Hipcricket (HIPP) 10-Q 15 Oct 14 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	6 Months Ended
	Aug. 31, 2014	Oct. 09, 2014	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-Aug-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	'Q2	'	'

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Aug. 31, 2014	Feb. 28, 2014
ASSETS	'	'
Cash and cash equivalents	$814,422	$3,002,442
Restricted cash	419,859	214,751
Accounts receivable, net	6,989,318	6,808,401
Prepaid expenses and other current assets	521,532	415,507
Total current assets	8,745,131	10,441,101
Property and equipment, net	315,632	322,628
Goodwill	'	35,060,183
Intangible assets, net	12,865,841	21,203,081
Deposits	159,255	162,555
TOTAL ASSETS	22,085,859	67,189,548
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Accounts payable	7,728,319	4,411,606
Accrued liabilities	3,654,787	2,628,635
Deferred revenue	416,493	807,598
Line of credit	3,008,286	2,210,045
Total current liabilities	14,807,885	10,057,884
Deferred income tax liability, net	3,376,383	3,376,383
Accrued liabilities	240,091	55,059
TOTAL LIABILITIES	18,424,359	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	188,645,087	187,333,089
Accumulated deficit	-184,999,066	-133,648,333
Total stockholders' equity	3,661,500	53,700,222
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$22,085,859	$67,189,548

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Aug. 31, 2014	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		6 Months Ended
	Aug. 31, 2014	Aug. 31, 2013	Aug. 31, 2014	Aug. 31, 2013
Borrowing base	'	'	'	'
REVENUE	$7,009,631	$7,592,735	$14,340,431	$13,458,299
COST OF REVENUES	3,163,095	3,381,299	6,800,839	5,983,802
OPERATING EXPENSES:	'	'	'	'
Selling and marketing	2,941,684	2,824,362	6,023,268	6,161,495
Technology and development	1,373,434	1,370,120	3,142,735	3,358,349
General and administrative	3,127,568	2,099,201	6,073,647	4,776,113
Depreciation and amortization	1,040,908	1,278,120	2,329,225	2,553,310
Impairment of intangible assets	6,089,294	'	6,089,294	'
Goodwill impairment	35,060,183	'	35,060,183	'
Total operating expenses	49,633,071	7,571,803	58,718,352	16,849,267
LOSS FROM OPERATIONS	-45,786,535	-3,360,367	-51,178,760	-9,374,770
OTHER EXPENSE:	'	'	'	'
Interest expense, net	-143,468	-13,888	-171,973	-14,689
NET LOSS BEFORE INCOME TAXES	-45,930,003	-3,374,255	-51,350,733	-9,389,459
Income tax benefit	'	'	'	'
NET LOSS	($45,930,003)	($3,374,255)	($51,350,733)	($9,389,459)
NET LOSS PER SHARE - Basic and diluted	($0.30)	($0.03)	($0.33)	($0.07)
WEIGHTED AVERAGE SHARES OUTSTANDING	'	'	'	'
Basic and diluted	154,786,916	130,164,694	154,769,253	129,880,120

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	$188,645,087	($184,999,066)	$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	'	1,005,403	'	'
Warrants issued for services	'	35,080	'	'
Restricted stock units issued for service	'	236,528	'	'
Net Loss	'	'	-51,350,733	-51,350,733
Ending Balance, Amount at Aug. 31, 2014	$15,479	$188,645,087	($184,999,066)	$3,661,500
Ending Balance, Shares at Aug. 31, 2014	154,786,916	'	'	'

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Aug. 31, 2014	Aug. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($51,350,733)	($9,389,459)
Depreciation and amortization	2,329,225	2,553,310
Bad debt expense and other	101,976	23,615
Common stock issued for services	'	271,167
Common stock issued for settlement	35,000	'
Share-based payments	1,277,011	1,878,715
Impairment of intangible assets	6,089,294	'
Goodwill impairment	35,060,183	'
Changes in operating assets and liabilities:	'	'
Accounts receivable	-282,893	-107,597
Prepaid expenses and other current assets	-106,025	266,264
Deposits	3,300	-23,111
Accounts payable and accrued liabilities	4,342,865	-521,806
Deferred revenue	-391,105	-252,151
Long-term liabilities and other	184,924	-34,034
NET CASH USED IN OPERATING ACTIVITIES	-2,911,978	-5,335,087
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Cash paid for purchase of patents	'	-43,540
Cash paid for patent defense costs	-3,429	-231,068
Additions to property and equipment	-70,854	'
Cash paid for long-term investment	'	-54,667
NET CASH USED IN INVESTING ACTIVITIES	-74,283	-329,275
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds received from line of credit	798,241	1,669,377
Proceeds received from the exercise of stock options and warrants, net	'	2,500
NET CASH PROVIDED BY FINANCING ACTIVITIES	798,241	1,671,877
NET CHANGE IN CASH AND CASH EQUIVALENTS	-2,188,020	-3,992,485
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	3,002,442	4,352,691
CASH AND CASH EQUIVALENTS, END OF PERIOD	814,422	360,206
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'
Interest paid	$172,103	$14,804

ORGANIZATION_AND_BASIS_OF_PRES

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Aug. 31, 2014
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. The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
	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 August 31, 2014, we owned 23 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 (425) 452-1111. 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 August 31, 2014 and February 28, 2014, we had accumulated deficits of $185.0 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 require substantial additional capital to fund our continuing operations and execute our key business strategies. Such funds may not be readily available or may not be on terms that are favorable to us. Currently, we are funding operations primarily through borrowings under our accounts receivable facility with Fast Pay Partners LLC and through a buildup of our accounts payable balances. In January 2014, we retained the corporate advisory services of Canaccord Genuity to explore and evaluate strategic alternatives. We are currently evaluating a variety of strategic transactions, including possible dispositions of assets, 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 transaction.
	In addition to strategic transactions, we are also evaluating potential opportunities to raise capital through the sale of equity or debt securities. Any such financing transactions likely would require us to effect a reverse stock split of our common stock in order to have sufficient common shares available for issuance and would result in significant dilution of existing stockholders. Additionally, such financing, if any, 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.
	On October 14, 2014, we announced that our board of directors approved a 1-for 40 reverse split of our common stock, to be effective upon completion of the regulatory qualification process with the Financial Industry Regulatory Authority (“FINRA”). Subject to receipt of FINRA clearance, we currently anticipate that the reverse stock split will be effective within the next several weeks. The reverse stock split was approved by our stockholders at the annual meeting of stockholders held on September 18, 2014. We intend to issue a press release at the effective time of the reverse stock split.
	As a result of the reverse stock split, every 40 shares of our common stock automatically will be combined into one issued and outstanding share of common stock without any change in the par value per share. Any fractional shares which might result from the reverse split will be rounded up to the next whole share. The reverse stock split will reduce the number of authorized shares of our common stock outstanding from approximately 154.8 million to 3.9 million. The reverse stock split will not impact the number of our authorized common shares. As a result, the proportion of common shares owned by our stockholders relative to the number of shares available for issuance will decrease, and the additional authorized shares of common stock will be available for issuance at such times and for such purposes as our board deems advisable without further action by our stockholders, except as required by law or regulation. We have no assurance that the reverse stock split will increase the market price or improve the marketability and liquidity of our common stock to a level that may make it more attractive to potential investors, or that a financing transaction otherwise can or will be accomplished in a timely manner, on favorable terms, or at all.
	If sources of capital are unavailable, or are available only on a limited basis or under unacceptable terms, we would 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; limit the scope of our continuing operations; or explore liquidation alternatives, including seeking protection from creditors through the application of the bankruptcy laws. 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.
	In June 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, concentrating our development effort on maintaining and enhancing our product offering, using technology to reduce product delivery costs, and consolidating certain non-core personnel positions. We expect to see the financial benefits of the new operating plan beginning in the third fiscal quarter ending November 30, 2014. 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.
	On June 2, 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. As of August 31, 2014, we had $1.8 million available under the credit facility based on our eligible accounts receivable balance. Under the terms of the Financing and Security Agreement (the “Agreement”), Fast Pay may, at its sole discretion, purchase our eligible accounts receivables with recourse. 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 is $12,500. Our obligations under the credit facility are secured by substantially all of our assets. On June 18, 2014 we used cash available under the credit facility to repay our loan facility with Silicon Valley Bank (“SVB”) and the SVB loan facility was terminated.
	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.

SHAREBASED_PAYMENTS

SHARE-BASED PAYMENTS	6 Months Ended
	Aug. 31, 2014
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, including stock options, warrants, and restricted stock awards, included in the statements of operations:
		Three Months Ended						Six Months Ended
		August 31,						August 31,
		2014			2013			2014			2013
	Selling and marketing	$	202,975		$	252,765		$	393,185		$	591,131
	Technology and development		86,822			137,342			179,034			508,905
	General and administrative		395,351			436,706			704,792			778,679
	Total stock-based compensation expense	$	685,148		$	826,813		$	1,277,011		$	1,878,715
	OPTIONS:
	We maintain stock incentive plans for our employees. The 2010 Incentive Stock Option Plan permits 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 9.6 million stock options and restricted shares outstanding under this plan as of August 31, 2014. The 2014 Equity Incentive Plan permits 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 August 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						Six Months Ended
		August 31,						August 31,
		2014			2013			2014			2013
	Expected dividends		0	%		0	%		0	%		0	%
	Expected term (in years)		3.5			3.5			3.5			3.5
	Weighted-average volatility		75	%		70	%		70	%		70	%
	Risk-free rate		1.12	%		0.51	%		1.01	%		0.51	%
	The summary of our stock option activity for the six months ended August 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		12,242,549			0.32
	Exercised		-			-
	Forfeited and expired		(3,017,727	)		1.07
	Options outstanding at August 31, 2014		23,277,800		$	0.64			5
	Options vested and expected to vest at August 31, 2014		21,018,309		$	0.68			4.8
	Options exercisable at August 31, 2014		8,219,626		$	1.22			1.6
	As of August 31, 2014, there was $1.2 million of unrecognized share-based payment expense related to options, which is expected to be recognized over a weighted average period of approximately 1.4 years.
	The aggregate intrinsic value of the exercisable options at August 31, 2014 was zero because the market value of our common stock on August 31, 2014 of $0.08 per share was lower than the exercise prices of the exercisable options. The exercise prices of options outstanding at August 31, 2014 ranged from $0.08 to $3.90 per share.  The weighted average fair value of options granted was $0.11 per option share for the six months ended August 31, 2014.
	WARRANTS:
	The fair values of our warrants were estimated using the following weighted average assumptions:
		Three Months Ended						Six Months Ended
		August 31,						August 31,
		2014			2013			2014			2013
	Expected dividends		n/a			0	%		n/a			0	%
	Expected term (in years)		n/a			5			n/a			5
	Weighted-average volatility		n/a			70	%		n/a			70	%
	Risk-free rate		n/a			1.62	%		n/a			1.62	%
	The summary of warrant activity for the six months ended August 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		(948,343	)		2.85
	Warrants outstanding at August 31, 2014		26,237,813		$	1			3
	Warrants vested and expected to vest at August 31, 2014		26,237,813		$	1			3
	Warrants exercisable at August 31, 2014		25,754,479		$	1			3
	As of August 31, 2014, there was approximately $55,700 of unrecognized share-based payment expense related to warrants, which is expected to be recognized over a weighted average period of approximately 1.4 years.
	The exercisable warrants as of August 31, 2014 had no aggregate intrinsic value because the market value of our common stock on August 31, 2014 of $0.08 per share was lower than the exercise prices of the exercisable warrants. The exercise prices of warrants outstanding at August 31, 2014 ranged from $0.39 to $4.00.
	RESTRICTED STOCK:
	The summary of our restricted stock activity for the six months ended August 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 August 31, 2014		4,800,000		$	0.23
	Expected to vest after August 31, 2014		4,800,000		$	0.23
	At August 31, 2014, there was approximately $700,586 of unrecognized compensation cost related to restricted stock awards, which is expected to be recognized over a weighted average period of approximately 1.5 years.

NET_LOSS_PER_SHARE

NET LOSS PER SHARE	6 Months Ended
	Aug. 31, 2014
Notes to Financial Statements	'
NET LOSS PER SHARE	'
	Basic net loss per share is calculated using the weighted average number of common shares outstanding during the reporting periods. Diluted net loss per share is calculated using the weighted average number of common shares outstanding taking into account the dilutive effect of all potentially dilutive securities, including common share equivalents consisting of warrants, stock options, and nonvested equity shares. As of August 31, 2014 and 2013, there were potentially dilutive securities consisting of options exercisable to purchase 8.2 million and 9.8 million shares of common stock, respectively, and warrants exercisable to purchase 25.8 million and 18.9 million shares of our common stock, respectively, and nonvested equity shares of 4.8 million and zero, respectively. Diluted net loss per share for the three and six months ended August 31, 2014 and 2013 is equal to the basic net loss per share because the effect of all potential common stock outstanding, including options, warrants, and nonvested equity shares is anti-dilutive.

GOODWILL_AND_INTANGIBLE_ASSETS

GOODWILL AND INTANGIBLE ASSETS	6 Months Ended
	Aug. 31, 2014
Notes to Financial Statements	'
GOODWILL AND INTANGIBLE ASSETS	'
	The changes in the carrying amount of goodwill for the quarter ended August 31, 2014 are as follows:
	Balance as of February 28, 2014:	$	35,060,183
	Impairment		(35,060,183	)
	Balance as of August 31, 2014:	$	-
	During the fiscal quarter ended August 31, 2014, we determined that sufficient indicators of potential impairment existed to require an interim goodwill impairment analysis for the Mobile Marketing and Advertising (“MMA”) reporting unit, the only reporting unit which has allocated goodwill. These indicators included the then recent trading values of our common stock, coupled with market conditions, recurring losses and liquidity constraints the company continues to experience. We performed the first step of the quantitative goodwill impairment assessment and concluded that there was an indication of impairment, and that the second step of the impairment test was required to be performed as of August 31, 2014. As a result of the second step, the implied fair value of goodwill was zero and we recognized an impairment loss of $35.1 million during the second quarter of fiscal year 2015, which is included in our statement of operations.
	As part of the goodwill impairment test, we tested the recoverability of the MMA reporting unit’s indefinite-lived (trade name) and long-lived assets (other than goodwill). During this assessment we concluded that the fair value of our trade name was $4.8 million and as a result, we recognized an impairment of $3.9 million during the second quarter of fiscal year 2015, which is included in our statement of operations.
	We estimate the fair value of our reporting units using primarily the income approach and, to a lesser extent, the market approach. Using the income approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. Cash flow projections are based on our estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the weighted-average cost of capital risk-adjusted for business-specific characteristics and the uncertainty related to the business's ability to execute on the projected cash flows. The market approach estimates fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting unit. The weighting of the fair value derived from the market approach ranges from 0% to 50% depending on the level of comparability of these publicly-traded companies to the reporting unit. When market comparables are not meaningful or not available, we may estimate the fair value of a reporting unit using only the income approach.
	In order to assess the reasonableness of the calculated fair values of our reporting units, we also compare the sum of the reporting units' fair values to our market capitalization and calculate an implied control premium (the excess of the sum of the reporting units' fair values over the market capitalization). We compare our implied control premium to the control premiums of recent comparable market transactions for reasonableness and may adjust the fair value estimates of our reporting units by adjusting the discount rates and/or other assumptions if necessary. Financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital, which we use to determine our discount rate, and our stock price, which we use to determine our market capitalization. Therefore, changes in the stock price may also affect the amount of impairment recorded. We believe that our market capitalization alone does not fully capture the fair value of our business as a whole, or the substantial value that an acquirer would obtain from its ability to obtain control of our business. As such, in determining fair value, we add a control premium to our market capitalization. To estimate the control premium, we consider our unique competitive advantages that would likely provide synergies to a market participant. In addition, we consider external market factors, which we believe, may contribute to changes in and volatility of our stock price that does not reflect our underlying fair value.
	The interim impairment assessment utilized Level 3 inputs to estimate the fair value of goodwill and the intangible assets including trade name. With the exception of the Hipcricket trade name carried at $4.8 million, the intangible assets have finite lives and, as such, are subject to amortization.
	As described in Note 5 of the financial statements, we were involved in a patent litigation case with Yahoo, Inc. and the case was in the Federal Circuit Court of Appeals. During the quarter ended August 31, 2014, the Court issued its opinion which upheld the decision of the district court and denied our appeal. As a result, we wrote off the capitalized patent litigation costs related to this case, resulting in an impairment charge of $2.2 million during the second quarter of fiscal year 2015, which is included in our statement of operations for the period.
	The following table presents the gross carrying value of the components of intangible assets and accumulated amortization:
					As of August 31, 2014
		Weighted Average Amortization Period			Gross Carrying Amount		Accumulated Amortization		Impairment Loss		Net Carrying Value
		(In months)
	Indefinite Lived Intangible:
	Trade name	Indefinite			$	8,700,000	$	-	$	3,930,000	$	4,770,000
	Definite Lived Intangible:
	Patent litigation		84			4,367,399		2,208,105		2,159,294		-
	Patents		120			717,846		160,547		-		557,299
	Acquired technology		60			7,270,000		4,630,000		-		2,640,000
	Customer relationships		60-72			12,850,000		7,951,458		-		4,898,542
	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	$	17,301,815	$	6,089,294	$	12,865,841
					As of February 28, 2014
		Weighted Average Amortization Period			Gross Carrying Amount		Accumulated Amortization		Transferred from Held for Sale		Impairment Loss		Net Carrying Value
		(In months)
	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 $1.0 million and $2.3 million for the three and six months ended August 31, 2014, respectively, and $1.2 million and $2.4 million for the three and six months ended August 31, 2013, respectively.
	Amortization in future fiscal periods is expected to be as follows:
	Remainder of Fiscal Year 2015	$	1,964,588
	2016		3,830,218
	2017		1,920,843
	2018		70,843
	2019		70,843
	Thereafter		238,506
	Total	$	8,095,841

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Aug. 31, 2014
Notes to Financial Statements	'
CONTINGENCIES	'
	Payments Pursuant to Employment Agreement
	On July 2, 2014, we and our former Chief Financial Officer Thomas J. Virgin agreed that his employment with the Company would cease as of July 3, 2014. We estimated that the amount due to Mr. Virgin under his existing employment agreement in effect at the time of his departure and recorded an accrual of approximately $412,000 in the quarter ended August 31, 2014. We expect to pay this amount according to our normal payroll periods through October 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 case has been 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.  On August 22, 2014 the parties agreed to settle the litigation and filed a Stipulation and Order of Dismissal with the Court on August 26, 2014.
	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	6 Months Ended
	Aug. 31, 2014
Credit Facilities	'
CREDIT FACILITIES	'
	Fast Pay Partners LLC
	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 with recourse. 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. As of August 31, 2014, we had $1.8 million available under the credit facility based on our eligible accounts receivable balance.  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. As of August 31, 2014, all of the purchased accounts receivable are current as defined in the terms of the agreement.
	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.
	On June 18, 2014, we used funds received under our accounts receivable facility with Fast Pay to repay all outstanding amounts due and owing under our asset based revolving loan facility with SVB, and all commitments under the SVB loan facility were terminated. No penalties were due in connection with the repayment.

CONCENTRATION_OF_RISK

CONCENTRATION OF RISK	6 Months Ended
	Aug. 31, 2014
Notes to Financial Statements	'
CONCENTRATION OF RISK	'
	During the quarter ended August 31, 2014, three customers accounted for approximately 9%, 7%, and 5% of our revenue, respectively, and no other customer accounted for over 5% of revenues.  During the quarter ended August 31, 2013, three customers accounted for approximately 7%, 6%, and 5% of our revenue, respectively, and no other customer accounted for over 5% of revenue.
	At August 31, 2014, two customers accounted for approximately 39% of accounts receivable, the largest of which accounted for 30%. At August 31, 2013, four customers accounted for 24% of accounts receivable, the largest of which accounted for approximately 8%.

ORGANIZATION_AND_BASIS_OF_PRES1

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Aug. 31, 2014
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. The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
	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 August 31, 2014, we owned 23 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 (425) 452-1111. 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 August 31, 2014 and February 28, 2014, we had accumulated deficits of $185.0 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 require substantial additional capital to fund our continuing operations and execute our key business strategies. Such funds may not be readily available or may not be on terms that are favorable to us. Currently, we are funding operations primarily through borrowings under our accounts receivable facility with Fast Pay Partners LLC and through a buildup of our accounts payable balances. In January 2014, we retained the corporate advisory services of Canaccord Genuity to explore and evaluate strategic alternatives. We are currently evaluating a variety of strategic transactions, including possible dispositions of assets, 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 transaction.
	In addition to strategic transactions, we are also evaluating potential opportunities to raise capital through the sale of equity or debt securities. Any such financing transactions likely would require us to effect a reverse stock split of our common stock in order to have sufficient common shares available for issuance and would result in significant dilution of existing stockholders. Additionally, such financing, if any, 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.
	On October 14, 2014, we announced that our board of directors approved a 1-for 40 reverse split of our common stock, to be effective upon completion of the regulatory qualification process with the Financial Industry Regulatory Authority (“FINRA”). Subject to receipt of FINRA clearance, we currently anticipate that the reverse stock split will be effective within the next several weeks. The reverse stock split was approved by our stockholders at the annual meeting of stockholders held on September 18, 2014. We intend to issue a press release at the effective time of the reverse stock split.
	As a result of the reverse stock split, every 40 shares of our common stock automatically will be combined into one issued and outstanding share of common stock without any change in the par value per share. Any fractional shares which might result from the reverse split will be rounded up to the next whole share. The reverse stock split will reduce the number of authorized shares of our common stock outstanding from approximately 154.8 million to 3.9 million. The reverse stock split will not impact the number of our authorized common shares. As a result, the proportion of common shares owned by our stockholders relative to the number of shares available for issuance will decrease, and the additional authorized shares of common stock will be available for issuance at such times and for such purposes as our board deems advisable without further action by our stockholders, except as required by law or regulation. We have no assurance that the reverse stock split will increase the market price or improve the marketability and liquidity of our common stock to a level that may make it more attractive to potential investors, or that a financing transaction otherwise can or will be accomplished in a timely manner, on favorable terms, or at all.
	If sources of capital are unavailable, or are available only on a limited basis or under unacceptable terms, we would 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; limit the scope of our continuing operations; or explore liquidation alternatives, including seeking protection from creditors through the application of the bankruptcy laws. 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.
	In June 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, concentrating our development effort on maintaining and enhancing our product offering, using technology to reduce product delivery costs, and consolidating certain non-core personnel positions. We expect to see the financial benefits of the new operating plan beginning in the third fiscal quarter ending November 30, 2014. 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.
	On June 2, 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. As of August 31, 2014, we had $1.8 million available under the credit facility based on our eligible accounts receivable balance. Under the terms of the Financing and Security Agreement (the “Agreement”), Fast Pay may, at its sole discretion, purchase our eligible accounts receivables with recourse. 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 is $12,500. Our obligations under the credit facility are secured by substantially all of our assets. On June 18, 2014 we used cash available under the credit facility to repay our loan facility with Silicon Valley Bank (“SVB”) and the SVB loan facility was terminated.
	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.

SHAREBASED_PAYMENTS_Tables

SHARE-BASED PAYMENTS (Tables)	6 Months Ended
	Aug. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Effect on results of operations of recording share-based compensation expense	'
		Three Months Ended						Six Months Ended
		August 31,						August 31,
		2014			2013			2014			2013
	Selling and marketing	$	202,975		$	252,765		$	393,185		$	591,131
	Technology and development		86,822			137,342			179,034			508,905
	General and administrative		395,351			436,706			704,792			778,679
	Total stock-based compensation expense	$	685,148		$	826,813		$	1,277,011		$	1,878,715
Assumptions used to value option grants	'
		Three Months Ended						Six Months Ended
		August 31,						August 31,
		2014			2013			2014			2013
	Expected dividends		0	%		0	%		0	%		0	%
	Expected term (in years)		3.5			3.5			3.5			3.5
	Weighted-average volatility		75	%		70	%		70	%		70	%
	Risk-free rate		1.12	%		0.51	%		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		12,242,549			0.32
	Exercised		-			-
	Forfeited and expired		(3,017,727	)		1.07
	Options outstanding at August 31, 2014		23,277,800		$	0.64			5
	Options vested and expected to vest at August 31, 2014		21,018,309		$	0.68			4.8
	Options exercisable at August 31, 2014		8,219,626		$	1.22			1.6
Estimated fair values of stock warrant awards issued to service providers and employees	'
		Three Months Ended						Six Months Ended
		August 31,						August 31,
		2014			2013			2014			2013
	Expected dividends		n/a			0	%		n/a			0	%
	Expected term (in years)		n/a			5			n/a			5
	Weighted-average volatility		n/a			70	%		n/a			70	%
	Risk-free rate		n/a			1.62	%		n/a			1.62	%
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		(948,343	)		2.85
	Warrants outstanding at August 31, 2014		26,237,813		$	1			3
	Warrants vested and expected to vest at August 31, 2014		26,237,813		$	1			3
	Warrants exercisable at August 31, 2014		25,754,479		$	1			3
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 August 31, 2014		4,800,000		$	0.23
	Expected to vest after August 31, 2014		4,800,000		$	0.23

GOODWILL_AND_INTANGIBLE_ASSETS1

GOODWILL AND INTANGIBLE ASSETS (Tables)	6 Months Ended
	Aug. 31, 2014
Notes to Financial Statements	'
Changes in the carrying amount of goodwill	'
	Balance as of February 28, 2014:	$	35,060,183
	Impairment		(35,060,183	)
	Balance as of August 31, 2014:	$	-
Gross carrying value of components of intangible assets and accumulated amortization	'
					As of August 31, 2014
		Weighted Average Amortization Period			Gross Carrying Amount		Accumulated Amortization		Impairment Loss		Net Carrying Value
		(In months)
	Indefinite Lived Intangible:
	Trade name	Indefinite			$	8,700,000	$	-	$	3,930,000	$	4,770,000
	Definite Lived Intangible:
	Patent litigation		84			4,367,399		2,208,105		2,159,294		-
	Patents		120			717,846		160,547		-		557,299
	Acquired technology		60			7,270,000		4,630,000		-		2,640,000
	Customer relationships		60-72			12,850,000		7,951,458		-		4,898,542
	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	$	17,301,815	$	6,089,294	$	12,865,841
					As of February 28, 2014
		Weighted Average Amortization Period			Gross Carrying Amount		Accumulated Amortization		Transferred from Held for Sale		Impairment Loss		Net Carrying Value
		(In months)
	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	$	1,964,588
	2016		3,830,218
	2017		1,920,843
	2018		70,843
	2019		70,843
	Thereafter		238,506
	Total	$	8,095,841

ORGANIZATION_AND_BASIS_OF_PRES2

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) (USD $)	6 Months Ended
	Aug. 31, 2014	Feb. 28, 2014
	Integer
Notes to Financial Statements	'	'
Delivered campaigns	'400,000	'
Renewal rate	90.00%	'
Patents owned	23	'
Accumulated deficit	($184,999,066)	($133,648,333)
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	'
Authorized shares, common stock	3,900,000	'
Available under credit facility	$1,800,000	'

SHAREBASED_PAYMENTS_Details

SHARE-BASED PAYMENTS (Details) (USD $)	3 Months Ended		6 Months Ended
	Aug. 31, 2014	Aug. 31, 2013	Aug. 31, 2014	Aug. 31, 2013
Total stock option and warrant expense	$685,148	$826,813	$1,277,011	$1,878,715
Selling and Marketing Expense [Member]	'	'	'	'
Total stock option and warrant expense	202,975	252,765	393,185	591,131
Technology and development [Member]	'	'	'	'
Total stock option and warrant expense	86,822	137,342	179,034	508,905
General and Administrative Expense [Member]	'	'	'	'
Total stock option and warrant expense	$395,351	$436,706	$704,792	$778,679

SHAREBASED_PAYMENTS_Details_1

SHARE-BASED PAYMENTS (Details 1)	3 Months Ended		6 Months Ended
	Aug. 31, 2014	Aug. 31, 2013	Aug. 31, 2014	Aug. 31, 2013
Warrants issued	'	'	'	'
Expected dividends	'	0.00%	'	0.00%
Expected term (in years)	'	'5 years	'	'5 years
Weighted-average volatility	'	70.00%	'	70.00%
Risk-free rate	1.12%	0.51%	1.01%	0.51%

SHAREBASED_PAYMENTS_Details_2

SHARE-BASED PAYMENTS (Details 2) (USD $)	3 Months Ended	6 Months Ended
	Aug. 31, 2013	Aug. 31, 2014	Aug. 31, 2013
Share-Based Payments Details 2	'	'	'
Options outstanding beginning	'	14,052,978	'
Granted	'	12,242,549	'
Exercised	'	'	'
Forfeited or expired	'	-3,017,727	'
Options outstanding ending	'	23,277,800	'
Options vested and expected to vest	'	21,018,309	'
Options exercisable	'	8,219,626	'
Weighted Average Exercise Price Beginning	'	$1.02	'
Granted	'	$0.32	'
Exercised	'	'	'
Forfeited or expired	'	$1.07	'
Weighted Average Exercise Price Ending	'	$0.64	'
Weighted Average Exercise Price vested and expected to vest	'	$0.68	'
Weighted Average Exercise Price Exercisable	'	$1.22	'
Average remaining contractual term, beginning of period	'	'2 years 10 months 24 days	'
Average remaining contractual term, end of period	'5 years	'	'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		6 Months Ended
	Aug. 31, 2014	Aug. 31, 2013	Aug. 31, 2014	Aug. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'	'	'
Expected dividends	'	0.00%	'	0.00%
Expected term (in years)	'	'5 years	'	'5 years
Weighted-average volatility	'	70.00%	'	70.00%
Risk-free rate	'	1.62%	'	1.62%

SHAREBASED_PAYMENTS_Details_4

SHARE-BASED PAYMENTS (Details 4) (USD $)	3 Months Ended	6 Months Ended
	Aug. 31, 2013	Aug. 31, 2014	Aug. 31, 2013	Aug. 31, 2014	Feb. 28, 2014
				Warrant [Member]	Warrant [Member]
Options outstanding beginning	'	14,052,978	'	27,186,156	'
Granted	'	12,242,549	'	'	'
Exercised	'	'	'	'	'
Forfeited or expired	'	-3,017,727	'	-373,343	'
Options outstanding ending	'	23,277,800	'	26,812,813	'
Options vested and expected to vest	'	21,018,309	'	26,812,813	'
Options exercisable	'	8,219,626	'	26,216,982	26,477,822
Weighted Average Exercise Price Beginning	'	$1.02	'	$1.05	'
Granted	'	$0.32	'	'	'
Exercised	'	'	'	'	'
Forfeited or expired	'	$1.07	'	$2.15	'
Weighted Average Exercise Price Ending	'	$0.64	'	$1.05	'
Weighted Average Exercise Price vested and expected to vest	'	$0.68	'	$1.05	'
Weighted Average Exercise Price Exercisable	'	$1.22	'	$1.05	$1.07
Average remaining contractual term, beginning of period	'	'	'	'3 years 4 months 24 days	'
Average remaining contractual term, end of period	'5 years	'	'5 years	'	'
Average remaining contractual term vested and expected to vest	'	'4 years 9 months 18 days	'	'3 years 2 months 1 day	'
Average remaining contractual term exercisable	'	'1 year 7 months 6 days	'	'3 years 2 months 1 day	'

SHAREBASED_PAYMENTS_Details_5

SHARE-BASED PAYMENTS (Details 5) (USD $)	6 Months Ended
	Aug. 31, 2014
Granted	12,242,549
Vested	'
Forfeited	-3,017,727
Granted	$0.32
Exercised	'
Forfeited or expired	$1.07
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 $)	6 Months Ended
	Aug. 31, 2014	Feb. 28, 2014
Shares outstanding	23,277,800	14,052,978
Stock Options [Member]	'	'
Unrecognized share-based payment expense	$1,200,000	'
Weighted average expected life of share based payment expense	'1 year 4 months 24 days	'
Aggregate intrinsic value of the exercisable options	0	'
Aggregate intrinsic value of the exercisable options, Per share	$0.08	'
Exercise prices of options outstanding, Lower limit	$0.08	'
Exercise prices of options outstanding, upper limit	$3.90	'
Weighted average fair value of options granted	$0.11	'
Unrecognized compensation cost	1,200,000	'
Warrant [Member]	'	'
Shares outstanding	26,812,813	27,186,156
Unrecognized share-based payment expense	700,586	'
Weighted average expected life of share based payment expense	'1 year 4 months 24 days	'
Aggregate intrinsic value of the exercisable options	'	'
Aggregate intrinsic value of the exercisable options, Per share	$0.08	'
Exercise prices of options outstanding, Lower limit	$0.39	'
Exercise prices of options outstanding, upper limit	$4	'
Unrecognized compensation cost	$700,586	'
2010 Incentive Plan [Member]	'	'
Authorized for issuance	15,000,000	'
Shares outstanding	9,600,000	'
2014 Equity Plan [Member]	'	'
Shares outstanding	9,600,000	'

NET_LOSS_PER_SHARE_Details_Nar

NET LOSS PER SHARE (Details Narrative)	6 Months Ended
	Aug. 31, 2014	Aug. 31, 2013
Option [Member]	'	'
Anti-dilutive securities excluded from computation of loss per share	8,200,000	9,800,000
Warrant [Member]	'	'
Anti-dilutive securities excluded from computation of loss per share	25,800,000	18,490,000
Nonvested Equity Securities [Member]	'	'
Anti-dilutive securities excluded from computation of loss per share	4,800,000	0

GOODWILL_AND_INTANGIBLE_ASSETS2

GOODWILL AND INTANGIBLE ASSETS (Details) (USD $)

Aug. 31, 2014

Feb. 28, 2014

Aug. 31, 2014

Feb. 28, 2014

Aug. 31, 2014

Feb. 28, 2014

Aug. 31, 2014

Feb. 28, 2014

Aug. 31, 2014

Feb. 28, 2014

Aug. 31, 2014

Feb. 28, 2014

Aug. 31, 2014

Feb. 28, 2013

Aug. 31, 2014

Feb. 28, 2014

Aug. 31, 2014

Feb. 28, 2014

Aug. 31, 2014

Feb. 28, 2014

Aug. 31, 2014

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

17,301,815

15,050,440

2,208,105

1,971,568

160,547

125,125

4,630,000

3,919,750

7,951,458

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

6,089,294

3,116,746

2,159,294

87,975

'

3,028,771

'

'

'

'

'

'

'

'

'

'

'

'

'

'

3,930,000

'

Net Carrying Value

$12,865,841

$21,203,081

'

$2,392,403

$557,299

$592,720

$2,640,000

$3,350,250

$4,898,542

$6,167,708

'

'

'

'

'

'

'

'

'

'

$4,770,000

$4,770,000

GOODWILL_AND_INTANGIBLE_ASSETS3

GOODWILL AND INTANGIBLE ASSETS (Details 1) (USD $)	Aug. 31, 2014
Goodwill And Intangible Assets Details 1	'
Remainder of Fiscal Year 2015	$1,964,588
2016	3,830,218
2017	1,920,843
2018	70,843
2019	70,843
Thereafter	238,506
Total	$8,095,841

GOODWILL_AND_INTANGIBLE_ASSETS4

GOODWILL AND INTANGIBLE ASSETS (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Aug. 31, 2014	Aug. 31, 2013	Aug. 31, 2014	Aug. 31, 2013
Goodwill And Intangible Assets Details Narrative	'	'	'	'
Impairment loss	$35,060,183	'	$35,060,183	'
Fair value of tradename	4,800,000	'	4,800,000	'
Impairment of tradename	3,900,000	'	3,900,000	'
Hipcricket trade name infinite life, value	4,800,000	'	4,800,000	'
Amortization of intangible assets	1,200,000	1,000,000	2,300,000	2,400,000
Capitalized patent litigation impairment costs	'	'	$2,200,000	'

CONTINGENCIES_Details_Narrativ

CONTINGENCIES (Details Narrative) (USD $)	6 Months Ended
	Aug. 31, 2014
Employment Agreement amount due to Mr. Virgin	$412,000
ShaubWilliamsLLP [Member]	'
Pending litigation amount	$2,249,686

CREDIT_FACILITIES_Details_Narr

CREDIT FACILITIES (Details Narrative) (USD $)	6 Months Ended
	Aug. 31, 2014
Credit Facilities Details Narrative	'
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%
Available under Credit Facility based on accounts receivables balance	$1,800,000

CONCENTRATION_OF_RISK_Details_

CONCENTRATION OF RISK (Details Narrative)	6 Months Ended
	Aug. 31, 2014	Aug. 31, 2013
Three Customers [Member]	'	'
Customers accounted accounts receivables	39.00%	24.00%
Largest Customer [Member]	'	'
Customers accounted accounts receivables	30.00%	'
Largest Customers [Member]	'	'
Customers accounted accounts receivables	'	8.00%
Customer One [Member]	'	'
Revenue major customer percentage	9.00%	7.00%
Customer Two [Member]	'	'
Revenue major customer percentage	7.00%	6.00%
Customer Three [Member]	'	'
Revenue major customer percentage	5.00%	5.00%
No Other Customer [Member]	'	'
Revenue major customer percentage	5.00%	5.00%