Shareholders' Equity

6 Months Ended

Aug. 31, 2020

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

NOTE 5 – SHAREHOLDERS' EQUITY

Common Stock

During the three and six-months ended August 31, 2020, the Company issued 3,866,664 and 5,224,997 shares of common stock, respectively, for $580,000 and $815,000 in cash, respectively. During the three and six-months ended August 31, 2019, the Company issued 501,765 and 658,015 shares of common stock, respectively, for $100,353 and $150,353 in cash, respectively. During August 2019, 1,030,385 shares were issued for a settlement valued at $329,723 and during August 2020, 192,641 shares were issued in connection with the Veen settlement (see Note 3).

Employee Options and Warrants

The 2006 Employee Stock Option Plan

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 2009. Under the 2006 Plan, the Company may grant options for up to the greater of three million or 10% of the number of shares of the Common Stock of Aura from time to time outstanding. As of February 29, 2020, and August 31, 2020, there were no stock options outstanding.

The 2011 Director and Executive Officers Stock Option Plan

In October 2011, shareholders approved the 2011 Director and Executive Officers Stock Option Plan at the Company's annual meeting. Under the 2011 Plan, the Company may grant options for up to 15% of the number of shares of Common Stock of the Company from time to time outstanding, with a contractual option term of five-years, and a vesting period not less than six-months and one day following date of grant. In the six-months ended August 31, 2020, the Board of Directors approved grants of 250,000 stock options to each board member for an aggregate of 1,250,000 options, with an exercise price of $0.25 per option and at a market price of $0.16 on March 19, 2020, the date of grant. The following table provides the assumptions required to apply the Black-Scholes Merton option model to determine the fair value of the stock options as of the grant date:

	Options Issued During the Six-Months Ended August 31, 2020
Exercise Price	$	0.25
Share Price	$	0.16
Volatility %		225	%
Risk-free rate		0.57	%
Expected term (yrs.)		4.0

The aggregate fair value of the 1,250,000 options granted in March 2020 is $194,000, or $0.155 per option, with $96,477 and $174,076 recorded as part of sales, general and administration expense during the three and six-months ended August 31, 2020, respectively. No stock-based compensation expense was recorded during Fiscal 2020.

The following tables provide additional information regarding stock options outstanding and exercisable under the 2011 Director and Executive Officers Stock Option Plan:

	Number of Shares		Exercise Price		Weighted Average Intrinsic Value
Outstanding, February 29, 2020		1,040,001	$	1.40	$	-
Granted		1,250,000		0.25		-
Exrecised		-		-		-
Cancelled		-		-		-
Outstanding, August 31, 2020		2,290,001	$	0.77	$	-

Range of Exercise Price		Stock Options Outstanding		Stock Options Exercisable		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price of Options Outstanding		Weighted Average Exercise Price of Options Exercisable
	$0.25 to $1.40		2,290,001		1,040,001		3.5 Yrs.	$	0.77	$	1.40

Warrants

Historically, warrants have been issued to investors and others for services and enticements to invest funds with the Company. Generally, these warrants fully vest immediately or within a 90-day period from the date of grant and have an expiration date of five-years from the date of grant. With grants dated prior to Fiscal 2021, an exercise price of $1.40 has been used with all warrants. No warrants were issued in the six-months ended August 31, 2020.

Activity in issued and outstanding warrants is as follows for the six-months ended August 31, 2020:

	Number of		Exercise
	Shares		Price
Outstanding, February 29, 2020		5,816,939	$	1.40
Granted		-		-
Exrecised		-		-
Cancelled		-		-
Outstanding, August 31, 2020		5,816,939	$	1.40

Other information related to the warrants outstanding and exercisable as of August 31, 2020 follows:

Range of Exercise Price		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
$	1.40		5,816,939		5,816,939		2.19 Yrs.	$	1.40	$	1.40