What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-07-17 compared with 2024-05-29 · 88 added, 111 removed, 220 unchanged (47% of the section changed)

18 unchanged sentences

below are not necessarily indicative of the results that may be expected for any future period.

February 29, 2024

February 28, 2023

Operating expenses

2 unchanged sentences

(13,946,873 )

Other income (expense), net

$ (20,708,716 )

Other income (expense),

$ (14,510,251 )

1 unchanged sentence

following table presents revenues from contracts with customers disaggregated by product/service:

February 29, 2024

February 28, 2023

Device rental activities

Direct sales of goods and services

revenue for the year ended February 29, 2024 was $2,227,559, which represented an increase of $895,603 compared to total revenue of $1,331,956

for the year ended February 28, 2023.

Rental activities increased by $872,071 or 116%, as the Company continues to grow its product line

and customer base.

Direct sales grew by 4% driven by higher training revenue for the year ended February 29, 2024.

Direct sales of goods

revenue for the year ended February 28, 2026, was $7,745,336, which represented an increase of $1,614,450 or 26% compared to total revenue

of $6,130,886 for the year ended February 28, 2025.

Rental activities increased by $1,870,081 or 37%, as the Company continues to grow

its product line and customer base.

Direct sales were $255,631 or 24% lower than the prior year because most customers chose the Company’s

rental model.

gross profit for the year ended February 28, 2026 was $5,533,700, which represented an increase of $1,789,136, compared to total gross

1 unchanged sentence

The increase is a result of the increase in revenues above, and gross profit

% which was 49% for the year ended February 29, 2024 was also 49% for the prior year.

The Gross profit % was stable as the increase in

higher margin rental activities in the product mix, and overhead being allocated over a higher sales base was offset by a higher inventory

provision for the permanent impairment in value of two products that the Company will not be continuing.in their current form

% which was 71% for the year ended February 28, 2026 was 61% for the prior year.

The gross profit % increased as the increase in higher

margin rental activities in the product mix, and overhead being allocated over a higher sales base.

expenses for the years ended February 28, 2026 and February 28, 2025 comprised of the following:

February 29, 2024

February 28, 2023

Research and development

1 unchanged sentence

Depreciation and amortization

Impairment on revenue earning devices

Operating lease cost and rent

(Gain) loss on disposal of fixed assets

Loss on disposal of fixed

Operating expenses

operating expenses were comprised of general and administrative expenses, research and development, depreciation and amortization,

operating lease and rent and a (gain) loss on disposal of fixed assets.

General and administrative expenses consisted primarily of

professional services, automobile expenses, advertising, salaries and wages, travel expenses and rent.

Our operating expenses during

the years ended February 29, 2024 and February 28, 2023 were $15,085,869 and $13,344,563, respectively.

The overall $1,741,206

increase in operating expenses was primarily attributable to the following changes in operating expenses:

and development expenses decreased by $747,334 as the Company focused on current product development and spent less money on longer

term projects.

and administrative expenses increased by $1,544,822 primarily due to the following changes:

operating expenses were comprised of general and administrative expenses, research and development, depreciation and amortization, operating

lease and rent and a loss on disposal of fixed assets.

General and administrative expenses consisted primarily of professional services,

automobile expenses, advertising, salaries and wages, travel expenses and rent.

Our operating expenses during the years ended February

28, 2026 and February 28, 2025 were $17,477,097 and $17,691,437, respectively.

The overall $214,340 decrease in operating expenses was

primarily attributable to the following changes in operating expenses:

and development expenses increased by $665,597 as the Company continued to focus on current product development , new software solutions

and improvements.

and administrative expenses decreased by $625,313 primarily due to the following changes:

is a summary of account decreases:

the year ended February 28, 2026 stock based compensation to CEO in equity awards was $1,500,000 with a charge of $315,848 for the

Employee Stock Option Plan (ESOP) all totaling $1,793,599 compare with stock based compensation to CEO in equity awards was $499,500

with $118,500 fees paid to consultants and a charge of $ 122,050 for the ESOP all totaling $740,050 for the year ended February 28,

This represents an increase of $1,053,549 in stock based compensation.

The stock based compensation for the CEO is payable

in Series G and has been deferred until after a year.

salaries and payroll levies for the CEO increased by $731,447 in discretionary bonus charged, $537,747 of which is deferred compensation

and will not be paid out this year.

salaries and payroll levies for the staff decreased by $218,382 due to staff reductions early in the fiscal year.

fees decreased by $117,726 due to decreases in financial reporting and consulting costs.

expense increased by $74,476.

duty and brokerage increased by $154,172 due to higher purchases in 2024.

and marketing costs decreased by $179,742 as the Company reduced its promotion efforts.

debts expense decreased by $139,989 due to write off of uncollectible accounts in the prior year.

increased slightly by $11,102.

shows and travel decreased by $111,752 as a result of less promotional and business travel in fiscal 2024.

remaining increases were distributed amongst other general and administrative accounts such as website design warehouse expense,

repairs and maintenance, and utilities amongst others.

lease cost and rent increased by $135.There was a new vehicle lease and a lease for premises that expired during the current fiscal

and amortization increased by $375,932 due to the increase in revenue earning devices and demo devices, computer equipment, tooling

,leasehold improvements and manufacturing equipment in fixed assets.

loss on disposal of fixed assets increased by $16,426 due to a vehicle disposal in 2024 that yielded a gain.

on revenue earning devices was $584,177 for the year ending February 29,2024 due to the discontinuance of two products in their present

There was no such impairment in the prior year’s period

Employee Stock Option Plan (ESOP) all totaling $1,815,848 compared with stock based compensation to CEO in equity awards was $$1,500,000

and a charge of $331,685 for the ESOP all totaling $$1,831,685 for the year ended February 28, 2025.

This represents an decrease

of $15,837 in stock based compensation.

The stock based compensation for the CEO is payable in Series G and has been deferred until

after a year.

salaries and payroll levies for the CEO decreased by $1,388,989 which is explained by a $1,500,000 decrease in discretionary bonus

charged, all of which was deferred compensation offset by a $100,000 increase in base salary increased and an $11,011 increase in

payroll levies.

fees decreased by $125,716 due to lower legal fees because of litigation in the prior year that has been resolved with no litigation in the current year.

decreases are partially offset by the following increases:

salaries and payroll levies for the staff increased by $91,609 due to staff increases (2).

increased by $198,781 due to higher revenues.

expense increased by $184,084 due to an increase in computer software purchases.

costs increased by $100,670 due to higher general and liability insurance costs.

increased by $76,119 due to more overseas travel to explore and find lower cost suppliers.

costs l increased by $79,102 due to higher revenues.

costs increased by $51,449 to promote new products.

and subscriptions increased by $28,180 for new software subscriptions.

debts expense increased by $54,723.

remaining increases and offsetting decreases were distributed amongst other general and administrative accounts.

lease cost and rent increased by $11,152.

These are due to new short -term leases in the current year.

and amortization decreased by $288,088 due to a change in allocation , based on experience for revenue earning devices used.

on disposal of fixed assets was $22,312 in the current year as older equipment was disposed of.

income (expense)

income (expense) consisted of the change of fair value of derivative instruments interest expense and gain on settlement of debt.

income (expense) during the years ended February 29, 2024 and February 28, 2023, was ($6,719,304) and ($5,418,777), respectively.

income (expense) consisted of interest expense and gain on settlement of debt.

Other income (expense) during the years ended February

28, 2025 and February 29, 2024, was ($2,566,584) and ($4,988,719), respectively.

change in other income (expense) was due to the following:

in fair value of derivative liabilities decreased by $3,595 due to the re-valuation of derivative liability on convertible notes

that were converted or settled during the prior year ended February 28, 2023.

At both February29, 2024 and February 28, 2023 there

was no longer any convertible debt.

expense increased by $1,331,580.

Amortization of debt discounts for the year ended February 29, 2024 of $2,384,163 compared with

$1,980,033 for the year ended February 28, 2023.

Interest expense was $4,011,681 for the year ended February 29, 2024 compared with

expense increased by $544,558 due to the following :

Amortization of debt discounts increased by $264,835, and for the year ended

February 28, 2026 was $536,070 compared with $271,235 for the year ended February 28, 2025.

This increase was due to the amortization

of new note discounts..

Interest expense was $4,147,535 for the year ended February 28, 2026, compared with $4,188,866 for the year

ended February 28, 2025.

This $41,331 decrease was due to the settlement of a $3.7 million loan which offset new interest on new

Deferred variable payment obligation (DVPO) expense was $1,260,469 for the year ended February 28, 2026, compared with $996,881

for the year ended February 28, 2025.

Deferred variable payment obligation (DVPO) expense was $362,200 for the year

ended February 29,2024 compared with $216,577 for the year ended February 28, 2023.

Interest and debt amortization were both higher

during the current year due to approximately $2 million in new debt.

on settlement of debt increased by $34,788 due to a settlement in accounts payable during the current fiscal year.

Company’s loss from operations for the year ended February 29, 2024 was $13,989,412 which represented an increase in loss of $1,298,732

This $263,588 increase was a result of the increase in revenues.

on settlement of debt increased by $2,999,423 to a gain on settlement of a $3.7 million loan offset by a loss on settlement of accrued

interest during the current year.

Company’s loss from operations for the year ended February 28, 2026 was $11,943,397 which represented a decrease in loss of $2,003,476

compared to a loss of $13,946,873 for the year ended February 28, 2025.

The higher revenues and gross profit in 2024 were offset by higher

operating expenses for the reasons set out above.

The higher revenues and gross profit in 2026 along with the decrease

in operating expenses contributed to this change.

Note that the Company had a net loss of $14,510,251 for the year ended February 28,

2026, as compared to net loss of $18,935,592 for the year ended February 28, 2025.

This change is mostly attributable to an increase

in other expense and an increase in general and administrative costs.

This $4,425,341 change is mostly attributable to a

the lower loss from operations and gain on settlement of debt.

accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.

19 unchanged sentences

raised nor can we provide assurance that these possible raises may not have dilutive effects.

In March 2023, the Company entered into

an equity financing agreement whereby an investor will purchase up to $30,000,000 of the Company’s common stock at a discount over

In May 2026, the Company entered into an

equity financing agreement whereby an investor will purchase up to $10,000,000 of the Company’s common stock at a discount over

a two-year period.

3 unchanged sentences

growing revenues ,through equity proceeds,

and issuing non-convertible debt.

Management has had many recent conversations with the Company’s primary debt holder and believes

that the non-convertible debt on the balance sheet will be extended.

Management notes that non-convertible debt on the books has been

extended by this debt holder twice in the past and notes that this debt holder has been a strong supporter of the Company.

and issuing debt.

following table summarizes total current assets, liabilities and working capital for the period indicated:

February 29, 2024

February 28, 2023

Current assets

5 unchanged sentences

of Cash Flows

February 29, 2024

February 28, 2023

Net cash used in operating activities

3 unchanged sentences

Net cash provided by financing activities

cash used in operating activities for the year ended February 29, 2024 was $12,951,753, which included a net loss of $20,708,716,

non-cash activity such as the gain on settlement of debt of ($16,426), amortization of debt discount of $2,384,163, stock based

compensation of $1,793,599, reduction in right of use asset $120,131, accretion of lease liability $130,020, increase in related

party accrued payroll and interest $105,101, inventory provision of $437,820, impairment on revenue earning devices for $584,177,

bad debts expense $42,892, depreciation and amortization of $854,047 and change in operating assets and liabilities of

cash used in operating activities for the year ended February 28, 2026 was $9,344,534, which included a net loss of $14,510,251, non-cash

activity such as the gain on settlement of debt of $3,434,685, amortization of debt discount of $536,078, penalty added to the face value

of loan of $24,510, stock based compensation of $1,815,848, reduction in right of use asset $141,217, accretion of lease liability $103,956,

increase in related party accrued payroll and interest $132,268, inventory recovery of ($290,000), loss on disposal of revenue earning

devices and fixed assets of $93,249, bad debts expense $138,405, depreciation and amortization of $2,122,730 and change in operating

assets and liabilities of $3,782,141.

cash provided by (used in) investing activities.

cash provided by investing activities for the year ended February 29, 2024 was $4,194.

This consisted of the purchase of fixed assets

of ($22,165), proceeds of disposal of fixed asset of $21,000 and reimbursement of security deposit of $5,359.

cash used in investing activities for the year ended February 28, 2026 was $12,861.

This consisted of the purchase of fixed assets of

($10,863), purchase of trademarks of ($1,998).

cash provided by (used in) financing activities.

1 unchanged sentence

This consisted of share proceeds net of issuance

costs of $10,825,895 and proceeds from loans payable $1,750,000 offset by repayments of loans payable of $408,000 and net repayments

on loan payable-related party of $54,179, respectively.

costs of $5,219,853, and proceeds from loans payable $4.808,171 offset by repayments of loans payable of $1,302,561 and redemption of

Series C Preferred Shares of ($125,000).

Sheet Arrangements

11 unchanged sentences

The most significant estimates included in these consolidated financial statements are those associated with the assumptions

used to value derivative liabilities.

used to value equity instruments used in debt settlements, amendments and extensions.

Earning Devices

18 unchanged sentences

Leasehold improvements

5 years, the life of the lease

5 years, the life of the

Company periodically evaluates the fair value of fixed assets whenever events or changes in circumstances indicate that its carrying

81 unchanged sentences

fair value hierarchy within which those measurements fell:

Fair Value Measurement Using

Value Measurement Using

February 28, 2026

Incentive compensation plan payable – revaluation of equity awards payable in Series G shares

compensation plan payable – revaluation of equity awards payable in Series G shares

February 28, 2025

Incentive compensation plan payable – revaluation of equity awards payable in Series G shares

compensation plan payable – revaluation of equity awards payable in Series G shares

carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, prepaid expenses and advances,

14 unchanged sentences

nature with regards to earnings per share.

Issued Accounting Pronouncements

September 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses .

ASU 2016-13 was issued to provide more decision-useful

information about the expected credit losses on financial instruments and changes the loss impairment methodology.

ASU 2016-13 is effective

for reporting periods beginning after December 15, 2019 using a modified retrospective adoption method.

A prospective transition approach

is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date.

did not materially impact our consolidated net loss, accumulated deficit, and had no impact on cash flows.

The Company has adopted this

on March 1, 2020.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K/A

Item 7. Management’s Discussion and Analysis