SHAREHOLDERS' EQUITY

9 Months Ended

Nov. 30, 2014

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS' EQUITY

NOTE 8–SHAREHOLDERS’ EQUITY

Common Stock

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.

During the Nine months ended November 30, 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.

Employee Stock Options

During the Nine months ended November 30, 2014, 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, 2014	$	0.75-$1.00	$	0.00		8,602,333
Cancelled	$	0.75				(825,333	)
Granted		-				-
Outstanding, November 30, 2014	$	0.75-$1.00	$	0.00		7,777,000

The exercise prices for the options outstanding at November 30, 2014, 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	5.4 years		$	0.79	5.5 years		7,777,000		$	0.79

Warrants

Activity in issued and outstanding warrants is as follows:

	Number of Shares			Exercise Prices
Outstanding, February 28, 2014		48,503,720		$	0.75-$2.00
Granted		18,381,012		$	0.10-$0.75
Exercised		(17,334,540	)	$	0.10
Cancelled		(12,004,144	)	$	0.75-$1.50
Outstanding, November 30, 2014		37,546,048		$	0.10-$2.00

The grant date fair value of the warrants issued in the Nine months ended November 30, 2014 amounted to $1,910,579 which was calculated using the Black-Scholes option pricing model with the following assumptions: risk free rates of return of 2.18%, volatility of 80.82%, a dividend yield of 0%, and an expected life of 7 years.

The exercise prices for the warrants outstanding at November 30, 2014, 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	77 months	$	0.55	$	0.55	$	0.00
$	0.75		1,082,734		1,082,734	75 months	$	0.75	$	0.75	$	0.00
$	0.75		1,000,000		1,000,000	65 months	$	0.75	$	0.75	$	0.00
$	0.75-$1.00		5,990,275		5,990,275	60 months	$	0.77	$	0.77	$	0.00
$	1.00-$1.25		795,000		795,000	22 months	$	1.05	$	1.05	$	0.00
$	1.00		8,272,187		8,272,187	20 months	$	1.00	$	1.00	$	0.00
$	1.50		105,000		105,000	16 months	$	1.50	$	1.50	$	0.00
$	0.75-1.50		709,198		709,198	13 months	$	1.25	$	1.25	$	0.00
$	1.50		156,000		156,000	9 months	$	1.50	$	1.50	$	0.00
$	1.50		704,000		704,000	8 months	$	1.50	$	1.50	$	0.00
$	1.50		350,642		350,642	5 months	$	1.50	$	1.50	$	0.00
			37,546,048		37,546,048