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2018-11-30
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2017-03-01
2017-11-30
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2018-03-01
2018-11-30
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2018-09-01
2018-11-30
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2017-09-01
2017-11-30
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2017-11-30
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2019-01-09
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2017-02-28
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iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
SYEV:Y
xbrli:pure
6000000
6000000
0
0
0
0
0.001
0.001
50000000
50000000
26640313
26640313
47600
6080
26640313
26640313
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 2:    BASIC INCOME (LOSS) PER SHARE</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic income per common share is computed by
dividing net income by the weighted average number of common shares outstanding during each period presented.  Diluted
income per share is determined using the weighted average number of common shares outstanding during the period, adjusted for the
dilutive effect of common stock equivalents, assuming conversion, exercise, or issuance of all potential common stock equivalents
unless the effect is to reduce a loss or increase the income per share.  If the inclusion of common stock equivalents in the
weighted average number of common shares outstanding would be anti-dilutive these items would be omitted from the calculation of
net income per common share.  The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings
per share by application of the treasury stock method. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The denominator for diluted income (loss) per
share for the periods ended November 30, 2018 and 2017, respectively, did not include 6,407,221 warrants as they would have been
anti-dilutive.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="7" style="text-align: center"><font style="font-size: 10pt">For the nine months ended</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">November 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2018</font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2017</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 72%"><font style="font-size: 10pt">Net (loss) income available to common shareholders</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">(163,087</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">491,995</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Weighted average common shares – basic</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Net (loss) income per share – basic</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.01</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.02</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Dilutive effect of common stock equivalents:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Warrants</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Weighted average common shares – diluted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Net (loss) income per share – diluted</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.01</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.02</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="7" style="text-align: center"><font style="font-size: 10pt">For the three months ended</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">November 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2018</font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2017</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 72%"><font style="font-size: 10pt">Net (loss) income available to common shareholders</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">(126,258</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">246,618</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Weighted average common shares – basic</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Net (loss) income per share – basic</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.00</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.01</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Dilutive effect of common stock equivalents:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Warrants</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Weighted average common shares – diluted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Net (loss) income per share – diluted</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.00</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.01</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 5:    INVENTORY</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company's inventory consisted of the following at November 30,
2017 and February 28, 2017:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>November 30,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2017</b></p></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>February 28,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2017</b></p></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt">Raw materials</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">716,182</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">1,034,406</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Finished goods</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">259,191</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">387,465</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">  Net inventory</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">975,373</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,421,871</font></td>
<td nowrap="nowrap"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The denominator for diluted income (loss) per
share for the periods ended November 30, 2018 and 2017, respectively, did not include 6,407,221 warrants as they would have been
anti-dilutive.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="7" style="text-align: center"><font style="font-size: 10pt">For the nine months ended</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">November 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2018</font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2017</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 72%"><font style="font-size: 10pt">Net (loss) income available to common shareholders</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">(163,087</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">491,995</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Weighted average common shares – basic</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Net (loss) income per share – basic</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.01</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.02</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Dilutive effect of common stock equivalents:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Warrants</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Weighted average common shares – diluted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Net (loss) income per share – diluted</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.01</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.02</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="7" style="text-align: center"><font style="font-size: 10pt">For the three months ended</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">November 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2018</font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">2017</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3"> </td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 72%"><font style="font-size: 10pt">Net (loss) income available to common shareholders</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">(126,258</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">246,618</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Weighted average common shares – basic</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Net (loss) income per share – basic</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.00</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.01</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Dilutive effect of common stock equivalents:</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Warrants</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Weighted average common shares – diluted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">26,574,313</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Net (loss) income per share – diluted</font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.00</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.01</font></td>
<td> </td></tr>
</table>
<p style="margin: 0pt"> </p>
SEYCHELLE ENVIRONMENTAL TECHNOLOGIES INC /CA
0001056757
10-Q
2018-11-30
false
--02-28
Yes
Non-accelerated Filer
Q3
2017
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 5:    REVENUE RECOGNITION AND CONCENTRATIONS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's performance obligations consist
solely 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Percentage of sales to two customers</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Sales to two customers accounted for 56% of
sales for the three and nine month periods ended November 30, 2018.  Accounts receivable from these customers amounted to
$290,215 or approximately 66% of accounts receivable as of November 30, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Sales to one customer accounted for 33% and
32% of sales for the three and nine month periods ended November 30, 2017, respectively. Accounts receivable from one customer
amounted to $583,779 or approximately 89% of accounts receivable as of November 30, 2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Decrease in revenue of $1,350,443 with a net
loss of $163,087 for the nine period ended November 30, 2018. In fiscal year 2018 a significant portion of our revenues came from
organizations which were engaged in natural disaster relief activities. In fiscal year 2019, we did not have the same level of
natural disaster revenues and did not replace these customers. As a result our revenue decreased. We have refocused our attention
in replacing our customer revenue by expanding our scope with other organizations and will continue to do so.</p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 6:    RELATED PARTY
TRANSACTIONS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">During the nine months ended November 30, 2018 and 2017, TAM purchased
on behalf of the Company approximately $0 and $0 respectively.  All amounts due to TAM had been paid in full as of November
30, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company utilizes the services of an individual,
who is a related party, to source materials and provide the manufacturing of component parts with third-party vendors in China.
For the nine months ended November 30, 2018 and 2017, purchases facilitated through the related party accounted for approximately
16% and 22%, respectively, of total raw material purchases. The Company paid approximately $39,000 and $ 37,000 in direct commissions
to the related party consultant during the nine months ended November 30, 2018 and 2017, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company advanced amounts to an employee
of approximately $26,150 and $26,750 as of November 30, 2018 and 2017, respectively. These amounts are being repaid through direct
payroll withdrawals.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had receivable, from stockholders
of approximately $11,000 and $2,000 as of November 30, 2018 and 2017, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had sales to two companies related
to a former member of the Board of Directors.  Specifically, sales to Sovereign Earth, LLC (dba Revolve) totaled approximately
$653,000 and $379,000 for the nine months ended November 30, 2018 and 2017, respectively and sales to Amazon Seychelle totaled
approximately $98,000 and $12,000 for the nine months ended November 30, 2018 and 2017, respectively.  Sovereign Earth, LLC
(dba Revolve) is the sole and exclusive seller of the following products in worldwide markets, including Amazon World Marketplaces: 
amazon.com, amazon.co uk, amazon.de, amazon.fr, amazon.jp, amazon.it, amazon.ca, amazon.cn, amazon.in, and amazon.com.mx for the
duration of the agreement:  Generation#1 Filter Pitcher:  All filter iterations (regular, standard, advanced, radiological,
extreme, supreme, etc.)</p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 7:  COMMITMENTS AND CONTINGENCIES</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> <u>Legal Proceedings</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There is a pending action titled Rolling Tides,
LLC vs. Carl Palmer, Seychelle Environmental Technologies, Inc., and other defendants.  The case was brought in the Superior
Court of the State of California, County of Orange.  The action alleges certain fraudulent transfers occurred from Seychelle
to the various defendants.  The plaintiffs have refused to identify any such transfers by date or amount.  The matter
is in early discovery and no trial date is set.  All the defendants have denied the allegations of the complaint and are vigorously
defending the matter.  It is not likely that the case will be settled without trial.  The Company believes that the case
has no merit.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Licenses</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">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 nine months ended November 30, 2018 and 2017, the
Company paid $7,136 and $19,651, respectively, in royalties and licensing fees related under these agreements.</p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 8: SUBSEQUENT EVENTS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management has evaluated subsequent events
from November 30, 2018 through the date the condensed consolidated financial statements were issued, and has concluded that no
subsequent events have occurred that would require recognition or disclosure in these condensed consolidated financial statements.</p>
<p style="margin: 0pt"> </p>
0
0
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>November 30,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2017</b></p></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>February 28,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2017</b></p></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><font style="font-size: 10pt">Raw materials</font></td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">716,182</font></td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 8%; text-align: right"><font style="font-size: 10pt">1,034,406</font></td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Finished goods</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">259,191</font></td>
<td nowrap="nowrap"> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">387,465</font></td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">  Net inventory</font></td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">975,373</font></td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,421,871</font></td>
<td nowrap="nowrap"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 1:    CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying condensed consolidated financial
statements have been prepared by Seychelle Environmental Technologies, Inc., and subsidiaries (the "Company") without audit.  In
the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial
position, results of operations, and cash flows at November 30, 2018, and for all periods presented herein, have been made.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain information and footnote disclosures
normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States
of America have been condensed or omitted.  It is suggested that these condensed consolidated financial statements be
read in conjunction with the consolidated financial statements and notes thereto included in the Company's annual report on
Form 10-K for the year ended February 28, 2018.  The results of operations for the periods ended November 30, 2018 and
2017 are not necessarily indicative of the operating results for the full fiscal years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The summary of significant accounting policies
of the Company is presented to assist in understanding the Company's condensed consolidated financial statements. The condensed
consolidated financial statements and notes are representations of the Company's management, which is responsible for their integrity
and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America
and have been consistently applied in the preparation of the condensed consolidated financial statements and the February 28, 2018
consolidated financials included in the 10-K filed on June 8, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of condensed consolidated financial
statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses
during the reporting periods. Actual results could differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Except for the accounting policy for revenue
recognition, which was updated as a result of adopting a new accounting standard related to revenue recognition, there have been
no material changes to our significant accounting policies in Note 2 - Significant Accounting Policies, of the Notes to Condensed
Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 28, 2018.
The Financial Accounting Standards Board, or FASB, issued an accounting standards update that creates a single source of revenue
guidance under U.S. GAAP for all companies, in all industries. We adopted this guidance on March, 2018 using the modified retrospective
approach. The adoption of this guidance did not have a significant impact on our condensed consolidated financial statements. 
Refer to Note 5 of these Notes to Condensed Consolidated Financial Statements for additional information.</p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 9:  INCOME TAX</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Tax Cuts and Jobs Act</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 22, 2017, the U.S. government enacted
comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "TCJA"). The TCJA makes broad and
complex changes to the U.S. tax code, including, but not limited to, reducing the U.S. statutory corporate income tax rate from
35 percent to 21 percent, effective January 1, 2018. U.S. GAAP requires that deferred income tax assets and liabilities be remeasured
at the income tax rate expected to apply when those temporary differences reverse, and that the effects of any change to such income
tax rate be recognized in the period when the change was enacted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the Company's initial analysis
of the impact of the TCJA, the Company recorded a discrete net tax expense of $282,408 in the year ended February 28, 2018. This
net expense is primarily due to the remeasurement of the Company's existing deferred tax assets and liabilities. Due to the Company
having a full valuation allowance related to their deferred taxes, the $282,408 discrete tax expense associated with the remeasurement
is equally offset by the valuation allowance causing an overall net zero impact on the Company's current tax rate.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The SEC staff issued Staff Accounting Bulletin
No. 118 ("SAB 118"), which provides guidance on accounting for the tax effects of the TCJA. SAB 118 provides a measurement
period that should not extend beyond one year from the TCJA enactment date for companies to complete the accounting under ASC 740.
To the extent that a company's accounting for certain income tax effects of the TCJA is incomplete but it is able to determine
a reasonable estimate, it must record a provisional estimate in the financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recorded the effects of the TCJA for year
ended February 28, 2018 using our best estimates and the information available to us through the date the financial statements
were issued. However, our analysis is ongoing and as such, the income tax effects that we have recorded are provisional.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Tax Provision</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expects its effective tax rate
for the 2019 fiscal year to be different from the federal statutory rate due primarily to a change in valuation allowance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recorded a provision for income taxes of
$0 and $0 for the quarter ended November 30, 2018 and 2017 respectively, related to federal and state taxes, based on the
Company's expected annual effective tax rate.</p>
<p style="margin: 0pt"> </p>
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3681581
829790
484889
35007
36700
998296
1083417
159980
82223
135539
108502
66670
66670
4301115
3906707
441866
303057
163184
74637
5402
5800
610452
383494
9082
4719
619534
388213
26641
26641
8944368
8944368
-5259748
-5422835
29680
29680
4301115
3906707
26574313
26574313
26574313
26574313
502038
-161503
-125796
247194
1313363
1393717
442944
523365
51094
41296
13294
16040
1262269
1352421
429650
507325
1815401
1232214
317148
770559
2014064
1246809
292296
858765
3829465
2479023
609444
1629324
3850
1491
453
-142
-93
-9
-576
-3992
-1584
-462
-576
498046
-163087
-126258
246618
6051
0.02
-0.01
0.00
0.01
0.02
-0.01
0.00
0.01
26574313
26574313
26574313
26574313
26640313
66000
26640313
66000
26390313
66000
4098906
3731535
3850
1491
2075833
2044306
1776482
732112
1044370
-31527
-3033
-3966
3033
3966
-13364
-14259
13364
14259
1060767
-13302
30381
-88547
-153595
-138808
47375
77757
446498
-85121
-1722
-1693
190261
323334
-41520
21567
51094
41296
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 3:   COMMON STOCK</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>StockholdersEquityNoteDisclosureTextBlock</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Common Stock</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">During the quarter ended November 30, 2018 and 2017, no securities
were issued by the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Warrants</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of warrant activity for the nine
months ended November 30, 2018 is shown below.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted-</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Warrants</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Outstanding</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Price</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2"> </td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="width: 78%"><font style="font-size: 10pt">Outstanding at March 1, 2018</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 10pt">6,407,221</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 10pt">0.21</font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 10pt">Granted</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td><font style="font-size: 10pt">Exercised</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 10pt">Forfeited</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td><font style="font-size: 10pt">Outstanding at November 30, 2018</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">6,407,221</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.21</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td><font style="font-size: 10pt">Vested at November 30, 2018</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">6,407,221</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.21</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 10pt">Exercisable at February 28, 2018</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">6,407,221</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.21</font></td>
<td style="vertical-align: bottom"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The following table summarizes significant ranges of outstanding
warrants as of November 30, 2018:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>Warrants Outstanding</b></font></td>
<td colspan="4" style="text-align: center"><font style="font-size: 10pt"><b>Warrants Exercisable</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font></td>
<td colspan="2"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average</b></font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average</b></font></td>
<td colspan="2"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Remaining</b></font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Number</b></font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Exercise Price</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Number</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Life (Years)</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Price</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Outstanding</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Price</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 1%"> </td>
<td style="width: 24%; text-align: center"><font style="font-size: 10pt">  $0.21</font></td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: center"><font style="font-size: 10pt">   6,407,221</font></td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: center"><font style="font-size: 10pt">   1.75</font></td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: center"><font style="font-size: 10pt">  $0.21</font></td>
<td style="width: 1%"> </td>
<td style="width: 17%; text-align: center"><font style="font-size: 10pt">   6,407,221</font></td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: center"><font style="font-size: 10pt">  $0.21</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted-</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Warrants</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Outstanding</b></font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Price</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td colspan="2"> </td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="width: 78%"><font style="font-size: 10pt">Outstanding at March 1, 2018</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 10pt">6,407,221</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 8%; text-align: right"><font style="font-size: 10pt">0.21</font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 10pt">Granted</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td><font style="font-size: 10pt">Exercised</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 10pt">Forfeited</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td><font style="font-size: 10pt">Outstanding at November 30, 2018</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">6,407,221</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.21</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td><font style="font-size: 10pt">Vested at November 30, 2018</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">6,407,221</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.21</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: #CCEEFF">
<td><font style="font-size: 10pt">Exercisable at February 28, 2018</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">6,407,221</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.21</font></td>
<td style="vertical-align: bottom"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td colspan="6" style="text-align: center"><font style="font-size: 10pt"><b>Warrants Outstanding</b></font></td>
<td colspan="4" style="text-align: center"><font style="font-size: 10pt"><b>Warrants Exercisable</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font></td>
<td colspan="2"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average</b></font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average</b></font></td>
<td colspan="2"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Remaining</b></font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Number</b></font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Exercise Price</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Number</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Life (Years)</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Price</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Outstanding</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Price</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 1%"> </td>
<td style="width: 24%; text-align: center"><font style="font-size: 10pt">  $0.21</font></td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: center"><font style="font-size: 10pt">   6,407,221</font></td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: center"><font style="font-size: 10pt">   1.75</font></td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: center"><font style="font-size: 10pt">  $0.21</font></td>
<td style="width: 1%"> </td>
<td style="width: 17%; text-align: center"><font style="font-size: 10pt">   6,407,221</font></td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: center"><font style="font-size: 10pt">  $0.21</font></td></tr>
</table>
6407221
6407221
6407221
0.21
0.21
0.21
0.21
6407221
0.21
6407221
P2Y7M20D
6407221
0.56
0.56
0.32
0.33
290215
583779
39000
39000