Sono-Tek (SOTK) 10-Q 14 Jan 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Nov. 30, 2015	Jan. 07, 2016
Document And Entity Information
Entity Registrant Name	SONO TEK CORP
Entity Central Index Key	806,172
Document Type	10-Q
Document Period End Date	Nov. 30, 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	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Nov. 30, 2015	Feb. 28, 2015
Current Assets:
Cash and cash equivalents	$ 2,502,714	$ 2,562,782
Marketable Securities	1,630,185	1,652,485
Accounts receivable (less allowance of $43,000 and $43,047 at November 30 and February 28, respectively)	959,759	1,029,250
Inventories, net	2,393,969	2,059,177
Prepaid expenses and other current assets	64,905	94,487
Total current assets	7,551,532	7,398,181
Land	250,000	250,000
Buildings, net	1,955,874	2,015,625
Equipment, furnishings and building improvements, net	810,243	661,411
Intangible and other assets, net	175,928	175,412
Deferred tax asset	90,021	90,021
TOTAL ASSETS	10,833,598	10,590,650
Current Liabilities:
Accounts payable	618,116	584,963
Accrued expenses	633,252	691,937
Customer deposits	358,938	462,168
Current maturities of long term debt	137,642	158,184
Income taxes payable	147,170	229,927
Total current liabilities	1,895,118	2,127,179
Long term debt, less current maturities	1,216,928	1,319,737
Total liabilities	$ 3,112,046	$ 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 November 30 and February 28, respectively	$ 149,463	$ 149,331
Additional paid-in capital	8,802,670	8,766,160
Accumulated deficit	(1,230,581)	(1,771,757)
Total stockholders' equity	7,721,552	7,143,734
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 10,833,598	$ 10,590,650

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Nov. 30, 2015	Feb. 28, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 43,000	$ 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		9 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Income Statement [Abstract]
Net Sales	$ 3,032,457	$ 2,851,906	$ 8,890,027	$ 7,906,332
Cost of Goods Sold	1,566,338	1,452,217	4,561,173	4,056,590
Gross Profit	1,466,119	1,399,689	4,328,854	3,849,742
Operating Expenses
Research and product development costs	303,484	249,292	918,421	740,122
Marketing and selling expenses	574,377	549,285	1,738,078	1,646,979
General and administrative costs	266,246	276,375	810,535	769,639
Rental operations expense	42,447	36,437	120,779	118,011
Total Operating Expenses	1,186,554	1,111,389	3,587,813	3,274,751
Operating Income	279,565	288,300	741,041	574,991
Interest Expense	(14,331)	(15,754)	(44,395)	(49,135)
Interest Income	14,640	8,260	41,035	17,977
Other (expense) income	4,823	(2,091)	(49,637)	5,238
Income form Operations Before Income Taxes	284,697	278,715	688,044	549,071
Income Tax Expense	41,132	76,283	146,868	164,971
Net Income	$ 243,565	$ 202,432	$ 541,176	$ 384,100
Basic Earnings Per Share	$ 0.02	$ 0.01	$ 0.04	$ 0.03
Diluted Earnings Per Share	$ 0.02	$ 0.01	$ 0.04	$ 0.03
Weighted Average Shares - Basic	14,946,274	14,718,162	14,941,150	14,713,893
Weighted Average Shares - Diluted	15,043,873	14,958,070	15,040,273	14,942,137

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Nov. 30, 2015	Nov. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 541,176	$ 384,100
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	341,342	295,297
Stock based compensation expense	33,967	34,287
Allowance for doubtful accounts	(3,047)	9,000
Inventory reserve	90,000	$ 90,000
Unrealized loss on marketable securities	55,980
(Increase) Decrease in:
Accounts receivable	69,538	$ (78,288)
Inventories	(418,577)	(567,520)
Prepaid expenses and other current assets	29,582	78,733
Increase (Decrease) in:
Accounts payable and accrued expenses	(25,532)	351,716
Customer deposits	(103,230)	(35,631)
Income taxes payable	(82,757)	37,894
Net Cash Provided by Operating Activities	528,442	599,588
CASH FLOWS FROM INVESTING ACTIVITIES:
Patent application and other asset costs	(14,786)	(21,225)
Purchase of equipment and furnishings	(419,368)	(208,702)
Purchase of marketable securities	(33,680)	(1,006,921)
Net Cash (Used in) Investing Activities	(467,834)	$ (1,236,848)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	2,675
Repayments of notes payable and loans	(123,351)	$ (143,913)
Net Cash (Used In) Financing Activities	(120,676)	(143,913)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(60,068)	(781,173)
CASH AND CASH EQUIVALENTS
Beginning of period	2,562,782	3,232,021
End of period	2,502,714	2,450,848
SUPPLEMENTAL DISCLOSURE:
Interest paid	44,395	49,135
Taxes Paid	$ 228,714	$ 127,046

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Nov. 30, 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 entity’s own assumptions. The fair values of financial assets of the Company were determined using the following categories at November 30, 2015 and February 28, 2015: Quoted Prices in Active Markets (Level 1) November 30, February 28, Marketable Securities $ 1,630,185 $ 1,652,485 Marketable Securities include mutual funds of $1,630,185, which are considered to be highly liquid and easily tradable as of November 30, 2015. 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. 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	9 Months Ended
	Nov. 30, 2015
Notes to Financial Statements
Inventories	NOTE 2: INVENTORIES Inventories consist of the following: November 30, February 28, Finished goods $ 623,819 $ 441,026 Work in process 271,341 220,577 Raw materials and subassemblies 1,676,081 1,692,202 Total 2,571,241 2,353,805 Less: Allowance (177,272 ) (294,628 ) Net inventories $ 2,393,969 $ 2,059,177

Stock Options and Warrants

Stock Options and Warrants	9 Months Ended
	Nov. 30, 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 November 30, 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	9 Months Ended
	Nov. 30, 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 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, 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 $34,000 in additional compensation expense during the nine months ended November 30, 2015 and 2014. 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, 2015
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, 2015 and 2014 are calculated as follows: Nine Months Ended Three Months Ended 2015 2014 2015 2014 Denominator for basic earnings per share 14,941,150 14,713,893 14,946,274 14,718,162 Dilutive effect of stock options 99,123 228,244 97,599 239,908 Denominator for diluted earnings per share 15,040,273 14,942,137 15,043,873 14,958,070

Long Term Debt

Long Term Debt	9 Months Ended
	Nov. 30, 2015
Notes to Financial Statements
Long Term Debt	NOTE 6: LONG TERM DEBT Long-term debt consists of the following: November 30, February 28, 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 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. 1,354,570 1,457,379 Total long term debt 1,354,570 1,477,921 Due within one year 137,642 158,184 Due after one year $ 1,216,928 $ 1,319,737

Revolving Line of Credit

Revolving Line of Credit	9 Months Ended
	Nov. 30, 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 November 30, 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 November 30, 2015, the Company’s outstanding balance was $0, and the unused credit line was $750,000.

Segment Information

Segment Information	9 Months Ended
	Nov. 30, 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 nine and three months ended November 30, 2015 and 2014, segment information is as follows: Nine Months Ended November 30, 2015 Three Months Ended November 30, 2015 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental Eliminations Consolidated Net Sales $ 8,819,278 $ 217,972 $ 147,223 $ 8,890,027 $ 3,008,458 $ 73,073 $ 49,074 $ 3,032,457 Rental Expense $ 147,223 $ 120,779 $ (147,223 ) $ 120,779 $ 49,074 $ 42,447 $ (49,074 ) $ 42,447 Interest Expense $ 75 $ 44,320 $ 44,395 $ — $ 14,331 $ 14,331 Net Income (Loss) $ 635,526 ($ 94,350 ) $ 541,176 $ 271,220 ($ 27,655 ) $ 243,565 Assets $ 8,369,038 $ 2,464,560 $ 10,833,598 $ 8,369,038 $ 2,464,560 $ 10,833,598 Debt $ — $ 1,354,570 $ 1,354,570 $ — $ 1,354,570 $ 1,354,570 Nine Months Ended November 30, 2014 Three Months Ended November 30, 2014 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental Eliminations Consolidated 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) $ 482,825 ($ 98,725 ) $ 384,100 $ 230,087 ($ 27,655 ) $ 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

Subsequent Events

Subsequent Events	9 Months Ended
	Nov. 30, 2015
Notes to Financial Statements
Subsequent Events	NOTE 9: SUBSEQUENT EVENTS The Company has evaluated subsequent events for disclosure purposes.

Significant Accounting Polici15

Significant Accounting Policies (Policies)	9 Months Ended
	Nov. 30, 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 entity’s own assumptions. The fair values of financial assets of the Company were determined using the following categories at November 30, 2015 and February 28, 2015: Quoted Prices in Active Markets (Level 1) November 30, February 28, Marketable Securities $ 1,630,185 $ 1,652,485 Marketable Securities include mutual funds of $1,630,185, which are considered to be highly liquid and easily tradable as of November 30, 2015. 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.
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 Polici16

Significant Accounting Policies (Tables)	9 Months Ended
	Nov. 30, 2015
Notes to Financial Statements
Fair values of financial assets of the Company	Quoted Prices in Active Markets (Level 1) November 30, February 28, Marketable Securities $ 1,630,185 $ 1,652,485

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Nov. 30, 2015
Inventories Tables
Inventories	November 30, February 28, Finished goods $ 623,819 $ 441,026 Work in process 271,341 220,577 Raw materials and subassemblies 1,676,081 1,692,202 Total 2,571,241 2,353,805 Less: Allowance (177,272 ) (294,628 ) Net inventories $ 2,393,969 $ 2,059,177

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Nov. 30, 2015
Earnings Per Share Tables
Computation of basic and diluted earnings per share	Nine Months Ended Three Months Ended 2015 2014 2015 2014 Denominator for basic earnings per share 14,941,150 14,713,893 14,946,274 14,718,162 Dilutive effect of stock options 99,123 228,244 97,599 239,908 Denominator for diluted earnings per share 15,040,273 14,942,137 15,043,873 14,958,070

Long Term Debt (Tables)

Long Term Debt (Tables)	9 Months Ended
	Nov. 30, 2015
Long Term Debt Tables
Long-term debt	November 30, February 28, 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 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. 1,354,570 1,457,379 Total long term debt 1,354,570 1,477,921 Due within one year 137,642 158,184 Due after one year $ 1,216,928 $ 1,319,737

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Nov. 30, 2015
Segment Information Tables
Segment information	Nine Months Ended November 30, 2015 Three Months Ended November 30, 2015 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental Eliminations Consolidated Net Sales $ 8,819,278 $ 217,972 $ 147,223 $ 8,890,027 $ 3,008,458 $ 73,073 $ 49,074 $ 3,032,457 Rental Expense $ 147,223 $ 120,779 $ (147,223 ) $ 120,779 $ 49,074 $ 42,447 $ (49,074 ) $ 42,447 Interest Expense $ 75 $ 44,320 $ 44,395 $ — $ 14,331 $ 14,331 Net Income (Loss) $ 635,526 ($ 94,350 ) $ 541,176 $ 271,220 ($ 27,655 ) $ 243,565 Assets $ 8,369,038 $ 2,464,560 $ 10,833,598 $ 8,369,038 $ 2,464,560 $ 10,833,598 Debt $ — $ 1,354,570 $ 1,354,570 $ — $ 1,354,570 $ 1,354,570 Nine Months Ended November 30, 2014 Three Months Ended November 30, 2014 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental Eliminations Consolidated 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) $ 482,825 ($ 98,725 ) $ 384,100 $ 230,087 ($ 27,655 ) $ 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

Significant Accounting Polici21

Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($)	Nov. 30, 2015	Feb. 28, 2015
Marketable Securities	$ 1,630,185	$ 1,652,485
Quoted Prices in Active Markets (Level 1)
Marketable Securities		$ 1,652,485

Significant Accounting Polici22

Significant Accounting Policies - Fair values of financial assets of the Company (Details Narrative) - USD ($)	Nov. 30, 2015	Feb. 28, 2015
Notes to Financial Statements
Mutual funds	$ 1,630,185	$ 1,652,485

Significant Accounting Polici23

Significant Accounting Policies - Intangible Assets (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2015	Feb. 28, 2015
Accumulated amortization of intangible assets	$ 125,118	$ 116,804
Annual Amortization Expense of Intangible Assets For the Next Five Years
Annual amortization expense this year	11,000
Annual amortization expense year two	11,000
Annual amortization expense year three	11,000
Annual amortization expense year four	11,000
Annual amortization expense year five	$ 11,000
Domestic Patents
Useful life of intangible assets	17 years
Foreign Patents
Useful life of intangible assets	12 years

Inventories (Details)

Inventories (Details) - USD ($)	Nov. 30, 2015	Feb. 28, 2015
Inventories Tables
Finished goods	$ 623,819	$ 441,026
Work in process	271,341	220,577
Raw materials	1,676,081	1,692,202
Total	2,571,241	2,353,805
Less: Allowance	177,272	294,628
Net inventories	$ 2,393,969	$ 2,059,177

Stock Options and Warrants (Det

Stock Options and Warrants (Details Narrative)	9 Months Ended
	Nov. 30, 2015shares
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 ($)	9 Months Ended
	Nov. 30, 2015	Nov. 30, 2014
Notes to Financial Statements
Additional stock-based compensation expense as a result of applying ASC 718	$ 33,967	$ 34,287

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Earnings Per Share Tables
Denominator for basic earnings per share	14,946,274	14,718,162	14,941,150	14,713,893
Dilutive effect of stock options	97,599	239,908	99,123	228,244
Denominator for diluted earnings per share	15,043,873	14,958,070	15,040,273	14,942,137

Long Term Debt (Details)

Long Term Debt (Details) - USD ($)	Nov. 30, 2015	Feb. 28, 2015
Long-term debt	$ 1,354,570	$ 1,477,921
Due within one year	137,642	158,184
Due after one year	$ 1,216,928	1,319,737
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
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	$ 1,354,570	$ 1,457,379

Revolving Line of Credit (Detai

Revolving Line of Credit (Details Narrative) - Revolving Line of Credit	9 Months Ended
	Nov. 30, 2015USD ($)
Line of credit description	The Company has a $750,000 revolving line of credit at prime which was 3.25% at November 30, 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		9 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014	Feb. 28, 2015
Net Sales	$ 3,032,457	$ 2,851,906	$ 8,890,027	$ 7,906,332
Rental Expense	42,447	36,437	120,779	118,011
Interest Expense	14,331	15,754	44,395	49,135
Net Income	243,565	202,432	541,176	384,100
Assets	10,833,598		10,833,598		$ 10,590,650
Debt	1,354,570		1,354,570		$ 1,477,921
Ultrasonic Spraying
Net Sales	3,008,458	2,827,606	8,819,278	7,838,982
Rental Expense	$ 49,074	49,074	147,223	147,223
Interest Expense		236	75	1,071
Net Income	$ 271,220	230,087	635,526	482,825
Assets	$ 8,369,038	7,871,820	$ 8,369,038	7,871,820
Debt		35,849		35,849
Rental Real Estate Operations
Net Sales	$ 73,073	73,374	$ 217,972	214,573
Rental Expense	42,447	36,437	120,779	118,011
Interest Expense	14,331	15,518	44,320	48,064
Net Income	(27,655)	(27,655)	(94,350)	(98,725)
Assets	2,464,560	2,535,792	2,464,560	2,535,792
Debt	1,354,570	1,490,763	1,354,570	1,490,763
Eliminations
Net Sales	49,074	49,074	147,223	147,223
Rental Expense	(49,074)	(49,074)	(147,223)	(147,223)
Consolidated
Net Sales	3,032,457	2,851,906	8,890,027	7,906,332
Rental Expense	42,447	36,437	120,779	118,011
Interest Expense	14,331	15,754	44,395	49,135
Net Income	243,565	202,432	541,176	384,100
Assets	10,833,598	10,407,612	10,833,598	10,407,612
Debt	$ 1,354,570	$ 1,526,612	$ 1,354,570	$ 1,526,612