DigitalTown (DGTW) 10-K 6 Jun 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Feb. 29, 2016	May. 31, 2016	Aug. 31, 2015
Document And Entity Information
Entity Registrant Name	DigitalTown, Inc.
Entity Central Index Key	1,065,598
Document Type	10-K
Document Period End Date	Feb. 29, 2016
Amendment Flag	false
Current Fiscal Year End Date	--02-29
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 6,515,235
Entity Common Stock, Shares Outstanding		41,461,543
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Feb. 29, 2016	Feb. 28, 2015
Current assets:
Cash	$ 14,660	$ 134,469
Accounts receivable	447
Prepaid domain name renewal fees	59,629	$ 21,203
Total current assets	74,736	155,672
Property and equipment, net	5,817	2,229
Total assets	80,553	157,901
Current liabilities:
Accounts payable	152,646	73,366
Accounts payable – related parties	61,282	$ 4,269
Notes payable-related party	75,000
Accrued expense	549	$ 95,798
Deferred officer compensation	352,292
Total current liabilities	$ 641,769	$ 173,433
Commitments and contingencies
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 41,461,543 and 31,138,422 shares issued and outstanding at February 29, 2016 and 2015, respectively	$ 311,384	$ 414,615
Additional paid-in-capital	$ 28,614,679	$ 30,967,377
Stock payable	11,500	37,500
Subscriptions receivable	(625,482)	(12,150)
Accumulated deficit	(28,873,297)	(31,422,874)
Total stockholders’ equity (deficit)	(561,216)	(15,532)
Total liabilities and stockholders’ equity (deficit)	$ 80,553	$ 157,901

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - shares	Feb. 29, 2016	Feb. 28, 2015
Statement of Financial Position [Abstract]
Common stock, $0.01 par value, shares authorized	2,000,000,000	2,000,000,000
Common stock, $0.01 par value, shares issued and outstanding	31,138,422	41,461,543

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Income Statement [Abstract]
Revenues	$ 1,596	$ 839
Cost of revenues	178,739	255,925
Gross loss	(177,143)	(255,086)
Operating expenses:
Selling, general and administrative expenses	498,569	2,028,877
Loss from operations	$ (675,712)	(2,283,963)
Other income (expense):
Gain on settlement of accounts payable		28,019
Loss on conversion of accrued salary to common shares		$ (293,633)
Interest expense	$ (2,323)
Total other income (expense)	(2,323)	$ (265,614)
Loss before income taxes	$ (678,035)	$ (2,549,577)
Income tax provision
Net loss	$ (678,035)	$ (2,549,577)
Net loss per common share – basic and diluted	$ 0	$ 0
Weighted average number of common shares outstanding – basic and diluted	30,631,079	34,163,263

Consolidated Statement of Share

Consolidated Statement of Shareholders Equity (Deficit) - USD ($)	Common Stock	Additional Paid-In Capital	Treasury Stock	Other Comprehensive Income / Loss	Retained Earnings / Accumulated Deficit	Total
Common stock issued for cash	$ 6,034	$ 148,466	$ 11,500	$ 0	$ 0	$ 166,000
Common stock issued for cash, in shares	603,000
Payments received on subscription agreements	$ 0	0	0	15,913	0	15,913
Stock-based compensation	0	190,246	0	0	0	190,246
Common stock issued for conversion of accounts payable	$ 1,068	25,632	0	0	0	26,700
Common stock issued for conversion of accounts payable, in shares	106,800
Inputed interest on accounts payable - related party	$ 0	2,323	0	0	0	2,323
Net Loss	0	0	0	0	(678,035)	(678,035)
Balance at Feb. 28, 2015	$ 311,384	28,614,679	11,500	(625,482)	(28,873,297)	(561,216)
Balance, in shares at Feb. 28, 2015	31,138,422
Common stock issued for cash	$ 49,270	813,480	37,500	(5,000)	0	895,250
Common stock issued for cash, in shares	4,927,000
Common stock issued into escrow	$ 7,500	(7,500)	0	0	0	0
Common stock issued into escrow, in shares	750,000
Common stock and warrants issued for coversion of accrued salary- related party	$ 12,923	116,308	0	0	0	129,231
Common stock and warrats issued for conversion of accrued salary - related party, in shares	1,292,310
Stock-based compensation	$ 33,128	1,419,320	0	(7,150)	0	1,445,298
Settlement of deferred salary to stock receivable - related party	0	0	0	625,482	0	625,482
Common stock issued for conversion of accounts payable	$ 410	11,090	(11,500)	0	0	0
Common stock issued for conversion of accounts payable, in shares	41,000
Net Loss	$ 0	0	0	0	(2,549,577)	(2,549,577)
Balance at Feb. 29, 2016	$ 414,615	$ 30,967,377	$ 37,500	$ (12,150)	$ (31,422,874)	$ (15,532)
Balance, in shares at Feb. 29, 2016	41,461,543

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (678,035)	$ (2,549,577)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation	$ 4,119	3,588
Gain on settlement of accounts payable		(28,019)
Loss on settlement of deferred officer compensation		$ 293,633
Imputed interest
Stock based compensation	$ 190,246	$ 1,445,298
Accounts receivable	(447)	447
Prepaid domain name renewal fees	(12,056)	38,426
Accounts payable	22,439	(51,261)
Accounts payable – related parties	58,220	(57,013)
Accrued expenses	49	95,249
Deferred officer compensation	119,100	108,788
Net cash used in operating activities	$ (294,042)	$ (700,441)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable – related party	$ 85,000	$ 15,000
Payments on notes payable – related party	(10,000)	$ (90,000)
Proceeds from related parties payable	1,200
Payments received on stockholder subscriptions receivable	15,913
Proceeds from issuance of common stock	166,000	$ 895,250
Net cash provided by financing activities	258,113	820,250
Net change in cash and cash equivalents	(35,929)	119,809
Cash and cash equivalents, beginning of year	134,469	14,660
Cash and cash equivalents, end of year	14,660	134,469
Non-Cash Transactions:
Issuance of common stock for stock payable		$ 11,500
Conversion of accounts payable to common shares	$ 26,700
Settlement of deferred officer accrued compensation with stock receivable		$ 331,849
Common stock issued into escrow		7,500
Conversion of accrued salary into common shares – related party		$ 129,231

Nature of Business and Summary

Nature of Business and Summary of Significat Account Policies	12 Months Ended
	Feb. 29, 2016
Accounting Policies [Abstract]
Nature of Business and Summary of Significat Account Policies	Note 1. Nature of Business and Summary of Significant Accounting Policies Nature of Business The Company was founded in 1982 under the laws of the State of Minnesota as Command Small Computer Learning Center, Inc., a computer training company and operated under several different names in the computer hardware and training sector. In 2005, the Company began acquiring domain names. On March 1, 2007, the Company changed its name to DigitalTown, Inc. and began developing a business plan to develop a platform to monetize their domain names. The Company’s headquarters are located at 10655 NE 4 th The Company’s consolidated financial statements have been prepared using U.S. GAAP applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has a working capital deficit, recurring losses, and negative cash flows from operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty. At February 29, 2016 the Company had an accumulated deficit of $31,327,076. The Company anticipates that expected future proceeds from additional financing through the sale of its common stock or other equity-based securities, and additional sales and/or leases of existing domain names will be sufficient to meet its working capital and capital expenditure needs through at least February 28, 2017. In the event that the Company is unable to obtain additional capital in the future, the Company would be forced to further reduce operating expenses and/or cease operations altogether. Principles of Consolidation The Company files consolidated financial statements that include its wholly-owned subsidiaries Tiger Media and The School Network, Inc. All material intercompany accounts and transactions have been eliminated in consolidation. Reclassifications Certain prior period amounts in the consolidated statement of cash flows have been reclassified to conform to the current period presentation. Proceeds from related party notes payable received in the prior period have been reclassified from the prior period classification. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S.”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Accounts Receivable Accounts receivable arose from the sale of and commission earned from display advertising. The Company evaluates collectability of accounts receivable based on a combination of factors including the age of the receivable or a specific customer’s inability to meet its financial conditions. In these circumstances, the Company records an allowance to reduce the receivable to an amount it deems collectible. The Company has determined that an allowance for doubtful accounts is not necessary as of February 29, 2016 and February 28, 2015. Revenue Recognition The Company recognizes revenue when the following four criteria have been met: Persuasive evidence that an agreement exists Delivery has occurred The price is fixed and determinable Collectability is reasonably assured The Company recognizes revenue from the sale of display advertising appearing on specific pages of individual spirit sites within DigitalTown’s network. Display advertising is sold by the Company directly to local merchants and placed by the Company on specific pages of individual spirit sites targeted by the local merchant. The terms of these sales are for a fixed monthly amount for a period ranging from three months to one year. The Company has also entered into certain third party agreements which allow display advertising to be placed on individual spirit sites within DigitalTown’s network. Per these agreements, the Company receives commissions based on a percentage of the per click or per-impression revenue generated by these ads. The Company recognizes these commissions received as revenue. Fair Value of Financial Instruments Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) 820-10-5, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under accounting principles generally accepted in the U.S. (“U.S. GAAP”), certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value. As of February 29, 2016 and February 28, 2015, the Company does not have any financial instruments that must be measured under the new fair value standard. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3 - Unobservable inputs that reflect the Company’s assumptions about the assumptions that market participants would use in pricing the asset or liability. There were no transfers of financial assets or liabilities between Level 1 and Level 2 inputs for the years ended February 29, 2016 and February 28, 2015. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturity of three months or less when purchased to be cash equivalents. As of February 29, 2016 and February 28, 2015, the Company had no cash equivalents. Cash Deposits in Excess of Federally Insured Limits The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts are insured by the Federal Deposit Insurance Company and currently have insurance coverage up to $250,000. At February 29, 2016 and February 28, 2015, the Company had no uninsured cash balances. Prepaid Domain Names The annual domain name renewal fees are currently being amortized over one year and the purchase of any new domain names are the only amounts being capitalized. See Note 4 for further information. Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over their estimated useful lives, ranging from three to five years. Leasehold improvements are amortized over the shorter of the useful life or the term of the related lease. The Company recorded $3,588 and $4,119 of depreciation expense for the years ended February 29, 2016 and February 28, 2015, respectively. Repairs and maintenance costs are expensed as incurred; major renewals and improvements are capitalized. As items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operating income. See Note 3 for further information. Income Taxes Deferred tax assets (net of any valuation allowance) and liabilities resulting from temporary differences, net operating loss carryforwards and tax credit carryforwards are recorded using an asset-and-liability method. Deferred taxes relating to temporary differences and loss carryforwards are measured using the tax rate expected to be in effect when they are reversed or are realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be ultimately realized. The Company has recorded a full valuation allowance against the net deferred tax asset due to the uncertainty of realizing the related future benefits. The Company accounts for income taxes pursuant to FASB guidance. This guidance prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company’s adoption on March 1, 2009 of the provisions specifically related to uncertain tax positions resulted in no cumulative effect adjustment. The Company believes its income tax filing positions and deductions will be sustained upon examination and, accordingly, no reserves or related accruals for interest and penalties have been recorded at February 29, 2016 or February 28, 2015. In accordance with the guidance, the Company has adopted a policy under which, if required to be recognized in the future, interest related to the underpayment of income taxes will be classified as a component of interest expense and any related penalties will be classified in operating expenses in the statements of operations. The Company has three open years of tax returns subject to examination. Stock-Based Compensation, Including Options and Warrants The Company recognizes the cost of stock-based compensation plans and awards in operations on a straight-line basis over the respective vesting period of the awards. The Company measures and recognizes compensation expense for all stock-based payment awards made to employees, directors, consultants and advisors. The compensation expense for the Company's stock-based payments is based on estimated fair values at the time of the grant. The Company estimates the fair value of stock-based payment awards on the date of grant using the Black-Scholes option pricing model. This option pricing model involves a number of assumptions, including the expected lives of stock options, the volatility of the public market price for the Company's common stock and interest rates. Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that are ultimately expected to vest. Advertising Advertising costs are charged to operations when incurred. The Company did not incur any advertising expense during the years ended February 29, 2016 or February 28, 2015. Recently Issued Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-11, Simplifying the Measurement of Inventory, which requires that inventory be measured within the scope of the Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this Update are to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. This ASU conforms with the Company's current protocol for evaluating inventory and the Company will prospectively implement adoption of this ASU. The Company does not expect the adoption of the ASU to have a significant impact on our consolidated financial statements. On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. The ASU is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early application is permitted. The ASU requires retrospective application to all prior periods presented in the financial statements. The Company has elected not to early adopt ASU 2015-03. In January 2015, the FASB issued ASU 2015-01, Income Statement –Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements. Management does not anticipate that the adoption of these standards will have a material impact on the financial statements. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Going Concern

Going Concern	12 Months Ended
	Feb. 29, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	Note 2. Going Concern The Company’s consolidated financial statements have been prepared using accounting principles generally accepted in the U.S. applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has a working capital deficit, recurring losses, and negative cash flows from operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty. At February 29, 2016 the Company had an accumulated deficit of $31,422,874. The Company anticipates that expected future proceeds from additional financing through the sale of its common stock or other equity-based securities, and additional sales and/or leases of existing domain names will be sufficient to meet its working capital and capital expenditure needs through at least February 28, 2017. In the event that the Company is unable to obtain additional capital in the future, the Company would be forced to further reduce operating expenses and/or cease operations altogether.

Property and Equipment

Property and Equipment	12 Months Ended
	Feb. 29, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 3. Property and Equipment Property and equipment are as follows: February 29, February 28, 2016 2015 Office equipment and furniture $ 512,156 $ 512,156 Less accumulated depreciation (509,927) (506,339) Property and equipment, net $ 2,229 $ 5,817 Depreciation expense for the fiscal years ended February 29, 2016 and February 28, 2015 was $3,588 and $4,119, respectively.

Prepaid Domain Names

Prepaid Domain Names	12 Months Ended
	Feb. 29, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Prepaid Domain Names	Note 4. Prepaid Domain Names During the years ended February 29, 2016 and February 28, 2015, the Company incurred $127,005 and $190,755, respectively, of annual domain name renewal fees and has expensed $166,312 and $178,699, respectively, to cost of revenues on a straight-line basis and has recorded $21,203 and $59,629, respectively, as prepaid domain name renewal fees as of February 29, 2016 and February 28, 2015. The amounts paid for the annual domain name renewal fees of $127,005 and $190,755, are paid directly to Epik, LLC, a company which is controlled by Robert Monster, the Company’s Chief Executive Officer. Epik, LLC, then uses those funds to directly pay Verisign and ICANN companies for the annual domain renewal costs of $7.85 and $0.25, respectively, per domain name.

Accrued Salary and Deferred Off

Accrued Salary and Deferred Officer Compensation	12 Months Ended
	Feb. 29, 2016
Compensation and Retirement Disclosure [Abstract]
Accrued Salary and Deferred Officer Compensation	Note 5. Accrued Salary and Deferred Officer Compensation Richard Pomije, the former CEO, CFO and Chairman of the Company has elected to forego a portion of his salary at various times due to the Company’s limited operating funds. These amounts do not accrue interest and are due and payable as funds become available in the future. During the year ended February 29, 2016 During the year ended February 28, 2015 On May 18, 2015, Founder Richard Pomije resigned from the Company. At that time, the Board of Directors was aware of no continuing employment agreement. The Company released Mr. Pomije on September 11, 2015 concurrent with closing the Burnsville, MN office. Mr. Pomije is asserting a continuing obligation on the part of the Company in the form of a monthly salary for a 1 year term. The Company has accrued a liability of $95,798 as of February 29, 2016. On February 10, 2016, Robert Monster, CEO converted $129,231 of his accrued salary into 1,292,310 common shares and 1 year stock options with an exercise price of $0.15. The shares and warrants were valued on the conversion date in the amounts of $109,846 and $19,385, respectively. As the value of the shares and warrants equaled the conversion amount of accrued salary, no gain or loss was recorded as a result of this transaction. As of February 29, 2016 and February 28, 2015, the accrued salary owed to Robert Monster was $0 and $0, respectively.

Stockholders Equiety

Stockholders Equiety	12 Months Ended
	Feb. 29, 2016
Equity [Abstract]
Stockholders Equity	Note 6. Stockholders’ Equity Fiscal 2016 Stock Transactions During the year ended February 29, 2016, the Company entered into stock purchase agreements and issued 4,927,000 restricted common shares at $0.10 per share, for total cash proceeds of $895,250. The restricted common shares were valued based at the cash sales price of $0.10. Each of these shares included 1 year warrants with an exercise price of $0.15. The fair market value of the warrants issued during the year ended February 29, 2016 was $152,628. The relative fair market value of the shares and warrants to the cash received were $179,906 and $98,594, respectively. On January 1, 2016, 750,000 common shares were issued into escrow at par value of $7,500 in preparation by the Company for an acquisition to occur during Q1’17. On January 1, 2016, the Company issued 3,312,811 common shares to Robert Monster, CEO, in accordance with his employment agreement dated May 18, 2015. The shares were valued based on the employment agreement date. As 2,597,761 shares were earned due to the one year term of the employment agreement which has not yet completed, the stock based compensation of $779,325 was recorded during the year ended February 29, 2016. The remaining shares which were not yet vested were recorded as a subscription receivable to be recorded in the 2017 fiscal year upon the completion of the employment agreement term. On February 10, 2016, Robert Monster, CEO converted $129,231 of his accrued salary into 1,292,310 common shares and 1 year stock options with an exercise price of $0.15. The shares and warrants were valued on the conversion date in the amounts of $109,846 and $19,385, respectively. As the value of the shares and warrants equaled the conversion amount of accrued salary, no gain or loss was recorded as a result of this transaction. During the year ended February 29, 2016, 41,000 common shares were issued for stock payables from the 2015 fiscal year which amounted to $11,500 which was previously recorded as a stock payable as of February 28, 2015. Fiscal 2015 Stock Transactions During the three months ended February 28, 2015, the Company entered into stock purchase agreements and issued 260,000 restricted common shares at $0.25 per share, for total cash proceeds of $65,000. The restricted common shares were valued based on the cash sales price. The Company also entered into stock purchase agreements at $0.25 per share for total cash proceeds of $9,000 for which the 36,000 restricted common shares were not issued as of February 28, 2015. The $9,000 is included in the stock payable balance of $11,500 as of February 28, 2015. During the three months ended November 30, 2014, the Company entered into stock purchase agreements and issued 268,000 restricted common shares at $0.25 per share, for total cash proceeds of $67,000. The restricted common shares were valued based at the market price on the grant date. On October 22, 2014, the Company issued 106,800 restricted common shares at $0.25 per share to the Company’s former contract Chief Financial Officer as settlement for the outstanding balance of his related party accounts payable balance of $26,700 related to past consulting fees. Even though the fair value of the liability was $26,700, and the fair value of the shares granted as of October 9, 2014, the date of the oral agreement, was $16,020 (based on market value of $0.15 per share), the balance of $10,680 was recognized in additional paid-in capital due to the related party status. On August 7, 2014, the Company entered into a stock purchase agreement and issued 60,000 restricted common shares at $0.25 per share, for total cash proceeds of $15,000. The restricted common shares were valued based at the market price on the grant date. On May 6, 2014, the Company entered into a stock purchase agreement and issued 5,000 restricted common shares at $0.50 per share, for total cash proceeds of $2,500. The restricted common shares were valued based at the market price on the grant date. The stockholder purchased 10,000 shares for $5,000 but the transfer agent only issued 5,000 shares (in February 2015). The other $2,500 received on May 6, 2014 is recorded as stock payable as of February 28, 2015 until the remaining shares are issued in the first quarter of fiscal 2016. On April 25, 2014, the Company entered into a stock purchase agreement and issued 10,000 restricted common shares at $0.50 per share, for total cash proceeds of $5,000. The restricted common shares were valued based at the market price on the grant date. Stock Warrants As of February 29, 2016 Stockholders purchasing stock during the fourth quarter of fiscal year 2016 were granted a one year warrant for each share of stock purchased. The $0.15 warrants vested immediately and expire January 1, 2017. On December 4, 2015, one board member was issued 200,000 warrants as compensation to purchase shares of the Company stock at $0.10 per share. The warrants vested immediately and expire December 3, 2025. The total estimated value using the Black-Scholes Model, based on a volatility rate of 125% and a call option value of $0.13 was $25,994. On December 4, 2015, one consultant was issued 200,000 warrants as compensation to purchase shares of the Company stock at $0.10 per share. The warrants vested immediately and expire December 3, 2025. The total estimated value using the Black-Scholes Model, based on a volatility rate of 125% and a call option value of $0.13 was $25,944. On September 10, 2015, one consultant was issued 200,000 warrants as compensation to purchase shares of the Company stock at the closing price as of September 9, 2015 of $0.30 per share. The warrants vested immediately and expire on September 10, 2025. The total estimated value using the Black-Scholes Model, based on a volatility rate of 121% and a call option value of $0.285 was $57,001. On September 10, 2015, one consultant was issued 200,000 warrants as compensation to purchase shares of the Company stock at the price of $0.30 per share. The warrants vested immediately and expire on September 10, 2025. The total estimated value using the Black-Scholes Model, based on a volatility rate of 121% and a call option value of $0.285 was $57,001. On September 10, 2015, one consultant was issued 100,000 warrants as compensation to purchase shares of the Company stock at the price of $0.30 per share. The warrants vested immediately and expire on September 10, 2025. The total estimated value using the Black-Scholes Model, based on a volatility rate of 121% and a call option value of $0.285 was $28,500. On May 5, 2015, Jeffrey Mills, a Director, was issued 200,000 warrants as compensation to purchase shares of the Company stock at the price as of May 4, 2015 of $0.25 per share. The warrants vested immediately and are exercisable until May 5, 2025. The total estimated value using the Black-Scholes Model, based on a volatility rate of 125% and a call option value of $0.24 was $47,817. On May 5, 2015, one consultant was issued 200,000 warrants as compensation to purchase shares of the Company stock at the price of $0.25 per share. The warrants vested immediately and are exercisable until May 5, 2025. The total estimated value using the Black-Scholes Model, based on a volatility rate of 125% and a call option value of $0.24 was $47,817. On May 5, 2015, one consultant was issued 50,000 warrants as compensation to purchase shares of the Company stock at the price of $0.25 per share. The warrants vested immediately and are exercisable until May 5, 2025. The total estimated value using the Black-Scholes Model, based on a volatility rate of 125% and a call option value of $0.24 was $11,954. On May 5, 2015, Darvin Habben, Chairman of the Board, was issued 400,000 warrants as compensation to purchase shares of the Company stock at the price of $0.25 per share. The warrants vested immediately and are exercisable until May 5, 2025. The total estimated value using the Black-Scholes Model, based on a volatility rate of 125% and a call option value of $0.24 was $95,634. On April 3, 2015, one consultant was issued 300,000 warrants as compensation to purchase shares of the Company stock at the price of $0.15 per share. The warrants vested immediately and are exercisable until April 3, 2025. The total estimated value using the Black-Scholes Model, based on a volatility rate of 122% and a call option value of $0.14 was $42,808. On April 21, 2014, the Company canceled 300,000 stock purchase warrants issued to four consultants on January 10, 2014. The Company utilized the following key assumptions in computing the fair value of the warrants using the Black-Scholes pricing model: April 3, May 5, September 10, 2015 2015 2015 Weighted-average volatility 122% 125% 121% Expected dividends None None None Expected term (in years) 10.00 10.00 10.00 Weighted-average risk-free interest rate 1.92% 2.19% 2.23% Weighted-average fair value of warrants granted $0.14 $0.21 $0.29 December 4, January 1, 2015 2016 Weighted-average volatility 122% 126% Expected dividends None None Expected term (in years) 10.00 1.00 Weighted-average risk-free interest rate 1.92% 0.66% Weighted-average fair value of warrants granted $0.14 $0.15 The following table summarizes information about the Company’s stock warrant changes during the years ended February 29, 2016 and February 28, 2015: Number of Warrants Outstanding - February 28, 2014 495,000 Granted 700,000 Canceled or expired (495,000) Outstanding - February 28, 2015 700,000 Granted 4,510,000 Canceled or expired (700,000) Outstanding - February 28, 2016 4,510,000 Exercisable at February 28, 2016 4,510,000 The following table summarizes information about stock warrants outstanding as of February 29, 2016: Exercise Price Number Outstanding Weighted Average Remaining Life (years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercisable Price $0.25 300,000 9.08 $0.24 300,000 $0.24 $0.25 850,000 9.17 $0.24 850,000 $0.24 $0.30 500,000 9.50 $0.28 500,000 $0.28 $0.10 400,000 9.75 $0.13 400,000 $0.13 $0.15 2,460,000 0.83 $0.07 2,460,000 $0.07 $0.15 - $0.30 4,510,000 4.70 $0.14 4,510,000 $0.14 The Company recorded stock-based compensation expense of $388,532 and $62,494 for all outstanding stock warrants for the years ended February 29, 2016 and February 28, 2015, respectively. This expense is included in selling, general and administrative expense.

Stock Options

Stock Options	12 Months Ended
	Feb. 29, 2016
Accounting Policies [Abstract]
Stock Options	Note 7. Stock Options The Company has one stock option plan called The 2006 Employee Stock and Option Plan. As of February 29, 2016, an aggregate of 5,000,000 shares of common stock may be granted under this plan determined by the Board of Directors. The stock options may be granted to officers and employees of the Company. Options granted under this plan are non-qualified stock options and have exercise prices and vesting terms established by the Board of Directors at the time of each grant. Vesting terms of the outstanding options range from immediate to four years from the date of grant. The terms of the options range from five to ten years from the date of grant. The Company records its stock-based compensation arrangements calculating the fair value of share-based payments, including grants of employee stock options and employee stock purchase plan shares, to be recognized in the consolidated statements of operations based on their grant date fair values. The fair value of the Company’s stock options have been estimated using the Black-Scholes pricing model, which requires assumptions as to expected dividends, the options expected life, volatility and risk-free interest rate at the time of the grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite vesting periods in the Company’s consolidated statements of operations. For the year ended February 29, 2016 the Company granted 1,292,310 options to Robert Monster, CEO with a term of 10 years and the options vested on the grant date of February 10, 2016. In addition during the year ended February 29, 2016 the Company granted: (1) 200,000 options to Robert Monster and 400,000 options to two officers with a term of 10 years and the options vested on the grant date of December 4, 2015: (2) 200,000 options to two employees with a term of 10 years and the options vested on the grant date of September 10, 2015: (3) and 500,000 options to three employees with a term of 10 years and the options vested on the grant date of May 5, 2015. In May 2015, Richard Pomije resigned as CEO, President, CFO and Chairman of the Board. Due to his resignation, Mr. Pomije forfeited 2,750,000 options that were granted in October 2011. The fair value of the Company’s stock options have been estimated using the Black-Scholes pricing model, which requires assumptions as to expected dividends, the option’s expected life, volatility and risk-free interest rate at the time of the grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite vesting periods in the Company’s consolidated statements of operations. The Company utilized the following key assumptions in computing the fair value of the options using the Black-Scholes pricing model: February 10, December 4, 2016 2015 Weighted-average volatility 126% 125% Expected dividends None None Expected term (in years) 1.00 10.00 Weighted-average risk-free interest rate 0.42% 1.71% September 10, May 5, 2015 2015 Weighted-average volatility 121% 125% Expected dividends None None Expected term (in years) 10.00 10.00 Weighted-average risk-free interest rate 2.23% 1.54% The Company recorded stock-based compensation expense of $271,116 and $190,246 for all outstanding options for the years ended February 29, 2016 and February 28, 2015, respectively. This expense is included in selling, general and administrative expense. As of February 29 , 2016 The following table summarizes information about the Company’s stock options as of February 29, 2016 and changes during the years ended February 29, 2016 and February 28, 2015: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Life (years) Aggregate Intrinsic Value (1) Outstanding - February 28, 2014 3,960,000 $ 0.96 - $ - Granted 525,000 0.12 - - Canceled or expired (1,035,000) 0.87 - - Outstanding - February 28, 2015 3,450,000 $ 0.96 - $ - Granted 2,592,310 0.10 - - Canceled or expired (3,450,000) 0.86 - - Outstanding - February 28, 2016 2,592,310 $ 0.10 5.21 $ - Exercisable at February 28, 2016 2,592,310 $ 0.10 5.21 $ - (1) The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. The following table summarizes information about stock options outstanding as of February 29, 2016: Exercise Price Number Outstanding Weighted Average Remaining Life (years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercisable Price $0.25 500,000 9.17 $0.21 500,000 $0.21 $0.30 200,000 9.50 $0.25 200,000 $0.25 $0.10 600,000 9.75 $0.12 600,000 $0.12 $0.15 1,292,310 0.92 $0.02 1,292,310 $0.02 $0.10 - $0.30 2,592,310 5.21 $0.09 2,592,310 $0.09

Related Party Transactions

Related Party Transactions	12 Months Ended
	Feb. 29, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 8. Related Party Transactions Lease with Director/Stockholder Since September 1, 2014 the Company has had a month-to-month agreement requiring rental payments of $1,050 per month. Mr. Mills invoiced the Company $1,868 and $20,250 for the years ended February 29, 2016 and February 28, 2014, respectively. At February 29, 2016 and February 28, 2015, the Company owed Mr. Mills $0 and $24,065, respectively, pertaining to the lease. Accounts Payable – Related Parties The Company had accounts payable balances due to related parties of $4,269 at February 29, 2016 due to Richard Pomije. The balance at February 28, 2015 was $61,282 which consisted of $37,217 due to Richard Pomije and $24,065 due to Jeffrey Mills. Deferred Officer Compensation The Company owed deferred officer compensation to Richard Pomije, the former CEO, CFO and Chairman of the Company as of February 29, 2016 and February 28, 2015 of $0 and $352,292, respectively. On May 18, 2015, Founder Richard Pomije resigned from the Company. At that time, the Board of Directors was aware of no continuing employment agreement. The Company released Mr. Pomije on September 11, 2015 concurrent with closing the Burnsville, MN office. Mr. Pomije is asserting a continuing obligation on the part of the Company in the form of a monthly salary for a 1 year term. The Company has accrued a liability of $95,798 as of February 29, 2016. See Note 5 for additional information. Accrued Salary Conversion On February 10, 2016, Robert Monster, CEO converted $129,231 of his accrued salary into 1,292,310 common shares and 1 year stock options with an exercise price of $0.15. The shares and warrants were valued on the conversion date in the amounts of $109,846 and $19,385, respectively. As the value of the shares and warrants equaled the conversion amount of accrued salary, no gain or loss was recorded as a result of this transaction. Employment Agreement Share Issuance On January 1, 2016, the Company issued 3,312,811 common shares to Robert Monster, CEO, in accordance with his employment agreement dated May 18, 2015. The shares were valued based on the employment agreement date. As 2,597,761 shares were earned due to the one year term of the employment agreement which has not yet completed, the stock based compensation of $779,325 was recorded during the year ended February 29, 2016. The remaining shares which were not yet vested were recorded as a subscription receivable to be recorded in the 2017 fiscal year upon the completion of the employment agreement term. Prepaid Domain Names During the years ended February 29, 2016 and February 28, 2015, the Company incurred $127,005 and $190,755, respectively, of annual domain name renewal fees. The amounts paid for the annual domain name renewal fees of $127,005 and $190,755, are paid directly to Epik, LLC, a company which is controlled by Robert Monster, the Company’s Chief Executive Officer. Epik, LLC, then uses those funds to directly pay Verisign and ICANN companies for the annual domain renewal costs of $7.85 and $0.25, respectively, per domain name. Notes Payable – Related Party On April 22, 2014, the Company signed an unsecured promissory note with Richard Pomije, former CEO, CFO and Chairman for a working capital loan of $75,000, due in one year at an annual interest rate of 5%. On December 1, 2014, the Company signed an additional unsecured promissory note with Richard Pomije for a working capital loan of $10,000 due in one year at an annual interest rate of 4%. On August 14, 2014, the Company made a $10,000 principal payment on the $75,000 note payable leaving a remaining principal balance of $75,000 on the two notes payable as of February 28, 2015. On April 3, 2015, the Company signed an additional unsecured promissory note with Richard Pomije for a working capital loan of $15,000 due in one year at an annual interest rate of 4%. In May 2015, the Company paid off all three notes payable resulting in no notes payable owed as of May 31, 2015. Accrued interest of $0 and $2,945 related to the $75,000 note payable is included in accounts payable as of February 29, 2016 and February 28, 2015, respectively, and accrued interest of $0 and $99 related to the $0 and $15,000 notes payable is included in accounts payable – related parties as of February 29, 2016 and February 28, 2015, respectively. All accrued interest was paid as of February 29, 2016. Common Stock Subscriptions Receivable The Company has stock subscriptions receivable due from a stockholder, Richard Pomije, the previous CEO, as of February 29, 2016 and February 28, 2015 of $0 and $625,482, respectively. See Notes 8 and 11 for additional information.

Income Taxes

Income Taxes	12 Months Ended
	Feb. 29, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes The Company accounts for income taxes under standards issued by the FASB. Under those standards, deferred tax assets and liabilities are recognized for future tax benefits or consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such assets will not be realized through future operations. No provision for federal income taxes has been recorded due to the net operating loss carry forwards totaling approximately $9,591,131 as of February 29, 2016 that will be offset against future taxable income. The available net operating loss carry forwards will expire in various years through 2036. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the future tax loss carry forwards. The actual income tax provisions differ from the expected amounts calculated by applying the statutory income tax rate to the Company’s loss before income taxes. The components of these differences are as follows at February 29, 2016 and February 28, 2015: 2016 2015 Net tax loss carry-forwards $ 9,591,131 $ 8,752,466 Statutory rate 34 % 34 % Expected tax recovery 3,260,985 2,975,838 Change in valuation allowance (3,260,985 ) (2,975,838 ) Income tax provision $ - $ - Components of deferred tax asset: Non capital tax loss carry forwards $ 3,260,985 $ 2,975,838 Less: valuation allowance (3,260,985 ) (2,975,838 ) Net deferred tax asset $ - $ -

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Feb. 29, 2016
Commitments and contingencies
Commitments and Contingencies	Note 10. Commitments and Contingencies The Company is exposed to asserted and unasserted claims encountered in the normal course of business. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company's financial position or results of operations. On August 22, 2011, the Company entered into a nine-month agreement with Enable Consulting, LLC (“Enable”) to complete the design and development of the Company’s Sales Center Application. The Company committed up to $66,000 for the development and maintenance support of this software application through May 31, 2012. On June 27, 2012, the Company signed an amendment to its existing contract with Enable to establish payment terms for the remaining balance due Enable of $36,000 and prioritize the remaining unresolved maintenance items which Enable was to have completed by August 15, 2012. The Company paid $13,500 on June 29, 2012. As of February 29, 2016, the maintenance items remain unresolved and the Company has a balance due Enable of $22,500, which is included in accounts payable. On December 8, 2010, the Company entered into a five-year strategic partnership agreement with the National Interscholastic Athletic Administrators Association (“NIAAA”). The NIAAA and DigitalTown will work together to establish a national, standardized system for recording schedules, scores, rosters and statistics for interscholastic sports teams and individual students. Pursuant to the agreement, the Company has committed to pay the expenses related to this strategic partnership; however, any expenses in excess of $5,000 must be preapproved by the Company. The Company has committed to deposit $50,000 for such expenses for the first fiscal year of the contract which the Company has paid as of February 29, 2012. In addition, as of February 28, 2015, the Company has paid $20,000 of the $50,000 due for the second fiscal year of the contract and the balance due of $30,000 is included in accounts payable. In addition, the Company has committed to donate 25% of the annual net sponsorship revenue in the scheduling and stats areas of its websites, with a total annual donation cap of $3,000,000, to yet to be named program funds that promote youth activities and the NIAAA. Lastly, the Company has committed to a minimal revenue share of $100,000 per year with the future launch of its beta 3 software. As of February 29, 2016, the Company has not yet launched its beta 3 software nor has it generated any net sponsorship revenue.

Common Stock Subscriptions Rece

Common Stock Subscriptions Receivable	12 Months Ended
	Feb. 29, 2016
Equity [Abstract]
Common Stock Subscriptions Receivable	Note 11. Common Stock Subscriptions Receivable Prior to May 11, 2015, the Company had the 2007 and 2011 stock subscription agreements outstanding all of which were due from a related party: (See Notes 3 and 5 for further information). Summary As of February 29, 2016, the Company is owed $5,000 for stock issued and has accrued an additional $7,150 for stock which is payable during the 2017 fiscal year under the employment agreement with Robert Monster. The Company did not have any stock receivables remaining related to the 2007 and 2010 agreements. As of February 28, 2015, the Company had stock subscriptions receivable of $625,482 and for the year ended February 28, 2015, the Company received stock subscription payments of $15,913. The following tables summarize information about the 2007 and 2010 agreements for stock subscriptions receivable with Richard Pomije: Receivable balance at February 29, 2008 $ 5,030,795 Cash collected (523,832) Receivable balance at February 28, 2009 4,506,963 Cash collected (337,500) 2007 Subscription agreement pricing revised (1) (2,275,000) Receivable balance at February 28, 2010 1,894,463 New subscription agreement (2) 300,000 Cash collected (771,809) Receivable balance at February 28, 2011 1,422,654 Cash collected (123,000) Receivable balance at February 29, 2012 1,299,654 Cash collected (320,800) Receivable balance at February 28, 2013 978,854 Cash collected (337,459) Receivable balance at February 28, 2014 641,395 Cash collected (15,913) Receivable balance at February 28, 2015 625,482 Cash collected - Settlement with former CEO (see Note 11) (625,482) Receivable balance at February 29, 2016 $ - Summary of outstanding subscriptions: 2007 subscriptions $ - 2010 subscription - Total $ - (1) Amendment to the terms of the subscription agreements received by the Company on October 5, 2007 for 1,300,000 restricted common shares reducing the price paid per share from $2.50 to $0.75. (2) New subscription agreement received on June 22, 2010.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	12 Months Ended
	Feb. 29, 2016
Accounting Policies [Abstract]
Earnings (Loss) Per Share	Note 12. Earnings (Loss) Per Share The Company computes earnings per share using two different methods, basic and diluted, and presents per share data for all periods in which statements of operations are presented. Basic earnings per share are computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted earnings per share are computed by dividing net income (loss) by the weighted average number of shares of common stock and common stock equivalents outstanding. The following tables provide a reconciliation of the numerators and denominators used in calculating basic and diluted earnings (loss) per share for the years ended February 29, 2016 and February 28, 2015: Years ended February 29, 2016 February 28, 2015 Basic earnings (loss) per share calculation: Net loss to common shareholders $ (2,549,577) $ ( 678,035) Weighted average number of common shares outstanding 34,163,263 30,631,079 Basic net loss per share $ (0.07) $ (0.02) Diluted earnings (loss) per share calculation: Net loss to common shareholders $ (2,549,577) $ (678,035) Weighted average number of common shares outstanding 34,163,263 30,631,075 Stock options (1) - - Warrants (2) - - Diluted weighted average common shares outstanding 34,163,263 30,631,075 Diluted net loss per share $ (0.07) $ (0.02) (1) At February 29, 2016 and February 28, 2015, there were outstanding stock options equivalent to 2,592,310 and 3,450,000 common shares, respectively. The stock options are anti-dilutive at February 29, 2016 and February 28, 2015 and therefore, have been excluded from diluted earnings (loss) per share. (2) At February 29, 2016 and February 28, 2015, there were outstanding warrants equivalent to 4,510,000 and 1,075,000 common shares, respectively. The warrants are anti-dilutive at February 29, 2016 and February 28, 2015 and therefore, have been excluded from diluted earnings (loss) per share.

Subsequent Events

Subsequent Events	12 Months Ended
	Feb. 29, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 13. Subsequent Events On March 4, 2016, the Company completed an acquisition of the operating assets of Cloud.Market, a Washington corporation and appointed the Founder of Cloud.Market, Mr Chris Maxwell, to the newly created position of Chief Technology Officer. On May 25, 2016, the Company entered into a stock purchase agreement for 1,600,000 restricted common shares at $0.25 per share, for total cash proceeds of $400,000. There were no additional significant subsequent events through May 31, 2016, the date the financial statements were issued.

Nature of Business and Summar20

Nature of Business and Summary of Significat Account Policies (Policies)	12 Months Ended
	Feb. 29, 2016
Accounting Policies [Abstract]
Nature of Business	Nature of Business The Company was founded in 1982 under the laws of the State of Minnesota as Command Small Computer Learning Center, Inc., a computer training company and operated under several different names in the computer hardware and training sector. In 2005, the Company began acquiring domain names. On March 1, 2007, the Company changed its name to DigitalTown, Inc. and began developing a business plan to develop a platform to monetize their domain names. The Company’s headquarters are located at 10655 NE 4 th The Company’s consolidated financial statements have been prepared using U.S. GAAP applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has a working capital deficit, recurring losses, and negative cash flows from operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty. At February 29, 2016 the Company had an accumulated deficit of $31,327,076. The Company anticipates that expected future proceeds from additional financing through the sale of its common stock or other equity-based securities, and additional sales and/or leases of existing domain names will be sufficient to meet its working capital and capital expenditure needs through at least February 28, 2017. In the event that the Company is unable to obtain additional capital in the future, the Company would be forced to further reduce operating expenses and/or cease operations altogether.
Principles of Consolidation	Principles of Consolidation The Company files consolidated financial statements that include its wholly-owned subsidiaries Tiger Media and The School Network, Inc. All material intercompany accounts and transactions have been eliminated in consolidation.
Reclassifications	Reclassifications Certain prior period amounts in the consolidated statement of cash flows have been reclassified to conform to the current period presentation. Proceeds from related party notes payable received in the prior period have been reclassified from the prior period classification.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S.”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates.
Accounts Receivable	Accounts Receivable Accounts receivable arose from the sale of and commission earned from display advertising. The Company evaluates collectability of accounts receivable based on a combination of factors including the age of the receivable or a specific customer’s inability to meet its financial conditions. In these circumstances, the Company records an allowance to reduce the receivable to an amount it deems collectible. The Company has determined that an allowance for doubtful accounts is not necessary as of February 29, 2016 and February 28, 2015.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when the following four criteria have been met: Persuasive evidence that an agreement exists Delivery has occurred The price is fixed and determinable Collectability is reasonably assured The Company recognizes revenue from the sale of display advertising appearing on specific pages of individual spirit sites within DigitalTown’s network. Display advertising is sold by the Company directly to local merchants and placed by the Company on specific pages of individual spirit sites targeted by the local merchant. The terms of these sales are for a fixed monthly amount for a period ranging from three months to one year. The Company has also entered into certain third party agreements which allow display advertising to be placed on individual spirit sites within DigitalTown’s network. Per these agreements, the Company receives commissions based on a percentage of the per click or per-impression revenue generated by these ads. The Company recognizes these commissions received as revenue.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) 820-10-5, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under accounting principles generally accepted in the U.S. (“U.S. GAAP”), certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value. As of February 29, 2016 and February 28, 2015, the Company does not have any financial instruments that must be measured under the new fair value standard. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3 - Unobservable inputs that reflect the Company’s assumptions about the assumptions that market participants would use in pricing the asset or liability. There were no transfers of financial assets or liabilities between Level 1 and Level 2 inputs for the years ended February 29, 2016 and February 28, 2015.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with original maturity of three months or less when purchased to be cash equivalents. As of February 29, 2016 and February 28, 2015, the Company had no cash equivalents.
Cash Deposits in Excess of Federally Insured Limits	Cash Deposits in Excess of Federally Insured Limits The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts are insured by the Federal Deposit Insurance Company and currently have insurance coverage up to $250,000. At February 29, 2016 and February 28, 2015, the Company had no uninsured cash balances.
Prepaid Domain Names	Prepaid Domain Names The annual domain name renewal fees are currently being amortized over one year and the purchase of any new domain names are the only amounts being capitalized. See Note 4 for further information.
Property and Equipment	Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over their estimated useful lives, ranging from three to five years. Leasehold improvements are amortized over the shorter of the useful life or the term of the related lease. The Company recorded $3,588 and $4,119 of depreciation expense for the years ended February 29, 2016 and February 28, 2015, respectively. Repairs and maintenance costs are expensed as incurred; major renewals and improvements are capitalized. As items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operating income. See Note 3 for further information.
Income Taxes	Income Taxes Deferred tax assets (net of any valuation allowance) and liabilities resulting from temporary differences, net operating loss carryforwards and tax credit carryforwards are recorded using an asset-and-liability method. Deferred taxes relating to temporary differences and loss carryforwards are measured using the tax rate expected to be in effect when they are reversed or are realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be ultimately realized. The Company has recorded a full valuation allowance against the net deferred tax asset due to the uncertainty of realizing the related future benefits. The Company accounts for income taxes pursuant to FASB guidance. This guidance prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company’s adoption on March 1, 2009 of the provisions specifically related to uncertain tax positions resulted in no cumulative effect adjustment. The Company believes its income tax filing positions and deductions will be sustained upon examination and, accordingly, no reserves or related accruals for interest and penalties have been recorded at February 29, 2016 or February 28, 2015. In accordance with the guidance, the Company has adopted a policy under which, if required to be recognized in the future, interest related to the underpayment of income taxes will be classified as a component of interest expense and any related penalties will be classified in operating expenses in the statements of operations. The Company has three open years of tax returns subject to examination.
Stock-Based Compensation, Including Options and Warrants	Stock-Based Compensation, Including Options and Warrants The Company recognizes the cost of stock-based compensation plans and awards in operations on a straight-line basis over the respective vesting period of the awards. The Company measures and recognizes compensation expense for all stock-based payment awards made to employees, directors, consultants and advisors. The compensation expense for the Company's stock-based payments is based on estimated fair values at the time of the grant. The Company estimates the fair value of stock-based payment awards on the date of grant using the Black-Scholes option pricing model. This option pricing model involves a number of assumptions, including the expected lives of stock options, the volatility of the public market price for the Company's common stock and interest rates. Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that are ultimately expected to vest.
Advertising	Advertising Advertising costs are charged to operations when incurred. The Company did not incur any advertising expense during the years ended February 29, 2016 or February 28, 2015.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-11, Simplifying the Measurement of Inventory, which requires that inventory be measured within the scope of the Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this Update are to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. This ASU conforms with the Company's current protocol for evaluating inventory and the Company will prospectively implement adoption of this ASU. The Company does not expect the adoption of the ASU to have a significant impact on our consolidated financial statements. On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. The ASU is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early application is permitted. The ASU requires retrospective application to all prior periods presented in the financial statements. The Company has elected not to early adopt ASU 2015-03. In January 2015, the FASB issued ASU 2015-01, Income Statement –Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements. Management does not anticipate that the adoption of these standards will have a material impact on the financial statements. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Feb. 29, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	February 29, February 28, 2016 2015 Office equipment and furniture $ 512,156 $ 512,156 Less accumulated depreciation (509,927) (506,339) Property and equipment, net $ 2,229 $ 5,817

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	12 Months Ended
	Feb. 29, 2016
Accounting Policies [Abstract]
Reconciliation of basic and diluted earnings per share	Years ended February 29, 2016 February 28, 2015 Basic earnings (loss) per share calculation: Net loss to common shareholders $ (2,549,577) $ ( 678,035) Weighted average number of common shares outstanding 34,163,263 30,631,079 Basic net loss per share $ (0.07) $ (0.02) Diluted earnings (loss) per share calculation: Net loss to common shareholders $ (2,549,577) $ (678,035) Weighted average number of common shares outstanding 34,163,263 30,631,075 Stock options (1) - - Warrants (2) - - Diluted weighted average common shares outstanding 34,163,263 30,631,075 Diluted net loss per share $ (0.07) $ (0.02) (1) At February 29, 2016 and February 28, 2015, there were outstanding stock options equivalent to 2,592,310 and 3,450,000 common shares, respectively. The stock options are anti-dilutive at February 29, 2016 and February 28, 2015 and therefore, have been excluded from diluted earnings (loss) per share. (2) At February 29, 2016 and February 28, 2015, there were outstanding warrants equivalent to 4,510,000 and 1,075,000 common shares, respectively. The warrants are anti-dilutive at February 29, 2016 and February 28, 2015 and therefore, have been excluded from diluted earnings (loss) per share.

Property and Equipment - Proper

Property and Equipment - Property and Equipment (Details) - USD ($)	Feb. 29, 2016	Feb. 28, 2015
Property, Plant and Equipment [Abstract]
Office equipment and furniture	$ 512,156	$ 512,156
Less accumulated depreciation	(509,927)	(506,339)
Property and equipment, net	$ 2,229	$ 5,817

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Property, Plant and Equipment [Abstract]
Depreciation Expense	$ 4,119	$ 3,588

Uncategorized Items - dgtw-2016

Label	Element	Value
Settlement of deferred salary to stock receivable - related party	us-gaap_DeferredCompensationArrangementWithIndividualFairValueOfSharesIssued	$ 0
Payments received on subscription agreements	us-gaap_ProceedsFromIssuanceOrSaleOfEquity	0
Common stock issued for cash	us-gaap_StockIssuedDuringPeriodValueIssuedForCash	0
Stock-based compensation	us-gaap_StockGrantedDuringPeriodValueSharebasedCompensation	0
Common stock and warrants issued for coversion of accrued salary- related party	us-gaap_StockIssuedDuringPeriodValueEmployeeBenefitPlan	0
Common stock issued for conversion of accounts payable	us-gaap_StockIssuedDuringPeriodValueOther	0
Common stock issued into escrow	us-gaap_StockIssuedDuringPeriodValueAcquisitions	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	(284,363)
Net Loss	us-gaap_NetIncomeLossAvailableToCommonStockholdersDiluted	$ 0
Common stock issued into escrow, in shares	us-gaap_StockIssuedDuringPeriodSharesAcquisitions	0
Inputed interest on accounts payable - related party	us-gaap_GuarantyFeeIncome	$ 0
Common stock issued for cash, in shares	us-gaap_StockIssuedDuringPeriodSharesIssuedForCash	0
Other Comprehensive Income / Loss
Settlement of deferred salary to stock receivable - related party	us-gaap_DeferredCompensationArrangementWithIndividualFairValueOfSharesIssued	$ 0
Payments received on subscription agreements	us-gaap_ProceedsFromIssuanceOrSaleOfEquity	0
Common stock issued for cash	us-gaap_StockIssuedDuringPeriodValueIssuedForCash	0
Stock-based compensation	us-gaap_StockGrantedDuringPeriodValueSharebasedCompensation	0
Common stock and warrants issued for coversion of accrued salary- related party	us-gaap_StockIssuedDuringPeriodValueEmployeeBenefitPlan	0
Common stock issued for conversion of accounts payable	us-gaap_StockIssuedDuringPeriodValueOther	0
Common stock issued into escrow	us-gaap_StockIssuedDuringPeriodValueAcquisitions	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	(641,395)
Net Loss	us-gaap_NetIncomeLossAvailableToCommonStockholdersDiluted	0
Inputed interest on accounts payable - related party	us-gaap_GuarantyFeeIncome	$ 0
Common stock issued for cash, in shares	us-gaap_StockIssuedDuringPeriodSharesIssuedForCash	0
Additional Paid-In Capital
Settlement of deferred salary to stock receivable - related party	us-gaap_DeferredCompensationArrangementWithIndividualFairValueOfSharesIssued	$ 0
Payments received on subscription agreements	us-gaap_ProceedsFromIssuanceOrSaleOfEquity	0
Common stock issued for cash	us-gaap_StockIssuedDuringPeriodValueIssuedForCash	0
Stock-based compensation	us-gaap_StockGrantedDuringPeriodValueSharebasedCompensation	0
Common stock and warrants issued for coversion of accrued salary- related party	us-gaap_StockIssuedDuringPeriodValueEmployeeBenefitPlan	0
Common stock issued for conversion of accounts payable	us-gaap_StockIssuedDuringPeriodValueOther	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	28,248,012
Net Loss	us-gaap_NetIncomeLossAvailableToCommonStockholdersDiluted	0
Inputed interest on accounts payable - related party	us-gaap_GuarantyFeeIncome	$ 0
Common Stock
Common stock issued for conversion of accounts payable, in shares	us-gaap_StockIssuedDuringPeriodSharesOther	0
Settlement of deferred salary to stock receivable - related party	us-gaap_DeferredCompensationArrangementWithIndividualFairValueOfSharesIssued	$ 0
Payments received on subscription agreements	us-gaap_ProceedsFromIssuanceOrSaleOfEquity	0
Common stock issued for cash	us-gaap_StockIssuedDuringPeriodValueIssuedForCash	0
Stock-based compensation	us-gaap_StockGrantedDuringPeriodValueSharebasedCompensation	$ 0
Common stock and warrats issued for conversion of accrued salary - related party, in shares	us-gaap_StockIssuedDuringPeriodSharesEmployeeBenefitPlan	0
Common stock and warrants issued for coversion of accrued salary- related party	us-gaap_StockIssuedDuringPeriodValueEmployeeBenefitPlan	$ 0
Common stock issued for conversion of accounts payable	us-gaap_StockIssuedDuringPeriodValueOther	0
Common stock issued into escrow	us-gaap_StockIssuedDuringPeriodValueAcquisitions	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	304,282
Net Loss	us-gaap_NetIncomeLossAvailableToCommonStockholdersDiluted	$ 0
Common stock issued into escrow, in shares	us-gaap_StockIssuedDuringPeriodSharesAcquisitions	0
Inputed interest on accounts payable - related party	us-gaap_GuarantyFeeIncome	$ 0
Common Stock, Shares, Outstanding	us-gaap_CommonStockSharesOutstanding	30,428,622
Common stock issued for cash, in shares	us-gaap_StockIssuedDuringPeriodSharesIssuedForCash	0
Retained Earnings / Accumulated Deficit
Settlement of deferred salary to stock receivable - related party	us-gaap_DeferredCompensationArrangementWithIndividualFairValueOfSharesIssued	$ 0
Payments received on subscription agreements	us-gaap_ProceedsFromIssuanceOrSaleOfEquity	0
Common stock issued for cash	us-gaap_StockIssuedDuringPeriodValueIssuedForCash	0
Stock-based compensation	us-gaap_StockGrantedDuringPeriodValueSharebasedCompensation	0
Common stock and warrants issued for coversion of accrued salary- related party	us-gaap_StockIssuedDuringPeriodValueEmployeeBenefitPlan	0
Common stock issued for conversion of accounts payable	us-gaap_StockIssuedDuringPeriodValueOther	0
Common stock issued into escrow	us-gaap_StockIssuedDuringPeriodValueAcquisitions	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	(28,195,262)
Net Loss	us-gaap_NetIncomeLossAvailableToCommonStockholdersDiluted	$ 0
Common stock issued into escrow, in shares	us-gaap_StockIssuedDuringPeriodSharesAcquisitions	0
Inputed interest on accounts payable - related party	us-gaap_GuarantyFeeIncome	$ 0
Common stock issued for cash, in shares	us-gaap_StockIssuedDuringPeriodSharesIssuedForCash	0
Treasury Stock
Settlement of deferred salary to stock receivable - related party	us-gaap_DeferredCompensationArrangementWithIndividualFairValueOfSharesIssued	$ 0
Payments received on subscription agreements	us-gaap_ProceedsFromIssuanceOrSaleOfEquity	0
Common stock issued for cash	us-gaap_StockIssuedDuringPeriodValueIssuedForCash	0
Stock-based compensation	us-gaap_StockGrantedDuringPeriodValueSharebasedCompensation	0
Common stock issued for conversion of accounts payable	us-gaap_StockIssuedDuringPeriodValueOther	0
Common stock issued into escrow	us-gaap_StockIssuedDuringPeriodValueAcquisitions	$ 0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
Net Loss	us-gaap_NetIncomeLossAvailableToCommonStockholdersDiluted	$ 0
Inputed interest on accounts payable - related party	us-gaap_GuarantyFeeIncome	$ 0
Common stock issued for cash, in shares	us-gaap_StockIssuedDuringPeriodSharesIssuedForCash	0