Stockholders' Deficit

12 Months Ended

Feb. 28, 2021

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' DEFICIT

NOTE 9 – STOCKHOLDERS’ DEFICIT

Common Stock

On February 28, 2021 and February 29, 2020, the Company had 150,000,000 shares of $0.0001 par value common stock authorized for issuance. During the year ended February 28, 2021, the Company issued a total of approximately 14.7 million shares of common stock, of which 14.1 million shares were issued for cash totaling approximately $2.1 million and the remainder of 0.6 million shares for settlement of debt totaling $371,000. During the year ended February 29, 2020, the Company issued 2.5 million shares of common stock for cash totaling $525,000, 1.2 million shares for settlement of debt of $366,000, $50,000 shares of common stock for services rendered to the Company of $10,000 and a cancellation of 1.1 million shares outstanding in October 2019 in connection with a settlement agreement.

Employee Stock Options

The 2006 Employee Stock Option Plan

In September 2006, our Board of Directors adopted the 2006 Employee Stock Option Plan (“2006 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 (3,000,000) or 10% of the number of shares of the Common Stock of Aura outstanding from time to time. At the October 2011 shareholder meeting, the shares of Common Stock available under the 2006 Plan was increased to the greater of Ten Million shares (10,000,000) or 15% of the number of shares of Common Stock of Aura outstanding from time to time. 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. No options under the 2006 Plan have been issued since 2016.

The 2011 Director and Executive Officers Stock Option Plan

In October 2011 shareholders approved the 2011 Director and Executive Officers Stock Option Plan (“2011 Plan”) at the Company’s annual meeting. Under the 2011 Plan, the Company may grant options, or warrants, for up to 15% of the number of shares of Common Stock of the Company from time to time outstanding. Pursuant to this plan, the Board or a committee of the Board may grant an option to any person who is elected or appointed a director or executive officer of the Company. 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 five years.

Activity in the 2006 Plan is as follows for the fiscal years ended February 28, 2021 and February 29, 2020:

	Number of Shares			Exercise Price		Weighted Average Intrinsic Value
Outstanding, February 28, 2019		647,000		$	1.40	$	-
Granted		-			-		-
Exrecised		-			-		-
Cancelled		(647,000	)		1.40		-
Outstanding, February 29, 2020		-		$	-	$	-
Granted		-			-		-
Exrecised		-			-		-
Cancelled		-			-		-
Outstanding, February 28, 2021		-		$	-	$	-

During Fiscal 2020, the remaining 647,000 stock options as of February 29, 2020 expired unexercised at an exercise price of $1.40 per option.

Activity in the 2011 Plan for issued and outstanding options during Fiscal 2021 and 2020 is as follows:

	Number of Shares			Exercise Price		Weighted Average Intrinsic Value
Outstanding, February 28, 2019		1,125,715		$	1.40	$	-
Granted		-			1.40		-
Exrecised		-			-		-
Cancelled		(85,714	)		1.40		-
Outstanding, February 29, 2020		1,040,001		$	1.40	$	-
Granted		1,250,000			0.25		125,000
Exrecised		-			-		-
Cancelled		-			-		-
Outstanding, February 28, 2021		2,290,001		$	0.77	$	125,000

The exercise prices and information related to options under the 2011 Plan outstanding on February 28, 2021 is as follows:

Range of Exercise Price	Stock Options Outstanding		Stock Options Exercisable		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price of Warrants Outstanding		Weighted Average Exercise Price of Warrants Exercisable
$0.25 to $1.40		2,290,001		2,290,001	2.99 yrs.	$	0.77	$	0.77

On March 19, 2020, the Board of Directors approved the grant of 250,000 options to each of the five current members of the Board under the Company’s 2011 Director and Executive Officers Stock Option Plan, in the aggregate amount of 1,250,000 options. These options bear an exercise price of $0.25 per option and are exercisable for a period of five years, subject to earlier termination per the terms of the 2011 Director and Executive Officers Stock Option Plan. The closing price of the Company’s common stock on the date of grant was $0.16. A fair value of $193,750, or $0.155 per option, was determined by applying the Black-Scholes-Merton option valuation model using a volatility rate of 225%, a risk-free interest rate of 0.57%, expected term of 4 years and an equity fair value on the date of grant of $0.16. The fair value of $193,750 was recorded as selling, general and administrative expense on the Statement of Operations for the year ended February 28, 2021.

Warrants

	Number of Shares			Exercise Price
Outstanding, February 28, 2019		6,365,272		$	1.40
Granted		10,000			1.40
Exrecised		-			-
Cancelled		(558,333	)		1.40
Outstanding, February 29, 2020		5,816,939		$	1.40
Granted					-
Exrecised		-			-
Cancelled		(154,667	)		1.40
Outstanding, February 28, 2021		5,662,272		$	1.40

The 10,000 warrants granted in Fiscal 2020, fully vested, with an exercise price of $1.40, and expiring after five years, to three investors who were issued 250,000 shares in exchange for $50,000 of cash. A fair value of $2,668 was determined by applying the Black-Scholes-Merton option valuation model using a volatility rate of 246%, a risk-free interest rate of 1.76%, expected term of 4 years and a range of equity fair values on the dates of grant of $0.258 to $0.30.

The exercise prices and information related to the warrants under the 2011 Plan outstanding on February 28, 2021 is as 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		5,662,272		5,662,272	1.73 yrs.	$	1.40	$	1.40

At February 28, 2021, the weighted average intrinsic value for the stock warrants outstanding is zero.