NOTE 3 – INVENTORIES

Inventories, stated at the lower of cost (first in first out), or market consisted of the following:

	November 30, 2015			February 28, 2015

Raw materials	$	1,858,347		$	1,772,869
Finished goods		1,558,554			1,565,190
		3,416,901			3,338,059

Inventory reserve		(3,416,901	)		(3,338,059	)
	$	0		$	0

The Company has not operated, and therefore has not produced product since late 2015. As a result, while the Company believes that a significant portion of the inventory has value, we are unable to substantiate its demand and market value and as a result have elected to reserve it in its entirety as of November 30, 2015 and February 28, 2015.