Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 28, 2019 | May 01, 2019 | Aug. 31, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 28, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | VIDE | ||
Entity Registrant Name | VIDEO DISPLAY CORP | ||
Entity Central Index Key | 0000758743 | ||
Current Fiscal Year End Date | --02-28 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 353,421 | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 5,878,290 | ||
Entity Shell Company | false | ||
Entity Small Business | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Current assets | ||
Cash and cash equivalents | $ 410 | $ 81 |
Trading investments, at fair value | 180 | |
Accounts receivable, less allowance for bad debts of $16 and $19 | 1,746 | 664 |
Inventories, net | 3,451 | 4,584 |
Prepaid expenses and other current assets | 476 | 65 |
Total current assets | 6,292 | 5,765 |
Property, plant and equipment: | ||
Land | 154 | 154 |
Buildings | 2,760 | 2,799 |
Construction in progress | 73 | |
Machinery and equipment | 5,732 | 5,753 |
Total property, plant and equipment | 8,719 | 8,706 |
Accumulated depreciation | (7,398) | (7,243) |
Net property, plant and equipment | 1,321 | 1,463 |
Notes receivable due from officers and directors, noncurrent (Note 4) | 189 | 398 |
Investment in real estate partnership – related party (Note 9) | 375 | |
Other noncurrent assets | 5 | 26 |
Total assets | 7,807 | 8,027 |
Current liabilities | ||
Accounts payable | 1,008 | 1,054 |
Accrued liabilities | 382 | 877 |
Customer deposits | 865 | 439 |
Contract liabilities | 235 | |
Line of credit | 227 | |
Current maturities of long-term debt | 23 | 55 |
Deferred rent revenue | 60 | |
Note payable for acquisition (Note 13) | 100 | 100 |
Total current liabilities | 2,938 | 3,003 |
Long-term debt, less current maturities | 0 | 23 |
Notes payable to officers and directors, less current maturities (Note 4) | 189 | 398 |
Other noncurrent liabilities | 19 | 17 |
Total liabilities | 3,146 | 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; 5,878 outstanding at February 28, 2019 and 5,887 outstanding at February 28, 2018 | 7,293 | 7,293 |
Additional paid-in capital | 274 | 256 |
Retained earnings | 13,376 | 13,309 |
Treasury stock, 3,854 and 3,845 shares at February 28, 2019 and February 28, 2018, at cost | (16,282) | (16,272) |
Total shareholders' equity | 4,661 | 4,586 |
Total liabilities and shareholders' equity | 7,807 | 8,027 |
Officers and Directors | ||
Current assets | ||
Notes receivable due from officers and directors, current (Note 4) | 209 | 191 |
Current liabilities | ||
Notes payable | $ 325 | $ 191 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Accounts receivable, allowance for doubtful accounts | $ 16 | $ 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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Net sales | $ 15,023 | $ 11,944 |
Cost of goods sold | 10,983 | 11,354 |
Gross profit | 4,040 | 590 |
Operating expenses | ||
Selling and delivery | 844 | 967 |
General and administrative | 3,645 | 3,291 |
Operating Expenses, Total | 4,489 | 4,258 |
Operating loss | (449) | (3,668) |
Other income (expense) | ||
Interest income (expense), net | (19) | (20) |
Investment gain | 42 | 17 |
Other income, net | 493 | 733 |
Total other income, net | 516 | 730 |
Income (loss) before income taxes | 67 | (2,938) |
Income tax expense | ||
Net income (loss) | $ 67 | $ (2,938) |
Net income (loss) per share-basic | $ 0.01 | $ (0.50) |
Net income (loss) per share-diluted | $ 0.01 | $ (0.50) |
Average shares outstanding – basic | 5,879 | 5,890 |
Average shares outstanding – diluted | 6,079 | 5,890 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Treasury Stock | ||
Balance (in shares) at Feb. 28, 2017 | [1] | 5,891,000 | |||||
Balance at Feb. 28, 2017 | $ 7,458 | $ 7,293 | $ 186 | $ 16,247 | $ (16,268) | ||
Net income (loss) | $ (2,938) | (2,938) | |||||
Repurchase of treasury stock, shares | (3,600) | (4) | [1] | ||||
Repurchase of treasury stock | $ (2) | 2 | (4) | ||||
Share based compensation | 68 | 68 | |||||
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 (loss) | $ 67 | 67 | |||||
Repurchase of treasury stock, shares | (8,858) | (9) | [1] | ||||
Repurchase of treasury stock | $ (10) | (10) | |||||
Share based compensation | 18 | 18 | |||||
Balance (in shares) at Feb. 28, 2019 | [1] | 5,878,000 | |||||
Balance at Feb. 28, 2019 | $ 4,661 | $ 7,293 | $ 274 | $ 13,376 | $ (16,282) | ||
[1] | Common Shares are shown net of Treasury Shares |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Operating Activities | ||
Net income (loss) | $ 67 | $ (2,938) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 256 | 261 |
Change in provision for doubtful accounts | (3) | (1) |
Change in provision for inventory reserve | (540) | 500 |
Deferred rental income | (60) | (120) |
Non-cash charge for share based compensation | 18 | 68 |
(Gain) loss on disposal of assets | (33) | 21 |
Realized/unrealized gain on investments | (42) | (14) |
Changes in working capital items: | ||
Accounts receivable | (1,079) | 2,109 |
Inventories | 1,673 | 953 |
Prepaid expenses and other assets | (390) | 181 |
Accounts payable and accrued liabilities | (332) | (335) |
Customer deposits | 426 | 21 |
Other liabilities | 2 | 46 |
Contract liabilities | 235 | |
Net cash provided by operating activities | 198 | 752 |
Investing Activities | ||
Capital expenditures | (152) | (463) |
Investment in real estate partnership – related party (Note 9) | (500) | |
Proceeds from sale of investment in real estate partnership — related party (Note 9) | 166 | 125 |
Purchases of investments | (981) | (2,301) |
Acquisition of business, net of cash acquired (Note 13) | (100) | |
Proceeds from sale of equipment | 71 | |
Proceeds from sale of investments | 1,309 | 2,509 |
Net cash provided by (used in) investing activities | 413 | (730) |
Financing Activities | ||
Proceeds from related party loans | 406 | |
Repayments of long-term debt | (55) | (54) |
Proceeds from line of credit | 647 | 1,192 |
Repayments on line of credit | (874) | (1,202) |
Purchase of treasury stock | (10) | (4) |
Payments on marginal float | (106) | (8) |
Repayments of notes payable to officers and directors | (290) | |
Net cash used in financing activities | (282) | (76) |
Net change in cash and cash equivalents | 329 | (54) |
Cash and cash equivalents, beginning of year | 81 | 135 |
Cash and cash equivalents, end of year | $ 410 | $ 81 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 28, 2019 | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of Business Video Display Corporation and subsidiaries (the “Company”, ”our” or “we”) is a provider and manufacturer of video products, components, and systems for data display and presentation of electronic information media in various requirements and environments. The Company designs, engineers, manufactures, markets, distributes and installs technologically advanced display products and systems, from basic components to turnkey systems for government, military, aerospace, medical and commercial organizations. The Company serves the simulation, ruggedized displays, video wall design and installation, tempest products, tempest services, cathode ray tubes (CRTS) and keyboard manufacturing. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of all intercompany accounts and transactions. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. Fiscal Year All references herein to “2019” and “2018” mean the fiscal years ended February 28, 2019 and February 28, 2018, respectively. Basis of Accounting “The FASB Accounting Standards Codification” (“FASB ASC”) establishes the source of authoritative accounting standards generally accepted in the United States of America (“U.S. GAAP”) recognized by the Financial Accounting Standards Board (“FASB”). Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants. The FASB amends the FASB ASC through Accounting Standards Updates (“ASUs”). ASCs and ASUs are referred to throughout these consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Examples include provisions for returns, warranty reserves, bad debts, inventory reserves, valuations on deferred income tax assets, other intangible assets, accounting for percentage of completion contracts and the length of product life cycles and fixed asset lives. Actual results could vary from these estimates. Banking and Liquidity The accompanying 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. The Company had sustained losses for each of the three prior years, but did record a profit for the current fiscal year and has seen an increase in both its working capital and liquid assets during this current year. The historical losses resulted from a combination of low revenues at all divisions without a commensurate reduction of expenses. This year, the Company did increase sales and report a lower operating loss compared to the previous year. The Company’s working capital and liquid asset position is presented as follows: February 28, 2019 February 28, 2018 Working capital $ 3,354 $ 2,762 Liquid assets $ 410 $ 261 Management has implemented a plan to improve the liquidity of the Company. The Company has been implementing a plan to increase revenues at all the divisions, each structured to the particular division with an increase in revenues of over $3.0 million for fiscal year ended February 28, 2019. The Company is expanding its cyber security business by adding a second testing chamber for testing tempest products allowing it to increase the business in cyber testing services to supplement the product side of the business. The Company is also now involved in ruggedized displays, recently bringing on engineering familiar with these products. The Company implemented a plan to reduce expenses at the divisions, as well as at the corporate location during the fiscal year ending February 28, 2019 with the closing of two divisions and relocating the operations of those two divisions to other divisions within the Company with similar business activities. The Company is also in the process of moving the corporate accounting functions to the Cocoa, Florida location which allows the Company to become more efficient and save money on reducing redundant operations. The Company moved two of its plants in an effort to reduce expenses and increase efficiencies. The plant move at its subsidiary in Lexington, Kentucky, took longer than anticipated and negatively affected cash flow. The long term prospects for this subsidiary are promising and management is now seeing a turn around. The plant move at the Florida operations was successful as the Company merged two businesses and was able to keep production on schedule. Management continues to explore options to monetize certain long-term assets of the business, including the possible sale of a building in Pennsylvania. 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 the operational effectiveness of the operations, to sell strategic assets as noted above, 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. Revenue Recognition We recognize revenue when we transfer control of the promised products or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. We derive our revenue primarily from sales of simulation and video wall systems, cyber secure products, data displays, and keyboards. We exclude sales and usage-based taxes from revenue. Our simulation and video wall systems are custom-built (using commercial off-the-shelf We recognize revenue related to our cyber secure products, data displays, and keyboards at a point in time when control is transferred to the customer (generally upon shipment of the product to the customer). Timing of invoicing to customers may differ from timing of revenue recognition; however, our contracts do not include a significant financing component as substantially all of our invoices have terms of 30 days or less. We are applying the practical expedient to exclude from consideration any contracts with payment terms of one year or less and we never offer terms extending beyond one year. Contract liabilities represent amounts collected prior to having completed performance on certain of our simulation or video wall system projects. No revenue was recognized in 2019 from performance obligations that were satisfied in prior periods. As of February 28, 2019, approximately $521k of revenue is expected to be recognized from remaining performance obligations for simulation system projects (including deferred revenue as well as amounts that will be invoiced and recognized as revenue in future periods). We expect to recognize revenue these remaining performance obligations over the next 24 months. We have elected not to provide disclosures regarding remaining performance obligations for contracts with a term of 1 year or less. For the fiscal year ended February 28, 2019, revenue recognized by division of the Company is as follows (in thousands): Simulation and training (including video walls) $ 5,406 Cyber security 5,459 Data displays 2,533 Other computer products (keyboards) 1,436 Broadcast and control centers 189 Total revenue $ 15,023 Cash and Cash Equivalents and Investments We consider all highly liquid investments purchased with original maturities of three months or less to be cash or cash equivalents. Investment securities that are held by the Company, are bought and held principally for the purpose of selling them in the near term, are classified as “trading” and principally consist of equity securities and mutual funds. These trading investments are carried at fair value with realized gains or losses and changes in fair value included in operations. The Company liquidated its investment accounts in in fiscal 2019. Fair Value Measurements and Financial Instruments The 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 consisted of investment securities that were held for trading using Level 1 inputs. The Company liquidated all of its investment securities during the year ended February 28, 2019. The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of February 28, 2018 (in thousands): 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 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 rates that fluctuate with the market or are otherwise commensurate with the current market. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are customer obligations due under normal trade terms. The Company sells its products primarily to general contractors, government agencies, manufacturers, and consumers of video displays and CRTs. Management performs continuing credit evaluations of its customers’ financial condition and although the Company generally does not require collateral, letters of credit may be required from its customers in certain circumstances, such as foreign sales. The allowance for doubtful accounts is determined by reviewing all accounts receivable and applying credit loss experience to the current receivable portfolio with consideration given to the current condition of the economy, assessment of the financial position of the creditors as well as payment history and overall trends in past due accounts compared to established thresholds. The Company monitors credit exposure and assesses the adequacy of the allowance for doubtful accounts on a regular basis. Historically, the Company’s allowance has been sufficient for any customer write-offs. Management believes accounts receivable are stated at amounts expected to be collected. The following is a roll-forward of the allowance for doubtful accounts (in thousands): Description Balance Additions: Deductions Balance February 28, 2019 $ 19 $ — $ (3 ) $ 16 February 28, 2018 $ 20 $ — $ (1 ) $ 19 Warranty Reserves The Company records a liability for estimated warranty obligations at the date products are sold. Adjustments are made as new information becomes available. The warranty reserve is determined by recording a specific reserve for known warranty issues and a general reserve based on claims experience. The Company considers actual warranty claims compared to net sales, then adjusts its reserve liability accordingly. Actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. Management believes that historically its procedures have been adequate and does not anticipate that its assumptions are reasonably likely to materially change in the future. Inventories Inventories consist primarily of CRTs, electron guns, monitors, digital projectors, video components and electronic parts. Inventories are stated at the lower of cost (first-in, first-out) Reserves on inventories result in a charge to operations when the estimated net realizable value declines below cost. Management regularly reviews the Company’s investment in inventories for declines in value and establishes reserves when it is apparent that the expected net realizable value of the inventory falls below its carrying amount. The reserve for inventory obsolescence was approximately $0.9 million and $1.4 million at February 28, 2019 and February 28, 2018, respectively. The Company’s remaining business units utilize different inventory components than the divisions had in the past. The Company provides for an obsolescence reserve at each of its divisions to offset any obsolescence although most purchases are for current orders, which should reduce the amount of obsolescence in the future. The Company still has CRT inventory in stock and, although it believes the inventory will be sold in the future, will continue to reserve for any additional obsolescence. Property, Plant and Equipment Property, plant, and equipment are stated at cost. Depreciation is computed principally by the straight-line method for financial reporting purposes over the following estimated useful lives: Buildings – ten to twenty-five years; Machinery and Equipment – five to ten years. In addition, leasehold improvements are amortized over the shorter of the useful life of the asset or the related lease term. Depreciation expense totaled approximately $256 thousand and $261 thousand for the fiscal years ended 2019 and 2018, respectively. Substantial betterments to property, plant, and equipment are capitalized and routine repairs and maintenance are expensed as incurred. The Company is expected to invest an additional $0.1 million to upgrade the Cocoa, Florida location to accommodate the increase in business at the Florida facility. The Company does not anticipate any additional significant investments in capital assets for fiscal 2020. Management reviews and assesses long-lived assets, which includes property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In performing the review for recoverability, management estimates the future cash flows expected to result from the use of the asset. If the sum of the undiscounted expected cash flows is less than the carrying amount of the asset, an impairment loss is recognized based upon the estimated fair value of the asset. Share-Based Compensation Plans The Company accounts for employee share-based compensation under the fair value method and uses an option pricing model for estimating the fair value of stock options at the date of grant. Share Repurchase Program The Company has a share 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 Income Taxes The Company accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than possible enactments of changes in the tax laws or rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has determined that a valuation allowance is needed due to recent taxable net operating losses, the sale of profitable divisions and the limited taxable income in the carry back periods. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Deferred income taxes as of February 28, 2019 and February 28, 2018 reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and certain tax loss carryforwards, less any valuation allowance. The Company accounts for uncertain tax positions as required in that a position taken or expected to be taken in a tax return is recognized in the consolidated financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. As of February 28, 2019 and February 28, 2018 the Company did not have any material unrecognized tax benefits. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as components of interest expense and other expense, respectively, in arriving at pretax income. The Company did not have any interest and penalties accrued as of February 28, 2019 and February 28, 2018. The Company’s tax years ended February 28, 2018, 2017 and 2016 remain open to examination by the Internal Revenue Service (“IRS”). Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares outstanding during each year. Shares issued or repurchased during the year are weighted for the portion of the year that they were outstanding. Diluted earnings per share is calculated in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive common shares that were outstanding during the period. The following is a reconciliation of basic earnings (loss) per share to diluted earnings (loss) per share for 2019 and 2018, (in thousands, except for per share data): Net Average Outstanding Net 2019 Basic 67 5,879 0.01 Effect of dilution: Options — 200 — Diluted earnings per share 67 6,079 0.01 2018 Basic $ (2,938 ) 5,890 $ (0.50 ) Effect of dilution: Options — — — Diluted earnings per share $ (2,938 ) 5,890 $ (0.50 ) Stock options, debentures, and other liabilities convertible into 200,000 shares, of the Company’s common stock were anti-dilutive and, therefore, were excluded from the fiscal 2018 diluted earnings (loss) per share calculation. Segment Reporting An operating segment is defined as a component that engages in business activities, whose operating results are reviewed by the chief operating decision maker in order to make decisions about allocating resources, and for which discrete financial information is available. We operate and manage our business as one reportable segment. All of our divisions have similarities such as products and markets served; therefore, we believe they meet the criteria for aggregation under the applicable authoritative guidance and, as such, these operations are reported as one segment within the consolidated financial statements. Sales to foreign customers were 11% and 16% of consolidated net sales for fiscal 2019 and fiscal 2018, respectively. New Accounting Pronouncements Adopted in Fiscal 2019 Effective March 1, 2018 we adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers New Accounting Pronouncements Not Yet Adopted as of February 28, 2019 In February 2016, the FASB issued ASU 2016-02, right-of-use Leases right-of-use |
Inventories
Inventories | 12 Months Ended |
Feb. 28, 2019 | |
Inventories | Note 2. Inventories Inventories consisted of the following (in thousands): February 28, February 28, Raw materials $ 2,973 $ 4,657 Work-in-process 706 403 Finished goods 631 923 4,310 5,983 Reserves for obsolescence (859 ) (1,399 ) $ 3,451 $ 4,584 The following is a roll forward of the Inventory Reserves (in thousands): Description Balance Additions: Deductions Balance February 28, 2019 $ 1,399 $ 346 $ (886 ) $ 859 February 28, 2018 $ 1,899 $ 673 $ (1,173 ) $ 1,399 During fiscal 2019 and 2018, the Company wrote off or disposed of inventories of $0.9 and $1.1 million, respectively, of which all were previously reserved for through inclusion in the inventory reserve. |
Line of Credit and Long-Term De
Line of Credit and Long-Term Debt | 12 Months Ended |
Feb. 28, 2019 | |
Line of Credit and Long-Term Debt | Note 3. Line of Credit and Long-Term Debt The Company has a $0.5 million line of credit with the Brand Banking Company with no balance outstanding on the line at February 28, 2019. The line matures on August 15, 2019, is personally guaranteed by the Chief Executive Officer and has an interest rate of LIBOR plus 3.75%. The loan has no financial covenants. The only other commercial, non-related The Company had no outstanding margin account borrowings as of February 28, 2019 as all security investments were liquidated in fiscal 2019. The outstanding margin account borrowings as of February 28, 2018 was $0.1 million. The margin account borrowings were used to purchase marketable equity securities and were netted against the investments in the consolidated balance sheet to show net trading investments. The gross investments as of February 28, 2018 were $0.3 million leaving net investments of $0.2 million after the margin account borrowings of $0.1 million. The margin interest rate was 2%. Long-term debt consisted of the following (in thousands): February 28, February 28, Mortgage payable to bank; interest rate at BB&T Bank base rate plus 0.5% (6% as of February 28, 2019); monthly principal and interest payments of $5 thousand payable through July 2019; collateralized by land and building of Teltron Technologies, Inc. $ 23 $ 78 23 78 Less current maturities (23 ) (55 ) $ — $ 23 |
Notes Receivable and Payable to
Notes Receivable and Payable to Officers and Directors (Related Party Transactions) | 12 Months Ended |
Feb. 28, 2019 | |
Related Party Transactions [Abstract] | |
Notes Receivable and Payable to Officers and Directors (Related Party Transactions) | Note 4. Notes Receivable and Payable to Officers and Directors (Related Party Transactions) The Company borrowed funds from the Chief Executive officer during the fiscal 2019. The Company repaid $290 thousand of the funds borrowed during 2019, leaving a balance of $116 thousand at the year ended February 28, 2019. This is a non-interest bearing loan as repayment is expected in the short-term. 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, |
Accrued Expenses and Warranty O
Accrued Expenses and Warranty Obligations | 12 Months Ended |
Feb. 28, 2019 | |
Accrued Expenses and Warranty Obligations | Note 5. Accrued Expenses and Warranty Obligations The following provides a reconciliation of changes in the Company’s warranty reserve for fiscal years 2019 and 2018. The Company provides no other guarantees. 2019 2018 Balance at beginning of year 127 $ 127 Reduction in provision based on current year sales activity, net (77 ) 54 Warranty costs incurred (13 ) (54 ) Balance at end of year 37 $ 127 Accrued liabilities consisted of the following (in thousands): February 28, February 28, Accrued compensation and benefits $ 296 $ 342 Accrued warranty 37 127 Accrued other 49 408 $ 382 $ 877 |
Stock Options
Stock Options | 12 Months Ended |
Feb. 28, 2019 | |
Stock Options [Abstract] | |
Stock Options | Note 6. Stock Options Upon recommendation of the Board of Directors of the Company, on August 25, 2006, the shareholders of the Company approved the Video Display Corporation 2006 Stock Incentive Plan (“Plan”), whereby options to purchase up to 500,000 shares of the Company’s common stock may be granted and up to 100,000 restricted common stock shares may be awarded. Options may not be granted at a price less than the fair market value, determined on the day the options are granted. Options granted to a participant who is the owner of ten percent or more of the common stock of the Company may not be granted at a price less than 110% of the fair market value, determined on the day the options are granted. The exercise price of each option granted is fixed and may not be re-priced. Information regarding the stock option plans is as follows: Number of (in thousands) Average Per Outstanding at February 28, 2017 69 $ 3.46 Granted 200 0.82 Forfeited or expired (69 ) 3.46 Outstanding at February 28, 2018 200 $ 0.82 Granted — — Forfeited or expired — — Outstanding at February 28, 2019 200 $ 0.82 Options exercisable February 28, 2018 60 $ 0.82 February 28, 2019 107 $ 0.82 Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at February 28, 2019 (in thousands) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable at February 28, (in thousands) Weighted Average Exercise Price $0.80 – $1.00 200 7.0 $0.82 107 $0.82 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 be outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock. The Company calculates the historic volatility based on the weekly stock closing price, adjusted for dividends and stock splits. The fair value of the stock options is based on the stock price at the time the option is granted, the annualized volatility of the stock and the discount rate at the grant date. The Company granted 200 thousand stock options during fiscal 2018 with no options granted in fiscal 2019. The fair value assumptions used for the stock options granted in fiscal 2018 were as follows: Risk-free interest rate 1.50 % Expected dividend yield — Expected volatility 63 % Expected life in years 7 Service period in years 2 Weighted average calculated value of united granted $ 0.58 For the fiscal years ended February 28, 2019 and February 28, 2018, the Company recognized $18 and $68 thousand, respectively, of share-based compensation in general and administrative expense in the statements of operations. As of February 28, 2019, total unrecognized compensation costs related to stock options was $7 thousand. The amount of unrecognized share-based compensation cost will be recognized in fiscal 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 28, 2019 | |
Income Taxes | Note 7. Income Taxes Due to the historical net losses reported by the Company and the conclusion that is is more likely than not that the company will not be able to utilize such net operating losses, there is no provision or benefit recorded related to income taxes in the consolidated statements of operations. The rate reconciliation related to income taxes differs from the amount computed by applying the federal statutory rate of 21% for the fiscal year ended February 28, 2019 and 24% for the fiscal year ended February 28, 2018 is as follows (in thousands): Fiscal Year Ended February 28, February 28, Statutory U.S. federal income tax rate $ 17 $ (780 ) State income taxes, net of federal benefit 22 (31 ) Tax rate adjustment – 24% to 21% — 2,243 Valuation allowance (57 ) (1,593 ) Other 18 161 Taxes at effective income tax rate $ — $ — The sources of the temporary differences and carry forwards, and their effect on the net deferred tax assets consisted of the following (in thousands): February 28, February 28, Current deferred tax assets (liabilities): Uniform capitalization costs $ 85 $ 88 Inventory reserves 211 336 Accrued liabilities 44 70 Allowance for doubtful accounts 4 5 Other (10 ) (1 ) Valuation allowance (334 ) (498 ) Net current deferred tax assets — — Non-current Amortization of intangibles 2 19 Deferred rent — 14 Non-deductible 1,360 1,373 State net operating loss carry-forward 717 732 Federal net operating loss carry-forward 2,883 2,733 Federal tax credit carry forward 318 318 Foreign tax credit carry-forward 99 99 Basis difference of property, plant and equipment 43 33 Valuation allowance (5,422 ) (5,321 ) Net non-current — — Net deferred tax assets $ — $ — Deferred tax assets have been reduced by a valuation allowance because, in the opinion of management, it is more likely than not that the Company’s deferred tax assets will not be realized. The Company has determined that a 100% valuation allowance is needed due to historical cumulative taxable net operating losses and the limited taxable income related to the carry back periods. The Company has available federal and state net operating loss carryforwards of $13.7 million and $13.0 million, in the fiscal years ending February 28, 2019 and 2018, respectively. The net operating loss carryforwards expire at various dates through fiscal 2039, if not used. |
Benefit Plan
Benefit Plan | 12 Months Ended |
Feb. 28, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plan | Note 8. Benefit Plan The Company maintains defined contribution plans that are available to all employees. The Company did not make a contribution in the fiscal year ended February 28, 2019 or February 28, 2018 to the Company’s 401(k) plan. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 28, 2019 | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Operating Leases The Company leases various manufacturing facilities and transportation equipment under leases classified as operating leases, expiring at various dates through 2025. These leases provide that the Company pay taxes, insurance, and other expenses on the leased property and equipment. Rent expense for all leases was approximately $0.6 million and $1.1 million in fiscal 2019 and 2018, respectively. Future minimum rental payments due under these leases are as follows (in thousands): Fiscal Year Amount 2020 $ 577 2021 572 2022 572 2023 273 2024 190 2025 189 $ 2,373 Related Party Leases Included above are leases for manufacturing and warehouse facilities leased from the Company’s chief executive officer and Ordway Properties, LLC (an entity in which the chief executive officer has an ownership interest in) under operating leases expiring at various dates through 2025. Rent expense under these leases totaled approximately $0.6 million in fiscal 2019 and $0.5 million in fiscal 2018. 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. Future minimum rental payments due under leases with related parties are as follows (in thousands): Fiscal Year Amount 2020 $ 390 2021 390 2022 390 2023 256 2024 190 2025 189 $ 1,805 Legal Proceedings The Company is involved in various legal proceedings relating to claims arising in the ordinary course of business. On May 19, 2017, Lexel Imaging’s Chapter 11 Bankruptcy case was dismissed upon approval of a settlement agreement between Lexel Imaging (Lexel) and its landlord, Alidade Bull Lea, LLC (Alidade). The settlement agreement required Lexel to surrender possession of the rental property on or before September 30, 2017 and remit to Alidade all past due rent of approximately $232 thousand. Lexel was also required to make payments totaling $100 thousand into an escrow account by July 28, 2017. These funds were held by Alidade’s counsel until full and timely compliance with the settlement agreement was met, at which time the funds were returned to Lexel. The Company complied with all of the stipulations and successfully vacated the building on September 15, 2017. |
Concentrations of Risk and Majo
Concentrations of Risk and Major Customers | 12 Months Ended |
Feb. 28, 2019 | |
Concentrations of Risk and Major Customers | Note 10. Concentrations of Risk and Major Customers Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, accounts receivable and historically investments prior to liquidation. At times, such cash in banks are in excess of the FDIC insurance limit. The Company sells to a variety of domestic and international customers on an open-unsecured account basis, in certain cases requiring letters of credit. These customers principally operate in the medical, military, and avionics industries. The Company had direct and indirect net sales to the U.S. government, primarily the Department of Defense for training and simulation programs, which comprised approximately 53% and 50% of consolidated net sales in fiscal 2019 and 2018, respectively. Sales to foreign customers were 11% and 16% of consolidated net sales in fiscal 2019 and 2018, respectively. The Company had three customers who each comprised more than 10% of the Company’s sales in fiscal year 2019 (aggregated 45%). These accounts are in good standing with the Company. The Company attempts to minimize credit risk by reviewing all customers’ credit history before extending credit, by monitoring customers’ credit exposure on a daily basis and requiring letters of credit for certain sales. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Feb. 28, 2019 | |
Supplemental Cash Flow Information | Note 11. Supplemental Cash Flow Information Fiscal Year Ended (in thousands) February 28, February 28, 2019 2018 Cash paid for: Interest $ 20 $ 20 Income taxes, net of refunds $ — $ 24 Non-cash activity: Note receivable paid directly to officer $ 191 $ 175 Note payable to officer $ (191 ) $ (175 ) Reduction of accrued rent in lieu of cash received resulting from sale of remaining interest in Honeyhill interest (Note 9) $ 209 — Imputed interest expense $ 45 $ 62 Imputed interest income $ (45 ) $ (62 ) Capital additions transferred from inventory $ — $ 113 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Feb. 28, 2019 | |
Selected Quarterly Financial Data (unaudited) | Note 12. Selected Quarterly Financial Data (unaudited) The following table sets forth selected quarterly consolidated financial data for the fiscal years ended February 28, 2019 and February 28, 2018, respectively. The summation of quarterly net income (loss) per share may not agree with annual net income (loss) per share due to rounding: 2019 First Quarter Second Quarter Third Fourth Quarter (in thousands, except per share amounts) Net Sales $ 4,021 $ 3,321 $ 4,170 $ 3,511 Gross profit 996 879 1,096 1,069 Net income (loss) 54 (6 ) 71 (52 ) Basic net income (loss) per share $ 0.01 $ (0.00 ) $ 0.01 $ (0.01 ) Diluted net income (loss) per share $ 0.01 $ (0.00 ) $ 0.01 $ (0.01 ) 2018 First Quarter Second Quarter Third Fourth Quarter (in thousands, except per share amounts) Net Sales $ 3,897 $ 3,161 $ 1,666 $ 3,220 Gross profit (loss) 597 478 (144 ) (341 ) Net loss (266 ) (221 ) (1,203 ) (1,248 ) Basic net loss per share $ (0.05 ) $ (0.04 ) $ (0.20 ) $ (0.21 ) Diluted net loss per share $ (0.05 ) $ (0.04 ) $ (0.20 ) $ (0.21 ) |
Acquisition of Unicomp
Acquisition of Unicomp | 12 Months Ended |
Feb. 28, 2019 | |
Acquisition of Unicomp | Note 13. – Acquisition of Unicomp On October 23, 2017, the Company acquired Unicomp, Inc., a keyboard manufacturer for a purchase price of $200 thousand. The fair value related to the purchase price consideration was allocated to inventory. The Company paid $100 thousand in cash and a note with the seller for $100 thousand. The $100 thousand note is non-interest |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 28, 2019 | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of all intercompany accounts and transactions. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. |
Fiscal Year | Fiscal Year All references herein to “2019” and “2018” mean the fiscal years ended February 28, 2019 and February 28, 2018, respectively. |
Basis of Accounting | Basis of Accounting “The FASB Accounting Standards Codification” (“FASB ASC”) establishes the source of authoritative accounting standards generally accepted in the United States of America (“U.S. GAAP”) recognized by the Financial Accounting Standards Board (“FASB”). Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants. The FASB amends the FASB ASC through Accounting Standards Updates (“ASUs”). ASCs and ASUs are referred to throughout these consolidated financial statements. |
Use Of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Examples include provisions for returns, warranty reserves, bad debts, inventory reserves, valuations on deferred income tax assets, other intangible assets, accounting for percentage of completion contracts and the length of product life cycles and fixed asset lives. Actual results could vary from these estimates. |
Banking and Liquidity | Banking and Liquidity The accompanying 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. The Company had sustained losses for each of the three prior years, but did record a profit for the current fiscal year and has seen an increase in both its working capital and liquid assets during this current year. The historical losses resulted from a combination of low revenues at all divisions without a commensurate reduction of expenses. This year, the Company did increase sales and report a lower operating loss compared to the previous year. The Company’s working capital and liquid asset position is presented as follows: February 28, 2019 February 28, 2018 Working capital $ 3,354 $ 2,762 Liquid assets $ 410 $ 261 Management has implemented a plan to improve the liquidity of the Company. The Company has been implementing a plan to increase revenues at all the divisions, each structured to the particular division with an increase in revenues of over $3.0 million for fiscal year ended February 28, 2019. The Company is expanding its cyber security business by adding a second testing chamber for testing tempest products allowing it to increase the business in cyber testing services to supplement the product side of the business. The Company is also now involved in ruggedized displays, recently bringing on engineering familiar with these products. The Company implemented a plan to reduce expenses at the divisions, as well as at the corporate location during the fiscal year ending February 28, 2019 with the closing of two divisions and relocating the operations of those two divisions to other divisions within the Company with similar business activities. The Company is also in the process of moving the corporate accounting functions to the Cocoa, Florida location which allows the Company to become more efficient and save money on reducing redundant operations. The Company moved two of its plants in an effort to reduce expenses and increase efficiencies. The plant move at its subsidiary in Lexington, Kentucky, took longer than anticipated and negatively affected cash flow. The long term prospects for this subsidiary are promising and management is now seeing a turn around. The plant move at the Florida operations was successful as the Company merged two businesses and was able to keep production on schedule. Management continues to explore options to monetize certain long-term assets of the business, including the possible sale of a building in Pennsylvania. 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 the operational effectiveness of the operations, to sell strategic assets as noted above, 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. |
Revenue Recognition | Revenue Recognition We recognize revenue when we transfer control of the promised products or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. We derive our revenue primarily from sales of simulation and video wall systems, cyber secure products, data displays, and keyboards. We exclude sales and usage-based taxes from revenue. Our simulation and video wall systems are custom-built (using commercial off-the-shelf We recognize revenue related to our cyber secure products, data displays, and keyboards at a point in time when control is transferred to the customer (generally upon shipment of the product to the customer). Timing of invoicing to customers may differ from timing of revenue recognition; however, our contracts do not include a significant financing component as substantially all of our invoices have terms of 30 days or less. We are applying the practical expedient to exclude from consideration any contracts with payment terms of one year or less and we never offer terms extending beyond one year. Contract liabilities represent amounts collected prior to having completed performance on certain of our simulation or video wall system projects. No revenue was recognized in 2019 from performance obligations that were satisfied in prior periods. As of February 28, 2019, approximately $521k of revenue is expected to be recognized from remaining performance obligations for simulation system projects (including deferred revenue as well as amounts that will be invoiced and recognized as revenue in future periods). We expect to recognize revenue these remaining performance obligations over the next 24 months. We have elected not to provide disclosures regarding remaining performance obligations for contracts with a term of 1 year or less. For the fiscal year ended February 28, 2019, revenue recognized by division of the Company is as follows (in thousands): Simulation and training (including video walls) $ 5,406 Cyber security 5,459 Data displays 2,533 Other computer products (keyboards) 1,436 Broadcast and control centers 189 Total revenue $ 15,023 |
Cash and Cash Equivalents and Investments | Cash and Cash Equivalents and Investments We consider all highly liquid investments purchased with original maturities of three months or less to be cash or cash equivalents. Investment securities that are held by the Company, are bought and held principally for the purpose of selling them in the near term, are classified as “trading” and principally consist of equity securities and mutual funds. These trading investments are carried at fair value with realized gains or losses and changes in fair value included in operations. The Company liquidated its investment accounts in in fiscal 2019. |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments The 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 consisted of investment securities that were held for trading using Level 1 inputs. The Company liquidated all of its investment securities during the year ended February 28, 2019. The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of February 28, 2018 (in thousands): 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 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 rates that fluctuate with the market or are otherwise commensurate with the current market. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are customer obligations due under normal trade terms. The Company sells its products primarily to general contractors, government agencies, manufacturers, and consumers of video displays and CRTs. Management performs continuing credit evaluations of its customers’ financial condition and although the Company generally does not require collateral, letters of credit may be required from its customers in certain circumstances, such as foreign sales. The allowance for doubtful accounts is determined by reviewing all accounts receivable and applying credit loss experience to the current receivable portfolio with consideration given to the current condition of the economy, assessment of the financial position of the creditors as well as payment history and overall trends in past due accounts compared to established thresholds. The Company monitors credit exposure and assesses the adequacy of the allowance for doubtful accounts on a regular basis. Historically, the Company’s allowance has been sufficient for any customer write-offs. Management believes accounts receivable are stated at amounts expected to be collected. The following is a roll-forward of the allowance for doubtful accounts (in thousands): Description Balance Additions: Deductions Balance February 28, 2019 $ 19 $ — $ (3 ) $ 16 February 28, 2018 $ 20 $ — $ (1 ) $ 19 |
Warranty Reserves | Warranty Reserves The Company records a liability for estimated warranty obligations at the date products are sold. Adjustments are made as new information becomes available. The warranty reserve is determined by recording a specific reserve for known warranty issues and a general reserve based on claims experience. The Company considers actual warranty claims compared to net sales, then adjusts its reserve liability accordingly. Actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. Management believes that historically its procedures have been adequate and does not anticipate that its assumptions are reasonably likely to materially change in the future. |
Inventories | Inventories Inventories consist primarily of CRTs, electron guns, monitors, digital projectors, video components and electronic parts. Inventories are stated at the lower of cost (first-in, first-out) Reserves on inventories result in a charge to operations when the estimated net realizable value declines below cost. Management regularly reviews the Company’s investment in inventories for declines in value and establishes reserves when it is apparent that the expected net realizable value of the inventory falls below its carrying amount. The reserve for inventory obsolescence was approximately $0.9 million and $1.4 million at February 28, 2019 and February 28, 2018, respectively. The Company’s remaining business units utilize different inventory components than the divisions had in the past. The Company provides for an obsolescence reserve at each of its divisions to offset any obsolescence although most purchases are for current orders, which should reduce the amount of obsolescence in the future. The Company still has CRT inventory in stock and, although it believes the inventory will be sold in the future, will continue to reserve for any additional obsolescence. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant, and equipment are stated at cost. Depreciation is computed principally by the straight-line method for financial reporting purposes over the following estimated useful lives: Buildings – ten to twenty-five years; Machinery and Equipment – five to ten years. In addition, leasehold improvements are amortized over the shorter of the useful life of the asset or the related lease term. Depreciation expense totaled approximately $256 thousand and $261 thousand for the fiscal years ended 2019 and 2018, respectively. Substantial betterments to property, plant, and equipment are capitalized and routine repairs and maintenance are expensed as incurred. The Company is expected to invest an additional $0.1 million to upgrade the Cocoa, Florida location to accommodate the increase in business at the Florida facility. The Company does not anticipate any additional significant investments in capital assets for fiscal 2020. Management reviews and assesses long-lived assets, which includes property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In performing the review for recoverability, management estimates the future cash flows expected to result from the use of the asset. If the sum of the undiscounted expected cash flows is less than the carrying amount of the asset, an impairment loss is recognized based upon the estimated fair value of the asset. |
Share-Based Compensation Plans | Share-Based Compensation Plans The Company accounts for employee share-based compensation under the fair value method and uses an option pricing model for estimating the fair value of stock options at the date of grant. |
Share Repurchase Program | Share Repurchase Program The Company has a share 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 |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than possible enactments of changes in the tax laws or rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has determined that a valuation allowance is needed due to recent taxable net operating losses, the sale of profitable divisions and the limited taxable income in the carry back periods. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Deferred income taxes as of February 28, 2019 and February 28, 2018 reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and certain tax loss carryforwards, less any valuation allowance. The Company accounts for uncertain tax positions as required in that a position taken or expected to be taken in a tax return is recognized in the consolidated financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. As of February 28, 2019 and February 28, 2018 the Company did not have any material unrecognized tax benefits. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as components of interest expense and other expense, respectively, in arriving at pretax income. The Company did not have any interest and penalties accrued as of February 28, 2019 and February 28, 2018. The Company’s tax years ended February 28, 2018, 2017 and 2016 remain open to examination by the Internal Revenue Service (“IRS”). |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares outstanding during each year. Shares issued or repurchased during the year are weighted for the portion of the year that they were outstanding. Diluted earnings per share is calculated in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive common shares that were outstanding during the period. The following is a reconciliation of basic earnings (loss) per share to diluted earnings (loss) per share for 2019 and 2018, (in thousands, except for per share data): Net Average Outstanding Net 2019 Basic 67 5,879 0.01 Effect of dilution: Options — 200 — Diluted earnings per share 67 6,079 0.01 2018 Basic $ (2,938 ) 5,890 $ (0.50 ) Effect of dilution: Options — — — Diluted earnings per share $ (2,938 ) 5,890 $ (0.50 ) Stock options, debentures, and other liabilities convertible into 200,000 shares, of the Company’s common stock were anti-dilutive and, therefore, were excluded from the fiscal 2018 diluted earnings (loss) per share calculation. |
Segment Reporting | Segment Reporting An operating segment is defined as a component that engages in business activities, whose operating results are reviewed by the chief operating decision maker in order to make decisions about allocating resources, and for which discrete financial information is available. We operate and manage our business as one reportable segment. All of our divisions have similarities such as products and markets served; therefore, we believe they meet the criteria for aggregation under the applicable authoritative guidance and, as such, these operations are reported as one segment within the consolidated financial statements. Sales to foreign customers were 11% and 16% of consolidated net sales for fiscal 2019 and fiscal 2018, respectively. |
Recent Accounting Pronouncements | New Accounting Pronouncements Adopted in Fiscal 2019 Effective March 1, 2018 we adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers New Accounting Pronouncements Not Yet Adopted as of February 28, 2019 In February 2016, the FASB issued ASU 2016-02, right-of-use Leases right-of-use |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Working Capital and Liquid Asset Position | The Company’s working capital and liquid asset position is presented as follows: February 28, 2019 February 28, 2018 Working capital $ 3,354 $ 2,762 Liquid assets $ 410 $ 261 |
Schedule Of Revenue Recognized | For the fiscal year ended February 28, 2019, revenue recognized by division of the Company is as follows (in thousands): Simulation and training (including video walls) $ 5,406 Cyber security 5,459 Data displays 2,533 Other computer products (keyboards) 1,436 Broadcast and control centers 189 Total revenue $ 15,023 |
Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of February 28, 2018 (in thousands): 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 — — |
Roll-forward of Allowance for Doubtful Accounts | The following is a roll-forward of the allowance for doubtful accounts (in thousands): Description Balance Additions: Deductions Balance February 28, 2019 $ 19 $ — $ (3 ) $ 16 February 28, 2018 $ 20 $ — $ (1 ) $ 19 |
Reconciliation of Basic Earnings (Loss) Per Share to Diluted Earnings (Loss) Per Share | The following is a reconciliation of basic earnings (loss) per share to diluted earnings (loss) per share for 2019 and 2018, (in thousands, except for per share data): Net Average Outstanding Net 2019 Basic 67 5,879 0.01 Effect of dilution: Options — 200 — Diluted earnings per share 67 6,079 0.01 2018 Basic $ (2,938 ) 5,890 $ (0.50 ) Effect of dilution: Options — — — Diluted earnings per share $ (2,938 ) 5,890 $ (0.50 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Inventories | Inventories consisted of the following (in thousands): February 28, February 28, 2019 2018 Raw materials $ 2,973 $ 4,657 Work-in-process 706 403 Finished goods 631 923 4,310 5,983 Reserves for obsolescence (859 ) (1,399 ) $ 3,451 $ 4,584 |
Roll forward of Inventory Reserves | The following is a roll forward of the Inventory Reserves (in thousands): Additions: Description Balance at Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period February 28, 2019 $ 1,399 $ 346 $ (886 ) $ 859 February 28, 2018 $ 1,899 $ 673 $ (1,173 ) $ 1,399 |
Line of Credit and Long-Term _2
Line of Credit and Long-Term Debt (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Long- Term debt | Long-term debt consisted of the following (in thousands): February 28, February 28, Mortgage payable to bank; interest rate at BB&T Bank base rate plus 0.5% (6% as of February 28, 2019); monthly principal and interest payments of $5 thousand payable through July 2019; collateralized by land and building of Teltron Technologies, Inc. $ 23 $ 78 23 78 Less current maturities (23 ) (55 ) $ — $ 23 |
Accrued Expenses and Warranty_2
Accrued Expenses and Warranty Obligations (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Reconciliation of Changes in Warranty Reserve | The following provides a reconciliation of changes in the Company’s warranty reserve for fiscal years 2019 and 2018. The Company provides no other guarantees. 2019 2018 Balance at beginning of year 127 $ 127 Reduction in provision based on current year sales activity, net (77 ) 54 Warranty costs incurred (13 ) (54 ) Balance at end of year 37 $ 127 |
Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): February 28, February 28, Accrued compensation and benefits $ 296 $ 342 Accrued warranty 37 127 Accrued other 49 408 $ 382 $ 877 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Information Regarding Stock Option Plans | Information regarding the stock option plans is as follows: Number of (in thousands) Average Per Outstanding at February 28, 2017 69 $ 3.46 Granted 200 0.82 Forfeited or expired (69 ) 3.46 Outstanding at February 28, 2018 200 $ 0.82 Granted — — Forfeited or expired — — Outstanding at February 28, 2019 200 $ 0.82 Options exercisable February 28, 2018 60 $ 0.82 February 28, 2019 107 $ 0.82 Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at February 28, 2019 (in thousands) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable at February 28, (in thousands) Weighted Average Exercise Price $0.80 – $1.00 200 7.0 $0.82 107 $0.82 |
Assumptions Used in Calculating Fair Value and Calculated Weighted Average Value of Units | The fair value assumptions used for the stock options granted in fiscal 2018 were as follows: Risk-free interest rate 1.50 % Expected dividend yield — Expected volatility 63 % Expected life in years 7 Service period in years 2 Weighted average calculated value of united granted $ 0.58 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes Differs from Amount Computed by Applying Federal Statutory Rate | The rate reconciliation related to income taxes differs from the amount computed by applying the federal statutory rate of 21% for the fiscal year ended February 28, 2019 and 24% for the fiscal year ended February 28, 2018 is as follows (in thousands): Fiscal Year Ended February 28, February 28, Statutory U.S. federal income tax rate $ 17 $ (780 ) State income taxes, net of federal benefit 22 (31 ) Tax rate adjustment – 24% to 21% — 2,243 Valuation allowance (57 ) (1,593 ) Other 18 161 Taxes at effective income tax rate $ — $ — |
Sources of Temporary Differences and Carry Forwards, and Their Effect on Net Deferred Tax Asset | The sources of the temporary differences and carry forwards, and their effect on the net deferred tax assets consisted of the following (in thousands): February 28, February 28, Current deferred tax assets (liabilities): Uniform capitalization costs $ 85 $ 88 Inventory reserves 211 336 Accrued liabilities 44 70 Allowance for doubtful accounts 4 5 Other (10 ) (1 ) Valuation allowance (334 ) (498 ) Net current deferred tax assets — — Non-current Amortization of intangibles 2 19 Deferred rent — 14 Non-deductible 1,360 1,373 State net operating loss carry-forward 717 732 Federal net operating loss carry-forward 2,883 2,733 Federal tax credit carry forward 318 318 Foreign tax credit carry-forward 99 99 Basis difference of property, plant and equipment 43 33 Valuation allowance (5,422 ) (5,321 ) Net non-current — — Net deferred tax assets $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Future Minimum Rental Payments | Future minimum rental payments due under these leases are as follows (in thousands): Fiscal Year Amount 2020 $ 577 2021 572 2022 572 2023 273 2024 190 2025 189 $ 2,373 |
Chief Executive Officer and Ordway Properties, LLC | |
Future Minimum Rental Payments | Future minimum rental payments due under leases with related parties are as follows (in thousands): Fiscal Year Amount 2020 $ 390 2021 390 2022 390 2023 256 2024 190 2025 189 $ 1,805 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Supplemental Cash Flow Information | Fiscal Year Ended (in thousands) February 28, February 28, 2019 2018 Cash paid for: Interest $ 20 $ 20 Income taxes, net of refunds $ — $ 24 Non-cash activity: Note receivable paid directly to officer $ 191 $ 175 Note payable to officer $ (191 ) $ (175 ) Reduction of accrued rent in lieu of cash received resulting from sale of remaining interest in Honeyhill interest (Note 9) $ 209 — Imputed interest expense $ 45 $ 62 Imputed interest income $ (45 ) $ (62 ) Capital additions transferred from inventory $ — $ 113 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Disclosure Text Block [Abstract] | |
Quarterly Financial Information [Table Text Block] | The following table sets forth selected quarterly consolidated financial data for the fiscal years ended February 28, 2019 and February 28, 2018, respectively. The summation of quarterly net income (loss) per share may not agree with annual net income (loss) per share due to rounding: 2019 First Quarter Second Quarter Third Fourth Quarter (in thousands, except per share amounts) Net Sales $ 4,021 $ 3,321 $ 4,170 $ 3,511 Gross profit 996 879 1,096 1,069 Net income (loss) 54 (6 ) 71 (52 ) Basic net income (loss) per share $ 0.01 $ (0.00 ) $ 0.01 $ (0.01 ) Diluted net income (loss) per share $ 0.01 $ (0.00 ) $ 0.01 $ (0.01 ) 2018 First Quarter Second Quarter Third Fourth Quarter (in thousands, except per share amounts) Net Sales $ 3,897 $ 3,161 $ 1,666 $ 3,220 Gross profit (loss) 597 478 (144 ) (341 ) Net loss (266 ) (221 ) (1,203 ) (1,248 ) Basic net loss per share $ (0.05 ) $ (0.04 ) $ (0.20 ) $ (0.21 ) Diluted net loss per share $ (0.05 ) $ (0.04 ) $ (0.20 ) $ (0.21 ) |
Working Capital and Liquid Asse
Working Capital and Liquid Asset Position (Detail) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Liquidity And Capital Resources [Line Items] | ||
Working capital | $ 3,354 | $ 2,762 |
Liquid assets | $ 410 | $ 261 |
Schedule of Revenue Recognized
Schedule of Revenue Recognized (Detail) $ in Thousands | 12 Months Ended |
Feb. 28, 2019USD ($) | |
Revenues | $ 15,023 |
Simulation and training | |
Revenues | 5,406 |
Cyber security | |
Revenues | 5,459 |
Data displays | |
Revenues | 2,533 |
Other computer products | |
Revenues | 1,436 |
Broadcast and control centers | |
Revenues | $ 189 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019USD ($)Segment$ / sharesshares | Feb. 28, 2018USD ($)$ / sharesshares | Jan. 20, 2014shares | |
Summary Of Significant Accounting Policies Line Items [Line Items] | |||
Reserves for obsolescence | $ | $ 859 | $ 1,399 | |
Stock options, debentures, and other liabilities convertible into shares excluded from diluted earnings per (loss) share calculation | shares | shares | 200,000 | ||
Depreciation expense | $ | 256 | $ 261 | |
Investment on operating properties | $ | $ 100 | ||
Authorized stock repurchase | shares | 2,632,500 | ||
Additional authorized stock repurchase | shares | 1,500,000 | ||
Repurchase of treasury stock (in shares) | shares | 8,858 | 3,600 | |
Average cost of repurchase shares | $ / shares | $ 1.12 | $ 1.24 | |
Remaining repurchase of shares authorized | shares | 490,186 | ||
Increase In Revenues | $ | $ 3,000 | ||
Number of reportable segments | Segment | 1 | ||
Remaining performance obligations | $ | $ 521 | ||
Revenue, Performance Obligation, Description of Timing | We expect to recognize revenue these remaining performance obligations over the next 24 months. We have elected not to provide disclosures regarding remaining performance obligations for contracts with a term of 1 year or less. | ||
Building | Maximum | |||
Summary Of Significant Accounting Policies Line Items [Line Items] | |||
Useful life | 20 years | ||
Building | Minimum | |||
Summary Of Significant Accounting Policies Line Items [Line Items] | |||
Useful life | 10 years | ||
Machinery and Equipment | Maximum | |||
Summary Of Significant Accounting Policies Line Items [Line Items] | |||
Useful life | 10 years | ||
Machinery and Equipment | Minimum | |||
Summary Of Significant Accounting Policies Line Items [Line Items] | |||
Useful life | 5 years | ||
FLORIDA | |||
Summary Of Significant Accounting Policies Line Items [Line Items] | |||
Number of merged businesses | 2 | ||
Number of consolidated Facilities | 1 | ||
Customer Concentration Risk | Sales Revenue, Goods, Net | |||
Summary Of Significant Accounting Policies Line Items [Line Items] | |||
Concentration risk, percentage of consolidated net sales | 45.00% | ||
Customer Concentration Risk | Non-US | Sales Revenue, Goods, Net | |||
Summary Of Significant Accounting Policies Line Items [Line Items] | |||
Concentration risk, percentage of consolidated net sales | 11.00% | 16.00% |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured on a Recurring Basis (Detail) - Recurring Basis $ in Thousands | Feb. 28, 2018USD ($) |
Current trading investments | |
Total value of investments | $ 286 |
Current liabilities: | |
Margin balance | (106) |
Total value of liabilities | (106) |
Total | 180 |
Stocks, options, and ETF (long) | |
Current trading investments | |
Current trading investments | 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 | 286 |
Current liabilities: | |
Margin balance | (106) |
Total value of liabilities | (106) |
Total | 180 |
Level 1 Assets and Liabilities | Stocks, options, and ETF (long) | |
Current trading investments | |
Current trading investments | 291 |
Level 1 Assets and Liabilities | Stocks, options, and ETF (short) | |
Current trading investments | |
Current trading investments | $ (5) |
Roll-forward of Allowance for D
Roll-forward of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at Beginning of Period | $ 19 | $ 20 |
Deductions | (3) | (1) |
Balance at End of Period | $ 16 | $ 19 |
Reconciliation of Basic Earning
Reconciliation of Basic Earnings (Loss) Per Share to Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Net Income (Loss), Basic | $ (52) | $ 71 | $ (6) | $ 54 | $ (1,248) | $ (1,203) | $ (221) | $ (266) | $ 67 | $ (2,938) |
Net Income (Loss), Diluted earnings per share | $ 67 | $ (2,938) | ||||||||
Average Shares Outstanding, Basic | 5,879 | 5,890 | ||||||||
Average Shares Outstanding, Options | 200 | |||||||||
Average Shares Outstanding, Diluted earnings per share | 6,079 | 5,890 | ||||||||
Net Income(Loss) Per Share, Basic | $ (0.01) | $ 0.01 | $ 0 | $ 0.01 | $ (0.21) | $ (0.20) | $ (0.04) | $ (0.05) | $ 0.01 | $ (0.50) |
Net Income(Loss) Per Share, Diluted earnings per share | $ (0.01) | $ 0.01 | $ 0 | $ 0.01 | $ (0.21) | $ (0.20) | $ (0.04) | $ (0.05) | $ 0.01 | $ (0.50) |
Inventories- Additional Informa
Inventories- Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Inventory [Line Items] | ||
Wrote off or disposed off inventories | $ 0.9 | $ 1.1 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Inventory [Line Items] | ||
Raw materials | $ 2,973 | $ 4,657 |
Work-in-process | 706 | 403 |
Finished goods | 631 | 923 |
Inventory, Gross | 4,310 | 5,983 |
Reserves for obsolescence | (859) | (1,399) |
Inventory, Net | $ 3,451 | $ 4,584 |
Roll Forward of Inventory Reser
Roll Forward of Inventory Reserves (Detail) - Inventory Valuation Reserve - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Inventory [Line Items] | ||
Balance at Beginning of Period | $ 1,399 | $ 1,899 |
Additions:Charged to Costs and Expenses | 346 | 673 |
Deductions | (886) | (1,173) |
Balance at End of Period | $ 859 | $ 1,399 |
Line of Credit and Long-Term _3
Line of Credit and Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Debt Instrument [Line Items] | ||
Line of credit, current balance | $ 227 | |
Line of credit maturity date | Aug. 15, 2019 | |
Interest rate description | interest rate of LIBOR plus 3.75% | |
Outstanding margin account borrowings | $ 100 | |
Long-term debt, less current maturities | $ 0 | 23 |
Margin interest rate | 2.00% | |
Gross investments | 300 | |
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, less current maturities | $ 23 | |
Limited Liability Company [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit, current balance | 200 | |
Outstanding margin account borrowings | $ 100 | |
Brand Banking Company | ||
Debt Instrument [Line Items] | ||
Line of credit | $ 500 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Debt Instrument [Line Items] | ||
Notes and Mortgage Payable to bank | $ 23 | $ 78 |
Less current maturities | (23) | (55) |
Long-term debt, less current maturities | 0 | 23 |
Mortgage payable to bank | ||
Debt Instrument [Line Items] | ||
Notes and Mortgage Payable to bank | $ 23 | $ 78 |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) - Mortgage payable to bank $ in Thousands | 12 Months Ended |
Feb. 28, 2019USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument, interest rate terms | Mortgage payable to bank; interest rate at BB&T Bank base rate plus 0.5% (6% as of February 28, 2019); monthly principal and interest payments of $5 thousand payable through July 2019; collateralized by land and building of Teltron Technologies, Inc. |
Combined rate | 6.00% |
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% |
Notes Receivable and Payable _2
Notes Receivable and Payable to Officers and Directors (Related Party Transactions) -Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||||
Mar. 30, 2016 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Z-Axis Inc | |||||
Related Party Transaction [Line Items] | |||||
Notes receivable assigned with recourse | $ 912 | $ 398 | |||
Notes repurchase right, percentage of outstanding principle balance | 80.00% | ||||
Secured borrowing | $ 900 | ||||
Effective interest rate | 9.00% | ||||
Payment period | 56 months | ||||
Date of first required payment | Apr. 16, 2016 | ||||
Notes payable to officers and directors | 209 | ||||
Z-Axis Inc | Scenario, Forecast [Member] | |||||
Related Party Transaction [Line Items] | |||||
Notes receivable assigned with recourse | $ 189 | $ 209 | |||
Chief Executive Officer | |||||
Related Party Transaction [Line Items] | |||||
Note payable to officer | $ 290 | $ 116 |
Reconciliation of Changes in Wa
Reconciliation of Changes in Warranty Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Warranty Liability [Line Items] | ||
Balance at beginning of year | $ 127 | $ 127 |
Reduction in provision based on current year sales activity, net | (77) | 54 |
Warranty costs incurred | (13) | (54) |
Balance at end of year | $ 37 | $ 127 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 |
Schedule of Accrued Liabilities [Line Items] | |||
Accrued compensation and benefits | $ 296 | $ 342 | |
Accrued warranty | 37 | 127 | $ 127 |
Accrued other | 49 | 408 | |
Accrued Customer Deposit and Accrued Liabilities Current, Total | $ 382 | $ 877 |
Stock Options - Additional Info
Stock Options - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 25, 2006 | Feb. 28, 2019 | Feb. 28, 2018 |
Share based compensation arrangement expiration date | Aug. 25, 2006 | ||
Granted | 0 | 200,000 | |
Total unrecognized compensation costs related to stock options and shares of restricted stock granted | $ 7 | ||
Unrecognized compensation cost is expected to be recognized over a period | 1 year | ||
General and Administrative | |||
Share-based compensation | $ 18 | $ 68 | |
Stock Options | |||
Shares approved for Purchase | 500,000 | ||
Stock option granted price percentage | 10.00% | ||
Stock option granted ownership percentage | 110.00% | ||
Life of option granted | 7 years | ||
Vesting period | 9 years | ||
Restricted Stock | |||
Shares approved for Purchase | 100,000 |
Information Regarding Stock Opt
Information Regarding Stock Option Plans (Detail) - $ / shares shares in Thousands | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Number of Shares | ||
Beginning Balance | 200 | 69 |
Granted | 0 | 200 |
Forfeited or expired | (69) | |
Ending Balance | 200 | 200 |
Options exercisable | 107 | 60 |
Average Exercise Price Per Share | ||
Beginning Balance | $ 0.82 | $ 3.46 |
Granted | 0.82 | |
Forfeited or expired | 3.46 | |
Ending Balance | 0.82 | 0.82 |
Options exercisable | $ 0.82 | $ 0.82 |
Information Regarding Stock O_2
Information Regarding Stock Option Plans (Detail 1) - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Ranges of Exercise Prices | $ 0.82 | $ 0.82 | $ 3.46 |
Number Outstanding | 200 | 200 | 69 |
Weighted Average Remaining Contractual Life | 7 years | ||
Number of Exercisable | 107 | 60 | |
Weighted Average Exercise Price | $ 0.82 | $ 0.82 | |
Minimum [Member] | |||
Ranges of Exercise Prices | 0.80 | ||
Maximum [Member] | |||
Ranges of Exercise Prices | $ 1 |
Assumptions Used in Calculating
Assumptions Used in Calculating Fair Value and Calculated Weighted Average Value of Units (Detail) - $ / shares | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Weighted average calculated value of united granted | $ 0.82 | |
Stock Options | ||
Risk-free interest rate | 1.50% | |
Expected dividend yield | 8212.00% | |
Expected volatility | 63.00% | |
Expected life in years | 7 years | |
Service period in years | 2 years | |
Weighted average calculated value of united granted | $ 0.58 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Income Taxes [Line Items] | ||
Federal statutory rate | 21.00% | 24.00% |
Income tax expense | ||
Deferred tax assets valuation allowance percentage | 100.00% | |
Operating loss carryforwards expiration year | 2039 | |
Federal and State | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | $ 13.7 | $ 13 |
Provision for Income Taxes Diff
Provision for Income Taxes Differs from Amount Computed by Applying Federal Statutory Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Statutory U.S. federal income tax rate | $ 17 | $ (780) |
State income taxes, net of federal benefit | 22 | (31) |
Tax rate adjustment – 24% to 21% | 0 | 2,243 |
Valuation allowance | (57) | (1,593) |
Other | 18 | 161 |
Taxes at effective income tax rate |
Sources of Temporary Difference
Sources of Temporary Differences and Carry Forwards, and Their Effect on Net Deferred Tax Asset (Detail) - USD ($) $ in Thousands | Feb. 28, 2018 | Feb. 28, 2017 |
Current deferred tax assets(liabilities): | ||
Uniform capitalization costs | $ 85 | $ 88 |
Inventory reserves | 211 | 336 |
Accrued liabilities | 44 | 70 |
Allowance for doubtful accounts | 4 | 5 |
Other | (10) | (1) |
Valuation allowance | (334) | (498) |
Net current deferred tax assets | 0 | 0 |
Non-current deferred tax assets: | ||
Amortization of intangibles | 2 | 19 |
Deferred rent | 0 | 14 |
Non-deductible losses | 1,360 | 1,373 |
State net operating loss carry-forward | 717 | 732 |
Federal net operating loss carry-forward | 2,883 | 2,733 |
Federal tax credit carry forward | 318 | 318 |
Foreign tax credit carry-forward | 99 | 99 |
Basis difference of property, plant and equipment | 43 | 33 |
Valuation allowance | (5,422) | (5,321) |
Net non-current deferred tax assets | 0 | 0 |
Net deferred tax assets | $ 0 | $ 0 |
Benefit Plan - Additional Infor
Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined contribution | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jul. 03, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Feb. 28, 2019 | Feb. 28, 2018 |
Commitment And Contingencies [Line Items] | |||||
Lease Rent Expense | $ 600,000 | $ 1,100,000 | |||
Lexel Imaging Inc | |||||
Commitment And Contingencies [Line Items] | |||||
Escrow amount deposit | $ 100,000 | ||||
Escrow deposit period | Jul. 28, 2017 | ||||
Bankruptcy proceedings description | Lexel Imaging’s Chapter 11 Bankruptcy case was dismissed upon approval of a settlement agreement between Lexel Imaging (Lexel) and its landlord, Alidade Bull Lea, LLC (Alidade). The settlement agreement required Lexel to surrender possession of the rental property on or before September 30, 2017 and remit to Alidade all past due rent of approximately $232 thousand. | ||||
Lexel Imaging Inc | Property Lease Guarantee | |||||
Commitment And Contingencies [Line Items] | |||||
Litigation settlement amount | $ 232,000 | ||||
Maximum [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Lease Expiration Year | 2025 | ||||
Chief Executive Officer and Ordway Properties, LLC | |||||
Commitment And Contingencies [Line Items] | |||||
Lease Rent Expense | $ 600,000 | $ 500,000 | |||
Chief Executive Officer and Ordway Properties, LLC | Maximum [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Lease Expiration Year | 2025 | ||||
Honeyhill Properties LLC [Member] | |||||
Commitment And Contingencies [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 [Member] | Ordway Properties, LLC | |||||
Commitment And Contingencies [Line Items] | |||||
Reduction in sale of shares to related party, amount | $ 125,000 | ||||
Proceeds from ownership interest in cash | $ 166,457 | ||||
Forgiveness of rent accrued and owed | 208,543 | ||||
Ownership Interest Transfered | $ 375,000 |
Future Minimum Rental Payments
Future Minimum Rental Payments (Detail) $ in Thousands | Feb. 28, 2019USD ($) |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | |
2020 | $ 577 |
2021 | 572 |
2022 | 572 |
2023 | 273 |
2024 | 190 |
2025 | 189 |
Operating Leases, Future Minimum Payments Due, Total | $ 2,373 |
Future Minimum Rental Payment_2
Future Minimum Rental Payments under Related Party Leases (Detail) $ in Thousands | Feb. 28, 2019USD ($) |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | |
2020 | $ 577 |
2021 | 572 |
2022 | 572 |
2023 | 273 |
2024 | 190 |
2025 | 189 |
Operating Leases, Future Minimum Payments Due, Total | 2,373 |
Chief Executive Officer and Ordway Properties, LLC | |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | |
2020 | 390 |
2021 | 390 |
2022 | 390 |
2023 | 256 |
2024 | 190 |
2025 | 189 |
Operating Leases, Future Minimum Payments Due, Total | $ 1,805 |
Concentrations of Risk and Ma_2
Concentrations of Risk and Major Customers - Additional Information (Detail) - Customer Concentration Risk - customer | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Concentration Risk [Line Items] | ||
Number of customer | 3 | |
Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage of consolidated net sales | 45.00% | |
Sales Revenue, Net [Member] | Non-US [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage of consolidated net sales | 11.00% | 16.00% |
Sales Revenue, Net [Member] | UNITED STATES | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage of consolidated net sales | 53.00% | 50.00% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Cash paid for: | ||
Interest | $ 20 | $ 20 |
Income taxes, net of refunds | 0 | 24 |
Non-cash activity: | ||
Note receivable paid directly to officer | 191 | 175 |
Note payable to officer | (191) | (175) |
Imputed interest expense | 45 | 62 |
Imputed interest income | (45) | (62) |
Capital additions transferred from inventory | 0 | 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 9) | $ 209 | $ 0 |
Quarterly Consolidated Financia
Quarterly Consolidated Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | |
Selected Quarterly Financial Data [Line Items] | ||||||||||
Net Sales | $ 3,511 | $ 4,170 | $ 3,321 | $ 4,021 | $ 3,220 | $ 1,666 | $ 3,161 | $ 3,897 | $ 15,023 | $ 11,944 |
Gross profit | 1,069 | 1,096 | 879 | 996 | (341) | (144) | 478 | 597 | 4,040 | 590 |
Net income (loss) | $ (52) | $ 71 | $ (6) | $ 54 | $ (1,248) | $ (1,203) | $ (221) | $ (266) | $ 67 | $ (2,938) |
Basic net income (loss) per share | $ (0.01) | $ 0.01 | $ 0 | $ 0.01 | $ (0.21) | $ (0.20) | $ (0.04) | $ (0.05) | $ 0.01 | $ (0.50) |
Diluted net income (loss) per share | $ (0.01) | $ 0.01 | $ 0 | $ 0.01 | $ (0.21) | $ (0.20) | $ (0.04) | $ (0.05) | $ 0.01 | $ (0.50) |
Acquisition of Unicomp - Additi
Acquisition of Unicomp - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 23, 2017 | Feb. 28, 2018 |
Business Combination Allocation Of Purchase Price [Line Items] | ||
Cash paid on acquisition | $ 100 | |
Unicompinc. [Member] | ||
Business Combination Allocation Of Purchase Price [Line Items] | ||
Purchase price for acquisition | $ 200 | |
Cash paid on acquisition | 100 | |
Unicompinc. [Member] | Non-Interest Bearing Note Payable | ||
Business Combination Allocation Of Purchase Price [Line Items] | ||
Notes payable | $ 100 |