Derivative Warrant Liability

9 Months Ended

Nov. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE WARRANT LIABILITY

NOTE 12 – DERIVATIVE WARRANT LIABILITY

In prior years under prior management, the Company issued warrants 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:

	November 30, 2022			February 28, 2022
Stock price	$	0.53		$	0.41
Risk free interest rate		4.3	%		1.0	%
Expected volatility		192	%		170	%
Expected life in years		0.23			0.98
Expected dividend yield		0	%		0	%
Number of warrants		4,800,834			4,800,834
Fair value of derivative warrant liability	$	267,936		$	828,232

	Number of Derivative Warrants Outstanding		Fair Value of Derivative Warrant Liability
February 28, 2022		4,800,834	$	828,232
Change in fair value of derivative warrant liability		-		(560,296	)
Gain on extinguishment on expiration of warrants		-		-
November 30, 2022		4,800,834	$	267,936