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Stockholders' Equity
 12 Months Ended
Feb. 29, 2020
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 29, 2020, there were 541,667 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 29, 2020, there were 50,000 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 2020, the Company granted options to acquire 17,500 shares to employees exercisable at prices ranging from $2.10 to $2.65, options to acquire 20,000 shares to the non-employee members of the board of directors with an exercise price of $2.65 and options for 200,000 shares to an officer and director exercisable at prices of ranging from $2.45 to $2.65. The options granted to employees and directors vest over three years and expire in ten years. The options granted to the officer vested upon grant and expire in ten years.

 

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.

 

A summary of the activity of both plans for fiscal 2020 and fiscal 2019 is as follows:

 

           Weighted Average 
   Stock Options   Exercise Price $   Fair Value 
   Outstanding   Exercisable   Outstanding   Exercisable   Vested 
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 
                          
Granted   237,500        $2.55           
Exercised   (231,333)        (0.88)          
Cancelled   (2,500)        (1.17)          
Balance - February 29, 2020   591,667    339,250   $1.77   $2.03   $0.35 

 

The intrinsic value of the Company’s options exercised during fiscal 2020 and fiscal 2019 was $44,082 and $111,218, respectively.

 

Information, at date of issuance, regarding stock option grants for fiscal 2020:

 

   Shares   Weighted
Average
Exercise
Price		   Weighted
Average
Fair
Value		 
Year ended February 29, 2020:               
  Exercise price exceeds market price   —    —    — 
  Exercise price equals market price   237,500   $2.55   $.34 
  Exercise price is less than market price   —    —    — 

 

The aggregate intrinsic value of the Company’s outstanding options at February 29, 2020 and February 28, 2019 was $150,752 and $169,608, respectively.

 

The following table summarizes information about stock options outstanding and exercisable at February 29, 2020:

 

       Weighted Average     
   Number   Remaining Life   Exercise   Number 
   Outstanding   in Years   Price   Exercisable 
Range of exercise prices:                    
$0.61   45,000    2.69   $0.61    45,000 
$0.91 to $0.97   109,834    6.26   $0.91    2,500 
$1.05   22,500    3.97   $1.05    22,500 
$1.06   73,333    7.21   $1.06    — 
$1.15 to $1.67   48,500    6.15   $1.30    44,500 
$2.10 to $2.65   272,500    9.33   $2.54    215,750 
$3.00   20,000    8.71   $3.00    9,000 
Total Options:   591,667              339,250