DEBT AND OTHER OBLIGATIONS	6 Months Ended
Aug. 31, 2012
DEBT AND OTHER OBLIGATIONS
DEBT AND OTHER OBLIGATIONS	5. DEBT AND OTHER OBLIGATIONS Debt and other obligations consist of the following: August 31, 2012 February 29, 2012 --------------- ----------------- Loan payable - individual - unsecured, interest bearing, $ 23,716 $ 26,546 no fixed repayment terms Loan payable - individual - unsecured, interest bearing, no fixed repayment terms 11,858 -- Loan payable - individual - unsecured, interest bearing, no fixed repayment terms 59,289 66,366 Loan payable - individual - unsecured, interest bearing, no fixed repayment terms 65,218 90,257 Loan payable - individual - unsecured, interest bearing, no fixed repayment terms 77,531 104,373 Loan payable - other - unsecured, interest bearing, no fixed repayment terms 83,504 252,488 Loan payable - bank- Secured by company vehicles, bearing an interest rate of JIBAR plus 5% per annum, payable in quarterly installments beginning 9/30/12 2,964,439 -- Loan payable - Jay & Jayendra (Pty) Ltd. Secured by company vehicles, bearing an interest rate of the prime rate, payable within 12 months -- 159,278 Loan payable - other - unsecured, 2% per month interest, repayable within 60 days after year end, subject to default immediate repayment stipulation -- 119,458 Loan payable - other - unsecured, interest bearing, no fixed repayment terms 56,787 60,285 ---------- ---------- Total $3,342,342 $ 879,051 ---------- ---------- Current portion of loans payable 658,241 152,243 ---------- ---------- Long-term portion of loans payable $2,684,101 $ 726,808 ========== ========== Expected maturities of debt and other obligations outstanding at August 31, 2012 are as follows: Loan Amounts Lease Amounts Total ------------ ------------- ----- Year ending August 31, 2013 $ 658,241 $ 234,561 $ 892,802 Year ending August 31, 2014 987,362 161,735 1,149,097 Year ending August 31, 2015 987,362 68,975 1,056,337 Year ending August 31, 2016 263,954 13,168 277,122 Year ending August 31, 2017 -- -- -- Thereafter 445,423 -- -- ---------- ---------- ---------- Total $3,342,342 $ 478,439 $3,375,358 ========== ========== ========== Installment sales and lease contracts are secured by installment sales and finance lease agreements over revenue generating vehicles, having 2012 carrying values of $419,505 and 1,263,394 respectively. These installment sales and lease contracts are repayable in monthly installments for 2012 of $17,422 and $4,502 respectively.

DEBT AND OTHER OBLIGATIONS

6 Months Ended

Aug. 31, 2012

5. DEBT AND OTHER OBLIGATIONS

Debt and other obligations consist of the following:

                                                                  August 31, 2012    February 29, 2012

                                                                  ---------------    -----------------

Loan payable - individual - unsecured, interest bearing,           $   23,716          $   26,546

 no fixed repayment terms

Loan payable - individual - unsecured, interest bearing,

 no fixed repayment terms                                              11,858                  --

Loan payable - individual - unsecured, interest bearing,

 no fixed repayment terms                                              59,289              66,366

Loan payable - individual - unsecured, interest bearing,

 no fixed repayment terms                                              65,218              90,257

Loan payable - individual - unsecured, interest bearing,

 no fixed repayment terms                                              77,531             104,373

Loan payable - other - unsecured, interest bearing, no

 fixed repayment terms                                                 83,504             252,488

Loan payable - bank- Secured by company vehicles, bearing

 an interest rate of JIBAR plus 5% per annum, payable in

 quarterly installments beginning 9/30/12                           2,964,439                  --

Loan payable - Jay & Jayendra (Pty) Ltd. Secured by

 company vehicles, bearing an interest rate of the prime

 rate, payable within 12 months                                            --             159,278

Loan payable - other - unsecured, 2% per month interest,

 repayable within 60 days after year end, subject to

 default immediate repayment stipulation                                   --             119,458

Loan payable - other - unsecured, interest bearing, no

 fixed repayment terms                                                 56,787              60,285

                                                                   ----------          ----------

Total                                                              $3,342,342          $  879,051

                                                                   ----------          ----------

Current portion of loans payable                                      658,241             152,243

                                                                   ----------          ----------

Long-term portion of loans payable                                 $2,684,101          $  726,808

                                                                   ==========          ==========

Expected maturities of debt and other obligations outstanding at August 31, 2012

are as follows:

                                    Loan Amounts        Lease Amounts           Total

                                    ------------        -------------           -----

Year ending August 31, 2013          $  658,241          $  234,561          $  892,802

Year ending August 31, 2014             987,362             161,735           1,149,097

Year ending August 31, 2015             987,362              68,975           1,056,337

Year ending August 31, 2016             263,954              13,168             277,122

Year ending August 31, 2017                  --                  --                  --

Thereafter                              445,423                  --                  --

                                     ----------          ----------          ----------

Total                                $3,342,342          $  478,439          $3,375,358

                                     ==========          ==========          ==========

Installment sales and lease contracts are secured by installment sales and

finance lease agreements over revenue generating vehicles, having 2012 carrying

values of $419,505 and 1,263,394 respectively. These installment sales and lease

contracts are repayable in monthly installments for 2012 of $17,422 and $4,502

respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Earn-A-Car Inc. 10-Q