Derivative Liability

6 Months Ended

Aug. 31, 2025

Derivative Liability [Abstract]

DERIVATIVE LIABILITY

NOTE 8 – DERIVATIVE LIABILITY

In March 2024, pursuant to the amendment of the Kopple note payable (see Note 3), the Company granted Kopple the right to convert the amended note payable into equity of the Company at a conversion price equal to the lower of $1.00 per share or 50% of the 10 day volume-weighted average price per share of the Company’s common stock. The Company analyzed the conversion option for derivative accounting consideration under ASC 815, Derivatives and Hedging, and determined that the conversion option should be classified as a derivative liability since it does not have an explicit limit to the number of shares to be delivered upon settlement of the conversion option. The derivative liability is remeasured to fair value at each reporting period, and the change in the fair value is recognized in earnings in the accompanying statements of operations. The Company estimated the fair value of the conversion option derivative liability using a Black-Scholes option pricing model. The fair value of the derivative liability at August 31, 2025 and February 28, 2025 was $22,316 and $17,565, respectively.

The following tables summarize the derivative liability:

(amounts in thousands, except share and per share data)	August 31, 2025			February 28, 2025
Stock price	$	0.27		$	0.34
Risk free interest rate		3.59	%		4.01	%
Expected volatility		167	%		173	%
Expected life in years		2.00			4.33
Expected dividend yield		0	%		0	%
Number of common stock issuable		98,379,325			54,128,933
Fair value of derivative liability	$	22,316		$	17,565