Notes Payable |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE | NOTE 4 – NOTES PAYABLE
Notes payable consisted of the following:
(a) Note payable-EID loan
During Fiscal 2021, the Company received a $150 loan under the United States Small Business Administration (“SBA”) Economic Injury Disaster Loan (“EID Loan”) program. 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 issued two notes payable to purchase equipment and a vehicle for $288. The notes are secured by the equipment and vehicle purchased. The first note for $210 was paid in full in October 2024. The second note for $78 is due January 20, 2027, and requires 72 equal monthly payments of approximately $1.5, including interest at 10.9% interest per annum.
(c) Note payable-software license
During Fiscal 2024, the Company obtained a loan of $150 from a financing institution to finance the use of a third-party software license by the Company. The note payable is secured by tangible and intangible assets of the Company, bears interest at an average rate of 8% per annum and will mature in September 2026.
During Fiscal 2025, the Company obtained a loan of $179 from a financing institution to finance the use of a third-party software license by the Company. The note payable is secured by tangible and intangible assets of the Company, bears interest at an average rate of 14.41% per annum and will mature in November 2025.
The aggregate total of the note payable-software licenses as of November 30, 2024, amounted to $232.
(d) Notes payable – machinery and other equipment
During Fiscal 2025, the Company obtained a loan of $274 from a financing institution to finance the purchase of a production machine by the Company. The note payable is secured by the production machine and will mature in April 2029.
In addition, the Company entered into a 60-month financing lease for a forklift with a cost of $47. The lease has an interest rate of 8%, including a bargain purchase option to acquire the forklift at the end of the lease term for a payment of one dollar.
The aggregate total of the note payable and financing lease obligation as of November 30, 2024, amounted to $289.
(e) Note payable-other
As of November 30, 2024, and February 29, 2024, the Company has one note payable due to an individual issued in September 2015 that is payable on demand with an interest rate of 10% per annum. |