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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended
May 31
, 2024
 
or
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from ____to ___.
 
333-212447
Commission File Number
 
UPAY, Inc.
(Exact name of small business issuer as specified in its charter)
 
NEVADA
 
37-1793622
(State or other jurisdiction of incorporation or
organization)
 
(I.R.S. Employer Identification No.)
 
3010 LBJ Freeway, 12
th
Floor
Dallas, Texas 75234
(Address of principal executive offices)
 
(972) 888-6052
(Company’s telephone number, including area code)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes 
x
  No  
¨
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes 
x
  No 
¨
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
 
Large accelerated filer
¨
Accelerated filer
¨
 
Non-accelerated filer
¨
Smaller reporting company
x
 
Emerging Growth Company
x
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
¨
  No 
x
 
The Company has
15,708,544
shares outstanding as of July
15
, 2024.

 
 

UPAY, Inc.
Consolidated Financial Statements
(unaudited)
 

Index


Table of Contents

 
 
 
 
 
 
 
 
 
 


F-2
 
UPAY, INC.
Consolidated Balance Sheets
(Expressed in U.S. dollars)
 
 
 
 
May 31,
2024
 
 
 
 
February 29,
2024
 
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
231,196
 
 
$
642,846
 
Accounts receivable, net of allowance
 
 
46,681
 
 
 
73,395
 
Prepaid expenses and other current assets
 
 
12,939
 
 
 
2,884
 
 
 
 
 
 
 
 
 
 
Total Current Assets
 
 
290,816
 
 
 
719,125
 
 
 
 
 
 
 
 
 
 
Property and Equipment, Net (Note 3)
 
 
21,164
 
 
 
22,638
 
Right-of-use Assets, Net (Note 4)
 
 
13,584
 
 
 
18,169
 
Deposit (Note 11)
 
 
10,608
 
 
 
10,408
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
336,172
 
 
$
770,340
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
201,275
 
 
$
572,904
 
Due to related parties (Note 5)
 
 
61,138
 
 
 
54,774
 
Current portion of lease liabilities (Note 7)
 
 
13,584
 
 
 
18,169
 
Current portion of notes payable (Note 6)
 
 
52,143
 
 
 
52,143
 
Notes payable – Related parties (Note 5)
 
 
251,000
 
 
 
251,000
 
 
 
 
 
 
 
 
 
 
Total Current Liabilities
 
 
579,140
 
 
 
948,990
 
 
 
 
 
 
 
 
 
 
Non-Current Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes Payable (Note 6)
 
 
76,157
 
 
 
76,157
 
 
 
 
 
 
 
 
 
 
Total Liabilities
 
 
655,297
 
 
 
1,025,147
 
 
 
 
 
 
 
 
 
 
Stockholders’
Deficit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock, $0.001 par value, 10,000,000 shares authorized;
   no shares issued and outstanding
 
 
 
 
–
 
 
 
–
 
Common Stock, $0.001 par value, 100,000,000 shares authorized;
   15,708,544 shares issued and outstanding
 
 
 
 
15,708
 
 
 
15,708
 
Common Stock Issuable
 
 
396,663
 
 
 
313,331
 
Additional Paid-in Capital
 
 
1,116,590
 
 
 
1,116,590
 
Accumulated Deficit
 
 
(1,773,866
)
 
 
(1,623,189
)
Accumulated Other Comprehensive Loss
 
 
(74,220
)
 
 
(77,247
)
 
 
 
 
 
 
 
 
 
Total Stockholders’ Deficit
 
 
(319,125
)
 
 
(254,807
)
 
 
 
 
 
 
 
 
 
Total Liabilities and Stockholders’ Deficit
 
$
336,172
 
 
$
770,340
 
 
The accompanying notes are an integral part of these consolidated financial statements.

 
F-3
 
UPAY, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Expressed in U.S. dollars)
(unaudited)
 
 
 
 
 
 
 
 
 
 
Three months
 
 
Three months
 
 
 
Ended
 
 
Ended
 
 
 
May 31,
 
 
May 31,
 
 
 
2024
 
 
2023
 
 
 
 
 
 
 
 
Revenue
 
$
257,249
 
 
$
332,576
 
Cost of Revenue
 
 
(134,333
)
 
 
(159,136
)
 
 
 
 
 
 
 
 
 
Gross Profit
 
 
122,916
 
 
 
173,440
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of right-of-use assets (Note 4)
 
 
–
 
 
 
888
 
Depreciation (Note 3)
 
 
1,904
 
 
 
9,719
 
General and administrative
 
 
265,010
 
 
 
188,898
 
 
 
 
 
 
 
 
 
 
Total Expenses
 
 
266,914
 
 
 
199,505
 
 
 
 
 
 
 
 
 
 
Loss Before Other Income (Expenses) and Income Taxes
 
 
(143,998
)
 
 
(26,065
)
 
 
 
 
 
 
 
 
 
Other Income (Expenses)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
1,857
 
 
 
1,113
 
Interest expense
 
 
(8,536
)
 
 
(8,320
)
Gain on settlement of lease (Note 7)
 
 
–
 
 
 
1,052
 
 
 
 
 
 
 
 
 
 
Loss Before Income Taxes
 
 
(150,677
)
 
 
(32,220
)
 
 
 
 
 
 
 
 
 
Provision for income taxes
 
 
–
 
 
 
–
 
 
 
 
 
 
 
 
 
 
Net Loss
 
 
(150,677
)
 
 
(32,220
)
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
3,027
 
 
 
(8,552
)
 
 
 
 
 
 
 
 
 
Comprehensive Loss
 
$
(147,650
)
 
$
(40,772
)
 
 
 
 
 
 
 
 
 
Net Loss Per Share – Basic and Diluted
 
$
(0.01
)
 
$
(0.00
)
Weighted-average Common Shares Outstanding – Basic and Diluted
 
 
16,108,540
 
 
 
17,190,211
 
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.

 
F-4
 
 
UPAY, Inc.
Consolidated Statement of Stockholders’ Deficit and Accumulated Other Comprehensive Loss
(Expressed in U.S. dollars)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated
 
 
 
 
 
 
 
 
 
 
 
 
Additional
 
 
Common
 
 
 
 
 
Other
 
 
 
 
 
 
Common Stock
 
 
Paid-in
 
 
Stock
 
 
Accumulated
 
 
Comprehensive
 
 
 
 
 
 
Shares
 
 
Amount
 
 
Capital
 
 
Issuable
 
 
Deficit
 
 
Loss
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance – February 28, 2023
 
 
17,190,211
 
 
$
17,190
 
 
$
535,275
 
 
$
13,334
 
 
$
(886,998
)
 
$
(60,828
)
 
$
(382,027
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock issuable for services
 
 
–
 
 
 
–
 
 
 
–
 
 
 
20,000
 
 
 
–
 
 
 
–
 
 
 
20,000
 
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock subscribed
 
 
–
 
 
 
–
 
 
 
–
 
 
 
10,000
 
 
 
–
 
 
 
–
 
 
 
10,000
 
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(32,220
)
 
 
–
 
 
 
(32,220
)
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(8,552
)
 
 
(8,552
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance – May 31, 2023
 
 
17,190,211
 
 
$
17,190
 
 
$
535,275
 
 
$
43,334
 
 
$
(919,218
)
 
$
(69,380
)
 
$
(392,799
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance – February 29, 2024
 
 
15,708,544
 
 
$
15,708
 
 
$
1,116,590
 
 
$
313,331
 
 
$
(1,623,189
)
 
$
(77,247
)
 
$
(254,807
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock issuable for services
 
 
–
 
 
 
–
 
 
 
–
 
 
 
83,332
 
 
 
–
 
 
 
–
 
 
 
83,332
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(150,677
)
 
 
–
 
 
 
(150,677
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
3,027
 
 
 
3,027
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance – May 31, 2024
 
 
15,708,544
 
 
$
15,708
 
 
$
1,116,590
 
 
$
396,663
 
 
$
(1,773,866
)
 
$
(74,220
)
 
$
(319,125
)
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
F-5

UPAY, Inc.
Consolidated Statements of Cash Flows
(Expressed in U.S. dollars)
(unaudited)
 
 
 
 
Three Months
Ended
May 31,
2024
 
 
 
 
 
 
 
 
Three Months
Ended
May 31,
2023
 
 
 
 
 
 
 
 
 
 
 
Cash Flows from Operating Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Loss
 
$
(150,677
)
 
$
(32,220
)
 
 
 
 
 
 
 
 
 
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Amortization of right-of-use assets
 
 
–
 
 
 
888
 
Common stock issued or issuable for services
 
 
83,332
 
 
 
20,000
 
Depreciation
 
 
1,904
 
 
 
9,719
 
Gain on settlement of lease
 
 
–
 
 
 
(1,052
)
Interest expense on lease liability
 
 
–
 
 
 
67
 
 
 
 
 
 
 
 
 
 
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Accounts receivable
 
 
28,332
 
 
 
13,237
 
Prepaid expenses and other current assets
 
 
(10,000
)
 
 
–
 
Deposits
 
 
–
 
 
 
32,402
 
Accounts payable and accrued liabilities
 
 
(384,985
)
 
 
(183,411
)
Accounts payable – related party
 
 
6,364
 
 
 
6,326
 
 
 
 
 
 
 
 
 
 
Net Cash Used in Operating Activities
 
 
(425,730
)
 
 
(134,044
)
 
 
 
 
 
 
 
 
 
Cash Flows from Investing Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of property and equipment
 
 
–
 
 
 
(23,171
)
 
 
 
 
 
 
 
 
 
Net Cash Used in Investing Activities
 
 
–
 
 
 
(23,171
)
 
 
 
 
 
 
 
 
 
Cash Flows from Financing Activities
 
 
–
 
 
 
–
 
 
 
 
 
 
 
 
 
 
Proceeds from common stock subscriptions
 
 
–
 
 
 
10,000
 
Proceeds from shareholder promissory note
 
 
–
 
 
 
4,000
 
Repayment of lease liabilities
 
 
–
 
 
 
(1,021
)
 
 
 
 
 
 
 
 
 
Net Cash Provided by Financing Activities
 
 
–
 
 
 
12,979
 
 
 
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash
 
 
14,080
 
 
 
(36,646
)
 
 
 
 
 
 
 
 
 
Change in Cash and Cash Equivalents
 
 
(411,650
)
 
 
(180,882
)
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents - Beginning of Period
 
 
642,846
 
 
 
662,991
 
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents - End of Period
 
$
231,196
 
 
$
482,109
 
 
 
 
 
 
 
 
 
 
Supplemental Disclosures of Cash Flow Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest paid
 
$
8,536
 
 
$
8,320
 
Income taxes paid
 
$
–
 
 
$
–
 
 

The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
F-6

UPAY, Inc.
Notes to the Consolidated Financial Statements (unaudited)

1
.
Nature of Operations and Continuance of Business
 
UPAY, Inc. (the “Company”) was incorporated in the State of Nevada on July 8, 2015. By a Share Exchange Agreement dated November 4, 2015, the Company agreed to acquire all of the issued and outstanding shares of Rent Pay (Pty) Ltd (“Rent Pay”), in exchange for 200,000 shares of the Company’s common stock.  The acquisition is a capital transaction in substance and therefore has been accounted for as a recapitalization. Rent Pay was incorporated in South Africa on February 1, 2012. Because Rent Pay is deemed to be the acquirer for accounting purposes, the consolidated financial statements are presented as a continuation of Rent Pay and include the results of operations of Rent Pay since incorporation on February 1, 2012, and the results of operations of the Company since the date of acquisition on November 4, 2015. On March 2, 2022, the Company acquired a controlling interest in Miway Finance Inc. (“Miway”), which was determined to be a transaction between entities under common control. On May 30, 2023, the Company incorporated a wholly-owned subsidiary, taking a controlling interest in Huntpal LLC (“Huntpal”). On May 28, 2024, the Company acquired a controlling interest in AML Go (Pty) Ltd (“AML”) which was incorporated on July 3, 2023. AML was determined to be an entity under common control, and the transaction was considered immaterial due to the nominal assets and liabilities at the time of acquisition.
 
Rent Pay operates principally in South Africa and engages in software development and licensing and provides services to the credit provider industry.
 
2.
Summary of Significant Accounting Policies
 
a)
Basis of Presentation
 
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S. dollars. The Company’s fiscal year end is February 28. The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiary, Rent Pay, and its controlled subsidiaries, Miway, Huntpal, and AML. The Company owns 48% of Miway, and 51% of both Huntpal and AML. All significant intercompany transactions and accounts have been eliminated in consolidation.
 
b)
Interim Financial Statements
 
The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end February 29, 2024, have been omitted.
 
c)
Use of Estimates
 
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to useful life and recoverability of long-lived assets, and deferred income tax asset valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
 
d)
Going Concern
 
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of May 31, 2024, the Company does not have revenues sufficient to execute its business plan. The Company intends to fund operations through equity financing arrangements. There is no assurance that this will be successful. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
 
e)
Recent Accounting Pronouncements
 
The Company has implemented all new accounting pronouncements that are in effect and that may impact its unaudited consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
F-7

3.
Property and Equipment, Net

Property and equipment, net, consists of the following:
 
 
 
Cost
 
 
Accumulated
Depreciation
 
 
 
 
May 31,
2024
Net Carrying Value
 
 
 
 
 
 
February 29,
2024
Net Carrying Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Computer equipment
 
$
13,906
 
 
$
(10,276
)
 
$
3,630
 
 
$
4,186
 
Computer software
 
 
206,000
 
 
 
(205,755
)
 
 
245
 
 
 
325
 
Furniture and fixtures
 
 
9,787
 
 
 
(7,823
)
 
 
1,964
 
 
 
2,074
 
Motor vehicle
 
 
19,094
 
 
 
(4,338
)
 
 
14,756
 
 
 
15,414
 
Office equipment
 
 
4,212
 
 
 
(3,643
)
 
 
569
 
 
 
639
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
252,999
 
 
$
(231,835
)
 
$
21,164
 
 
$
22,638
 

During the three months ended May 31, 2024, the Company recorded depreciation expense of $1,904 (2023
–
$9,719). During the three months ended May 31, 2024, the Company acquired $nil (2023
–
$1,182) of computer equipment and $nil (2023
–
$21,991) of motor vehicles.
 
4.
Right-Of-Use Assets, Net
 
Right-of-use assets, net, consist of the following:
 
 
 
Cost
 
 
Accumulated
Amortization
 
 
May 31,
2024
Net Carrying
Value
 
 
 
 
 
 
 
 
February 29,
2024
Net Carrying
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Right-of-use building (operating lease)
 
$
60,711
 
 
$
(47,127
)
 
$
13,584
 
 
$
18,169
 
Right-of-use vehicles (finance lease)
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
60,711
 
 
$
(47,127
)
 
$
13,584
 
 
$
18,169
 

During the three months ended May 31, 2024, the Company recorded rent expense of $5,268 (2023 - $5,022) related to Company’s right-of-use building and amortization expense of $nil (2023 - $888) related to the Company’s right-of-use vehicles. During the year ended February 29, 2024, the Company settled a lease obligation on a right-of-use vehicle with a carrying value of $1,894 and a remaining lease liability of $2,936, which resulted in a gain on settlement of lease of $1,042.
 

5.
Due to Related Parties

a)
On March 24, 2021, the Company entered into a promissory note with the Chief Executive Officer (“CEO”) of
the
Company for $10,000, which is unsecured, bears interest of 10% per annum and matured on March 24, 2022. As at
May 31, 2024
, the outstanding principal is $10,000 (
February 29, 2024
– $10,000) and the Company has recognized accrued interest of $3,253 (
February 29, 2024
– $2,963), which is included in due to related parties. 

b)
On September 7, 2021, the Company entered into a promissory note with the CEO of the Company for $10,000, which is unsecured, bears interest of 10% per annum and matured on March 7, 2022. As at
May 31, 2024
, the outstanding principal is $10,000 (
February 29, 2024
– $10,000) and the Company has recognized accrued interest of $2,732 (
February 29, 2024
– $2,479) which is included in due to related parties.

c)
On February 11, 2022, the Company entered into a promissory note with the CEO of the Company for $20,000, which is unsecured, bears interest of
10
% per annum and matured on February 11, 2023. As at
May 31, 2024
, the outstanding principal is $
20,000
(
February 29, 2024
– $
20,000
) and the Company has recognized accrued interest of $
4,603
(
February 29, 2024
– $
4,099
), which is included in due to related parties.

d)
On April 14, 2021, the Company entered into a promissory note with a company controlled by a significant shareholder of the Company for $
26,000
, which is unsecured, bears interest of
10
% per annum and matured on
October 13, 2023
. As at
May 31, 2024
, the outstanding principal is $
26,000
(
February 29, 2024
– $
26,000
) and the Company has recognized accrued interest of $
8,142
(
February 29, 2024
– $
7,487
), which is included in due to related parties.

e)
On February 11, 2022, the Company entered into a promissory note with a company controlled by a significant shareholder of the Company for $
130,000
, which is unsecured, bears interest of
10
% per annum and matures on
February 11, 2023
. As at
May 31, 2024
, the outstanding principal is $
130,000
(
February 29, 2024
– $
130,000
) and the Company has recognized accrued interest of $
29,918
(
February 29, 2024
– $
26,641
), which is included in due to related parties.

The accompanying notes are an integral part of these unaudited consolidated financial statements.
 

F-8
 
f)
During the year ended February 28, 2022, a third-party lender purchased a promissory note from a company controlled by a significant shareholder of the Company in the amount of $
15,000
, which is unsecured, bears interest of
10
% per annum and matured on
October 13, 2023
. As at
May 31, 2024
, the outstanding principal is $
15,000
(
February 29, 2024
– $
15,000
) and the Company has recognized accrued interest of $
4,697
(
February 29, 2024
– $
4,319
), which is included in due to related parties.
 
g)
On May 2, 2022, the Company entered into a promissory note with a company controlled by a significant shareholder of the Company for $
25,000
, which is unsecured, bears interest of
10
% per annum and matured on March 2, 2023. As at
May 31, 2024
, the outstanding principal is $
25,000
(
February 29, 2024
– $
25,000
) and the Company has recognized accrued interest of $
5,205
(
February 29, 2024
– $
4,575
), which is included in due to related parties.
 
h)
On September 9, 2022, the Company entered into a promissory note with a company controlled by a significant shareholder of the Company for $
15,000
, which is unsecured, bears interest of
10
% per annum and matured on September 9, 2023. As at
May 31, 2024
, the outstanding principal is $
15,000
(
February 29,
2024
– $
15,000
) and the Company has recognized accrued interest of $
2,589
(February 29, 2024
– $
2,211
), which is included in due to related parties.
 
i)
During the three months ended May 31
, 2024
, the Company incurred salary expenses of $
26,357
(R
493,258
) (
2023
–
$
30,870
(R
571,629
)
) to the CEO of the Company.
 
j)
During the three months ended May 31
, 2024
, the Company incurred directors’ fees of
25,000
(2023 – $
20,000
) to a Director of the Company pursuant to a Director Agreement (Note 10(b)).
 
k)
During the three months ended May 31
, 2024
, the Company incurred directors’ fees of $
1,202
(
R
22,500
) (2023 – $
nil
) to a Director of the Company.
 
l)
During the three months ended May 31
, 2024
, the Company incurred management fees of $
58,332
(2023 - $
nil
) to the Chief Operating Officer (“COO”) and Director of the Company pursuant to a Director and Officer Agreement (Note 10(c)).
 
6.
Notes Payable
 
a)
On May 20, 2020, the Company entered into a promissory note with a third-party lender for $25,000, which is unsecured, bears interest of 10% per annum and matured on May 20, 2023. As at
May 31, 2024
, the Company has recognized accrued interest of $10,082 (
February 29, 2024
–
$
9,452), which is included in accounts payable and accrued liabilities.
 
b)
On May 27, 2020, the Company entered into a promissory note with the U.S. Small Business Administration for $77,800, which is secured by the assets of the Company, bears interest of 3.75% per annum and matures on May 27, 2050. Instalment payments, including principal and interest, of $380 per month will begin 12 months from the date of the promissory note. As at May 31, 2024, the Company has recognized accrued interest of $10,930 (
February 29, 2024
– $10,195), which is included in accounts payable and accrued liabilities.
 
c)
On October 22, 2021, the Company entered into a promissory note with a third-party lender for $25,500, which is unsecured, bears interest of 10% per annum and matured on
October 13, 2023
. As at
May 31, 2024
, the Company has recognized accrued interest of $6,651
(
February 29, 2024
–
$6,008), which is
included in accounts payable and accrued liabilities.
 
7.
Lease Liabilities
 
The Company commenced the leasing of a motor vehicle on October 10, 2018, for a term of five years. The monthly minimum lease payments were $505 (R9,456). The motor vehicle lease was classified as a finance lease. The interest rate underlying the obligation in the lease was 11.25% per annum. During the three months ended May 31, 2024, the Company paid a total of $nil (2023 - $1,021) in principal and interest payments on the motor vehicle lease.
 
On May 10, 2023, the Company settled the motor vehicle finance leases for a settlement fee of $2,549 (R47,204) resulting in a gain on settlement of $1,052 (R19,480). Upon the payment of the settlement fee, the vehicle title was transferred immediately to the Company and has been allocated to the Company’s property and equipment to be depreciated over the remainder of its useful life.
 
On February 1, 2021, the Company entered a two-year lease with a renewal option for office space in South Africa. The term of the renewal agreement is for an additional two years and commenced on February 1, 2023. Rental payments are due at the beginning of each month and increase at an annual rate of 7%. The base monthly rental rate is $1,176 (R22,000) for the first year, $1,258 (R23,540) in the second year, $1,346 (R25,188) in the third year, and $1,440 (R26,951) in the final year of the lease. On January 26, 2023, the Company executed the renewal option for two additional years of its lease, commencing on February 1, 2023. Rental payments are due at the beginning of each month. The base monthly rental rate is $1,657 (R31,000) for the first year and $1,756 (R32,860) in the second year. The office space lease was classified as an operating lease. The interest rate underlying the obligation in the lease was 7% per annum.
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
F-9
 
The following is a schedule by years of future minimum lease payments under the remaining finance leases together with the present value of the net minimum lease payments as of February 29, 2024:
 
Years ending February 28:
 
 
Building Lease
(Operating Lease)
 
 
 
 
 
 
 
2025
 
$
13,943
 
 
 
 
 
 
Net minimum lease payments
 
 
13,943
 
Less: amount representing interest payments
 
 
(359
)
 
 
 
 
 
Present value of net minimum lease payments
 
 
13,584
 
Less: current portion
 
 
(13,584
)
 
 
 
 
 
Long-term portion
 
$
–
 
 
8.
Common Stock
Share transactions for the three months ended May 31, 2024:
a)
The Company accrued
83,332
shares of common stock issuable with a fair value of $83,332
pursuant to a Director Agreement (Note 10(b)) and a Director and Officer Agreement (Note 10(c))
.
 
Share transactions for the three months May 31, 2023:
b)
On As at May 31, 2023, the Company received common stock subscriptions of $10,000 for unissued shares,
which have been included in common stock issuable.
 
9.
Concentrations
 
The Company’s revenues were concentrated among two customers for the three months ended May 31, 2024, and four customers
for
the three months ended May 31, 2023.
Customer
 
Three Months
Ended
May 31, 2024
 
 
 
1
 
 
40
%
2
 
 
17
%
 
Customer
 
Three Months
Ended
May 31, 2023
 
 
 
1
 
 
22
%
2
 
 
19
%
3
 
 
12
%
4
 
 
11
%
 
The Company’s receivables were concentrated among two customers as at May 31, 2024, and one customer as at February 29, 2024:
Customer
 
May 31,
2024
 
 
 
1
 
 
43
%
2
 
 
14
%
 
Customer
 
February 29
,
2024
 
 
 
1
 
 
65
%
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 

F-10
 
10.
Commitments and Contingencies
 
a)
On February 3, 2022 (the “Effective Date”), the former CEO of the Company and the Company entered into a Share Purchase and Separation Agreement (the “Agreement”) with the following terms: (a) former CEO sells the Company 7,125,000 shares of common stock of the Company and 3,700,000 shares of common stock of MiWay Finance, Inc. (the “Purchased Shares”), for $240,000, payable with a $150,000 cash payment within 10 days of the Effective Date; and (b) $10,000 per month for 9 consecutive months commencing April 1, 2022; (c) the Company will pay the former CEO current salary through February 2022; (d) former CEO shall retain ownership of 2,000,000 shares of the Company’s common stock subject to a lockup/leak out whereby the former CEO is prohibited from selling any of the 2,000,000 Shares for a period of 18 months and thereafter, shall be permitted to sell no more than 5,000 shares per month. In addition, the former CEO agreed to forgive the $10,000 promissory note and accrued interest entered on September 7, 2021 with the Company, as well as $1,170 in expenses incurred on behalf of the Company.  As of February 28, 2022, the Company received 7,025,000 of the 7,125,000 shares of common stock of the Company. The transaction closed on March 2, 2022, and the Company received the remaining 100,000 shares of common stock of the Company and 3,700,000 shares of common stock of Miway Finance Inc.
 
On September 1, 2023, the Company amended the Agreement with the former CEO of the Company. The amendment stipulates a revised payment structure, with the Company agreeing to pay a total of $170,000 for the Purchased Shares, including a $150,000 cash payment post-closing and two $10,000 monthly payments from April 1, 2022, all of which have been paid at the amendment date. As a result of the amendment, a total of $70,000 was forgiven related to the revised payments for the Purchased Shares resulting in a corresponding reduction in accounts payable and accrued liabilities, and additional paid-in capital. The Company and the former CEO of the Company have mutually released each other from all claims and liabilities related to the former CEO’s employment and termination, excluding those specified in the agreement. Additionally, the Company agreed to repurchase a total of 2,035,000 shares of common stock held by the former CEO of the Company in consideration for $23,500. All other terms of the original agreement remain in effect unless specifically modified by this addendum. On September 19, 2023, the Company repurchased and cancelled the 2,035,000 shares of common stock.
 
b)
On September 1, 2022, the Company entered into an agreement with a Director of the Company for a term of 12 months. In consideration for the services to be provided, the Company agreed to pay the Director 100,000 restricted shares of common stock that will vest bi-monthly over the 12 months. During the year ended February 28, 2023, the Company recognized board member compensation of $40,000, representing the fair value of 50,000 shares of common stock issuable for services rendered for the period from September 2022 to February 2023.  During the year ended February 28, 2023, the Company issued 33,333 of the 50,000 shares issuable, leaving a balance of 16,667 shares still issuable at February 28, 2023. During the year ended
February 29, 2024
, the Company recognized board member compensation of $40,000, representing the fair value of 50,000 shares of common stock issuable for services rendered for the period from March 2023 to August 2023. During the year ended
February 29, 2024
, another 50,000 shares were issued.
 
On August 16, 2023, the Company extended its Agreement with the Director for a new term of 12 months, effective September 1, 2023. In consideration of services to be rendered, the Company shall pay the director 100,000 restricted shares of common stock, of which 50,000 shares will vest every 6 months over the term. Pursuant to the terms of the extended agreement, the Company recognized board member compensation of $25,000, representing a fair value of 25,000 shares of common stock issuable for services rendered for the period from March 2024 to May 2024. As at
May 31, 2024
, a total of 91,667 shares (February 29, 2024 – 66,667 shares) of common stock remain issuable to the director.
 
c)
On March 1, 2023, the Company entered into agreements with a Director and COO of the Company for director services and management services for a term of 12 months and 3 years, respectively. In consideration for the services to be provided as a director, the Company agreed to pay the Officer and Director 100,000 restricted shares of common stock that will vest bi-monthly over the 12 months. In consideration for the services to be provided as the COO, the Company also agreed to pay the Officer and Director an additional 700,000 shares of common stock that will vest quarterly with 12 equal payments of 58,333 shares. During the year ended February 29, 2024, the Company recognized management fees of $233,330 and board member compensation of $100,000, representing the fair value of 333,330 shares of common stock issuable for services rendered for the period from March 2023 to February 2024. During the three months ended May 31, 2024, the Company recognized management fees of $58,332 and board member compensation of $nil, representing the fair value of 58,332 shares of common stock issuable for services rendered for the period from March 2024 to May 2024. As at May 31, 2024, a total of 308,329 (February 29, 2024 – 249,997 shares) shares of common stock remain issuable to the officer and director.
 
Management has evaluated commitments and contingencies and is unaware of any legal matters or other contingencies requiring disclosure through period-end.
 
11.
Deposit
 
On October 15, 2021, the Company paid a R800,000 deposit to set up an electronic funds transfer debit facility with a vendor, which does not require a physical facility. During the year ended February 29, 2024, R600,000 of the deposit was returned to the Company. As at May 31, 2024, the balance of the deposit was $10,608 (R200,000) (February 29, 2024
–
$10,408 (R200,000). The deposit will remain for as long as the Company uses the facility.
 
12.
Subsequent Event
 
Management has evaluated subsequent events through the date that these financial statements were issued, and none were identified.
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.

 
F-11
 
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
FORWARD-LOOKING STATEMENTS
 
This document contains “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objections of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing.
 
Forward-looking statements may include the words “may,” “could,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement.
 
Although we believe that the expectations reflected in any of our forward- looking statements are reasonable, actual results could differ materially from those projected or assumed in any or our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The factors impacting these risks and uncertainties include, but are not limited to:
 
 
·
Our results are vulnerable to economic conditions;
 
 
·
Our ability to raise adequate working capital;
 
 
·
Loss of customers or sales weakness;
 
 
·
Inability to achieve sales levels or other operating results;
 
 
·
The unavailability of funds for expansion purposes;
 
 
·
Operational inefficiencies;
 
 
·
Increased competitive pressures from existing competitors and new entrants.
 
DESCRIPTION OF BUSINESS
 
Corporate Background
 
We were formed on July 8, 2018 in the state of Nevada. On November 4, 2018, we conducted a share exchange (the “Share Exchange”) with Rent Pay (Pty), Ltd (“Rent Pay”), a South African company, and Rent Pay’s shareholders. In the Share Exchange, we exchanged 200,000 shares of our common stock for all of Rent Pay’s 1,000 outstanding shares, 500 of which were in the name of Loantech Trust, a trust controlled by our officer, Wouter Fouche, and 500 shares in the name of Folscher Family Trust, a trust controlled by our other officer, Jaco Folscher. As a result of the Share Exchange, Rent Pay become our wholly owned subsidiary. Apart from the Share Exchange, we have never been the subject of a material reclassification, merger, consolidation, or purchase or sale of a significant amount of assets not in the ordinary course of business. Further, we have never been the subject of a bankruptcy, receivership or similar proceeding. Rent Pay was registered as a South Africa closed corporation on July 21, 2008. In South Africa, a closed corporation is a business entity usually associated with smaller businesses. On February 1, 2012, Rent Pay was converted into a South Africa Limited Liability or private company, which in South Africa is the equivalent of a limited liability company in the US and denotes a larger entity since the shareholders are not limited as with a closed corporation.
 
3
 
Our Mission
 
Our mission is to provide loan administration software to credit providers, retail stores, provisional service industry (doctors, lawyers, accountants) with a high-quality credit management software systems and customer support that will enable such industries to effectively operate and manage their business and credit risk in compliance with applicable US federal and state laws and the National Credit Act in South Africa.
 
Business
 
We are a fintech company and provider of cloud-based loan and client administration software solutions, fully integrated with payment gateways and credit bureaus as well as other decision making and risk management tools. Our business has operated in South Africa since July 2008. We have not earned any revenue in the US yet but plan to begin selling our products in the US by August 2024, through our wholly owned subsidiary Huntpal LLC. We recently acquired full ownership of Huntpal LLC, which is  a registered Seller of Travel company in Florida. Huntpal LLC also has a wholly owned South African subsidiary, Huntpal (Pty) ltd, that acts as operational arm of our Africa based  business.   Huntpal’s main client base and target market is the US hunting and adventure travel industry.
 
Rent Pay (Pty), offers a comprehensive software solution to small medium and large organizations to limit risk, improve collections on instalment loans and comply fully with South Africa regulations. Rent Pay, is a wholly owned subsidiary of UPAY.  Rent Pay is a software company that offers services to “small dollar loan” South Africa credit facilities, including store fronts that provide such loans (“Store Fronts”). Rent Pay provides a loan management service to its South Africa storefronts and online lenders and assists them in all loan cycle segments.
 
Recent Developments
 
(b) Completed new software integration with a US payment system, namely Payliance. We also integrated with a US credit bureau, Decision Logic.
 
We recently launched the new website of Huntpal, at
www.huntpal.net
.
Huntpal is an online platform designed to cater to the needs of hunters in the United States. The recent launch of its website marks an important milestone, offering a comprehensive suite of services for the hunting community.
Huntpal connects US hunters with reputable hunting outfitters and premier hunting destinations in South Africa.
The platform promotes responsible hunting practices and provides resources on sustainable hunting and wildlife management strategies.
Huntpal offers "Hunt now - Pay later" options on all outfitter packages, allowing hunters to book packages with interest-free payments, providing financial flexibility.
Overall, Huntpal aims to be a one-stop solution for hunters, offering planning tools, community engagement, educational resources, and enhanced hunting experiences both domestically and internationally.
 
UPAY recently took a controlling stake in AML GO (Pty) Ltd, a South African Limited Liability Company. The company focusses of AML (Anti-Money Laundering) screening and compliance solutions and offer credit vetting and credit risk tools for South African businesses.
  
Products and Services
 
South African Business Operation:
 
Our South African Subsidiary, Rent Pay (Pty) Ltd currently provides a web-based client and loan administration software platform, the Automated Credit Provider Administration System to registered lenders in South Africa, which we market under the name “ACPAS”.
 
Our customer base consists of customers with physical branch outlets as well as online customers with lending websites. ACPAS was designed to bridge the gap between traditional standalone administration platforms, payment gateways, credit bureaus and other third-party service providers through this fully automated software platform.
 

4
 
We provide a cloud-based loan origination software system that is compliant with all applicable legislation and enables our customers to grant loans, sell products, pay bills or pay monthly subscriptions on terms, all within our software system. Our software platform features integrated third-party service providers are, for example, registered payment gateways, credit bureaus, two-way texting, credit protection insurance and decision-making platforms. We also develop tailor-made web sites for our customers that is fully integrated with our ACPAS system. Our system also includes basic accounting and bookkeeping functionality.
 
Products in South Africa
 
 
1.
Loan Origination System
 
ACPAS – Automated Credit Provider Administration System. This is our management software system that we lease on a monthly basis to our customers that they use to manage their businesses, clients and processes.
 
 
2.
Theme Studio - Business Online
 
Customized websites that we develop for our customers that are fully integrated with our ACPAS system to provide our customers with a public platform to interact and transact with their clients daily.
 
 
3.
Credit Inquiries
 
We are a reseller of credit bureau products. We provide our customers with a base within the ACPAS software system to conduct consumer credit inquiries to make informed credit decisions about whether or not to grant credit to an applicant. We buy these credit inquiries in bulk from the credit bureau and resell the transactions to our customers at a markup price.
 
 
4.
Credit Protection and Life Insurance
 
We act as an agent for a registered insurance company and provide our customers with functionality within the ACPAS software system that enables our customers to sell credit protection insurance or life insurance products to consumers when securing credit. We receive monthly commission on all insurance sales generated through our system on a referral basis.
 
 
5.
Debit order transaction fees
 
In South Africa, we are a registered Third-Party Payment Provider (TPPP) and charge a fee for debit order transactions that we facilitate between parties. This is a percentage-based fee that we charge for every instalment due for repayment, that we successfully collect by debit order from the bank account of consumers for their benefit.
 
US Business Operation:
 
We are a holding company for our South African and US operations. Huntpal LLC is a wholly owned subsidiary of UPAY. Huntpal is an online platform designed to cater to the needs of hunters in the United States. Huntpal connects US hunters with reputable hunting outfitters and premier hunting destinations in South Africa. The platform promotes responsible hunting practices and provides resources on sustainable hunting and wildlife management strategies. Huntpal offers "Hunt Now - Pay Later" options on all outfitter packages, allowing hunters to book packages with interest-free payments, providing financial flexibility.
 

5
 
Planned products in the USA
 
 
1.
Loan Origination System
 
ACPAS – Automated Credit Provider Administration System. This is our management software system that we will lease to our customers on a monthly basis. Our customers will use this platform to manage their businesses, clients and processes.
 
 
2.
Theme Studio Business Online
 
Customized websites that we will develop for our customers. These websites are fully integrated with our ACPAS system that provides our customers with a public platform to interact and transact with their clients daily. Non-traditional credit models like Buy now - Pay later (BNPL) and other purposed-based lending models can be accommodated through Theme Studio.
 
 
3.
Credit Inquiries
 
We will be a reseller of credit bureau products. We will provide our customers with the functionality within the ACPAS software system to do consumer credit inquiries on consumers, in order to make informed credit decisions about whether or not to grant credit to an applicant. We buy these credit inquiries in bulk from the credit bureau and resell the transactions to our customers at a markup price.
 
 
4.
Credit Protection Insurance
 
We plan to act as an agent for a registered insurance company and to provide our customers with functionality within the ACPAS software system that will enable our customers to sell credit protection insurance to consumers when taking out credit. We should receive monthly commission on insurance sales generated through our system.
 
 
5.
ACPAS Transaction fee
 
We will invoice our customers per transaction, for the volume of transactions effected within the ACPAS system during each month. A transaction fee is added with any agreement/loan made on the system and is effected with all receipts made on the system during this period.
 
 
6.
Debit order transaction fees
 
In the US, we plan to charge a service fee for debit order transactions that we plan to facilitate between parties. This will be a percentage-based fee that we will charge for every instalment due for repayment, that we successfully collected by debit order from the bank account of a consumer for the benefit of our customers.
 
This service will have two billing options.
 
 
¨
Cost to Client (CTC) - The cost of the transaction is paid by the bank merchant’s client/consumer; and
 
¨
Cost to Merchant (CTM) - The cost of the transaction is paid by our merchant (A merchant is a registered bank merchant and in our business case, a merchant refers to the registered lender or credit access business).
 
Revenue
 
In the US, we plan to charge a debit order transaction fee for debit order transactions between parties to facilitate credit transactions. This will be a percentage-based fee that we will charge for every instalment due for repayment, that we collect by debit order from the bank account of a consumer (borrower) for the benefit of our customers (lenders).
 
This service will have two billing options:
 
 
¨
Cost to Client (CTC) - The cost of the transaction is paid by the consumer; and
 
¨
Cost to Merchant (CTM) The cost of the transaction is paid by our customer.

6

Planned US Revenue Segments

Item
 
Price
 
Monthly software license fee
 
$
500
 
Installation and setup (one-time charge)
 
 
2,500.00
 
ACPAS Transaction fee (per transaction) (1)
 
$
1.50
 
 
*The average ACPAS volume of transactions/per month/per branch historically has been 500 transactions
 

(1)
Transaction Fee (CTC /CTM per successful transaction) per quote on % basis Transaction Fee (CTC /CTM per successful transaction) per quote on % basis (between 1.5% and 2.5% of transaction amount collected)
 
A transaction is calculated when a loan is created on our ACPAS platform but effected when a payment is receipted on our ACPAS platform on that agreement.
 
We will also provide custom website development services on a per quote basis.
 
Description
 
South Africa
Revenue Segment
 
ACPAS - Monthly License Fee
 
$
42.85
ACPAS Installation and Setup fee (One-time charge)
 
$
35.71
Transaction Fee (CTC /CTM per successful transaction)
 
 
2.55
%
Ave volume of transactions/per month/per branch
 
 
500
Commission on insurance
 
 
Variable
 
(A transaction is defined as a successful debit order collection through our debit order platform)
 
We will also provide custom website development services on a per quote basis. 
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations – 3 Month Periods Ending May 31, 2024 and May 31, 2023.
 
Reliance Upon One or a Few Customers
 
During our Fiscal Year 2024, 4 customers accounted for 67.63% of our revenues business in South Africa, as follows:
 
Customer 1
 
 
29.43
%  
Customer 2
 
 
19.53
%
Customer 3
 
 
11.40
%
Customer 4
 
 
7.27
%
 
 
Trends and Uncertainties
 
Our business is subject to the following trends and uncertainties:
 
 
·
Whether our system will be adaptable to US needs
 
·
Whether we will develop interest in our software system in the US
 
·
The level of activity of credit facilities and their need for our software
 
Going Concern
 
Our financial statements have been prepared on a going concern basis which assumes that we will be able to realize our assets and discharge its liabilities and commitments in the normal course of business for the foreseeable future. We had an accumulated deficit of ($1,773,866) at May 31, 2024. As of May 31, 2024, we do not have revenues sufficient to execute our business plan. We intend to fund operations through equity financing arrangements; however, there is no assurance that we will be successful.
 
7
 
Results of Operations: For the 3 months ended May 31, 2024 and May 31, 2023
 
Revenues
 
Our revenues for the 3-month period ended May 31, 2024 and 2023 were $257,249 and $332,576, respectively, reflecting decreased revenues of $75,327, which increase is primarily attributable to a decline in transactional revenue from our South African operations.
 
Net Loss/Profit
 
We had a net loss of $150,677 and a net loss of $32,220 for the 3-month ended May 31, 2024 and 2023, respectively, an increase of net loss of $118,457, which is primarily attributable to decreased revenue in our South African operations.
 
Operating Expenses
 
We incurred total operating expenses of $266,914 and $199,505, respectively, for the 3-month period ended May 31, 2024 and 2023, reflecting a $67,409 increase for the 3 months ended May 31, 2024, which is attributable to a $76,112 increase in general and administrative expenses for the same periods.
 
Liquidity and Capital Resources
 
We had negative working capital of $288,324 at May 31, 2024 and negative working capital of $229,865 at our fiscal year ended February 28, 2023, representing a decrease of $58,459 in working capital.
 
Our net cash flows provided by operating activities was ($425,730) for the 3 months ended May 31, 2024 compared to ($134,044) for the 3 months ended May 31, 2023, representing a $291,686 increase in negative cash flows provided by operating activities.
 
Our net cash used in investing activities were $0 and ($23,171) respectively, for the three months ended May 31, 2024 and 2023, reflecting a $23,171 decrease in cash used in investing activities.
 
Our net cash provided by financing activities was $0_for the 3-month period ended May 31, 2024, compared to $12,979 for the three months ended May 31, 2023 reflecting a $12,979  decrease in financing activities.
 
Off-Balance sheet arrangements
 
None.
 
Item 3.   Quantitative and Qualitative Disclosures About Market Risk.
 
Not applicable
 
Item 4.   Controls and Procedures.
 
Disclosure Controls and Procedures
 
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer/Chief Accounting Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
 
8
 
As required by SEC Rule 15d-15(b), we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective in providing reasonable assurance in the reliability of our report as of the end of the period covered by this report. This is because we have not sufficiently developed our segregation of duties and we do not have an audit committee.
 
Changes in Internal Control over Financial Reporting
 
There were no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  We will continue to evaluate the effectiveness of internal controls and procedures on an on-going basis.
 
PART II – OTHER INFORMATION
 
Item 1.   Legal Proceedings.
 
We know of no material pending legal proceedings to which our company or our subsidiary is a party or of which any of our properties, or the properties of our subsidiary, is the subject. In addition, we do not know of any such proceedings contemplated by any governmental authorities. 

We know of no material proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder is a party adverse to our us or has a material interest adverse to our company or our subsidiary.
 
9

Item 1A.   Risk Factors
 
As a smaller reporting company, we are not required to provide risk factors.
 
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds.
 
Item 3.   Defaults Upon Senior Securities
 
None
 
Item 4.   Mine Safety Disclosures.
 
None
 
Item 5.   Other information
 
None.
 
Item 6.   Exhibits.
 
EXHIBIT INDEX
 
Exhibit

Number
 
Description




101.INS
 
XBRL Instance Document
101.SCH
 
XBRL Taxonomy Extension Schema Document
101.CAL
 
XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB
 
XBRL Taxonomy Extension Label Linkbase Document
101.PRE
 
XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF
 
XBRL Taxonomy Extension Definition Linkbase Document

10
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Date: July 15, 2024
 
UPAY, INC.
 
 
 
 
By:
/s/  Jaco C. Folscher
 
Jaco C. Folscher
 
Chief Executive Officer
 
(Principal Executive Officer & Chief Executive Officer)
 
  
By:
/s/ Jaco C. Folscher
 
Jaco C. Folscher
 
Chief Financial Officer
 
(Chief Financial Officer/Chief Accounting Officer)
 

11

 

EXHIBIT 31.1

 

CERTIFICATION

CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

 

I, Wouter A. Fouche, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of UPAY, Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

 

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrants’ other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 15, 2024

 

/s/ Wouter A. Fouche

 

Walter A. Fouche

 

(Principal Executive Officer & Chief Executive Officer)

 

 

 

EXHIBIT 31.2

 

CERTIFICATION

CHIEF FINANCIAL OFFICER/CHIEF ACCOUNTING OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

 

I, Jaco C. Folscher, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of UPAY, Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

 

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrants’ other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 15, 2024

 

/s/  Jaco C. Folscher

 

Jaco C. Folscher

 

Chief Financial Officer/Chief Accounting Officer

 

(Principal Financial Officer and Principal Accounting Officer)



EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of UPAY, Inc. (the “Company”), does hereby certify, to such officer’s knowledge, that:

 

The Quarterly Report on Form 10-Q for the quarter ended May 31, 2024 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented in the Form 10-Q.

 

Date: July 15, 2024

 

/s/ Jaco C. Folscher

 

Jaco C. Folscher

 

Principal Executive Officer/Chief Executive Officer  

 

(Principal Executive Officer and Chief Executive Officer)    

 

 

 

EXHIBIT 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of UPAY, Inc. (the “Company”), does hereby certify, to such officer’s knowledge, that:

 

The Quarterly Report on Form 10-Q for the quarter ended May 31, 2019 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented in the Form 10-Q.

 

Date: July 15, 2024

 

 

 

/s/ Jaco C. Folscher

 

Jaco C. Folscher

 

Chief Financial Officer/Chief Accounting Officer

 

(Principal Financial Officer/Chief Financial Officer/Principal Accounting Officer)

 

 

The foregoing certifications are being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

 

v3.24.2
Cover - shares
 3 Months Ended
May 31, 2024
Jul. 15, 2024
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date May 31, 2024  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2024  
Current Fiscal Year End Date --02-28  
Entity File Number 333-212447  
Entity Registrant Name UPAY, Inc.  
Entity Central Index Key 0001677897  
Entity Tax Identification Number 37-1793622  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One 3010 LBJ Freeway  
Entity Address, Address Line Two 12th Floor  
Entity Address, City or Town Dallas  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 75234  
City Area Code 972  
Local Phone Number 888-6052  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   15,708,544
v3.24.2
Consolidated Balance Sheets
May 31, 2024
USD ($)
Feb. 29, 2024
USD ($)
Current Assets    
Cash and cash equivalents $ 231,196 $ 642,846
Accounts receivable, net of allowance 46,681 73,395
Prepaid expenses and other current assets 12,939 2,884
Total Current Assets 290,816 719,125
Property and Equipment, Net (Note 3) 21,164 22,638
Right-of-use Assets, Net (Note 4) 13,584 18,169
Deposit (Note 11) 10,608 10,408
Total Assets 336,172 770,340
Current Liabilities    
Accounts payable and accrued liabilities 201,275 572,904
Current portion of lease liabilities (Note 7 ) 13,584 18,169
Current portion of notes payable (Note 6) 52,143 52,143
Notes payable – Related parties (Note 5) 251,000 251,000
Total Current Liabilities 579,140 948,990
Non-Current Liabilities    
Notes Payable (Note 6) 76,157 76,157
Total Liabilities 655,297 1,025,147
Stockholders' Deficit    
Preferred Stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding 0 0
Common Stock, $0.001 par value, 100,000,000 shares authorized; 15,708,544 shares issued and outstanding 15,708 15,708
Common Stock Issuable 396,663 313,331
Additional Paid-in Capital 1,116,590 1,116,590
Accumulated Deficit (1,773,866) (1,623,189)
Accumulated Other Comprehensive Loss (74,220) (77,247)
Total Stockholders' Deficit (319,125) (254,807)
Total Liabilities and Stockholders' Deficit 336,172 770,340
Related Party [Member]    
Current Liabilities    
Due to related parties (Note 5) $ 61,138 $ 54,774
v3.24.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
May 31, 2024
Feb. 29, 2024
Statement of Financial Position [Abstract]    
Preferred Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Common Stock, Shares Authorized 100,000,000 100,000,000
Common Stock, Shares, Issued 15,708,544 15,708,544
Common Stock, Shares, Outstanding 15,708,544 15,708,544
v3.24.2
Consolidated Statements of Operations and Comprehensive Loss
 3 Months Ended
May 31, 2024
USD ($)
$ / shares
shares
May 31, 2023
USD ($)
$ / shares
shares
Income Statement [Abstract]    
Revenue $ 257,249 $ 332,576
Cost of Revenue (134,333) (159,136)
Gross Profit 122,916 173,440
Expenses    
Amortization of right-of-use assets (Note 4) 0 888
Depreciation (Note 3) 1,904 9,719
General and administrative 265,010 188,898
Total Expenses 266,914 199,505
Loss Before Other Income (Expenses) and Income Taxes (143,998) (26,065)
Other Income (Expenses)    
Interest income 1,857 1,113
Interest expense (8,536) (8,320)
Gain on settlement of lease (Note 7) 0 1,052
Loss Before Income Taxes (150,677) (32,220)
Provision for income taxes 0 0
Net Loss (150,677) (32,220)
Other Comprehensive Income (Loss)    
Foreign currency translation adjustments 3,027 (8,552)
Comprehensive Loss $ (147,650) $ (40,772)
Net Loss Per Share – Basic | $ / shares $ (0.01) $ 0
Net Loss Per Share – Diluted | $ / shares $ (0.01) $ 0
Weighted-average Common Shares Outstanding – Basic | shares 16,108,540 17,190,211
Weighted-average Common Shares Outstanding – Diluted | shares 16,108,540 17,190,211
v3.24.2
Consolidated Statement of Stockholders' Deficit and Accumulated Other Comprehensive Loss - USD ($)
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Common Stock Issuable [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Loss [Member]
Beginning balance at Feb. 28, 2023 $ (382,027) $ 17,190 $ 535,275 $ 13,334 $ (886,998) $ (60,828)
Beginning balance, Shares at Feb. 28, 2023   17,190,211        
Common stock subscribed 10,000     10,000    
Common stock issuable for services 20,000     20,000    
Net loss (32,220)       (32,220)  
Foreign currency translation adjustments (8,552)         (8,552)
Ending balance at May. 31, 2023 (392,799) $ 17,190 535,275 43,334 (919,218) (69,380)
Ending Balance, Shares at May. 31, 2023   17,190,211        
Beginning balance at Feb. 29, 2024 (254,807) $ 15,708 1,116,590 313,331 (1,623,189) (77,247)
Beginning balance, Shares at Feb. 29, 2024   15,708,544        
Common stock issuable for services 83,332     83,332 0  
Net loss (150,677)       (150,677)  
Foreign currency translation adjustments 3,027       0 3,027
Ending balance at May. 31, 2024 $ (319,125) $ 15,708 $ 1,116,590 $ 396,663 $ (1,773,866) $ (74,220)
Ending Balance, Shares at May. 31, 2024   15,708,544        
v3.24.2
Consolidated Statements of Cash Flows
 3 Months Ended 12 Months Ended
May 31, 2024
USD ($)
May 31, 2023
USD ($)
Feb. 29, 2024
USD ($)
Cash Flows from Operating Activities      
Net Loss $ (150,677) $ (32,220)  
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Amortization of right-of-use assets 0 888  
Common stock issued or issuable for services 83,332 20,000  
Depreciation 1,904 9,719  
Gain on settlement of lease 0 (1,052) $ (1,042)
Interest expense on lease liability   67  
Changes in operating assets and liabilities:      
Accounts receivable 28,332 13,237  
Prepaid expenses and other current assets (10,000)    
Deposits   32,402  
Accounts payable and accrued liabilities (384,985) (183,411)  
Accounts payable – related party 6,364 6,326  
Net Cash Used in Operating Activities (425,730) (134,044)  
Cash Flows from Investing Activities      
Purchase of property and equipment   (23,171)  
Net Cash Used in Investing Activities   (23,171)  
Cash Flows from Financing Activities      
Proceeds from common stock subscriptions   10,000  
Proceeds from shareholder promissory note   4,000  
Repayment of lease liabilities   (1,021)  
Net Cash Provided by Financing Activities   12,979  
Effect of Exchange Rate Changes on Cash 14,080 (36,646)  
Change in Cash and Cash Equivalents (411,650) (180,882)  
Cash and Cash Equivalents - Beginning of Period 642,846 662,991 662,991
Cash and Cash Equivalents - End of Period 231,196 482,109 $ 642,846
Supplemental Disclosures of Cash Flow Information:      
Interest paid 8,536 8,320  
Income taxes paid $ 0 $ 0  
v3.24.2
Nature of Operations and Continuance of Business
 3 Months Ended
May 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of operations and continuance of business
1
.
Nature of Operations and Continuance of Business
 
UPAY, Inc. (the “Company”) was incorporated in the State of Nevada on July 8, 2015. By a Share Exchange Agreement dated November 4, 2015, the Company agreed to acquire all of the issued and outstanding shares of Rent Pay (Pty) Ltd (“Rent Pay”), in exchange for 200,000 shares of the Company’s common stock.  The acquisition is a capital transaction in substance and therefore has been accounted for as a recapitalization. Rent Pay was incorporated in South Africa on February 1, 2012. Because Rent Pay is deemed to be the acquirer for accounting purposes, the consolidated financial statements are presented as a continuation of Rent Pay and include the results of operations of Rent Pay since incorporation on February 1, 2012, and the results of operations of the Company since the date of acquisition on November 4, 2015. On March 2, 2022, the Company acquired a controlling interest in Miway Finance Inc. (“Miway”), which was determined to be a transaction between entities under common control. On May 30, 2023, the Company incorporated a wholly-owned subsidiary, taking a controlling interest in Huntpal LLC (“Huntpal”). On May 28, 2024, the Company acquired a controlling interest in AML Go (Pty) Ltd (“AML”) which was incorporated on July 3, 2023. AML was determined to be an entity under common control, and the transaction was considered immaterial due to the nominal assets and liabilities at the time of acquisition.
 
Rent Pay operates principally in South Africa and engages in software development and licensing and provides services to the credit provider industry.
 
v3.24.2
Summary of Significant Accounting Policies
 3 Months Ended
May 31, 2024
Accounting Policies [Abstract]  
Summary of significant accounting policies
2.
Summary of Significant Accounting Policies
 
a)
Basis of Presentation
 
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S. dollars. The Company’s fiscal year end is February 28. The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiary, Rent Pay, and its controlled subsidiaries, Miway, Huntpal, and AML. The Company owns 48% of Miway, and 51% of both Huntpal and AML. All significant intercompany transactions and accounts have been eliminated in consolidation.
 
b)
Interim Financial Statements
 
The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end February 29, 2024, have been omitted.
 
c)
Use of Estimates
 
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to useful life and recoverability of long-lived assets, and deferred income tax asset valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
 
d)
Going Concern
 
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of May 31, 2024, the Company does not have revenues sufficient to execute its business plan. The Company intends to fund operations through equity financing arrangements. There is no assurance that this will be successful. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
 
e)
Recent Accounting Pronouncements
 
The Company has implemented all new accounting pronouncements that are in effect and that may impact its unaudited consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
v3.24.2
Property and Equipment, Net
 3 Months Ended
May 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net

3.
Property and Equipment, Net

Property and equipment, net, consists of the following:
 
 
 
Cost
 
 
Accumulated
Depreciation
 
 
 
 
May 31,
2024
Net Carrying Value
 
 
 
 
 
 
February 29,
2024
Net Carrying Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Computer equipment
 
$
13,906
 
 
$
(10,276
)
 
$
3,630
 
 
$
4,186
 
Computer software
 
 
206,000
 
 
 
(205,755
)
 
 
245
 
 
 
325
 
Furniture and fixtures
 
 
9,787
 
 
 
(7,823
)
 
 
1,964
 
 
 
2,074
 
Motor vehicle
 
 
19,094
 
 
 
(4,338
)
 
 
14,756
 
 
 
15,414
 
Office equipment
 
 
4,212
 
 
 
(3,643
)
 
 
569
 
 
 
639
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
252,999
 
 
$
(231,835
)
 
$
21,164
 
 
$
22,638
 

During the three months ended May 31, 2024, the Company recorded depreciation expense of $1,904 (2023
–
$9,719). During the three months ended May 31, 2024, the Company acquired $nil (2023
–
$1,182) of computer equipment and $nil (2023
–
$21,991) of motor vehicles.
v3.24.2
Right-Of-Use Assets, Net
 3 Months Ended
May 31, 2024
Right-of-use Assets Net  
Right-of-use assets, net
 
4.
Right-Of-Use Assets, Net
 
Right-of-use assets, net, consist of the following:
 
 
 
Cost
 
 
Accumulated
Amortization
 
 
May 31,
2024
Net Carrying
Value
 
 
 
 
 
 
 
 
February 29,
2024
Net Carrying
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Right-of-use building (operating lease)
 
$
60,711
 
 
$
(47,127
)
 
$
13,584
 
 
$
18,169
 
Right-of-use vehicles (finance lease)
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
60,711
 
 
$
(47,127
)
 
$
13,584
 
 
$
18,169
 

During the three months ended May 31, 2024, the Company recorded rent expense of $5,268 (2023 - $5,022) related to Company’s right-of-use building and amortization expense of $nil (2023 - $888) related to the Company’s right-of-use vehicles. During the year ended February 29, 2024, the Company settled a lease obligation on a right-of-use vehicle with a carrying value of $1,894 and a remaining lease liability of $2,936, which resulted in a gain on settlement of lease of $1,042.
v3.24.2
Due to Related Parties
 3 Months Ended
May 31, 2024
Related Party Transactions [Abstract]  
Due to related parties
 

5.
Due to Related Parties

a)
On March 24, 2021, the Company entered into a promissory note with the Chief Executive Officer (“CEO”) of
the
Company for $10,000, which is unsecured, bears interest of 10% per annum and matured on March 24, 2022. As at
May 31, 2024
, the outstanding principal is $10,000 (
February 29, 2024
– $10,000) and the Company has recognized accrued interest of $3,253 (
February 29, 2024
– $2,963), which is included in due to related parties. 

b)
On September 7, 2021, the Company entered into a promissory note with the CEO of the Company for $10,000, which is unsecured, bears interest of 10% per annum and matured on March 7, 2022. As at
May 31, 2024
, the outstanding principal is $10,000 (
February 29, 2024
– $10,000) and the Company has recognized accrued interest of $2,732 (
February 29, 2024
– $2,479) which is included in due to related parties.

c)
On February 11, 2022, the Company entered into a promissory note with the CEO of the Company for $20,000, which is unsecured, bears interest of
10
% per annum and matured on February 11, 2023. As at
May 31, 2024
, the outstanding principal is $
20,000
(
February 29, 2024
– $
20,000
) and the Company has recognized accrued interest of $
4,603
(
February 29, 2024
– $
4,099
), which is included in due to related parties.

d)
On April 14, 2021, the Company entered into a promissory note with a company controlled by a significant shareholder of the Company for $
26,000
, which is unsecured, bears interest of
10
% per annum and matured on
October 13, 2023
. As at
May 31, 2024
, the outstanding principal is $
26,000
(
February 29, 2024
– $
26,000
) and the Company has recognized accrued interest of $
8,142
(
February 29, 2024
– $
7,487
), which is included in due to related parties.

e)
On February 11, 2022, the Company entered into a promissory note with a company controlled by a significant shareholder of the Company for $
130,000
, which is unsecured, bears interest of
10
% per annum and matures on
February 11, 2023
. As at
May 31, 2024
, the outstanding principal is $
130,000
(
February 29, 2024
– $
130,000
) and the Company has recognized accrued interest of $
29,918
(
February 29, 2024
– $
26,641
), which is included in due to related parties.

The accompanying notes are an integral part of these unaudited consolidated financial statements.
 

 
f)
During the year ended February 28, 2022, a third-party lender purchased a promissory note from a company controlled by a significant shareholder of the Company in the amount of $
15,000
, which is unsecured, bears interest of
10
% per annum and matured on
October 13, 2023
. As at
May 31, 2024
, the outstanding principal is $
15,000
(
February 29, 2024
– $
15,000
) and the Company has recognized accrued interest of $
4,697
(
February 29, 2024
– $
4,319
), which is included in due to related parties.
 
g)
On May 2, 2022, the Company entered into a promissory note with a company controlled by a significant shareholder of the Company for $
25,000
, which is unsecured, bears interest of
10
% per annum and matured on March 2, 2023. As at
May 31, 2024
, the outstanding principal is $
25,000
(
February 29, 2024
– $
25,000
) and the Company has recognized accrued interest of $
5,205
(
February 29, 2024
– $
4,575
), which is included in due to related parties.
 
h)
On September 9, 2022, the Company entered into a promissory note with a company controlled by a significant shareholder of the Company for $
15,000
, which is unsecured, bears interest of
10
% per annum and matured on September 9, 2023. As at
May 31, 2024
, the outstanding principal is $
15,000
(
February 29,
2024
– $
15,000
) and the Company has recognized accrued interest of $
2,589
(February 29, 2024
– $
2,211
), which is included in due to related parties.
 
i)
During the three months ended May 31
, 2024
, the Company incurred salary expenses of $
26,357
(R
493,258
) (
2023
–
$
30,870
(R
571,629
)
) to the CEO of the Company.
 
j)
During the three months ended May 31
, 2024
, the Company incurred directors’ fees of
25,000
(2023 – $
20,000
) to a Director of the Company pursuant to a Director Agreement (Note 10(b)).
 
k)
During the three months ended May 31
, 2024
, the Company incurred directors’ fees of $
1,202
(
R
22,500
) (2023 – $
nil
) to a Director of the Company.
 
l)
During the three months ended May 31
, 2024
, the Company incurred management fees of $
58,332
(2023 - $
nil
) to the Chief Operating Officer (“COO”) and Director of the Company pursuant to a Director and Officer Agreement (Note 10(c)).
v3.24.2
Notes Payable
 3 Months Ended
May 31, 2024
Debt Disclosure [Abstract]  
Notes payable
6.
Notes Payable
 
a)
On May 20, 2020, the Company entered into a promissory note with a third-party lender for $25,000, which is unsecured, bears interest of 10% per annum and matured on May 20, 2023. As at
May 31, 2024
, the Company has recognized accrued interest of $10,082 (
February 29, 2024
–
$
9,452), which is included in accounts payable and accrued liabilities.
 
b)
On May 27, 2020, the Company entered into a promissory note with the U.S. Small Business Administration for $77,800, which is secured by the assets of the Company, bears interest of 3.75% per annum and matures on May 27, 2050. Instalment payments, including principal and interest, of $380 per month will begin 12 months from the date of the promissory note. As at May 31, 2024, the Company has recognized accrued interest of $10,930 (
February 29, 2024
– $10,195), which is included in accounts payable and accrued liabilities.
 
c)
On October 22, 2021, the Company entered into a promissory note with a third-party lender for $25,500, which is unsecured, bears interest of 10% per annum and matured on
October 13, 2023
. As at
May 31, 2024
, the Company has recognized accrued interest of $6,651
(
February 29, 2024
–
$6,008), which is
included in accounts payable and accrued liabilities.
v3.24.2
Lease Liabilities
 3 Months Ended
May 31, 2024
Leases [Abstract]  
Lease Liabilities
7.
Lease Liabilities
 
The Company commenced the leasing of a motor vehicle on October 10, 2018, for a term of five years. The monthly minimum lease payments were $505 (R9,456). The motor vehicle lease was classified as a finance lease. The interest rate underlying the obligation in the lease was 11.25% per annum. During the three months ended May 31, 2024, the Company paid a total of $nil (2023 - $1,021) in principal and interest payments on the motor vehicle lease.
 
On May 10, 2023, the Company settled the motor vehicle finance leases for a settlement fee of $2,549 (R47,204) resulting in a gain on settlement of $1,052 (R19,480). Upon the payment of the settlement fee, the vehicle title was transferred immediately to the Company and has been allocated to the Company’s property and equipment to be depreciated over the remainder of its useful life.
 
On February 1, 2021, the Company entered a two-year lease with a renewal option for office space in South Africa. The term of the renewal agreement is for an additional two years and commenced on February 1, 2023. Rental payments are due at the beginning of each month and increase at an annual rate of 7%. The base monthly rental rate is $1,176 (R22,000) for the first year, $1,258 (R23,540) in the second year, $1,346 (R25,188) in the third year, and $1,440 (R26,951) in the final year of the lease. On January 26, 2023, the Company executed the renewal option for two additional years of its lease, commencing on February 1, 2023. Rental payments are due at the beginning of each month. The base monthly rental rate is $1,657 (R31,000) for the first year and $1,756 (R32,860) in the second year. The office space lease was classified as an operating lease. The interest rate underlying the obligation in the lease was 7% per annum.
 
 
The following is a schedule by years of future minimum lease payments under the remaining finance leases together with the present value of the net minimum lease payments as of February 29, 2024:
 
Years ending February 28:
 
 
Building Lease
(Operating Lease)
 
 
 
 
 
 
 
2025
 
$
13,943
 
 
 
 
 
 
Net minimum lease payments
 
 
13,943
 
Less: amount representing interest payments
 
 
(359
)
 
 
 
 
 
Present value of net minimum lease payments
 
 
13,584
 
Less: current portion
 
 
(13,584
)
 
 
 
 
 
Long-term portion
 
$
–
 
v3.24.2
Common Stock
 3 Months Ended
May 31, 2024
Equity [Abstract]  
Common Stock
 
8.
Common Stock
Share transactions for the three months ended May 31, 2024:
a)
The Company accrued
83,332
shares of common stock issuable with a fair value of $83,332
pursuant to a Director Agreement (Note 10(b)) and a Director and Officer Agreement (Note 10(c))
.
 
Share transactions for the three months May 31, 2023:
b)
On As at May 31, 2023, the Company received common stock subscriptions of $10,000 for unissued shares,
which have been included in common stock issuable.
v3.24.2
Concentrations
 3 Months Ended
May 31, 2024
Risks and Uncertainties [Abstract]  
Concentrations
 
9.
Concentrations
 
The Company’s revenues were concentrated among two customers for the three months ended May 31, 2024, and four customers
for
the three months ended May 31, 2023.
Customer
 
Three Months
Ended
May 31, 2024
 
 
 
1
 
 
40
%
2
 
 
17
%
 
Customer
 
Three Months
Ended
May 31, 2023
 
 
 
1
 
 
22
%
2
 
 
19
%
3
 
 
12
%
4
 
 
11
%
 
The Company’s receivables were concentrated among two customers as at May 31, 2024, and one customer as at February 29, 2024:
Customer
 
May 31,
2024
 
 
 
1
 
 
43
%
2
 
 
14
%
 
Customer
 
February 29
,
2024
 
 
 
1
 
 
65
%
v3.24.2
Commitments and Contingencies
 3 Months Ended
May 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
10.
Commitments and Contingencies
 
a)
On February 3, 2022 (the “Effective Date”), the former CEO of the Company and the Company entered into a Share Purchase and Separation Agreement (the “Agreement”) with the following terms: (a) former CEO sells the Company 7,125,000 shares of common stock of the Company and 3,700,000 shares of common stock of MiWay Finance, Inc. (the “Purchased Shares”), for $240,000, payable with a $150,000 cash payment within 10 days of the Effective Date; and (b) $10,000 per month for 9 consecutive months commencing April 1, 2022; (c) the Company will pay the former CEO current salary through February 2022; (d) former CEO shall retain ownership of 2,000,000 shares of the Company’s common stock subject to a lockup/leak out whereby the former CEO is prohibited from selling any of the 2,000,000 Shares for a period of 18 months and thereafter, shall be permitted to sell no more than 5,000 shares per month. In addition, the former CEO agreed to forgive the $10,000 promissory note and accrued interest entered on September 7, 2021 with the Company, as well as $1,170 in expenses incurred on behalf of the Company.  As of February 28, 2022, the Company received 7,025,000 of the 7,125,000 shares of common stock of the Company. The transaction closed on March 2, 2022, and the Company received the remaining 100,000 shares of common stock of the Company and 3,700,000 shares of common stock of Miway Finance Inc.
 
On September 1, 2023, the Company amended the Agreement with the former CEO of the Company. The amendment stipulates a revised payment structure, with the Company agreeing to pay a total of $170,000 for the Purchased Shares, including a $150,000 cash payment post-closing and two $10,000 monthly payments from April 1, 2022, all of which have been paid at the amendment date. As a result of the amendment, a total of $70,000 was forgiven related to the revised payments for the Purchased Shares resulting in a corresponding reduction in accounts payable and accrued liabilities, and additional paid-in capital. The Company and the former CEO of the Company have mutually released each other from all claims and liabilities related to the former CEO’s employment and termination, excluding those specified in the agreement. Additionally, the Company agreed to repurchase a total of 2,035,000 shares of common stock held by the former CEO of the Company in consideration for $23,500. All other terms of the original agreement remain in effect unless specifically modified by this addendum. On September 19, 2023, the Company repurchased and cancelled the 2,035,000 shares of common stock.
 
b)
On September 1, 2022, the Company entered into an agreement with a Director of the Company for a term of 12 months. In consideration for the services to be provided, the Company agreed to pay the Director 100,000 restricted shares of common stock that will vest bi-monthly over the 12 months. During the year ended February 28, 2023, the Company recognized board member compensation of $40,000, representing the fair value of 50,000 shares of common stock issuable for services rendered for the period from September 2022 to February 2023.  During the year ended February 28, 2023, the Company issued 33,333 of the 50,000 shares issuable, leaving a balance of 16,667 shares still issuable at February 28, 2023. During the year ended
February 29, 2024
, the Company recognized board member compensation of $40,000, representing the fair value of 50,000 shares of common stock issuable for services rendered for the period from March 2023 to August 2023. During the year ended
February 29, 2024
, another 50,000 shares were issued.
 
On August 16, 2023, the Company extended its Agreement with the Director for a new term of 12 months, effective September 1, 2023. In consideration of services to be rendered, the Company shall pay the director 100,000 restricted shares of common stock, of which 50,000 shares will vest every 6 months over the term. Pursuant to the terms of the extended agreement, the Company recognized board member compensation of $25,000, representing a fair value of 25,000 shares of common stock issuable for services rendered for the period from March 2024 to May 2024. As at
May 31, 2024
, a total of 91,667 shares (February 29, 2024 – 66,667 shares) of common stock remain issuable to the director.
 
c)
On March 1, 2023, the Company entered into agreements with a Director and COO of the Company for director services and management services for a term of 12 months and 3 years, respectively. In consideration for the services to be provided as a director, the Company agreed to pay the Officer and Director 100,000 restricted shares of common stock that will vest bi-monthly over the 12 months. In consideration for the services to be provided as the COO, the Company also agreed to pay the Officer and Director an additional 700,000 shares of common stock that will vest quarterly with 12 equal payments of 58,333 shares. During the year ended February 29, 2024, the Company recognized management fees of $233,330 and board member compensation of $100,000, representing the fair value of 333,330 shares of common stock issuable for services rendered for the period from March 2023 to February 2024. During the three months ended May 31, 2024, the Company recognized management fees of $58,332 and board member compensation of $nil, representing the fair value of 58,332 shares of common stock issuable for services rendered for the period from March 2024 to May 2024. As at May 31, 2024, a total of 308,329 (February 29, 2024 – 249,997 shares) shares of common stock remain issuable to the officer and director.
 
Management has evaluated commitments and contingencies and is unaware of any legal matters or other contingencies requiring disclosure through period-end.
 
v3.24.2
Deposit
 3 Months Ended
May 31, 2024
Deposit  
Deposit
11.
Deposit
 
On October 15, 2021, the Company paid a R800,000 deposit to set up an electronic funds transfer debit facility with a vendor, which does not require a physical facility. During the year ended February 29, 2024, R600,000 of the deposit was returned to the Company. As at May 31, 2024, the balance of the deposit was $10,608 (R200,000) (February 29, 2024
–
$10,408 (R200,000). The deposit will remain for as long as the Company uses the facility.
 
v3.24.2
Subsequent Event
 3 Months Ended
May 31, 2024
Subsequent Events [Abstract]  
Subsequent Event
12.
Subsequent Event
 
Management has evaluated subsequent events through the date that these financial statements were issued, and none were identified.
 
v3.24.2
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
May 31, 2024
Accounting Policies [Abstract]  
Basis of presentation
a)
Basis of Presentation
 
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S. dollars. The Company’s fiscal year end is February 28. The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiary, Rent Pay, and its controlled subsidiaries, Miway, Huntpal, and AML. The Company owns 48% of Miway, and 51% of both Huntpal and AML. All significant intercompany transactions and accounts have been eliminated in consolidation.
 
Interim financial statements
b)
Interim Financial Statements
 
The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end February 29, 2024, have been omitted.
 
Use of estimates
c)
Use of Estimates
 
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to useful life and recoverability of long-lived assets, and deferred income tax asset valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
 
Going concern
d)
Going Concern
 
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of May 31, 2024, the Company does not have revenues sufficient to execute its business plan. The Company intends to fund operations through equity financing arrangements. There is no assurance that this will be successful. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Recent accounting pronouncements
e)
Recent Accounting Pronouncements
 
The Company has implemented all new accounting pronouncements that are in effect and that may impact its unaudited consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
 
v3.24.2
Property and Equipment, Net (Tables)
 3 Months Ended
May 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of property and equipment
Property and equipment, net, consists of the following:
 
 
 
Cost
 
 
Accumulated
Depreciation
 
 
 
 
May 31,
2024
Net Carrying Value
 
 
 
 
 
 
February 29,
2024
Net Carrying Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Computer equipment
 
$
13,906
 
 
$
(10,276
)
 
$
3,630
 
 
$
4,186
 
Computer software
 
 
206,000
 
 
 
(205,755
)
 
 
245
 
 
 
325
 
Furniture and fixtures
 
 
9,787
 
 
 
(7,823
)
 
 
1,964
 
 
 
2,074
 
Motor vehicle
 
 
19,094
 
 
 
(4,338
)
 
 
14,756
 
 
 
15,414
 
Office equipment
 
 
4,212
 
 
 
(3,643
)
 
 
569
 
 
 
639
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
252,999
 
 
$
(231,835
)
 
$
21,164
 
 
$
22,638
 
v3.24.2
Right-Of-Use Assets, Net (Tables)
 3 Months Ended
May 31, 2024
Right-of-use Assets Net  
Schedule of right-of-use assets, net
Right-of-use assets, net, consist of the following:
 
 
 
Cost
 
 
Accumulated
Amortization
 
 
May 31,
2024
Net Carrying
Value
 
 
 
 
 
 
 
 
February 29,
2024
Net Carrying
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Right-of-use building (operating lease)
 
$
60,711
 
 
$
(47,127
)
 
$
13,584
 
 
$
18,169
 
Right-of-use vehicles (finance lease)
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
60,711
 
 
$
(47,127
)
 
$
13,584
 
 
$
18,169
 
v3.24.2
Lease Liabilities (Tables)
 3 Months Ended
May 31, 2024
Leases [Abstract]  
Schedule of Future Minimum Lease Payment
The following is a schedule by years of future minimum lease payments under the remaining finance leases together with the present value of the net minimum lease payments as of February 29, 2024:
 
Years ending February 28:
 
 
Building Lease
(Operating Lease)
 
 
 
 
 
 
 
2025
 
$
13,943
 
 
 
 
 
 
Net minimum lease payments
 
 
13,943
 
Less: amount representing interest payments
 
 
(359
)
 
 
 
 
 
Present value of net minimum lease payments
 
 
13,584
 
Less: current portion
 
 
(13,584
)
 
 
 
 
 
Long-term portion
 
$
–
 
v3.24.2
Concentrations (Tables)
 3 Months Ended
May 31, 2024
Risks and Uncertainties [Abstract]  
Schedules of Concentration of Risk, by Risk Factor
 
The Company’s revenues were concentrated among two customers for the three months ended May 31, 2024, and four customers
for
the three months ended May 31, 2023.
Customer
 
Three Months
Ended
May 31, 2024
 
 
 
1
 
 
40
%
2
 
 
17
%
 
Customer
 
Three Months
Ended
May 31, 2023
 
 
 
1
 
 
22
%
2
 
 
19
%
3
 
 
12
%
4
 
 
11
%
 
The Company’s receivables were concentrated among two customers as at May 31, 2024, and one customer as at February 29, 2024:
Customer
 
May 31,
2024
 
 
 
1
 
 
43
%
2
 
 
14
%
 
Customer
 
February 29
,
2024
 
 
 
1
 
 
65
%
v3.24.2
Summary of Significant Accounting Policies (Details Narrative)
Feb. 29, 2024
Feb. 28, 2023
MiWay Finance [Member]    
Accounting Policies [Line Items]    
Equity method investment ownership percentage 48.00% 51.00%
v3.24.2
Property and Equipment, Net (Details) - USD ($)
May 31, 2024
Feb. 29, 2024
Property, Plant and Equipment [Line Items]    
Cost $ 252,999  
Accumulated Depreciation (231,835)  
Net Carrying Value 21,164 $ 22,638
Computer equipment [Member]    
Property, Plant and Equipment [Line Items]    
Cost 13,906  
Accumulated Depreciation (10,276)  
Net Carrying Value 3,630 4,186
Computer software [Member]    
Property, Plant and Equipment [Line Items]    
Cost 206,000  
Accumulated Depreciation (205,755)  
Net Carrying Value 245 325
Furniture and fixtures [Member]    
Property, Plant and Equipment [Line Items]    
Cost 9,787  
Accumulated Depreciation (7,823)  
Net Carrying Value 1,964 2,074
Motor vehicle [Member]    
Property, Plant and Equipment [Line Items]    
Cost 19,094  
Accumulated Depreciation (4,338)  
Net Carrying Value 14,756 15,414
Office equipment [Member]    
Property, Plant and Equipment [Line Items]    
Cost 4,212  
Accumulated Depreciation (3,643)  
Net Carrying Value $ 569 $ 639
v3.24.2
Property and Equipment, Net (Details Narrative) - USD ($)
 3 Months Ended
May 31, 2024
May 31, 2023
Property, Plant and Equipment [Line Items]    
Depreciation $ 1,904 $ 9,719
Payments to acquire property, plant, and equipment   23,171
Computer equipment [Member]    
Property, Plant and Equipment [Line Items]    
Payments to acquire property, plant, and equipment 0 1,182
Motor vehicle [Member]    
Property, Plant and Equipment [Line Items]    
Payments to acquire property, plant, and equipment $ 0 $ 21,991
v3.24.2
Right-Of-Use Assets, Net (Details) - USD ($)
 3 Months Ended
May 31, 2024
Feb. 29, 2024
Lease, cost $ 60,711  
Accumulated depreciation (47,127)  
Right-of-use assets, net 13,584 $ 18,169
Building Lease [Member]    
Operating lease, cost 60,711  
Right-of-use building, accumulated amortization (47,127)  
Operating lease, right-of-use asset 13,584 18,169
Vehicle Leases [Member]    
Finance lease, cost 0  
Right-of-use vehicles, accumulated amortization 0  
Finance lease, right-of-use asset $ 0 $ 0
v3.24.2
Right-Of-Use Assets, Net (Details Narrative)
 3 Months Ended 12 Months Ended
May 10, 2023
USD ($)
May 10, 2023
INR (₨)
May 31, 2024
USD ($)
May 31, 2023
USD ($)
Feb. 29, 2024
USD ($)
Right-of-use Assets Net          
Rent expense     $ 5,268 $ 5,022  
Operating lease, right-of-use asset, amortization expense     0 888  
Gain (loss) on termination of lease $ 1,052 ₨ 19,480 $ 0 $ 1,052 $ 1,042
Carrying value of lease         1,894
Remaining lease liability         $ 2,936
v3.24.2
Due to Related Parties (Details Narrative)
 3 Months Ended 12 Months Ended
Feb. 11, 2022
USD ($)
Sep. 07, 2021
USD ($)
Mar. 24, 2021
USD ($)
May 31, 2024
USD ($)
May 31, 2024
INR (₨)
Feb. 29, 2024
USD ($)
Feb. 29, 2024
INR (₨)
Sep. 09, 2022
USD ($)
May 02, 2022
USD ($)
Feb. 28, 2022
USD ($)
Apr. 14, 2021
USD ($)
Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties, current       $ 61,138   $ 54,774          
Chief Operating Officer [Member] | Deferred Compensation Arrangement with Individual Three [Member]                      
Related Party Transaction [Line Items]                      
Deferred share based compensation arrangement management fees incurred       58,332   233,330          
Chief Operating Officer [Member] | Deferred Compensation Arrangement with Individual Three [Member] | Director And Officer Agreement One [Member]                      
Related Party Transaction [Line Items]                      
Deferred share based compensation arrangement management fees incurred       58,332   0          
Chief Executive Officer [Member]                      
Related Party Transaction [Line Items]                      
Salary and wage, officer, excluding cost of good and service sold       26,357 ₨ 493,258 30,870 ₨ 571,629        
Chief Executive Officer [Member] | Convertible Notes Payable [Member]                      
Related Party Transaction [Line Items]                      
Notes payable     $ 10,000                
Debt instrument, interest rate, stated percentage     10.00%                
Debt instrument, maturity date     Mar. 24, 2022                
Chief Executive Officer [Member] | Convertible Notes Payable [Member] | Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties, current       10,000   10,000          
Due to related parties       3,253   2,963          
Chief Executive Officer [Member] | Convertible Notes Payable 1 [Member]                      
Related Party Transaction [Line Items]                      
Notes payable   $ 10,000                  
Debt instrument, interest rate, stated percentage   10.00%                  
Debt instrument, maturity date   Mar. 07, 2022                  
Chief Executive Officer [Member] | Convertible Notes Payable 1 [Member] | Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties, current       10,000   10,000          
Due to related parties       2,732   2,479          
Chief Executive Officer [Member] | Convertible Notes Payable 2 [Member]                      
Related Party Transaction [Line Items]                      
Notes payable $ 20,000                    
Debt instrument, interest rate, stated percentage 10.00%                    
Chief Executive Officer [Member] | Convertible Notes Payable 2 [Member] | Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties, current       20,000   20,000          
Due to related parties       4,603   4,099          
Director [Member]                      
Related Party Transaction [Line Items]                      
Notes payable                     $ 26,000
Debt instrument, interest rate, stated percentage                     10.00%
Director [Member] | Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties, current       26,000   26,000          
Due to related parties       8,142   7,487          
Director [Member] | Director Agreement [Member]                      
Related Party Transaction [Line Items]                      
Salary and wage, officer, excluding cost of good and service sold       25,000   20,000          
Director [Member]                      
Related Party Transaction [Line Items]                      
Notes payable $ 130,000                    
Debt instrument, interest rate, stated percentage 10.00%                    
Debt instrument, maturity date Feb. 11, 2023                    
Salary and wage, officer, excluding cost of good and service sold       1,202 ₨ 22,500 0          
Director [Member] | Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties, current       130,000   130,000          
Due to related parties       29,918   $ 26,641          
Director [Member] | Third Party Lender1 [Member]                      
Related Party Transaction [Line Items]                      
Notes payable                   $ 15,000  
Debt instrument, interest rate, stated percentage                   10.00%  
Debt instrument, maturity date           Oct. 13, 2023 Oct. 13, 2023        
Director [Member] | Third Party Lender1 [Member] | Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties, current       15,000   $ 15,000          
Due to related parties       4,697   4,319          
Director [Member]                      
Related Party Transaction [Line Items]                      
Notes payable                 $ 25,000    
Debt instrument, interest rate, stated percentage                 10.00%    
Director [Member] | Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties       5,205   4,575          
Director [Member] | Director Agreement [Member] | Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties, current       25,000   25,000          
Director [Member]                      
Related Party Transaction [Line Items]                      
Notes payable               $ 15,000      
Debt instrument, interest rate, stated percentage               10.00%      
Director [Member] | Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties       2,589   2,211          
Director [Member] | Director Agreement [Member] | Related Party [Member]                      
Related Party Transaction [Line Items]                      
Due to related parties, current       $ 15,000   $ 15,000          
v3.24.2
Notes Payable (Details Narrative) - USD ($)
Oct. 22, 2021
May 27, 2020
May 31, 2024
Feb. 29, 2024
May 20, 2020
Third Party Lender [Member]          
Debt Instrument [Line Items]          
Notes payable         $ 25,000
Debt Instrument, Interest Rate, Stated Percentage         10.00%
Accounts Payable, Current     $ 10,082 $ 9,452  
Third Party Lender 2 [Member]          
Debt Instrument [Line Items]          
Notes payable $ 25,500        
Debt Instrument, Interest Rate, Stated Percentage 10.00%        
Debt Instrument, Maturity Date Oct. 13, 2023        
Accounts Payable, Current     6,651 6,008  
U S Small Business Administration [Member]          
Debt Instrument [Line Items]          
Notes payable   $ 77,800      
Debt Instrument, Interest Rate, Stated Percentage   3.75%      
Debt instrument, periodic payment   $ 380      
Accounts Payable, Current     $ 10,930 $ 10,195  
v3.24.2
Lease Liabilities (Details) - Building Lease [Member]
Feb. 29, 2024
USD ($)
2025 $ 13,943
Net minimum lease payments 13,943
Less: amount representing interest payments (359)
Present value of net minimum lease payments 13,584
Less: current portion (13,584)
Long-term portion $ 0
v3.24.2
Lease Liabilities (Details Narrative)
 3 Months Ended 12 Months Ended
May 10, 2023
USD ($)
May 10, 2023
INR (₨)
Feb. 01, 2021
USD ($)
May 31, 2024
USD ($)
May 31, 2023
USD ($)
Feb. 29, 2024
USD ($)
May 31, 2024
INR (₨)
Jan. 26, 2023
USD ($)
Feb. 01, 2021
INR (₨)
Lessee, Lease, Description [Line Items]                  
Finance and operating lease interest rate       11.25%          
Repayment of lease liabilities $ 2,549 ₨ 47,204     $ 1,021        
Gain (loss) on termination of lease $ 1,052 ₨ 19,480   $ 0 $ 1,052 $ 1,042      
South Africa [Member] | Office Space [Member]                  
Lessee, Lease, Description [Line Items]                  
Operating lease term     2 years           2 years
Operating lease annual increase in base rent percentage     7.00%            
South Africa [Member] | Office Space [Member] | First year [Member]                  
Lessee, Lease, Description [Line Items]                  
Operating lease monthly rent payable     $ 1,176           ₨ 22,000
South Africa [Member] | Office Space [Member] | Second year [Member]                  
Lessee, Lease, Description [Line Items]                  
Operating lease monthly rent payable     1,258           23,540
South Africa [Member] | Office Space [Member] | Third year [Member]                  
Lessee, Lease, Description [Line Items]                  
Operating lease monthly rent payable     1,346           25,188
South Africa [Member] | Office Space [Member] | Final year [Member]                  
Lessee, Lease, Description [Line Items]                  
Operating lease monthly rent payable     $ 1,440           ₨ 26,951
South Africa [Member] | Office Space As Per Renewal Agreement [Member]                  
Lessee, Lease, Description [Line Items]                  
Operating lease renewal term     2 years           2 years
Operating lease weighted average discount rate percentage               7.00%  
South Africa [Member] | Office Space As Per Renewal Agreement [Member] | First year [Member]                  
Lessee, Lease, Description [Line Items]                  
Operating lease monthly rent payable               $ 1,657 ₨ 31,000
South Africa [Member] | Office Space As Per Renewal Agreement [Member] | Second year [Member]                  
Lessee, Lease, Description [Line Items]                  
Operating lease monthly rent payable               $ 1,756 ₨ 32,860
Vehicles [Member]                  
Lessee, Lease, Description [Line Items]                  
Repayment of lease liabilities       0   $ 1,021      
Vehicles 1 [Member]                  
Lessee, Lease, Description [Line Items]                  
Finance lease, liability       $ 505     ₨ 9,456    
v3.24.2
Common Stock (Details Narrative) - USD ($)
 3 Months Ended
May 31, 2024
May 31, 2023
Common Stock [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Common stock subscriptions received for unissued shares value   $ 10,000
Deferred Compensation Arrangement with Individual Three [Member] | New Director [Member] | Director Agreement One [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Deferred share based compensation arrangement management fees incurred $ 83,332  
Deferred compensation arrangement with individual, common stock reserved for future issuance 83,332  
v3.24.2
Concentrations (Details) - Customer Concentration Risk [Member]
 3 Months Ended 12 Months Ended
May 31, 2024
May 31, 2023
Feb. 29, 2024
Revenue Benchmark [Member] | Customer One [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage 40.00% 22.00%  
Revenue Benchmark [Member] | Customer Two [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage 17.00% 19.00%  
Revenue Benchmark [Member] | Customer Three [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage   12.00%  
Revenue Benchmark [Member] | Customer Four [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage   11.00%  
Accounts Receivable [Member] | Customer One [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage 43.00%   65.00%
Accounts Receivable [Member] | Customer Two [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage 14.00%    
v3.24.2
Commitments and Contingencies (Details Narrative) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Sep. 19, 2023
Sep. 01, 2023
Sep. 01, 2022
Mar. 02, 2022
Feb. 28, 2022
Feb. 03, 2022
Sep. 07, 2021
Sep. 30, 2023
May 31, 2024
Feb. 29, 2024
Feb. 28, 2022
Aug. 31, 2023
Mar. 01, 2023
Feb. 28, 2023
Other Commitments [Line Items]                            
Common stock, shares, outstanding                 15,708,544 15,708,544        
Share Repurchase And Separation Agreement [Member] | Former CEO [Member]                            
Other Commitments [Line Items]                            
Debt instrument decrease forgiveness   $ 70,000                        
Stock repurchased and retired during period, shares 2,035,000                          
Payable for the repurchases of common stock   170,000                        
Cash payable for the repurchase of common stock   150,000                        
Stock repurchased during the period shares               2,035,000            
Stock repurchased during the period value               $ 23,500            
Share Repurchase And Separation Agreement [Member] | Tranche One [Member] | Former CEO [Member]                            
Other Commitments [Line Items]                            
Monthly payments for the repurchase of common stock   10,000                        
Share Repurchase And Separation Agreement [Member] | Tranche Two [Member] | Former CEO [Member]                            
Other Commitments [Line Items]                            
Monthly payments for the repurchase of common stock   $ 10,000                        
Chief Financial Officer [Member]                            
Other Commitments [Line Items]                            
Number of shares authorized to be repurchased           7,125,000                
Shares authorized to be repurchased value           $ 240,000                
Payment for the repurchase of the shares           150,000                
Amount payable for the repurchase of shares           $ 10,000                
Common stock, shares, outstanding           2,000,000                
Threshold limit of sale of stocks per month           5,000                
Debt instrument decrease forgiveness             $ 10,000              
Interest expense forgiven             $ 1,170              
Stock repurchased and retired during period, shares         7,025,000 7,125,000                
Chief Financial Officer [Member] | MiWay Finance, Inc. [Member]                            
Other Commitments [Line Items]                            
Number of shares of the acquiring company authorized to be repurchased           3,700,000                
Stock repurchased and retired during period, shares       100,000                    
Number of shares of the acquired company repurchased during the period       3,700,000                    
Director [Member] | Deferred Compensation Arrangement with Individual [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual, shares authorized for issuance     100,000                      
Deferred compensation arrangement with individual requisite service period     12 months                      
Deferred compensation arrangement with individual shares issued                   50,000        
Deferred compensation arrangement with individual fair value of shares issued                   $ 40,000 $ 33,333      
Deferred compensation arrangement with individual allocated share based compensation expense                 $ 25,000   $ 40,000      
Deferred compensation arrangement with individual aggregate number of shares issuable during the period                 25,000 50,000 50,000      
Deferred compensation arrangement with individual shares unissued                 91,667     16,667   66,667
Director [Member] | Deferred Compensation Arrangement With Individual One [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual, shares authorized for issuance   100,000                        
Director [Member] | Deferred Compensation Arrangement With Individual One [Member] | Restricted Stock [Member] | Tranche One [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual, shares authorized for issuance   50,000                        
Deferred compensation arrangement with individual requisite vesting period               6 months            
Director [Member] | Deferred Compensation Arrangement With Individual One [Member] | Restricted Stock [Member] | Tranche Two [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual, shares authorized for issuance   50,000                        
Deferred compensation arrangement with individual requisite vesting period               6 months            
New Director [Member] | Deferred Compensation Arrangement with Individual Two [Member] | Restricted Stock [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual, shares authorized for issuance                         100,000  
Deferred compensation arrangement with individual requisite vesting period                   12 months        
Deferred compensation arrangement with individual maximum contractual term                   12 months        
New Director [Member] | Deferred Compensation Arrangement with Individual Three [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual compensation expense                 $ 0 $ 100,000        
Deferred share based compensation with individual shares issuable during the period                 58,332          
New Director [Member] | Deferred Compensation Arrangement with Individual Three [Member] | Restricted Stock [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual, shares authorized for issuance                         700,000  
Deferred share based compensation arrangement with individual vesting per tranche                         58,333  
Officer [Member] | Deferred Compensation Arrangement with Individual Two [Member] | Restricted Stock [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual, shares authorized for issuance                         100,000  
Deferred compensation arrangement with individual requisite vesting period                   12 months        
Officer [Member] | Deferred Compensation Arrangement with Individual Three [Member] | Restricted Stock [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual, shares authorized for issuance                         700,000  
Deferred share based compensation arrangement with individual vesting per tranche                         58,333  
Chief Operating Officer And New Director [Member] | Deferred Compensation Arrangement with Individual Three [Member]                            
Other Commitments [Line Items]                            
Deferred share based compensation with individual shares issuable during the period                   333,330        
Chief Operating Officer [Member] | Deferred Compensation Arrangement with Individual Three [Member]                            
Other Commitments [Line Items]                            
Deferred share based compensation arrangement management fees incurred                 $ 58,332 $ 233,330        
Management [Member] | Deferred Compensation Arrangement with Individual Two [Member] | Restricted Stock [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual maximum contractual term                   3 years        
Director [Member] | Deferred Compensation Arrangement with Individual [Member]                            
Other Commitments [Line Items]                            
Deferred compensation arrangement with individual shares unissued                 308,329 249,997        
v3.24.2
Deposit (Details Narrative)
 12 Months Ended
Oct. 15, 2021
INR (₨)
Feb. 29, 2024
INR (₨)
May 31, 2024
USD ($)
May 31, 2024
INR (₨)
Feb. 29, 2024
USD ($)
Feb. 29, 2024
INR (₨)
Deposit            
Payment towards deposits ₨ 800,000          
Return from deposit   ₨ 600,000        
Deposits     $ 10,608 ₨ 200,000 $ 10,408 ₨ 200,000
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