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7 RELATED PARTY TRANSACTIONS
12 Months Ended
Feb. 28, 2017
Notes to Financial Statements  
RELATED PARTY TRANSACTIONS

 

NOTE 7:   RELATED PARTY TRANSACTIONS

 

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 and current Board member, as well as a daughter of Carl Palmer, an officer and Board member) totaling $37,350 and $138,000 during the years ended February 28, 2017 and February 29, 2016, respectively, which are included as a component of selling, general and administrative expenses on the consolidated statements of operations.

 

During the years ended February 28, 2017 and February 29, 2016, TAM Trust purchased, on behalf of the Company, $76,704 and $552,000, respectively, of raw materials from a vendor with which it already had a business relationship. . During the year ended February 29, 2016, the Company reimbursed TAM for approximately $10,000 of business travel costs incurred on behalf of its CEO, Carl Palmer.

 

The Company had advanced amounts to employees of approximately $27,200 and $28,000 as of February 28, 2017 and February 29, 2016. These amounts are being repaid through direct payroll withdrawals.