NOTE 10 - STOCKHOLDERS’ DEFICIT

Common Stock

At February 28, 2015 and February 28, 2014, we had 150,000,000 shares of $0.0001 par value common stock authorized for issuance, respectively. During the years ended February 28, 2015 and February 28, 2014, we issued 24,126,933 and 12,309,926 shares of common stock, respectively.

During the year ended February 28, 2015, 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 3,992,400 shares of common stock for proceeds of $631,460.

During the year ended February 28, 2014, $1,127,002 of notes payable and accrued interest were converted into 2,660,225 shares of common stock, 1,833,333 shares of common stock and 916,666 7-year warrants to purchase our stock with an exercise price of $0.75 were issued to re-price a prior issuance of stock in December 2012, 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, and 3,562,118 shares of common stock were issued for services valued at $974,726.

Employee Stock Options (Restated)

In September, 2006, our Board of Directors adopted the 2006 Employee Stock Option Plan, subject to shareholder approval, which was obtained at a special shareholders meeting in 2011. Under the Plan, the Company may grant options for up to the greater of Three Million (3,000,000) or 10% of the number of shares of the Common Stock of Aura from time to time outstanding. The exercise price of each option shall be at least equal to the fair market value of such shares on the date of grant. The term of the options may not be greater than ten years, and they typically vest over a three-year period.

During the year ended February 28, 2015, no employee options were granted by the Company.

The Company incurred stock options related expenses of $0 and $62,921, during the years ended February 28, 2015 and February 28, 2014, respectively.

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
Granted	$	0.75				240,333
Cancelled	$	0.75				(186,000	)
Outstanding, February 28, 2014	$	0.75-$1.00	$	0.00		8,602,333
Granted		-				-
Cancelled	$	0.75				(825,833	)
Outstanding, February 28, 2015	$	0.75-$1.00				7,777,000

The exercise prices for the options outstanding at February 28, 2015, 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 years

0.79

5 years

7,777,000

0.79

The weighted average fair values of the options on the date of grant for the year ended February 28, 2015 and February 28, 2014 were $0.0 per share and $0.08 per share, respectively.

A summary of the status of the Company’s non-vested shares as of February 28, 2015, and changes during the year ended February 28, 2015, is presented below:

Non-vested Shares	Shares			Weighted-Average Grant-Date Fair Value
Non-vested at February 28, 2014		366,667		$	0.38
Granted		-		$	-
Cancelled		(366,667	)	$	0.38
Non-vested at February 28, 2015		0		$	-

As of February 28, 2015, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan.

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-$2.00
Outstanding, February 28, 2015		37,546,048		$	0.10-$1.50

The grant date fair value of the warrants issued in the year ended February 28, 2015 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 February 28, 2015, 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	74 months	$	0.55	$	0.55	$	0.00
$	0.75		1,082,734		1,082,734	72 months	$	0.75	$	0.75	$	0.00
$	0.75		1,000,000		1,000,000	62 months	$	0.75	$	0.75	$	0.00
$	0.75-$1.00		5,990,275		5,990,275	57 months	$	0.77	$	0.77	$	0.00
$	1.00-$1.25		795,000		795,000	19 months	$	1.05	$	1.05	$	0.00
$	1.00		8,272,187		8,272,187	17 months	$	1.00	$	1.00	$	0.00
$	1.50		105,000		105,000	13 months	$	1.50	$	1.50	$	0.00
$	0.75-1.50		709,198		709,198	10 months	$	1.25	$	1.25	$	0.00
$	1.50		156,000		156,000	6 months	$	1.50	$	1.50	$	0.00
$	1.50		704,000		704,000	5 months	$	1.50	$	1.50	$	0.00
$	1.50		350,642		350,642	2 months	$	1.50	$	1.50	$	0.00

			37,546,048		37,546,048