Stockholders' Equity

12 Months Ended

Feb. 28, 2014

Equity [Abstract]

Stockholders' Equity

NOTE 13: STOCKHOLDERS’ EQUITY

Stock Options – Under the 2013 Stock Incentive Plan, as amended ("2013 Plan"), options can be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 2,500,000 shares of the Company's common stock. Under the 2013 Plan options expire ten years after the date of grant. As of February 28, 2014, there were 135,500 options outstanding under the 2013 plan.

Under the 2003 Stock Incentive Plan, as amended ("2003 Plan"), until May 2013, options were available to be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 1,500,000 of the Company's common shares. As of February 28, 2014, there were 811,073 options outstanding under the 2003 Plan, under which no additional options may be granted.

Under the 2013 Stock Incentive Plan, option prices must be at least 100% of the fair market value of the common stock at time of grant. For qualified employees, except under certain circumstances specified in the plan or unless otherwise specified at the discretion of the Board of Directors, no option may be exercised prior to one year after date of grant, with the balance becoming exercisable in cumulative installments over a three year period during the term of the option, and terminating at a stipulated period of time after an employee's termination of employment.

During Fiscal Year 2014, the Company granted options for 135,500 shares exercisable at prices from $1.05 to $1.20 to employees of the Company.

On November 8, 2012, the Company granted 840,718 options to officers, and one person who became an officer subsequent to that date, and 140,000 options to directors, at an exercise price of $0.61. These options vest as follows: 33.33% on the date of grant, 33.33% one year from the date of grant and 33.33% two years from the date of grant. The options expire ten years from the date of grant. In exchange for the newly issued options, the officers and directors surrendered their outstanding options and these were cancelled. The surrendered options were set to expire at various dates from 2014 to 2021 and had an average strike price of $0.95.

During Fiscal Year 2013, the Company also granted options for 115,000 shares exercisable at prices from $.48 to $.61 to officers of the Company and options for 10,000 shares exercisable at $.48 to an employee of the Company.

A summary of the activity of both plans for the years ended February 28, 2014 and 2013 is as follows:

			Weighted Average
	Stock Options		Exercise Price		Fair Value
	Outstanding	Exercisable	Outstanding	Exercisable	Vested
Balance – February 29, 2012	1,318,460	1,204,660	1.10	1.11	.36
Granted	1,105,718		.60
Exercised	(47,566)		(.79)
Cancelled	(1,053,894)		(.93)
Balance – February 28, 2013	1,322,718	549,425	$.67	$.77	$.39
Granted	135,500		1.06
Exercised	(501,645)		(.60)
Cancelled	(10,000)		(1.11)
Balance – February 28, 2014	946,573	435,714	$.76	$.82	$.41

The intrinsic value of the Company’s options exercised during the years ended February 28, 2014 and 2013 was $157,427 and $4,891, respectively.

Information, at date of issuance, regarding stock option grants for the years ended February 28, 2014:

	Shares	Weighted Average Exercise Price	Weighted Average Fair Value
Year ended February 28, 2014:
Exercise price exceeds market price	-	-	-
Exercise price equals market price	135,500	$   1.06	$   .50
Exercise price is less than market price	-	-	-

The aggregate intrinsic value of the Company’s outstanding options at February 28, 2014 and 2013 was $369,659 and $459,966, respectively.

The following table summarizes information about stock options outstanding and exercisable at February 28, 2014:

	Number Outstanding	Weighted- Average Remaining Life in Years	Weighted Average Exercise Price	Number Exercisable
Range of exercise prices:
$.42 to $.50	63,500	7.74	$  .47	36,000
$.51 to $1.00	630,573	8.3	$  .63	275,214
$1.01 to $1.95	252,500	6.05	$1.16	124,500
	946,573			435,714