MetaStat (MTST) 10-Q 15 Oct 15 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Aug. 31, 2015	Oct. 14, 2015
Document And Entity Information
Entity Registrant Name	MetaStat, Inc.
Entity Central Index Key	1,404,943
Document Type	10-Q
Document Period End Date	Aug. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--02-29
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,855,423
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016
Trading symbol	MTST

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Aug. 31, 2015	Feb. 28, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 1,087,982	$ 257,820
Notes receivable	175,000
Prepaid expenses	186,727	$ 38,748
Total Current Assets	1,449,709	296,568
Equipment (net of accumulated depreciation of $121,864 and $96,089, respectively)	542,212	526,606
Refundable deposits	42,100	278,952
TOTAL ASSETS	2,034,021	1,102,126
Current liabilities
Accounts payable	265,826	293,152
Accrued expenses	$ 266,991	4,565
Current portion of capital lease		$ 99,965
Note payable (net of discount $453,793)	$ 977,081
Accrued interest payable	8,000	$ 2,351
Accrued dividends on Series B Preferred Stock	46,441	16,767
Total Current Liabilities	$ 1,564,339	416,800
Capital lease		169,676
Derivative warrant liability	$ 250,644	273,000
TOTAL LIABILITIES	1,814,983	859,476
STOCKHOLDERS' EQUITY (DEFICIT)
Common Stock, ($0.0001 par value; 150,000,000 shares authorized; 1,855,423 and 1,831,483 shares issued and outstanding respectively)	185	183
Additional Paid-in-capital	21,278,693	18,965,529
Accumulated deficit	(21,059,927)	(18,723,149)
Total stockholders' equity	219,038	242,650
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	2,034,021	1,102,126
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT)
Convertible Preferred Stock: Series A convertible preferred stock ($0.0001 par value; 1,000,000 shares authorized; 874,257 and 874,257 shares issued and outstanding respectively); Series B convertible preferred stock ($0.0001 par value; 1,000 shares authorized; 633 and 229 shares issued and outstanding respectively)	$ 87	$ 87
Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT)
Convertible Preferred Stock: Series A convertible preferred stock ($0.0001 par value; 1,000,000 shares authorized; 874,257 and 874,257 shares issued and outstanding respectively); Series B convertible preferred stock ($0.0001 par value; 1,000 shares authorized; 633 and 229 shares issued and outstanding respectively)

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Aug. 31, 2015	Feb. 28, 2015
STOCKHOLDERS' EQUITY
Preferred stock, shares authorized	10,000,000	10,000,000
Accumulated depreciation	$ 121,864	$ 96,089
Convertible debentures, discount	$ 453,793
Common stock, par value	$ 0.0001	$ .0001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	1,855,423	1,831,483
Common stock, shares outstanding	1,855,423	1,831,483
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, par value	$ 0.0001	$ .0001
Preferred stock, shares issued	874,257	874,257
Preferred stock, shares outstanding	874,257	874,257
Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock, shares authorized	1,000	1,000
Preferred stock, par value	$ .0001	$ .0001
Preferred stock, shares issued	633	229
Preferred stock, shares outstanding	633	229

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2015	Aug. 31, 2014	Aug. 31, 2015	Aug. 31, 2014
Revenue
Revenue
Total revenue
OPERATING EXPENSES
General & administrative	$ 1,076,032	$ 1,267,176	$ 2,024,928	$ 1,802,677
Research & development	317,968	479,635	537,294	732,717
Total Operating Expenses	1,394,000	1,746,811	2,562,222	2,535,394
OTHER EXPENSES (INCOME)
Interest expense	$ 40,444	217,860	$ 45,361	618,606
Deferred financing costs amortization		15,131		60,523
Other income, net	$ (139,967)	(522)	$ (140,136)	(3,159)
Beneficial conversion feature		$ 2,324,760		$ 2,324,760
Change in fair value of warrant liability	$ (36,400)		$ (172,900)
Change in fair value of put embedded in note payable	3,134		3,134
Settlement expense	660		39,097
Total Other Expenses (Income)	(132,129)	$ 2,557,229	(225,444)	$ 3,000,730
NET LOSS	(1,261,871)	(4,304,040)	(2,336,778)	(5,536,124)
Net loss	$ (1,261,871)	$ (4,304,040)	(2,336,778)	$ (5,536,124)
Deemed Dividend on Series B Preferred Stock issuance			(1,067,491)
Accrued dividends on Series B Preferred Stock	$ (69,205)		(124,467)
Loss attributable to common shareholders	$ (1,331,076)	$ (4,304,040)	$ (3,528,736)	$ (5,536,124)
Net loss per share, basic and diluted	$ (0.73)	$ (2.53)	$ (1.94)	$ (3.52)
Weighted average shares outstanding	1,823,003	1,702,820	1,816,136	1,572,171

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (2,336,778)	$ (5,536,124)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	48,657	18,572
Share based compensation	492,359	$ 359,000
Loss on assets held for sale	10,196
Loss on settlement of capital lease	$ 8,820
Common stock issued for services		$ 310,375
Accretion expense	$ 29,883	$ 539,319
Gain related to reimbursement of prior period research and development expenses ASET (Note 9)	$ (100,000)
Beneficial conversion feature		$ 2,324,759
Amortization of deferred financing costs		$ 60,523
Change in fair value of warrant liability	$ (172,900)
Change in fair value of put embedded in note payable	$ 3,134
Net changes in assets and liabilities
Other receivable		$ 20,000
Prepaid expenses	$ (40,729)	(35,452)
Refundable deposits	(2,100)	(278,952)
Accounts payable	(27,326)	135,843
Accrued expenses	226,676	49,753
Interest payable	5,649	63,712
NET CASH USED IN OPERATING ACTIVITIES	(1,854,459)	$ (1,968,672)
Cash Flows from Investing Activities
Proceeds received from settlement of capital lease	$ 2,897
Proceeds from sale of investment		$ 785,962
Purchase of equipment	$ (149,458)	(10,090)
Net cash used in (provided by) investing activities	(146,561)	775,872
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of notes	1,200,000	$ 615,000
Payment of debt issuance costs	$ (88,592)
Proceeds from issuance of common stock and warrants, net		$ 750,000
Re-purchase of common stock and warrants	$ (111,563)
Proceeds from issuance of Series B preferred stock and warrant, net	$ 1,945,244
Payment of convertible notes		$ (100,000)
Payment of short-term debt	$ (71,500)	$ (59,951)
Payment of capital lease obligation	(42,407)
NET CASH PROVIDED BY FINANCING ACTIVITIES	2,831,182	$ 1,205,049
Net increase in cash and cash equivalents	830,162	12,249
Cash and cash equivalents at the beginning of the period	257,820	483,408
Cash and cash equivalents at the end of the period	1,087,982	$ 495,657
Supplemental Disclosure of Non-Cash Financing Activities
Warrant liability associated with note payable	$ 150,544
Issuance on lease financing for fixed assets		$ 318,603
Securities held for sale exchanged for common stock and preferred shares		1,344,000
Common stock and warrants issued for conversion of debt		3,558,413
Accrued offering costs		29,999
Financing of insurance premium through short-term debt	$ 107,250	$ 93,840
Note receivable received for sale of assets	75,000
Warrants issued to placement agents	175,241
Series B Preferred PIK dividend	94,793
Series B Preferred Stock accrued dividends	124,467
Capital lease settled against deposit	$ 227,235

DESCRIPTION OF BUSINESS AND GOI

DESCRIPTION OF BUSINESS AND GOING CONCERN	6 Months Ended
	Aug. 31, 2015
Description Of Business And Going Concern
DESCRIPTION OF BUSINESS AND GOING CONCERN	MetaStat, Inc. (“we,” “us,” “our,” the “Company,” or “MetaStat”) is a pre-commercial molecular diagnostic company focused on the development and commercialization of novel diagnostics that provide oncologists with actionable information to optimize treatment strategies based on the specific nature or “metastatic potential” of each patients tumor. We believe cancer treatment strategies can be personalized and outcomes improved through new diagnostic tools that identify the aggressiveness and metastatic potential of primary tumors. The Company was incorporated on March 28, 2007 under the laws of the State of Nevada. Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, MetaStat Biomedical, Inc., a Delaware corporation and all significant intercompany balances have been eliminated by consolidation. These interim unaudited financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States and should be read in conjunction with, the Company’s audited consolidated financial statements and related footnotes for the year ended February 28, 2015 included in the Company’s Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (“SEC”) on May 28, 2015. These unaudited financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the Company’s financial position as of August 31, 2015 and its results of operations and cash flows for the interim periods presented and are not necessarily indicative of results for subsequent interim periods or for the full year. These interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and allowed by the relevant SEC rules and regulations; however, the Company believes that its disclosures are adequate to ensure that the information presented is not misleading. Certain amounts in prior periods have been reclassified to conform to current presentation. In previous filings, the Company has reported as a “Development Stage Entity”. In June 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-10, “Development Stage Entities (Topic 915), Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, "Consolidation” (“ASU 2014-10”). The amendments in ASU 2014-10 remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from GAAP. In addition, the amendments eliminate the requirements for development stage entities to: (i) present inception-to-date information in the statements of income, cash flows, and shareholder equity; (ii) label the financial statements as those of a development stage entity; (iii) disclose a description of the development stage activities in which the entity is engaged; and (iv) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The presentation and disclosure requirements in ASC Topic 915, "Development Stage Entities" are no longer required for interim and annual reporting periods beginning after December 15, 2014, however, early adoption is permitted. The Company elected to early adopt the presentation and disclosure provisions of ASU 2014-10 effective August 31, 2014. Reverse Stock Split On October 8, 2015, we effected a 1-for-15 reverse stock split of our common stock, whereby every 15 shares of issued and outstanding common stock became 1 share of newly issued and outstanding common stock. The reverse stock split was approved by our stockholders at a special stockholders meeting on June 22, 2015. The purpose of the reverse stock split was to qualify for the minimum stock price listing requirement for a planned up-listing to a national securities exchange including the NASDAQ Capital Market or NYSE Market. All reference in the document to the number of shares, price per share and weighted average number of shares outstanding of our common stock prior to the reverse stock split have been adjusted to reflect the reverse stock split on a retroactive basis. Management Changes On June 17, 2015, Oscar L. Bronsther, M.D. resigned as our Chief Executive Officer and Chief Medical Officer. Dr. Bronsther retained his position as a member of our board of directors ("Board") and has entered into a consulting agreement to become Chairman of our Scientific and Clinical Advisory Board. In connection with Dr. Bronsther’s resignation as Chief Executive Officer and Chief Medical Officer, the Company entered into a standard separation and release agreement with Dr. Bronsther. In recognition of his contribution to the Company over the last 3 years, Dr. Bronsther was granted options to purchase 26,667 stock options at an exercise price of $8.25 per share, which options vested immediately. Dr. Bronsther shall have the right to exercise any of such options for a period of 180 days following the expiration or termination of the consulting agreement. The Company also entered into a consulting agreement with Dr. Bronsther to serve as the Chairman of the Company’s Scientific and Clinical Advisory Board. The agreement has a term of 12 months and may be terminated by either party upon 30 days prior written notice. In the event of any termination by the Company for any reason, Dr. Bronsther shall be entitled to all compensation under the agreement as if he remained a consultant for the remainder of the agreement term. The agreement provides that the Company pay Dr. Bronsther $14,444 per month in cash (payable over 18 months) along with reimbursement of all reasonable and necessary expenses. In addition, Dr. Bronsther will be granted ten-year options to purchase 10,000 stock options at an exercise price per share of $8.25, which options vest upon achieving certain milestones, including: (i) securing tumor cohort(s) for the purposes of conducting analytical and clinical validation studies, (ii) closing $1 million of new retail investors introduced by Dr. Bronsther, and (iii) recruitment of key opinion leaders to become members of the Scientific and Clinical Advisory Board. On June 17, 2015, we entered into an employment agreement with Douglas A. Hamilton to join us as President and Chief Executive Officer for a term of two years. The employment agreement provides for a base salary of $260,000 and an annual milestone bonus equal to 150% of Mr. Hamilton’s compensation thereunder, based on his attainment of certain financial, clinical development, and/or business milestones to be established annually by the Company’s Board or Compensation Committee. Mr. Hamilton was also granted ten-year options to purchase 60,000 shares of the Company’s common stock at an exercise price of $8.25 per share. 10,000 options vested immediately and the remaining 50,000 vest upon achieving various milestones including: (i) up-listing of the Company’s common stock to a national securities exchange, (ii) CLIA certification of the Company’s clinical reference laboratory, (iii) achieving a market capitalization of $100 million for 30 consecutive days, (iv) first commercial product sales, and (v) achieving a sales threshold of $25 million over 12 consecutive months. Going Concern The accompanying unaudited 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. The Company has experienced net losses and negative cash flows from operations since its inception. The Company has sustained cumulative losses of $21,059,927 as of August 31, 2015 and has not generated revenues or positive cash flows from operations. The continuation of the Company as a going concern is dependent upon continued financial support from its shareholders, the ability of the Company to obtain necessary equity and/or debt financing to continue operations, and the attainment of profitable operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The Company cannot make any assurances that additional financings will be available to it and, if available, completed on a timely basis, on acceptable terms or at all. If the Company is unable to complete a debt or equity offering, or otherwise obtain sufficient financing when and if needed, it would negatively impact its business and operations and could also lead to the reduction or suspension of the Company’s operations and ultimately force the Company to cease operations. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

CAPITAL STOCK

CAPITAL STOCK	6 Months Ended
	Aug. 31, 2015
Equity [Abstract]
CAPITAL STOCK	The Company has authorized 160,000,000 shares of capital stock, par value $0.0001 per share, of which 150,000,000 are shares of common stock and 10,000,000 are shares of “blank-check” preferred stock. Our Board is empowered, without stockholder approval, to issue preferred stock with dividend, liquidation, conversion, voting or other rights, which could adversely affect the voting power or other rights of the holders of common stock. The preferred stock could be utilized as a method of discouraging, delaying or preventing a change in control. Common Stock The holders of our common stock are entitled to one vote per share. In addition, the holders of our common stock will be entitled to receive ratably such dividends, if any, as may be declared by our Board out of legally available funds; however, the current policy of our Board is to retain earnings, if any, for operations and growth. Upon liquidation, dissolution or winding-up, the holders of our common stock will be entitled to share ratably in all assets that are legally available for distribution. Series A Convertible Preferred Stock Pursuant to the Certificate of Designation of Rights and Preferences of the Series A Preferred Stock (the “Series A Certificate of Designation”), the terms of the Series A Preferred Stock are as follows: Ranking The Series A Preferred Stock will rank senior to our common stock with respect to distributions of assets upon the liquidation, dissolution or winding up of the Company. Dividends The Series A Preferred Stock is not entitled to any dividends. Liquidation Rights In the event of any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of the Series A Preferred Stock shall be entitled to receive out of the assets of the Company, whether such assets are capital or surplus, for each share of Series A Preferred Stock an amount equal to the fair market value as determined in good faith by the Board. Voluntary Conversion; Anti-Dilution Adjustments Each fifteen (15) shares of Series A Preferred Stock shall be convertible into one share of common stock (the “Series A Conversion Ratio”). The Series A Conversion Ratio is subject to customary adjustments for issuances of shares of common stock as a dividend or distribution on shares of the common stock, or mergers or reorganizations. Voting Rights The Series A Preferred Stock has no voting rights. The common stock into which the Series A Preferred Stock is convertible shall, upon issuance, have all of the same voting rights as other issued and outstanding common stock, and none of the rights of the Series A Preferred Stock. Series B Convertible Preferred Stock Pursuant to the Certificate of Designation of Rights and Preferences of the Series B Preferred Stock (the “Series B Certificate of Designation”), the terms of the Series B Preferred Stock are as follows: Ranking The Series B Preferred Stock will rank senior to the Company’s Series A Convertible Preferred Stock and common stock with respect to distributions of assets upon the liquidation, dissolution or winding up of the Company. Stated Value Each share of Series B Preferred Stock will have a stated value of $5,500, subject to adjustment for stock splits, combinations and similar events (the “Stated Value”). Dividends Cumulative dividends on the Series B Preferred Stock accrue at the rate of 8% of the Stated Value per annum, payable quarterly on March 31, June 30, September 30, and December 31 of each year, from and after the date of the initial issuance. Dividends are payable in kind in additional shares of Series B Preferred Stock valued at the Stated Value or in cash at the sole option of the Company. At August 31, 2015 and February 28, 2015, the dividend payable to the holders of the Series B Preferred stocks amounted to approximately $46,441 and $16,767, respectively. During the three and six months ended August 31, 2015, the Company issued 12.4175 and 17.2354 shares of Series B Preferred Stock, respectively, for payment of dividends amounting to $68,295 and $94,793. Liquidation Rights If the Company voluntarily or involuntarily liquidates, dissolves or winds up its affairs, each holder of the Series B Preferred Stock will be entitled to receive out of the Company’s assets available for distribution to stockholders, after satisfaction of liabilities to creditors, if any, but before any distribution of assets is made on the Series A Preferred Stock or common stock or any of the Company’s shares of stock ranking junior as to such a distribution to the Series B Preferred Stock, a liquidating distribution in the amount of the Stated Value of all such holder’s Series B Preferred Stock plus all accrued and unpaid dividends thereon. At August 31 and February 28, 2015, the value of the liquidation preference of the Series B Preferred stocks aggregated to approximately $3,529,000 and $1,274,000, respectively. Conversion; Anti-Dilution Adjustments Each share of Series B Preferred Stock will be convertible at the holder’s option into common stock in an amount equal to the Stated Value plus accrued and unpaid dividends thereon through the conversion date divided by the then applicable conversion price. The initial conversion price is $8.25 per share (the “Series B Conversion Price”) and is subject to customary adjustments for issuances of shares of common stock as a dividend or distribution on shares of common stock, or mergers or reorganizations, as well as “full ratchet” anti-dilution adjustments for future issuances of other Company securities (subject to certain standard carve-outs) at prices less than the applicable Series B Conversion Price. The Series B Preferred Stock is subject to automatic conversion (the “Mandatory Conversion”) at such time when the Company’s common stock has been listed on a national stock exchange such as the NASDAQ, New York Stock Exchange or NYSE MKT; provided, that, on the Mandatory Conversion date, a registration statement providing for the resale of the shares of common stock underlying the Series B Preferred Stock is effective. In the event of a Mandatory Conversion, each share of Series B Preferred Stock will convert into the number of shares of common stock equal to the Stated Value plus accrued and unpaid dividends divided by the applicable Series B Conversion Price. Voting Rights On March 27, 2015, the holders of the Series B Preferred Stock entered into an Amended and Restated Series B Preferred Purchase Agreement, whereby the Company filed an Amended and Restated Series B Preferred Certificate of Designation. The Amended and Restated Series B Preferred Certificate of Designation provides that the holders of the Series B Preferred Stock shall be entitled to the number of votes equal to the number of shares of common stock into which such Series B Preferred Stock could be converted for purposes of determining the shares entitled to vote at any regular, annual or special meeting of stockholders of the Company, and shall have voting rights and powers equal to the voting rights and powers of the common stock (voting together with the common stock as a single class). Most Favored Nation For a period of up to 30 months after March 31, 2015, if the Company issues any New Securities (as defined below) in a private placement or public offering (a “Subsequent Financing”), the holders of Series B Preferred Stock may exchange all of the Series B Preferred Stock at their Stated Value plus all Series A Warrants (as defined below) issued to the Series B Preferred Stock investors in the Series B Private Placement for the securities issued in the Subsequent Financing on the same terms of such Subsequent Financing. This right expires upon the earlier of (i) September 30, 2017 and (ii) the consummation of a bona fide underwritten public offering in which the Company receives aggregate gross proceeds of at least $5,000,000. “New Securities” means shares of the common stock, any other securities, options, warrants or other rights where upon exercise or conversion the purchaser or recipient receives shares of the common stock, or other securities with similar rights to the common stock, subject to certain standard carve-outs. See Note 3 for the accounting treatment of the Series B Preferred Stock.

EQUITY TRANSACTIONS

EQUITY TRANSACTIONS	6 Months Ended
	Aug. 31, 2015
Equity [Abstract]
EQUITY TRANSACTIONS	Issuances of common stock for services During the six months ended August 31, 2015, the Company issued an aggregate of 28,001 shares of common stock to consultants for services that vested immediately and 6,667 shares of common stock to a consultant for services that vests over 6 months. The weighted average fair value of these shares of common stock amounted to $4.96. During the six months ended August 31, 2014, the Company issued an aggregate of 20,001 shares of common stock to consultants for services that vested immediately and 10,836 shares of common stock to members of its Board that vested immediately. The weighted average fair value of these shares of common stock amounted to $15.74. During the six months ended August 31, 2015 and 2014, the Company recognized $208,475 and $310,375 of share-based compensation related to common stock issued for services, all of which was recognized into general and administrative expense. Settlement On April 1, 2015, the Company entered into a settlement agreement to settle a dispute with two affiliated security holders in which the Company paid $150,000, in exchange for the cancellation of all Company securities held by such parties, which included an aggregate of 10,728 shares of common stock, 1,667 common stock purchase warrants with an exercise price of $31.50 and 5,001 common stock purchase warrants with an exercise price of $22.50. Additionally, the Company reimbursed $3,000 of legal expenses to the two affiliated security holders. The Company recorded the fair value of the instruments as a reduction of equity as equity instruments were cancelled and recognized a settlement expense of $38,437 for the excess of the amount paid over the fair value of the cancelled equity instruments. Series B preferred stock financing – the Series B Private Placement The Company entered into an amended and restated securities purchase agreement (the “A&R Series B Purchase Agreement”) on March 27, 2015 and March 31, 2015 with a number of new and existing accredited investors (collectively, the “Series B Investors”) pursuant to which it sold $2,130,750 of Series B Preferred Stock convertible into common stock at $8.25 per share in a private placement (the “Series B Private Placement”). In addition, pursuant to the A&R Series B Purchase Agreement, the Company issued series A warrants (the “Series A Warrants”) to purchase up to 193,708 shares of common stock at an initial exercise price per share of $20.50 to the Series B Investors. The Series A Warrants expire on March 31, 2020. Pursuant to the closings of the Series B Private Placements in March 2015, the Company issued 387.4088 shares of Series B Preferred Stock convertible into 258,281 shares of common stock and Series A Warrants to purchase 193,708 shares of common stock for an aggregate purchase price of $2,130,750, of which $18,000 represents the exchange of stock-based compensation to a consultant that was to be settled in the form of shares of common stock but was actually settled with Series B Preferred Stock and Series A Warrants. As a result of the exchange, the Company recorded an additional $12,695 of stock-based compensation. In connection with the March 2015 closings of the Series B Private Placement, the placement agents were paid a total cash fee of $147,451 including expense allowances and reimbursements, and were issued an aggregate of 20,668 Series A Warrants. On the grant dates, the fair value of the placement agent warrants amounted to $158,441 and was recorded as a stock issuance cost. Net proceeds amounted to $1,945,244 after deducting offering expenses to be paid in cash, including the placement agent fees and legal fees and other expenses. Accounting for the Series B Preferred Stock The Company determined the Series B Preferred Stock should be classified as equity as it is not mandatorily redeemable, and there are no unconditional obligations in that (1) the Company must or may settle in a variable number of its equity shares and (2) the monetary value is predominantly (a) fixed, (b) varying with something other than the fair value of the Company’s equity shares or (c) varying inversely in relation to the Company’s equity shares. Because the Series B Preferred Stock contain certain embedded features that could affect the ultimate settlement of the Series B Preferred Stock, the Company analyzed the instrument for embedded derivatives that require bifurcation. The Company’s analysis began with determining whether the Series B Preferred Stock is more akin to equity or debt. The Company evaluated the following criteria/features in this determination: redemption, voting rights, collateral requirements, covenant provisions, creditor and liquidation rights, dividends, conversion rights and exchange rights. The Company determined that the preponderance of evidence suggests the Series B Preferred Stock was more akin to equity than to debt when evaluating the economic characteristics and risks of the entire Series B Preferred Stock, including the embedded features. The Company then evaluated the embedded features to determine whether their economic characteristics and risks were clearly and closely related to the economic characteristics and risks of the Series B Preferred Stock. Since the Series B Preferred Stock was determined to be more akin to equity than debt, and the underlying that causes the value of the embedded features to fluctuate would be the value of the Company’s common stock, the embedded features were considered clearly and closely related to the Series B Preferred Stock. As a result, the embedded features would not need to be bifurcated from the Series B Preferred Stock. Any beneficial conversion features related to the exercise of the Most Favored Nation exchange right or the application of the Mandatory Conversion provision will be recognized upon the occurrence of the contingent events based on its intrinsic value at the commitment date. Accounting for the Series A Warrants The Company concluded the freestanding Series A Warrants were indexed to the Company’s common stock and should be classified in stockholder’s equity, based on their relative fair value. Allocation of Proceeds of the Series B Private Placement on March 27 and 31, 2015 The $2,130,750 proceeds from the Series B Private Placement on March 27 and 31, 2015 were allocated to the Series B Preferred Stock and Series A Warrant instruments based on their relative fair values. The Series B Preferred Stock was valued on an as-if-converted basis based on the underlying common stock. The Series A Warrants were valued using the Black-Scholes model with the following weighted-average input at the time of issuance: expected term of 5.0 years based on their contractual life, volatility of 125% based on the Company’s historical volatility and risk free rate of 1.4% based on the rate of the 5-years U.S. treasury bill. After allocation of the proceeds, the effective conversion price of the Series B Preferred Stock was determined to be beneficial and, as a result, the Company recorded a non-cash deemed dividend of $1,067,491 equal to the intrinsic value of the beneficial conversion feature. The Series B Registration Rights Agreement In connection with the closing of the Series B Private Placement, the Company entered into an amended and restated registration rights agreement (the “A&R Series B Registration Rights Agreement”) with the Series B Investors, in which the Company agreed to file a registration statement (the “Registration Statement”) with the Securities and Exchange Commission ("SEC") to register for resale the shares of common stock underlying the Series B Preferred Stock, the Series A Warrants and the Series B Warrants within 30 calendar days of the final closing date of March 31, 2015 (the “Filing Date”), and to have the registration statement declared effective within 120 calendar days of the Filing Date. If the Registration Statement has not been filed with the SEC on or before the Filing Date, the Company shall, on the business day immediately following the Filing Date, and each 15th day thereafter, make a payment to the Series B Investors as partial liquidated damages for such delay (together, the “Late Registration Payments”) equal to 2.0% of the purchase price paid for the Series B Preferred Stock then owned by the Series B Investors for the initial 15 day period and 1.0% of the purchase price for each subsequent 15 day period until the Registration Statement is filed with the SEC. Late Registration Payments will be prorated on a daily basis during each 15 day period and will be paid to the Series B Investors by wire transfer or check within five business days after the end of each 15 day period following the Filing Date. The Company filed the Registration Statement on Form S-1 with the SEC on April 10, 2015 and the Registration Statement was declared effective on July 29, 2015. As a result, no penalty was incurred. Common stock financing – the Qualified Financing On June 30, 2014, the Company issued 314,269 shares of common stock and 500,000 shares of Series A Convertible Preferred Stock to certain accredited investors that entered into a securities purchase agreement (the “Qualified Financing Purchase Agreement”), whereby the Company received aggregate gross proceeds of $5,735,427, of which $4,092,427 represents the automatic conversion of outstanding convertible promissory notes with principal amounts totaling $3,357,000 and related interest amounts as referenced in Note 4 below (the “Qualified Financing”). The net proceeds from this transaction amounted to $1,643,000. Included in the net proceeds is the receipt of $100,000 from an investor that was concurrently paid $100,000 for due diligence and legal fees by the Company. Approximately $1,000,000 of these proceeds was generated from the sale of marketable securities transferred to the Company by an investor (see Note 12). On July 14, 2014, the Company completed a second closing under the Qualified Financing Purchase Agreement whereby the Company issued 12,546 shares of common stock for an aggregate purchase price of $207,000.

NOTE PAYABLE

NOTE PAYABLE	6 Months Ended
	Aug. 31, 2015
Note Payable
NOTE PAYABLE	On July 31, 2015, the Company entered into a note purchase agreement (the “Note Purchase Agreement”) with one its existing institutional investors. Pursuant to the Note Purchase Agreement, the Company issued and sold a non-convertible promissory note in the principal amount of $1,200,000 (the “Note”) and a warrant (the “Warrant”) to purchase 43,636 shares of the Company’s common stock. Proceeds from the private placement (the “Private Placement”) of the Note and Warrant will be used for working capital and general corporate purposes. The Note matures on July 30, 2016, accrues interest at a rate of eight percent (8%) per annum and may be prepaid by the Company at any time prior to the maturity date without penalty or premium. The investor has the right at its option to exchange (the “Voluntary Exchange”) the outstanding principal balance of the Note plus the Conversion Interest Amount (as defined below) into such number of securities to be issued in the Public Offering (as defined below). Upon effectuating such Voluntary Exchange, the Investor shall be deemed to be a purchaser in the Public Offering. “Public Offering” means a registered offering of equity or equity-linked securities resulting in gross proceeds of at least $5,000,000 to the Company; and “Conversion Interest Amount” means interest payable in an amount equal to all accrued but unpaid interest assuming the Note had been held from the issuance date to the maturity date. In the event the Company completes a Public Offering and the Investor elected not to effectuate the Voluntary Exchange, then the Company shall promptly repay the outstanding principal amount of the Note plus all accrued and unpaid interest following completion of the Public Offering. The Company evaluated the Voluntary Exchange provision, which provides for settlement of the Note at an 8% premium to the Note’s stated principal amount, in accordance with ASC 815-15-25. The Voluntary Exchange provision is a contingent put that is not clearly and closely related to the debt host instrument and therefore was initially separately measured at fair value and will be measured at fair value on an ongoing basis, with changes in fair value recognized in current operations. The proceeds of the Private Placement were first allocated to the fair value of the Warrant in the amount of $150,544 and to the fair value of the Voluntary Exchange provision in the amount of $227,740, with the difference of $821,716 representing the initial carrying value of the Note. An additional $105,392 of debt issuance cost was recorded as additional debt discount at issuance. The Note’s discount is amortized to interest expense over the term of the debt. The Company amortized approximately $8,000 to interest expense in the quarter ended August 31, 2015. Additionally, the Company recognized a loss of approximately $3,134 in the quarter ended August 31, 2015 due to the increase in estimated fair value of the Voluntary Exchange provision during the quarter ended August 31, 2015. The Warrant contains an adjustment clause affecting its exercise price, which may be reduced if the Company issues shares of common stock or convertible securities at a price below the then-current exercise price of the Warrants. As a result, we determined that the Warrant was not indexed to the Company’s common stock and therefore should be recorded as a derivative liability. The detachable Warrant issued in connection with the Note was recorded as a debt discount based on its fair value (See Note 10 for fair value measurement). The adjustment clause lapses upon listing of the Company’s common stock on a National Trading Market (as defined in the warrant agreement). Note Payable Discount Voluntary Exchange Feature Note Payable, Net February 28, 2015 balance $ - $ - $ - $ - Issuance of Note 1,200,000 (483,676 ) 227,740 944,064 Amortization of debt discount - 29,883 - 29,883 Change in value - - 3,134 3,134 August 31, 2015 balance $ 1,200,000 $ (453,793 ) $ 230,874 $ 977,081

CONVERTIBLE NOTES

CONVERTIBLE NOTES	6 Months Ended
	Aug. 31, 2015
Debt Disclosure [Abstract]
CONVERTIBLE NOTES	2013 Notes From January to May 2013, the Company issued convertible promissory notes in the aggregate principal amount of $1,487,000, originally due December 31, 2013 (the “2013 Notes”). On December 31, 2013, the Company entered into certain amendments to its outstanding 2013 Notes with the holders of an aggregate of $1,387,000 principal amount of 2013 Notes (the “Amendments”). The Company determined the Amendments constituted a substantive modification of the 2013 Notes and, as a result, we accounted for this transaction as extinguishment of debt instrument and recorded the amended 2013 Notes at their fair value, amounted to $1,243,482, based on level 2 inputs, specifically prices for a subsequent issuance of comparable debt instruments. During the three and six months ended August 31 2014, the Company recorded $39,248 and $159,647 in interest expense as accretion related to the amended 2013 Notes. 2014 Notes During the six months ended August 31, 2014, the Company issued Additional 2014 Notes (as defined below) in the aggregate principal amount of $615,000 with 1,668 detachable warrants that can be exercised at $31.50 per share within a four-year period and 10,339 detachable warrants that can be exercised at $22.50 per share within a five-year period. The promissory notes originally due June 30 and August 30, 2014 (the “2014 Notes”) bore interest at the rate of 8% per annum and ranked pari passu Debt Discount and beneficial conversion feature The detachable warrants issued in connection with the convertible notes were recorded as a debt discount based on their relative fair value. The relative fair value of the warrants and the intrinsic value of the beneficial conversion feature for the convertible notes issued during the six months ended August 31, 2014 totaled $173,035 and was recorded as a discount to the convertible debt. During the three and six months ended August 31, 2014, $157,998 and $379,672, respectively, was recognized in interest expense as accretion expense related to the convertible notes debt discount. Automatic Exchange of the Convertible Notes On June 30, 2014, the Company completed the Qualified Financing whereby all outstanding convertible notes with an aggregate principal amount totaling $3,357,000 were automatically exchanged into the securities offered in the Qualified Financing. The exchange also included approximately $201,000 of accrued interest. As of August 31, 2015, the Company has no convertible notes outstanding. On June 30, 2014, as a result of the exchange of the convertible notes in the Qualified Financing, the Company recorded an expense amounting to $2,324,760 related to the recognition of a contingent beneficial conversion feature. The expense was measured at the intrinsic value of the beneficial conversion feature for each of the convertible notes at their respective commitment date.

STOCK OPTIONS

STOCK OPTIONS	6 Months Ended
	Aug. 31, 2015
Stock Options
STOCK OPTIONS	On June 22, 2015, our stockholders approved amending our Amended and Restated 2012 Omnibus Securities and Incentive Plan (the “2012 Incentive Plan”) to increase the number of authorized shares of common stock reserved for issuance under the 2012 Incentive Plan to a number not to exceed fifteen percent (15%) of the issued and outstanding shares of common stock on an as converted primary basis (the “As Converted Primary Shares”) on a rolling basis. For calculation purposes, the As Converted Primary Shares shall include all shares of common stock and all shares of common stock issuable upon the conversion of outstanding preferred stock and other convertible securities, but shall not include any shares of common stock issuable upon the exercise of options, warrants and other convertible securities issued pursuant to the 2012 Incentive Plan. The number of authorized shares of common stock reserved for issuance under the 2012 Incentive Plan shall automatically be increased concurrently with the Company’s issuance of fully paid and non- assessable shares of As Converted Primary Shares. Shares shall be deemed to have been issued under the 2012 Incentive Plan solely to the extent actually issued and delivered pursuant to an award under the 2012 Incentive Plan. During the six months ended August 31, 2015, the Company issued options to purchase 6,667 shares of common stock at $11.25 per share to a consultant. The options vest upon achieving certain performance-based milestones and expire on March 1, 2025. The Company will measure the fair value of these options with vesting contingent on achieving certain performance-based milestones and recognize the compensation expense when vesting becomes probable. The fair value will be measured using a Black-Scholes model. During the six months ended August 31, 2015, 1,667 of these options vested based on achieving certain milestones and the Company recognized $8,000 in stock-based compensation in connection with these options. During the six months ended August 31, 2015, the Company issued options to purchase 80,004 shares of common stock at $8.25 per share to non-executive members of its Board. The options vest in three equal installments on each of May 18, 2016, May 18, 2017, and May 18, 2018 and expire on May 18, 2025. These options had a total fair value of $388,000 as calculated using the Black-Scholes model. During the three and six months ended August 31, 2015, the Company recognized $59,070 and $68,086 of compensation expense related to these options. On June 30, 2015, the Company issued options to purchase an aggregate of 5,001 shares of common stock at $8.25 per share to employees. The options vest over time through September 2017. During the three and six months ended August 31, 2015, the Company issued options to purchase 60,000 shares of common stock at $8.25 per share to our Chief Executive Officer. Certain of these options vest upon achieving certain performance-based or market-based milestones and expire on June 17, 2025. The fair value of these options on the grant date was $221,100. The Company will recognize the compensation expense when vesting becomes probable. During the three and six months ended August 31, 2015, 10,000 of these options vested immediately and the Company recognized $34,100 in stock-based compensation in connection with these options. Additionally, the Company recognized $2,593 during the three and six months ended August 31, 2015 in connection with 10,000 options with market-based vesting conditions. During the three and six months ended August 31, 2015, the Company issued options to purchase 26,667 shares of common stock at $8.25 per share to our former Chief Executive Officer and Chief Medical Officer. The options vested immediately. These options had a total fair value of $66,417 as calculated using the Black-Scholes model. For the three and six months ended August 31, 2015, the Company recognized $44,267 of stock-based compensation for these options. The Company also modified the expiration date of certain vested option previously granted to our former Chief Executive Officer and Chief Medical Officer, which resulted in an additional compensation expense of $22,150 being recorded during the three and six months ended August 31, 2015. During the three and six months ended August 31, 2015, the Company issued options to purchase 10,000 shares of common stock at $8.25 per share to a consultant. The options vest upon achieving certain performance-based milestones and expire on June 17, 2025. The Company will measure the fair value of these options with vesting contingent on achieving certain performance-based milestones and recognize the compensation expense when vesting becomes probable. The fair value will be measured using a Black-Scholes model. The weighted average inputs to the Black-Scholes model used to value the stock options granted during the six months ended August 31, 2015 are as follows: Expected volatility 113.47 - 123.55% Expected dividend yield 0.00% Risk-free interest rate 0.67% - 2.27% Expected Term 6.07 years During the six months ended August 31, 2015, 534 options previously issued to a member of the Company’s Scientific and Clinical Advisory Board were mutually cancelled by the parties. The member will continue to serve on the Company’s Scientific and Clinical Advisory Board without any equity compensation. For the three and six months ended August 31, 2014, 14,667 non-employee performance-based stock options vested with a value of $232,000. These options vested based on the completion of a trial and subsequent publication of results on June 3, 2014. The Company recognized $232,000 in stock option expense for the three and six months ended August 31, 2014. For the three and six months ended August 31, 2014, an aggregate of 6,000 employee performance-based stock options vested with a value of $127,000. These options vested once certain milestones were completed by the employees, which included the completion of the research plan, lab setup, essential hires and investor presentation for the therapeutics program. The Company recognized $127,000 in stock option expense for the three and six months ended August 31, 2014. For the three and six months ended August 31, 2014, 6,667 stock options issued to certain members of our Board with an exercise price equal to $48.75 were cancelled in an effort to reduce the fully-diluted share count and increase number of available stock options. The Company determined that the transaction was not considered to be a modification of these stock-based awards. All stock-based compensation related to these options were recognized in the fiscal year ended February 28, 2014 and have not been reversed. For the three and six months ended August 31, 2015, the Company recognized $183,233 and $252,168, respectively, of compensation expense related to stock options, of which $159,002 and $227,937, respectively, was recognized in general and administrative expenses and $24,231 and $24,231, respectively, in research and development expenses. For the three and six months ended August 31, 2014, the Company recognized $359,000 and $359,000 of compensation expense related to stock options, of which $231,000 was recognized in general and administrative expenses and $128,000 in research and development expenses. The following table summarizes common stock options issued and outstanding: Options Weighted average exercise price Aggregate intrinsic value Weighted average remaining contractual life (years) Outstanding at February 28, 2015 187,342 $ 23.70 $ 20,670 8.29 Granted 188,335 8.36 - - Exercised - - - - Forfeited 534 8.10 - - Expired 3,667 10.20 - - Outstanding and expected to vest at August 31, 2015 371,476 $ 16.08 $ - 8.78 Exercisable at August 31, 2015 151,209 $ 22.37 $ - 7.83 As of August 31, 2015, 802 options are exercisable at $8.10 per share with a weighted average life of 9.42 years; 36,667 options are exercisable at $8.25 per share with a weighted average life of 9.80 years; 52,434 options are exercisable at $10.20 per share with a weighted average life of 6.36 years; 1,667 options exercisable at $11.25 per share with a life of 9.72 years; 14,735 options are exercisable at $22.50 with a weighted average life of 8.91 years; and 44,904 options are exercisable at $48.75 with a weighted average life of 7.60 years. Additionally, the options that have yet to vest were as follows: 266 options exercisable at $8.10 per share with a weighted average life of 9.42 years; 145,001 options exercisable at $8.25 per share with a weighted average life of 9.76 years; 5,000 options exercisable at $11.25 with a weighted average life of 9.72 years; 40,000 options are exercisable at $16.50 with a weighted average life of 9.13 years and 30,000 options exercisable at $22.50 with a weighted average life of 8.30 years. As of August 31, 2015, we had approximately $438,000 of unrecognized compensation related to employee and consultant stock options that are expected to vest over a weighted average period of 1.8 years and, approximately $410,000 of unrecognized compensation related to employee stock options whose recognition is dependent on certain milestones to be achieved. Additionally, there were 45,000 stock options with a performance vesting condition that were granted to consultants which will be measured and recognized when vesting becomes probable.

WARRANTS

WARRANTS	6 Months Ended
	Aug. 31, 2015
Warrants
WARRANTS	For the three and six months ended August 31, 2015, the Company issued a warrant to purchase an aggregate of 43,636 shares of common stock in connection with the issuances of the Note on July 31, 2015, referenced in Note 4. This warrant is exercisable at $8.25 per share and expire on March 31, 2020. The warrant vests immediately. In connection with the issuances of the Note pursuant to the Note Purchase Agreement on July 31, 2015, the Company issued placement agent warrants to purchase an aggregate of 5,600 shares of common stock. These placement agent warrants were issued on July 31, 2015, are exercisable at $10.50 per share and expire on July 31, 2020. These placement agent warrants vest immediately. The fair value of these warrants was determined to be $16,800, as calculated using the Black-Scholes model. Weighted-average assumptions used in the Black-Scholes model included: (1) a discount rate of 1.54%; (2) an expected term of 5.0 years; (3) an expected volatility of 128%; and (4) zero expected dividends. $16,800 was recorded as part of the debt discount against the stated value of the Note (See Note 4). For the six months ended August 31, 2015, the Company issued an aggregate of 193,708 Series A Warrants in connection with the issuances of Series B Preferred Stock in March 2015, referenced in Note 3. These Series A Warrants were issued on March 27 and 31, 2015, are exercisable at $10.50 per share and expire on March 31, 2020. The Series A Warrants vest immediately. The Series A Warrants do not contain any provision that would require liability treatment, therefore they were classified as equity in the Condensed Consolidated Balance Sheet. In connection with the issuances of the Series B Preferred Stock on March 27 and 31, 2015, the Company issued placement agent warrants to purchase an aggregate of 20,668 shares of common stock. These placement agent warrants had the same terms as the Series A Warrants and were issued on March 27, 2015, are exercisable at $10.50 per share and expire on March 31, 2020. These placement agent warrants vest immediately. The fair value of these warrants was determined to be $158,441, as calculated using the Black-Scholes model. Weighted-average assumptions used in the Black-Scholes model included: (1) a discount rate of 1.41%; (2) an expected term of 5.0 years; (3) an expected volatility of 125%; and (4) zero expected dividends. For the six months ended August 31, 2015, the Company issued an aggregate of 1,251 warrants to a consultant for services. These warrants were issued on May 31, 2015 and expire on May 31, 2020. 556 of such warrants are exercisable at $15.00 per share and 695 of such warrants are exercisable at $18.75 per share. These warrants vest immediately. The fair value of these warrants was determined to be $4,771, as calculated using the Black-Scholes model. Average assumptions used in the Black-Scholes model included: (1) a discount rate of 1.49%; (2) an expected term of 5.0 years; (3) an expected volatility of 124 %; and (4) zero expected dividends. For the six months ended August 31, 2015, the Company recognized $4,771 of stock-based compensation for these warrants. For the three and six months ended August 31, 2015, the Company issued to a consultant for services a five-year warrant to purchase 9,134 shares of common stock at an exercise price of $8.25 per share. This warrant vests immediately. The fair value of this warrant was determined to be $26,945, as calculated using the Black-Scholes model. Average assumptions used in the Black-Scholes model included: (1) a discount rate of 1.54%; (2) an expected term of 5.0 years; (3) an expected volatility of 128 %; and (4) zero expected dividends. For the three and six months ended August 31, 2015, the Company recognized $26,945 of stock-based compensation for this warrant. For the six months ended August 31, 2015, 1,668 common stock purchase warrants with an exercise price of $31.50 and 5,001 common stock purchase warrants with an exercise price of $22.50 were repurchased and cancelled as part of a settlement of a dispute with two affiliated security holders (see Note 3). For the six months ended August 31, 2014, in connection with the issuance of convertible notes referenced in Note 5, the Company issued five-year warrants to purchase an aggregate 1,668 shares of common stock for a price of $31.50 and to purchase an aggregate 10,339 shares of common stock for a price of $22.50 per share. These warrants vested immediately. These warrants do not contain any provision that would require liability treatment, therefore they were classified as equity in the Condensed Consolidated Balance Sheet. These warrants had a weighted-average fair value of $127,289, as calculated using the Black-Scholes model. Assumptions used in the Black-Scholes model included: (1) a discount rate of 1.64 %; (2) an expected term of 5 years; (3) an expected volatility of 116.8%; and (4) zero expected dividends. For the six months ended August 31, 2014, the Company issued 204,420 warrants in connection with the closing of the Qualified Financing as described in Note 3. These warrants were issued on June 30, 2014, are exercisable at $22.50 per share and expire on June 30, 2018. These warrants vested immediately. The warrants do not contain any provision that would require liability treatment, therefore they were classified as equity in the Condensed Consolidated Balance Sheet. The following table summarizes common stock purchase warrants issued and outstanding: Warrants Weighted average exercise price Aggregate intrinsic value Weighted average remaining contractual life (years) Outstanding at February 28, 2015 580,604 $ 17.85 $ 72,250 3.33 Granted 273,997 10.10 - - Exercised - - - - Cancelled 6,669 24.75 - - Expired - - - - Outstanding at August 31, 2015 847,932 $ 15.26 $ - 3.42 Warrants exercisable at August 31, 2015 are: Exercise Prices Number of shares Weighted average remaining life (years) Exercisable number of shares $ 8.25 83,104 4.81 83,104 $ 10.20 14,668 1.21 14,668 $ 10.50 344,005 4.59 344,005 $ 13.65 99,826 1.42 99,826 $ 15.00 556 4.75 556 $ 18.75 695 4.75 695 $ 21.00 52,427 0.99 52,427 $ 22.50 219,754 2.77 219,754 $ 31.50 29,830 2.62 29,830 $ 37.50 1,733 2.37 1,733 $ 45.00 1,334 1.42 1,334

LICENSE AGREEMENTS AND COMMITME

LICENSE AGREEMENTS AND COMMITMENTS	6 Months Ended
	Aug. 31, 2015
Research and Development [Abstract]
LICENSE AGREEMENTS AND COMMITMENTS	License Agreements In August 2010, we entered into a License Agreement (the “License Agreement”) with Einstein, MIT, Cornell and IFO-Regina. Pursuant to the License Agreement, we are required to make annual license maintenance fee payments beginning August 26, 2011. We have satisfied all license maintenance payments due through August 31, 2015 and are required to make payments of $75,000 in 2016 and $100,000 in 2017 and every year the license is in effect thereafter. These annual license maintenance fee payments will be credited to running royalties due on net sales earned in the same calendar year. Effective March 2012, we entered into a second license agreement dated January 3, 2012 (the “Second License Agreement”) with Einstein. Pursuant to the Second License Agreement, we are required to make annual license maintenance fee payments beginning on January 3, 2013. We have satisfied all license maintenance payments due through August 31, 2015 and are required to make additional payments of $30,000 in 2016, $50,000 in 2017, $75,000 in 2018 and $100,000 in 2019 and every year the license is in effect thereafter. These annual license maintenance fee payments will be credited to running royalties due on net sales earned in the same calendar year. Effective December 2013, we entered into a diagnostic license agreement (the “Alternative Splicing Diagnostic License Agreement”) with MIT and its David H. Koch Institute for Integrative Cancer Research at MIT and its Department of Biology, Einstein, and Montefiore Medical Center. Pursuant to the Alternative Splicing Diagnostic License Agreement, we are required to make annual license maintenance fee payments for each license beginning on January 1, 2015. We have satisfied the license maintenance payment of $10,000 for 2015. We are required to make additional payments of $15,000 in 2016, $25,000 in 2017, $37,500 in 2018, and $50,000 in 2019 and every year each license is in effect thereafter. These annual license maintenance fee payments will be credited to running royalties due on net sales earned in the same calendar year. Effective June 2014, we entered into a license agreement (the “Antibody License Agreement”) with MIT. Pursuant to the Antibody License Agreement, we are required to make license maintenance fee payments beginning on January 1, 2015. We have satisfied the license maintenance payment of $5,000 for 2015. We are required to make additional payments of $10,000 in 2016, $15,000 in 2017, $15,000 in 2018, and $20,000 in 2019 and every year the license is in effect thereafter. These annual license maintenance fee payments will be credited to running royalties due on net sales earned in the same calendar year. Lease Agreements On August 28, 2014, we entered into a lease agreement for our diagnostic laboratory and office space located in Boston, MA. The term of the lease is from September 1, 2014 through August 31, 2016, and the basic rent payable thereunder is $10,280 per month for the first year and $10,588 per month for the second year. Additional monthly payments under the lease agreement shall include tax payments and operational costs. Additionally, we paid a $40,000 security deposit in connection with entering into the lease. Effective March 1, 2015 we entered into a lease agreement for a short-term office space in New York, NY. The term of the lease is month-to-month and may be terminated with twenty-one (21) days notice. The basic rent payment is $1,400 per month and we paid a $2,100 security deposit in connection with entering into the lease.

LICENSE, DEVELOPMENT AND COMMER

LICENSE, DEVELOPMENT AND COMMERCIALIZATION AGREEMENT WITH ASET THERAPEUTICS, LLC	6 Months Ended
	Aug. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
LICENSE, DEVELOPMENT AND COMMERCIALIZATION AGREEMENT WITH ASET THERAPEUTICS, LLC	On November 25, 2014, we entered into a License, Development and Commercialization Agreement (the “ASET License Agreement”) with ASET Therapeutics LLC (“ASET” or the “Licensee”), a private third party entity affiliated with one of the Company’s directors. The ASET License Agreement sets forth the rights and obligations of the parties with respect to the grant by the Company to the Licensee of an exclusive license of certain of Company’s therapeutic assets and an exclusive sublicense, with the right to sublicense through multiple tiers, of all rights and obligations under the Company’s existing Therapeutic License Agreement dated as of December 7, 2013 with the Massachusetts Institute of Technology and its David H. Koch Institute for Integrative Cancer Research at MIT and its Department of Biology (“MIT”), Albert Einstein College of Medicine of Yeshiva University, and Montefiore Medical Center (the “Therapeutic License Agreement”). The licensed technology includes: (i) Alternative Splicing Event (ASE) technology based on International Patent Application WO 2012/116248 A1 entitled "Alternatively Spliced mRNA Isoforms as Prognostic and Therapeutic Tools for Metastatic Breast Cancer and Other Invasive/Metastatic Cancers"; and (ii) technology and know-how stemming from all ASE discovery work carried out in our labs at SUNY Stony Brook from September 2013 through November 25, 2014. The ASET License Agreement provides that the Company has the right to commercialize any companion diagnostic or biomarker (the “Companion Diagnostics”) arising from the work performed by the Licensee under the ASET License Agreement, pursuant to an exclusive sublicense. The ASET License Agreement calls for certain customary payments such as annual license maintenance payments ranging from $5,000 to $25,000 and milestone payments upon the achievement of specified regulatory and sales milestones. The ASET License Agreement also requires the payment by ASET of a low single-digit royalty on net sales, at such time, if ever, as ASET’s products are fully developed, receive the required regulatory approvals and are commercialized. MIT shall retain the sole and exclusive right to file, prosecute and maintain the MIT patent rights in accordance with the Therapeutic License Agreement. ASET shall have the first right to file, prosecute and maintain at its expense, the MetaStat patent rights not covered by the Therapeutic License Agreement and any patent application(s) or patent(s) arising from joint inventions, using patent counsel selected by ASET. In addition, ASET shall have the first right to initiate and prosecute such legal action or to control the defense of any declaratory judgment action relating to the parties’ patent rights in the territory in the field. ASET and MetaStat shall jointly bear the expense of such legal action. Pursuant to the Memorandum of Understanding between the Company and ASET (as assignee), as amended (the “MOU”), ASET is obligated to invest an aggregate of $1.25 million in new equity in the Company, $250,000 of which was invested in the Qualified Financing (see Note 3) with the balance to be invested in a separate financing on substantially similar terms on or before December 31, 2015. In the event that ASET does not satisfy its investment obligation, the ASET License Agreement will terminate and the assets will automatically revert back to the Company. The MOU also required ASET to pay for all costs and expenses of the SUNY Stony Brook facility, up to a maximum of $50,000 per month, from October 15, 2014 until the transfer of such assets under the ASET License Agreement. In addition, ASET agreed to reimburse the Company $150,000 for certain costs incurred at such facility by March 1, 2015. On June 22, 2015, effective May 31, 2015, the Company and ASET entered into a side letter that clarifies certain terms of the MOU including allowing for the equity investments in multiple tranches. In addition, the parties have mutually agreed to an extension of the $150,000 due the Company on March 1, 2015 in connection with the reimbursement the for certain costs. ASET issued an interest free promissory note to the Company in the aggregate amount of $150,000, payable in three installments of $50,000 each due on June 1, 2015, July 1, 2015 and August 1, 2015, respectively. The Company recorded $150,000 of other income during the three months ended August 31, 2015, related to this reimbursement from ASET. The Company has received the first payment of $50,000 due June 1, 2015, and, as of August 31, 2015, has a $100,000 note receivable from ASET recorded on the Company’s Balance Sheet. ASET also issued the Company a promissory note in the principal amount of $75,000 for the purchase of the equipment and fixed assets of the Stony Brook, NY laboratory, which are presented as assets available for sale in the consolidated balance sheet. This note is interest free and matures on December 30, 2015. In the event the Company has purchased at least $925,000 in equity of ASET prior to December 30, 2015, then the Company may use this note as payment for its remainder purchase of equity in ASET. The $75,000 has been recorded as a note receivable on the Company’s Balance Sheet. Pursuant to the MOU, the Company is obligated to make a $1 million preferred stock equity investment in exchange for a 20% equity interest in ASET (on a fully diluted, as converted basis) on or before December 31, 2015. The Company will maintain its 20% equity ownership in ASET until such time that ASET raises an aggregate of $4,000,000 in equity or in a financing in which ASET issues securities convertible into equity (including the $1 million received from the Company, but excluding any proceeds received by ASET from the sale of the Company’s securities), after which it will be diluted proportionately with all other equity holders of ASET. The Company will have the right to maintain its equity position in ASET by participating in future financings; provided, however, that such right will terminate in the event the Company does not make a minimum investment in a future financing of ASET equal to at least the lesser of (i) $250,000 and (ii) an amount required to maintain its 20% equity ownership interest. The MOU also provides that so long as the Company owns at least ten percent (10%) of the outstanding equity interests of ASET, the Company will have the right to designate one member of the ASET’s board of directors or similar governing body and that the Company’s current chief executive officer shall provide an oversight function to ASET for a period of six months following the execution of the ASET License Agreement. We determined that ASET is considered a variable interest entity (“VIE”), which is an entity in which equity investors lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary. The primary beneficiary is the party who has both the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. We determined that we are not the primary beneficiary of ASET based primarily on the facts that we do not have the power to direct ASET’s operations nor do we have any obligation to absorb ASET losses. As a result, ASET has not been consolidated by us. Our determination of whether we are the primary beneficiary of the VIE is based upon the facts and circumstances for the VIE and requires significant judgment regarding whether we have power to direct the VIE’s most significant activities, which includes, but is not limited to, the VIE’s purpose and design and the risks passed through to investors, the voting interests of the VIE, management, service and/or other agreements of the VIE, involvement in the VIE’s initial design and the existence of explicit or implicit financial guarantees.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Aug. 31, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	In accordance with ASC 820, Fair Value Measurements, financial instruments were measured at fair value using a three-level hierarchy which maximizes use of observable inputs and minimizes use of unobservable inputs: · Level 1: Observable inputs such as quoted prices in active markets for identical instruments · Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the market · Level 3: Significant unobservable inputs supported by little or no market activity. Financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, for which determination of fair value requires significant judgment or estimation. Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. At August 31, 2015 and February 28, 2015, the warrant liability balances of $250,644 and $273,000, respectively, were classified as Level 3 instruments. The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative warrant liability: Note Payable Warrants Series B Warrants Total Fair value at the beginning of period: $ 273,000 $ 273,000 Additions $ 150,544 150,544 Change in fair value: (172,900 ) (172,900 ) Fair value at end of period: $ 150,544 $ 100,100 $ 250,644 In connection with the issuance of the Note on July 31, 2015, the Company issued warrants to purchase an aggregate of 43,636 shares of common stock. These warrants were issued on July 31, 2015, are exercisable at $8.25 per share and expire on July 31, 2020. These warrants contain a full-ratchet anti-dilution price protection provision that requires liability treatment. The fair value of these warrants at August 31, 2015 and July 31, 2015 was determined to be $150,544 as calculated using the Monte Carlo simulation. The Monte Carlo simulation as of August 31 and July 31, 2015 used the following assumptions: (1) stock price of $0.25 and $0.26, respectively; (2) a risk free rate of 1.54%; (3) an expected volatility of 129% and 128%, respectively; and (4) a fundraising event to occur on November 30 2015, that would result in the issuance of additional common stock. The Series B Warrants contain an adjustment clause affecting the exercise price of the Series B warrants, which may be reduced if the Company issues shares of common stock or convertible securities at a price below the then-current exercise price of the Series B warrants. As a result, we determined that the Series B warrants were not indexed to the Company’s common stock and therefore should be recorded as a derivative liability. The Series B Warrants were measured at fair value on the issuance date using a Monte Carlo simulation and will be re-measured to fair value at each balance sheet date, and any resultant changes in fair value will be recorded in earnings. The Monte Carlo simulation as of August 31 and February 28, 2015 used the following assumptions: (1) a stock price of $0.25 and $0.70, respectively; (2) a risk free rate of 1.54% and 1.50%, respectively; (3) an expected volatility of 129% and 125%, respectively; and (4) a fundraising event to occur on November 30 and September 30, 2015, respectively, that would result in the issuance of additional common stock.

EQUIPMENT

EQUIPMENT	6 Months Ended
	Aug. 31, 2015
Property, Plant and Equipment [Abstract]
EQUIPMENT	Equipment consists of the following: Estimated Useful Lives August 31, 2015 February 28, 2015 Research equipment 7 years $ 590,372 $ 548,991 Computer equipment 5 years 73,704 73,704 664,076 622,695 Accumulated depreciation and amortization (121,864 ) (96,089 ) Equipment, net $ 542,212 $ 526,606 Depreciation and amortization expense was $23,812 and $9,350 for the three months ended August 31, 2015 and 2014, respectively. Depreciation of equipment utilized in research and development activities is included in research and development expenses and amounted to $20,126 and $5,665 for the three months ended August 31, 2015 and 2014, respectively. All other depreciation is included in general and administrative expense and amounted to $3,686 and $3,685 for the three months ended August 31, 2015 and 2014, respectively. Depreciation and amortization expense was $48,657 and $18,572 for the six months ended August 31, 2015 and 2014, respectively. Depreciation of equipment utilized in research and development activities is included in research and development expenses and amounted to $41,286 and $11,330 for the six months ended August 31, 2015 and 2014, respectively. All other depreciation is included in general and administrative expense and amounted to $7,371 and $7,242 for the six months ended August 31, 2015 and 2014, respectively. On March 26, 2014, we entered into an agreement to finance the purchase of research equipment for a purchase price of $318,603. The terms of the agreement require a down payment of $21,115 and 36 monthly payments of $10,260. The agreement further requires a security deposit of $238,952, which will be refunded to the Company in three equal installments upon the payment of the twelfth, the twenty-fourth and the thirty-sixth monthly payments. This security deposit has been satisfied by the Company. As further security, a personal guaranty was required of our former chief executive officer. On July 9, 2015, we prepaid all the remaining installments due under the agreement through an application of the security deposit.

SECURITIES HELD FOR SALE AND DU

SECURITIES HELD FOR SALE AND DUE TO INVESTOR	6 Months Ended
	Aug. 31, 2015
Securities Held For Sale And Due To Investor
SECURITIES HELD FOR SALE AND DUE TO INVESTOR	As part of the June 30, 2014 equity financing (see Note 3), the Company received 4,800,000 shares of common stock of Quantum Materials Corp. (“Consideration Shares”) in lieu of $1,000,000 of cash proceeds from an investor. In the event the Company does not receive gross proceeds of at least $1,000,000 from the sale of the Consideration Shares by the earliest to occur of (i) September 28, 2014 or (ii) the date the Company has sold of the Consideration Shares, then the investor shall make a payment to the Company equal to the difference between $1,000,000 and the aggregate gross proceeds received by the Company from the sale of the Consideration Shares. In the event the Company received gross proceeds of at least $1,000,000 from the sale of the Consideration Shares within the 90 days following the closing date of the equity financing, the Company shall immediately cease to sell the Consideration Shares and return all the unsold Consideration Shares to the investor and any proceeds from the sale of the Consideration Shares in excess of the $1,000,000. The Company has elected to account for the Consideration Shares and the related liability to the investor at fair value. As such, any changes in fair value of the Consideration Shares and the related liability, which are expected to offset each other, are recorded in earnings. The Consideration Shares and the related liability due to investor are financial instruments which are considered Level 1 in the fair value hierarchy and whose value is based on quoted prices in an active market. The fair value of the Consideration Shares at the time of the closing of the equity financing amounted to approximately $1,344,000. During the three months ended August 31, 2014, the Company generated approximately $786,000 of proceeds from the sale of the Consideration Shares. As of August 31, 2014, the unsold Consideration Shares had an aggregate fair value of approximately $459,000. As of August 31, 2014, the Company recorded a liability amounted to approximately $245,000. This amount, which is payable to the investor, was measured as the excess of the combined amount of (1) the proceeds from the sale of the Consideration Shares and (2) the fair value of the remaining unsold Consideration Shares over $1,000,000. During the six months ended August 31, 2014, the decrease in fair value of both the Consideration Shares and the related liability due to the investor amounted to approximately $99,000, with both recorded in earnings. On October 14, 2014, the Company entered into an agreement with the investor whereby the remaining Consideration Shares were to be kept by the Company in exchange for the issuance of Series A Convertible Preferred Stock. As of February 28, 2015, the Company had sold all remaining Consideration Shares.

NET LOSS PER SHARE

NET LOSS PER SHARE	6 Months Ended
	Aug. 31, 2015
Accounting Policies [Abstract]
NET LOSS PER SHARE	Basic net loss per common share is computed based on the weighted average number of common shares outstanding during the period. Restricted shares issued with vesting condition that have not been met at the end of the period are excluded from the computation of the weighted average shares. As of August 31, 2015 and 2014, 31,188 and 20,211 restricted shares of common stock, respectively, were excluded from the computation of the weighted average shares. Diluted net loss per common share is calculated giving effect to all dilutive potential common shares that were outstanding during the period. Diluted potential common shares generally consist of incremental shares issuable upon exercise of stock options and warrants and shares issuable from convertible securities. When dilutive, warrants classified as liabilities are included in the potential common shares and any change in fair value of the warrant for the period presented is excluded from the net loss. For the periods ended August 31, 2015, the liability warrants were not dilutive. In computing diluted loss per share for the periods ended August 31, 2015 and 2014, no effect has been given to the common shares issuable at the end of the period upon the conversion or exercise of the following securities as their inclusion would have been anti-dilutive: August 31, 2015 August 31, 2014 Stock options 371,476 172,007 Warrants 847,932 426,241 Preferred stock 480,472 - Total 1,699,880 598,248

NOTE PAYABLE (Tables)

NOTE PAYABLE (Tables)	6 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Note Payable Tables
Fair value measurements	Note Payable Discount Voluntary Exchange Feature Note Payable, Net February 28, 2015 balance $ - $ - $ - $ - Issuance of Note 1,200,000 (483,676 ) 227,740 944,064 Amortization of debt discount - 29,883 - 29,883 Change in value - - 3,134 3,134 August 31, 2015 balance $ 1,200,000 $ (453,793 ) $ 230,874 $ 977,081	Note Payable Warrants Series B Warrants Total Fair value at the beginning of period: $ 273,000 $ 273,000 Additions $ 150,544 150,544 Change in fair value: (172,900 ) (172,900 ) Fair value at end of period: $ 150,544 $ 100,100 $ 250,644

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	6 Months Ended
	Aug. 31, 2014
Stock Options Tables
Weighted average inputs to the Black-Scholes model used to value the stock options granted	Expected volatility 113.47 - 123.55% Expected dividend yield 0.00% Risk-free interest rate 0.67% - 2.27% Expected Term 6.07 years
Common stock options issued and outstanding	Options Weighted average exercise price Aggregate intrinsic value Weighted average remaining contractual life (years) Outstanding at February 28, 2015 187,342 $ 23.70 $ 20,670 8.29 Granted 188,335 8.36 - - Exercised - - - - Forfeited 534 8.10 - - Expired 3,667 10.20 - - Outstanding and expected to vest at August 31, 2015 371,476 $ 16.08 $ - 8.78 Exercisable at August 31, 2015 151,209 $ 22.37 $ - 7.83

WARRANTS (Tables)

WARRANTS (Tables)	6 Months Ended
	Aug. 31, 2014
Warrants Tables
Common stock purchase warrants issued and outstanding	Warrants Weighted average exercise price Aggregate intrinsic value Weighted average remaining contractual life (years) Outstanding at February 28, 2015 580,604 $ 17.85 $ 72,250 3.33 Granted 273,997 10.10 - - Exercised - - - - Cancelled 6,669 24.75 - - Expired - - - - Outstanding at August 31, 2015 847,932 $ 15.26 $ - 3.42
Warrants exercisable	Exercise Prices Number of shares Weighted average remaining life (years) Exercisable number of shares $ 8.25 83,104 4.81 83,104 $ 10.20 14,668 1.21 14,668 $ 10.50 344,005 4.59 344,005 $ 13.65 99,826 1.42 99,826 $ 15.00 556 4.75 556 $ 18.75 695 4.75 695 $ 21.00 52,427 0.99 52,427 $ 22.50 219,754 2.77 219,754 $ 31.50 29,830 2.62 29,830 $ 37.50 1,733 2.37 1,733 $ 45.00 1,334 1.42 1,334

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Fair Value Disclosures [Abstract]
Fair value measurements	Note Payable Discount Voluntary Exchange Feature Note Payable, Net February 28, 2015 balance $ - $ - $ - $ - Issuance of Note 1,200,000 (483,676 ) 227,740 944,064 Amortization of debt discount - 29,883 - 29,883 Change in value - - 3,134 3,134 August 31, 2015 balance $ 1,200,000 $ (453,793 ) $ 230,874 $ 977,081	Note Payable Warrants Series B Warrants Total Fair value at the beginning of period: $ 273,000 $ 273,000 Additions $ 150,544 150,544 Change in fair value: (172,900 ) (172,900 ) Fair value at end of period: $ 150,544 $ 100,100 $ 250,644

EQUIPMENT (Tables)

EQUIPMENT (Tables)	6 Months Ended
	Aug. 31, 2014
Property, Plant and Equipment [Abstract]
Equipment	Estimated Useful Lives August 31, 2015 February 28, 2015 Research equipment 7 years $ 590,372 $ 548,991 Computer equipment 5 years 73,704 73,704 664,076 622,695 Accumulated depreciation and amortization (121,864 ) (96,089 ) Equipment, net $ 542,212 $ 526,606

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	6 Months Ended
	Aug. 31, 2015
Accounting Policies [Abstract]
Anti-dilutive securities	August 31, 2015 August 31, 2014 Stock options 371,476 172,007 Warrants 847,932 426,241 Preferred stock 480,472 - Total 1,699,880 598,248

DESCRIPTION OF BUSINESS AND G25

DESCRIPTION OF BUSINESS AND GOING CONCERN (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Oct. 14, 2015	Aug. 31, 2015	Aug. 31, 2014	Aug. 31, 2015	Aug. 31, 2014	Feb. 28, 2015
Description Of Business And Going Concern Details Narrative
Date of incorporation					Mar. 28, 2007
State of incorporation					Nevada
Stock split	1-for-15
Going Concern
Accumulated deficit		$ (21,059,927)		$ (21,059,927)		$ (18,723,149)
Net loss		$ (1,261,871)	$ (4,304,040)	$ (2,336,778)	$ (5,536,124)

CAPITAL STOCK (Details Narrativ

CAPITAL STOCK (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Aug. 31, 2015	Aug. 31, 2015	Feb. 28, 2015
Authorized shares of stock	160,000,000	160,000,000
Par value of shares	$ 0.0001	$ 0.0001	$ .0001
Authorized shares of common stock	150,000,000	150,000,000	150,000,000
Authorized shares of preferred stock	10,000,000	10,000,000	10,000,000
Series B Preferred Stock [Member]
Authorized shares of preferred stock	1,000	1,000	1,000
Stated value per share	$ .0001	$ .0001	$ .0001
Dividend rate		8.00%
Dividend payable	$ 46,441	$ 46,441	$ 16,767
Preferred issued for payment of dividends	12.4175	17.2354
Preferred B issued for dividends, Amount	$ 68,295	$ 94,793
Liquidation preference	$ 3,529,000	$ 3,529,000	$ 1,274,000
Conversion price		$8.25 per share

CONVERTIBLE NOTES (Details Narr

CONVERTIBLE NOTES (Details Narrative) - USD ($)	3 Months Ended		5 Months Ended	6 Months Ended			13 Months Ended
	Aug. 31, 2015	Aug. 31, 2014	May. 31, 2013	Aug. 31, 2015	Aug. 31, 2014	Aug. 31, 2014	Dec. 31, 2014
Debt discount due to beneficial conversion feature						$ 2,324,759
Convertible promissory notes outstanding	$ 0			$ 0
Contingent beneficial conversion		$ 2,324,760				2,324,760
Convertible Note 2013 [Member]
Convertible promissory notes issued			$ 1,487,000
Modification of notes							$ (1,387,000)
Extinguishment of debt							$ 1,243,482
Accretion expense		39,248				159,647
Convertible note maturity date			Dec. 31, 2013
Convertible Notes Payable [Member]
Convertible promissory notes issued					$ 615,000
Extinguishment of debt					$ 3,357,000
Accretion expense		$ 157,998				$ 379,672
Convertible note maturity date					Jun. 30, 2014
Convertible note interest rate					8.00%
Warrants issued					1,668
Warrant exercise price		$ 22.50			$ 22.50	$ 22.50
Gross proceeds minimum aggregate					$ 5,000,000
Per security price of securities sold in Qualified Financing					$ 1.15
Conversion price right		$ 31.50			$ 31.50	$ 31.50
Debt discount due to beneficial conversion feature					$ 173,035
Extinguishment of interest					201,000
Contingent beneficial conversion					2,324,760
Convertible Notes 2014 (2) [Member]
Convertible promissory notes issued					$ 10,339
Convertible note maturity date					Aug. 30, 2014

EQUITY TRANSACTIONS (Details Na

EQUITY TRANSACTIONS (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Fair value of shares issued for services		$ 310,375
Increase in prepaid expenses	$ (40,729)	(35,452)
Legal settlement, amount	$ 150,000
Shares issued in legal settlement	10,728
Reimbursement of legal expenses	$ 3,000
Settlement expense	38,437
Stock based compensation	492,359	$ 359,000
Net proceeds from offering	1,945,244
Series B Preferred Stock [Member]
Sale of stock, amount	$ 2,130,750
Sale of stock, price per share	$ 8.25
Series B Preferred Stock [Member] | Private Placement [Member]
Sale of stock, amount	$ 2,130,750
Warrants issued	$ 193,708
Preferred stock issued private placement	3,874,088
Stock based compensation	$ 12,695
Cash fee to placement agents	$ 147,451
Placement agent warrants	20,668
Fair value of placement agent warrants	$ 158,411
Net proceeds from offering	1,945,244
Non-cash deemed dividend	$ 1,067,491
Series A Preferred Stock [Member] | Warrants [Member]
Exercise price	$ 10.50
Series A Preferred Stock [Member] | Warrants [Member] | Placement Agent [Member]
Fair value of shares issued for services	$ 158,441
Warrants issued	$ 193,708
Warrants [Member] | $22.50 [Member]
Shares issued in legal settlement	5,001
Exercise price	$ 22.50
Warrants [Member] | $31.50 [Member]
Shares issued in legal settlement	10,728
Exercise price	$ 31.50
Consultant1 [Member]
Common stock issued for services	28,001	6,667
Stock based compensation	$ 208,475
Consultant 2 [Member]
Common stock issued for services	20,001	10,836
Stock based compensation	$ 310,375

STOCK OPTIONS (Details)

STOCK OPTIONS (Details)	6 Months Ended
	Aug. 31, 2015
Minimum [Member]
Expected volatility	113.47%
Risk-free interest rate	0.67%
Maximum [Member]
Expected volatility	123.55%
Risk-free interest rate	2.27%
Option [Member]
Expected dividend yield	0.00%
Expected Term	6 years 23 days

STOCK OPTIONS (Details 1)

STOCK OPTIONS (Details 1) - Option [Member]	6 Months Ended
	Aug. 31, 2015USD ($)$ / sharesshares
Options Outstanding
Outstanding at Beginning of Period | shares	187,342
Granted | shares	188,335
Exercised | shares
Forfeited | shares	534
Expired | shares	3,667
Outstanding and expected to vest at End of Period | shares	371,476
Exercisable | shares	151,209
Weighted Average Exercise Price
Outstanding at Beginning of Period	$ 23.70
Granted	$ 8.36
Exercised
Forfeited	$ 8.10
Expired	10.20
Outstanding and expected to vest at End of Period	16.08
Exercisable at End of period	$ 22.37
Outstanding at Beginning of Period | $	$ 20,670
Outstanding and expected to vest at End of Period | $
Exercisable at End of period | $
Weighted Average Remaining Contractual Term
Outstanding and expected to vest at Beginning of Period	8 years 3 months 14 days
Outstanding and expected to vest at End of Period	8 years 9 months 11 days
Exercisable at End of period	7 years 9 months 29 days

STOCK OPTIONS (Details Narrativ

STOCK OPTIONS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2015	Aug. 31, 2014	Aug. 31, 2015	Aug. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum			15.00%
Stock based compensation expense			$ 492,359	$ 359,000
Allocated expense	$ 183,233	$ 359,000	252,168	359,000
General and Administrative Expense [Member]
Allocated expense	159,002	231,000	227,937	231,000
Research And Development Expense [Member]
Allocated expense	24,231	$ 128,000	$ 24,231	$ 128,000
Scientific Clinic Board [Member]
Shares cancelled			534
Option 1 [Member]
Stock options issued			6,667
Stock option price per share			$ 11.25
Stock option expiration date			Mar. 1, 2025
Shares vested			1,667
Stock based compensation expense			$ 8,000
Option 2 [Member]
Stock options issued			80,004
Stock option price per share			$ 8.25
Stock option expiration date			May 18, 2025
Stock options fair value			$ 388,000
Stock based compensation expense	$ 9,070		$ 68,086
Option 3 [Member]
Stock options issued			5,001
Stock option price per share			$ 8.25
Stock option expiration date			Sep. 30, 2017
Option 4 [Member]
Stock options issued			60,000
Stock option price per share			$ 8.25
Stock option expiration date			Jun. 17, 2025
Stock options fair value			$ 221,100
Shares vested			10,000
Stock based compensation expense			$ 34,100
Option 5 [Member]
Stock options issued			26,667
Stock option price per share			$ 8.25
Stock options fair value			$ 66,417
Stock based compensation expense			$ 44,267
Option 6 [Member]
Stock options issued			10,000
Stock option price per share			$ 8.25
Stock option expiration date			Jun. 17, 2025
Option 7 [Member]
Stock options fair value			$ 232,000
Shares vested			14,667
Stock based compensation expense			$ 232,000
Option 8 [Member]
Stock options fair value			$ 127,000
Shares vested			6,000
Stock based compensation expense			$ 127,000
Option 9 [Member]
Stock option price per share			$ 48.75
Shares cancelled			6,667

WARRANTS (Details)

WARRANTS (Details) - Stock Warrants [Member]	6 Months Ended
	Aug. 31, 2015USD ($)$ / sharesshares
Warrants Outstanding
Outstanding at Beginning of Period | shares	580,604
Granted | shares	273,997
Exercised | shares
Cancelled | shares	6,669
Expired | shares
Outstanding at End of Period | shares	847,932
Weighted Average Exercise Price
Outstanding at Beginning of Period	$ 17.85
Granted	$ 10.10
Exercised
Cancelled	$ 24.75
Expired
Outstanding at End of Period	$ 15.26
Average Intrensic Value
Outstanding at Beginning of Period | $	$ 72,250
Issued | $
Outstanding at End of Period | $
Weighted Average Remaining Contractual Term
Outstanding at Beginning of Period	3 years 3 months 29 days
Outstanding at End of Period	3 years 5 months 1 day

WARRANTS (Details 1)

WARRANTS (Details 1) - Warrants [Member]	6 Months Ended
	Aug. 31, 2015$ / sharesshares
$8.25 [Member]
Exercise prices | $ / shares	$ 8.25
Number of shares	83,104
Weighted average remaining life (years)	4 years 9 months 22 days
Exercisable number of shares	83,104
$10.20 [Member]
Exercise prices | $ / shares	$ 10.20
Number of shares	14,668
Weighted average remaining life (years)	1 year 2 months 16 days
Exercisable number of shares	14,668
$10.50 [Member]
Exercise prices | $ / shares	$ 10.50
Number of shares	344,005
Weighted average remaining life (years)	4 years 7 months 2 days
Exercisable number of shares	344,005
$13.65 [Member]
Exercise prices | $ / shares	$ 13.65
Number of shares	99,826
Weighted average remaining life (years)	1 year 5 months 1 day
Exercisable number of shares	99,826
$15.00 [Member]
Exercise prices | $ / shares	$ 15
Number of shares	556
Weighted average remaining life (years)	4 years 9 months
Exercisable number of shares	556
$18.75 [Member]
Exercise prices | $ / shares	$ 18.75
Number of shares	695
Weighted average remaining life (years)	4 years 9 months
Exercisable number of shares	695
$21.00 [Member]
Exercise prices | $ / shares	$ 21
Number of shares	52,427
Weighted average remaining life (years)	11 months 27 days
Exercisable number of shares	52,427
$22.50 [Member]
Exercise prices | $ / shares	$ 22.50
Number of shares	219,754
Weighted average remaining life (years)	2 years 9 months 7 days
Exercisable number of shares	219,754
$31.50 [Member]
Exercise prices | $ / shares	$ 31.50
Number of shares	29,830
Weighted average remaining life (years)	2 years 7 months 13 days
Exercisable number of shares	29,830
$37.50 [Member]
Exercise prices | $ / shares	$ 37.50
Number of shares	1,733
Weighted average remaining life (years)	2 years 4 months 13 days
Exercisable number of shares	1,733
$45.00 [Member]
Exercise prices | $ / shares	$ 45
Number of shares	1,334
Weighted average remaining life (years)	1 year 5 months 1 day
Exercisable number of shares	1,334

WARRANTS (Details Narrative)

WARRANTS (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	May. 27, 2014	Aug. 31, 2015	Aug. 31, 2014
Fair value of warrants issued			$ 310,375
Debt discount
Stock based compensation expense		$ 492,359	$ 359,000
$31.50 [Member] | Warrants [Member]
Warrant exercise price		$ 31.50
Warrants repurchased and cancelled		5,001
$22.50 [Member] | Warrants [Member]
Warrant exercise price		$ 22.50
Warrants repurchased and cancelled		1,668
Warrants [Member] | Goods and Services Exchanged for Equity Instrument [Member]
Discount rate		1.49%
Fair value of warrants issued		$ 4,771
Warrant term		5 years
Volatility		124.00%
Dividends		0.00%
Warrants issued to consultant for services		1,251
Stock based compensation expense		$ 4,771
Warrants [Member] | Goods and Services Exchanged for Equity Instrument [Member] | $1.00 [Member]
Warrant exercise price		$ 15
Warrants issued to consultant for services		556
Warrants [Member] | Goods and Services Exchanged for Equity Instrument [Member] | $1.25 [Member]
Warrant exercise price		$ 18.75
Warrants issued to consultant for services		695
Warrants [Member] | Series A Preferred Stock [Member]
Warrants issued		193,708
Warrant exercise price		$ 10.50
Warrants [Member] | Placement Agent [Member] | Series A Preferred Stock [Member]
Warrants issued		20,668
Discount rate		1.41%
Fair value of warrants issued		$ 158,441
Warrant term		5 years
Volatility		125.00%
Dividends		0.00%
Warrants [Member] | Consultant [Member] | Series A Preferred Stock [Member]
Warrants issued		9,134
Warrant exercise price		$ 8.25
Discount rate		1.54%
Fair value of warrants issued		$ 26,945
Warrant term		5 years
Volatility		128.00%
Dividends		0.00%
Stock based compensation expense		$ 26,945
Warrants [Member] | Issuance 10[Member] | Series A Preferred Stock [Member]
Warrants issued		1,688
Warrant exercise price		$ 31.50
Discount rate		1.64%
Fair value of warrants issued		$ 127,289
Warrant term		5 years
Volatility		116.80%
Dividends		0.00%
Warrants issued to consultant for services		10,339
Warrants [Member] | Issuance 11[Member] | Series A Preferred Stock [Member]
Warrants issued		204,420
Warrant exercise price		$ 22.50
Convertible Notes Payable [Member] | Warrants [Member]
Warrants issued	43,636
Warrant exercise price	$ 8.25
Convertible Notes Payable [Member] | Warrants [Member] | Placement Agent [Member]
Warrants issued	5,600
Warrant exercise price	$ 10.50
Discount rate	1.54%
Fair value of warrants issued	$ 16,800
Warrant term	5 years
Volatility	128.00%
Dividends	0.00%
Debt discount	$ 16,800

NOTE PAYABLE (Details)

NOTE PAYABLE (Details)	6 Months Ended
	Aug. 31, 2015USD ($)
Note Payable
Note Payable, beginning of period
Issuance of note	$ 1,200,000
Amortization of debt discount
Change in value
Note payable, end of period	$ 1,200,000
Discount [Member]
Note Payable
Note Payable, beginning of period
Issuance of note	$ (483,676)
Amortization of debt discount	$ 29,883
Change in value
Note payable, end of period	$ (453,793)
Voluntary Exchange Feature [Member]
Note Payable
Note Payable, beginning of period
Issuance of note	$ 227,740
Amortization of debt discount
Change in value	$ 3,134
Note payable, end of period	$ 230,874
NotePayable Net [Member]
Note Payable
Note Payable, beginning of period
Issuance of note	$ 944,064
Amortization of debt discount	29,883
Change in value	3,134
Note payable, end of period	$ 977,081

LICENSE AGREEMENTS AND COMMIT36

LICENSE AGREEMENTS AND COMMITMENTS (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2015	Feb. 28, 2015
Rent payable, Boston, monthly installment rate		$ 10,280
Rent payable, second year		10,558
Rent payable, New York, monthly installment rate		1,400
Rental security deposit		$ 2,100
License Agreement [Member]
License maintenance fee due at one year	$ 75,000
License maintenance fee due at two years	100,000
License Agreement 2 [Member]
License maintenance fee due at one year	30,000
License maintenance fee due at two years	50,000
License maintenance fee due at three years	75,000
License maintenance fee due at four years	100,000
License Agreement 3 [Member]
License maintenance fee due at one year	15,000
License maintenance fee due at two years	25,000
License maintenance fee due at three years	37,500
License maintenance fee due at four years	50,000
License Agreement 4 [Member]
License maintenance fee due at one year	10,000
License maintenance fee due at two years	15,000
License maintenance fee due at three years	15,000
License maintenance fee due at four years	$ 20,000

LICENSE, DEVELOPMENT AND COMM37

LICENSE, DEVELOPMENT AND COMMERCIALIZATION AGREEMENT WITH ASET THERAPEUTICS, LLC (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 25, 2014	Aug. 31, 2015
Other income		$ 150,000
Proceeds from note receivable		50,000
Increase in note receivable		$ 100,000
Costs and Expenses [Member]
Reimbursement revenue	$ 150,000
Research and Development Expense [Member]
Reimbursement revenue	75,000
Maximum [Member] | Costs and Expenses [Member]
Reimbursement revenue	50,000
Licensing Agreements [Member]
Investment amount received	250,000
Reimbursement revenue	75,000
Investment required by company	1,000,000
Licensing Agreements [Member] | Minimum [Member]
Investment amount received	$ 1,250,000
Equity ownership	20.00%

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details)	6 Months Ended
	Aug. 31, 2015USD ($)
Fair value of Level 3 derivative warrant liability, beginning of period	$ 273,000
Additions	150,544
Change in fair value:	(172,900)
Fair value at end of year	250,644
Series B Preferred Stock [Member] | Warrants [Member]
Fair value of Level 3 derivative warrant liability, beginning of period	$ 273,000
Additions
Change in fair value:	$ (172,900)
Fair value at end of year	$ 100,100
Warrants [Member]
Fair value of Level 3 derivative warrant liability, beginning of period
Additions	$ 150,544
Change in fair value:
Fair value at end of year	$ 150,544

FAIR VALUE MEASUREMENTS (Deta39

FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Aug. 31, 2015	Feb. 28, 2015
Warrant liability	$ 250,644	$ 273,000
Warrants [Member]
Warrant liability	$ 150,544
Warrants issued	43,636
Exercise price	$ 8.25
Fair value of warrants issued	$ 150,544
Fair Value, Inputs, Level 3 [Member]
Stock price	$ .25	$ .70
Risk free rate	1.50%	1.54%
Volatility	125.00%	129.00%

EQUIPMENT (Details)

EQUIPMENT (Details) - USD ($)	6 Months Ended
	Aug. 31, 2015	Feb. 28, 2015
Equipment, gross	$ 664,076	$ 622,695
Accumulated depreciation and amortization	(121,864)	(96,089)
Equipment, net	$ 542,212	526,606
Research Equipment [Member]
Estimated useful life	P7Y
Equipment, gross	$ 590,372	548,991
Computer Equipment [Member]
Estimated useful life	P5Y
Equipment, gross	$ 73,704	$ 73,704

EQUIPMENT (Details Narrative)

EQUIPMENT (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 26, 2014	Aug. 31, 2015	Aug. 31, 2014	Aug. 31, 2015	Aug. 31, 2014
Depreciation		$ 23,812	$ 9,350	$ 48,657	$ 18,572
Equipment Purchase Agreement [Member]
Research equipment agreement	$ 318,603
Equipment payment	21,115
Security deposit	238,952
Equipment Purchase Agreement [Member] | Minimum [Member]
Equipment payment	$ 10,260
Research and Development Expense [Member]
Depreciation		20,126	2,665	41,286	11,330
General and Administrative Expense [Member]
Depreciation		$ 3,686	$ 3,685	$ 7,371	$ 7,242

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - shares	6 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Anti-dilutive securities	7,699,880	598,248
Stock Options [Member]
Anti-dilutive securities	371,476	172,007
Warrants [Member]
Anti-dilutive securities	847,932	426,241
Preferred Stock [Member]
Anti-dilutive securities	480,472

NET LOSS PER SHARE (Details Nar

NET LOSS PER SHARE (Details Narrative) - shares	6 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Anti-dilutive securities	7,699,880	598,248
Restricted Stock [Member]
Anti-dilutive securities	31,188	20,211