Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 31, 2015 | Oct. 13, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | SONO TEK CORP | |
Entity Central Index Key | 806,172 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-29 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,946,274 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Aug. 31, 2015 | Feb. 28, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 2,185,230 | $ 2,562,782 |
Marketable Securities | 1,620,261 | 1,652,485 |
Accounts receivable (less allowance of $40,000 and $43,047 at August 31 and February 28, respectively) | 1,104,714 | 1,029,250 |
Inventories, net | 2,434,615 | 2,059,177 |
Prepaid expenses and other current assets | 52,646 | 94,487 |
Total current assets | 7,397,466 | 7,398,181 |
Land | 250,000 | 250,000 |
Buildings, net | 1,972,034 | 2,015,625 |
Equipment, furnishings and building improvements, net | 732,807 | 661,411 |
Intangible and other assets, net | 174,609 | 175,412 |
Deferred tax asset | 90,021 | 90,021 |
TOTAL ASSETS | 10,616,937 | 10,590,650 |
Current Liabilities: | ||
Accounts payable | 574,999 | 584,963 |
Accrued expenses | 667,807 | 691,937 |
Customer deposits | 412,041 | 462,168 |
Current maturities of long term debt | 137,642 | 158,184 |
Income taxes payable | 106,949 | 229,927 |
Total current liabilities | 1,899,438 | 2,127,179 |
Long term debt, less current maturities | 1,251,393 | 1,319,737 |
Total liabilities | $ 3,150,831 | $ 3,446,916 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock, $.01 par value; 25,000,000 shares authorized, 14,946,274 and 14,933,107 shares issued and outstanding, at August 31 and February 28, respectively | $ 149,463 | $ 149,331 |
Additional paid-in capital | 8,790,788 | 8,766,160 |
Accumulated deficit | (1,474,145) | (1,771,757) |
Total stockholders' equity | 7,466,106 | 7,143,734 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 10,616,937 | $ 10,590,650 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Aug. 31, 2015 | Feb. 28, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 40,000 | $ 43,047 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 25,000,000 | 25,000,000 |
Common stock, issued shares | 14,946,274 | 14,933,107 |
Common stock, outstanding shares | 14,946,274 | 14,933,107 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2015 | Aug. 31, 2014 | |
Income Statement [Abstract] | ||||
Net Sales | $ 2,974,673 | $ 2,633,727 | $ 5,857,570 | $ 5,054,426 |
Cost of Goods Sold | 1,485,069 | 1,331,640 | 2,994,835 | 2,604,373 |
Gross Profit | 1,489,604 | 1,302,087 | 2,862,735 | 2,450,053 |
Operating Expenses | ||||
Research and product development costs | 332,806 | 254,983 | 614,937 | 490,830 |
Marketing and selling expenses | 592,074 | 553,846 | 1,163,701 | 1,097,694 |
General and administrative costs | 287,503 | 251,680 | 544,288 | 493,264 |
Rental operations expense | 38,787 | 42,414 | 78,332 | 81,574 |
Total Operating Expenses | 1,251,170 | 1,102,923 | 2,401,258 | 2,163,362 |
Operating Income | 238,434 | 199,164 | 461,477 | 286,691 |
Interest Expense | (14,851) | (16,275) | (30,064) | (32,310) |
Interest Income | 12,708 | 7,740 | 26,395 | 9,718 |
Other (expense) income | (40,180) | (2,065) | (54,460) | 6,257 |
Income form Operations Before Income Taxes | 196,111 | 188,564 | 403,348 | 270,356 |
Income Tax Expense | 52,521 | 73,540 | 105,736 | 88,689 |
Net Income | $ 143,590 | $ 115,024 | $ 297,612 | $ 181,667 |
Basic Earnings Per Share | $ 0.01 | $ 0.01 | $ 0.02 | $ 0.01 |
Diluted Earnings Per Share | $ 0.01 | $ 0.01 | $ 0.02 | $ 0.01 |
Weighted Average Shares - Basic | 14,944,124 | 14,713,788 | 14,938,615 | 14,711,770 |
Weighted Average Shares - Diluted | 15,046,066 | 14,876,819 | 15,033,588 | 14,859,769 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 297,612 | $ 181,667 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 215,792 | 193,613 |
Stock based compensation expense | 22,085 | 23,348 |
Allowance for doubtful accounts | (3,047) | 6,000 |
Inventory reserve | 60,000 | $ 60,000 |
Unrealized loss on marketable securities | 53,779 | |
(Increase) Decrease in: | ||
Accounts receivable | (72,417) | $ (550,300) |
Inventories | (435,436) | (391,388) |
Prepaid expenses and other current assets | 41,841 | 134,290 |
Increase (Decrease) in: | ||
Accounts payable and accrued expenses | (34,094) | 59,638 |
Customer deposits | (50,127) | 38,032 |
Income taxes payable | (122,978) | (38,358) |
Net Cash (Used In) Operating Activities | (26,990) | (283,458) |
CASH FLOW FROM INVESTING ACTIVITIES: | ||
Patent application and other asset costs | (6,776) | (17,400) |
Purchase of equipment and furnishings | (236,021) | (110,552) |
Purchase of marketable securities | (21,554) | (509,244) |
Net Cash (Used in) Investing Activities | (264,351) | $ (637,196) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 2,675 | |
Repayments of notes payable and loans | (88,886) | $ (95,658) |
Net Cash (Used In) Financing Activities | (86,211) | (95,658) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (377,552) | (1,016,312) |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 2,562,782 | 3,232,021 |
End of period | 2,185,230 | 2,215,709 |
SUPPLEMENTAL DISCLOSURE: | ||
Interest paid | 30,064 | 32,310 |
Taxes Paid | $ 228,618 | $ 127,046 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Aug. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies | NOTE 1: SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents Consolidation Fair Value of Financial Instruments 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 entitys own assumptions. The fair values of financial assets of the Company were determined using the following categories at August 31, 2015 and February 28, 2015: Quoted Prices in Active Markets (Level 1) August 31, 2015 February 28, 2015 Marketable Securities $ 1,620,261 $ 1,652,485 Marketable Securities include mutual funds of $1,620,261, which are considered to be highly liquid and easily tradable as of August 31, 2015. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within the Companys fair value hierarchy. Impact of New Accounting Pronouncements Intangible Assets Interim Reporting 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. Reclassifications |
Inventories
Inventories | 6 Months Ended |
Aug. 31, 2015 | |
Notes to Financial Statements | |
Inventories | NOTE 2: INVENTORIES Inventories consist of the following: August 31, 2015 February 28, 2015 Finished goods $ 607,061 $ 441,026 Work in process 400,682 220,577 Raw materials and subassemblies 1,574,144 1,692,202 Total 2,581,887 2,353,805 Less: Allowance (147,272 ) (294,628 ) Net inventories $ 2,434,615 $ 2,059,177 |
Stock Options and Warrants
Stock Options and Warrants | 6 Months Ended |
Aug. 31, 2015 | |
Equity [Abstract] | |
Stock Options and Warrants | NOTE 3: STOCK OPTIONS AND WARRANTS Stock Options 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 August 31, 2015, there were 240,500 options outstanding under the 2003 Plan, under which no additional options may be granted. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Aug. 31, 2015 | |
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 managements 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 Companys 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 Companys 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 Companys 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 six months ended August 31, 2015 and 2014, net income and earnings per share reflect the actual deduction for stock-based compensation expense. The impact of applying ASC 718 approximated $23,000 and $22,000 in additional compensation expense during the six months ended August 31, 2015 and 2014, respectively. Such amounts are included in general and administrative expenses on the statements of income. The expense for stock-based compensation is a non-cash expense item. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Aug. 31, 2015 | |
Notes to Financial Statements | |
Earnings Per Share | NOTE 5: EARNINGS PER SHARE The denominators for the calculation of diluted earnings per share at August 31, 2015 and 2014 are calculated as follows: Six Months Ended August 31, Three Months Ended August 31, 2015 2014 2015 2014 Denominator for basic earnings per share 14,938,615 14,711,770 14,944,124 14,713,788 Dilutive effect of stock options 94,973 147,999 101,942 163,031 Denominator for diluted earnings per share 15,033,588 14,859,769 15,046,066 14,876,819 Basic Earnings Per Share $ 0.02 $ 0.01 $ 0.01 $ 0.01 Diluted Earnings Per Share $ 0.02 $ 0.01 $ 0.01 $ 0.01 |
Long Term Debt
Long Term Debt | 6 Months Ended |
Aug. 31, 2015 | |
Notes to Financial Statements | |
Long Term Debt | NOTE 6: LONG TERM DEBT Long-term debt consists of the following: August 31, February 28, 2015 2015 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. $ 1,389,035 $ 1,457,379 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. 20,542 Total long term debt 1,389,035 1,477,921 Due within one year 137,642 158,184 Due after one year $ 1,251,393 $ 1,319,737 |
Revolving Line of Credit
Revolving Line of Credit | 6 Months Ended |
Aug. 31, 2015 | |
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 August 31, 2015. 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 August 31, 2015, the Companys outstanding balance was $0, and the unused credit line was $750,000. |
Segment Information
Segment Information | 6 Months Ended |
Aug. 31, 2015 | |
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 six and three months ended August 31, 2015 and 2014, segment information is as follows: Six Months Ended August 31, 2015 Three Months Ended August 31, 2015 Ultrasonic Rental Real Eliminations Consolidated Ultrasonic Rental Real Eliminations Consolidated Net Sales $ 5,810,820 $ 144,899 $ 98,149 $ 5,857,570 $ 2,952,223 $ 71,524 $ 49,074 $ 2,974,673 Rental Expense $ 98,149 $ 78,332 $ (98,149 ) $ 78,332 $ 49,074 $ 38,787 $ (49,074 ) $ 38,787 Interest Expense $ 75 $ 29,989 $ 30,064 $ $ 14,851 $ 14,851 Net Income $ 261,110 $ 36,502 $ 297,612 $ 110,853 $ 32,737 $ 143,590 Assets $ 8,132,679 $ 2,484,258 $ 10,616,937 $ 8,132,679 $ 2,484,258 $ 10,616,937 Debt $ $ 1,389,035 $ 1,389,035 $ $ 1,389,035 $ 1,389,035 Six Months Ended August 31, 2014 Three Months Ended August 31, 2014 Ultrasonic Rental Real Eliminations Consolidated Ultrasonic Rental Real Eliminations Consolidated Net Sales $ 5,011,376 $ 141,199 $ 98,149 $ 5,054,426 $ 2,609,427 $ 73,374 $ 49,074 $ 2,633,727 Rental Expense $ 98,149 $ 81,574 $ (98,149 ) $ 81,574 $ 49,074 $ 42,414 $ (49,074 ) $ 42,414 Interest Expense $ 833 $ 31,477 $ 32,310 $ 472 $ 15,803 $ 16,275 Net Income $ 154,352 $ 27,315 $ 181,667 $ 100,339 $ 14,685 $ 115,024 Assets $ 7,472,177 $ 2,475,802 $ 9,947,979 $ 7,472,177 $ 2,475,802 $ 9,947,979 Debt $ 51,073 $ 1,523,793 $ 1,574,866 $ 51,073 $ 1,523,793 $ 1,574,866 |
Significant Accounting Polici14
Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 31, 2015 | |
Notes to Financial Statements | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Consolidation | Consolidation |
Fair Value of Financial Instruments | Fair Value of Financial Instruments - 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 entitys own assumptions. The fair values of financial assets of the Company were determined using the following categories at August 31, 2015 and February 28, 2015: Quoted Prices in Active Markets (Level 1) August 31, 2015 February 28, 2015 Marketable Securities $ 1,620,261 $ 1,652,485 Marketable Securities include mutual funds of $1,620,261, which are considered to be highly liquid and easily tradable as of August 31, 2015. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within the Companys fair value hierarchy. |
Impact of New Accounting Pronouncements | Impact of New Accounting Pronouncements |
Intangible Assets | Intangible Assets |
Interim Reporting | Interim Reporting 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. |
Reclassifications | Reclassifications |
Significant Accounting Polici15
Significant Accounting Policies (Tables) | 6 Months Ended |
Aug. 31, 2015 | |
Notes to Financial Statements | |
Fair values of financial assets of the Company | Quoted Prices in Active Markets (Level 1) August 31, 2015 February 28, 2015 Marketable Securities $ 1,620,261 $ 1,652,485 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Aug. 31, 2015 | |
Inventories Tables | |
Inventories | August 31, 2015 February 28, 2015 Finished goods $ 607,061 $ 441,026 Work in process 400,682 220,577 Raw materials and subassemblies 1,574,144 1,692,202 Total 2,581,887 2,353,805 Less: Allowance (147,272 ) (294,628 ) Net inventories $ 2,434,615 $ 2,059,177 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Aug. 31, 2015 | |
Earnings Per Share Tables | |
Computation of basic and diluted earnings per share | Six Months Ended August 31, Three Months Ended August 31, 2015 2014 2015 2014 Denominator for basic earnings per share 14,938,615 14,711,770 14,944,124 14,713,788 Dilutive effect of stock options 94,973 147,999 101,942 163,031 Denominator for diluted earnings per share 15,033,588 14,859,769 15,046,066 14,876,819 Basic Earnings Per Share $ 0.02 $ 0.01 $ 0.01 $ 0.01 Diluted Earnings Per Share $ 0.02 $ 0.01 $ 0.01 $ 0.01 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 6 Months Ended |
Aug. 31, 2015 | |
Long Term Debt Tables | |
Long-term debt | August 31, February 28, 2015 2015 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. $ 1,389,035 $ 1,457,379 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. 20,542 Total long term debt 1,389,035 1,477,921 Due within one year 137,642 158,184 Due after one year $ 1,251,393 $ 1,319,737 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Aug. 31, 2015 | |
Segment Information Tables | |
Segment information | Six Months Ended August 31, 2015 Three Months Ended August 31, 2015 Ultrasonic Rental Real Eliminations Consolidated Ultrasonic Rental Real Eliminations Consolidated Net Sales $ 5,810,820 $ 144,899 $ 98,149 $ 5,857,570 $ 2,952,223 $ 71,524 $ 49,074 $ 2,974,673 Rental Expense $ 98,149 $ 78,332 $ (98,149 ) $ 78,332 $ 49,074 $ 38,787 $ (49,074 ) $ 38,787 Interest Expense $ 75 $ 29,989 $ 30,064 $ $ 14,851 $ 14,851 Net Income $ 261,110 $ 36,502 $ 297,612 $ 110,853 $ 32,737 $ 143,590 Assets $ 8,132,679 $ 2,484,258 $ 10,616,937 $ 8,132,679 $ 2,484,258 $ 10,616,937 Debt $ $ 1,389,035 $ 1,389,035 $ $ 1,389,035 $ 1,389,035 Six Months Ended August 31, 2014 Three Months Ended August 31, 2014 Ultrasonic Rental Real Eliminations Consolidated Ultrasonic Rental Real Eliminations Consolidated Net Sales $ 5,011,376 $ 141,199 $ 98,149 $ 5,054,426 $ 2,609,427 $ 73,374 $ 49,074 $ 2,633,727 Rental Expense $ 98,149 $ 81,574 $ (98,149 ) $ 81,574 $ 49,074 $ 42,414 $ (49,074 ) $ 42,414 Interest Expense $ 833 $ 31,477 $ 32,310 $ 472 $ 15,803 $ 16,275 Net Income $ 154,352 $ 27,315 $ 181,667 $ 100,339 $ 14,685 $ 115,024 Assets $ 7,472,177 $ 2,475,802 $ 9,947,979 $ 7,472,177 $ 2,475,802 $ 9,947,979 Debt $ 51,073 $ 1,523,793 $ 1,574,866 $ 51,073 $ 1,523,793 $ 1,574,866 |
Significant Accounting Polici20
Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($) | Aug. 31, 2015 | Feb. 28, 2015 |
Marketable Securities | $ 1,620,261 | $ 1,652,485 |
Quoted Prices in Active Markets (Level 1) | ||
Marketable Securities | $ 1,620,261 | $ 1,652,485 |
Significant Accounting Polici21
Significant Accounting Policies - Fair values of financial assets of the Company (Details Narrative) - USD ($) | Aug. 31, 2015 | Feb. 28, 2015 |
Notes to Financial Statements | ||
Mutual funds | $ 1,620,261 | $ 1,652,485 |
Significant Accounting Polici22
Significant Accounting Policies - Intangible Assets (Details Narrative) - USD ($) | 6 Months Ended | |
Aug. 31, 2015 | Feb. 28, 2015 | |
Accumulated amortization of intangible assets | $ 122,111 | $ 116,804 |
Annual Amortization Expense of Intangible Assets For the Next Five Years | ||
Annual amortization expense this year | 9,000 | |
Annual amortization expense year two | 9,000 | |
Annual amortization expense year three | 9,000 | |
Annual amortization expense year four | 9,000 | |
Annual amortization expense year five | $ 9,000 | |
Domestic Patents | ||
Useful life of intangible assets | 17 years | |
Foreign Patents | ||
Useful life of intangible assets | 12 years |
Inventories (Details)
Inventories (Details) - USD ($) | Aug. 31, 2015 | Feb. 28, 2015 |
Inventories Tables | ||
Finished goods | $ 607,061 | $ 441,026 |
Work in process | 400,682 | 220,577 |
Raw materials | 1,574,144 | 1,692,202 |
Total | 2,581,887 | 2,353,805 |
Less: Allowance | 147,272 | 294,628 |
Net inventories | $ 2,434,615 | $ 2,059,177 |
Stock Options and Warrants (Det
Stock Options and Warrants (Details Narrative) - shares | 6 Months Ended | |
Aug. 31, 2015 | Aug. 30, 2015 | |
2013 Stock Incentive Plan | ||
Stock options shares available for purchase | 2,500,000 | |
Stock options outstanding | 254,100 | |
Years until options expire | 10 years | |
2003 Stock Incentive Plan | ||
Stock options shares available for purchase | 1,500,000 | |
Stock options outstanding | 240,500 | |
Additional stock options to be granted | 0 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) | 6 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Notes to Financial Statements | ||
Additional stock-based compensation expense as a result of applying ASC 718 | $ 22,085 | $ 23,348 |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2015 | Aug. 31, 2014 | |
Earnings Per Share Tables | ||||
Denominator for basic earnings per share | 14,944,124 | 14,713,788 | 14,938,615 | 14,711,770 |
Dilutive effect of stock options | 101,942 | 163,031 | 94,973 | 147,999 |
Denominator for diluted earnings per share | 15,046,066 | 14,876,819 | 15,033,588 | 14,859,769 |
Basic Earnings Per Share | $ 0.01 | $ 0.01 | $ 0.02 | $ 0.01 |
Diluted Earnings Per Share | $ 0.01 | $ 0.01 | $ 0.02 | $ 0.01 |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) | Aug. 31, 2015 | Feb. 28, 2015 |
Long-term debt | $ 1,389,035 | $ 1,477,921 |
Due within one year | 137,642 | 158,184 |
Due after one year | 1,251,393 | 1,319,737 |
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 | $ 1,389,035 | 1,457,379 |
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 | $ 20,542 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details Narrative) - Revolving Line of Credit | 6 Months Ended |
Aug. 31, 2015USD ($) | |
Line of credit description | The Company has a $750,000 revolving line of credit at prime which was 3.25% at August 31, 2015. 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 | 6 Months Ended | |||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | |
Net Sales | $ 2,974,673 | $ 2,633,727 | $ 5,857,570 | $ 5,054,426 | |
Rental Expense | 38,787 | 42,414 | 78,332 | 81,574 | |
Interest Expense | 14,851 | 16,275 | 30,064 | 32,310 | |
Net Income | 143,590 | 115,024 | 297,612 | 181,667 | |
Assets | 10,616,937 | 10,616,937 | $ 10,590,650 | ||
Debt | 1,389,035 | 1,389,035 | $ 1,477,921 | ||
Ultrasonic Spraying | |||||
Net Sales | 2,952,223 | 2,609,427 | 5,810,820 | 5,011,376 | |
Rental Expense | $ 49,074 | 49,074 | 98,149 | 98,149 | |
Interest Expense | 472 | 75 | 833 | ||
Net Income | $ 110,853 | 100,339 | 261,110 | 154,352 | |
Assets | $ 8,132,679 | 7,472,177 | $ 8,132,679 | 7,472,177 | |
Debt | 51,073 | 51,073 | |||
Rental Real Estate Operations | |||||
Net Sales | $ 71,524 | 73,374 | $ 144,899 | 141,199 | |
Rental Expense | 38,787 | 42,414 | 78,332 | 81,574 | |
Interest Expense | 14,851 | 15,803 | 29,989 | 31,477 | |
Net Income | 32,737 | 14,685 | 36,502 | 27,315 | |
Assets | 2,484,258 | 2,475,802 | 2,484,258 | 2,475,802 | |
Debt | 1,389,035 | 1,523,793 | 1,389,035 | 1,523,793 | |
Eliminations | |||||
Net Sales | 49,074 | 49,074 | 98,149 | 98,149 | |
Rental Expense | (49,074) | (49,074) | (98,149) | (98,149) | |
Consolidated | |||||
Net Sales | 2,974,673 | 2,633,727 | 5,857,570 | 5,054,426 | |
Rental Expense | 38,787 | 42,414 | 78,332 | 81,574 | |
Interest Expense | 14,851 | 16,275 | 30,064 | 32,310 | |
Net Income | 143,590 | 115,024 | 297,612 | 181,667 | |
Assets | 10,616,937 | 9,947,979 | 10,616,937 | 9,947,979 | |
Debt | $ 1,389,035 | $ 1,574,866 | $ 1,389,035 | $ 1,574,866 |