Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 31, 2016 | Jul. 08, 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 | May 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-28 | |
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 | 14,961,076 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | May 31, 2016 | Feb. 29, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 2,635,801 | $ 2,388,355 |
Marketable Securities | 1,808,229 | 1,695,689 |
Accounts receivable (less allowance of $46,000 and $46,000 at May 31 and February 29, respectively) | 818,419 | 1,214,713 |
Inventories, net | 1,917,517 | 1,945,383 |
Prepaid expenses and other current assets | 77,942 | 109,954 |
Deferred tax asset | 154,914 | 154,914 |
Total current assets | 7,412,822 | 7,509,008 |
Land | 250,000 | 250,000 |
Buildings, net | 1,923,554 | 1,939,714 |
Equipment, furnishings and building improvements, net | 802,445 | 796,788 |
Intangible and other assets, net | 169,234 | 174,027 |
TOTAL ASSETS | 10,558,055 | 10,669,537 |
Current Liabilities: | ||
Accounts payable | 489,823 | 475,297 |
Accrued expenses | 566,737 | 746,036 |
Customer deposits | 177,500 | 201,478 |
Current portion of long term debt | 137,642 | 143,388 |
Income taxes payable | 81,153 | 87,660 |
Total current liabilities | 1,452,855 | 1,653,859 |
Deferred tax liability | 171,719 | 171,719 |
Long term debt, less current maturities | 1,146,588 | 1,176,349 |
Total liabilities | 2,771,162 | 3,001,927 |
Stockholders' Equity | ||
Common stock, $.01 par value; 25,000,000 shares authorized, 14,961,076 and 14,955,400 shares issued and outstanding, respectively | 149,611 | 149,554 |
Additional paid-in capital | 8,819,719 | 8,812,224 |
Accumulated deficit | (1,168,238) | (1,224,028) |
Accumulated other comprehensive loss | (14,199) | (70,140) |
Total stockholders' equity | 7,786,893 | 7,667,610 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 10,558,055 | $ 10,669,537 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | May 31, 2016 | Feb. 29, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 46,000 | $ 46,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 25,000,000 | 25,000,000 |
Common stock, issued shares | 14,961,076 | 14,955,400 |
Common stock, outstanding shares | 14,961,076 | 14,955,400 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Income Statement [Abstract] | ||
Net Sales | $ 2,240,211 | $ 2,882,897 |
Cost of Goods Sold | 1,216,809 | 1,509,766 |
Gross Profit | 1,023,402 | 1,373,131 |
Operating Expenses | ||
Research and product development costs | 303,794 | 282,131 |
Marketing and selling expenses | 546,983 | 571,627 |
General and administrative costs | 269,189 | 256,784 |
Rental operations expense | 43,117 | 39,545 |
Total Operating Expenses | 1,163,083 | 1,150,087 |
Operating (Loss) Income | (139,681) | 223,044 |
Interest Expense | (13,745) | (15,288) |
Interest Income | 17,583 | 13,760 |
Other (expense) income | 201,259 | (14,280) |
Income Before Income Taxes | 65,416 | 207,236 |
Income Tax Expense | 9,625 | 53,214 |
Net Income | 55,791 | 154,022 |
Other Comprehensive Loss | ||
Net unrealized loss on marketable securities | 55,941 | |
Comprehensive Income | $ 111,732 | $ 154,022 |
Basic Earnings Per Share | $ 0 | $ 0.01 |
Diluted Earnings Per Share | $ 0 | $ 0.01 |
Weighted Average Shares - Basic | 14,961,076 | 14,833,107 |
Weighted Average Shares - Diluted | 15,005,107 | 14,926,642 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
May 31, 2016 | May 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 55,791 | $ 154,022 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 114,813 | 102,176 |
Stock based compensation expense | 7,552 | 11,061 |
Allowance for doubtful accounts | (3,047) | |
Inventory reserve | 28,000 | 30,000 |
Unrealized loss on marketable securities | 13,268 | |
Decrease (Increase) in: | ||
Accounts receivable | 396,294 | 306,835 |
Inventories | (134) | (226,145) |
Prepaid expenses and other current assets | 32,012 | 34,197 |
(Decrease) Increase in: | ||
Accounts payable and accrued expenses | (164,774) | 80,228 |
Customer deposits | (23,979) | (34,782) |
Income taxes payable | (6,507) | (175,404) |
Net Cash Provided by Operating Activities | 439,068 | 292,409 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Patent application costs | (1,010) | |
Purchase of equipment and furnishings | (93,772) | (75,992) |
Purchase of marketable securities | (62,343) | (11,377) |
Net Cash (Used in) Investing Activities | (156,115) | (88,379) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of notes payable and loans | (35,507) | (49,636) |
Net Cash (Used In) Financing Activities | (35,507) | (49,636) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 247,446 | 154,394 |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 2,388,355 | 2,562,782 |
End of period | 2,635,801 | 2,717,176 |
SUPPLEMENTAL DISCLOSURE: | ||
Interest paid | 13,745 | 15,288 |
Taxes Paid | $ 16,082 | $ 228,618 |
Business Description
Business Description | 3 Months Ended |
May 31, 2016 | |
Accounting Policies [Abstract] | |
Business Description | NOTE 1: BUSINESS DESCRIPTION The Company was incorporated in New York on March 21, 1975 for the purpose of engaging in the development, manufacture, and sale of ultrasonic liquid atomizing nozzles, which are sold world-wide. Ultrasonic nozzle systems atomize low to medium viscosity liquids by converting electrical energy into mechanical motion in the form of high frequency ultrasonic vibrations that break liquids into minute drops that can be applied to surfaces at low velocity. Based on its core technology of ultrasonic liquid atomizing nozzles, the Company has developed intellectual property in the area of precision spray coating of liquids. The Company is presently engaged in the development, manufacture, sales, installation and servicing of diverse ultrasonic coating equipment for various manufacturing industries worldwide. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
May 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Available-For-Sale Investments Cash and Cash Equivalents - Consolidation Earnings Per Share - Equipment, Furnishings and Leasehold Improvements 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 May 31, 2016 and February 29, 2016, respectively: Quoted Prices in Active Markets (Level 1) May 31, February 29, Marketable Securities $ 1,808,229 $ 1,695,689 Marketable Securities include mutual funds of $1,808,229 and $1,695,689 that are considered to be highly liquid and easily tradeable as of May 31, 2016 and February 29, 2016, respectively. 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. The Companys marketable securities are considered to be available-for-sale investments as defined under ASC 320 Investments Debt and Equity Securities. Income Taxes 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. Inventories - Land and Buildings Long-Lived Assets - Management Estimates - New Accounting Pronouncements- Reclassifications |
Inventories
Inventories | 3 Months Ended |
May 31, 2016 | |
Notes to Financial Statements | |
Inventories | NOTE 3: INVENTORIES Inventories consist of the following: May 31, February 29, 2016 2016 Raw materials and subassemblies $ 1,427,544 $ 1,452,566 Finished goods 538,428 549,106 Work in process 154,249 118,415 Total 2,120,221 2,120,087 Less: Allowance (202,704 ) (174,704 ) Net inventories $ 1,917,517 $ 1,945,383 |
Stock Options and Warrants
Stock Options and Warrants | 3 Months Ended |
May 31, 2016 | |
Equity [Abstract] | |
Stock Options and Warrants | NOTE 4: 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 shares of the Company's common stock. As of May 31, 2016, there were 207,500 options outstanding under the 2003 Plan, under which no additional options may be granted. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
May 31, 2016 | |
Notes to Financial Statements | |
Stock Based Compensation | NOTE 5: STOCK BASED COMPENSATION The weighted-average fair value of options are estimated on the date of grant using the Black-Scholes options-pricing model. For the three months ended May 31, 2016, no options were issued. 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 three months ended May 31, 2016 and 2015, net income and earnings per share reflect the actual deduction for stock-based compensation expense. The impact of applying ASC 718 approximated $8,000 and $11,000 in additional compensation expense during the three months ended May 31, 2016 and 2015, 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 | 3 Months Ended |
May 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share | NOTE 6: EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended May 31, 2016 2015 Numerator for basic and diluted earnings per share $ 55,791 $ 154,022 Denominator for basic earnings per share - weighted average 14,961,076 14,833,107 Effects of dilutive securities: Stock options for employees, directors and outside consultants 44,031 93,535 Denominator for diluted earnings per share 15,005,107 14,926,642 Basic Earnings Per Share $ $ 0.01 Diluted Earnings Per Share $ $ 0.01 |
Other Comprehensive Income - (L
Other Comprehensive Income - (Loss) | 3 Months Ended |
May 31, 2016 | |
Equity [Abstract] | |
Other Comprehensive Income - (Loss) | NOTE 7: OTHER COMPREHENSIVE INCOME (LOSS) As of May 31, 2016, certain of the Companys marketable securities were in an unrealized loss position. Unrealized losses are principally due to changes in fair value of the investments held as available-for-sale. The Company has the ability and intent to hold the securities until maturity, or for the foreseeable future as classified as available-for-sale. The Company does not deem the decline to be other than temporary. As of May 31, 2016, the unrealized loss on available-for-sale securities was $14,199. The following table sets forth the changes in Accumulated Other Comprehensive Loss for the three months ended May 31, 2016: Unrealized Losses on Beginning Balance February 29, 2016 $ (70,140 ) Current Period Unrealized Gains 55,941 Ending Balance May 31, 2016 $ (14,199 ) |
Long Term Debt
Long Term Debt | 3 Months Ended |
May 31, 2016 | |
Notes to Financial Statements | |
Long Term Debt | NOTE 8: LONG TERM DEBT Long-term debt consists of the following: May 31, February 29, 2016 2016 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. 1,284,230 1,319,737 Total long term debt 1,284,230 1,319,737 Due within one year 137,642 143,388 Due after one year $ 1,146,588 $ 1,176,349 |
Revolving Line of Credit
Revolving Line of Credit | 3 Months Ended |
May 31, 2016 | |
Notes to Financial Statements | |
Revolving Line of Credit | NOTE 9: REVOLVING LINE OF CREDIT The Company has a $750,000 revolving line of credit at prime which was 3.50% at May 31, 2016. 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 May 31, 2016, the Companys outstanding balance was $0, and the unused credit line was $750,000. |
Segment Information
Segment Information | 3 Months Ended |
May 31, 2016 | |
Notes to Financial Statements | |
Segment Information | NOTE 10: 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 three months ended May 31, 2016 and 2015, segment information is as follows: Three Months Ended May 31, 2016 Three Months Ended May 31, 2015 Ultrasonic Rental Eliminations Consolidated Ultrasonic Rental Eliminations Consolidated Net Sales $ 2,216,211 $ 73,074 $ 49,074 $ 2,240,211 $ 2,858,597 $ 73,374 $ 49,074 $ 2,882,897 Rental Expense $ 49,074 $ 43,117 $ (49,074 ) $ 43,117 $ 49,074 $ 39,545 $ (49,074 ) $ 39,545 Interest Expense $ 13,745 $ 13,745 $ 75 $ 15,213 $ 15,288 Net Income (Loss) $ 88,653 $ (32,862 ) $ 55,791 $ 184,480 $ (30,458 ) $ 154,022 Assets $ 8,120,830 $ 2,437,225 $ 10,558,055 $ 8,078,215 $ 2,497,922 $ 10,576,137 Debt $ 1,284,230 $ 1,284,230 $ 5,149 $ 1,423,136 $ 1,428,285 |
Subsequent Events
Subsequent Events | 3 Months Ended |
May 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events | NOTE 11: SUBSEQUENT EVENTS The Company has evaluated subsequent events for disclosure purposes. |
Significant Accounting Polici17
Significant Accounting Policies (Policies) | 3 Months Ended |
May 31, 2016 | |
Notes to Financial Statements | |
Available-For-Sale Investments | Available-For-Sale Investments |
Cash and Cash Equivalents | Cash and Cash Equivalents - |
Consolidation | Consolidation |
Earnings Per Share | Earnings Per Share - |
Equipment, Furnishings and Leasehold Improvements | Equipment, Furnishings and Leasehold Improvements |
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 May 31, 2016 and February 29, 2016, respectively: Quoted Prices in Active Markets (Level 1) May 31, February 29, Marketable Securities $ 1,808,229 $ 1,695,689 Marketable Securities include mutual funds of $1,808,229 and $1,695,689 that are considered to be highly liquid and easily tradeable as of May 31, 2016 and February 29, 2016, respectively. 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. The Companys marketable securities are considered to be available-for-sale investments as defined under ASC 320 Investments Debt and Equity Securities. |
Income Taxes | Income Taxes |
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. |
Inventories | Inventories - |
Land and Buildings | Land and Buildings |
Long-Lived Assets | Long-Lived Assets - |
Management Estimates | Management Estimates - |
New Accounting Pronouncements | New Accounting Pronouncements- |
Reclassifications | Reclassifications |
Significant Accounting Polici18
Significant Accounting Policies (Tables) | 3 Months Ended |
May 31, 2016 | |
Notes to Financial Statements | |
Fair values of financial assets of the Company | Quoted Prices in Active Markets (Level 1) May 31, February 29, Marketable Securities $ 1,808,229 $ 1,695,689 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
May 31, 2016 | |
Inventories Tables | |
Inventories | May 31, February 29, 2016 2016 Raw materials and subassemblies $ 1,427,544 $ 1,452,566 Finished goods 538,428 549,106 Work in process 154,249 118,415 Total 2,120,221 2,120,087 Less: Allowance (202,704 ) (174,704 ) Net inventories $ 1,917,517 $ 1,945,383 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 31, 2016 | |
Earnings Per Share Tables | |
Computation of basic and diluted earnings per share | Three Months Ended May 31, 2016 2015 Numerator for basic and diluted earnings per share $ 55,791 $ 154,022 Denominator for basic earnings per share - weighted average 14,961,076 14,833,107 Effects of dilutive securities: Stock options for employees, directors and outside consultants 44,031 93,535 Denominator for diluted earnings per share 15,005,107 14,926,642 Basic Earnings Per Share $ $ 0.01 Diluted Earnings Per Share $ $ 0.01 |
Other Comprehensive Income - 21
Other Comprehensive Income - (Loss) (Tables) | 3 Months Ended |
May 31, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Unrealized Losses on Beginning Balance February 29, 2016 $ (70,140 ) Current Period Unrealized Gains 55,941 Ending Balance May 31, 2016 $ (14,199 ) |
Long Term Debt (Tables)
Long Term Debt (Tables) | 3 Months Ended |
May 31, 2016 | |
Long Term Debt Tables | |
Long-term debt | May 31, February 29, 2016 2016 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. 1,284,230 1,319,737 Total long term debt 1,284,230 1,319,737 Due within one year 137,642 143,388 Due after one year $ 1,146,588 $ 1,176,349 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
May 31, 2016 | |
Segment Information Tables | |
Segment information | Three Months Ended May 31, 2016 Three Months Ended May 31, 2015 Ultrasonic Rental Eliminations Consolidated Ultrasonic Rental Eliminations Consolidated Net Sales $ 2,216,211 $ 73,074 $ 49,074 $ 2,240,211 $ 2,858,597 $ 73,374 $ 49,074 $ 2,882,897 Rental Expense $ 49,074 $ 43,117 $ (49,074 ) $ 43,117 $ 49,074 $ 39,545 $ (49,074 ) $ 39,545 Interest Expense $ 13,745 $ 13,745 $ 75 $ 15,213 $ 15,288 Net Income (Loss) $ 88,653 $ (32,862 ) $ 55,791 $ 184,480 $ (30,458 ) $ 154,022 Assets $ 8,120,830 $ 2,437,225 $ 10,558,055 $ 8,078,215 $ 2,497,922 $ 10,576,137 Debt $ 1,284,230 $ 1,284,230 $ 5,149 $ 1,423,136 $ 1,428,285 |
Significant Accounting Polici24
Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($) | May 31, 2016 | Feb. 29, 2016 |
Marketable Securities | $ 1,808,229 | $ 1,695,689 |
Quoted Prices in Active Markets (Level 1) | ||
Marketable Securities | $ 1,808,229 | $ 1,695,689 |
Significant Accounting Polici25
Significant Accounting Policies - Fair values of financial assets of the Company (Details Narrative) - USD ($) | May 31, 2016 | Feb. 29, 2016 |
Notes to Financial Statements | ||
Mutual funds | $ 1,808,229 | $ 1,695,689 |
Significant Accounting Polici26
Significant Accounting Policies - Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | |
May 31, 2016 | Feb. 29, 2016 | |
Accumulated amortization of intangible assets | $ 131,000 | $ 127,900 |
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 ($) | May 31, 2016 | Feb. 29, 2016 |
Inventories Tables | ||
Raw materials and subassemblies | $ 1,427,544 | $ 1,452,566 |
Finished goods | 538,428 | 549,106 |
Work in process | 154,249 | 118,415 |
Total | 2,120,221 | 2,120,087 |
Less: Allowance | 202,704 | 174,704 |
Net inventories | $ 1,917,517 | $ 1,945,383 |
Stock Options and Warrants (Det
Stock Options and Warrants (Details Narrative) - shares | 3 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Additional stock options to be granted | 44,031 | 93,535 |
2013 Stock Incentive Plan | ||
Stock options shares available for purchase | 2,500,000 | |
Stock options outstanding | 246,600 | |
Years until options expire | 10 years | |
2003 Stock Incentive Plan | ||
Stock options shares available for purchase | 1,500,000 | |
Stock options outstanding | 207,500 | |
Additional stock options to be granted | 0 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Notes to Financial Statements | ||
Options issued | 0 | |
Additional stock-based compensation expense as a result of applying ASC 718 | $ 7,552 | $ 11,061 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Earnings Per Share Tables | ||
Numerator for basic and diluted earnings per share | $ 55,791 | $ 154,022 |
Denominator for basic earnings per share - weighted average | 14,961,076 | 14,833,107 |
Effects of dilutive securities: | ||
Stock options for employees, directors and outside consultants | 44,031 | 93,535 |
Denominator for diluted earnings per share | 15,005,107 | 14,926,642 |
Basic Earnings Per Share | $ 0 | $ 0.01 |
Diluted Earnings Per Share | $ 0 | $ 0.01 |
Other Comprehensive Income - 31
Other Comprehensive Income - (Loss) - Changes in Accumulated Other Comprehensive Loss (Details) - Accumulated Other Comprehensive Loss | 3 Months Ended |
May 31, 2016USD ($) | |
Unrealized Losses on Available for Sale Securities | |
Beginning Balance February 29, 2016 | $ (70,140) |
Current Period Unrealized Gains | 55,941 |
Ending Balance May 31, 2016 | $ (14,199) |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) | May 31, 2016 | Feb. 29, 2016 |
Long-term debt | $ 1,284,230 | $ 1,319,737 |
Due within one year | 137,642 | 143,388 |
Due after one year | 1,146,588 | 1,176,349 |
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 | $ 1,284,230 | $ 1,319,737 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details Narrative) - Revolving Line of Credit | 3 Months Ended |
May 31, 2016USD ($) | |
Line of credit description | The Company has a $750,000 revolving line of credit at prime which was 3.50% at May 31, 2016. 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 | ||
May 31, 2016 | May 31, 2015 | Feb. 29, 2016 | |
Net Sales | $ 2,240,211 | $ 2,882,897 | |
Rental Expense | 43,117 | 39,545 | |
Interest Expense | 13,745 | 15,288 | |
Net Income | 55,791 | 154,022 | |
Assets | 10,558,055 | $ 10,669,537 | |
Debt | 1,284,230 | $ 1,319,737 | |
Ultrasonic Spraying | |||
Net Sales | 2,216,211 | 2,858,597 | |
Rental Expense | 49,074 | 49,074 | |
Interest Expense | 75 | ||
Net Income | 88,653 | 184,480 | |
Assets | 8,120,830 | 8,078,215 | |
Debt | 5,149 | ||
Rental Real Estate Operations | |||
Net Sales | 73,074 | 73,374 | |
Rental Expense | 43,117 | 39,545 | |
Interest Expense | 13,745 | 15,213 | |
Net Income | (32,862) | (30,458) | |
Assets | 2,437,225 | 2,497,922 | |
Debt | 1,284,230 | 1,423,136 | |
Eliminations | |||
Net Sales | 49,074 | 49,074 | |
Rental Expense | (49,074) | (49,074) | |
Consolidated | |||
Net Sales | 2,240,211 | 2,882,897 | |
Rental Expense | 43,117 | 39,545 | |
Interest Expense | 13,745 | 15,288 | |
Net Income | 55,791 | 154,022 | |
Assets | 10,558,055 | 10,576,137 | |
Debt | $ 1,284,230 | $ 1,428,285 |