NOTE 8 – SHAREHOLDERS’ EQUITY

Common Stock

No shares of common stock were issued during the Nine months ended November 30, 2015.

During the Nine months ended November 30, 2014, we issued 2,800,000 shares of Common Stock for services rendered valued at $420,000, 17,334,533 shares of common stock upon the exercise of warrants for proceeds of $1,773,453 and we sold 2,852,000 shares of common stock for proceeds of $460,400.

Employee Stock Options

During the Six months ended August 31, 2015, there were no stock options granted to employees.

In September, 2006, our Board of Directors adopted the 2006 Employee Stock Option Plan. Activity in this plan is as follows:

	2006 Plan
	Weighted-Average Exercise Price		Aggregate Intrinsic Value		Number of Options

Outstanding, February 28, 2015		$0.75-$1.00	$	0.00		7,777,000
Cancelled		-		-		-
Granted		-		-		-
Outstanding, November 30, 2015		$0.75-$1.00	$	0.00		7,777,000

The exercise prices for the options outstanding at November 30, 2015, and information relating to these options is as follows:

Options Outstanding

Exercisable Options

Range of
Exercise
Price

Number

Weighted

Average

Remaining Life

Weighted

Average

Exercise Price

Weighted

Average

Remaining Life

Number

Weighted

Average

Exercise Price

$0.75-$1.00

7,777,000

4.25 years

0.79

4.25 years

7,777,000

0.79

Warrants

Activity in issued and outstanding warrants is as follows:

	Number of Shares			Exercise Prices

Outstanding, February 28, 2015		37,546,048			$0.10-$1.50
Granted		-			-
Exercised		-			-
Cancelled		(1,210,642	)	$	1.50
Outstanding, November 30, 2015		36,335,406			$0.10-$1.50

There were no warrants issued in the nine months ended November 30, 2015.

The exercise prices for the warrants outstanding at November 30, 2015, and information relating to these warrants is as follows:

Range of Exercise Prices		Stock Warrants Outstanding		Stock Warrants Exercisable		Weighted-Average Remaining Contractual Life	Weighted-Average Exercise Price of Warrants Outstanding		Weighted-Average Exercise Price of Warrants Exercisable		Intrinsic Value

	$0.10-$0.75		18,381,012		18,381,012	68 months	$	0.55	$	0.55	$	0.00
	$0.75		1,082,734		1,082,734	66 months	$	0.75	$	0.75	$	0.00
	$0.75		1,000,000		1,000,000	56 months	$	0.75	$	0.75	$	0.00
	$0.75-$1.00		5,990,275		5,990,275	51 months	$	0.77	$	0.77	$	0.00
	$1.00-$1.25		795,000		795,000	13 months	$	1.05	$	1.05	$	0.00
	$1.00		8,272,187		8,272,187	13 months	$	1.00	$	1.00	$	0.00
	$1.50		105,000		105,000	7 months	$	1.50	$	1.50	$	0.00
	$0.75-1.50		709,198		709,198	4 months	$	1.25	$	1.25	$	0.00

			36,335,406		36,335,406