Stockholders' Deficit

9 Months Ended

Nov. 30, 2022

Stockholders' Equity Note [Abstract]

STOCKHOLDERS’ DEFICIT

NOTE 13 – STOCKHOLDERS’ DEFICIT

Common Stock

During the nine-months ended November 30, 2022, the Company issued 9,497,425 shares of common stock for net proceeds of approximately $2,600,000 in cash. During the nine-months ended November 30, 2021, the Company issued 7,615,330 shares of common stock for net proceeds of approximately $1,868,000. Additionally, during the nine-months ended November 30, 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 and issued 245,001 shares of common stock in exchange for services valued in the amount of $73,500.

Stock Options

A summary of the Company’s stock option activity for the nine-months ended November 30, 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, November 30, 2022		5,059,769	$	0.53	$	690,000

The exercise prices and information related to options under the 2011 Plan outstanding on November 30, 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		2.49	$	0.53	$	0.53

The Company granted no stock options under its stock option 2011 Plan for the nine-month period ended November 30, 2022 and the nine-month period ended November 30, 2021. As a result of stock options granted during the Fiscal 2021 year, the Company recognized $163,218 and $489,654 in share-based compensation expense related to the fair value of vested stock options in the three-month and nine-month periods ended November 30, 2021.

Warrants

A summary of the Company’s warrant activity for the nine-months ended November 30, 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, November 30, 2022		8,132,498	$	1.17

There was no intrinsic value as of November 30, 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 November 30, 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		2.71	$	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 Nine-Months Ended November 30, 2022
Exercise Price	$	0.85
Share Price	$	0.317
Volatility %		225	%
Risk-Free Rate		1.98	%
Expected Term (yrs)		7.0
Dividend Rate		0	%