated these facilities and terminated the corresponding leases and consolidated our administrative and production operations, including warehousing, are housed within an approximately 18 square foot facility in Lake Forest, California. The Lake Forest facility lease is for 66-months effective February 2021 through August 31, 2026. The initial monthly base rental rate was approximately $22 per month and escalates 3% each year to approximately $26 per month in 2026. The lease liability was determined by discounting the future lease payments under the lease terms using a 10% per annum discount rate to arrive at the current lease liability.

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

The components of lease expense and supplemental cash flow information related to leases for the period are as follows:

	Year ended February 28, 2023			Year ended February 28, 2022
(amounts in thousands)
Lease Cost
Operating lease cost (included in general and administration in the Company’s statement of operations)	$	279		$	279
Other Information
Cash paid for amounts included in the measurement of lease liabilities for the years ended February 28, 2023 and 2022, respectively	$	274		$	222
Weighted average remaining lease term – operating leases (in years)		3.5			4.5
Average discount rate – operating leases		10.0	%		10.0	%

The supplemental balance sheet information related to leases for the period is as follows:

	At February 28, 2023
Operating leases
Long-term right-of-use assets	$	816
Short-term operating lease liabilities	$	207
Long-term operating lease liabilities		660
Total operating lease liabilities	$	867

Maturities of the Company’s lease liability is as follows:

Year Ending February 28:	Operating Lease
2024	$	282
2025		291
2026		300
2027		154
Total lease payments		1,027
Less: Imputed interest/present value discount		(160	)
Present value of lease liabilities	$	867