Notes Payable

6 Months Ended

Aug. 31, 2025

Notes Payable [Abstract]

NOTES PAYABLE

NOTE 4 – NOTES PAYABLE

Notes payable consisted of the following:

(amounts in thousands)	August 31, 2025			February 28, 2025
Secured notes payable
(a) Note payable-EID loan	$	150		$	150
(b) Notes payable-vehicle and equipment		39			46
(c) Note payable - software license		79			208
(d) Notes payable – machinery and other equipment		213			238
Unsecured notes payable
(e) Note payable-other		10			10
Total	$	491		$	652
Current		(153	)		(212	)
Non-current	$	338		$	440

(a) Note payable-EID loan

During Fiscal 2021, the Company received a $150 loan under the United States Small Business Administration (“SBA”) Economic Injury Disaster Loan (“EID Loan”) program. The loan is due July 1, 2050, interest accrues at 3.75% per annum and is secured by the assets of the Company.

(b) Notes payable-vehicle and equipment

During Fiscal 2022, the Company issued two notes payable to purchase equipment and a vehicle for $288. The notes are secured by the equipment and vehicle purchased. The first note with the original principal of $210 was paid in full in October 2024. The second note with original principal of $78 is due January 20, 2027, and requires 72 equal monthly payments of approximately $1.5, including interest at 10.9% interest per annum.

 (c) Note payable-software license

During Fiscal 2024, the Company obtained a loan of $150 from a financing institution to finance the use of a third-party software license by the Company. The note payable is secured by tangible and intangible assets of the Company, bears interest at an average rate of 8% per annum and will mature in September 2026.

During Fiscal 2025, the Company obtained a loan of $179 from a financing institution to finance the use of a third-party software license by the Company. The note payable is secured by tangible and intangible assets of the Company, bears interest at an average rate of 14.41% per annum and will mature in November 2025.

The aggregate total of the note payable-software licenses as of August 31, 2025, amounted to $79.

(d) Notes payable – machinery and other equipment

During Fiscal 2025, the Company obtained a loan of $274 from a financing institution to finance the purchase of a production machine. The note payable is secured by the production machine and will mature in April 2029. As of August 31, 2025, the outstanding balance of the note payable amounted to $213.

(e) Note payable-other

As of August 31, 2025, and February 28, 2025, the Company has one note payable due to an individual issued in September 2015 that is payable on demand with an interest rate of 10% per annum.