NOTE 10 - STOCKHOLDERS’ DEFICIT

Common Stock

At February 28, 2017 and February 29, 2016, we had 150,000,000 shares of $0.0001 par value common stock authorized for issuance. During the year ended February 28, 2017 we issued 950,000 shares of common stock in settlement of a note payable in the amount of $150,000 plus accrued interest of $15,288. During the year ended February 29, 2016, we did not issue any shares of common stock.

Employee Stock Options

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, 2017, no employee options were granted by the Company.

The Company incurred stock options related expenses of $0 and $0, during the years ended February 28, 2017 and February 29, 2016, respectively.

Activity in this plan is as follows:

	2006 Plan
	Weighted-Average Exercise Price		Aggregate Intrinsic Value		Number of Options

Outstanding, February 28, 2015	$	0.75-$1.00	$	0.00		7,777,000
Granted		-				-
Cancelled	$	0.75				(553,000	)
Outstanding, February 29, 2016	$	0.75-$1.00	$	0.00		7,224,000
Granted		-				-
Cancelled	$	0.75				-
Outstanding, February 28, 2017	$	0.75-$1.00				7,224,000

The exercise prices for the options outstanding at February 28, 2017, 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 years

0.79

3 years

7,224,000

0.79

The weighted average fair values of the options on the date of grant for the year ended February 29, 2016 and February 28, 2015 were nil per share and $0.0 per share, respectively.

Warrants

Activity in issued and outstanding warrants is as follows:

	Number of Shares			Exercise Prices
Outstanding, February 29, 2016		35,626,208		$	0.10-$1.50
Granted		-			-
Exercised		-			-
Expired		(9,172,187	)	$	1.50
Outstanding, February 28, 2017		26,454,021		$	0.10-$1.00

The exercise prices for the warrants outstanding at February 28, 2017, 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		49 months	$	0.56	$	0.56	$	0.00
$	0.75		1,082,734		1,082,734		48 months	$	0.75	$	0.75	$	0.00
$	0.75		1,000,000		1,000,000		38 months	$	0.75	$	0.75	$	0.00
$	0.75-$1.00		5,990,275		5,990,275		33 months	$	0.77	$	0.77	$	0.00
			26,454,021		26,454,021