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STOCK-BASED COMPENSATION | 12 Months Ended
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Feb. 29, 2024
Equity [Abstract] |
STOCK-BASED COMPENSATION | NOTE 4: STOCK-BASED COMPENSATION Stock Options – In May 2023, the Company’s Board of Directors authorized the creation of the 2023 Stock Incentive Plan (the “2023 Plan”) pursuant to which the Company may grant up to 2,500,000 options or shares to officers, directors, employees and consultants of the Company and its subsidiaries. The Company’s shareholders approved the adoption of the 2023 Plan in August 2023. The 2023 Plan replaced the 2013 Stock Incentive Plan (the “2013 Plan”) under which no additional options or shares could be granted after June 2023. There are currently 65,793 and 229,749 options outstanding, respectively, under the 2023 Plan and the 2013 Plan. Under the 2023 Stock Incentive Plan, as amended (the "2023 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 2023 Plan options expire ten 10 years after the date of grant. During fiscal 2024, the Company granted options to acquire 54,813 shares to employees exercisable at prices ranging from $4.79 to $5.60 and options to acquire 18,380 shares to the non-employee members of the board of directors with an exercise price of $4.79. The options granted to employees and directors vest over three 3 years and expire in 10 ten years. The options granted by the Company during fiscal 2024 had a combined weighted average grant date fair value of $3.11 per share. During fiscal 2023, the Company granted options to acquire 28,239 shares to employees exercisable at prices ranging from $5.45 to $5.96 and options to acquire 16,500 shares to the non-employee members of the board of directors with an exercise price of $5.50. The options granted to employees and directors vest over three 3 years and expire in 10 ten years. The options granted by the Company during fiscal 2023 had a combined weighted average grant date fair value of $3.44 per share. A summary of the activity for both plans, for fiscal 2024 and fiscal 2023 is as follows: Stock-based compensation - summary of stock options
|  |  |  |  |  |  |  |  | Weighted Average |
|  |  | Stock Options |  |  | Exercise Price $ |  |  | Remaining |
|  |  | Outstanding |  |  | Exercisable |  |  | Outstanding |  |  | Exercisable |  |  | Term - Years |
| Balance - February 28, 2022 |  |  |  | 253,710 |  |  |  | 61,690 |  |  | $ | 4.46 |  |  | $ | 3.53 |  |  |  | 8.94 |
| Granted |  |  |  | 44,739 |  |  |  |  |  |  |  | 5.71 |  |  |  |  |  |  |  |  |
| Exercised |  |  |  | (16,973 | ) |  |  |  |  |  |  | (1.77 | ) |  |  |  |  |  |  |  |
| Cancelled |  |  |  | (30,717 | ) |  |  |  |  |  |  | (4.66 | ) |  |  |  |  |  |  |  |
| Balance - February 28, 2023 |  |  |  | 250,759 |  |  |  | 133,609 |  |  | $ | 4.84 |  |  | $ | 4.62 |  |  |  | 8.52 |
| Granted |  |  |  | 73,193 |  |  |  |  |  |  | $ | 5.02 |  |  |  |  |  |  |  |  |
| Exercised |  |  |  | (19,701 | ) |  |  |  |  |  |  | (3.62 | ) |  |  |  |  |  |  |  |
| Cancelled |  |  |  | (8,709 | ) |  |  |  |  |  |  | (4.20 | ) |  |  |  |  |  |  |  |
| Balance - February 29, 2024 |  |  |  | 295,542 |  |  |  | 181,376 |  |  | $ | 4.99 |  |  | $ | 4.89 |  |  |  | 8.04 |
The aggregate intrinsic value of the Company’s vested and exercisable options at February 29, 2024 was $167,709. For the years ended February 29, 2024 and February 28, 2023 the Company recognized $203,577 and $256,740 in stock based compensation expense, respectively. Such amounts are included in general and administrative expenses on the consolidated statements of income. Total compensation expense related to non-vested options not yet recognized as of February 29, 2024 was $298,000 and will be recognized over the next three 3 years based on vesting date. The amount of future stock option compensation expense could be affected by any future option grants or by any forfeitures. During the year ended February 29, 2024, the Company had net settlement exercises of stock options, whereby, the optionee did not pay cash for the options but instead received the number of shares equal to the difference between the exercise price and the market price on the date of exercise. Net settlement exercises during the year ended February 29, 2024 resulted in 8,807 shares of common stock issued. Determining the appropriate fair value of the stock-based awards requires the input of subjective assumptions, including the fair value of the Company’s common stock, and for stock options, the expected life of the option, and the expected stock price volatility. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. The expected term of the options is estimated based on the Company’s historical exercise rate. The expected life of awards that vest immediately use the contractual maturity since they are vested when issued. For stock price volatility, the Company uses its expected volatility of the price of the Company’s common stock based on historical activity. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option at the grant-date. The weighted-average fair value of options has been estimated on the date of grant using the Black-Scholes options-pricing model. The weighted-average Black-Scholes assumptions are as follows: Schedule of weighted-average black-scholes assumptions
|  | Fiscal Year Ended |
|  | February 29, 2024 |  |  | February 28, 2023 |
Expected life |  | 5 - 8 years |  |  | 5 - 8 years |
Risk free interest rate |  | 2.82% - 4.39% |  |  | 2.82% – 4.02% |
Expected volatility |  | 55.02% - 62.48% |  |  | 55.02% - 62.01% |
Expected dividend yield |  | 0% |  |  | 0% |

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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