NOTE 1: CONDENSED
The accompanying condensed consolidated
financial statements have been prepared by Seychelle Environmental Technologies, Inc., and subsidiary (the Company)
without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary
to present fairly the financial position, results of operations, and cash flows at May 31, 2012, and for all periods presented
herein, have been made.
Certain information and footnote disclosures
normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States
of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be
read in conjunction with the consolidated financial statements and notes thereto included in the Companys annual report
on Form 10-K for the year ended February 29, 2012. The results of operations for the periods ended May 31, 2012 and
2011 are not necessarily indicative of the operating results for the full fiscal years.
The summary of significant accounting policies of the Company
is presented to assist in understanding the Companys financial statements. The financial statements and notes are representations
of the Companys management, which is responsible for their integrity and objectivity. These accounting policies conform
to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation
of the condensed consolidated financial statements and the February 29, 2012 consolidated financials included in the 10-K filed
on May 29, 2012.
The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results
could differ from those estimates.
In 2011, the Financial Accounting Standards Board (FASB)
issued Accounting Standards Update (ASU) No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair
Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This ASU represents the converged guidance of the FASB
and the IASB (the Boards) on fair value measurement and results in common requirements for measuring fair value and for disclosing
information about fair value measurements, including a consistent meaning of the term fair value.
In September 2011, the FASB issued guidance on ASC 350,
Intangibles-Goodwill and Other, for testing goodwill for impairment. The new guidance provides a company the option to
perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less
than its carrying amount. If the companys assessment determines that this is the case, it is required to perform the currently
prescribed two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment
to be recognized for that reporting unit, if any. If the company determines it is more likely than not that the fair value of
a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required.
For public entities, the amendments are effective during
interim and annual periods beginning after December 15, 2011. The Company adopted this guidance effective March 1, 2012. The
impact of the adoption of this guidance did not have a material impact on the Companys condensed consolidated financial