RELATED PARTIES TRANSACTIONS

12 Months Ended

Feb. 28, 2014

RELATED PARTIES TRANSACTIONS [Abstract]

RELATED PARTIES TRANSACTIONS

NOTE 7 – RELATED PARTIES TRANSACTIONS

At February 28, 2014, the balance in Notes Payable and accrued interest-related party, current, includes $13,819,960 of unsecured notes payable plus accrued interest of $4,827,502 to a member of our Board of Directors, payable on demand, bearing interest at a rate of 10% per annum. During the years ended February 28, 2014 and February 28, 2013, interest amounting to $1,381,996 and $1,307,763 respectively, was incurred on these notes. The balance also includes $82,000 of unsecured notes payable plus accrued interest of $7,377 to our CEO pursuant to a demand note entered into on April 5, 2013 and two unsecured notes payable to another member of our Board of Directors in the total amount of $963,000 plus accrued interest of $30,518 pursuant to 10% demand notes payable.

At February 28, 2014, the balance in Convertible note payable and accrued interest-related party, long term, includes $2,005,601 of secured convertible notes payable net of discounts of $494,399 plus accrued interest of $170,403 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, 5,000,000 7- year warrants attached to the $2,500,000 convertible note which includes the unpaid $500,000 note referred to above, and 500,000 shares of our common stock as a consulting fee. The company retains the daughter of a 5% shareholder as its' corporate attorney. As of January 2013 this has been at a monthly fixed fee of $30,000 per month plus expenses.