7 RELATED PARTY TRANSACTIONS

12 Months Ended

Feb. 28, 2015

Notes to Financial Statements

RELATED PARTY TRANSACTIONS

NOTE 7:   RELATED PARTY TRANSACTIONS

During the year ended February 28, 2014, the Company paid certain expenses of approximately $14,000 on behalf of Carl Palmer, Chairman, President and Director of the Company, of which approximately $1,400 was repaid in fiscal year 2015 and the remainder will be repaid in fiscal year 2016. The receivable amount is included in related party receivable on the accompanying 2015 and 2014 consolidated balance sheets.

The Company paid consulting fees to the Company's primary shareholder (the TAM Irrevocable Trust (the TAM Trust), in which Cari Beck is the trustee, as well as a daughter of Carl Palmer, an officer and Board member) totaling $252,000 and $138,000 during the years ended February 28, 2015 and 2014, respectively, which are included as a component of selling, general and administrative expenses on the consolidated statements of operations.

During the year ended February 28, 2015, the Company paid $150,000 to TAM Trust for purchase of intellectual property retained by TAM when the Company was organized in 1998.

During the year ended February 28, 2015, TAM Trust purchased, on behalf of the Company, $40,000 of raw materials, and paid $1,500 for related tooling to a vendor with which it already had a business relationship. The Company reimbursed TAM Trust for this outlay in full during the fiscal year ended February 28, 2015.