DEFERRED FINANCING COSTS

6 Months Ended

Aug. 31, 2014

Notes to Financial Statements

DEFERRED FINANCING COSTS

We defer certain costs associated with financing activities related to the issuance of equity securities (deferred offering costs) and debt securities (deferred financing costs). These costs consist primarily of legal, banking and other professional fees related to the transactions. Upon successful completion of the offering of equity securities, deferred offering costs are recorded as a reduction of the net proceeds in paid in capital. If the offering is not successful, such costs will be expensed. Deferred financing costs are amortized over the life of the related debt.

Deferred financing costs consisted of the following:

	August 31, 2014			February 28, 2014
Deferred financing costs	$	366,548		$	99,000
Less: accumulated amortization		(99,000	)		(94,222	)
Deferred financing costs, net	$	267,548		$	4,778
Less: Current portion		89,183			4,778
Long-term portion	$	178,365		$	—