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Stockholders' Equity

12 Months Ended

Feb. 28, 2019

Equity [Abstract]

Stockholders' Equity

NOTE 12: STOCKHOLDERS’ EQUITY

Stock Options – Under the 2013 Stock Incentive Plan, as amended (the "2013 Plan"), options can be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 2,500,000 shares of the Company's common stock. Under the 2013 Plan options expire ten years after the date of grant. As of February 28, 2019, there were 488,000 options outstanding under the 2013 plan.

Under the 2003 Stock Incentive Plan, as amended (the "2003 Plan"), until May 2013, options were available to be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 1,500,000 of the Company's common shares. As of February 28, 2019, there were 100,000 options outstanding under the 2003 Plan, under which no additional options may be granted.

Under the 2013 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.

During fiscal 2019, the Company granted options to acquire 35,000 shares to employees exercisable at prices from $2.47 to $2.55 and options for 20,000 shares to a member of the board of directors with an exercise price of $3.00. The options vest annually over three years and expire in ten years.

During fiscal 2018, the Company granted options to acquire 110,000 shares to an officer, at an exercise price of $1.06 and options for 20,000 shares exercisable at prices from $1.15 to $1.67 to employees of the Company.

A summary of the activity of both plans for fiscal 2019 and fiscal 2018 is as follows:

									Weighted Average
			Stock Options						Exercise Price $								Fair Value
			Outstanding			Exercisable			Outstanding				Exercisable				Vested
Balance - February 29, 2017			839,600			395,405			$	0.91			$	0.89			$	0.32
Granted			130,000							1.12
Exercised			(57,500	)						(0.84	)
Cancelled			—							—
Balance - February 28, 2018			912,100			425,400			$	0.96			$	0.92			$	0.35

Granted			55,000						$	2.66
Exercised			(371,100	)						(0.96	)
Cancelled			(8,000	)						(1.12	)
Balance - February 28, 2019			588,000			171,000			$	1.10			$	0.85			$	0.34

The intrinsic value of the Company’s options exercised during fiscal 2019 and fiscal 2018 was $111,218 and $19,250, respectively.

Information, at date of issuance, regarding stock option grants for fiscal 2019:

			Shares				Weighted Average Exercise Price				Weighted Average Fair Value
Year ended February 28, 2019:
Exercise price exceeds market price				—				—				—
Exercise price equals market price				55,000			$	2.66			$	.90
Exercise price is less than market price				—				—				—

The aggregate intrinsic value of the Company’s outstanding options at February 28, 2019 and 2018 was $169,608 and $233,776, respectively.

The following table summarizes information about stock options outstanding and exercisable at February 28, 2019:

						Weighted Average
			Number			Remaining Life			Exercise				Number
			Outstanding			in Years			Price				Exercisable
Range of exercise prices:
$0.61			95,000			3.69			$	0.61			95,000
$0.91 to $0.97			243,500			7.34			$	0.91			2,500
$1.05			26,000			4.98			$	1.05			26,000
$1.06			110,000			8.22			$	1.06			—
$1.07 to $1.67			58,500			7.08			$	1.27			47,500
$2.47 to $2.55			35,000			9.80			$	2.50			—
$3.00			20,000			9.71			$	3.00			—
Total Options:			588,000										171,000