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Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Feb. 28, 2026
Summary of Significant Accounting Policies [Abstract]  
Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reported periods. Significant estimates include assumptions made for the valuation of inventory, impairment testing of long-lived assets, the realizability of deferred tax assets and the related valuation allowance, assumptions used in valuing derivative liabilities, assumptions used in valuing share-based compensation, and accruals for potential liabilities. Amounts could materially change in the future.
Revenue Recognition

Revenue Recognition

 

The Company recognizes revenue in accordance with Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers.

 

Our primary source of revenue is the manufacture and delivery of axial flux induction motors and generator sets used primarily in mobile power applications. Our principal sales channel is sales to domestic end users and distributors and agents internationally. In accordance with ASC 606, the Company recognizes revenue, net of discounts, for our generator sets at the time of product delivery and acceptance by the customer (i.e. point-in-time), which also corresponds to the passage of legal title to the customer and the satisfaction of our performance obligation to the customer.
Cost of Goods Sold

Cost of Goods Sold

 

Cost of goods sold primarily consists of the salaries of certain employees and contractors, purchase price of consumer products, packaging supplies, inventory reserve and customer shipping and handling expenses. Shipping costs to receive products from our suppliers are included in our inventory and recognized as cost of revenue upon sale of products to our customers.
Cash and Cash Equivalents

Cash and Cash Equivalents

 

Cash and equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.
Inventories

Inventories

 

Inventories are valued at the lower of cost (first-in, first-out) or net realizable value, on an average cost basis. We review the components of inventory on a regular basis for excess or obsolete inventory based on estimated future usage and sales. When evidence exists that the net realizable value of inventory is lower than its cost, the difference is recognized as a loss in the period in which it occurs. Once inventory has been written down, it creates a new cost basis for inventory that may not be subsequently written up. During the years ended February 28, 2026 and 2025, the Company wrote down inventories of $0 and $19, respectively. 

Property and Equipment

Property and Equipment

 

Property and equipment are recorded at historical cost and depreciated on a straight-line basis over their estimated useful lives of approximately three years up to ten years. Leasehold improvements are amortized over the shorter of the useful life or the remaining period of the applicable lease term.

 

Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is an indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value at that time. At February 28, 2026 and 2025, management determined there were no impairments of the Company’s property and equipment.
Impairment of Long-lived Assets

Impairment of Long-lived Assets

 

The Company reviews its property and equipment, right-of-use asset, and other long-lived assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. For the years ended February 28, 2026 and 2025, the Company had no impairment of long-lived assets.
Leases

Leases

 

The Company determines whether a contract is, or contains, a lease at inception. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments.
Customer Advances

Customer Advances

 

Customer advances represent consideration received from customers under revenue contracts for which the Company has not yet delivered to the customer the ordered goods or services.
Concentration of Credit and Other Risks

Concentration of Credit and Other Risks

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and accounts receivable. Cash is deposited with a limited number of financial institutions. The balances held at any one financial institution may at times exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limit of $250. We have not experienced any losses in such accounts and believe we are not exposed to any significant risk with respect to cash and cash equivalents.

 

During the year ended February 28, 2026, one customer accounted for 95% of revenues. During the year ended February 28, 2025, one customer accounted for 60% of revenues, and another accounted for 10%. No other customer accounted for more than 10% of revenues.

 

As of February 28, 2026, five vendors accounted for 34%, 13%, 11%, 10%, and 10% of accounts payable. As of February 28, 2025, four vendors accounted for 42%, 12%, 11% and 9% of accounts payable.

Research and Development

Research and Development

 

Research and development expenses relate primarily to the development, design, and testing of preproduction prototypes and models and are expensed as incurred. Research and development costs for Fiscal 2026 and 2025 were approximately $1,562 and $1,249, respectively.

Share-Based Compensation

Share-Based Compensation

 

The Company periodically issues stock options, warrants, and shares of common stock to employees and non-employees in non-capital-raising transactions for services and for financing costs. Share-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the requisite service period. Recognition of compensation expense for non-employees is in the same period and in the same manner as if the Company had paid cash for services.
Income Taxes

Income Taxes

 

The Company uses an asset-and-liability approach to accounting and reporting of income taxes, which allows recognition and measurement of deferred tax assets based on the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company can realize their benefits or that their future deductibility is uncertain. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense.
Derivative Liabilities

Derivative Liabilities

 

The Company evaluates its financial instruments to determine whether they are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments accounted for as liabilities, the instrument is initially recorded at fair value and is then revalued at each reporting date, with changes in fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.

 

The Company uses Level 3 inputs for its valuation methodology for the derivative liabilities, as their fair values were determined by using a Black-Scholes option pricing model. The Company’s derivative liabilities are adjusted to reflect fair value at each reporting date, with any increase or decrease in the fair value being recorded in the statement of operations. 

 

To determine the number of authorized but unissued shares available to satisfy outstanding convertible securities, the Company uses a sequencing method to prioritize its convertible securities as prescribed by ASC 815-40-35. At each reporting date, the Company reviews its convertible securities to determine whether their classification is appropriate.
Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

The Company determines the fair values of its financial instruments using a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. Under ASC 820, Fair Value Measurement and Disclosures (“ASC 820”), the fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:

 

● Level 1 – Quoted prices (unadjusted) for identical assets and liabilities in active markets;

 

● Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly; and

 

● Level 3 – Unobservable inputs.

 

The recorded amounts of inventory, other current assets, accounts payable, and accrued expenses approximate their fair value due to their short-term nature. The carrying amounts of notes payable and convertible notes payable approximate their respective fair values because of their current interest rates payable in relation to current market conditions.

 

The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities at fair value as of February 28, 2026 and 2025:

 

    February 28, 2026  
(amounts in thousands)   Level 1     Level 2     Level 3     Total  
Liabilities                        
Derivative liability – convertible note conversion option   $            -     $            -     $ 22,844     $ 22,844  
Total   $ -     $ -     $ 22,844     $ 22,844  

 

    February 28, 2025  
    Level 1     Level 2     Level 3     Total  
Liabilities                        
Derivative liability – convertible note conversion option   $            -     $            -     $ 17,565     $ 17,565  
Total   $ -     $ -     $ 17,565     $ 17,565  

 

The Company estimated the fair value of the derivative liability using the Black-Scholes option pricing model.  

  

The following table provides a roll-forward of the derivative liability measured at fair value on a recurring basis using unobservable level 3 inputs for the period ended February 28, 2026, as follows:

 

(amounts in thousands)   Fair Value of
Derivative
Warrant
Liability		  
February 28, 2025   $ 17,565  
Change in fair value of derivative liability     5,279  
February 28, 2026   $ 22,844  
Earnings (loss) per share

Earnings (loss) per share

 

The Company’s earnings (loss) per share amount has been computed based on the weighted-average number of shares of common stock outstanding for the period. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average number of shares of common stock assuming all potential shares had been issued, and the additional shares of common stock were dilutive. Diluted earnings (loss) per share reflects the potential dilution, using the as-if-converted method for convertible debt, and the treasury stock method for options and warrants, which could occur if all potentially dilutive securities were exercised.

 

For the years ended February 28, 2026 and 2025, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have had an anti-dilutive effect. The potentially dilutive securities consisted of the following:

 

    February 28,
2026		    

February 28,

2025

  
Warrants     6,451,664       6,511,664  
Options     4,000,000       8,250,000  
Convertible notes     176,479,241       59,092,024  
Total     186,930,905       73,853,688  
Inflation

Inflation

 

The continuing impact of higher inflation and the actions by the Federal Reserve to address inflation create uncertainty about the future economic environment, which will continue to evolve and, we believe, has impacted the Company’s business in 2026 and may continue to impact its business in 2027. The implications of higher government deficits and debt, tighter monetary policy, and potentially higher long-term interest rates may drive up the cost of capital for the business and increase the Company’s operating expenses.
Segments

Segments

 

Under ASC 280, Segment Reporting, operating segments are defined as components of an enterprise for which discrete financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) to decide how to allocate resources and assess performance. The Company’s operating segment consists of one component, and the Company’s Chief Executive Officer, who is also the CODM, makes decisions and manages the Company’s operations as a single operating segment.
Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses which includes amendments that require disclosure in the notes to financial statements of specified information about certain costs and expenses, including purchases of inventory; employee compensation; and depreciation, amortization and depletion expenses for each caption on the income statement where such expenses are included. The amendments are effective for the Company’s annual periods beginning January 1, 2027, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is in the process of evaluating this ASU to determine its impact on the Company’s disclosures.

 

Other recent accounting pronouncements issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.