NOTE 2 – CONVERTIBLE NOTES PAYABLE
| |
August 31 2024 | | |
February 29, 2024, | |
(amounts in thousands) | |
| | |
| |
(a) Convertible notes payable 1 – past due | |
$ | 1,403 | | |
$ | 1,403 | |
(b) Convertible notes payable 2 – past due | |
| 110 | | |
$ | 106 | |
Unamortized debt discount | |
| - | | |
| (1 | ) |
Net | |
$ | 1,513 | | |
$ | 1,508 | |
| (a) | 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 into 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
to change the maturity date to January 11, 2023. As of August 31, 2024 and February 29, 2024, the outstanding balance of the convertible
notes payable amounted to $1,403 and are past due. |
| (b) | In Fiscal 2024 the Company issued convertible notes payable
to unrelated individuals and entities totaling $110 in exchange for cash. The notes are unsecured, bear interest at rate of 10% per annum,
and matured in March 2024. The notes payable are convertible into shares of common stock at a conversion price of $0.20 per share. As
of August 31, 2024 and February 29, 2024, the outstanding balance of the convertible notes payable amounted to $110 and $106, respectively,
and are past due. |
|