Derivative Warrant Liability

6 Months Ended

Aug. 31, 2023

Derivative Warrant Liability [Abstract]

DERIVATIVE WARRANT LIABILITY

NOTE 8 – DERIVATIVE WARRANT LIABILITY

In prior years the Company issued warrants that include a fundamental transaction provision that could give rise to an obligation to pay cash to the warrant holder. The Company determined that the warrants do not satisfy the criteria for classification as equity instruments due to the existence of the cash settlement feature that is not within the sole control of the Company, and the warrants are accounted for as liabilities in accordance with ASC 815. The fair value of the warrants is remeasured at each reporting period, and the change in the fair value is recognized in earnings in the accompanying statements of operations. The warrant liability will ultimately be converted into the Company’s equity when the warrants are exercised or will be extinguished upon the expiration of the outstanding warrants.

The following tables summarize the derivative warrant liability:

(amounts in thousands, except share and per share data)	August 31, 2023			February 28, 2023
Stock price	$	0.20		$	0.25
Risk free interest rate		5.2	%		4.7	%
Expected volatility		171	%		190	%
Expected life in years		0.46			0.97
Expected dividend yield		0	%		0	%
Number of warrant shares		113,100			113,100
Fair value of derivative warrant liability	$	1		$	9

	Number of Derivative Warrants Outstanding		Fair Value of Derivative Warrant Liability
February 28, 2023		113,100	$	9
Change in fair value of derivative warrant liability		-		(8	)
Gain on extinguishment on expiration of warrants		-		-
August 31, 2023		113,100	$	1