4. COMMON STOCK PURCHASE WARRANTS

3 Months Ended

May 31, 2016

Notes to Financial Statements

COMMON STOCK PURCHASE WARRANTS

NOTE 4:   COMMON STOCK PURCHASE WARRANTS

Common Stock

During the quarter ended May 31, 2016, 250,000 shares of restricted stock were issued by the Company to an employee.

During the three months ended May 31, 2016, the Company repurchased 30,000 shares of common stock for a costs of $17,400.  This repurchase has been recorded as treasury stock and reflected as a reduction of stockholders' equity on the accompanying condensed consolidated balance sheet

Warrants

The Company had previously granted warrants to selected members of management and determined the estimated value of warrants granted using the Black-Scholes option pricing model. The warrants became fully vested during the year ended February 29, 2016.  The amount of the expense charged to operations for these warrants was $0 and $67,199 for the three months ended May 31, 2016 and 2015, respectively.  

A summary of warrant activity for the three months ended May 31, 2016 is as follows:

			Weighted-
			Average
	Warrants		Exercise
	Outstanding		Price
Outstanding at February 29, 2016		6,407,221		0.21
Granted		-		-
Exercised		-		-
Forfeited		-		0.21
Outstanding at May 31, 2016		6,407,221		0.21
Vested at May 31, 2016		6,407,221		0.21
Exercisable at May 31, 2016		6,407,221		0.21

The following table summarizes significant ranges of outstanding warrants as of May 31, 2016:

		Warrants Outstanding				Warrants Exercisable
			Weighted	Weighted			Weighted
			Average	Average			Average
		Number	Remaining	Exercise		Number	Exercise
Exercise Price		Outstanding	Life (Years)	Price		Outstanding	Price
	$0.21	6,407,221	4.54		$0.21	6,407,221		$0.21