v3.26.1
Notes Payable
 12 Months Ended
Feb. 28, 2026
Notes Payable [Abstract]  
NOTES PAYABLE

NOTE 8 – NOTES PAYABLE

 

Notes payable consisted of the following:

 

(amounts in thousands)   February 28,
2026		     February 28,
2025		  
Secured notes payable            
(a) Note payable-EID loan   $          150     $          150  
(b) Notes payable-vehicle     32       46  
(c) Note payable - software license     344       208  
(d) Notes payable – machinery and other equipment     563       238  
                 
Unsecured notes payable                
(e) Note payable-other     10       10  
Total   $ 1,099     $ 652  
Current     (365 )     (212 )
Non-current   $ 734     $ 440  

 

(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 a note payable to purchase a vehicle for $78. The note is secured by the vehicle purchased. The note with original principal of $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 $155 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. As of February 28, 2026, the outstanding balance of the note payable amounted to $64.

 

During Fiscal 2025, the Company obtained a loan of $168 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 matured and was paid in full in November 2025.

 

During Fiscal 2026, the Company obtained a loan of $280 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 13.70% per annum and will mature in October 2026. As of February 28, 2026, the outstanding balance of the note payable amounted to $280, of which, $233 is past due. The Company is currently in discussion with the note holder to resolve this matter.

 

The aggregate total of the note payable-software licenses as of February 28, 2026, amounted to $344.

 

(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. The note payable is secured by the production machine and will mature in April 2029. As of February 28, 2026, the outstanding balance of the note payable amounted to $189.

 

During Fiscal 2026, the Company obtained a loan of $390 from a financing institution to finance the purchase of a production machine. The note payable is secured by the production machine and will mature in August 2032. As of February 28, 2026, the outstanding balance of the note payable amounted to $374.

 

The aggregate total of the note payable-machinery and other equipment as of February 28, 2026, amounted to $563.

 

(e) Note payable-other

 

As of February 28, 2026 and 2025, 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.