WARRANTS

3 Months Ended

May 31, 2012

Notes to Financial Statements

NOTE 4 - WARRANTS

On November 14, 2011, the Company entered into consulting agreement with Burnham Hill Advisors, LLC whereby we issued warrants to purchase an aggregate of 220,000 shares of common stock at an exercise price of $0.68 per share. The fair value of these warrants was determined to be $149,999, as calculated using the Black-Scholes model. Assumption used in the Black-Scholes model included: (1) a discount rate of 0.91%; (2) an expected term of 5 years; (3) an expected volatility of 403%; and (4) zero expected dividends.

During the year ended February 29, 2012, the Company granted 1,497,214 warrants, together with shares of common stock, issued on January 31, 2012, exercisable at $0.91 per share and expiring on January 31, 2017. The Company also granted 216,250 warrants on February 27, 2012 exercisable at $1.40 per share and expiring on February 27, 2016.

Immediately prior to the Share Exchange, PVSO issued 350,000 warrants exercisable at $1.40 per share.

For the three months ended May 31, 2012, the Company issued 220,000 warrants in connection with the May 2012 Private Placement referenced in Note 2.  These warrants were issued on May 1, 2012 and are exercisable at $1.40 per share and expire on May 1, 2016.  These warrants vest immediately.

The following table summarizes common stock purchase warrants issued and outstanding:

	Warrants	Weighted average exercise price		Aggregate intrinsic value		Weighted average remaining contractual life (years)
Outstanding at February 28, 2012	2,283,372	$	1.01	$	2,283,372		4.83
Granted in May 2012 Private Placement	220,000	$	1.40	$	737,000		3.92
Outstanding at May 31, 2012	2,503,372	$	1.04	$	9,279,255		4.52

Warrants exercisable at May 31, 2012 are:

Exercise				Weighted average		Exercisable number of
prices		Number of shares		remaining life (years)		shares
$	0.68		220,000		4.46		220,000
$	0.91		1,497,122		4.67		1,497,122
$	1.40		216,250		4.67		216,250
$	1.40		350,000		5.75		350,000
$	1.40		220,000		3.92		220,000