10 COMMITMENTS AND CONTINGENCIES

12 Months Ended

Feb. 28, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 10:    COMMITMENTS AND CONTINGENCIES

The Company's office facility lease expires in May 2019. The Company also leases a production facility and warehouse facility that expire in July 2017.  The three leases are at a monthly aggregate cost of $14,000. Total rent expense amounted to approximately $189,000 and $163,000 for the fiscal years ended February 28, 2015 and 2014, respectively.  The Company also has operating leases for certain equipment at a monthly cost of approximately $400.

Future minimum base lease payments are as follows:

Fiscal Year Ending
February 28,	Amount
2016	$	176,000
2017		180,000
2018		99,000
2019		41,000
2020		12,000
Total	$	508,000

Legal Proceedings

The Company previously reported that it was involved in a case titled Letty Garcia v. Carl Palmer; Seychelle Environmental Technologies, Inc., et, al., brought in the Superior Court for the State of California, San Diego County District.  This case has been transferred to the Orange County Superior Court for the State of California with trial date set for September 2015.  

In January 2012, the Company entered into a contract with a distributor in which it granted exclusive distribution rights for certain new product lines. Subsequently there was a contract dispute that has resulted in a lawsuit titled Archette Wellness Group, dba Functional Water Technologies v. Seychelle Environmental Technologies, brought in the U.S. District Court, for the Central District of California, Southern Division. This case was settled on March 4, 2015, and such amount was fully provided for as of February 28, 2015.

Otherwise, as of February 28, 2015 we know of no other material legal proceedings pending or threatened, or judgments entered against the Company or any of our directors or officers in their capacity as such.

Significant Agreements

The Company has historically entered into licensing agreements with third-parties for product proprietary rights, patent and trademark ownership, and use of product name. In return, the Company agrees to pay licensing fees and/or royalties on sales of those products. During the years ended February 28, 2015 and 2014, the Company paid $0 in royalties and licensing fees related to these agreements.