Common Stock

During the three months ended May 31, 2016, the company sold 662,668 shares of its common stock, and 331,334 warrants to acquire shares of common stock at $3.00 per share resulting in proceeds to the Company of $1,988,003. In addition, 204,667 shares of common stock sold in the previous year were issued and reclassified to shares outstanding.

Warrants

The Company has not adopted a formal stock option plan, however, it has made periodic non-plan grants of warrants for services and financing.

During the year ended February 29, 2016, the Company issued warrants to purchase 2,220,000 shares of the Company's common stock at an exercise price of $.80 per share for services. The fair value of the warrants granted was determined to be $1,210,788. During the three months ended May 31, 2016, the Company amortized $41,359 of these costs which are included in operating expense. As of May 31, 2016 the unamortized balance of these costs was $301,335 which will be amortized over the next three years. The aggregate intrinsic value of the warrants outstanding as of May 31, 2016 was $4,148,000 calculated as the difference between the closing market price of $4.20 and the exercise price of the Company's warrants as of May 31, 2016.

During the three months ended May 31, 2016, the Company issued 331,334 warrants to purchase 662,668 shares of the Company's common stock at an exercise price of $3.00 per share to certain investors upon the sale of its equity securities.

The table below summarizes the Company's warrants activities:

The following table summarizes information concerning outstanding and exercisable warrants as of May 31, 2016: