NOTE 6 – CONVERTIBLE NOTES PAYABLE
Convertible notes payable
consisted of the following:
| | |
February 28, 2025 | | |
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 February 28, 2025 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 February 28, 2025 and February 29, 2024, the outstanding balance of the convertible notes payable amounted to $110 and $106, respectively, and are past due. |
At February 28, 2025, the total outstanding convertible
notes payable of $1,513 and accrued interest of $509 are convertible into 1,977,274 shares of common stock at conversion rates ranging
from $0.20 to $1.40 per share.
|