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Stockholders' Equity
 12 Months Ended
Feb. 28, 2013
Equity [Abstract]  
Stockholders' Equity

NOTE 13: STOCKHOLDERS’ EQUITY

 

Stock Options – Under the 2003 Stock Incentive Plan, as amended ("2003 Plan"), options can be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 1,500,000 shares of the Company's common stock. Under the 2003 Plan options expire at various dates through 2023. As of February 28, 2013, there were 1,322,718 options outstanding under the 2003 plan.

 

Under the 2003 Stock Incentive Plan, option prices must be at least 100% of the fair market value of the common stock at time of grant. For qualified employees, except under certain circumstances specified in the plan or unless otherwise specified at the discretion of the Board of Directors, no option may be exercised prior to one year after date of grant, with the balance becoming exercisable in cumulative installments over a three year period during the term of the option, and terminating at a stipulated period of time after an employee's termination of employment.

 

On November 8, 2012, the Company granted 840,718 options to officers, and one person who became an officer subsequent to that date, and 140,000 options to directors, at an exercise price of $0.61. These options vest as follows: 33.33% on the date of grant, 33.33% one year from the date of grant and 33.33% two years from the date of grant. The options expire ten years from the date of grant. In exchange for the newly issued options, the officers and directors surrendered their outstanding options and these were cancelled. The surrendered options were set to expire at various dates from 2014 to 2021 and had an average strike price of $.95.

 

During Fiscal Year 2013, the Company also granted options for 115,000 shares exercisable at prices from $.48 to $.61 to officers of the Company and options for 10,000 shares exercisable at $.48 to an employee of the Company.

 

During Fiscal Year 2012, the Company granted options for 7,500 shares exercisable at prices from $1.09 to $1.30 to employees of the Company.

 

A summary of the activity of both plans for the years ended February 28, 2013 and February 29, 2012 is as follows:

 

           Weighted Average 
   Stock Options   Exercise Price   Fair Value 
   Outstanding   Exercisable   Outstanding   Exercisable   Vested 
Balance – February 28, 2011   1,361,268    1,104,293   $1.11   $1.06   $.34 
Granted   7,500         1.23           
Exercised   (13,933)        (.72)          
Cancelled   (36,375)        (1.00)          
Balance – February 29, 2012   1,318,460    1,204,660    1.10    1.11    .36 
Granted   1,105,718         .60           
Exercised   (47,566)        (.79)          
Cancelled   (1,053,894)        (.93)          
Balance – February 28, 2013   1,322,718    549,425   $.67   $.77   $.39 

 

The intrinsic value of the Company’s options exercised during the years ended February 28, 2013 and February 29, 2012 was $4,891 and $5,734, respectively.

 

Information, at date of issuance, regarding stock option grants for the years ended February 28, 2013:

 

   Shares   Weighted
Average
Exercise
Price		   Weighted
Average
Fair
Value		 
Year ended February 28, 2013:               
  Exercise price exceeds market price   -    -    - 
  Exercise price equals market price   1,105,718   $.60   $.31 
  Exercise price is less than market price   -    -    - 

 

The aggregate intrinsic value of the Company’s outstanding options at February 28, 2013 and February 29, 2012 was $459,966 and $493,435.

 

The following table summarizes information about stock options outstanding and exercisable at February 28, 2013:

 

   Number
Outstanding		   Weighted-
Average
Remaining
Life in
Years		   Weighted
Average
Exercise
Price		   Number
Exercisable		 
Range of exercise prices:                    
$.42 to $.50   104,500    8.75   $.48    42,000 
$.51 to $1.00   1,098,718    9.45   $.62    390,675 
$1.01 to $1.95   119,500    2.67   $1.28    116,750 
    1,322,718              549,425