Sono-Tek (SOTK) 10-K 26 May 17 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Feb. 28, 2017	May 18, 2017	Aug. 31, 2016
Document And Entity Information
Entity Registrant Name	SONO TEK CORP
Entity Central Index Key	806,172
Document Type	10-K
Document Period End Date	Feb. 28, 2017
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 Public Float			$ 13,000,935
Entity Common Stock, Shares Outstanding		14,961,076
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Feb. 28, 2017	Feb. 29, 2016
Current Assets:
Cash and cash equivalents	$ 2,557,223	$ 2,388,355
Marketable Securities	2,342,184	1,695,689
Accounts receivable (less allowance of $46,000)	1,150,801	1,214,713
Inventories, net	1,340,684	1,945,383
Prepaid expenses and other current assets	127,276	109,954
Deferred tax asset	315,171	154,914
Total current assets	7,833,339	7,509,008
Land	250,000	250,000
Buildings, net	1,875,074	1,939,714
Equipment, furnishings and leasehold improvements, net	624,197	796,788
Intangible assets, net	153,326	174,027
TOTAL ASSETS	10,735,936	10,669,537
Current Liabilities:
Accounts payable	336,561	475,297
Accrued expenses	868,755	746,036
Customer deposits	78,902	201,478
Current maturities of long term debt	149,698	143,388
Income taxes payable	14,619	87,660
Total current liabilities	1,448,535	1,653,859
Deferred tax liability	337,726	171,719
Long term debt, less current maturities	1,026,650	1,176,349
Total liabilities	2,812,911	3,001,927
Commitments and Contingencies
Stockholders' Equity
Common stock	149,611	149,554
Additional paid-in capital	8,859,486	8,812,224
Accumulated deficit	(1,128,322)	(1,224,028)
Accumulated other comprehensive income (loss)	42,250	(70,140)
Total stockholders' equity	7,923,025	7,667,610
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 10,735,936	$ 10,669,537

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Feb. 28, 2017	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

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Income Statement [Abstract]
Net Sales	$ 9,724,553	$ 11,833,730
Cost of Goods Sold	5,230,559	6,195,953
Gross Profit	4,493,994	5,637,777
Operating Expenses
Research and product development	1,249,591	1,268,010
Marketing and selling	2,197,991	2,371,064
General and administrative	1,034,239	1,099,783
Real estate operations expense	160,440	158,629
Total Operating Expenses	4,642,261	4,897,486
Operating (Loss) Income	(148,267)	740,291
Other Income (Expense):
Interest Expense	(52,294)	(58,447)
Interest and Dividend Income	70,797	54,757
Other Income	206,096	5,851
Income Before Income Taxes	76,332	742,452
Income Tax (Benefit) Expense	(19,374)	194,723
Net Income	95,706	547,729
Other Comprehensive Income (Loss)
Net unrealized income (loss) on marketable securities	112,390	(70,140)
Comprehensive Income	$ 208,096	$ 477,589
Basic Earnings Per Share	$ 0.01	$ 0.04
Diluted Earnings Per Share	$ 0.01	$ 0.04
Weighted Average Shares - Basic	14,961,076	14,943,018
Weighted Average Shares - Diluted	15,018,282	15,029,601

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Beginning balance (shares) at Feb. 28, 2015	14,933,107
Beginning balance at Feb. 28, 2015	$ 149,331	$ 8,766,160		$ (1,771,757)	$ 7,143,734
Exercise of stock options (shares)	22,293
Exercise of stock options	$ 223	2,662			2,885
Stock based compensation expense		43,402			43,402
Unrealized loss on marketable securities			(70,140)		(70,140)
Net Income				547,729	547,729
Ending balance (shares) at Feb. 29, 2016	14,955,400
Ending balance at Feb. 29, 2016	$ 149,554	8,812,224	(70,140)	(1,224,028)	7,667,610
Exercise of stock options (shares)	5,676
Exercise of stock options	$ 57	(57)
Stock based compensation expense		47,319			47,319
Unrealized loss on marketable securities			112,390		112,390
Net Income				95,706	95,706
Ending balance (shares) at Feb. 28, 2017	14,961,076
Ending balance at Feb. 28, 2017	$ 149,611	$ 8,859,486	$ 42,250	$ (1,128,322)	$ 7,923,025

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 95,706	$ 547,729
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	440,223	476,528
Stock based compensation expense	47,319	43,402
Inventory reserve	80,006	(119,924)
Allowance for doubtful accounts		2,953
Deferred tax expense	5,750	106,826
(Increase) Decrease in:
Accounts receivable	63,912	(188,416)
Inventories	524,693	233,718
Prepaid expenses and other assets	(17,322)	(15,467)
(Decrease) Increase in:
Accounts payable and accrued expenses	(16,017)	(55,568)
Customer deposits	(122,576)	(260,690)
Income taxes payable	(73,041)	(142,267)
Net Cash Provided by Operating Activities	1,028,653	628,824
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of equipment, furnishings and leasehold improvements	(182,837)	(465,427)
(Purchase) of marketable securities	(533,559)	(164,825)
Patent application and other asset costs		(17,700)
Net Cash (Used In) Investing Activities	(716,396)	(647,952)
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from exercise of options		2,885
Repayment of long term debt	(143,389)	(158,184)
Net Cash (Used In) Financing Activities	(143,389)	(155,299)
NET (DECREASE) IN CASH AND CASH EQUIVALENTS	168,868	(174,427)
CASH AND CASH EQUIVALENTS
Beginning of year	2,388,355	2,562,782
End of year	2,557,223	2,388,355
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid	52,294	58,447
Income Taxes Paid	$ 56,502	$ 230,289

Business Description

Business Description	12 Months Ended
	Feb. 28, 2017
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	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Significant Accounting Policies	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Advertising Expenses - Allowance for doubtful accounts - Available-For-Sale Investments – Cash and Cash Equivalents - Concentration of Credit Risk - The Company had one customer, which accounted for 7% of sales during the year ended February 29, 2016. Four customers accounted for 40% of the outstanding accounts receivables at February 29, 2016. 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 February 28, 2017 and February 29, 2016, respectively: Quoted Prices in Active Markets (Level 1) February 28, February 29, 2017 2016 Marketable Securities $ 2,342,184 $ 1,695,689 Marketable Securities include mutual funds of $2,342,184 and $1,695,689, that are considered to be highly liquid and easily tradeable as of February 28, 2017 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 - Inventories - Land and Buildings – Long-Lived Assets - Management Estimates - New Accounting Pronouncements- Product Warranty Reclassifications – Recognition of Revenue Research and Product Development Expenses - Shipping and Handling Costs –

Segment Information

Segment Information	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Segment Information	NOTE 3: 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. Segment information is as follows: Fiscal Year Ended February 28, 2017 Fiscal Year Ended February 29, 2016 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental Eliminations Consolidated Net Sales $ 9,634,956 $ 285,895 $ 196,298 $ 9,724,553 $ 11,738,982 $ 291,046 $ 196,298 $ 11,833,730 Rental Expense $ 196,298 $ — $ (196,298 ) $ — $ 196,298 $ — $ (196,298 ) $ — Rental Operations Expense $ — $ 85,976 $ 85,976 $ 85,887 $ 85,887 Depreciation Expense $ 354,896 $ 74,464 $ 429,360 $ 392,803 $ 72,629 $ 465,432 Interest Expense $ — $ 52,294 $ 52,294 $ 83 $ 58,364 $ 58,447 Net Income (Loss) $ 218,843 $ (123,137 ) $ 95,706 $ 669,974 $ (122,245 ) $ 547,729 Assets $ 8,346,183 $ 2,389,753 $ 10,735,936 $ 8,214,873 $ 2,454,664 $ 10,669,537 Debt $ — $ 1,176,348 $ 1,176,348 $ — $ 1,319,737 $ 1,319,737

Stock Based Compensation

Stock Based Compensation	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Stock Based Compensation	NOTE 4: STOCK-BASED COMPENSATION The Company adopted ASC 718, “Share Based Payments.” which requires companies to expense the value of employee stock options and similar awards. The weighted-average fair value of options has been estimated on the date of grant using the Black-Scholes options-pricing model. The weighted-average Black-Scholes assumptions are as follows: Fiscal Year Ended February 28, February 29, Expected life 4 years 8 years Risk free interest rate 1.16% .91% -1.03% Expected volatility 28.02% 18.73% - 23.72% Expected dividend yield 0% 0% 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 years ended February 28, 2017 and February 29, 2016, net income and earnings per share reflect the actual deduction for stock-based compensation expense. The impact of applying ASC 718 approximated $47,319 and $43,402 in additional compensation expense for the years then ended, respectively. Such amount is included in general and administrative expenses on the statement of operations. The expense for stock-based compensation is a non-cash expense item.

Inventories

Inventories	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Inventories	NOTE 5: INVENTORIES Inventories consist of the following: February 28, February 29, 2017 2016 Raw materials and subassemblies $ 1,197,506 $ 1,452,566 Finished goods 369,428 549,106 Work in process 28,460 118,415 Total 1,595,394 2,120,087 Less: Allowance (254,710 ) (174,704 ) Net inventories $ 1,340,684 $ 1,945,383

Buildings, Equipment, Furnishin

Buildings, Equipment, Furnishings and Leasehold Improvements	12 Months Ended
	Feb. 28, 2017
Property, Plant and Equipment [Abstract]
Buildings, Equipment, Furnishings and Leasehold Improvements	NOTE 6: BUILDINGS, EQUIPMENT, FURNISHINGS AND LEASEHOLD IMPROVEMENTS Equipment, furnishings and leasehold improvements consist of the following: February 28, February 29, 2017 2016 Buildings $ 2,250,000 $ 2,250,000 Laboratory equipment 1,012,824 872,836 Machinery and equipment 858,694 857,994 Leasehold improvements 369,433 368,572 Tradeshow and demonstration equipment 1,072,425 1,037,830 Furniture and fixtures 907,428 891,443 Totals 6,470,804 6,278,675 Less: Accumulated depreciation (3,971,533 ) (3,542,173 ) $ 2,499,271 $ 2,736,502 Depreciation expense for the years ended February 28, 2017 and February 29, 2016 was $429,360 and $465,432, respectively.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Feb. 28, 2017
Payables and Accruals [Abstract]
Accrued Expenses	NOTE 7: ACCRUED EXPENSES Accrued expenses consist of the following: February 28, February 29, 2017 2016 Accrued compensation $ 303,711 $ 305,189 Estimated warranty costs 32,700 38,250 Accrued commissions 255,604 172,461 Professional fees 63,462 51,492 Other accrued expenses 213,278 178,644 $ 868,755 $ 746,036

Revolving Line of Credit

Revolving Line of Credit	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Revolving Line of Credit	NOTE 8: REVOLVING LINE OF CREDIT The Company has a $750,000 revolving line of credit at prime which was 3.75% at February 28, 2017 and 3.50% at February 29, 2016. The line of credit is collateralized by all 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 February 28, 2017 and February 29, 2016, the Company’s outstanding balance was $0, and the unused credit line was $750,000.

Long Term Debt

Long Term Debt	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Long Term Debt	NOTE 9: LONG-TERM DEBT Long-term debt consists of the following: February 28, February 29, 2017 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. 1,176,348 1,319,737 Total long term debt 1,176,348 1,319,737 Due within one year 149,698 143,388 Due after one year $ 1,026,650 $ 1,176,349 Long-term debt is payable as follows: Fiscal Year ending February 28, 2018 149,698 2019 156,119 2020 162,816 2021 169,716 2022 177,081 Thereafter 360,918 $ 1,176,348

Bank Guarantees

Bank Guarantees	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Bank Guarantees	NOTE 10: BANK GUARANTEES As of February 28, 2017, $77,543 of the Company’s cash on deposit with a foreign bank was being utilized to collateralize guarantees issued by the bank in favor of international customers of the Company to secure cash deposits on orders that have been remitted to the Company. The customers may exercise the guarantees, subject to certain performance requirements being met by the Company. The guarantees expire at various dates in 2017.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Feb. 28, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 11: COMMITMENTS AND CONTINGENCIES The Company did not have any material commitments or contingencies as of February 28, 2017.

Income Taxes

Income Taxes	12 Months Ended
	Feb. 28, 2017
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 12: INCOME TAXES The annual provision (benefit) for income taxes differs from amounts computed by applying the maximum U.S. Federal income tax rate of 34% to pre-tax income as follows: February 28, February 29, Expected federal income tax $ 64,165 $ 252,321 State tax, net of federal 10,002 39,059 Research and development tax credits (70,827 ) (135,904 ) Overaccrual of prior year taxes (63,351 ) (67,579 ) Deferred tax expense (5,080 ) 106,826 Permanent timing difference 17,795 — Other adjustments 27,922 — Income tax (Benefit) Expense $ (19,374 ) $ 194,723 The deferred tax asset and liability are comprised of the following: February 28, February 29, 2017 2016 Inventory $ 253,500 $ 87,000 Allowance for accounts receivable 18,100 18,000 Accrued expenses and other 43,500 50,000 Deferred tax asset - Current 315,100 155,000 Research tax credits 143,000 102,000 Accrued expenses 13,000 15,000 Intangible asset amortization (30,000 ) (39,000 ) Building and leasehold depreciation (464,000 ) (250,000 ) Deferred tax liability – Long Term ($ 338,000 ) ($ 172,000 ) At February 28, 2017 and February 29, 2016, the Company had $143,000 and $102,000 of research and development tax credits, respectively, being carried forward.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Feb. 28, 2017
Equity [Abstract]
Stockholders' Equity	NOTE 13: STOCKHOLDERS’ EQUITY 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 February 28, 2017, there were 205,500 options outstanding under the 2003 Plan, under which no additional options may be granted. Under the 2013 Stock Incentive Plan, option prices must be at least 100% of the fair market value of the common stock at time of grant. For qualified employees, except under certain circumstances specified in the plan or unless otherwise specified at the discretion of the Board of Directors, no option may be exercised prior to one year after date of grant, with the balance becoming exercisable in cumulative installments over a three-year period during the term of the option, and terminating at a stipulated period of time after an employee's termination of employment. During Fiscal Year 2017, the Company granted options to acquire 400,000 shares to officers, at an exercise price of $0.91. During Fiscal Year 2016, the Company granted options to acquire 73,500 shares exercisable at prices from $1.07 to $1.17, to employees of the Company. A summary of the activity of both plans for the years ended February 28, 2017 and February 29, 2016 is as follows: Weighted Average Stock Options Exercise Price $ Fair Value Outstanding Exercisable Outstanding Exercisable Vested Balance - February 28, 2015 489,434 353,934 $ 0.97 $ 0.86 $ 0.32 Granted 73,500 1.16 Exercised (41,334 ) (0.61 ) Cancelled (57,500 ) (1.08 ) Balance - February 29, 2016 464,100 349,820 $ 0.91 $ 0.83 $ 0.39 Granted 400,000 $ 0.91 Exercised (10,000 ) (0.48 ) Cancelled (14,500 ) (1.21 ) Balance - February 28, 2017 839,600 395,405 $ 0.91 $ 0.89 $ 0.32 The intrinsic value of the Company’s options exercised during the years ended February 28, 2017 and February 29, 2016 was $1,632 and $12,479, respectively. Information, at date of issuance, regarding stock option grants for the years ended February 28, 2017: Year ended February 28, 2017: Shares Weighted Average Price Weighted Average Fair Exercise price exceeds market price — — — Exercise price equals market price 400,000 $ 0.91 $ .16 Exercise price is less than market price — — — The aggregate intrinsic value of the Company’s outstanding options at February 28, 2017 and February 29, 2016 was $226,601 and $176,348, respectively. The following table summarizes information about stock options outstanding and exercisable at February 28, 2017: Weighted Average Number Remaining Life Exercise Number Outstanding in Years Price Exercisable Range of exercise prices: $.42 to $.50 14,000 5.01 $ 0.47 14,000 $.51 to $1.00 571,500 8.14 $ 0.83 171,500 $1.01 to $1.30 254,100 7.35 $ 1.14 209,905 Total Options: 839,600 395,405

Earnings Per Share

Earnings Per Share	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Earnings Per Share	NOTE 14: EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: February 28, February 29, 2017 2016 Numerator for basic and diluted earnings per share $ 95,706 $ 547,729 Denominator for basic earnings per share - weighted average 14,961,076 14,943,018 Effects of dilutive securities: Stock options for employees, directors and outside consultants 57,206 86,583 Denominator for diluted earnings per share 15,018,282 15,029,601 Basic Earnings Per Share – Weighted Average $ 0.01 $ 0.04 Diluted Earnings Per Share – Weighted Average $ 0.01 $ 0.04

Other Comprehensive Income (Los

Other Comprehensive Income (Loss)	12 Months Ended
	Feb. 28, 2017
Equity [Abstract]
Other Comprehensive Income (Loss)	NOTE 15: OTHER COMPREHENSIVE INCOME (LOSS) As of February 28, 2017, certain of our marketable securities were in an unrealized gain position. Unrealized gains (losses) are principally due to changes in the fair value of our investments held as available-for-sale. Because we have the ability and intent to hold the securities until maturity, or for the foreseeable future as classified as available-for-sale, we do not deem the gain or decline to be other-than-temporary. For the year ended February 28, 2017, the unrealized gain on our available-for-sale marketable securities was $112,000 compared to a loss of $70,000 for the year ended February 29, 2016. As of February 28, 2017, the unrealized gain on our available-for-sale securities was $42,250. The following table sets forth the changes in Accumulated Other Comprehensive Gain (Loss) for the year ended February 28, 2017: Unrealized Gain Beginning Balance February 29, 2016 $ (70,140 ) Current Period Unrealized Gains 112,390 Ending Balance February 28, 2017 $ 42,250

Significant Customers and Forei

Significant Customers and Foreign Sales	12 Months Ended
	Feb. 28, 2017
Segment Reporting [Abstract]
Significant Customers and Foreign Sales	NOTE 16: SIGNIFICANT CUSTOMERS AND FOREIGN SALES Export sales to customers located outside the United States were approximately as follows: February 28, February 29, 2017 2016 Western Europe $ 1,695,000 $ 2,643,000 Far East 2,702,000 2,947,000 Middle East 232,000 247,000 South America 208,000 208,000 Mexico 275,000 421,000 Other 249,000 111,000 $ 5,361,000 $ 6,577,000 During Fiscal Years 2017 and 2016, sales to foreign customers accounted for approximately $5,361,000 and $6,577,000, respectively, of total revenues. For both fiscal years, sales to foreign customers accounted for approximately 56% of total revenues. One customer accounted for 7% of the Company’s sales for Fiscal Year ended February 28, 2017.

Subsequent Events

Subsequent Events	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Subsequent Events	NOTE 17: SUBSEQUENT EVENTS The Company has evaluated subsequent events for disclosure purposes.

Significant Accounting Polici24

Significant Accounting Policies (Policies)	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Advertising Expenses	Advertising Expenses -
Allowance for doubtful accounts	Allowance for doubtful accounts -
Available-For-Sale Investments	Available-For-Sale Investments –
Cash and Cash Equivalents	Cash and Cash Equivalents -
Concentration of Credit Risk	Concentration of Credit Risk - The Company had one customer, which accounted for 7% of sales during the year ended February 29, 2016. Four customers accounted for 40% of the outstanding accounts receivables at February 29, 2016.
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 February 28, 2017 and February 29, 2016, respectively: Quoted Prices in Active Markets (Level 1) February 28, February 29, 2017 2016 Marketable Securities $ 2,342,184 $ 1,695,689 Marketable Securities include mutual funds of $2,342,184 and $1,695,689, that are considered to be highly liquid and easily tradeable as of February 28, 2017 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 -
Inventories	Inventories -
Land and Buildings	Land and Buildings –
Long-Lived Assets	Long-Lived Assets -
Management Estimates	Management Estimates -
New Accounting Pronouncements	New Accounting Pronouncements-
Product Warranty	Product Warranty
Reclassifications	Reclassifications –
Recognition of Revenue	Recognition of Revenue
Research and Product Development Expenses	Research and Product Development Expenses -
Shipping and Handling Costs	Shipping and Handling Costs –

Significant Accounting Polici25

Significant Accounting Policies (Tables)	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Fair values of financial assets of the Company	Quoted Prices in Active Markets (Level 1) February 28, February 29, 2017 2016 Marketable Securities $ 2,342,184 $ 1,695,689

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Feb. 28, 2017
Segment Information Tables
Segment information	Fiscal Year Ended February 28, 2017 Fiscal Year Ended February 29, 2016 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental Eliminations Consolidated Net Sales $ 9,634,956 $ 285,895 $ 196,298 $ 9,724,553 $ 11,738,982 $ 291,046 $ 196,298 $ 11,833,730 Rental Expense $ 196,298 $ — $ (196,298 ) $ — $ 196,298 $ — $ (196,298 ) $ — Rental Operations Expense $ — $ 85,976 $ 85,976 $ 85,887 $ 85,887 Depreciation Expense $ 354,896 $ 74,464 $ 429,360 $ 392,803 $ 72,629 $ 465,432 Interest Expense $ — $ 52,294 $ 52,294 $ 83 $ 58,364 $ 58,447 Net Income (Loss) $ 218,843 $ (123,137 ) $ 95,706 $ 669,974 $ (122,245 ) $ 547,729 Assets $ 8,346,183 $ 2,389,753 $ 10,735,936 $ 8,214,873 $ 2,454,664 $ 10,669,537 Debt $ — $ 1,176,348 $ 1,176,348 $ — $ 1,319,737 $ 1,319,737

Stock Based Compensation (Table

Stock Based Compensation (Tables)	12 Months Ended
	Feb. 28, 2017
Notes to Financial Statements
Weighted-average Black-Scholes assumptions	Fiscal Year Ended February 28, February 29, Expected life 4 years 8 years Risk free interest rate 1.16% .91% -1.03% Expected volatility 28.02% 18.73% - 23.72% Expected dividend yield 0% 0%

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Feb. 28, 2017
Inventories Tables
Inventories	February 28, February 29, 2017 2016 Raw materials and subassemblies $ 1,197,506 $ 1,452,566 Finished goods 369,428 549,106 Work in process 28,460 118,415 Total 1,595,394 2,120,087 Less: Allowance (254,710 ) (174,704 ) Net inventories $ 1,340,684 $ 1,945,383

Buildings, Equipment, Furnish29

Buildings, Equipment, Furnishings and Leasehold Improvements (Tables)	12 Months Ended
	Feb. 28, 2017
Property, Plant and Equipment [Abstract]
Equipment, furnishings and leasehold improvements	February 28, February 29, 2017 2016 Buildings $ 2,250,000 $ 2,250,000 Laboratory equipment 1,012,824 872,836 Machinery and equipment 858,694 857,994 Leasehold improvements 369,433 368,572 Tradeshow and demonstration equipment 1,072,425 1,037,830 Furniture and fixtures 907,428 891,443 Totals 6,470,804 6,278,675 Less: Accumulated depreciation (3,971,533 ) (3,542,173 ) $ 2,499,271 $ 2,736,502

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Feb. 28, 2017
Payables and Accruals [Abstract]
Accrued expenses	February 28, February 29, 2017 2016 Accrued compensation $ 303,711 $ 305,189 Estimated warranty costs 32,700 38,250 Accrued commissions 255,604 172,461 Professional fees 63,462 51,492 Other accrued expenses 213,278 178,644 $ 868,755 $ 746,036

Long Term Debt (Tables)

Long Term Debt (Tables)	12 Months Ended
	Feb. 28, 2017
Long Term Debt Tables
Long-term debt	February 28, February 29, 2017 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. 1,176,348 1,319,737 Total long term debt 1,176,348 1,319,737 Due within one year 149,698 143,388 Due after one year $ 1,026,650 $ 1,176,349
Long-term debt payables	Fiscal Year ending February 28, 2018 149,698 2019 156,119 2020 162,816 2021 169,716 2022 177,081 Thereafter 360,918 $ 1,176,348

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Feb. 28, 2017
Income Tax Disclosure [Abstract]
Income tax reconciliation	February 28, February 29, Expected federal income tax $ 64,165 $ 252,321 State tax, net of federal 10,002 39,059 Research and development tax credits (70,827 ) (135,904 ) Overaccrual of prior year taxes (63,351 ) (67,579 ) Deferred tax expense (5,080 ) 106,826 Permanent timing difference 17,795 — Other adjustments 27,922 — Income tax (Benefit) Expense ($ 19,374 ) $ 194,723
Net deferred tax asset components	February 28, February 29, 2017 2016 Inventory $ 253,500 $ 87,000 Allowance for accounts receivable 18,100 18,000 Accrued expenses and other 43,500 50,000 Deferred tax asset - Current 315,100 155,000 Research tax credits 143,000 102,000 Accrued expenses 13,000 15,000 Intangible asset amortization (30,000 ) (39,000 ) Building and leasehold depreciation (464,000 ) (250,000 ) Deferred tax liability – Long Term ($ 338,000 ) ($ 172,000 )

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Feb. 28, 2017
Equity [Abstract]
Summary of stock options	Weighted Average Stock Options Exercise Price $ Fair Value Outstanding Exercisable Outstanding Exercisable Vested Balance - February 28, 2015 489,434 353,934 $ 0.97 $ 0.86 $ 0.32 Granted 73,500 1.16 Exercised (41,334 ) (0.61 ) Cancelled (57,500 ) (1.08 ) Balance - February 29, 2016 464,100 349,820 $ 0.91 $ 0.83 $ 0.39 Granted 400,000 $ 0.91 Exercised (10,000 ) (0.48 ) Cancelled (14,500 ) (1.21 ) Balance - February 28, 2017 839,600 395,405 $ 0.91 $ 0.89 $ 0.32
Stock option grants	Year ended February 28, 2017: Shares Weighted Average Price Weighted Average Fair Exercise price exceeds market price — — — Exercise price equals market price 400,000 $ 0.91 $ .16 Exercise price is less than market price — — —
Stock options outstanding and exercisable	Weighted Average Number Remaining Life Exercise Number Outstanding in Years Price Exercisable Range of exercise prices: $.42 to $.50 14,000 5.01 $ 0.47 14,000 $.51 to $1.00 571,500 8.14 $ 0.83 171,500 $1.01 to $1.30 254,100 7.35 $ 1.14 209,905 Total Options: 839,600 395,405

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Feb. 28, 2017
Earnings Per Share Tables
Computation of basic and diluted earnings per share	February 28, February 29, 2017 2016 Numerator for basic and diluted earnings per share $ 95,706 $ 547,729 Denominator for basic earnings per share - weighted average 14,961,076 14,943,018 Effects of dilutive securities: Stock options for employees, directors and outside consultants 57,206 86,583 Denominator for diluted earnings per share 15,018,282 15,029,601 Basic Earnings Per Share – Weighted Average $ 0.01 $ 0.04 Diluted Earnings Per Share – Weighted Average $ 0.01 $ 0.04

Other Comprehensive Income (L35

Other Comprehensive Income (Loss) (Tables)	12 Months Ended
	Feb. 28, 2017
Equity [Abstract]
Accumulated Other Comprehensive Gain (Loss)	Unrealized Gain Beginning Balance February 29, 2016 $ (70,140 ) Current Period Unrealized Gains 112,390 Ending Balance February 28, 2017 $ 42,250

Significant Customers and For36

Significant Customers and Foreign Sales (Tables)	12 Months Ended
	Feb. 28, 2017
Segment Reporting [Abstract]
Export sales to customers located outside the United States	February 28, February 29, 2017 2016 Western Europe $ 1,695,000 $ 2,643,000 Far East 2,702,000 2,947,000 Middle East 232,000 247,000 South America 208,000 208,000 Mexico 275,000 421,000 Other 249,000 111,000 $ 5,361,000 $ 6,577,000

Significant Accounting Polici37

Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Notes to Financial Statements
Advertising expense	$ 285,572	$ 227,825
Bad debt expense	$ 0	$ 3,000
Concentration of Credit Risk	The Company had one customer, which accounted for 7% of sales during the year ended February 28, 2017. Six customers accounted for 46% of the outstanding accounts receivables at February 28, 2017.	The Company had one customer, which accounted for 7% of sales during the year ended February 29, 2016. Four customers accounted for 40% of the outstanding accounts receivables at February 29, 2016.
Marketable securities including mutual funds	$ 2,342,184	$ 1,695,689
Accumulated amortization of intangible assets	138,777	$ 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

Segment information (Details)

Segment information (Details) - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Net Sales	$ 9,724,553	$ 11,833,730
Rental Expense	160,440	158,629
Depreciation Expense	429,360	465,432
Interest Expense	52,294	58,447
Net Income (Loss)	95,706	547,729
Assets	10,735,936	10,669,537
Debt	1,176,348	1,319,737
Ultrasonic Spraying
Net Sales	9,634,956	11,738,982
Rental Expense	196,298	196,298
Depreciation Expense	354,896	392,803
Interest Expense		83
Net Income (Loss)	218,843	669,974
Assets	8,346,183	8,214,873
Debt
Rental Real Estate Operations
Net Sales	285,895	291,046
Rental Expense
Rental Operations Expense	85,976	85,887
Depreciation Expense	74,464	72,629
Interest Expense	52,294	58,364
Net Income (Loss)	(123,137)	(122,245)
Assets	2,389,753	2,454,664
Debt	1,176,348	1,319,737
Eliminations
Net Sales	196,298	196,298
Rental Expense	(196,298)	(196,298)
Consolidated
Net Sales	9,724,553	11,833,730
Rental Expense
Rental Operations Expense	85,976	85,887
Depreciation Expense	429,360	465,432
Interest Expense	52,294	58,447
Net Income (Loss)	95,706	547,729
Assets	10,735,936	10,669,537
Debt	$ 1,176,348	$ 1,319,737

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted-average Black-Scholes assumptions (Details)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Expected life (in years)	4 years	8 years
Risk free interest rate	1.16%
Risk free interest rate, minimum		0.91%
Risk free interest rate, maximum		1.03%
Expected volatility	28.02%
Expected dividend yield	0.00%	0.00%
Minimum
Expected volatility		18.73%
Maximum
Expected volatility		23.72%

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Notes to Financial Statements
Additional stock-based compensation expense as a result of applying ASC 718	$ 47,319	$ 43,402

Inventories (Details)

Inventories (Details) - USD ($)	Feb. 28, 2017	Feb. 29, 2016
Inventories Tables
Raw materials	$ 1,197,506	$ 1,452,566
Finished goods	369,428	549,106
Work in process	28,460	118,415
Total	1,595,394	2,120,087
Less: Allowance	254,710	174,704
Net inventories	$ 1,340,684	$ 1,945,383

Buildings, Equipment, Furnish42

Buildings, Equipment, Furnishings and Leasehold Improvements - Equipment, furnishings and leasehold improvements (Details) - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Equipment, furnishings and leasehold improvements	$ 6,470,804	$ 6,278,675
Less: accumulated decpreciation	3,971,533	3,542,173
Equipment, furnishings and leasehold improvements, net	2,499,271	2,736,502
Depreciation Expense	429,360	465,432
Buildings
Equipment, furnishings and leasehold improvements	2,250,000	2,250,000
Laboratory Equipment
Equipment, furnishings and leasehold improvements	1,012,824	872,836
Machinery
Equipment, furnishings and leasehold improvements	858,694	857,994
Leasehold
Equipment, furnishings and leasehold improvements	369,433	368,572
Tradeshow and Demonstration Equipment
Equipment, furnishings and leasehold improvements	1,072,425	1,037,830
Furniture and Fixtures
Equipment, furnishings and leasehold improvements	$ 907,428	$ 891,443

Accrued expenses (Details)

Accrued expenses (Details) - USD ($)	Feb. 28, 2017	Feb. 29, 2016
Payables and Accruals [Abstract]
Accrued compensation	$ 303,711	$ 305,189
Estimated warranty costs	32,700	38,250
Accrued commissions	255,604	172,461
Professional fees	63,462	51,492
Other accrued expenses	213,278	178,644
Total accrued expenses	$ 868,755	$ 746,036

Revolving Line of Credit (Detai

Revolving Line of Credit (Details Narrative) - Revolving Line of Credit - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Line of credit description	The Company has a $750,000 revolving line of credit at prime which was 3.75% at February 28, 2017 and 3.50% at February 28, 2016. The line of credit is collateralized by all 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	$ 0
Unused credit line	$ 750,000	$ 750,000

Long-term debt (Details)

Long-term debt (Details) - USD ($)	Feb. 28, 2017	Feb. 29, 2016
Long-term debt	$ 1,176,348	$ 1,319,737
Due within one year	149,698	143,388
Due after one year	1,026,650	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	$ 1,176,348	$ 1,319,737

Long Term Debt - Long-term debt

Long Term Debt - Long-term debt payables (Details) - USD ($)	Feb. 28, 2017	Feb. 29, 2016
Fiscal Year ending February 28,
2,018	$ 149,698
2,019	156,119
2,020	162,816
2,021	169,716
2,022	177,081
Thereafter	360,918
Total	$ 1,176,348	$ 1,319,737

Bank Guarantees (Details Narrat

Bank Guarantees (Details Narrative) - Performance Guarantee	12 Months Ended
	Feb. 28, 2017USD ($)
Cash on deposit with a foreign bank utilized to collateralize guarantees issued by the bank	$ 77,543
Expiration of bank guarantees	The guarantees expire at various dates in 2017.

Income Taxes - Income tax recon

Income Taxes - Income tax reconciliation (Details) - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Income tax (benefit) reconciliation:
Expected federal income tax	$ 64,165	$ 252,321
State tax, net of federal	10,002	39,059
Research and development tax credits	(70,827)	(135,904)
Overaccrual of prior year taxes	(63,351)	(67,579)
Deferred tax expense	(5,080)	106,826
Permanent timing difference	17,795
Other adjustments	27,922
Income tax	$ (19,374)	$ 194,723

Income Taxes - Net deferred tax

Income Taxes - Net deferred tax asset components (Details) - USD ($)	Feb. 28, 2017	Feb. 29, 2016
Income Tax Disclosure [Abstract]
Inventory	$ 253,500	$ 87,000
Allowance for accounts receivable	18,100	18,000
Accrued expenses and other	43,500	50,000
Deferred tax asset - Current	315,100	155,000
Research tax credits	143,000	102,000
Accrued expenses	13,000	15,000
Intangible asset amortization	(30,000)	(39,000)
Building and leasehold depreciation	(464,000)	(250,000)
Deferred tax liability - Long Term	$ (338,000)	$ (172,000)

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Income Tax Disclosure [Abstract]
Federal income tax rate	34.00%
Research and development tax credits	$ 143,000	$ 102,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of stock options (Details) - $ / shares	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Shares
Outstanding at beginning of period (in shares)	464,100	489,434
Granted (in shares)	400,000	73,500
Exercised (in shares)	(10,000)	(41,334)
Cancelled (in shares)	(14,500)	(57,500)
Outstanding at end of period (in shares)	839,600	464,100
Exercisable at end of period (in shares)	395,405	349,820
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 0.91	$ 0.97
Granted (in dollars per share)	.91	1.16
Exercised (in dollars per share)	(0.48)	(0.61)
Cancelled (in dollars per share)	(1.21)	(1.08)
Outstanding at end of period (in dollars per share)	0.91	0.91
Exercisable at beginning of period (in dollars per share)	0.83	0.86
Exercisable at end of period (in dollars per share)	0.89	0.83
Fair value vested at end of period (in dollars per share)	$ 0.32	$ 0.39

Stockholders' Equity - Stock op

Stockholders' Equity - Stock option grants (Details) - $ / shares	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Information, at date of issuance, regarding stock option grants
Weighted Average Exercise Price	$ .91	$ 1.16
Exercise Price Exceeds Market Price
Information, at date of issuance, regarding stock option grants
Shares
Weighted Average Exercise Price
Weighted Average Fair Value
Exercise Price Equals Market Price
Information, at date of issuance, regarding stock option grants
Shares	400,000
Weighted Average Exercise Price	$ 0.91
Weighted Average Fair Value	$ 0.16
Exercise Price is Less than Market Price
Information, at date of issuance, regarding stock option grants
Shares
Weighted Average Exercise Price
Weighted Average Fair Value

Stockholders' Equity - Stock 53

Stockholders' Equity - Stock options outstanding and exercisable (Details) - $ / shares	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2015
Number Outstanding	839,600	464,100	489,434
Weighted Average Exercise Price	$ 0.89	$ 0.83	$ 0.86
Number Exercisable	395,405	349,820
Stock Options
Number Outstanding	839,600
Number Exercisable	395,405
Stock Options | Exercise Price Range $.42 to $.50
Range of exercise prices, low end (in dollars per share)	$ .42
Range of exercise prices, high end (in dollars per share)	$ .50
Number Outstanding	14,000
Weighted-Average Remaining Life in Years	5 years 4 days
Weighted Average Exercise Price	$ 0.47
Number Exercisable	14,000
Stock Options | Exercise Price Range $.51 to $1.00
Range of exercise prices, low end (in dollars per share)	$ .51
Range of exercise prices, high end (in dollars per share)	$ 1
Number Outstanding	571,500
Weighted-Average Remaining Life in Years	8 years 1 month 20 days
Weighted Average Exercise Price	$ 0.83
Number Exercisable	171,500
Stock Options | Exercise Price Range $1.01 to $1.30
Range of exercise prices, low end (in dollars per share)	$ 1.01
Range of exercise prices, high end (in dollars per share)	$ 1.30
Number Outstanding	254,100
Weighted-Average Remaining Life in Years	7 years 4 months 6 days
Weighted Average Exercise Price	$ 1.14
Number Exercisable	209,905

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Stock option exercise price	$ .91	$ 1.16
Iintrinsic value of the Company's options exercised	$ 1,632	$ 12,479
Aggregate intrinsic value of the Company's outstanding options	$ 226,601	$ 176,348
Fiscal Year 2017 Grant to Officers
Stock option shares granted	400,000
Fiscal Year 2017 Grant to Officers | Maximum
Stock option exercise price	$ 0.91
Fiscal Year 2016 Grant to Employees
Stock option shares granted		73,500
Fiscal Year 2016 Grant to Employees | Minimum
Stock option exercise price		$ 1.07
Fiscal Year 2016 Grant to Employees | Maximum
Stock option exercise price		$ 1.17
2013 Stock Incentive Plan
Stock options shares available for purchase	2,500,000
Stock options outstanding	634,100
Description of option prices	Under the 2013 Stock Incentive Plan, option prices must be at least 100% of the fair market value of the common stock at time of grant. For qualified employees, except under certain circumstances specified in the plan or unless otherwise specified at the discretion of the Board of Directors, no option may be exercised prior to one year after date of grant, with the balance becoming exercisable in cumulative installments over a three year period during the term of the option, and terminating at a stipulated period of time after an employee's termination of employment.
2003 Stock Incentive Plan
Stock options shares available for purchase	1,500,000
Stock options outstanding	205,500

Earnings Per Share - The denomi

Earnings Per Share - The denominator for the calculation of diluted earnings per share (Details) - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Earnings Per Share Tables
Numerator for basic and diluted earnings per share	$ 95,706	$ 547,729
Denominator for basic earnings per share - weighted average	14,961,076	14,943,018
Effects of dilutive securities:
Stock options for employees, directors and outside consultants	57,206	86,583
Denominator for diluted earnings per share	15,018,282	15,029,601
Basic Earnings Per Share - Weighted Average	$ 0.01	$ 0.04
Diluted Earnings Per Share - Weighted Average	$ 0.01	$ 0.04

Other Comprehensive Income (L56

Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Gain (Loss) (Details)	12 Months Ended
	Feb. 28, 2017USD ($)
Equity [Abstract]
Beginning Balance February 29, 2016	$ (70,140)
Current Period Unrealized Gains	112,390
Ending Balance February 28, 2017	$ 42,250

Other Comprehensive Income (L57

Other Comprehensive Income (Loss) (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Equity [Abstract]
Unrealized gain on available-for-sale marketable securities, balance	$ 42,250	$ (70,140)
Unrealized gain on available-for-sale securities, during period	$ 112,390

Significant Customers and For58

Significant Customers and Foreign Sales - Export sales to customers located outside the United States (Details) - USD ($)	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Export sales to customers located outside the United States
Total sales	$ 5,361,000	$ 6,577,000
Significant customers and foreign sales
Percent of total sales	56.00%	56.00%
One Customer
Significant customers and foreign sales
Percent of total sales	7.00%
Western Europe
Export sales to customers located outside the United States
Total sales		$ 2,643,000
Far East
Export sales to customers located outside the United States
Total sales		2,947,000
Middle East
Export sales to customers located outside the United States
Total sales		247,000
Other
Export sales to customers located outside the United States
Total sales		111,000
Western Europe
Export sales to customers located outside the United States
Total sales	$ 1,695,000
Far East
Export sales to customers located outside the United States
Total sales	2,702,000
Middle East
Export sales to customers located outside the United States
Total sales	232,000
South America
Export sales to customers located outside the United States
Total sales	208,000	208,000
Mexico
Export sales to customers located outside the United States
Total sales	275,000	$ 421,000
Other
Export sales to customers located outside the United States
Total sales	$ 249,000