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2. MANAGEMENT'S PLAN AND LIQUIDITY
6 Months Ended
Aug. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
MANAGEMENT'S PLAN AND LIQUIDITY

 

NOTE 2:    MANAGEMENT'S PLAN AND LIQUIDITY

 

Our largest customer ceased placing orders in February 2016. There were no sales to this customer during the six month period ended August 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 August 31, 2016, the Company had $387,601 in cash and cash equivalents, $435,751 in accounts receivable, working capital of $3,259,996 and a backlog of $51,756 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. Under this initiative, both the bottle and cap will to be sourced locally in each country to make the finished product competitive in the international market. The Company initiated these foreign sales plans during the six months ended August 31, 2016 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, in addition to debt and other capital sources as required to fund operations.  The TAM Trust ("TAM"), the Company's major stockholder, has also verbally committed to provide up to $500,000 in additional funding as a line of credit to Seychelle, if required but is not legally obligated to do so.