CONCENTRATIONS

3 Months Ended

May 31, 2013

Notes to Financial Statements

CONCENTRATIONS

Credit risk- Financial instruments that potentially subject the Company to concentrations of credit risk consist of demand deposits with a financial institution. At May 31, 2013, there are no balances exceeding FDIC insurance of $250,000. The Company believes there is minimal credit risk relative to its cash and investment accounts.

The Company is also potentially subject to concentrations of credit risk in its accounts receivable. Credit risk with respect to receivables is limited due to the number of companies comprising the Company’s customer base. Although the Company is directly affected by the financial condition of its customers, management does not believe significant credit risks exist at May 31, 2013. Generally, the Company does not require collateral or other securities to support its accounts receivable.

Major customer- The Company has one major customer that accounted for approximately 42% and $54,671 of sales for the three months ended May 31, 2013. The Company expects to maintain this relationship with the customer.

Major vendor- The Company has one major vendor that accounted for approximately 23% and $293,500 of materials purchased for the three months ended May 31, 2013. The Company expects to maintain this relationship with the vendor.