Convertible Note Payable-Related Party

9 Months Ended

Nov. 30, 2023

Convertible Note Payable-Related Party [Abstract]

CONVERTIBLE NOTE PAYABLE-RELATED PARTY

NOTE 3 – CONVERTIBLE NOTE PAYABLE-RELATED PARTY

Convertible note payable – related party consisted of the following:

	November 30, 2023		February 28, 2023
(amounts in thousands)
(a) Convertible note payable 1 – past due	$	3,000	$	3,000
(b) Convertible note payable 2		20		-
Non-current		-		-
Current	$	3,020	$	3,000

(a) On January 24, 2017, the Company entered into a debt refinancing agreement with a former director and current shareholder of the Company. As part of the agreement, the Company issued a $3,000 convertible note. The convertible note is unsecured, bears interest at 5% per annum, and was due February 2, 2023. The convertible note is convertible into shares of common stock at a conversion price of $1.40 per share, as adjusted.  As of February 28, 2023, outstanding balance of the convertible note amounted to $3,000 and is past due.

(b) During the nine months ended November 30, 2023, the Company issued a convertible note payable of $20,000 in exchange for cash to a member of the Company’s Board of Directors. The convertible note is unsecured, bears interest at rate of 10% per annum and will mature in March 2024. The convertible note payable is convertible to common stock at a conversion rate of $0.20 per share.   As part of the offering, the Company also granted the note holders who participated in this offering a total of 60,000 warrants, of which, 10,000 warrants were issued to the related party note holder (see Note 2).

As of November 30, 2023, outstanding balance of the convertible notes payable-related party amounted to $3,020, of which, $3,000 is past due.