Sono-Tek (SOTK) 10-Q 14 Jan 15 2015 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Nov. 30, 2014	Jan. 07, 2015
Document And Entity Information
Entity Registrant Name	SONO TEK CORP
Entity Central Index Key	806172
Document Type	10-Q
Document Period End Date	30-Nov-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-26
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		14,718,162
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Nov. 30, 2014	Feb. 28, 2014
Current Assets:
Cash and cash equivalents	$2,450,848	$3,232,021
Marketable Securities	1,637,715	630,794
Accounts receivable (less allowance of $38,000 and $32,000 at August 31 and February 28, respectively)	929,584	860,296
Inventories, net	2,152,335	1,674,815
Prepaid expenses and other current assets	81,640	160,373
Total current assets	7,252,122	6,558,299
Land	250,000	250,000
Buildings, net	2,029,688	2,071,875
Equipment, furnishings and leasehold improvements, net	606,875	637,138
Intangible and other assets, net	178,906	171,828
Deferred tax asset	90,021	90,021
TOTAL ASSETS	10,407,612	9,779,161
Current Liabilities:
Accounts payable	688,065	556,194
Accrued expenses	784,963	565,121
Customer deposits	327,215	362,846
Current maturities of long term debt	172,042	191,466
Income taxes payable	167,292	129,398
Total current liabilities	2,139,577	1,805,025
Long term debt, less current maturities	1,354,570	1,479,058
Total liabilities	3,494,147	3,284,083
Commitments and Contingencies
Stockholders' Equity
Common stock, $.01 par value; 25,000,000 shares authorized, 14,718,162 and 14,708,518 shares issued and outstanding, at August 31 and February 28, respectively	147,182	147,085
Additional paid-in capital	8,760,073	8,725,883
Accumulated deficit	-1,993,790	-2,377,890
Total stockholders' equity	6,913,465	6,495,078
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$10,407,612	$9,779,161

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Aug. 31, 2014	Feb. 28, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$41,000	$32,000
Common stock, par value	$0.01	$0.01
Common stock, authorized	25,000,000	25,000,000
Common stock, issued shares	14,718,162	14,708,518
Common stock, outstanding shares	14,718,162	14,708,518

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Nov. 30, 2014	Nov. 30, 2013	Nov. 30, 2014	Nov. 30, 2013
Income Statement [Abstract]
Net Sales	$2,851,906	$2,650,225	$7,906,332	$7,561,998
Cost of Goods Sold	1,452,217	1,435,055	4,056,590	3,963,181
Gross Profit	1,399,689	1,215,170	3,849,742	3,598,817
Operating Expenses
Research and product development costs	249,292	204,738	740,122	661,975
Marketing and selling expenses	549,285	462,685	1,646,979	1,451,310
General and administrative costs	276,375	225,301	769,639	747,896
Rental operations expense	36,437	48,791	118,011	118,890
Total Operating Expenses	1,111,389	941,515	3,274,751	2,980,071
Operating Income	288,300	273,655	574,991	618,746
Interest Expense	-15,754	-27,152	-49,135	-82,396
Other (expense) income	6,169	18,169	23,215	-5,405
Income form Operations Before Income Taxes	278,715	264,672	549,071	530,945
Income Tax Expense	76,283	93,425	164,971	180,521
Net Income	$202,432	$171,247	$384,100	$350,424
Basic Earnings Per Share	$0.01	$0.01	$0.03	$0.02
Diluted Earnings Per Share	$0.01	$0.01	$0.03	$0.02
Weighted Average Shares - Basic	14,718,162	14,508,507	14,713,893	14,504,836
Weighted Average Shares - Diluted	14,958,070	14,775,422	14,942,137	14,710,838

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$384,100	$350,424
Depreciation and amortization	295,297	243,869
Stock based compensation expense	34,287	14,127
Allowance for doubtful accounts	9,000	9,000
Inventory reserve	90,000	63,343
Write off of impaired acquisition costs		15,020
(Increase) Decrease in:
Accounts receivable	-78,288	8,619
Inventories	-567,520	-280,746
Prepaid expenses and other current assets	78,733	1,848
Increase (Decrease) in:
Accounts payable and accrued expenses	351,716	245,865
Customer deposits	-35,631	322,033
Income taxes payable	37,894	173,067
Net Cash Provided by Operating Activities	599,588	1,166,469
CASH FLOW FROM INVESTING ACTIVITIES:
Patent application and other asset costs	-21,225	-18,421
Purchase of equipment and furnishings	-208,702	-77,321
Proceeds from sale of equipment		38,531
(Purchase) Sale of marketable securities	-1,006,921	19,977
Net Cash (Used in) Investing Activities	-1,236,848	-37,234
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		210
Repayments of notes payable and loans	-143,913	-94,017
Net Cash (Used In) Financing Activities	-143,913	-93,807
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	-781,173	1,035,428
CASH AND CASH EQUIVALENTS
Beginning of period	3,232,021	1,940,906
End of period	2,450,848	2,976,334
SUPPLEMENTAL DISCLOSURE:
Interest paid	49,134	82,396
Taxes Paid	$127,046

Significant_Accounting_Policie

Significant Accounting Policies	9 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Significant Accounting Policies	NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
	Consolidation - The accompanying condensed consolidated financial statements of Sono-Tek Corporation, a New York corporation (the “Company”), include the accounts of the Company and its wholly owned subsidiaries, Sono-Tek Cleaning Systems Inc. and Sono-Tek Industrial Park, LLC. Sono-Tek Cleaning Systems, Inc., a New Jersey Corporation, ceased operations during the Fiscal Year Ended February 28, 2002. Sono-Tek Industrial Park, LLC, operates as a real estate holding company for the Company’s real estate operations.
	Cash and Cash Equivalents – Cash and cash equivalents consist of money market mutual funds, short term commercial paper and short-term certificates of deposit with original maturities of 90 days or less.
	Fair Value of Financial Instruments - Effective June 1, 2008, the Company adopted the guidance in the Fair Value Measurements and Disclosure Topic of the Accounting Standards Codification for assets and liabilities measured at fair value on a recurring basis. This guidance establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The adoption of this guidance did not have an impact on the Company’s financial position or operating results, but did expand certain disclosures. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the guidance requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:
	Level 1: Quoted prices in active markets.
	Level 2:   Observable market-based inputs or unobservable inputs that are corroborated by market data.
	Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.
	The fair values of financial assets of the Company were determined using the following categories at November 30, 2014 and February 28, 2014:
		Quoted Prices in Active Markets
		(Level 1)
		November 30,		February 28,
		2014		2014
	Marketable Securities	$	1,637,715	$	630,794
	Marketable Securities include mutual funds of $1,637,715, which are considered to be highly liquid and easily tradable as of November 30, 2014. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within the Company’s fair value hierarchy.
	Interim Reporting - The attached summary condensed consolidated financial information does not include all disclosures required to be included in a complete set of financial statements prepared in conformity with accounting principles generally accepted in the United States of America. Such disclosures were included with the financial statements of the Company at February 28, 2014, and included in its report on Form 10-K. Such statements should be read in conjunction with the data herein.
	The financial information reflects all adjustments, normal and recurring, which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The results for such interim periods are not necessarily indicative of the results to be expected for the year.
	Intangible Assets – Include cost of patent applications that are deferred and charged to operations over seventeen years for domestic patents and twelve years for foreign patents. The accumulated amortization is $114,070 and $105,585 at November 30, 2014 and February 28, 2014, respectively. Annual amortization expense of such intangible assets is expected to be $12,000 per year for the next five years.
	Reclassifications – Certain reclassifications have been made to the prior period to conform to the presentations of the current period.
	Impact of New Accounting Pronouncements - All new accounting pronouncements issued but not yet effective have been deemed to be not applicable to the Company, hence the adoption of these new accounting pronouncements once effective are not expected to have any impact on the Company.
	In June 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. The update gives entities a single comprehensive model to use in reporting information about the amount and timing of revenue resulting from contracts to provide goods or services to customers. The proposed ASU, which would apply to any entity that enters into contracts to provide goods or services, would supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, the update would supersede some cost guidance included in Subtopic 605-35, Revenue Recognition – Construction-Type and Production-Type Contracts. The update removes inconsistencies and weaknesses in revenue requirements and provides a more robust framework for addressing revenue issues and more useful information to users of financial statements through improved disclosure requirements. In addition, the update improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.

Inventories

Inventories	9 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Inventories	NOTE 2: INVENTORIES
	Inventories consist of the following:
		November 30,			February 28,
		2014			2014
	Finished goods	$	520,536		$	445,035
	Work in process		693,478			402,377
	Raw materials and subassemblies		1,223,414			1,022,496
	Total		2,437,428			1,869,908
	Less: Allowance		(285,093	)		(195,093	)
	Net inventories	$	2,152,335		$	1,674,815

Stock_Options_and_Warrants

Stock Options and Warrants	9 Months Ended
	Nov. 30, 2014
Equity [Abstract]
Stock Options and Warrants	NOTE 3: STOCK OPTIONS AND WARRANTS
	Stock Options – Under the 2013 Stock Incentive Plan, as amended ("2013 Plan"), options can be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 2,500,000 shares of the Company's common stock. Under the 2013 Plan, options expire ten years after the date of grant. As of November 30, 2014, there were 140,500 options outstanding under the 2013 plan.
	Under the 2003 Stock Incentive Plan, as amended ("2003 Plan"), until May 2013, options were available to be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 1,500,000 of the Company's common shares. As of November 30, 2014, there were 633,446 options outstanding under the 2003 Plan, under which no additional options may be granted.

Stock_Based_Compensation

Stock Based Compensation	9 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Stock Based Compensation	NOTE 4: STOCK BASED COMPENSATION
	The weighted-average fair value of options are estimated on the date of grant using the Black-Scholes options-pricing model.
	In computing the impact, the fair value of each option is estimated on the date of grant based on the Black-Scholes options-pricing model utilizing certain assumptions for a risk free interest rate; volatility; and expected remaining lives of the awards. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company’s stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company’s forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the number of vested options as a percentage of total options outstanding. If the Company’s actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period.
	For the nine months ended November 30, 2014 and 2013, net income and earnings per share reflect the actual deduction for stock-based compensation expense. The impact of applying ASC 718 approximated $34,000 and $14,000 in additional compensation expense during the nine months ended November 30, 2014 and 2013, respectively. Such amounts are included in general and administrative expenses on the statement of operations. The expense for stock-based compensation is a non-cash expense item.

Earnings_Per_Share

Earnings Per Share	9 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Earnings Per Share	NOTE 5: EARNINGS PER SHARE
	The denominator for the calculation of diluted earnings per share at November 30, 2014 and 2013
	are calculated as follows:
		Nine Months Ended				Three Months Ended
		November 30,				November 30,
		2014		2013		2014		2013
	Denominator for basic earnings per share		14,713,893		14,504,836		14,718,162		14,508,507
	Dilutive effect of stock options		228,244		206,003		239,908		266,915
	Denominator for diluted earnings per share		14,942,137		14,710,838		14,958,070		14,775,422

Long_Term_Debt

Long Term Debt	9 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Long Term Debt	NOTE 6: LONG TERM DEBT
	Long-term debt consists of the following:
		November 30,		February 28,
		2014		2014
	Equipment loan, bank, collateralized by related production equipment, payable in monthly installments of principal and interest of $5,158 through June 2015.  Interest rate 2.12%. 48 month term.	$	35,849	$	81,164
	Note payable, bank, collateralized by land and buildings, payable in monthly installments of principal and interest of $16,358 through January 2024.  Interest rate 4.15%.  10 year term.		1,490,763		1,589,360
	Total long term debt		1,526,612		1,670,524
	Due within one year		172,042		191,466
	Due after one year	$	1,354,570	$	1,479,058

Revolving_Line_of_Credit

Revolving Line of Credit	9 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Revolving Line of Credit	NOTE 7: REVOLVING LINE OF CREDIT
	The Company has a $750,000 revolving line of credit at prime which was 3.25% at November 30, 2014. The loan is collateralized by all of the assets of the Company, except for the land and buildings. The line of credit is payable on demand and must be retired for a 30 day period once annually. If the Company fails to perform the 30 day annual pay down or if the bank elects to terminate the credit line, the bank may at its option convert the outstanding balance to a 36 month term note with payments including interest in 36 equal installments. As of November 30, 2014, the Company’s outstanding balance was $0, and the unused credit line was $750,000.

Segment_Information

Segment Information	9 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Segment Information	NOTE 8: SEGMENT INFORMATION
	The Company operates in two segments: ultrasonic spray coating systems, which is the business of developing, manufacturing, selling, installing and servicing ultrasonic spray coating equipment; and real estate operations, which is the business of owning and operating the Sono-Tek Industrial Park.
	All inter-company transactions are eliminated in consolidation. For the nine and three months ended November 30, 2014 and 2013, segment information is as follows:
		Nine Months Ended November 30, 2014										Three Months Ended November 30, 2014
		Ultrasonic Spraying		Rental			Eliminations			Consolidated		Ultrasonic Spraying		Rental			Eliminations			Consolidated
				Real Estate Operations										Real Estate Operations
	Net Sales	$	7,838,982	$	214,573		$	147,223		$	7,906,332	$	2,827,606	$	73,374		$	49,074		$	2,851,906
	Rental Expense	$	147,223	$	118,011		$	(147,223	)	$	118,011	$	49,074	$	36,437		$	(49,074	)	$	36,437
	Interest Expense	$	1,071	$	48,064					$	49,135	$	236	$	15,518					$	15,754
	Net Income (Loss)	$	335,602	$	48,498					$	384,100	$	232,177	$	(29,774	)				$	202,432
	Assets	$	7,871,820	$	2,535,792					$	10,407,612	$	7,871,820	$	2,535,792					$	10,407,612
	Debt	$	35,849	$	1,490,763					$	1,526,612	$	35,849	$	1,490,763					$	1,526,612
		Nine Months Ended November 30, 2013										Three Months Ended November 30, 2013
		Ultrasonic Spraying		Rental Real Estate Operations			Eliminations			Consolidated		Ultrasonic Spraying		Rental Real Estate Operations			Eliminations			Consolidated
	Net Sales	$	7,504,082	$	159,721		$	101,805		$	7,561,998	$	2,631,475	$	52,685		$	33,935		$	2,650,225
	Rental Expense	$	101,805	$	118,890		$	(101,805	)	$	118,890	$	33,935	$	48,791		$	(33,935	)	$	48,791
	Interest Expense	$	1,927	$	80,469					$	82,396	$	556	$	26,596					$	27,152
	Net Income (Loss)	$	390,062	$	(39,638	)				$	350,424	$	193,949	$	(22,702	)				$	171,247
	Assets	$	7,617,337	$	2,460,816					$	10,078,153	$	7,617,337	$	2,460,816					$	10,078,153
	Debt	$	96,143	$	1,923,075					$	2,019,218	$	96,143	$	1,923,075					$	2,019,218

Subsequent_Events

Subsequent Events	9 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Subsequent Events	NOTE 9: SUBSEQUENT EVENTS
	The Company has evaluated subsequent events for disclosure purposes.

Significant_Accounting_Policie1

Significant Accounting Policies (Policies)	9 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Consolidation	Consolidation - The accompanying condensed consolidated financial statements of Sono-Tek Corporation, a New York corporation (the “Company”), include the accounts of the Company and its wholly owned subsidiaries, Sono-Tek Cleaning Systems Inc. and Sono-Tek Industrial Park, LLC. Sono-Tek Cleaning Systems, Inc., a New Jersey Corporation, ceased operations during the Fiscal Year Ended February 28, 2002. Sono-Tek Industrial Park, LLC, operates as a real estate holding company for the Company’s real estate operations.
Cash and Cash Equivalents	Cash and Cash Equivalents – Cash and cash equivalents consist of money market mutual funds, short term commercial paper and short-term certificates of deposit with original maturities of 90 days or less.
Fair Value of Financial Instruments	Fair Value of Financial Instruments - Effective June 1, 2008, the Company adopted the guidance in the Fair Value Measurements and Disclosure Topic of the Accounting Standards Codification for assets and liabilities measured at fair value on a recurring basis. This guidance establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The adoption of this guidance did not have an impact on the Company’s financial position or operating results, but did expand certain disclosures. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the guidance requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:
	Level 1: Quoted prices in active markets.
	Level 2:   Observable market-based inputs or unobservable inputs that are corroborated by market data.
	Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.
	The fair values of financial assets of the Company were determined using the following categories at November 30, 2014 and February 28, 2014:
		Quoted Prices in Active Markets
		(Level 1)
		November 30,		February 28,
		2014		2014
	Marketable Securities	$	1,637,715	$	630,794
	Marketable Securities include mutual funds of $1,637,715, which are considered to be highly liquid and easily tradable as of November 30, 2014. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within the Company’s fair value hierarchy.
Interim Reporting	Interim Reporting - The attached summary condensed consolidated financial information does not include all disclosures required to be included in a complete set of financial statements prepared in conformity with accounting principles generally accepted in the United States of America. Such disclosures were included with the financial statements of the Company at February 28, 2014, and included in its report on Form 10-K. Such statements should be read in conjunction with the data herein.
	The financial information reflects all adjustments, normal and recurring, which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The results for such interim periods are not necessarily indicative of the results to be expected for the year.
Intangible Assets	Intangible Assets – Include cost of patent applications that are deferred and charged to operations over seventeen years for domestic patents and twelve years for foreign patents. The accumulated amortization is $114,070 and $105,585 at November 30, 2014 and February 28, 2014, respectively. Annual amortization expense of such intangible assets is expected to be $12,000 per year for the next five years.
Reclassifications	Reclassifications – Certain reclassifications have been made to the prior period to conform to the presentations of the current period.
Impact of New Accounting Pronouncements	Impact of New Accounting Pronouncements - All new accounting pronouncements issued but not yet effective have been deemed to be not applicable to the Company, hence the adoption of these new accounting pronouncements once effective are not expected to have any impact on the Company.
	In June 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. The update gives entities a single comprehensive model to use in reporting information about the amount and timing of revenue resulting from contracts to provide goods or services to customers. The proposed ASU, which would apply to any entity that enters into contracts to provide goods or services, would supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, the update would supersede some cost guidance included in Subtopic 605-35, Revenue Recognition – Construction-Type and Production-Type Contracts. The update removes inconsistencies and weaknesses in revenue requirements and provides a more robust framework for addressing revenue issues and more useful information to users of financial statements through improved disclosure requirements. In addition, the update improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.

Significant_Accounting_Policie2

Significant Accounting Policies (Tables)	9 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Fair values of financial assets of the Company		Quoted Prices in Active Markets
		(Level 1)
		November 30,		February 28,
		2014		2014
	Marketable Securities	$	1,637,715	$	630,794

Inventories_Tables

Inventories (Tables)	9 Months Ended
	Nov. 30, 2014
Inventories Tables
Inventories		November 30,			February 28,
		2014			2014
	Finished goods	$	520,536		$	445,035
	Work in process		693,478			402,377
	Raw materials and subassemblies		1,223,414			1,022,496
	Total		2,437,428			1,869,908
	Less: Allowance		(285,093	)		(195,093	)
	Net inventories	$	2,152,335		$	1,674,815

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	9 Months Ended
	Nov. 30, 2014
Earnings Per Share Tables
Computation of basic and diluted earnings per share		Nine Months Ended				Three Months Ended
		November 30,				November 30,
		2014		2013		2014		2013
	Denominator for basic earnings per share		14,713,893		14,504,836		14,718,162		14,508,507
	Dilutive effect of stock options		228,244		206,003		239,908		266,915
	Denominator for diluted earnings per share		14,942,137		14,710,838		14,958,070		14,775,422

Long_Term_Debt_Tables

Long Term Debt (Tables)	9 Months Ended
	Nov. 30, 2014
Long Term Debt Tables
Long-term debt		November 30,		February 28,
		2014		2014
	Equipment loan, bank, collateralized by related production equipment, payable in monthly installments of principal and interest of $5,158 through June 2015.  Interest rate 2.12%. 48 month term.	$	35,849	$	81,164
	Note payable, bank, collateralized by land and buildings, payable in monthly installments of principal and interest of $16,358 through January 2024.  Interest rate 4.15%.  10 year term.		1,490,763		1,589,360
	Total long term debt		1,526,612		1,670,524
	Due within one year		172,042		191,466
	Due after one year	$	1,354,570	$	1,479,058

Segment_Information_Tables

Segment Information (Tables)	9 Months Ended
	Nov. 30, 2014
Segment Information Tables
Segment information		Nine Months Ended November 30, 2014										Three Months Ended November 30, 2014
		Ultrasonic Spraying		Rental			Eliminations			Consolidated		Ultrasonic Spraying		Rental			Eliminations			Consolidated
				Real Estate Operations										Real Estate Operations
	Net Sales	$	7,838,982	$	214,573		$	147,223		$	7,906,332	$	2,827,606	$	73,374		$	49,074		$	2,851,906
	Rental Expense	$	147,223	$	118,011		$	(147,223	)	$	118,011	$	49,074	$	36,437		$	(49,074	)	$	36,437
	Interest Expense	$	1,071	$	48,064					$	49,135	$	236	$	15,518					$	15,754
	Net Income (Loss)	$	335,602	$	48,498					$	384,100	$	232,177	$	(29,774	)				$	202,432
	Assets	$	7,871,820	$	2,535,792					$	10,407,612	$	7,871,820	$	2,535,792					$	10,407,612
	Debt	$	35,849	$	1,490,763					$	1,526,612	$	35,849	$	1,490,763					$	1,526,612
		Nine Months Ended November 30, 2013										Three Months Ended November 30, 2013
		Ultrasonic Spraying		Rental Real Estate Operations			Eliminations			Consolidated		Ultrasonic Spraying		Rental Real Estate Operations			Eliminations			Consolidated
	Net Sales	$	7,504,082	$	159,721		$	101,805		$	7,561,998	$	2,631,475	$	52,685		$	33,935		$	2,650,225
	Rental Expense	$	101,805	$	118,890		$	(101,805	)	$	118,890	$	33,935	$	48,791		$	(33,935	)	$	48,791
	Interest Expense	$	1,927	$	80,469					$	82,396	$	556	$	26,596					$	27,152
	Net Income (Loss)	$	390,062	$	(39,638	)				$	350,424	$	193,949	$	(22,702	)				$	171,247
	Assets	$	7,617,337	$	2,460,816					$	10,078,153	$	7,617,337	$	2,460,816					$	10,078,153
	Debt	$	96,143	$	1,923,075					$	2,019,218	$	96,143	$	1,923,075					$	2,019,218

Significant_Accounting_Policie3

Significant Accounting Policies - Fair values of financial assets of the Company (Details) (USD $)	Nov. 30, 2014	Feb. 28, 2014
Marketable Securities	$1,637,715	$630,794
Quoted Prices in Active Markets (Level 1)
Marketable Securities	$1,637,715	$630,794

Significant_Accounting_Policie4

Significant Accounting Policies - Fair values of financial assets of the Company (Details Narrative) (USD $)	Nov. 30, 2014	Feb. 28, 2014
Notes to Financial Statements
Mutual funds	$1,637,715	$630,794

Significant_Accounting_Policie5

Significant Accounting Policies - Intangible Assets (Details Narrative) (USD $)	Nov. 30, 2014	Feb. 28, 2014
Notes to Financial Statements
Accumulated amortization of intangible assets	$114,070	$105,585
Annual Amortization Expense of Intangible Assets For the Next Five Years
Annual amortization expense this year	12,000
Annual amortization expense year two	12,000
Annual amortization expense year three	12,000
Annual amortization expense year four	12,000
Annual amortization expense year five	$12,000

Inventories_Details

Inventories (Details) (USD $)	Nov. 30, 2014	Feb. 28, 2014
Inventories Tables
Finished goods	$520,536	$445,035
Work in process	693,478	402,377
Raw materials	1,223,414	1,022,496
Total	2,437,428	1,869,908
Less: Allowance	285,093	195,093
Net inventories	$2,152,335	$1,674,815

Stock_Options_and_Warrants_Det

Stock Options and Warrants (Details Narrative)	9 Months Ended
	Nov. 30, 2014
2013 Stock Incentive Plan
Stock options shares available for purchase	2,500,000
Stock options outstanding	140,500
2003 Stock Incentive Plan
Stock options shares available for purchase	1,500,000
Stock options outstanding	633,446
Additional stock options to be granted	0

Stock_Based_Compensation_Detai

Stock Based Compensation (Details Narrative) (USD $)	9 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Notes to Financial Statements
Additional stock-based compensation expense as a result of applying ASC 718	$34,287	$14,127

Earnings_Per_Share_Details

Earnings Per Share (Details)	3 Months Ended		9 Months Ended
	Nov. 30, 2014	Nov. 30, 2013	Nov. 30, 2014	Nov. 30, 2013
Earnings Per Share Tables
Denominator for basic earnings per share	14,718,162	14,508,507	14,713,893	14,504,836
Dilutive effect of stock options	239,908	266,915	228,244	206,003
Denominator for diluted earnings per share	14,958,070	14,775,422	14,942,137	14,710,838

Long_Term_Debt_Details

Long Term Debt (Details) (USD $)	Nov. 30, 2014	Feb. 28, 2014
Long-term debt	$1,526,612	$1,670,524
Due within one year	172,042	191,466
Due after one year	1,354,570	1,479,058
Equipment loan, bank, collateralized by related production equipment, payable in monthly installments of principal and interest of $5,158 through June 2015. Interest rate 2.12%. 48 month term.
Long-term debt	35,849	81,164
Note payable, bank, collateralized by land and buildings, payable in monthly installments of principal and interest of $16,358 through January 2024. Interest rate 4.15%. 10 year term.
Long-term debt	$1,490,763	$1,589,360

Revolving_Line_of_Credit_Detai

Revolving Line of Credit (Details Narrative) (Revolving Line of Credit, USD $)	9 Months Ended
	Nov. 30, 2014
Revolving Line of Credit
Line of credit description	The Company has a $750,000 revolving line of credit at prime which was 3.25% at November 30, 2014. The line of credit is collateralized by all of the assets of the Company, except for the land and buildings. The line of credit is payable on demand and must be retired for a 30 day period once annually. If the Company fails to perform the 30 day annual pay down or if the bank elects to terminate the credit line, the bank may at its option convert the outstanding balance to a 36 month term note with payments including interest in 36 equal installments.
Outstanding balance	$0
Unused credit line	$750,000

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended		9 Months Ended
	Nov. 30, 2014	Nov. 30, 2013	Nov. 30, 2014	Nov. 30, 2013	Feb. 28, 2014
Net Sales	$2,851,906	$2,650,225	$7,906,332	$7,561,998
Rental Expense	36,437	48,791	118,011	118,890
Interest Expense	15,754	27,152	49,135	82,396
Net Income (Loss)	202,432	171,247	384,100	350,424
Assets	10,407,612		10,407,612		9,779,161
Debt	1,526,612		1,526,612		1,670,524
Ultrasonic Spraying
Net Sales	2,827,606	2,631,475	7,838,982	7,504,082
Rental Expense	49,074	33,935	147,223	101,805
Interest Expense	236	556	1,071	1,927
Net Income (Loss)	232,177	193,949	335,602	390,062
Assets	7,871,820	7,617,337	7,871,820	7,617,337
Debt	35,849	96,143	35,849	96,143
Rental Real Estate Operations
Net Sales	73,374	52,685	214,573	159,721
Rental Expense	36,437	48,791	118,011	118,890
Interest Expense	15,518	26,596	48,064	80,469
Net Income (Loss)	-29,774	-22,702	48,498	-39,638
Assets	2,535,792	2,460,816	2,535,792	2,460,816
Debt	1,490,763	1,923,075	1,490,763	1,923,075
Eliminations
Net Sales	49,074	33,935	147,223	101,805
Rental Expense	-49,074	-33,935	-147,223	-101,805
Consolidated
Net Sales	2,851,906	2,650,225	7,906,332	7,561,998
Rental Expense	36,437	48,791	118,011	118,890
Interest Expense	15,754	27,152	49,135	82,396
Net Income (Loss)	202,432	171,247	384,100	350,424
Assets	10,407,612	10,078,153	10,407,612	10,078,153
Debt	$1,526,612	$2,019,218	$1,526,612	$2,019,218