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 Economic Injury Disaster Loan (“EID Loan”) program. The loan is due July 1, 2050, accrues interest at 3.75% per annum, and is secured by the Company’s assets. As of May 31, 2026 and February 28, 2026, the outstanding balance of the EID Loan amounted to $150.

(b) Notes payable – vehicle

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 an original principal of $78, is due January 20, 2027, and requires 72 equal monthly payments of approximately $1.5, including interest at 10.9% per annum. As of May 31, 2026 and February 28, 2026, the outstanding balance of the note payable amounted to $28 and $32, respectively.

(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. 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 May 31, 2026 and February 28, 2026, the outstanding balance of the note payable amounted to $64.

During Fiscal 2026, the Company obtained a loan of $280 from a financing institution to finance the Company’s use of a third-party software license. 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 May 31, 2026, the outstanding balance of the note payable amounted to $280, of which $200 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 May 31, 2026 and February 28, 2026, amounted to $344.

(d) Notes payable – machinery and other equipment

During Fiscal 2025, the Company obtained a $274 loan 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 May 31, 2026 and February 28, 2026, the outstanding balance of the note payable amounted to $175 and $197, respectively.  

During Fiscal 2026, the Company obtained a $390 loan 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 May 31, 2026 and February 28, 2026, the outstanding balance of the note payable amounted to $376 and $366, respectively.

The aggregate total of the note payable-machinery and other equipment as of May 31, 2026 and February 28, 2026, amounted to $551 and $563, respectively.

(e) Note payable – other

As of May 31, 2026, and February 28, 2026, 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.