NOTE 10 - CONCENTRATIONS AND CONTINGENCIES

3 Months Ended

May 31, 2016

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

NOTE 10 – CONCENTRATIONS AND CONTINGENCIES

Concentrations

Approximately 99% of the Company’s revenues are obtained from two (2) customers. The Company is exposed to significant sales and accounts receivable concentration. Sales to these customers are not made pursuant to a long term agreement. Customers are under no obligation to continue to purchase from the Company.

For the three months ended May 31, 2016, one (1) customer accounted for approximately 99% of revenue. For the three months ended May 31, 2015, there was one (1) customer that accounted for 99% of sales revenue.

Contingencies

During the normal course of business we may from time to time be involved in litigation or other possible loss contingencies. As of May 31, 2016 and February 29, 2016 management is not aware of any possible contingencies that would warrant disclosure pursuant to SFAS 5.

Commitments

Our future minimum royalty payments on the ScopeOut® agreement consist of the following:

A 5% royalty with a $.75 per unit maximum “minimum royalty” to retain exclusivity with the following volumes:

End of calendar year containing the second anniversary:	30,000 units
End of calendar year containing the third anniversary:	60,000 units