Notes Payable

12 Months Ended

Feb. 28, 2022

Debt Disclosure [Abstract]

Notes Payable

7. Notes Payable

a) On May 20, 2020, the Company entered into a promissory note with a third-party lender for $25,000, which is unsecured, bears interest of 10% per annum and matured on May 20, 2021. During the year ended February 28, 2022, an addendum was entered into to extend the maturity date to May 20, 2023. As at February 28, 2022, the Company has recognized accrued interest of $4,445 (2021 – $1,801), which is included in accounts payable and accrued liabilities.

b) On May 27, 2020, the Company entered into a promissory note with the U.S. Small Business Administration for $77,800, which is secured by the assets of the Company, bears interest of 3.75% per annum and matures on May 27, 2050. Installment payments, including principal and interest, of $380 per month will begin 12 months from the date of the promissory note. As at February 28, 2022, the Company has recognized accrued interest of $4,352 (2021 – $2,174), which is included in accounts payable and accrued liabilities. During the year ended February 28, 2022, the Company made interest payments of $780 (2021 - $nil).

c) On April 14, 2021, the Company entered into a promissory note with a third-party lender for $26,000, which is unsecured, bears interest of 10% per annum and matured on October 13, 2021. During the year ended February 28, 2022, an addendum was entered into to extend the maturity date to October 13, 2023. As at February 28, 2022, the Company has recognized accrued interest of $2,279, which is included in accounts payable and accrued liabilities.

d) During the year ended February 28, 2022, a third-party lender purchased from a Director of the Company a promissory note in the amount of $15,000 (note 6(b)), which is unsecured, bears interest of 10% per annum and has an original maturity date of October 13, 2021. The maturity date was amended to October 13, 2023 during the year ended February 28, 2022. As at February 28, 2022, the Company has recognized accrued interest of $1,315, which is included in accounts payable and accrued liabilities.

e) On October 22, 2021, the Company entered into a promissory note with a third-party lender for $25,500, which is unsecured, bears interest of 10% per annum and matures on April 26, 2022. As at February 28, 2022, the Company has recognized accrued interest of $901, which is included in accounts payable and accrued liabilities.

f) On February 11, 2022, the Company entered into a promissory note with a third-party lender for $130,000, which is unsecured, bears interest of 10% per annum and matures on February 11, 2023. As at February 28, 2022, the Company has recognized accrued interest of $605, which is included in accounts payable and accrued liabilities.