5. Prepaid Expenses and Deposits

Prepaid expenses as at August 31, 2022 and February 28, 2022 were as follows:

As at August 31, 2022, the Company had $3,917,877 (February 28, 2022 – $2,801,680) of non-refundable cash deposits on machinery and equipment. $510,727 (February 28, 2022 – $672,713) of the prepayments are on machinery and equipment that will be used in connection with the research and development activities at the Terrebonne Facility and will be expensed, and classified as research and development expenses in the period the equipment is received. The remainder of the prepayments of $3,407,150 (February 28, 2022 – $2,128,967) are non-refundable cash deposits on long-lead machinery and equipment that will be used in the planned Infinite Loop^™ manufacturing facility in Bécancour, Québec.