STOCK BASED COMPENSATION

3 Months Ended

May 31, 2023

Equity [Abstract]

STOCK BASED COMPENSATION

NOTE 5: STOCK BASED COMPENSATION

Stock Options - Under the 2013 Stock Incentive Plan ("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 May 31, 2023, there were 254,983 options outstanding under the 2013 Plan, of which 133,926 are vested.

The Company accounts for stock-based compensation under ASC 718, “Share Based Payments”, which requires companies to expense the value of employee stock options and similar awards. The Company accounts for forfeitures as they occur.

During the three months ended May 31, 2023, the Company granted options to acquire 4,224 shares to employees at an exercise price of $5.60. The options granted to employees vest over three years and expire ten years from the date of issuance. The options granted during the three months ended May 31, 2023 had a grant date fair value of $3.55 per share.

The weighted-average fair value of options are estimated on the date of grant using the Black-Scholes options-pricing model. The weighted-average Black-Scholes assumptions are as follows:

	Three Months Ended May 31, 2023
Expected Life	8 years
Risk free interest rate	3.73%
Expected volatility	55.96%
Expected dividend yield	0%

For the three months ended May 31, 2023 and 2022 the Company recognized $48,295 and $69,369 in stock based compensation expense, respectively. Such amounts are included in general and administration expenses on the unaudited condensed consolidated statements of income.