3. EQUITY

12 Months Ended

Feb. 28, 2021

Equity [Abstract]

EQUITY

Stock Split

On July 27, 2020, the Company effected a 20-for-1 stock split of its common stock in the form of a stock dividend. The Company has retroactively restated its stockholders’ equity section by increasing common stock and decreasing additional paid in capital for the par value of the shares to show the impact of the 20-to-1 increase in number of shares outstanding.

Incentive Stock Options

On August 8, 2020, we granted non-qualified stock options to purchase up to 3,000,000 shares of our common stock at the exercise price of $0.50 per share for a ten-year term to certain of our officers, directors and consultants who are performing additional unanticipated work involved with executing the Company’s business plan and who are not being paid cash compensation. The total fair value of these option grants at issuance was $1,417,640. Subsequent to the options vesting, the officers, directors and consultants who received these options surrendered 2,250,000 stock options in exchange for no consideration.

On November 19, 2020, the Board of Directors of the Company amended the Healthcare Business Resources, Inc. 2020 Equity Incentive Plan (the “2020 Plan”). The amendment of the 2020 Plan increased the number of shares reserved to 8,000,000 shares of common stock. 

On December 31, 2020, we granted non-qualified stock options to purchase up to 10,000 shares of our common stock at the exercise price of $0.50 per share for a five-year term a consultant who are performing additional unanticipated work involved with executing the Company’s business plan and who are not being paid cash compensation. The total fair value of these option grants at issuance was $4,003. The 10,000 shares will vest at a rate of 2,000 share per year until the option is 100% vested.

On January 31, 2021, we granted non-qualified stock options to purchase up to 25,000 shares of our common stock at the exercise price of $0.50 per share for a five-year term a consultant who are performing additional unanticipated work involved with executing the Company’s business plan and who are not being paid cash compensation. The total fair value of these option grants at issuance was $9,990. The 25,000 shares will vest at a rate of 1,000 share per month until the option is 100% vested.

During the year ended February 28, 2021, the Company recognized $1,418,173 of stock-based compensation related to outstanding stock options. At February 28, 2021, the Company had $13,460 of unrecognized expenses related to options.

The following table discloses information regarding outstanding and exercisable options at February 28, 2021:

				Weighted Average
	Number of Options			Exercise Price Per Share
Outstanding at February 29, 2020		-		$	-
Granted		3,035,000			0.50
Exercised		-			-
Forfeited and expired		(2,250,000	)		0.50
Outstanding at February 28, 2021		785,000			0.50

The following table discloses information regarding outstanding and exercisable options at February 28, 2021:

		Outstanding						Exercisable
				Weighted Average		Weighted Average				Weighted Average
Exercise Price		Number of Options		Exercise Price Per Share		Remaining Life (Years)		Number of Options		Exercise Price Per Share
$	0.50		785,000	$	0.50		9.24		752,000	$	0.50

As of February 28, 2021, the options vested and outstanding had no intrinsic value. The aggregate fair value of the options measured during the year ended February 28, 2021 and the period from September 9, 2019 (inception) to February 29, 2020 were calculated using the Black-Scholes option pricing model based on the following assumptions:

Expected life	5- 10 years
Volatility		113.89- 120.59	%
Dividend yield		0	%
Risk free interest rate		0.36% - 0.59	%

As of February 28, 2021, there are 7,215,000 awards remaining to be issued under the 2020 Plan.