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Related Parties Transactions
12 Months Ended
Feb. 28, 2015
Related Parties Transactions [Abstract]  
RELATED PARTIES TRANSACTIONS

NOTE 7 – RELATED PARTIES TRANSACTIONS

 

At February 28, 2015, the balance in Notes Payable and accrued interest-related party, current, includes $14,235,960 of unsecured notes payable plus accrued interest of $6,220,790 to Mr. Breslow, a member of our Board of Directors, payable on demand, bearing interest at a rate of 10% per annum. The payable balance of $13,819,960 plus accrued interest of $4,827,502 as of February 28, 2014. During the years ended February 28, 2015 and February 28, 2014, interest amounting to $1,395,855 and $1,381,996 respectively, was incurred on these notes. Related Party transactions also includes $82,000 of unsecured notes payable plus accrued interest of $15,594 and $7,391 to our CEO pursuant to a demand note entered into on April 5, 2014 and an unsecured note payable to Mr. Kopple, another member of our Board of Directors in the total amounts of $3,047,856 and $963,000 plus accrued interest of $302,874 and $30,518 pursuant to 10% demand note payable as of February 28, 2015 and 2014 respectively.

 

At February 28, 2015 and 2014, the balance in Convertible note payable and accrued interest-related party, long term, includes $1,672,379 and $2,005,601of secured convertible notes payable net of discounts of $327,621 and $494,399 plus accrued interest of $423,734 and $170,403 to Mr. Kopple, a member of our Board of Directors. On June 20, 2014, $500,000 of the original note was converted into a portion of a 10% demand note. 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.