Document and Entity Information
Document and Entity Information | 6 Months Ended |
Aug. 31, 2018shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Aug. 31, 2018 |
Document Fiscal Year Focus | 2,019 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | VIDE |
Entity Registrant Name | VIDEO DISPLAY CORP |
Entity Central Index Key | 758,743 |
Current Fiscal Year End Date | --02-28 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 5,878,290 |
Entity Emerging Growth Company | false |
Entity Small Business | true |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2018 | Feb. 28, 2018 |
Current assets | ||
Cash and cash equivalents | $ 13 | $ 81 |
Trading investments, at fair value | 139 | 180 |
Accounts receivable, less allowance for doubtful accounts of $19 and $19 | 1,777 | 664 |
Note receivable due from officers and directors (Note 7) | 200 | 191 |
Inventories, net | 4,357 | 4,584 |
Costs in excess of billings | 41 | |
Prepaid expenses and other | 58 | 65 |
Total current assets | 6,585 | 5,765 |
Property, plant, and equipment | ||
Land | 154 | 154 |
Buildings | 2,753 | 2,799 |
Machinery and equipment | 5,758 | 5,753 |
Total property, plant and equipment | 8,665 | 8,706 |
Accumulated depreciation and amortization | (7,322) | (7,243) |
Net property, plant, and equipment | 1,343 | 1,463 |
Note receivable due from officers and directors (Note 7) | 296 | 398 |
Investment in real estate partnership-related party (Note 7) | 375 | |
Other assets | 6 | 26 |
Total assets | 8,230 | 8,027 |
Current liabilities | ||
Accounts payable | 1,522 | 1,054 |
Accrued liabilities | 357 | 877 |
Current maturities of long-term debt | 51 | 55 |
Customer deposits | 327 | 439 |
Notes payable | 100 | 100 |
Line of credit | 411 | 227 |
Deferred rent | 60 | |
Total current liabilities | 2,968 | 3,003 |
Long-term debt, less current maturities | 23 | |
Notes payable to officers and directors (Note 7) | 583 | 398 |
Other liabilities | 45 | 17 |
Total liabilities | 3,596 | 3,441 |
Shareholders' Equity | ||
Preferred stock, no par value - 10,000 shares authorized; none issued and outstanding | ||
Common stock, no par value - 50,000 shares authorized; 9,732 issued and 5,878 outstanding at August 31, 2018 and 9,732 issued and 5,887 outstanding at February 28, 2018 | 7,293 | 7,293 |
Additional paid-in capital | 265 | 256 |
Retained earnings | 13,358 | 13,309 |
Treasury stock, shares at cost; 3,854 at August 31, 2018 and 3,845 at February 28, 2018 | (16,282) | (16,272) |
Total shareholders' equity | 4,634 | 4,586 |
Total liabilities and shareholders' equity | 8,230 | 8,027 |
Officers and Directors | ||
Current liabilities | ||
Notes payable | $ 200 | $ 191 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2018 | Feb. 28, 2018 |
Accounts receivable, allowance for doubtful accounts | $ 19 | $ 19 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 9,732,000 | 9,732,000 |
Common stock, shares outstanding | 5,878,000 | 5,887,000 |
Treasury stock, shares | 3,854,000 | 3,845,000 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Net sales | $ 3,321 | $ 3,161 | $ 7,342 | $ 7,058 |
Cost of goods sold | 2,442 | 2,683 | 5,467 | 5,983 |
Gross profit | 879 | 478 | 1,875 | 1,075 |
Operating expenses | ||||
Selling and delivery | 190 | 226 | 438 | 469 |
General and administrative | 851 | 797 | 1,692 | 1,677 |
Operating Expenses, Total | 1,041 | 1,023 | 2,130 | 2,146 |
Operating loss | (162) | (545) | (255) | (1,071) |
Other income (expense) | ||||
Interest income/(expense) | (8) | (4) | (14) | (8) |
Investment income/(loss) | 108 | (7) | 70 | (6) |
Other, net | 56 | 333 | 248 | 603 |
Total other income (expense) | 156 | 322 | 304 | 589 |
(Loss) income before income taxes | (6) | (223) | 49 | (482) |
Income tax expense (benefit) | (2) | 0 | 5 | |
Net (loss) income | $ (6) | $ (221) | $ 49 | $ (487) |
Net (loss) income per share: | ||||
Net (loss) income per share-basic | $ 0 | $ (0.04) | $ 0.01 | $ (0.08) |
Net (loss) income per share - diluted | $ 0 | $ (0.04) | $ 0.01 | $ (0.08) |
Basic weighted average shares outstanding | 5,880 | 5,891 | 5,880 | 5,891 |
Diluted weighted average shares outstanding | 5,880 | 5,891 | 6,080 | 5,891 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statement of Shareholders' Equity - 6 months ended Aug. 31, 2018 - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Treasury Stock | ||
Balance (in shares) at Feb. 28, 2018 | [1] | 5,887,000 | |||||
Balance at Feb. 28, 2018 | $ 4,586 | $ 7,293 | $ 256 | $ 13,309 | $ (16,272) | ||
Net income | $ 49 | 49 | |||||
Treasury stock purchase, shares | 8,858 | (9,000) | [1] | ||||
Treasury stock purchase | $ (10) | (10) | |||||
Share based compensation | 9 | 9 | |||||
Balance (in shares) at Aug. 31, 2018 | [1] | 5,878,000 | |||||
Balance at Aug. 31, 2018 | $ 4,634 | $ 7,293 | $ 265 | $ 13,358 | $ (16,282) | ||
[1] | Common shares are shown net of treasury shares. |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Operating Activities | ||
Net income (loss) | $ 49 | $ (487) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 138 | 119 |
Provision for doubtful accounts | 3 | |
Provision for inventory reserve | 165 | 113 |
Non-cash charge for share based compensation | 9 | 48 |
Deferred rental income | (60) | (60) |
Realized gain on Unrealized loss on investments | (60) | 5 |
Other | (3) | |
Changes in working capital items: | ||
Accounts receivable | (1,113) | 1,144 |
Note receivable | 93 | 85 |
Inventories | 62 | 1,066 |
Prepaid expenses and other assets | 27 | 73 |
Customer deposits | (112) | (297) |
Accounts payable and accrued liabilities | (11) | (851) |
Cost, estimated earnings and billings on uncompleted contracts | (41) | |
Net cash provided by (used in) operating activities | (857) | 961 |
Investing Activities | ||
Capital expenditures | (17) | (343) |
Purchases of investments | (981) | (1,153) |
Investment in LLC | (500) | |
Sales of investments | 1,168 | 1,121 |
Net cash provided by (used in) investing activities | 170 | (875) |
Financing Activities | ||
Proceeds from related party loans | 287 | |
Proceeds from sale of investment in LLC | 375 | |
Repayment of loans from related parties | (94) | (85) |
Repayments of line of long-term debt | (27) | |
Proceeds from line of credit | 451 | 37 |
Purchase of treasury stock | (10) | |
Repayments of line of credit | (267) | |
Payments on marginal float | (96) | 32 |
Net cash provided by (used in) financing activities | 619 | (16) |
Net change in cash and cash equivalents | (68) | 70 |
Cash and cash equivalents, beginning of year | 81 | 135 |
Cash and cash equivalents, end of period | $ 13 | $ 205 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 31, 2018 | |
Summary of Significant Accounting Policies | Note 1. – Summary of Significant Accounting Policies The interim condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries after elimination of all significant intercompany accounts and transactions. As contemplated by the Securities and Exchange Commission (the “SEC” or “Commission”) instructions to Form 10-Q, year-end 10-K The condensed consolidated financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the interim condensed consolidated financial information included in this report contains all adjustments (all of which are normal and recurring) necessary for a fair presentation of the results for the interim periods. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The February 28, 2018 consolidated balance sheet data was derived from the audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). Effective March 1, 2018 we adopted Accounting Standards Update (“ASU”) No. 2014-09, The adoption of ASC 606 represents a change in accounting principle that will more closely align revenue recognition with the delivery of the Company’s goods and services and will provide the financial statement readers with enhanced disclosures. These standards provide guidance on recognizing revenue, including a five-step method to determine when revenue recognition is appropriate. Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations Step 5: Recognize revenue as the Company satisfies a performance obligation ASC 606 provides that revenue is recognized when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. We generally satisfy performance obligations upon shipment of the product or service to the customer. This is consistent with the time in which the customer obtains control of the product or service. For service contracts, which are transferred to the customer over time, revenue is recognized over time as the services are performed. Some contracts include installation services, which are completed in a short period of time and the revenue is recognized when the installation is complete. Customized products with no alternative future use to the Company, and that have an enforceable right to payment for performance completed to date, are also recorded over time. The Company considers this to be a faithful depiction of the transfer to the customer of revenue over time as the work or service is performed. Revenue is recognized as performance obligations are met, which includes design, manufacture of product/system, installation and set-up. percentage-of-completion Revenue is measured as the amount of consideration the Company expects to receive in exchange for the transfer of goods or services. Performance obligations in a contract are identified based on the products or services that are transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service on its own or together with other resources and are distinct from other promises in the contract. |
Financial Condition and Going C
Financial Condition and Going Concern | 6 Months Ended |
Aug. 31, 2018 | |
Financial Condition and Going Concern | Note 2. – Financial Condition and Going Concern The accompanying interim condensed consolidated financial statements were prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Even though the Company reported a small profit for the six month period ending August 31, 2018 and a slight increase in working capital for the six month period, the Company has sustained losses for each of the last three fiscal years and has seen overall a decline in working capital and liquid assets during this three year period. Annual losses over this time are due to a combination of decreasing revenues across certain divisions without a commensurate reduction of expenses. The Company’s working capital and liquid asset position are presented below (in thousands) as of August 31, 2018 and February 28, 2018: August 31, 2018 February 28, Working capital $ 3,617 $ 2,762 Liquid assets $ 152 $ 261 Management has implemented a plan to improve the liquidity of the Company. The Company has been fulfilling a plan to increase revenues at all the divisions, each structured to the particular division which has resulted with an increase in the current backlog and growth in revenues. The Company has reduced other expenses at the divisions, as well as at the corporate location with the expectation that further decreases can be achieved. The Company has completed the merger of the two Florida businesses into one facility and the relocation of Lexel Imaging into a new facility. These changes are projected to realize annual savings through reduced expenses. Management continues to explore options to monetize certain long-term assets of the business. If additional and more permanent capital is required to fund the operations of the Company, no assurance can be given that the Company will be able to obtain the capital on terms favorable to the Company, if at all. The ability of the Company to continue as a going concern is dependent upon the success of management’s plans to improve revenues, the operational effectiveness of continuing operations, the procurement of suitable financing, or a combination of these. The uncertainty regarding the potential success of management’s plan create substantial doubt about the ability of the Company to continue as a going concern. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 6 Months Ended |
Aug. 31, 2018 | |
Fair Value Measurements and Financial Instruments | Note 3. – Fair Value Measurements and Financial Instruments The Financial Accounting Standards Board’s (FASB’s) fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets measured at fair value on a recurring basis by the Company consist of investment securities held for trading using Level 1 inputs. The following table sets forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of August 31, 2018 and February 28, 2018 (in thousands): August 31, Level 1 Level 2 Level 3 Current trading investments: Stocks, options and ETF (long) 149 149 — — Total value of investments $ 149 $ 149 — — Current Liabilities: Margin balance (10 ) (10 ) Total value of liabilities (10 ) (10 ) Total $ 139 $ 139 — — February 28, Level 1 Level 2 Level 3 Current trading investments: Stocks, options and ETF (long) 291 291 — — Stocks, options and ETF (short) (5 ) (5 ) Total value of investments $ 286 $ 286 — — Current Liabilities: Margin balance (106 ) (106 ) Total value of liabilities (106 ) (106 ) Total $ 180 $ 180 — — The Company’s financial instruments which are not measured at fair value on the consolidated balance sheets include cash, accounts receivable, short-term liabilities, and debt. The estimated fair value of these financial instruments were determined using Level 2 inputs and approximate cost due to the short period of time to maturity. Recorded amounts of long-term debt are considered to approximate fair value due to either interest rates that fluctuate with the market or are otherwise commensurate with the current market. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Aug. 31, 2018 | |
Recent Accounting Pronouncements | Note 4. – Recent Accounting Pronouncements In May, 2014, the FASB issued ASU 2014-09, 2014-09 2014-09 In February 2016, the FASB issued ASU 2016-02, 2016-02 |
Inventories
Inventories | 6 Months Ended |
Aug. 31, 2018 | |
Inventories | Note 5. – Inventories Inventories are stated at the lower of cost (first in, first out) or market and consisted of the following (in thousands): August 31, February 28, Raw materials $ 4,237 $ 4,657 Work-in-process 709 403 Finished goods 975 923 5,921 5,983 Reserves for obsolescence (1,564 ) (1,399 ) $ 4,357 $ 4,584 |
Long-Term Debt and Other Obliga
Long-Term Debt and Other Obligations | 6 Months Ended |
Aug. 31, 2018 | |
Long-Term Debt and Other Obligations | Note 6. – Long-Term Debt and Other Obligations The Company has a $0.5 million line of credit with the Brand Banking Company with a current balance of $0.4 million at August 31, 2018. The line matures on December 13, 2018, is personally guaranteed by the Chief Executive Officer and has an interest rate of LIBOR plus 3.75%. The Company has outstanding debt current of $0.1 million related to a previous acquisition secured by a building owned by its subsidiary, Teltron Technologies, Inc. in Birdsboro, PA. The Company had $0.01 margin account borrowing as of August 31, 2018 and $0.1 million as of February 28, 2018. The margin account borrowings are used to purchase marketable equity securities and are netted against the investments in the balance sheet to show net trading investments. The gross investments were $0.3 million leaving net investments of $0.2 million after the margin account borrowings of $0.1 million at February 28, 2018. The margin interest rate is 3.75%. Long-term debt consisted of the following (in thousands): August 31, February 28, 2018 2018 Mortgage payable to bank; interest rate at BB&T Bank base rate plus 0.5% (5.25% as of August 31, 2018); monthly principal and interest payments of $5 thousand payable through July, 2019; collateralized by land and building of Teltron Technologies, Inc. $ 51 $ 78 51 78 Less current maturities (51 ) (55 ) $ — $ 23 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Aug. 31, 2018 | |
Related Party Transactions | Note 7. – Related Party Transactions On March 30, 2016, the Company entered into an assignment with recourse of the note receivable from Z-Axis (Z-Axis) Z-Axis Z-Axis Z-Axis, 860-10. For the six months ending August 31, 2018, the Company borrowed $287 thousand from Ronald D. Ordway, the CEO of the Company. As of August 31, 2018, the Company owes in aggregate $783 thousand to officers and directors. On July 3, 2017, the Company and Ordway Properties, LLC purchased Honeyhill Properties, LLC which is the owner of the building at 510 Henry Clay Blvd. in Lexington, KY for $1,500,000. Video Display Corporation invested $500,000 towards the purchase price and accounted for the investment under the cost method since Ordway Properties, LLC was the majority owner. During the period ending November 30, 2017 the Company reduced its share in the LLC by $125,000, selling to Ordway Properties, LLC. In addition, during the period ending May 31, 2018, the Company’s sold its remaining $375,000 ownership interest to Ordway Properties, LLC receiving $166,457 in cash and $208,543 in forgiveness of rent that was accrued and owed. There was no gain or loss on the sale. The building is the facility for the Company’s Lexel Imaging subsidiary, which had previously signed a five (5) year lease agreement with Honeyhill Properties, LLC on June 15, 2017. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Aug. 31, 2018 | |
Supplemental Cash Flow Information | Note 8. – Supplemental Cash Flow Information Supplemental cash flow information is as follows (in thousands): Six Months Ended 2018 2017 Cash paid for: Interest $ 13 $ 8 Non-cash Note receivable paid directly to officer $ 94 85 Note payable to officer $ 94 85 Reduction of accrued rent in lieu of cash received resulting from sale of remaining interest in Honeyhill interest (Note 7) $ 209 — Imputed interest expense $ 25 33 Imputed interest income $ (25 ) (33 ) Capital additions transferred from inventory $ — 113 |
Shareholder's Equity
Shareholder's Equity | 6 Months Ended |
Aug. 31, 2018 | |
Shareholder's Equity | Note 9. – Shareholder’s Equity Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing income or loss available to common shareholders by the weighted average number of common shares outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Diluted earnings (loss) per share is calculated in a manner consistent with that of basic earnings (loss) per share while giving effect to all potentially dilutive common shares that were outstanding during the period. The Company excluded all common equivalent shares to purchase common stock from the calculation of diluted net loss per share because all securities are anti-dilutive for the three months ended August 31, 2018 and 2017 and for the six months ended August 31, 2017. For the six months ended August 31, 2018, there were 200,000 common equivalent shares included in diluted earnings per share. In addition, the number of anti-dilutive common equivalent shares during 2018 and 2017 was immaterial. Stock-Based Compensation Plans For the six-month The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model, which requires the Company to estimate the expected term of the stock option grants and expected future stock price volatility over the term. The term represents the expected period of time the Company believes the options will remain outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock, which represents the standard deviation of the differences in the weekly stock closing price, adjusted for dividends and stock splits. No options were granted for the six month period ending August 31, 2018 with 200,000 options granted during the six month period ended August 31, 2017. Stock Repurchase Program The Company has a stock repurchase program, pursuant to which it had been authorized to repurchase up to 2,632,500 shares of the Company’s common stock in the open market. On January 20, 2014, the Board of Directors of the Company approved a one-time For the six months ending August 31, 2018, the Company repurchased 8,858 shares at an average cost of $1.12 per share and for the six months ending August 31, 2017, the Company did not purchase any shares of the Video Display Corporation stock. Under the Company’s stock repurchase program, an additional 490,186 shares remain authorized to be repurchased by the Company at August 31, 2018. |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 31, 2018 | |
Income Taxes | Note 10. – Income Taxes Due to the Company’s overall and historical net loss position, no income tax expense was reported for the six month period ending August 31, 2018 with only $5 thousand reported for the comparable period in the prior period. Due to continued losses reported by the Company, a full valuation allowance was allocated to the deferred tax asset created by these losses. Income tax expense reported during the six month period ending August 31, 2017 resulted from state taxes owed related to the Lexel Imaging subsidiary which is located in Kentucky, due to profitability reported related to Lexel in 2017 with no offsetting state net operating losses. There was no similar income tax expense reported for fiscal 2018 due to net operating losses generated by Lexel. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Aug. 31, 2018 | |
Legal Proceedings | Note 11. – Legal Proceedings The Company is involved in various legal proceedings related to claims arising in the ordinary course of business. We are not currently a party to any legal proceedings the result of which we believe is likely to have a material adverse impact on our business, financial position, results of operation or cash flows. |
Financial Condition and Going_2
Financial Condition and Going Concern (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Working Capital and Liquid Asset Position | The Company’s working capital and liquid asset position are presented below (in thousands) as of August 31, 2018 and February 28, 2018: August 31, 2018 February 28, Working capital $ 3,617 $ 2,762 Liquid assets $ 152 $ 261 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of August 31, 2018 and February 28, 2018 (in thousands): August 31, Level 1 Level 2 Level 3 Current trading investments: Stocks, options and ETF (long) 149 149 — — Total value of investments $ 149 $ 149 — — Current Liabilities: Margin balance (10 ) (10 ) Total value of liabilities (10 ) (10 ) Total $ 139 $ 139 — — February 28, Level 1 Level 2 Level 3 Current trading investments: Stocks, options and ETF (long) 291 291 — — Stocks, options and ETF (short) (5 ) (5 ) Total value of investments $ 286 $ 286 — — Current Liabilities: Margin balance (106 ) (106 ) Total value of liabilities (106 ) (106 ) Total $ 180 $ 180 — — |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Inventories | Inventories are stated at the lower of cost (first in, first out) or market and consisted of the following (in thousands): August 31, February 28, Raw materials $ 4,237 $ 4,657 Work-in-process 709 403 Finished goods 975 923 5,921 5,983 Reserves for obsolescence (1,564 ) (1,399 ) $ 4,357 $ 4,584 |
Long-Term Debt and Other Obli_2
Long-Term Debt and Other Obligations (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Long- Term debt | Long-term debt consisted of the following (in thousands): August 31, February 28, 2018 2018 Mortgage payable to bank; interest rate at BB&T Bank base rate plus 0.5% (5.25% as of August 31, 2018); monthly principal and interest payments of $5 thousand payable through July, 2019; collateralized by land and building of Teltron Technologies, Inc. $ 51 $ 78 51 78 Less current maturities (51 ) (55 ) $ — $ 23 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Supplemental Cash Flow Information | Supplemental cash flow information is as follows (in thousands): Six Months Ended 2018 2017 Cash paid for: Interest $ 13 $ 8 Non-cash Note receivable paid directly to officer $ 94 85 Note payable to officer $ 94 85 Reduction of accrued rent in lieu of cash received resulting from sale of remaining interest in Honeyhill interest (Note 7) $ 209 — Imputed interest expense $ 25 33 Imputed interest income $ (25 ) (33 ) Capital additions transferred from inventory $ — 113 |
Working Capital and Liquid Asse
Working Capital and Liquid Asset Position (Detail) - USD ($) $ in Thousands | Aug. 31, 2018 | Feb. 28, 2018 |
Liquidity And Capital Resources [Line Items] | ||
Working capital | $ 3,617 | $ 2,762 |
Liquid assets | $ 152 | $ 261 |
Financial Condition and Going_3
Financial Condition and Going Concern - Additional Information (Detail) | 6 Months Ended |
Aug. 31, 2018Business | |
Line of Credit Facility [Line Items] | |
Number of business merged | 2 |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured on a Recurring Basis (Detail) - Recurring Basis - USD ($) $ in Thousands | Aug. 31, 2018 | Feb. 28, 2018 |
Current trading investments | ||
Total value of investments | $ 149 | $ 286 |
Current Liabilities: | ||
Margin balance | (10) | (106) |
Total value of liabilities | (10) | (106) |
Total | 139 | 180 |
Stocks, options, and ETF (long) | ||
Current trading investments | ||
Current trading investments | 149 | 291 |
Stocks, options, and ETF (short) | ||
Current trading investments | ||
Current trading investments | (5) | |
Level 1 Assets and Liabilities | ||
Current trading investments | ||
Total value of investments | 149 | 286 |
Current Liabilities: | ||
Margin balance | (10) | (106) |
Total value of liabilities | (10) | (106) |
Total | 139 | 180 |
Level 1 Assets and Liabilities | Stocks, options, and ETF (long) | ||
Current trading investments | ||
Current trading investments | $ 149 | 291 |
Level 1 Assets and Liabilities | Stocks, options, and ETF (short) | ||
Current trading investments | ||
Current trading investments | $ (5) |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Aug. 31, 2018 | Feb. 28, 2018 |
Inventory [Line Items] | ||
Raw materials | $ 4,237 | $ 4,657 |
Work-in-process | 709 | 403 |
Finished goods | 975 | 923 |
Inventory, Gross | 5,921 | 5,983 |
Reserves for obsolescence | (1,564) | (1,399) |
Inventory, Net | $ 4,357 | $ 4,584 |
Long-Term Debt and Other Obli_3
Long-Term Debt and Other Obligations - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Aug. 31, 2018 | Feb. 28, 2018 | |
Debt Instrument [Line Items] | ||
Line of credit, current balance | $ 411 | $ 227 |
Line of credit maturity date | Dec. 13, 2018 | |
Interest rate description | Interest rate of LIBOR plus 3.75% | |
Long-term debt, current | $ 51 | 55 |
Trading investments, at fair value | $ 139 | $ 180 |
Margin interest rate | 3.75% | 3.75% |
Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Line of credit facility, interest rate | 3.75% | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, current | $ 100 | |
Limited Liability Company [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding margin account borrowings | 10 | $ 100 |
Gross investments | 300 | |
Trading investments, at fair value | $ 200 | |
Brand Banking Company | ||
Debt Instrument [Line Items] | ||
Line of credit | 500 | |
Line of credit, current balance | $ 400 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | Aug. 31, 2018 | Feb. 28, 2018 |
Debt Instrument [Line Items] | ||
Notes and Mortgage Payable to bank | $ 51 | $ 78 |
Less current maturities | (51) | (55) |
Long-term debt, less current maturities | 23 | |
Mortgage payable to bank | ||
Debt Instrument [Line Items] | ||
Notes and Mortgage Payable to bank | $ 51 | $ 78 |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) - Mortgage payable to bank $ in Thousands | 6 Months Ended |
Aug. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument, interest rate terms | Mortgage payable to bank; interest rate at BB&T Bank base rate plus 0.5% (5.25% as of August 31, 2018); monthly principal and interest payments of $5 thousand payable through July, 2019; collateralized by land and building of Teltron Technologies, Inc. |
Combined rate | 5.25% |
Mortgage Payable to bank monthly principal and interest payments payable | $ 5 |
Debt Instrument Maturity period | 2019-07 |
Base Rate | |
Debt Instrument [Line Items] | |
Interest rate | 0.50% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Jul. 03, 2017 | Mar. 30, 2016 | Aug. 31, 2018 | Nov. 30, 2017 | Feb. 28, 2018 |
Related Party Transaction [Line Items] | |||||
Proceeds from related party loans | $ 287,000 | ||||
Z-Axis Inc | |||||
Related Party Transaction [Line Items] | |||||
Notes receivable assigned with recourse | $ 912,000 | 496,000 | $ 589,000 | ||
Notes repurchase right, percentage of outstanding principle balance | 80.00% | ||||
Secured borrowing | $ 900,000 | ||||
Effective interest rate | 9.00% | ||||
Payment period | 56 months | ||||
Date of first required payment | Apr. 16, 2016 | ||||
Ronald D. Ordway | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from related party loans | 287,000 | ||||
Officers and Directors | |||||
Related Party Transaction [Line Items] | |||||
Amount owes to officers and directors | 783,000 | ||||
Honeyhill Properties LLC | |||||
Related Party Transaction [Line Items] | |||||
Purchase of related party | $ 1,500,000 | ||||
Investment towards cost method investments | $ 500,000 | ||||
Gain (loss) on sale of business | 0 | ||||
Honeyhill Properties LLC | Ordway Properties, LLC | |||||
Related Party Transaction [Line Items] | |||||
Reduction in sale of shares to related party, amount | $ 125,000 | ||||
Ownership interest transfered | 375,000 | ||||
Proceeds from ownership interest in cash | 166,457 | ||||
Forgiveness of rent accrued and owed | $ 208,543 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Cash paid for: | ||
Interest | $ 13 | $ 8 |
Non-cash activity: | ||
Note receivable paid directly to officer | 94 | 85 |
Note payable to officer | 94 | 85 |
Imputed interest expense | 25 | 33 |
Imputed interest income | (25) | (33) |
Capital additions transferred from inventory | $ 113 | |
Ordway Properties, LLC | ||
Non-cash activity: | ||
Reduction of accrued rent in lieu of cash received resulting from sale of remaining interest in Honeyhill interest (Note 7) | $ 209 |
Shareholder's Equity - Addition
Shareholder's Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Jan. 20, 2014 | |
Stock Based Compensation [Line Items] | |||
Common equivalent shares included in diluted earnings per shares | 200,000 | ||
Total unrecognized compensation costs related to stock options and shares of restricted stock granted | $ 16 | $ 45 | |
Unrecognized compensation cost is expected to be recognized over a period | 2 years | ||
Stock options granted | 0 | 200,000 | |
Authorized stock repurchase | 2,632,500 | ||
Additional authorized stock repurchase | 1,500,000 | ||
Repurchase of treasury stock (in shares) | 8,858 | 0 | |
Remaining repurchase of shares authorized | 490,186 | ||
Average cost of repurchase shares | $ 1.12 | ||
General and Administrative | |||
Stock Based Compensation [Line Items] | |||
Share-based compensation | $ 9 | $ 48 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income Taxes [Line Items] | |||
Income tax expense | $ (2) | $ 0 | $ 5 |