NOTE 4 - NOTES PAYABLE - RELATED PARTY

9 Months Ended

Nov. 30, 2019

Notes Payable [Abstract]

NOTE 4 - NOTES PAYABLE - RELATED PARTY

Notes payable include 12% unsecured notes payable to the Company’s principal stockholder, Magna Acquisition LLC (“MALLC”) in the aggregate principal amount of approximately $687,000, plus approximately $675,000 of interest accrued. In addition, notes payable include 10% unsecured notes payable to a director of the Company (who is also a manager of MALLC) in the aggregate principal amount of approximately $17,000, plus approximately $1,000 of interest accrued. All of such notes become due 120 days after issuance and, as such, approximately $687,000 principal amount of the MALLC notes, and approximately $14,000 of the director notes, are overdue at November 30, 2019. The notes that are overdue bear interest at 15% per year for the MALLC notes, and at 12% per year for the director notes, subsequent to their maturity date.

The Company intends to make a proposal to this principal stockholder and to this director to convert all amounts outstanding to them (including overdue amounts) into common stock of the Company.