8 EQUITY TRANSACTIONS

12 Months Ended

Feb. 28, 2015

Equity [Abstract]

EQUITY TRANSACTIONS

NOTE 8:   EQUITY TRANSACTIONS

Restricted Stock Grants

During the year ended February 28, 2015, 60,000 shares of restricted stock were issued by the Company to employees. 50,000 shares vest over a two year period, whereby 17,000 shares vested upon issue, and 17,000 and 16,000 shares vest after one and two years, respectively. The value recorded in the accompanying consolidated financial statements related to the portion vested during the fiscal year, based on the estimated fair value of the stock on the date of the grant, was approximately $16,000. The other 10,000 shares were fully vested upon issuance. The value recorded in the accompanying consolidated financial statements was based on the estimated fair value of the stock on the date of the grant was approximately $3,800.

During year ended February 28, 2014, 20,000 shares of restricted common stock were issued by the Company for services rendered valued at $4,600.    The shares of restricted stock were fully vested upon issuance but not able to be traded on the open market upon issuance.  The value recorded was 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, 2015 and 2014 is shown below.

				Weighted-
				Average
	Warrants			Exercise
	Outstanding			Price
Outstanding at March 1, 2013		8,467,221			0.21
Granted		-			-
Exercised		-			-
Forfeited		(60,000	)		-
Outstanding at February 28, 2014		8,407,221			0.21
Granted		-			-
Exercised		-			-
Forfeited		-			-
Outstanding at February 28, 2015		8,407,221			0.21
Vested at February 28, 2015		6,725,777			0.21
Exercisable at February 28, 2015		6,725,777			0.21

 The following table summarizes significant ranges of outstanding warrants as of February 28, 2015:

		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		5.79	$	0.21		6,725,777	$	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, 2015 and 2014, the total outstanding warrants had an intrinsic value of $0 and $3,531,033, respectively.