Annual report pursuant to Section 13 and 15(d)

STOCK OPTIONS

v2.4.0.6
STOCK OPTIONS
 12 Months Ended
Feb. 28, 2013
STOCK OPTIONS [Abstract]  
STOCK OPTIONS

NOTE 7

STOCK OPTIONS


On June 6, 2007, the Board of Directors approved the issuance of 4,360,000 stock options to key employees and directors of the Company. The options had an expiration date of 5 years from the date of grant and an exercise price of $0.06 per share.


The fair value of each option grant was calculated to be $.0272 on the date of grant using the Black-Schole Option pricing model with the following assumption used for grants during the applicable period.


         

Risk free rate

 

 

2.4%

 

Volatility

 

 

96.16%

 

Expected life

 

 

1.5 years

 

Dividend yield

 

 

0%

 


The following table summarizes the Company's stock options.


                     

Options

 

Shares

 

Weighted-
Average
Exercise
Price

 

Weighted-
Average
Remaining
Contractual
Term

 

Outstanding at March 1, 2012

 

 

125,000

 

$

0.06

 

 

0.3

 

Granted

 

 

-

 

 

-

 

 

-

 

Exercised

 

 

-

 

 

-

 

 

-

 

Forfeited or expired

 

 

(125,000

)

$

0.06

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at February 28, 2013

 

 

-

 

 

-

 

 

-

 

Exercisable at February 28, 2013

 

 

-

 

 

-

 

 

-

 


In August 2011, the president and one director exercised stock options. Total intrinsic value of options exercised during the period ended August 31, 2011 was $400,000. The Company recorded an excess tax benefit to APIC related to share-based compensation in the amount of $136,000 at August 31, 2011.


There are no outstanding options as of February 28, 2013.