Stockholders' Deficit

6 Months Ended

Aug. 31, 2022

Stockholders' Equity Note [Abstract]

STOCKHOLDERS’ DEFICIT

NOTE 13 – STOCKHOLDERS’ DEFICIT

Common Stock

During the six-months ended August 31, 2022, the Company issued 6,060,333 shares of common stock for approximately $1,668,000 in cash. During the six-months ended August 31, 2021, the Company issued 4,652,000 shares of common stock for net proceeds of approximately $988,000. Additionally, during the six-months ended August 31, 2021, the Company issued 1,571,429 shares of common stock in settlement of accounts payable and accrued expenses to related parties in the aggregate amount of $550,000.

Stock Options

A summary of the Company’s stock option activity for the six-months ended August 31, 2022 is as follows:

	Number of Options		Exercise Price		Weighted Average Intrinsic Value
Outstanding, February 28, 2022		5,059,769	$	0.53	$	360,000
Granted		-		-		-
Exercised		-		-		-
Cancelled		-		-		-
Outstanding, August 31, 2022		5,059,769	$	0.53	$	-

The exercise prices and information related to options under the 2011 Plan outstanding on August 31, 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		2.74	$	0.53	$	0.53

The Company granted no stock options under its stock option 2011 Plan for the six-month period ended August 31, 2022 and the six-month period ended August 31, 2021. As a result of stock options granted during the Fiscal 2021 year, the Company recognized $163,218 and $326,436 in share-based compensation expense related to the fair value of vested stock options in the three-month and six-month periods ended August 31, 2021.

Warrants

A summary of the Company’s warrant activity for the six-months ended August 31, 2022 is as follows:

	Number of Warrants		Exercise Price
Outstanding, February 28, 2022		4,800,834	$	1.40
Granted		3,331,664		0.85
Exercised		-		-
Cancelled		-		-
Outstanding, August 31, 2022		8,132,498	$	1.17

There was no intrinsic value as of August 31, 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 as of August 31, 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
$	0.85 to $1.40		8,132,498		8,132,498		2.96	$	1.17	$	1.17

During March 2022, the Company reached a settlement agreement with its former Director, Robert Kopple who had been in litigation with the Company over unpaid notes payable and accrued interest since 2017 (See Note 9). As a part of the settlement, the Company issued to Mr. Kopple 3,331,664 warrants to purchase the Company’s common stock (the “Kopple Warrants”) with a term of 7 years and at an exercise price of $0.85 per share. The Company determined the fair value of the Kopple Warrants was $1,051,473 using Black-Scholes modeling with the assumptions as set forth in the table below:

	Warrants Issued During the Six-Months Ended August 31, 2022
Exercise Price	$	0.85
Share Price	$	0.317
Volatility %		225	%
Risk-Free Rate		1.98	%
Expected Term (yrs)		7.0
Dividend Rate		0	%