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FAIR VALUE (Tables)
 12 Months Ended
Feb. 28, 2013
FAIR VALUE  
Schedule of available-for-sale securities measured and recorded at fair value for which there are quoted prices in active markets on a recurring basis

 

 

Balance as of February 28, 2010

 

$

1,918,156

 

Disposed

 

(1,470,660

)

Changes in fair value

 

2,850

 

Foreign exchange difference

 

15,363

 

 

 

 

 

Balance as of February 28, 2011

 

$

465,709

 

 

 

 

 

Changes in fair value

 

(121,895

)

Foreign exchange difference

 

17,989

 

 

 

 

 

Balance as of February 29, 2012

 

$

361,803

 

 

 

 

 

Changes in fair value

 

34,331

 

Foreign exchange difference

 

3,821

 

 

 

 

 

Balance as of February 28, 2013

 

$

399,955

 
Schedule of additional information concerning the Group's available-for-sale securities

 

 

 

 

As of February 29, 2012

 

As of February 28, 2013

 

 

 

 

 

Gross

 

Gross

 

 

 

 

 

Gross

 

Gross

 

 

 

 

 

 

 

unrealized

 

unrealized

 

 

 

 

 

unrealized

 

unrealized

 

 

 

 

 

Cost

 

gains

 

(losses)

 

Fair value

 

Cost

 

gains

 

(losses)

 

Fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual fund

 

$

374,569

 

$

—

 

$

(12,766

)

$

361,803

 

$

378,390

 

21,565

 

$

—

 

$

399,955

 
Schedule of long-term investments

 

 

 

 

As of

 

As of

 

 

 

February 29,

 

February 28,

 

 

 

2012

 

2013

 

 

 

 

 

 

 

Long-term investment in Century Mingde (1)

 

$

—

 

$

2,411,073

 

Long-term investment in a third-party online platform (2)

 

—

 

3,080,000

 

 

 

 

 

 

 

 

 

$

—

 

$

5,491,073

 

 

 

(1)                                 In March 2012, the Group acquired 6% equity interest in Century Mingde, a private company that engages in providing summer and winter camp training service in China with a cash consideration of $2,411,073.

 

At the end of each reporting period, the Group calculates the fair value of these investments by using income approach discounted cash flow method. The discounted cash flow analysis requires the use of significant unobservable inputs (Level 3 inputs), including projected revenue, operating expenses, capital expenditures and a discount rate calculated based on the weighted average cost of capital. As of February 28, 2013, the net present value derived from such discounted cash flow model based on a discount rate of 19% approximated the initial purchase price.

 

(2)                                 In February 2013, the Group acquired 16.85% equity interest in a third-party online education platform, a private company incorporated in the Cayman Islands, by purchasing 2,200,000 Series A preferred shares for a total cash consideration of $3,080,000. As the transaction date was close to the fiscal year end, the initial purchase price is considered the fair value of this investment.
Schedule of information about inputs for the fair value measurements of the Group's assets that are measured at fair value on a recurring basis in periods subsequent to their initial recognition

 

 

 

 

Fair Value Measurement at Reporting Date Using

 

 

 

 

 

Quoted Prices in

 

Significant Other

 

Significant

 

 

 

February 29,

 

Active Market for

 

Observable

 

Unobservable

 

Description

 

2012

 

Identical Assets

 

Inputs

 

Inputs

 

 

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

 

 

 

 

 

 

 

 

 

 

Available for sale securities

 

$

361,803

 

$

361,803

 

—

 

—

 

Long-term investments

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

361,803

 

$

361,803

 

—

 

—

 

 

 

 

Fair Value Measurement at Reporting Date Using

 

 

 

 

 

Quoted Prices in

 

Significant Other

 

Significant

 

 

 

February 28,

 

Active Market for

 

Observable

 

Unobservable

 

Description

 

2013

 

Identical Assets

 

Inputs

 

Inputs

 

 

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

 

 

 

 

 

 

 

 

 

 

Available for sale securities

 

$

399,955

 

$

399,955

 

—

 

—

 

Long-term investments

 

$

5,491,073

 

—

 

—

 

$

5,491,073

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

5,891,028

 

$

399,955

 

—

 

$

5,491,073