NOTE 8 – SHAREHOLDERS’ EQUITY

Common Stock

We issued 950,000 shares of common stock were issued in settlement for a note payable balance $150,000 plus accrued interest of $15,288 during the Nine months ended November 30, 2016.

No shares of common stock were issued during the Nine months ended November 30, 2016.

Employee Stock Options

During the Nine months ended November 30, 2016, 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 29, 2016	$0.75-$1.00	$	0.00		7,224,000
Cancelled	-		-		-
Granted	-		-		-
Outstanding, November 30, 2016	$0.75-$1.00	$	0.00		7,224,000

The exercise prices for the options outstanding at November 30, 2016, 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

7,224,000

3.25 years

0.79

3.25 years

7,224,000

0.79

Warrants

Activity in issued and outstanding warrants is as follows:

	Number of Shares			Exercise Prices
Outstanding, February 29, 2016		36,726,208			$0.10-$1.50
Granted		-			-
Exercised		-			-
Cancelled		(9,175,187	)	$	1.50
Outstanding, November 30, 2016		27,554,021			$0.10-$1.00

There were no warrants issued in the nine months ended November 30, 2016.

The exercise prices for the warrants outstanding at November 30, 2016, 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		19,481,012		19,481,012	52 months	$	0.55	$	0.55	$	0.00
$0.75		1,082,734		1,082,734	51 months	$	0.75	$	0.75	$	0.00
$0.75		1,000,000		1,000,000	41 months	$	0.75	$	0.75	$	0.00
$0.75-$1.00		5,990,275		5,990,275	36 months	$	0.77	$	0.77	$	0.00

		27,554,021		27,554,021