10 COMMITMENTS AND CONTINGENCIES

12 Months Ended

Feb. 28, 2017

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 10:    COMMITMENTS AND CONTINGENCIES

The Company entered into a lease agreement on one facility for its 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 sub leases its facility in San Juan Capistrano, CA.

Future minimum base lease payments net of sublease income are as follows:

Fiscal Year Ending
February 28,	Amount
2018		369,525
2019		286,000
2020		263,000
2021		259,000
Thereafter		109,000
Total	$	1,286,525
Rent from SJC		(32,525	)
Total		1,254,000

Legal Proceedings

The Company was not involved in any litigation or legal proceedings as of February 28, 2017.  On March 27, 2017, the Company received a Notice of Filing of Discrimination complaint in the Superior Court of California, County of Orange by a former employee.  The Company also received on June 5, 2017, a Request for Entry of Default filed to Superior Court of California, County of Orange by the same employee. The Company believes that the complaint is completely without merit and plans to vigorously contest the matter.

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, 2017 and February 29, 2016, the Company paid $12,500 and $12,000, respectively, in royalties and licensing fees related under these agreements.