Leases

12 Months Ended

Feb. 29, 2024

Leases [Abstract]

LEASES

NOTE 11 – LEASES

In February 2021, the Company consolidated our administrative and production operations, including warehousing, 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 29, 2024			Year ended February 28, 2023
(amounts in thousands)
Lease Cost
Operating lease cost (included in general and administration in the Company’s statement of operations)	$	285		$	279
Other Information
Cash paid for amounts included in the measurement of lease liabilities for the years ended February 29, 2024, and 2023, respectively	$	285		$	274
Weighted average remaining lease term – operating leases (in years)		2.5			3.5
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 29, 2024
Operating leases
Long-term right-of-use assets	$	607
Short-term operating lease liabilities	$	238
Long-term operating lease liabilities		423
Total operating lease liabilities	$	661

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

Year Ending February 28:	Operating Lease
2025	$	291
2026		299
2027		155
Total lease payments		745
Less: Imputed interest/present value discount		(84	)
Present value of lease liabilities	$	661