SHAREHOLDERS' EQUITY

6 Months Ended

Aug. 31, 2013

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS' EQUITY

NOTE 8–SHAREHOLDERS' EQUITY

Common Stock

During the six months ended August 31, 2013, $1,330,112 of notes payable and accrued interest were converted into 2,660,225 shares of common stock, 595,451 shares of common stock were issued for services and expenses related to the notes valued at $297,726, 1,833,333 shares of common stock were issued to re-price a prior issuance of stock in December 2012, 1,266,667 shares valued at $304,000 and 1,000,000 warrants valued at $133,424 were issued as a settlement for failure to repay a $500,000 note when due, 700,000 shares valued at $168,000 and 700,000 warrants valued at $93,397 were issued as consideration for issuing a letter of credit for $350,000 on Aura's behalf, 500,000 shares valued at $120,000 and 800,000 warrants valued at $106,739 were issued to an individual as consideration for joining Aura's Board of Directors and 4,254,250 shares of common stock were issued in exchange for the cancellation of warrants to purchase 5,005,000 shares of common stock at an exercise price of $0.75 per share which would have expired on September 22, 2016.

During the six months ended August 31, 2012, we issued 350,000 shares of Common Stock for services rendered valued at $266,000, 200,000 shares of common stock for consideration of $152,000, and 206,941 shares upon conversion of $157,276 of notes payable and accrued interest.

Employee Stock Options

During the six months ended August 31, 2013 we granted 233,333 options as a performance bonus to our Vice-President of sales and 7,000 options to other 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, 2013	$	0.75-$1.00	$	0.00		8,548,000
Cancelled		-		-		-
Granted	$	0.75	$	0.00		240,333
Outstanding, August 31, 2013	$	0.75-$1.00	$	0.00		8,788,333

The exercise prices for the options outstanding at August 31, 2013, 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		8,788,333	6.40 years		$	0.79	6.50 years		8,421,666		$	0.79

Warrants

Activity in issued and outstanding warrants is as follows:

	Number of Shares			Exercise Prices
Outstanding, February 28, 2013		38,783,290		$	0.75-$3.00
Granted		12,262,096		$	0.75
Cancelled		(5,005,000	)	$	0.75
Outstanding, August 31, 2013		46,040,386		$	0.75-$3.00

The exercise prices for the warrants outstanding at August 31, 2013, 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
$	0.75		8,893,334		8,893,334	83 months	$	0.75	$	0.75	$	0.00
$	0.75		3,368,762		3,368,762	80 months	$	0.75	$	0.75	$	0.00
$	0.75-$1.00		8,756,942		8,756,942	71 months	$	0.81	$	0.81	$	0.00
$	1.00-$1.25		1,220,000		1,220,000	37 months	$	1.03	$	1.03	$	0.00
$	1.00		16,722,787		16,722,787	36 months	$	1.00	$	1.00	$	0.00
$	1.50		155,000		155,000	31 months	$	1.50	$	1.50	$	0.00
$	0.75-1.50		1,109,198		1,109,198	28 months	$	1.17	$	1.17	$	0.00
$	1.50		156,000		156,000	24 months	$	1.50	$	1.50	$	0.00
$	1.50		704,000		704,000	23 months	$	1.50	$	1.50	$	0.00
$	1.50		350,642		350,642	20 months	$	1.50	$	1.50	$	0.00
$	0.75-$2.00		58,000		58,000	16 months	$	1.78	$	1.78	$	0.00
$	2.00		725,721		725,721	13 months	$	2.00	$	2.00	$	0.00
$	0.75-2.00		3,650,000		3,650,000	10 months	$	1.03	$	1.03	$	0.00
$	3.00		170,000		170,000	3 months	$	3.00	$	3.00	$	0.00
			46,040,386		46,040,386