5. REVENUE RECOGNITION AND CONCENTRATIONS	6 Months Ended
Aug. 31, 2018
Notes to Financial Statements
CONCENTRATIONS	NOTE 5: REVENUE RECOGNITION AND CONCENTRATIONS We derive our revenue primarily from product sales. We determine revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; (5) recognition of revenue when, or as, we satisfy a performance obligation. The Company’s performance obligations consist solefy of product shipped to customers. Revenue from product sales is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration we expect to receive in exchange for these products. Revenue is recognized net of returns and any taxes collected from customers. We offer standard contractual terms in our purchase orders. In addition, we use the practical expedient related to commissions paid since they would be amortized in less than one year. Sales to two customers accounted for 50% and 57% of sales for the three and six month periods ended August 31, 2018, respectively. Accounts receivable from these customers amounted to $416,254 or approximately 70% of accounts receivable as of August 31, 2018. Sales to one customer accounted for 29% and 31% of sales for the three and six month periods ended August 31, 2017, respectively. Accounts receivable from one customer amounted to $473,476 or approximately 73% of accounts receivable as of August 31, 2017.

5. REVENUE RECOGNITION AND CONCENTRATIONS

6 Months Ended

Aug. 31, 2018

NOTE 5: REVENUE RECOGNITION AND CONCENTRATIONS

We derive our revenue primarily from product sales. We determine revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; (5) recognition of revenue when, or as, we satisfy a performance obligation.

The Company’s performance obligations consist solefy of product shipped to customers. Revenue from product sales is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration we expect to receive in exchange for these products. Revenue is recognized net of returns and any taxes collected from customers. We offer standard contractual terms in our purchase orders. In addition, we use the practical expedient related to commissions paid since they would be amortized in less than one year.

Sales to two customers accounted for 50% and 57% of sales for the three and six month periods ended August 31, 2018, respectively. Accounts receivable from these customers amounted to $416,254 or approximately 70% of accounts receivable as of August 31, 2018.

Sales to one customer accounted for 29% and 31% of sales for the three and six month periods ended August 31, 2017, respectively. Accounts receivable from one customer amounted to $473,476 or approximately 73% of accounts receivable as of August 31, 2017.