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2. MANAGEMENT'S PLAN
3 Months Ended
May 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
MANAGEMENT'S PLAN

NOTE 2:    MANAGEMENT'S PLAN

 

Our largest customer during the year ended February 29, 2016, has raised concerns regarding the effectiveness of certain of our filters, in particular, the efficacy of fluoride removal. There were no sales to this customer during the three month period ended May 31, 2016 and the likelihood of this customer continuing to purchase our product in the future is remote.  The loss of business from this customer has had a materially adverse effect on our revenues in the short term and may continue to have a materially adverse effect on our revenues in the long term if these revenues are not replaced by new products and other existing or new customers.

 

As of May 31, 2016, the Company had $747,846 in cash and cash equivalents, $299,156 in accounts receivable, working capital of $3,565,796 and a backlog of $34,000 in unshipped product. Additionally, the Company has developed an innovative new concept of a world filter product to sell in the world where quality drinking water is not available. Both the bottle and cap will to be sourced locally to make the finished product competitive in the international market. The Company initiated these foreign sales plans subsequent to year-end with the appointment of its first international exclusive sales agent. Accordingly, management believes that over the next twelve months, sufficient working capital and liquidity will be obtained from sales to existing and new customers to sustain operations.  The TAM Trust has also committed to providing up to $500,000 in additional funding, if required.