10 COMMITMENTS AND CONTINGENCIES

12 Months Ended

Feb. 29, 2016

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 $188,000 and $189,000 for the fiscal years ended February 29, 2016 and February 28, 2015, respectively.  The Company also has operating leases for certain equipment at a monthly cost of approximately $545.

Subsequent to year-end, the Company entered into a lease agreement on one facility that will house corporate offices, inventory and production at 22 Journey in Aliso Viejo, CA for a term of 5 years at a monthly rental of approximately $19,000, and such amounts are included in the table below. The Company is in the process of attempting to sub-lease all of its three current locations noted previously.

Future minimum base lease payments are as follows:

Fiscal Year Ending
February 28,	Amount
2017	$	316,000
2018		337,000
2019		286,000
2020		263,000
2021		259,000
Thereafter		109,000
Total	$	1,570,000

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.  The case was settled on November 16, 2015. The outstanding obligations were paid in full during the year ended February 29, 2016.  Legal fees and settlement charges amounted to $344, 000 during the year ended February 29, 2016.

Otherwise, as of February 29, 2016 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 29, 2016 and February 28,2015, the Company paid $12,000 and $37,125 in royalties and licensing fees related to these agreements.