Convertible Notes Payable

12 Months Ended

Feb. 29, 2024

Convertible Notes Payable [Abstract]

CONVERTIBLE NOTES PAYABLE

NOTE 6 – CONVERTIBLE NOTES PAYABLE

Convertible notes payable consisted of the following:  

	February 29, 2024			February 28, 2023
(amounts in thousands)
Convertible notes payable -past due	$	1,509		$	1,403
Unamortized debt discount		(1	)		-
Net		1,508			1,403
Non-current		-			-
Current	$	1,508		$	1,403

In Fiscal 2013 and 2014, the Company issued six convertible notes payable in the aggregate of $4,000. The notes are unsecured, bear interest at 5% per annum and are convertible to shares of common stock at a conversion price of $1.40 per share, as adjusted. The notes were originally due in 2014 to 2017 and were all amended in 2018 and the maturity date for all the notes was changed to January 11, 2023. As of February 28, 2023, outstanding balance of the convertible notes payable amounted to $1,403

During the year ended February 29, 2024, the Company issued convertible notes payable in the aggregate of $106 in exchange for cash. The notes are unsecured, bear interest at 10% per annum and are convertible to shares of common stock at a conversion price of $0.20 per share and matured in March 2024. As part of the offering, the Company also granted the note holders warrants to purchase 50,000 shares of common stock. The warrants are exercisable at $0.50 per share, will expire in 1.5 years from grant date and with an estimated fair value of $5 using the BlackScholes Option Pricing Model. The Company accounted the fair value of the warrants as a debt discount and is being amortized to interest expense over the term of the convertible notes payable.

As of February 29, 2024, the outstanding balance of the convertible notes payable amounted to $1,509 and unamortized debt discount of $1, for a net balance of $1,508. As of February 29, 2024, the convertible notes of $1,403 have reached maturity and are past due. As of the date of this report, the entire convertible notes payable of $1,509 are past due and the Company is in negotiations with the noteholders to convert or settle these convertible notes payable.