Sono-Tek (SOTK) 10-Q 17 Oct 16 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Aug. 31, 2016	Oct. 14, 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	Aug. 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	Q2
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Aug. 31, 2016	Feb. 29, 2016
Current Assets:
Cash and cash equivalents	$ 2,676,181	$ 2,388,355
Marketable Securities	1,858,953	1,695,689
Accounts receivable	900,966	1,214,713
Inventories, net	1,849,185	1,945,383
Prepaid expenses and other current assets	60,357	109,954
Deferred tax asset	154,914	154,914
Total current assets	7,500,556	7,509,008
Land	250,000	250,000
Buildings, net	1,907,394	1,939,714
Equipment, furnishings and building improvements, net	758,726	796,788
Intangible and other assets, net	164,588	174,027
TOTAL ASSETS	10,581,264	10,669,537
Current Liabilities:
Accounts payable	394,253	475,297
Accrued expenses	715,635	746,036
Customer deposits	226,665	201,478
Current maturities of long term debt	137,642	143,388
Income taxes payable	79,458	87,660
Total current liabilities	1,553,653	1,653,859
Deferred tax liability	171,719	171,719
Long term debt, less current maturities	1,111,008	1,176,349
Total liabilities	2,836,380	3,001,927
Commitments and Contingencies
Stockholders' Equity
Common stock	149,611	149,554
Additional paid-in capital	8,830,951	8,812,224
Accumulated deficit	(1,257,910)	(1,224,028)
Accumulated other comprehensive loss	22,232	(70,140)
Total stockholders' equity	7,744,884	7,667,610
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 10,581,264	$ 10,669,537

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Aug. 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 Operations and Other Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Income Statement [Abstract]
Net Sales	$ 2,310,451	$ 2,974,673	$ 4,550,663	$ 5,857,570
Cost of Goods Sold	1,285,138	1,485,069	2,501,947	2,994,835
Gross Profit	1,025,313	1,489,604	2,048,716	2,862,735
Operating Expenses
Research and product development costs	312,617	332,806	616,411	614,937
Marketing and selling expenses	532,087	592,074	1,079,069	1,163,701
General and administrative costs	232,418	287,503	501,607	544,288
Rental operations expense	38,454	38,787	81,571	78,332
Total Operating Expenses	1,115,576	1,251,170	2,278,658	2,401,258
Operating Income (Loss)	(90,263)	238,434	(229,942)	461,477
Interest Expense	(13,367)	(14,851)	(27,113)	(30,064)
Interest Income	15,521	12,708	33,104	26,395
Other (expense) income	811	(40,180)	202,069	(54,460)
Income (Loss) from Operations Before Income Taxes	(87,298)	196,111	(21,882)	403,348
Income Tax Expense	2,375	52,521	12,000	105,736
Net Income (Loss)	(89,673)	143,590	(33,882)	297,612
Other Comprehensive Income
Net unrealized gain on marketable securities	36,431		92,372
Comprehensive Income (loss)	$ (53,242)	$ 143,590	$ 58,490	$ 297,612
Basic Earnings (Loss) Per Share	$ (0.01)	$ 0.01	$ 0	$ 0.02
Diluted Earnings Per (Loss) Share	$ (0.01)	$ 0.01	$ 0	$ 0.02
Weighted Average Shares - Basic	14,961,076	14,944,124	14,961,076	14,938,615
Weighted Average Shares - Diluted	14,961,076	15,046,066	14,961,076	15,033,588

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$ (33,882)	$ 297,612
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	239,503	215,792
Stock based compensation expense	18,784	22,085
Allowance for doubtful accounts		(3,047)
Inventory reserve	35,006	60,000
Unrealized loss on marketable securities		53,779
(Increase) Decrease in:
Accounts receivable	313,747	(72,417)
Inventories	61,190	(435,436)
Prepaid expenses and other current assets	49,597	41,841
Increase (Decrease) in:
Accounts payable and accrued expenses	(111,445)	(34,094)
Customer deposits	25,187	(50,127)
Income taxes payable	(8,202)	(122,978)
Net Cash Provided by (Used in) Operating Activities	589,485	(26,990)
CASH FLOWS FROM INVESTING ACTIVITIES:
Patent application and other asset costs		(6,776)
Purchase of equipment and furnishings	(159,680)	(236,021)
Purchase of marketable securities	(70,892)	(21,554)
Net Cash (Used in) Investing Activities	(230,572)	(264,351)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		2,675
Repayments of notes payable and loans	(71,087)	(88,886)
Net Cash (Used In) Financing Activities	(71,087)	(86,211)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	287,826	(377,552)
CASH AND CASH EQUIVALENTS
Beginning of period	2,388,355	2,562,782
End of period	2,676,181	2,185,230
SUPPLEMENTAL DISCLOSURE:
Interest paid	27,113	30,064
Income Taxes Paid	$ 8,202	$ 228,618

Business Description

Business Description	6 Months Ended
	Aug. 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	6 Months Ended
	Aug. 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 entity’s own assumptions. The fair values of financial assets of the Company were determined using the following categories at August 31, 2016 and February 29, 2016, respectively: Quoted Prices in Active Markets (Level 1) August 31, February 29, Marketable Securities $ 1,858,953 $ 1,695,689 Marketable Securities include mutual funds of $1,858,953 and $1,695,689 that are considered to be highly liquid and easily tradeable as of August 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 Company’s fair value hierarchy. The Company’s 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	6 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Inventories	NOTE 3: INVENTORIES Inventories consist of the following: August 31, February 29, 2016 2016 Raw materials and subassemblies $ 1,346,235 $ 1,452,566 Finished goods 610,776 549,106 Work in process 101,884 118,415 Total 2,058,895 2,120,087 Less: Allowance (209,710 ) (174,704 ) Net inventories $ 1,849,185 $ 1,945,383

Stock Options and Warrants

Stock Options and Warrants	6 Months Ended
	Aug. 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 August 31, 2016, there were 200,500 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, 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. 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 six months ended August 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 $19,000 and $22,000 in additional compensation expense during the six months ended August 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 (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Earnings Per Share	NOTE 6: EARNINGS (LOSS) PER SHARE The denominators for the calculation of diluted earnings per share at August 31, 2016 and 2015 are calculated as follows: Six Months Ended Three Months Ended 2016 2015 2016 2015 Denominator for basic earnings (loss) per share 14,961,076 14,938,615 14,961,076 14,944,124 Dilutive effect of stock options — 94,973 — 101,942 Denominator for diluted earnings (loss) per share 14,961,076 15,033,588 14,961,076 15,046,066 The effect of stock options for the three and six months ended August 31, 2016 are not used in the calculation of earnings per share. Due to the net loss for the three and six month periods ended August 31, 2016, the inclusion of stock options in the calculations would have an anti-dilutive effect. For the three and six months ended August 31, 2016, potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share consist of 369,520 stock options.

Other Comprehensive Income (Los

Other Comprehensive Income (Loss)	6 Months Ended
	Aug. 31, 2016
Equity [Abstract]
Other Comprehensive Income (Loss)	NOTE 7: OTHER COMPREHENSIVE INCOME As of August 31, 2016, certain of the Company’s marketable securities were in an unrealized gain position. Unrealized gains and 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 these unrealized gains or losses to be other than temporary. As of August 31, 2016, the unrealized gain on available-for-sale securities was $22,232. The following table sets forth the changes in Accumulated Other Comprehensive Gain (Loss) for the six months ended August 31, 2016: Unrealized Beginning Balance February 29, 2016 $ (70,140 ) Current Period Unrealized Gains 92,372 Ending Balance August 31, 2016 $ 22,232

Long Term Debt

Long Term Debt	6 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Long Term Debt	NOTE 8: LONG TERM DEBT Long-term debt consists of the following: August 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. 1,248,650 1,319,737 Total long term debt 1,248,650 1,319,737 Due within one year 137,642 143,388 Due after one year $ 1,111,008 $ 1,176,349

Revolving Line of Credit

Revolving Line of Credit	6 Months Ended
	Aug. 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 August 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 August 31, 2016, the Company’s outstanding balance was $0, and the unused credit line was $750,000.

Segment Information

Segment Information	6 Months Ended
	Aug. 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 six and three months ended August 31, 2016 and 2015, segment information is as follows: Six Months Ended August 31, 2016 Three Months Ended August 31, 2016 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental Eliminations Consolidated Net Sales $ 4,502,365 $ 146,447 $ 98,149 $ 4,550,663 $ 2,286,153 $ 73,372 $ 49,074 $ 2,310,451 Rental Expense $ 98,149 $ 45,331 ($ 98,149 ) $ 45,331 $ 49,074 $ 20,408 $ (49,074 ) $ 20,408 Depreciation Expense $ 197,744 $ 36,240 $ 233,984 $ 103,866 $ 18,046 $ 121,912 Interest Expense $ — $ 27,113 $ 27,113 $ — $ 13,367 $ 13,367 Net Income (Loss) $ 26,503 ($ 60,385 ) ($ 33,882 ) ($ 62,150 ) ($ 27,523 ) ($ 89,673 ) Assets $ 8,156,775 $ 2,424,489 $ 10,581,264 $ 8,156,775 $ 2,424,489 $ 10,581,264 Debt $ — $ 1,248,650 $ 1,248,650 $ — $ 1,248,650 $ 1,248,650 Six Months Ended August 31, 2015 Three Months Ended August 31, 2015 Ultrasonic Spraying Rental Real Estate Operations Eliminations Consolidated Ultrasonic Spraying Rental Real Estate Operations 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 $ 42,091 $ (98,149 ) $ 42,091 $ 49,074 $ 20,293 $ (49,074 ) $ 20,293 Depreciation Expense $ 174,244 $ 36,241 $ 210,485 $ 92,571 $ 18,194 $ 110,765 Interest Expense $ 75 $ 29,989 $ 30,064 $ — $ 14,851 $ 14,851 Net Income (Loss) $ 359,183 $ (61,571 ) $ 297,612 $ 174,778 ($ 31,188 ) $ 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

Subsequent Events

Subsequent Events	6 Months Ended
	Aug. 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)	6 Months Ended
	Aug. 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 entity’s own assumptions. The fair values of financial assets of the Company were determined using the following categories at August 31, 2016 and February 29, 2016, respectively: Quoted Prices in Active Markets (Level 1) August 31, February 29, Marketable Securities $ 1,858,953 $ 1,695,689 Marketable Securities include mutual funds of $1,858,953 and $1,695,689 that are considered to be highly liquid and easily tradeable as of August 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 Company’s fair value hierarchy. The Company’s 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)	6 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Fair values of financial assets of the Company	Quoted Prices in Active Markets (Level 1) August 31, February 29, Marketable Securities $ 1,858,953 $ 1,695,689

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Aug. 31, 2016
Inventories Tables
Inventories	August 31, February 29, 2016 2016 Raw materials and subassemblies $ 1,346,235 $ 1,452,566 Finished goods 610,776 549,106 Work in process 101,884 118,415 Total 2,058,895 2,120,087 Less: Allowance (209,710 ) (174,704 ) Net inventories $ 1,849,185 $ 1,945,383

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Aug. 31, 2016
Earnings Loss Per Share Tables
Computation of basic and diluted earnings per share	Six Months Ended Three Months Ended 2016 2015 2016 2015 Denominator for basic earnings (loss) per share 14,961,076 14,938,615 14,961,076 14,944,124 Dilutive effect of stock options — 94,973 — 101,942 Denominator for diluted earnings (loss) per share 14,961,076 15,033,588 14,961,076 15,046,066

Other Comprehensive Income (L21

Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Aug. 31, 2016
Equity [Abstract]
Changes in Accumulated Other Comprehensive Loss	Unrealized Beginning Balance February 29, 2016 $ (70,140 ) Current Period Unrealized Gains 92,372 Ending Balance August 31, 2016 $ 22,232

Long Term Debt (Tables)

Long Term Debt (Tables)	6 Months Ended
	Aug. 31, 2016
Long Term Debt Tables
Long-term debt	August 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. 1,248,650 1,319,737 Total long term debt 1,248,650 1,319,737 Due within one year 137,642 143,388 Due after one year $ 1,111,008 $ 1,176,349

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Aug. 31, 2016
Segment Information Tables
Segment information	Six Months Ended August 31, 2016 Three Months Ended August 31, 2016 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental Eliminations Consolidated Net Sales $ 4,502,365 $ 146,447 $ 98,149 $ 4,550,663 $ 2,286,153 $ 73,372 $ 49,074 $ 2,310,451 Rental Expense $ 98,149 $ 45,331 ($ 98,149 ) $ 45,331 $ 49,074 $ 20,408 $ (49,074 ) $ 20,408 Depreciation Expense $ 197,744 $ 36,240 $ 233,984 $ 103,866 $ 18,046 $ 121,912 Interest Expense $ — $ 27,113 $ 27,113 $ — $ 13,367 $ 13,367 Net Income (Loss) $ 26,503 $ (60,385 ) $ (33,882 ) $ (62,150 ) $ (27,523 ) $ (89,673 ) Assets $ 8,156,775 $ 2,424,489 $ 10,581,264 $ 8,156,775 $ 2,424,489 $ 10,581,264 Debt $ — $ 1,248,650 $ 1,248,650 $ — $ 1,248,650 $ 1,248,650 Six Months Ended August 31, 2015 Three Months Ended August 31, 2015 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental 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 $ 42,091 $ (98,149 ) $ 42,091 $ 49,074 $ 20,293 $ (49,074 ) $ 20,293 Depreciation Expense $ 174,244 $ 36,241 $ 210,485 $ 92,571 $ 18,194 $ 110,765 Interest Expense $ 75 $ 29,989 $ 30,064 $ — $ 14,851 $ 14,851 Net Income (Loss) $ 359,183 $ (61,571 ) $ 297,612 $ 174,778 ($ 31,188 ) $ 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

Significant Accounting Polici24

Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($)	Aug. 31, 2016	Feb. 29, 2016
Marketable Securities	$ 1,858,953	$ 1,695,689
Quoted Prices in Active Markets (Level 1)
Marketable Securities		$ 1,695,689

Significant Accounting Polici25

Significant Accounting Policies - Fair values of financial assets of the Company (Details Narrative) - USD ($)	Aug. 31, 2016	Feb. 29, 2016
Notes to Financial Statements
Mutual funds	$ 1,858,953	$ 1,695,689

Significant Accounting Polici26

Significant Accounting Policies - Intangible Assets (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2016	Feb. 29, 2016
Accumulated amortization of intangible assets	$ 133,000	$ 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 ($)	Aug. 31, 2016	Feb. 29, 2016
Inventories Tables
Raw materials and subassemblies	$ 1,346,235	$ 1,452,566
Finished goods	610,776	549,106
Work in process	101,884	118,415
Total	2,058,895	2,120,087
Less: Allowance	209,710	174,704
Net inventories	$ 1,849,185	$ 1,945,383

Stock Options and Warrants (Det

Stock Options and Warrants (Details Narrative)	6 Months Ended
	Aug. 31, 2016shares
2013 Stock Incentive Plan
Stock options shares available for purchase	2,500,000
Stock options outstanding	641,600
Years until options expire	10 years
2003 Stock Incentive Plan
Stock options shares available for purchase	1,500,000
Stock options outstanding	200,500
Additional stock options to be granted	0

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Notes to Financial Statements
Additional stock-based compensation expense as a result of applying ASC 718	$ 18,784	$ 22,085

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Denominators for the calculation of diluted earnings per share
Denominator for basic earnings (loss) per share - weighted average	14,961,076	14,944,124	14,961,076	14,938,615
Dilutive effect of stock options		101,942		94,973
Denominator for diluted earnings (loss) per share	14,961,076	15,046,066	14,961,076	15,033,588
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share	369,520		369,520

Other Comprehensive Income (L31

Other Comprehensive Income (Loss) (Details) - Accumulated Other Comprehensive Gain (Loss)	6 Months Ended
	Aug. 31, 2016USD ($)
Unrealized Gain (Loss) on Available for Sale Securities
Beginning Balance February 29, 2016	$ (70,140)
Current Period Unrealized Gains	92,372
Ending Balance August 31, 2016	$ 22,232

Long Term Debt (Details)

Long Term Debt (Details) - USD ($)	Aug. 31, 2016	Feb. 29, 2016
Long-term debt	$ 1,248,650	$ 1,319,737
Due within one year	137,642	143,388
Due after one year	1,111,008	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	$ 1,248,650	$ 1,319,737

Revolving Line of Credit (Detai

Revolving Line of Credit (Details Narrative) - Revolving Line of Credit	6 Months Ended
	Aug. 31, 2016USD ($)
Line of credit description	The Company has a $750,000 revolving line of credit at prime which was 3.50% at August 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		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015	Feb. 29, 2016
Net Sales	$ 2,310,451	$ 2,974,673	$ 4,550,663	$ 5,857,570
Rental Expense	38,454	38,787	81,571	78,332
Interest Expense	13,367	14,851	27,113	30,064
Net Income	(89,673)	143,590	(33,882)	297,612
Assets	10,581,264		10,581,264		$ 10,669,537
Debt	1,248,650		1,248,650		$ 1,319,737
Ultrasonic Spraying
Net Sales	2,286,153	2,952,223	4,502,365	5,810,820
Rental Expense	49,074	49,074	98,149	98,149
Depreciation Expense	103,866	92,571	197,744	174,244
Interest Expense				75
Net Income	(62,150)	174,778	26,503	359,183
Assets	8,156,775	8,132,679	8,156,775	8,132,679
Debt
Rental Real Estate Operations
Net Sales	73,372	71,524	146,447	144,899
Rental Expense	20,408	20,293	45,331	42,091
Depreciation Expense	18,046	18,194	36,240	36,241
Interest Expense	13,367	14,851	27,113	29,989
Net Income	(27,523)	(31,188)	(60,385)	(61,571)
Assets	2,424,489	2,484,258	2,424,489	2,484,258
Debt	1,248,650	1,389,035	1,248,650	1,389,035
Eliminations
Net Sales	49,074	49,074	98,149	98,149
Rental Expense	(49,074)	(49,074)	(98,149)	(98,149)
Consolidated
Net Sales	2,310,451	2,974,673	4,550,663	5,857,570
Rental Expense	20,408	20,293	45,331	42,091
Depreciation Expense	121,912	110,765	233,984	210,485
Interest Expense	13,367	14,851	27,113	30,064
Net Income	(89,673)	143,590	(33,882)	297,612
Assets	10,581,264	10,616,937	10,581,264	10,616,937
Debt	$ 1,248,650	$ 1,389,035	$ 1,248,650	$ 1,389,035