Stockholders' Deficit

12 Months Ended

Feb. 28, 2022

Stockholders' Equity Note [Abstract]

STOCKHOLDERS’ DEFICIT

NOTE 15 – STOCKHOLDERS’ DEFICIT

Common Stock

On February 28, 2022 and February 28, 2021, the Company had 150,000,000 shares of $0.0001 par value common stock authorized for issuance.

During the year ended February 28, 2022, the Company issued an aggregate of 12,016,095 shares of its common stock as follows:

● The Company sold 10,199,665 shares of common stock for net proceeds of $2,652,860 in a private placement.

● The Company issued 1,571,429 shares of common stock with a fair value of $550,000 for settlement of debt.

● The Company issued 245,001 shares of common stock for services with a fair value of $73,500. The common shares were valued based on the closing price of the Company’s shares of common stock on the respective dates of issuances.

During the year ended February 28, 2021, the Company issued an aggregate of 14,513,963 shares of its common stock as follows:

● The Company sold 14,098,327 shares of common stock for net proceeds of $2,146,000 in a private placement.

● The Company issued 415,636 shares of common stock with a fair value of $103,909 for settlement of debt.

Stock Options

A summary of the Company’s stock option activity is as follows:

	Number of Shares			Exercise Price		Weighted Average Intrinsic Value
Total options, February 29, 2020 (As Restated)		1,040,001		$	1.40	$	-
Granted		4,250,000			0.38		225,000
Exercised		-			-		-
Cancelled		-			-		-
Total options, February 28, 2021 (As Restated)		5,290,001		$	0.77	$	225,000
Granted		-			-		-
Exercised		-			-		-
Cancelled		(230,232	)		1.40		-
Total options, February 28, 2022		5,059,769		$	0.55	$	360,000
Exercisable, February 28, 2022		5,059,769		$	0.55	$	360,000

The exercise prices and information related to options under the 2011 Plan outstanding on February 28, 2022 is as follows:

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		5,059,769		5,059,769		3.25	$	0.55	$	0.55

During the year ended February 28, 2021, the Board of Directors granted options to purchase an aggregate of 2,750,000 shares of the Company’s common stock to the Company’s President and members of the Board of Directors. Options exercisable into 2,250,000 shares have an exercise price of $0.25 per share, and options exercisable into 500,000 shares have an exercise price of $0.50 per share. Options exercisable into 2,000,000 shares vested immediately, and options exercisable into 750,000 shares vest over 12 months. The 2,750,000 options expire in five years. The aggregate fair value of the options was determined to be $576,879 using a Black-Scholes option pricing model based on the following assumptions: (i) volatility rate of 222% to 226%, (ii) discount rate of 0.16% to 0.57%, iii) zero expected dividend yield, and (iv) expected life of 2.5 years to 3 years.

In February 2021, the Company’s Board of Directors authorized the grant of 1,500,000 stock options at an exercise price of $0.50 per share as compensation for advisors to the Board. As of February 28, 2022 and 2021, these options have not been issued as the proposal to renew the employee stock option plan needs to be approved by the shareholders at an annual meeting. Upon approval, the 1,500,000 stock options will be issued. The options vest over 12 months, and expire in five years. Although the options have not been issued, the commitment to issue existed when granted by the Board. As a result, the fair value of the authorized grant was determined to be $487,600 using a Black-Scholes option pricing model based on the following assumptions: (i) volatility rate of 226%, (ii) discount rate of 0.34%, iii) zero expected dividend yield, and (iv) expected life of 3 years.

The risk-free interest rate was based on rates established by the Federal Reserve Bank. The Company uses the historical volatility of its common stock to estimate the future volatility for its common stock. The expected life of the stock options granted is estimated using the “simplified” method, whereby the expected term equals the average of the vesting term and the original contractual term of the stock option. The expected dividend yield was based on the fact that the Company has not paid dividends to its common stockholders in the past and does not expect to pay dividends to its common stockholders in the future.

During the years ended February 28, 2022 and 2021, the Company recognized stock-based compensation of $612,093 and $452,386 related to the fair value of vested stock options.

Employee Stock Option Plans

In September 2009, the Company’s shareholders approved the 2006 Employee Stock Option Plan (as amended, the “2006 Plan”). Under the 2006 Plan, the Company may grant options for up to 10,000,000 or 15% of the number of shares of Common Stock of Aura outstanding from time to time. As of February 28, 2022 and 2021, no options remain outstanding under the 2006 Plan as the last remaining options expired during fiscal 2020, and no options are available for grant under the 2006 Plan as the authorized term of the plan has expired.

In October 2011, the Company’s shareholders approved the 2011 Director and Executive Officers Stock Option Plan (the “2011 Plan”). 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 outstanding from time to time. 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, and the term of the options may not be greater than five years.

During the year ended February 28, 2022, there were no options granted under the 2011 Plan. During the year ended February 28, 2021, the Company issued 2,750,000 stock options under the 2011 Plan.

Warrants

	Number of Warrants			Exercise Price
Outstanding, February 29, 2020		5,816,939		$	1.40
Granted		-			-
Exercised		-			-
Cancelled		(154,667	)		1.40
Outstanding, February 28, 2021		5,662,272		$	1.40
Granted		-			-
Exercised		-			-
Cancelled		(861,438	)		1.40
Outstanding, February 28, 2022		4,800,834		$	1.40

There was no intrinsic value as of February 28, 2022, as the exercise prices of these warrants were greater than the market price of the Company’s stock. The exercise prices and information related to the warrants under the 2011 Plan outstanding on February 28, 2022 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		4,800,834		4,800,834		0.98	$	1.40	$	1.40