Hipcricket (HIPP) 10-Q 11 Jul 14 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	3 Months Ended
	31-May-14	1-May-14	Aug. 31, 2013
Document And Entity Information	'	'	'
Entity Registrant Name	'Hipcricket, Inc.	'	'
Entity Central Index Key	'0001137204	'	'
Document Type	'10-Q	'	'
Document Period End Date	31-May-14	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--02-28	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Public Float	'	'	$49,600,000
Entity Common Stock, Shares Outstanding	'	154,786,916	'
Document Fiscal Year Focus	'2015	'	'
Document Fiscal Period Focus	'Q1	'	'

BALANCE_SHEETS

BALANCE SHEETS (USD $)	31-May-14	Feb. 28, 2014
ASSETS	'	'
Cash and cash equivalents	$1,598,379	$3,002,442
Restricted cash	214,805	214,751
Accounts receivable, net	6,853,076	6,808,401
Prepaid expenses and other current assets	438,293	415,507
Total current assets	9,104,553	10,441,101
Property and equipment, net	357,541	322,628
Goodwill	35,060,183	35,060,183
Intangible assets, net	19,954,179	21,203,081
Deposits	159,255	162,555
TOTAL ASSETS	64,635,711	67,189,548
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Accounts payable	6,551,658	4,411,606
Accrued liabilities	3,166,197	2,628,635
Deferred revenue	641,557	807,598
Line of credit	1,845,134	2,210,045
Total current liabilities	12,204,546	10,057,884
Deferred income tax liability, net	3,376,383	3,376,383
Accrued liabilities	148,427	55,059
TOTAL LIABILITIES	15,729,356	13,489,326
STOCKHOLDERS' EQUITY:	'	'
Common stock, $.0001 par value; 250,000,000 shares authorized; 154,786,916 and 154,661,916 shares issued and outstanding, respectively.	15,479	15,466
Additional paid-in capital	187,959,939	187,333,089
Accumulated deficit	-139,069,063	-133,648,333
Total stockholders' equity	48,906,355	53,700,222
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$64,635,711	$67,189,548

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	31-May-14	Feb. 28, 2014
STOCKHOLDERS' EQUITY:	'	'
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	154,786,916	154,661,916
Common stock, shares outstanding	154,786,916	154,661,916

STATEMENTS_OF_OPERATIONS

STATEMENTS OF OPERATIONS (USD $)	3 Months Ended	12 Months Ended
	31-May-14	Feb. 28, 2014
Borrowing base	'	'
REVENUE	$7,330,800	$5,865,564
COST OF REVENUES	3,637,744	2,602,503
OPERATING EXPENSES:	'	'
Selling and marketing	3,081,584	3,337,133
Technology and development	1,769,301	1,988,229
General and administrative	2,946,079	2,676,912
Depreciation and amortization	1,288,317	1,275,190
Total operating expenses	9,085,281	9,277,464
LOSS FROM OPERATIONS	-5,392,225	-6,014,403
OTHER INCOME (EXPENSE):	'	'
Interest income (expense), net	-28,505	-801
NET LOSS BEFORE INCOME TAXES	-5,420,730	-6,015,204
Income tax benefit	'	'
NET LOSS	($5,420,730)	($6,015,204)
NET LOSS PER SHARE - basic and diluted	($0.04)	($0.05)
WEIGHTED AVERAGE SHARES OUTSTANDING	'	'
Basic and diluted	154,751,590	129,595,547

STATEMENT_OF_CHANGES_IN_STOCKH

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, Amount at Feb. 28, 2014	$15,479	$187,959,939	($139,069,063)	$53,700,222
Beginning Balance, Shares at Feb. 28, 2014	154,786,916	'	'	'
Common stock issued for:	'	'	'	'
Settlement, Shares	125,000	'	'	'
Settlement, Amount	13	34,987	'	35,000
Employee share-based compensation	'	433,723	'	'
Warrants issued for services	'	17,493	'	17,493
Restricted stock units issued for service	'	140,647	'	140,647
Net Loss	'	'	-5,420,730	-5,420,730
Ending Balance, Amount at May. 31, 2014	$15,479	$187,959,939	($139,069,063)	$48,906,355
Ending Balance, Shares at May. 31, 2014	154,786,916	'	'	'

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	31-May-14	31-May-13
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($5,420,730)	($6,015,204)
Depreciation and amortization	1,288,317	1,275,190
Bad debt expense and other	19,501	895
Common stock issued for services	'	46,251
Common stock issued for settlement	35,000	'
Share-based payments	591,863	1,051,901
Changes in operating assets and liabilities:	'	'
Accounts receivable	64,176	-546,400
Prepaid expenses and other current assets	22,786	-120,675
Deposits	3,300	-12,795
Accounts payable and accrued liabilities	2,677,614	-979,342
Deferred revenue	-166,041	259,934
Long-term liabilities and other	93,314	-16,555
NET CASH USED IN OPERATING ACTIVITIES	-964,824	-3,722,650
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Cash paid for purchase of patents	'	-45,520
Cash paid for patent defense costs	-3,429	-182,669
Additions to property and equipment	-70,899	'
NET CASH USED IN INVESTING ACTIVITIES	-74,328	-228,189
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds received from/ (payments on) line of credit	-364,911	1,000,000
Proceeds received from the exercise of stock options and warrants, net	'	2,500
NET CASH PROVIDED BY FINANCING ACTIVITIES	-364,911	1,002,500
NET CHANGE IN CASH AND CASH EQUIVALENTS	-1,404,063	-2,948,339
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	3,002,442	4,352,691
CASH AND CASH EQUIVALENTS, END OF PERIOD	1,598,379	1,404,352
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'
Interest paid	$28,559	$889

ORGANIZATION_AND_BASIS_OF_PRES

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	31-May-14
Notes to Financial Statements	'
ORGANIZATION AND BASIS OF PRESENTATION	'
	The accompanying unaudited interim financial statements of Hipcricket, Inc. (“Hipcricket,” the “Company,” “we,” or “us”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in our Annual Report on Form 10-K filed with the SEC on May 14, 2014.
	In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the fiscal year ended February 28, 2014 included in our Annual Report on Form 10-K have been omitted.
	Description of Business
	We provide an end-to-end, data driven mobile engagement and analytics solution that empowers brands, agencies and media companies to drive customer engagement, loyalty and sales.  Our proprietary, scalable and user friendly AD LIFE® software-as-a service (“SaaS”) platform (“AD LIFE Platform” or the “Platform”) creates measurable, real-time, one-to-one relationships between companies and their current or prospective customers, using text messages, multimedia messages (“MMS”), mobile web sites, mobile applications, mobile coupons, quick response (“QR”) codes and via mobile advertising.
	Our AD LIFE Platform is a mobile engagement solution that simplifies the entire mobile ecosphere into a single, scalable, self-service access point.  The Platform enables our customers to quickly plan, create, test, deploy, monitor, measure and optimize interactive mobile marketing and advertising programs throughout the campaign lifecycle across nearly every major mobile channel.  We have delivered over 400,000 campaigns since 2004, across hundreds of customers including Fortune 100 and other established brand clients.  Additionally, we have earned a greater than 90% renewal rate with our mobile marketing customers.
	Using our patented device-detection and proprietary mobile content adaptation software, the AD LIFE Platform addresses the mobile marketing industry problem of disparate operating systems, device types, and on-screen mobile content rendering.  We also provide business-to-consumer utilities, including national mobile couponing solutions, strategic mobile healthcare tools, custom mobile application development, and consumer data tracking and analytics.  Our products serve marketers, brands, and agencies in many vertical markets, including automotive, retail, consumer products, food and beverage, media and broadcast, pharmaceutical and restaurant brands.
	The Platform features a rich analytics engine that sources real-time campaign data, in addition to third party and client information, to personalize mobile advertising and marketing campaigns, thereby increasing the effectiveness of these messages and the likelihood of re-engagement.  The Platform automatically tracks mobile phone numbers through interactions across nearly every major mobile channel, capturing and applying additional data to build a more complete consumer profile.  Our current database consists of detailed profiles on millions of mobile phone numbers, which, by employing third party data, can be turned into virtually unlimited segments. These data help advertisers understand the most effective use of advertising resources and help optimize their marketing spend, especially for projects that feature repeat customer relationships.  Our applied analytics product, which was released in fiscal year 2014, offers technologies and solutions designed to help advertisers dynamically track, measure and analyze the performance of their advertising and marketing investments in real time to rapidly tailor their mobile marketing activities.
	The mobile marketing and advertising landscape, while in its early stages, is highly competitive.  Many of the landscape’s significant players are focused on delivering point solutions targeting a specific segment of the mobile marketing and/or advertising landscape.  We believe that we differ from the competition by offering complete, end-to-end mobile advertising, mobile marketing, and analytics solutions delivered through our AD LIFE Platform.
	Our advanced, comprehensive, and fully integrated Platform drives revenue primarily through license fees, content development fees, short message service (“SMS”) campaign fees, and fees associated with various add-on promotional applications in the Platform. Additional revenue is generated by platform administration and professional service fees related to the mobilization of client content and implementation of marketing campaigns through the Platform.
	Our portfolio of patents covers technical processes and methods related to behavioral targeting — the automatic provision of customized content to individuals based on information such as past web activity, personal preferences, geography, or demographic data. As of May 31, 2014, we owned 21 U.S. patents.  We are pursuing on a selective basis, additional patents that generally relate to targeting, analytics, advanced mobile marketing, customized content delivery, and mobile and networked marketing technology.
	We are a corporation organized under the laws of the State of Delaware in March 2000.  We were formally known as Augme Technologies, Inc. and changed our name to Hipcricket, Inc. in August 2013. Our principal executive offices are located at 110 110th Avenue NE, Bellevue, WA 98004. Our telephone number is (855) 423-5433. Our corporate website is www.hipcricket.com.  Information contained in or accessible through our website is not part of this report.
	Hipcricket®, Inc., Augme® Technologies™, AD LIFE® (“AD LIFE”), AD SERVE®, A+®, Boombox® and the Company logos are trademarks of Hipcricket, Inc.
	Liquidity
	As of May 31, 2014 and February 28, 2014, we had accumulated deficits of $139.1 million and $133.6 million, respectively. We are subject to the risks and challenges associated with companies at a similar stage of development including dependence on key individuals, successful development and marketing of our products and services, integration of recent business combinations, competition from substitute products and services and larger companies with greater financial, technical management and marketing resources. Any of the following factors could have a significant negative effect on our future financial position, results of operations and cash flows: unanticipated fluctuations in quarterly operating results, adverse changes in our relationship with significant customers or failure to secure contracts with other customers, intense competition, failure to attract and retain key personnel, failure to protect intellectual property, decreases in the migration trends from traditional advertising methods to digital and mobile media and the inability to manage growth.
	We will likely require additional financing to execute our key business strategies and fund operations. Such funds may not be readily available or may not be on terms that are favorable to us. Certain financing terms could be dilutive to existing stockholders, may give new investors rights, preferences and privileges that are superior to those of existing stockholders, could result in significant interest or other costs, or may require us to license or relinquish certain intellectual property rights. If sources of capital are unavailable, or are available only on a limited basis or under unacceptable terms, then we could be required to substantially reduce or discontinue our investments in new customers and new products; reduce selling, marketing, general and administrative costs related to our continuing operations; or limit the scope of our continuing operations, which would raise substantial doubt about our ability to continue as a going concern.  Due to the nature of our operations and financial commitments we may not have the discretion to reduce operations in an orderly manner to a more sustainable level without impacting future operations. Our financial statements contained in this report have been prepared assuming that we will continue as a going concern. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty.
	On June 2, 2014, we implemented changes to our operating plan focused on fostering profitable and sustainable revenue growth and optimizing our expense structure. The changes are designed to conserve our resources and realize operating efficiencies by focusing our sales efforts on higher value customers using technology to reduce product delivery costs, concentrating our development effort on maintaining and enhancing our product offering, and consolidating certain non-core personnel positions. We intend to continue our efforts to minimize cash spend and identify additional costs savings opportunities while carefully investing our resources and protecting our strategic assets to strengthen our position in the mobile marketing and mobile advertising industry.
	In June 2014, we secured an accounts receivable-based credit facility from Fast Pay Partners LLC (“Fast Pay”) to help fund our working capital needs. The revolving loan credit facility has an initial one year term and allows us to borrow up to 70% of the gross value of our eligible accounts receivable up to a maximum of $5.0 million. Under the terms of the Financing and Security Agreement (the “Agreement”), Fast Pay may, at its sole discretion, purchase our eligible accounts receivables. Each account receivable purchased by Fast Pay will be subject to a factoring fee of (i) 1.25%, flat fee, of the gross value of the account for the initial 30-day period; (ii) 1.25%, prorated daily, of the gross value of the account outstanding, commencing on day 30 and ending on day 89, and (iii) 1.75%, prorated daily, of the gross value of the account outstanding, commencing on day 90 and continuing thereafter. The minimum monthly fee beginning on July 1, 2014 will be $12,500. Our obligations under the credit facility are secured by substantially all of our assets. On June 18, 2014 we used cash available from the credit facility to repay our line of credit with Silicon Valley Bank (“SVB”) and we cancelled our accounts receivable credit facility with SVB. See Note 7 of the Notes to the Financial Statements for additional information about the credit facilities.
	In January 2014, we retained the corporate advisory services of Canaccord Genuity to explore and evaluate strategic alternatives with a view to enhancing shareholder value. We intend to consider a full range of strategic alternatives, including possible acquisitions or dispositions of assets, joint ventures, strategic investments, sale of the company or other potential transactions.  We have not set a timetable for completion of the strategic review, and there can be no assurance the process will result in a transaction or pursuit of any strategic alternative.
	We currently do not meet the minimum $75 million public float requirement for use of Form S-3 registration for primary sales of our common stock. Until such time as we satisfy the $75 million public float and other requirements for use of Form S-3 registration, we will be required to use a registration statement on Form S-1 to register any public offering of our securities with the SEC or must issue such securities in a private placement or other transaction exempt from registration under federal securities law, which could increase the cost of raising capital.
	Principles of Consolidation
	Prior to October 2013, our financial statements were consolidated and included the accounts of Hipcricket, Inc., formerly Augme Technologies, Inc., and our wholly owned subsidiaries. In October 2013, we merged Hipcricket, Inc. and our subsidiaries into a single entity and our financial statements have been prepared on an unconsolidated basis since that date.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements. We regularly evaluate estimates and judgments based on historical experience and other relevant facts and circumstances. Actual results could differ from those estimates. Significant estimates relate to allowances for tax assets, the use of the Black-Scholes-Merton pricing model for valuing stock option and common stock warrant issuances, estimates of future cash flows used to estimate the value of long-lived assets and implied fair value of goodwill, revenues earned from percentage of completion contracts and the period in which revenues should be recorded.
	Summary of Significant Accounting Policies
	The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the SEC. The same accounting policies are followed for preparing the quarterly and annual financial information unless otherwise disclosed.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	31-May-14
Notes to Financial Statements	'
STOCKHOLDERS' EQUITY	'
	On April 1, 2014, our Board of Directors approved the 2014 Equity Incentive Plan.   A total of 12.0 million shares of our common stock are authorized for issuance under the plan.  The shares were registered on a Form S-8 Registration Statement filed with the SEC on May 16, 2014. During the quarter ended May 31, 2014, we issued from the plan a total of 4.8 million restricted shares, having a fair value of $0.23 per share, to three independent directors in connection with director agreements between the company and the directors as of March 24, 2014.

SHAREBASED_PAYMENTS

SHARE-BASED PAYMENTS	3 Months Ended
	31-May-14
Notes to Financial Statements	'
SHARE-BASED PAYMENTS	'
	Stock-Based Compensation
	Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award. We measure the fair value of restricted stock awards based on the number of shares granted and the market price of our common stock on the date of grant.  We use the Black-Scholes option pricing model to estimate the fair value of stock options and warrants. The determination of the fair value of stock-based awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the expected term of the awards, actual and projected stock option and warrant exercise behaviors, a risk-free interest rate and any expected dividends.
	The following table shows the amount of stock-based compensation expense included in the statements of operations:
		Three Months Ended
		May 31,
		2014			2013
	Selling and marketing	$	190,210		$	338,366
	Technology and development		92,212			371,563
	General and administrative		309,441			341,972
	Total stock-based compensation expense	$	591,863		$	1,051,901
	OPTIONS:
	We maintain stock incentive plans for our employees. The 2010 Incentive Stock Option Plan permits for the grant to employees, officers, directors and consultants of incentive stock options, non-qualified stock options, restricted shares, and other stock based awards to purchase up to an aggregate of 15.0 million shares of our common stock. We had approximately 11.5 million stock options and restricted shares outstanding under this plan as of May 31, 2014. The 2014 Equity Incentive Plan permits for grants to employees, officers, directors and consultants of non-qualified stock options, restricted shares, and other stock based awards to purchase up to an aggregate of 12.0 million shares of our common stock. We had approximately 9.6 million stock options and restricted shares outstanding under this plan as of May 31, 2014. We have also issued non-qualified stock options to consultants and vendors for services provided, as well as to directors and employees, including officers outside of these plans.
	The estimated fair values of our stock option awards were determined using the following weighted average assumptions:
		Three Months Ended
		May 31,
		2014			2013
	Expected dividends		0	%		0	%
	Expected term (in years)		3.5			3.5
	Weighted-average volatility		70	%		70	%
	Risk-free rate		1.01	%		0.51	%
	The summary of our stock option activity for the three months ended May 31, 2014 is presented below:
		Number of options			Weighted Average Exercise Price			Average Remaining Contractual Term (In Years)
	Options outstanding at February 28, 2014		14,052,978		$	1.02			2.9
	Granted		12,125,549			0.33
	Exercised		-			-
	Forfeited and expired		(624,990	)		0.54
	Options outstanding at May 31, 2014		25,553,537		$	0.7			5
	Options vested and expected to vest at May 31, 2014		19,197,425		$	0.53			4.8
	Options exercisable at May 31, 2014		8,890,709		$	1.4			1.6
	As of May 31, 2014, there was $3.3 million of unrecognized share-based payment expense related to options, which is expected to be recognized over a weighted average period of approximately 3.8 years.
	The aggregate intrinsic value of the exercisable options at May 31, 2014 was approximately $336. The aggregate intrinsic value was calculated based on the positive differences between the market value of our common stock on May 31, 2014 of $0.22 per share and the exercise prices of the exercisable options. The exercise prices of options outstanding at May 31, 2014 ranged from $0.18 to $3.90 per share.  The weighted average fair value of options granted was $0.11 per option share for the three months ended May 31, 2014.
	WARRANTS:
	The fair values of our warrants were estimated using the following weighted average assumptions:
		Three Months Ended
		May 31,
		2014			2013
	Expected dividends		n/a			0	%
	Expected term (in years)		n/a			3
	Weighted-average volatility		n/a			78	%
	Risk-free rate		n/a			1.17	%
	The summary of warrant activity for the three months ended May 31, 2014 is presented below:
		Number of Warrants			Weighted Average Exercise Price			Average Remaining Contractual Term (In Years)
	Warrants outstanding at February 28, 2014		27,186,156		$	1.06			3.4
	Granted		-			-
	Exercised		-			-
	Forfeited and expired		(373,343	)		2.15
	Warrants outstanding at May 31, 2014		26,812,813		$	1.05			3.17
	Warrants vested and expected to vest at May 31, 2014		26,812,813		$	1.05			3.17
	Warrants exercisable at May 31, 2014		26,216,982		$	1.05			3.17
	As of May 31, 2014, there was approximately $73,029 of unrecognized share-based payment expense related to warrants, which is expected to be recognized over a weighted average period of approximately 1.5 years.
	The exercisable warrants as of May 31, 2014 had no aggregate intrinsic value because the market value of our common stock on May 31, 2014 of $0.22 per share was lower than the exercise prices of the exercisable warrants. The exercise prices of warrants outstanding at May 31, 2014 ranged from $0.39 to $4.00.
	RESTRICTED STOCK:
	The summary of our restricted stock activity for the three months ended May 31, 2014 is presented below:
		Number of shares			Weighted Average Grant Date Fair Value Per Share
	Unvested at February 28, 2014		-		$	-
	Granted		4,800,000			0.23
	Vested		-			-
	Forfeited		-			-
	Unvested at May 31, 2014		4,800,000		$	0.23
	Expected to vest after May 31, 2014		4,800,000		$	0.23
	At May 31, 2014, there was approximately $963,400 of unrecognized compensation cost related to restricted stock awards, which is expected to be recognized over a weighted average period of approximately 1.8 years.

NET_LOSS_PER_SHARE

NET LOSS PER SHARE	3 Months Ended
	31-May-14
Notes to Financial Statements	'
NET LOSS PER SHARE	'
	Basic net loss per share is based on the weighted average number of common shares outstanding. Diluted net loss per share is based on the weighted average number of common shares and common share equivalents outstanding. Common share equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options and warrants except when the effect of their inclusion would be anti-dilutive. As of May 31, 2014 and 2013, there were potentially dilutive securities consisting of options exercisable to purchase 8.9 million and 12.9 million shares of common stock, respectively, and warrants exercisable to purchase 26.2 million and 18.4 million shares of our common stock, respectively. As the inclusion of these outstanding stock options and warrants would be anti-dilutive, they were excluded from the computation of loss per share.  Accordingly, basic net loss per share and diluted net loss per share are identical for each of the periods presented in the accompanying statements of operations.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	3 Months Ended
	31-May-14
Notes to Financial Statements	'
INTANGIBLE ASSETS	'
	Intangible assets relate to patent filing and patent protection litigation costs as well as customer relationships, trade names and technology obtained in past acquisitions. With the exception of the Hipcricket trade name carried at $8.7 million, the intangible assets have finite lives and, as such, are subject to amortization.
	The following table presents the gross carrying value of the components of intangible assets and accumulated amortization:
				As of May 31, 2014
		Weighted Average Amortization Period (In months)		Gross Carrying Amount, net of impairment write downs		Accumulated Amortization		Net Carrying Value
	Indefinite Lived Intangible:
	Trade name	Indefinite		$	8,700,000	$	-	$	8,700,000
	Definite Lived Intangible:
	Patent litigation		84		4,367,399		2,208,105		2,159,294
	Patents		120		717,846		142,836		575,010
	Acquired technology		60		7,270,000		4,283,250		2,986,750
	Customer relationships		60-72		12,850,000		7,316,875		5,533,125
	Software		36		2,095,705		2,095,705		-
	Non-compete agreements		36		212,000		212,000		-
	Trade names		24		44,000		44,000		-
	Total intangibles			$	36,256,950	$	16,302,771	$	19,954,179
				As of February 28, 2014
		Weighted Average Amortization Period (In months)		Gross Carrying Amount, net of impairment write downs		Accumulated Amortization		Transferred from Held for Sale		Impairment Loss		Net Carrying Value
	Indefinite Lived Intangible:
	Trade name	Indefinite		$	8,700,000	$	-	$	-	$	-	$	8,700,000
	Definite Lived Intangible:
	Patent litigation		84		4,451,946		1,971,568		-		87,975		2,392,403
	Patents		120		623,600		125,125		3,123,016		3,028,771		592,720
	Acquired technology		60		7,270,000		3,919,750		-		-		3,350,250
	Customer relationships		60-72		12,850,000		6,682,292		-		-		6,167,708
	Software		36		2,095,705		2,095,705		-		-		-
	Non-compete agreements		36		212,000		212,000		-		-		-
	Trade names		24		44,000		44,000		-		-		-
	Total intangibles			$	36,247,251	$	15,050,440	$	3,123,016	$	3,116,746	$	21,203,081
	Amortization of intangible assets was $1.3 million and $1.2 million for the three months ended May 31, 2014 and 2013, respectively.
	Amortization in future fiscal periods is expected to be as follows:
	Remainder of Fiscal Year 2015	$	3,673,469
	2016		4,637,948
	2017		2,562,571
	2018		70,843
	2019		70,843
	Thereafter		238,505
	Total	$	11,254,179

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	31-May-14
Notes to Financial Statements	'
CONTINGENCIES	'
	Payments Pursuant to Employment Agreement
	On May 30, 2014, our former President and Chief Executive Officer, Ivan Braiker, ceased employment. We estimated the amount due to Mr. Braiker under his existing employment agreement in effect at the time of his departure and recorded an accrual of approximately $487,000 in the quarter ended May 31, 2014. We expect to pay this amount according to our normal payroll periods through August 2015.
	Litigation
	In the normal course of business, we may become involved in various legal proceedings.  Except as stated below, we know of no pending or threatened legal proceeding to which we are or will be a party that, if successful, might result in a material adverse change in our business, properties or financial condition.
	Litigation Update
	Augme Technologies, Inc. v. Yahoo! Inc., Civil Action No. 3:09-cv-05386-JCS, a patent infringement lawsuit pending in the U.S. District Court for the Northern District of California since November 16, 2009. On December 21, 2010, Yahoo! filed a first amended answer to Augme’s complaint, in which Yahoo! asserted its own counterclaim against Augme alleging infringement of, inter alia, U.S. Patent Nos. 7,640,320 (“‘320 patent”) and 7,512,622 (“‘622 patent”). On August 21, 2012, the parties stipulated to dismissal of Yahoo’s claim for infringement of the ‘622 patent with prejudice.
	This case is a patent infringement lawsuit brought by Augme against Yahoo, Inc. Yahoo has also counterclaimed for patent infringement. In this case, Augme is seeking monetary relief for patent infringement damage and injunctive relief against future infringement. A summary of the case is set forth below.
	With respect to Augme’s claims of patent infringement, on June 11, 2012, Yahoo! renewed its Motion for Summary Judgment of non-infringement. The Court heard argument on the summary judgment issues on July 20, 2012. On August 8, 2012, the Court granted Yahoo!’s Motion for Summary Judgment of non-infringement, dismissing Augme’s patent claims against Yahoo! and declining to address Augme’s previously filed Motion for Partial Summary Judgment of validity. Based on the Court’s summary judgment order, Augme moved for Entry of Judgment under Rule 54(b). Yahoo! opposed Augme’s motion in light of the pending counterclaim for infringement of the ‘320 patent. Nonetheless, Augme’s motion was granted by the Court on October 29, 2012, and final judgment was entered shortly thereafter on November 15, 2012. On December 12, 2012, Augme filed a Notice of Appeal as to the judgment as to the Augme patent. The appeal was docketed by the Federal Circuit on December 19, 2012.
	With respect to Yahoo!’s counterclaim regarding infringement of the ‘320 patent, the parties agreed to and filed a stipulation of infringement of this patent on December 13, 2012, under the Court’s claim construction ruling of January 3, 2012.  The parties also stipulated to entry of judgment under Rule 54(b) and 28 U.S.C. § 1292(c)(2), which permits the entry of judgment in patent cases “which … [are] final except for an accounting.” The parties also requested that the Court stay the remainder of the case pending Augme’s appeal to the Federal Circuit Court of Appeals. The Court signed such an order on December 13, 2012, and entered it the next day.
	On January 11, 2013, Augme filed with the district court a Notice of Appeal to the Federal Circuit Court of Appeals as to Yahoo!’s ‘320 patent judgment. The second appeal was docketed by the Federal Circuit on February 6, 2013 and consolidated with the prior appeal (now Lead Appeal No. 13-1121). Augme tendered its principal brief to the Federal Circuit on May 7, 2013. Augme filed its Reply Brief on September 6, 2013, and the parties subsequently filed a Joint Appendix on September 13, 2013. On June 20, 2014 the Federal Circuit Court of Appeals issued its opinion affirming the district court’s decision in all respects, denying Augme’s appeal. The Company has 30 days to file a petition for rehearing before the case is remanded to district court.
	Augme Technologies, Inc. v. AOL, Inc. and Time Warner, Inc., Civil Action No. 1:12-cv-05439-CM (transferred from Civil Action No. 1:09-cv-04299-RWS (S.D.N.Y.)), a patent infringement and trademark infringement lawsuit pending in the U.S. District Court for the Southern District of New York (transferred from the U.S. District Court for the Central District of California) since September 10, 2008.
	The case is a patent infringement case originally filed by Augme against AOL, Inc. and Time Warner, Inc. in the Central District of California and subsequently transferred to the Southern District of New York.  It also originally included a trademark infringement action against AOL, Inc. for use of the BOOMBOX trademark which has subsequently been dismissed.  In its patent infringement claim, Augme sought both monetary relief for patent infringement damages and injunctive relief against further infringement by AOL and Time Warner.  The AOL defendants and Augme agreed to settle litigation between themselves and, on February 26, 2013, the case was dismissed between those parties. The stayed case remains pending against Time Warner, Inc.  Below is a summary of the current status of this case.
	On June 13, 2012, the patent infringement claims were transferred from Judge Robert Sweet to Judge Colleen McMahon.  The residual claims for trademark infringement, unfair competition and false designation of origin, which remained with Judge Sweet, were dismissed by agreement of the parties on November 19, 2012.
	With regard to the patent infringement claims, Time Warner filed a Motion for Judgment on the Pleadings on September 27, 2012, and, shortly thereafter, a Motion for Rule 11 Sanctions on October 23, 2012.  On October 26, 2012, the Court sua sponte stayed the case regarding any claims related to U.S. Patent No. 7,269,636 (“‘636 patent”), pending the outcome of the ongoing reexamination of that patent by the U.S. Patent and Trademark Office.  Because the remaining patent-in-suit, U.S. Patent Nos. 6,594,691 (“‘691 patent”), is closely related to the ‘636 patent, Augme moved to stay the case in its entirety on November 5, 2012.  On December 20, 2012, Judge McMahon denied Augme’s motion to stay as to the ‘691 patent and did not disturb the preexisting stay as to the ‘636 patent.
	Because of Judge McMahon’s requirement that all discovery in the case be completed by the end of February 2013 and given that discovery as to the ‘691 patent would be totally duplicative of discovery which would have to be conducted later as to the ‘636 patent, on January 7, 2013, Augme filed a covenant not to sue defendants on the ‘691 patent and a motion to dismiss the ‘691 patent from the case.  Based on the pendency of the motion to dismiss, on January 11, 2013, Magistrate Judge Gabriel Gorenstein adjourned all further discovery as to the ‘691 patent.
	On January 16, 2013, Judge McMahon entered an order dismissing the ‘691 patent from the case and maintaining the stay as to the ‘636 patent. She placed the case on suspension and denied Time Warner’s pending motions without prejudice.
	The AOL defendants and Augme agreed to settle the litigation as between Augme, on the one hand, and AOL, Inc. and AOL Advertising, Inc., on the other. Accordingly, on February 26, 2013, Judge McMahon entered an Order of Dismissal as to the parties, AOL, Inc. and AOL Advertising, Inc. The stayed case remains pending against Time Warner, Inc.
	On July 16, 2013, the court denied Time Warner’s motion for sanctions against Augme without prejudice to renewal, pending the outcome of the USPTO reexamination.
	Brandofino Communications vs. Augme Technologies, Inc.  Civil Action No. 652639/2011. On September 27, 2011, Brandofino Communications, Inc. (“Brandofino”) filed suit against Augme and New Aug LLC in the Supreme Court of the State of New York, New York County.  The complaint alleges, inter alia, breach of contract and unjust enrichment claims arising from work Brandofino allegedly performed for Augme pursuant to a marketing agreement entered into by Brandofino and Augme. The complaint seeks damages in excess of $1.0 million.  Augme has served its Answer and set forth counterclaims for breach of contract, unfair competition, tortious interference with business relations, and violations of New York General Business Law Section 349 (relating to violations of Augme’s intellectual property rights).  The Company intends to vigorously defend against Brandofino’s claim and pursue its counterclaims.
	Shaub & Williams, L.L.P., vs. Augme Technologies, Inc. Civil Action No. 1:13-cv-01101-GBD. Augme's prior counsel, Shaub & Williams, LLP (“S&W”), filed a Complaint in the United States District Court for the Southern District of New York seeking recovery on a quantum meruit (value of services) basis attorney's fees in the amount of $2,249,686.25 for its prior representation of Augme in litigation.  Augme has denied the allegations in the Complaint and have alleged that it has paid all fees due to S&W.  The Company also asserted a breach of contract counterclaim, alleging that S&W overbilled Augme and should be refunded some of the attorney’s fees already paid to S&W.  The parties are currently conducting discovery, and the court recently issued new discovery deadlines—fact discovery shall be completed by May 30, 2014, and expert discovery by July 15, 2014.  The court has declined to set a trial date at this time.
	Leibsohn, et al. v. Hipcricket, Inc. (FKA Augme Technologies), et al., No. 13-2-40007-3 (King Cty. Sup. Ct.):  On November 25, 2013, stockholders of the former Hipcricket, Inc. who were stockholders when Augme purchased the assets of Hipcricket, Inc. in August 2011 filed a lawsuit in King County Superior Court alleging that Augme and its board of directors at the time made false statements which induced the plaintiff stockholders to approve the asset purchase transaction.  The lawsuit asserts claims under the Washington State Securities Act as well as common-law claims for intentional misrepresentation and negligent misrepresentation.  Plaintiffs seek to rescind the asset purchase transaction or obtain a “rescissionary measure of damages,” as well as compensatory damages, interest and attorneys’ fees.  On March 3, 2014, defendants filed a motion to dismiss the action in its entirety, and that motion  was to be fully briefed by April 23, 2014.  An oral argument on the motion to dismiss took place on May 9, 2014.  On June 17, 2014 the court issued a decision denying the motion to dismiss. Defendants intend to continue to vigorously defend the action.  The Company cannot at this time estimate any potential loss that may result from this litigation.

CREDIT_FACILITIES

CREDIT FACILITIES	3 Months Ended
	31-May-14
Credit Facilities	'
CREDIT FACILITIES	'
	Silicon Valley Bank
	In May 2013, we secured an asset-based revolving loan facility from SVB to help fund our working capital needs, which was amended and restated on November 25, 2013 (the “SVB Loan Agreement”). The revolving loan facility allowed us to borrow up to $5.0 million with availability subject to a borrowing base of 80% of eligible accounts receivable plus the least of (i) 80% of Eligible 120 Day Accounts as defined in the SVB Loan Agreement, (ii) $1,000,000 and (iii) 30% of the sum of all eligible accounts plus Eligible 120 Day Accounts, and the satisfaction of conditions specified in the agreement.
	The SVB Loan Agreement included customary covenants, including a requirement to maintain a minimum tangible net worth of at least negative $1.25 million. On January 31, 2014, we breached the minimum tangible net worth covenant and on March 31, 2014 entered into a forbearance and amendment to the SVB Loan Agreement. The forbearance agreement increased the interest rate under the SVB Loan Agreement to prime rate plus 4.25%. Subsequent to the end of the first quarter of fiscal 2015, on June 18, 2014, we used funds received from our accounts receivable facility with Fast Pay to repay all outstanding amounts due and owing under the SVB Loan Agreement, and all commitments under the SVB Loan Agreement were terminated (see below). No penalties were due in connection with the repayment.
	Fast Pay Partners LLC
	Subsequent to the end of the first quarter of fiscal 2015, on June 2, 2014, we entered into a Financing and Security Agreement, amended on June 4, 2014, with Fast Pay Partners LLC (“Fast Pay”) creating an accounts receivable-based credit facility (the “Agreement”). Under the terms of the Agreement, Fast Pay may, at its sole discretion, purchase our eligible accounts receivables. Upon any acquisition of accounts receivable, Fast Pay will advance to us up to 70% of the gross value of the purchased accounts, up to a maximum of $5.0 million in advances. Purchased accounts will be subject to a factoring fee of (i) 1.25%, flat fee, of the gross value of the account for the initial 30-day period; (ii) 1.25%, prorated daily, of the gross value of the account outstanding, commencing on day 30 and ending on day 89, and (iii) 1.75%, prorated daily, of the gross value of the account outstanding, commencing on day 90 and continuing thereafter. The minimum monthly fee beginning on July 1, 2014 will be $12,500. Fast Pay will generally have full recourse against us in the event of nonpayment of any purchased accounts. Our obligations under the credit facility are secured by substantially all of our assets.
	The Agreement contains covenants, primarily related to accounts receivable and audit rights, and events of default that are customary for agreements of this type. Failure to satisfy these covenants or the occurrence of events that constitute an event of default could result in the termination of the Agreement and/or the acceleration of our outstanding obligations.
	The Agreement has an initial term of one year and automatically renews for successive terms subject to earlier termination by written notice by us, provided that all obligations are paid. Fast Pay may terminate the Agreement at any time and require immediate payment of all outstanding obligations.

CONCENTRATION_OF_RISK

CONCENTRATION OF RISK	3 Months Ended
	31-May-14
Notes to Financial Statements	'
CONCENTRATION OF RISK	'
	During the quarter ended May 31, 2014, four customers accounted for approximately 19%, 5%, 5% and 5% of our revenue, respectively, and no other customer accounted for over 5% of revenues.  During the quarter ended May 31, 2013, four customers accounted for approximately 7.9%, 7.5%, 5.2%, and 5% of our revenue, respectively, and no other customer accounted for over 5% of revenue.
	At May 31, 2014, two customers accounted for approximately 35% of accounts receivable, the largest of which accounted for 29%. At May 31, 2013, three customers accounted for 19% of accounts receivable, the largest of which accounted for approximately 9%.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	31-May-14
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	On June 2, 2014, we implemented changes to our operating plan designed to reduce operating expenses while continuing to maintain our focus on profitable revenue growth. The plan is designed to conserve our resources and further align our ongoing expenses with our business by focusing our sales efforts on higher value customers, concentrating our research and development effort on maintaining and enhancing our product offering using technology to reduce product delivery costs, and consolidating certain non-core personnel positions.
	On June 2, 2014, we entered into a Financing and Security Agreement, amended on June 4, 2014, with Fast Pay Partners LLC (“Fast Pay”) creating an accounts receivable-based credit facility. See Note 7 for a description of the credit facility. Copies of the Financing Agreement dated June 2, 2014 and the amendment dated June 4, 2014 are attached as an exhibit to this Form 10-Q.
	On June 18, 2014 we repaid our revolving loan facility with Silicon Valley Bank (“SVB”) using funds received under our credit facility with Fast Pay, and the loan facility with SVB was terminated.

ORGANIZATION_AND_BASIS_OF_PRES1

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	31-May-14
Notes to Financial Statements	'
Organization and Basis of Presentation and Description of Business	'
	The accompanying unaudited interim financial statements of Hipcricket, Inc. (“Hipcricket,” the “Company,” “we,” or “us”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in our Annual Report on Form 10-K filed with the SEC on May 14, 2014.
	In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the fiscal year ended February 28, 2014 included in our Annual Report on Form 10-K have been omitted.
	Description of Business
	We provide an end-to-end, data driven mobile engagement and analytics solution that empowers brands, agencies and media companies to drive customer engagement, loyalty and sales.  Our proprietary, scalable and user friendly AD LIFE® software-as-a service (“SaaS”) platform (“AD LIFE Platform” or the “Platform”) creates measurable, real-time, one-to-one relationships between companies and their current or prospective customers, using text messages, multimedia messages (“MMS”), mobile web sites, mobile applications, mobile coupons, quick response (“QR”) codes and via mobile advertising.
	Our AD LIFE Platform is a mobile engagement solution that simplifies the entire mobile ecosphere into a single, scalable, self-service access point.  The Platform enables our customers to quickly plan, create, test, deploy, monitor, measure and optimize interactive mobile marketing and advertising programs throughout the campaign lifecycle across nearly every major mobile channel.  We have delivered over 400,000 campaigns since 2004, across hundreds of customers including Fortune 100 and other established brand clients.  Additionally, we have earned a greater than 90% renewal rate with our mobile marketing customers.
	Using our patented device-detection and proprietary mobile content adaptation software, the AD LIFE Platform addresses the mobile marketing industry problem of disparate operating systems, device types, and on-screen mobile content rendering.  We also provide business-to-consumer utilities, including national mobile couponing solutions, strategic mobile healthcare tools, custom mobile application development, and consumer data tracking and analytics.  Our products serve marketers, brands, and agencies in many vertical markets, including automotive, retail, consumer products, food and beverage, media and broadcast, pharmaceutical and restaurant brands.
	The Platform features a rich analytics engine that sources real-time campaign data, in addition to third party and client information, to personalize mobile advertising and marketing campaigns, thereby increasing the effectiveness of these messages and the likelihood of re-engagement.  The Platform automatically tracks mobile phone numbers through interactions across nearly every major mobile channel, capturing and applying additional data to build a more complete consumer profile.  Our current database consists of detailed profiles on millions of mobile phone numbers, which, by employing third party data, can be turned into virtually unlimited segments. These data help advertisers understand the most effective use of advertising resources and help optimize their marketing spend, especially for projects that feature repeat customer relationships.  Our applied analytics product, which was released in fiscal year 2014, offers technologies and solutions designed to help advertisers dynamically track, measure and analyze the performance of their advertising and marketing investments in real time to rapidly tailor their mobile marketing activities.
	The mobile marketing and advertising landscape, while in its early stages, is highly competitive.  Many of the landscape’s significant players are focused on delivering point solutions targeting a specific segment of the mobile marketing and/or advertising landscape.  We believe that we differ from the competition by offering complete, end-to-end mobile advertising, mobile marketing, and analytics solutions delivered through our AD LIFE Platform.
	Our advanced, comprehensive, and fully integrated Platform drives revenue primarily through license fees, content development fees, short message service (“SMS”) campaign fees, and fees associated with various add-on promotional applications in the Platform. Additional revenue is generated by platform administration and professional service fees related to the mobilization of client content and implementation of marketing campaigns through the Platform.
	Our portfolio of patents covers technical processes and methods related to behavioral targeting — the automatic provision of customized content to individuals based on information such as past web activity, personal preferences, geography, or demographic data. As of May 31, 2014, we owned 21 U.S. patents.  We are pursuing on a selective basis, additional patents that generally relate to targeting, analytics, advanced mobile marketing, customized content delivery, and mobile and networked marketing technology.
	We are a corporation organized under the laws of the State of Delaware in March 2000.  We were formally known as Augme Technologies, Inc. and changed our name to Hipcricket, Inc. in August 2013. Our principal executive offices are located at 110 110th Avenue NE, Bellevue, WA 98004. Our telephone number is (855) 423-5433. Our corporate website is www.hipcricket.com.  Information contained in or accessible through our website is not part of this report.
	Hipcricket®, Inc., Augme® Technologies™, AD LIFE® (“AD LIFE”), AD SERVE®, A+®, Boombox® and the Company logos are trademarks of Hipcricket, Inc.
Liquidity	'
	Liquidity
	As of May 31, 2014 and February 28, 2014, we had accumulated deficits of $139.1 million and $133.6 million, respectively. We are subject to the risks and challenges associated with companies at a similar stage of development including dependence on key individuals, successful development and marketing of our products and services, integration of recent business combinations, competition from substitute products and services and larger companies with greater financial, technical management and marketing resources. Any of the following factors could have a significant negative effect on our future financial position, results of operations and cash flows: unanticipated fluctuations in quarterly operating results, adverse changes in our relationship with significant customers or failure to secure contracts with other customers, intense competition, failure to attract and retain key personnel, failure to protect intellectual property, decreases in the migration trends from traditional advertising methods to digital and mobile media and the inability to manage growth.
	We will likely require additional financing to execute our key business strategies and fund operations. Such funds may not be readily available or may not be on terms that are favorable to us. Certain financing terms could be dilutive to existing stockholders, may give new investors rights, preferences and privileges that are superior to those of existing stockholders, could result in significant interest or other costs, or may require us to license or relinquish certain intellectual property rights. If sources of capital are unavailable, or are available only on a limited basis or under unacceptable terms, then we could be required to substantially reduce or discontinue our investments in new customers and new products; reduce selling, marketing, general and administrative costs related to our continuing operations; or limit the scope of our continuing operations, which would raise substantial doubt about our ability to continue as a going concern.  Due to the nature of our operations and financial commitments we may not have the discretion to reduce operations in an orderly manner to a more sustainable level without impacting future operations. Our financial statements contained in this report have been prepared assuming that we will continue as a going concern. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty.
	On June 2, 2014, we implemented changes to our operating plan focused on fostering profitable and sustainable revenue growth and optimizing our expense structure. The changes are designed to conserve our resources and realize operating efficiencies by focusing our sales efforts on higher value customers using technology to reduce product delivery costs, concentrating our development effort on maintaining and enhancing our product offering, and consolidating certain non-core personnel positions. We intend to continue our efforts to minimize cash spend and identify additional costs savings opportunities while carefully investing our resources and protecting our strategic assets to strengthen our position in the mobile marketing and mobile advertising industry.
	In June 2014, we secured an accounts receivable-based credit facility from Fast Pay Partners LLC (“Fast Pay”) to help fund our working capital needs. The revolving loan credit facility has an initial one year term and allows us to borrow up to 70% of the gross value of our eligible accounts receivable up to a maximum of $5.0 million. Under the terms of the Financing and Security Agreement (the “Agreement”), Fast Pay may, at its sole discretion, purchase our eligible accounts receivables. Each account receivable purchased by Fast Pay will be subject to a factoring fee of (i) 1.25%, flat fee, of the gross value of the account for the initial 30-day period; (ii) 1.25%, prorated daily, of the gross value of the account outstanding, commencing on day 30 and ending on day 89, and (iii) 1.75%, prorated daily, of the gross value of the account outstanding, commencing on day 90 and continuing thereafter. The minimum monthly fee beginning on July 1, 2014 will be $12,500. Our obligations under the credit facility are secured by substantially all of our assets. On June 18, 2014 we used cash available from the credit facility to repay our line of credit with Silicon Valley Bank (“SVB”) and we cancelled our accounts receivable credit facility with SVB. See Note 7 of the Notes to the Financial Statements for additional information about the credit facilities.
	In January 2014, we retained the corporate advisory services of Canaccord Genuity to explore and evaluate strategic alternatives with a view to enhancing shareholder value. We intend to consider a full range of strategic alternatives, including possible acquisitions or dispositions of assets, joint ventures, strategic investments, sale of the company or other potential transactions.  We have not set a timetable for completion of the strategic review, and there can be no assurance the process will result in a transaction or pursuit of any strategic alternative.
	We currently do not meet the minimum $75 million public float requirement for use of Form S-3 registration for primary sales of our common stock. Until such time as we satisfy the $75 million public float and other requirements for use of Form S-3 registration, we will be required to use a registration statement on Form S-1 to register any public offering of our securities with the SEC or must issue such securities in a private placement or other transaction exempt from registration under federal securities law, which could increase the cost of raising capital.
Principles of Consolidation	'
	Principles of Consolidation
	Prior to October 2013, our financial statements were consolidated and included the accounts of Hipcricket, Inc., formerly Augme Technologies, Inc., and our wholly owned subsidiaries. In October 2013, we merged Hipcricket, Inc. and our subsidiaries into a single entity and our financial statements have been prepared on an unconsolidated basis since that date.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements. We regularly evaluate estimates and judgments based on historical experience and other relevant facts and circumstances. Actual results could differ from those estimates. Significant estimates relate to allowances for tax assets, the use of the Black-Scholes-Merton pricing model for valuing stock option and common stock warrant issuances, estimates of future cash flows used to estimate the value of long-lived assets and implied fair value of goodwill, revenues earned from percentage of completion contracts and the period in which revenues should be recorded.
Summary of Significant Accounting Policies	'
	Summary of Significant Accounting Policies
	The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the SEC. The same accounting policies are followed for preparing the quarterly and annual financial information unless otherwise disclosed.

SHAREBASED_PAYMENTS_Tables

SHARE-BASED PAYMENTS (Tables)	3 Months Ended
	31-May-14
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Effect on results of operations of recording share-based compensation expense	'
		Three Months Ended
		May 31,
		2014			2013
	Selling and marketing	$	190,210		$	338,366
	Technology and development		92,212			371,563
	General and administrative		309,441			341,972
	Total stock-based compensation expense	$	591,863		$	1,051,901
Assumptions used to value option grants	'
		Three Months Ended
		May 31,
		2014			2013
	Expected dividends		0	%		0	%
	Expected term (in years)		3.5			3.5
	Weighted-average volatility		70	%		70	%
	Risk-free rate		1.01	%		0.51	%
Summary of activity for stock options	'
		Number of options			Weighted Average Exercise Price			Average Remaining Contractual Term (In Years)
	Options outstanding at February 28, 2014		14,052,978		$	1.02			2.9
	Granted		12,125,549			0.33
	Exercised		-			-
	Forfeited and expired		(624,990	)		0.54
	Options outstanding at May 31, 2014		25,553,537		$	0.7			5
	Options vested and expected to vest at May 31, 2014		19,197,425		$	0.53			4.8
	Options exercisable at May 31, 2014		8,890,709		$	1.4			1.6
Estimated fair values of stock warrant awards issued to service providers and employees	'
		Three Months Ended
		May 31,
		2014			2013
	Expected dividends		n/a			0	%
	Expected term (in years)		n/a			3
	Weighted-average volatility		n/a			78	%
	Risk-free rate		n/a			1.17	%
Summary of activity for warrants	'
		Number of Warrants			Weighted Average Exercise Price			Average Remaining Contractual Term (In Years)
	Warrants outstanding at February 28, 2014		27,186,156		$	1.06			3.4
	Granted		-			-
	Exercised		-			-
	Forfeited and expired		(373,343	)		2.15
	Warrants outstanding at May 31, 2014		26,812,813		$	1.05			3.17
	Warrants vested and expected to vest at May 31, 2014		26,812,813		$	1.05			3.17
	Warrants exercisable at May 31, 2014		26,216,982		$	1.05			3.17
Summary of restricted stock option activity	'
		Number of shares			Weighted Average Grant Date Fair Value Per Share
	Unvested at February 28, 2014		-		$	-
	Granted		4,800,000			0.23
	Vested		-			-
	Forfeited		-			-
	Unvested at May 31, 2014		4,800,000		$	0.23
	Expected to vest after May 31, 2014		4,800,000		$	0.23

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	3 Months Ended
	31-May-14
Notes to Financial Statements	'
Gross carrying value of components of intangible assets and accumulated amortization	'
				As of May 31, 2014
		Weighted Average Amortization Period (In months)		Gross Carrying Amount, net of impairment write downs		Accumulated Amortization		Net Carrying Value
	Indefinite Lived Intangible:
	Trade name	Indefinite		$	8,700,000	$	-	$	8,700,000
	Definite Lived Intangible:
	Patent litigation		84		4,367,399		2,208,105		2,159,294
	Patents		120		717,846		142,836		575,010
	Acquired technology		60		7,270,000		4,283,250		2,986,750
	Customer relationships		60-72		12,850,000		7,316,875		5,533,125
	Software		36		2,095,705		2,095,705		-
	Non-compete agreements		36		212,000		212,000		-
	Trade names		24		44,000		44,000		-
	Total intangibles			$	36,256,950	$	16,302,771	$	19,954,179
				As of February 28, 2014
		Weighted Average Amortization Period (In months)		Gross Carrying Amount, net of impairment write downs		Accumulated Amortization		Transferred from Held for Sale		Impairment Loss		Net Carrying Value
	Indefinite Lived Intangible:
	Trade name	Indefinite		$	8,700,000	$	-	$	-	$	-	$	8,700,000
	Definite Lived Intangible:
	Patent litigation		84		4,451,946		1,971,568		-		87,975		2,392,403
	Patents		120		623,600		125,125		3,123,016		3,028,771		592,720
	Acquired technology		60		7,270,000		3,919,750		-		-		3,350,250
	Customer relationships		60-72		12,850,000		6,682,292		-		-		6,167,708
	Software		36		2,095,705		2,095,705		-		-		-
	Non-compete agreements		36		212,000		212,000		-		-		-
	Trade names		24		44,000		44,000		-		-		-
	Total intangibles			$	36,247,251	$	15,050,440	$	3,123,016	$	3,116,746	$	21,203,081
Schedule of the expected future amortization	'
	Remainder of Fiscal Year 2015	$	3,673,469
	2016		4,637,948
	2017		2,562,571
	2018		70,843
	2019		70,843
	Thereafter		238,505
	Total	$	11,254,179

ORGANIZATION_AND_BASIS_OF_PRES2

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) (USD $)	3 Months Ended
	31-May-14	Feb. 28, 2014
	Integer
Notes to Financial Statements	'	'
Delivered campaigns	'400,000	'
Renewal rate	90.00%	'
Patents owned	21	'
Accumulated deficit	($139,069,063)	($133,648,333)
Revolving loan facility line of credit capacity	5,000,000	'
Line of credit term	'1 year	'
LOC Interest rate above prime	1.25%	'
LOC Interest rate above prime, streamline period	0.75%	'
Borrowing base	70.00%	'
Minimum monthly fee	$12,500	'

STOCKHOLDERS_EQUITY_Details_Na

STOCKHOLDERS' EQUITY (Details Narrative) (2014 Equity Plan [Member], USD $)	3 Months Ended
	31-May-14
2014 Equity Plan [Member]	'
Shares authorized for issuance under plan	12,000,000
Common stock issued pursuant to compensation plan	4,800,000
Fair value of shares issued under plan	$0.23

SHAREBASED_PAYMENTS_Details

SHARE-BASED PAYMENTS (Details) (USD $)	3 Months Ended
	31-May-14	31-May-13
Total stock option and warrant expense	$591,863	$1,051,901
Selling and Marketing Expense [Member]	'	'
Total stock option and warrant expense	190,210	338,366
Technology and development	'	'
Total stock option and warrant expense	92,212	371,563
General and Administrative Expense [Member]	'	'
Total stock option and warrant expense	$309,441	$341,972

SHAREBASED_PAYMENTS_Details_1

SHARE-BASED PAYMENTS (Details 1)	3 Months Ended	12 Months Ended
	31-May-14	Feb. 28, 2014
Expected term (in years)	'5 years	'
Stock Options [Member]	'	'
Expected dividends	0.00%	0.00%
Expected term (in years)	'3 years 6 months	'3 years 6 months
Weighted-average volatility	70.00%	70.00%
Risk-free rate minimum	1.01%	0.51%
Risk-free rate maximum	1.01%	0.51%

SHAREBASED_PAYMENTS_Details_2

SHARE-BASED PAYMENTS (Details 2) (USD $)	3 Months Ended
	31-May-14
Share-Based Payments Details 2	'
Options outstanding beginning	14,052,978
Granted	12,125,549
Exercised	'
Forfeited or expired	-624,990
Options outstanding ending	25,553,537
Options vested and expected to vest	19,197,425
Options exercisable	8,890,709
Weighted Average Exercise Price Beginning	$1.02
Granted	$0.33
Exercised	'
Forfeited or expired	$0.54
Weighted Average Exercise Price Ending	$0.70
Weighted Average Exercise Price vested and expected to vest	$0.53
Weighted Average Exercise Price Exercisable	$1.40
Average remaining contractual term, beginning of period	'2 years 10 months 24 days
Average remaining contractual term, end of period	'5 years
Average remaining contractual term vested and expected to vest	'4 years 9 months 18 days
Average remaining contractual term exercisable	'1 year 7 months 6 days

SHAREBASED_PAYMENTS_Details_3

SHARE-BASED PAYMENTS (Details 3)	3 Months Ended
	31-May-14	31-May-13
Expected term (in years)	'5 years	'
Warrant [Member]	'	'
Expected dividends	'	0.00%
Expected term (in years)	'3 years 2 months 1 day	'3 years
Weighted-average volatility	'	78.00%
Risk-free rate	'	1.17%

SHAREBASED_PAYMENTS_Details_4

SHARE-BASED PAYMENTS (Details 4) (USD $)	3 Months Ended
	31-May-14	31-May-13	Feb. 28, 2014
Options outstanding beginning	14,052,978	'	'
Granted	12,125,549	'	'
Exercised	'	'	'
Forfeited or expired	-624,990	'	'
Options outstanding ending	25,553,537	'	'
Options vested and expected to vest	19,197,425	'	'
Options exercisable	8,890,709	'	'
Weighted Average Exercise Price Beginning	$1.02	'	'
Granted	$0.33	'	'
Exercised	'	'	'
Forfeited or expired	$0.54	'	'
Weighted Average Exercise Price Ending	$0.70	'	'
Weighted Average Exercise Price vested and expected to vest	$0.53	'	'
Weighted Average Exercise Price Exercisable	$1.40	'	'
Average remaining contractual term, end of period	'5 years	'	'
Average remaining contractual term vested and expected to vest	'4 years 9 months 18 days	'	'
Average remaining contractual term exercisable	'1 year 7 months 6 days	'	'
Warrant [Member]	'	'	'
Options outstanding beginning	27,186,156	'	'
Granted	'	'	'
Exercised	'	'	'
Forfeited or expired	-373,343	'	'
Options outstanding ending	26,812,813	'	'
Options vested and expected to vest	26,812,813	'	'
Options exercisable	26,216,982	'	26,477,822
Weighted Average Exercise Price Beginning	$1.05	'	'
Granted	'	'	'
Exercised	'	'	'
Forfeited or expired	$2.15	'	'
Weighted Average Exercise Price Ending	$1.05	'	'
Weighted Average Exercise Price vested and expected to vest	$1.05	'	'
Weighted Average Exercise Price Exercisable	$1.05	'	$1.07
Average remaining contractual term, beginning of period	'3 years 4 months 24 days	'	'
Average remaining contractual term, end of period	'3 years 2 months 1 day	'3 years	'
Average remaining contractual term vested and expected to vest	'3 years 2 months 1 day	'	'
Average remaining contractual term exercisable	'3 years 2 months 1 day	'	'

SHAREBASED_PAYMENTS_Details_5

SHARE-BASED PAYMENTS (Details 5) (USD $)	3 Months Ended
	31-May-14
Granted	12,125,549
Vested	'
Forfeited	-624,990
Granted	$0.33
Exercised	'
Forfeited or expired	$0.54
Restricted Stock [Member]	'
Beginning	'
Granted	4,800,000
Vested	'
Forfeited	'
Ending	4,800,000
Expected to Vest	4,800,000
Weighted Average Grant Date Fair Value per Share Beginning	'
Granted	$0.23
Exercised	'
Forfeited or expired	'
Weighted Average Grant Date Fair Value per Share Ending	$0.23
Weighted Average Grant Date Fair Value per Share Expected to Vest	$0.23

SHAREBASED_PAYMENTS_Details_Na

SHARE-BASED PAYMENTS (Details Narrative) (USD $)	3 Months Ended
	31-May-14	Feb. 28, 2014
Shares outstanding	25,553,537	14,052,978
Stock Options [Member]	'	'
Unrecognized share-based payment expense	$3,300,000	'
Weighted average expected life of share based payment expense	'3 years 9 months 5 days	'
Aggregate intrinsic value of the exercisable options	336	'
Aggregate intrinsic value of the exercisable options, Per share	$0.22	'
Exercise prices of options outstanding, Lower limit	$0.18	'
Exercise prices of options outstanding, upper limit	$3.90	'
Weighted average fair value of options granted	$0.11	'
Warrant [Member]	'	'
Shares outstanding	26,812,813	27,186,156
Unrecognized share-based payment expense	73,029	'
Weighted average expected life of share based payment expense	'1 year 6 months	'
Aggregate intrinsic value of the exercisable options	'	'
Aggregate intrinsic value of the exercisable options, Per share	$0.22	'
Exercise prices of options outstanding, Lower limit	$0.39	'
Exercise prices of options outstanding, upper limit	$4	'
2010 Incentive Plan [Member]	'	'
Authorized for issuance	15,000,000	'
Shares outstanding	11,500,000	'
2014 Equity Plan [Member]	'	'
Authorized for issuance	12,000,000	'
Shares outstanding	9,600,000	'

NET_LOSS_PER_SHARE_Details_Nar

NET LOSS PER SHARE (Details Narrative)	3 Months Ended
	31-May-14	31-May-13
Options [Member]	'	'
Anti-dilutive securities excluded from computation of loss per share	8,900,000	12,900,000
Warrant [Member]	'	'
Anti-dilutive securities excluded from computation of loss per share	26,200,000	18,400,000

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)

31-May-14

Feb. 28, 2014

31-May-14

Feb. 28, 2014

31-May-14

Feb. 28, 2014

31-May-14

Feb. 28, 2014

31-May-14

Feb. 28, 2014

31-May-14

Feb. 28, 2014

31-May-14

Feb. 28, 2013

31-May-14

Feb. 28, 2014

31-May-14

Feb. 28, 2014

31-May-14

Feb. 28, 2014

31-May-14

Feb. 28, 2014

Patent litigation

Patent litigation

Patents

Patents

Acquired technology

Acquired technology

Customer relationships

Customer relationships

Customer relationships

Customer relationships

Customer relationships

Customer relationships

Software

Software

Non-compete agreements

Non-compete agreements

Trade names

Trade names

Trade Names [Member]

Trade Names [Member]

Integer

Integer

Integer

Integer

Integer

Integer

Minimum [Member]

Minimum [Member]

Maximum [Member]

Maximum [Member]

Integer

Integer

Integer

Integer

Integer

Integer

Integer

Integer

Integer

Integer

Weighted Average Amortization Period (In months)

'

'

84

84

120

120

60

60

'

'

60

60

72

72

36

36

36

36

24

24

'

'

Gross Carrying Amount

$36,256,950

$36,247,251

$4,367,399

$4,451,946

$717,846

$623,600

$7,270,000

$7,270,000

$12,850,000

$12,850,000

'

'

'

'

$2,095,705

$2,095,705

$212,000

$212,000

$44,000

$44,000

$87,000,000

$8,700,000

Accumulated Amortization

16,302,771

15,050,440

2,208,105

1,971,568

142,836

125,125

4,283,250

3,919,750

7,316,875

6,682,292

'

'

'

'

2,095,705

2,095,705

212,000

212,000

44,000

44,000

'

'

Transfer to Held For Sale

'

3,123,016

'

'

'

3,123,016

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Impairment Loss

'

3,116,746

'

87,975

'

3,028,771

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Net Carrying Value

$19,954,179

$21,203,081

$2,159,294

$2,392,403

$575,010

$592,720

$2,986,750

$3,350,250

$5,533,125

$6,167,708

'

'

'

'

'

'

'

'

'

'

$8,700,000

$8,700,000

INTANGIBLE_ASSETS_Details_1

INTANGIBLE ASSETS (Details 1) (USD $)	31-May-14
Intangible Assets Details 1	'
Remainder of Fiscal Year 2015	$3,673,469
2016	4,637,948
2017	2,562,571
2018	70,843
2019	70,843
Thereafter	238,505
Total	$11,254,179

INTANGIBLE_ASSETS_Details_Narr

INTANGIBLE ASSETS (Details Narrative) (USD $)	3 Months Ended
	31-May-14	31-May-13
Intangible Assets Details Narrative	'	'
Hipcricket trade name infinite life, value	$8,700,000	'
Amortization of intangible assets	$1,300,000	$1,200,000

CONTINGENCIES_Details_Narrativ

CONTINGENCIES (Details Narrative) (ShaubWilliamsLLP [Member], USD $)	31-May-14
ShaubWilliamsLLP [Member]	'
Pending litigation amount	$2,249,686

CREDIT_FACILITIES_Details_Narr

CREDIT FACILITIES (Details Narrative) (USD $)	3 Months Ended
	31-May-14
Credit Facilities Details Narrative	'
Revolving loan facility line of credit	$5,000,000
Borrowing base	70.00%
Minimum monthly fee	12,500
LOC Interest rate above prime	1.25%
LOC Interest rate above prime, streamline period	0.75%
Streamline rate, Unrestricted cash value trigger	$4,000,000
LOC Quarterly fee	0.25%
LOC Minimum tangible net worth and other terms	'The loan agreement also requires us to maintain a minimum tangible net worth of at least negative $1.25 million, increasing (i) at the end of each month by 50% of the proceeds of issuances of equity securities and the principal amount of any subordinated debt received during such month, (ii) at the end of each calendar quarter 50% of net income for such quarter and (iii) immediately by 1.5x the cash received by us from the sale of any intellectual property minus any realized gain or plus any realized loss associated with the sale of such intellectual property.

CONCENTRATION_OF_RISK_Details_

CONCENTRATION OF RISK (Details Narrative)	3 Months Ended
	31-May-14	31-May-13
Three Customers [Member]	'	'
Customers accounted accounts receivables	35.00%	19.00%
Largest Customer [Member]	'	'
Customers accounted accounts receivables	29.00%	'
Largest Customers [Member]	'	'
Customers accounted accounts receivables	'	9.00%
Customer One [Member]	'	'
Revenue major customer percentage	19.00%	7.90%
Customer Two [Member]	'	'
Revenue major customer percentage	5.00%	7.50%
Customer Three [Member]	'	'
Revenue major customer percentage	5.00%	5.20%
Customer Four [Member]	'	'
Revenue major customer percentage	5.00%	5.00%
No Other Customer [Member]	'	'
Revenue major customer percentage	5.00%	5.00%