Derivative Warrant Liabilities

12 Months Ended

Feb. 28, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE WARRANT LIABILITIES

NOTE 14 – DERIVATIVE WARRANT LIABILITY

The Company issued warrants in prior years that include a fundamental transaction provision that could give rise to an obligation to pay cash to the warrant holder. The Company determined that the warrants do not satisfy the criteria for classification as equity instruments due to the existence of the cash settlement feature that is not within the sole control of the Company, and the warrants are accounted for as liabilities in accordance with ASC 815. The fair value of the warrants is remeasured at each reporting period, and the change in the fair value is recognized in earnings in the accompanying statements of operations. The warrant liability will ultimately be converted into the Company’s equity when the warrants are exercised, or will be extinguished on the expiration of the outstanding warrants.

The following tables summarize the derivative warrant liability:

	February 28, 2022			February 28, 2021
Stock price	$	0.41		$	0.35
Risk free interest rate		1.0	%		1.8	%
Expected volatility		170	%		232	%
Expected life in years		0.98			2.0
Expected dividend yield		0	%		0	%
Number of warrants		4,800,834			5,662,272
Fair value of derivative warrant liability	$	828,232		$	1,366,375

	Number of Warrants Outstanding			Fair Value of Derivative Warrant Liability
February 29, 2020  (As Restated)		5,816,939		$	947,272
Change in fair value of derivative warrant liability		-			432,714
Gain on extinguishment on expiration of warrants		(154,667	)		(13,611	)
February 28, 2021  (As Restated)		5,662,272		$	1,366,375
Change in fair value of derivative warrant liability		-			(476,603	)
Gain on extinguishment on expiration of warrants		(861,438	)		(61,540	)
February 28, 2022		4,800,834		$	828,232