RELATED PARTY TRANSACTIONS

9 Months Ended

Nov. 30, 2013

RELATED PARTY TRANSACTIONS [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 12 – RELATED PARTIES TRANSACTIONS

At November 30, 2013, the balance in Notes Payable and accrued interest-related party, current, includes $13,819,960 of unsecured notes payable plus accrued interest of $4,478,153 to a member of our Board of Directors, payable on demand, bearing interest at a rate of 10% per annum. During the Nine Months ended November 30, 2013 and November 30, 2012, interest amounting to $1,032,647 and $960,078 respectively, was incurred on these notes. The balance also includes $82,000 of unsecured notes payable plus accrued interest of $5,319 to our CEO pursuant to a demand note entered into on April 5, 2013 and an unsecured note payable to another member of our Board of Directors in the amount of $750,000 plus accrued interest of $9,151 pursuant to a 10% demand note payable entered into on October 17, 2013. At November 30, 2013, the balance in Convertible note payable and accrued interest-related party, long term, includes $1,880,517 of secured notes payable net of discounts of $619,483 plus accrued interest of $8,586 to another member of our Board of Directors. The Company also issued the following stock and warrants to this board member: 1,833,333 shares of our common stock and 916,666 7 year warrants with an exercise price of $0.75 as a re-pricing of a previous issuance made in December 2012, 1,266,667 shares of our common stock and 1,000,000 7 year warrants with an exercise price of $0.75 for failure to repay a $500,000 note when due, 700,000 shares of our common stock and 700,000 7 year warrants with an exercise price of $0.75 for issuing a $350,000 letter of credit on Aura’s behalf, 500,000 shares of our common stock and 800,000 7 year warrants with an exercise price of $0.75 for joining Aura’s Board of Directors, and 5,000,000 7 year warrants attached to the $2,500,000 convertible note which includes the unpaid $500,000 note referred to above.