Stock Options

12 Months Ended

Feb. 28, 2014

Stock Options [Abstract]

STOCK OPTIONS

7. STOCK OPTIONS

The Company’s 2000 Stock Option Plan provides that stock options are valid for ten years and vest twelve months after the award date unless otherwise stated in the option awards.  The 2000 Stock Option Plan terminated pursuant to its terms in July 2010.  The Company’s 2007 Stock Incentive Plan allows the Company to grant common stock, options, restricted stock, and stock appreciation rights to eligible individuals.  As of February 28, 2014, the Company had not granted any awards under the 2007 Stock Incentive Plan.

On January 23, 2006, the Board of Directors granted stock options to certain key employees and directors. The options, which became vested on January 23, 2007, were for a total of 14,700 shares and the exercise price was fixed at $3.95 per share, which was the price on the OTCBB at the time of the grant. The options are exercisable through January 23, 2016.  The remaining balance is 9,300 options.

On May 16, 2005, the Board of Directors granted stock options to certain key employees and directors. The options, which became vested on May 15, 2006, were for a total of 47,000 shares and the exercise price was fixed at $0.75 per share, which was the price on the OTCBB at the time of the grant. The options are exercisable through May 15, 2015.  The remaining balance is 9,000 options.

On May 17, 2004, the Board of Directors granted stock options to certain key employees and directors. The options, which became vested on May 16, 2005, were for a total number of 47,500 shares and the exercise price was fixed at $1.05 per share, which was the price on the OTCBB at the time of the grant. The options are exercisable through May 16, 2014.

On May 17, 2004, the Board of Directors awarded the Company’s President options totaling 175,636 shares, which are fully vested.  The exercise price of these options was fixed at $1.05 per share (the closing price on the OTCBB at the time of the grant).

In December 2000, a grant equal to 10% of the outstanding shares (254,624) was made to the Company’s President at the exercisable price of $0.40 per share (the closing stock price on the date of the grant). Fifty percent  (50%) of the total number of shares was immediately exercisable and the other 50% vested in five equal installments over the following five years.  All of these options are now fully vested.

Below is a summary of the Company’s Stock Option Activity:

	Options Outstanding			Weighted- Average Exercise  Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Balance, February 29, 2012		462,760		$	0.765		4.48		1,099,000
Expired		(1,200	)
Exercised		(10,000	)
Balance, February 28, 2013		451,560		$	0.757		3.65		1,360,000

Expired	(3,000	)
Balance, February 28, 2014	448,560		$	0.735	2.61	1,496,000

No options were granted in the years ended February 28, 2014 and February 28, 2013.

All of the Company’s outstanding options were vested as of February 28, 2014.  No shares vested during the years ended February 28, 2014 and February 28, 2013.

The following table summarizes information about stock options outstanding and exercisable at February 28, 2014:

				Options Outstanding					Exercisable Options
	Range of Exercise Prices			Number of Outstanding Options		Remaining Contractual Life	Weighted Average Exercise Price		Number		Weighted Average Exercise Price
$	0.400	$	0.400		254,624	Evergreen	$	0.400		254,624	$	0.400
$	1.050	$	1.050		175,636	Evergreen	$	1.050		175,636	$	1.050
$	0.750	$	0.750		9,000	1 years	$	0.750		9,000	$	0.750
$	3.950	$	3.950		9,300	2 years	$	3.950		9,300	$	3.950
					448,560		$	0.735		448,560	$	0.735

All options with a remaining contractual life outstanding are fully vested.