NOTE 9 – RELATED PARTY TRANSACTIONS

3 Months Ended

May 31, 2016

NOTE 9 – RELATED PARTY TRANSACTIONS

The Company incurred the following items with directors and companies with common directors and shareholders:

	May 31,
	2016			2015
Interest expense		$	21,218		$	13,188

As of May 31, 2016, included in accounts payable is $33,495 (February 29, 2016: $33,495) owing to an accounting firm in which a director of the Company is a partner and $2,389 (February 29, 2016: $2,389) to a shareholder with respect to unpaid fees and interest on promissory notes, $480,000 (February 29, 2016: $480,000) owing to shareholders of the Company in respect of royalties payable with no interest accruing, $53,694 (February 29, 2016: $53,694) owing to the former president of the Company in respect of unpaid wages and $17,117 (February 29, 2016: $17,117) accrued expenses related to a director of the Company.

As of May 31, 2016, included in advances payable is $38,658 (February 29, 2016: $60,158) owed to a company controlled by a director.

As of May 31, 2016, promissory notes payable of $439,590 (February 29, 2016: $439,590 is due to a profit-sharing and retirement plan administered by a director of the Company. Terms are:

Date Due:	Amount
August, 2016	$	12,500
April, 2016		15,000
November, 2016		27,500
December, 2016		384,590
Total	$	439,590

All bear interest at 12% per annum.

As of May 31, 2016, promissory note payable of $56,678 (February 29, 2016: $62,719) is personally guaranteed by a related party of the director of the company.