8 EQUITY TRANSACTIONS

12 Months Ended

Feb. 28, 2014

Equity [Abstract]

8 EQUITY TRANSACTIONS

NOTE 8:   EQUITY TRANSACTIONS

Restricted Stock Grants

During fiscal year 2014, 20,000 shares of restricted common stock were issued by the Company for services rendered valued at $4,600.  During fiscal year 2013, 33,500 shares of restricted common stock were issued by the Company for services rendered valued at $9,400.   All shares of restricted stock were fully vested upon issuance but not able to be traded on the open market upon issuance.  The values recorded were based on the estimated fair value of the stock on the dates of grant.

Warrants

A summary of warrant activity for the fiscal years ended February 28, 2014 and 2013 is shown below.

				Weighted-
				Average
	Warrants			Exercise
	Outstanding			Price
Outstanding at March 1, 2012		8,467,221			0.21
Granted		-
Exercised		-			-
Forfeited		-
Outstanding at February 28, 2013		8,467,221			0.21
Granted		-
Exercised		-			-
Forfeited		(60,000	)
Outstanding at February 28, 2014		8,407,221			0.21
Vested at February 28, 2014		5,044,333			0.21
Exercisable at February 28, 2014		5,044,333			0.21

 The following table summarizes significant ranges of outstanding warrants as of February 28, 2014:

	Warrants Outstanding			Warrants Exercisable
		Weighted	Weighted		Weighted
		Average	Average		Average
		Remaining	Exercise	Number	Exercise
Exercise Price	Number	Life (Years)	Price	Outstanding	Price
$   0.21	8,407,221	6.79	$   0.21	5,044,333	$   0.21

During the year ended February 28, 2011, 8,467,221 warrants were issued to employees and related parties for future services to be rendered, with a vesting term of five (5) years and an exercise price of $0.21.  The fair value of these warrants on the date of grant totaled approximately $1.7 million and is being amortized to income over the vesting period.  During the year ended February 28, 2014, 60,000 warrants were forfeited upon termination of employment of two employees.

As of February 28, 2014 the total outstanding warrants had an intrinsic value of $3,531,033.