Sono-Tek (SOTK) 10-Q 17 Jul 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 31, 2017	Jul. 14, 2017
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, 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 Common Stock, Shares Outstanding		14,961,212
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	May 31, 2017	Feb. 28, 2017
Current Assets:
Cash and cash equivalents	$ 2,301,203	$ 2,557,223
Marketable Securities	2,906,484	2,342,184
Accounts receivable	1,286,871	1,150,801
Inventories, net	1,313,621	1,340,684
Prepaid expenses and other current assets	90,556	127,276
Total current assets	7,898,735	7,518,168
Land	250,000	250,000
Buildings, net	1,858,914	1,875,074
Equipment, furnishings and building improvements, net	582,438	624,197
Intangible assets, net	149,141	153,326
Deferred tax asset	315,171	315,171
TOTAL ASSETS	11,054,399	10,735,936
Current Liabilities:
Accounts payable	613,138	336,561
Accrued expenses	613,664	868,755
Customer deposits	347,078	78,902
Current maturities of long term debt	137,642	149,698
Income taxes payable	27,182	14,619
Total current liabilities	1,738,704	1,448,535
Deferred tax liability	337,726	337,726
Long term debt, less current maturities	1,001,571	1,026,650
Total liabilities	3,078,001	2,812,911
Stockholders' Equity
Common stock	149,611	149,611
Additional paid-in capital	8,869,955	8,859,486
Accumulated deficit	(1,112,453)	(1,128,322)
Accumulated other comprehensive income	69,285	42,250
Total stockholders' equity	7,976,398	7,923,025
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 11,054,399	$ 10,735,936

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	May 31, 2017	Feb. 28, 2017
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	14,961,076
Common stock, outstanding shares	14,961,076	14,961,076

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	May 31, 2017	May 31, 2016
Income Statement [Abstract]
Net Sales	$ 2,512,134	$ 2,240,211
Cost of Goods Sold	1,309,652	1,216,809
Gross Profit	1,202,482	1,023,402
Operating Expenses
Research and product development costs	302,551	303,794
Marketing and selling expenses	582,902	546,983
General and administrative costs	258,782	269,189
Rental operations expense	39,098	43,117
Total Operating Expenses	1,183,333	1,163,083
Operating Income (Loss)	19,149	(139,681)
Interest Expense	(12,213)	(13,745)
Interest and Dividend Income	17,143	17,583
Other income	272	201,259
Income Before Income Taxes	24,351	65,416
Income Tax Expense	8,482	9,625
Net Income	15,869	55,791
Other Comprehensive Income
Net unrealized gain (loss) on marketable securities	27,035	55,941
Comprehensive Income	$ 42,904	$ 111,732
Basic Earnings (Loss) Per Share	$ 0	$ 0
Diluted Earnings Per (Loss) Share	$ 0	$ 0
Weighted Average Shares - Basic	14,961,076	14,961,076
Weighted Average Shares - Diluted	15,057,495	15,005,107

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	May 31, 2017	May 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 15,869	$ 55,791
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	101,808	114,813
Stock based compensation expense	10,469	7,552
Inventory reserve	27,000	28,000
Decrease (Increase) in:
Accounts receivable	(136,070)	396,294
Inventories	63	(134)
Prepaid expenses and other current assets	36,720	32,012
(Decrease) Increase in:
Accounts payable and accrued expenses	21,486	(164,774)
Customer deposits	268,176	(23,979)
Income taxes payable	12,563	(6,507)
Net Cash Provided by Operating Activities	358,084	439,068
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment and furnishings	(39,704)	(93,772)
(Purchase) of marketable securities	(537,265)	(62,343)
Net Cash (Used in) Investing Activities	(576,969)	(156,115)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of notes payable and loans	(37,135)	(35,507)
Net Cash (Used In) Financing Activities	(37,135)	(35,507)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(256,020)	247,446
CASH AND CASH EQUIVALENTS
Beginning of period	2,557,223	2,388,355
End of period	2,301,203	2,635,801
SUPPLEMENTAL DISCLOSURE:
Interest paid	$ 12,213	13,745
Taxes Paid		$ 16,082

Business Description

Business Description	3 Months Ended
	May 31, 2017
Accounting Policies [Abstract]
Business Description	NOTE 1: BUSINESS DESCRIPTION Sono-Tek Corporation (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, 2017
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 May 31, 2017 and February 28, 2017, respectively: Quoted Prices in Active Markets (Level 1) May 31, February 28, Marketable Securities $ 2,906,484 $ 2,342,184 Marketable Securities include mutual funds of $2,906,484 and $2,342,184 that are considered to be highly liquid and easily tradeable as of May 31, 2017, and February 28, 2017, 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- Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes Other than, Accounting Standards Update (“ASU”) No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes Reclassifications –

Inventories

Inventories	3 Months Ended
	May 31, 2017
Notes to Financial Statements
Inventories	NOTE 3: INVENTORIES Inventories consist of the following: May 31, February 28, 2017 2017 Raw materials and subassemblies $ 1,130,293 $ 1,197,506 Finished goods 365,098 369,428 Work in process 99,940 28,460 Total 1,595,331 1,595,394 Less: Allowance (281,710 ) (254,710 ) Net inventories $ 1,313,621 $ 1,340,684

Stock Options and Warrants

Stock Options and Warrants	3 Months Ended
	May 31, 2017
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, 2017, there were 204,500 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, 2017
Notes to Financial Statements
Stock Based Compensation	NOTE 5: 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: Three Months Ended May 31, 2017 Expected life 2 - 4 years Risk free interest rate 1.79% Expected volatility 18.06% Expected dividend yield 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 three months ended May 31, 2017 and 2016, net income and earnings per share reflect the actual deduction for stock-based compensation expense. The impact of applying ASC 718 approximated $10,000 and $8,000 in additional compensation expense during the three months ended May 31, 2017 and 2016, 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, 2017
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, 2017 2016 Numerator for basic and diluted earnings per share $ 15,869 $ 55,791 Denominator for basic earnings per share - weighted average 14,961,076 14,961,076 Effects of dilutive securities: Stock options for employees, directors and outside consultants 96,419 44,031 Denominator for diluted earnings per share 15,057,495 15,005,107 Basic Earnings Per Share $ 0.00 $ 0.00 Diluted Earnings Per Share $ 0.00 $ 0.00

Other Comprehensive Income (Los

Other Comprehensive Income (Loss)	3 Months Ended
	May 31, 2017
Equity [Abstract]
Other Comprehensive Income (Loss)	NOTE 7: OTHER COMPREHENSIVE INCOME (LOSS) As of May 31, 2017, certain of the Company’s marketable securities were in an unrealized gain position. Unrealized gains (losses) are principally due to changes in the fair value of the Company’s investments held as available-for-sale. Because the Company has the ability and intent to hold the securities for the foreseeable future as classified as available-for-sale, the Company does not deem the gain or decline to be other-than-temporary. For the three months ended May 31, 2017, the unrealized gain on the Company’s available-for-sale marketable securities was $27,035 compared to $55,941 for the three months ended May 31, 2016. As of May 31, 2017, the unrealized gain on the Company’s available-for-sale marketable securities was $69,285. The following table sets forth the changes in Accumulated Other Comprehensive Gain (Loss) for the three months ended May 31, 2017: Unrealized Beginning Balance February 28, 2017 $ 42,250 Current Period Unrealized Gains 27,035 Ending Balance May 31, 2017 $ 69,285

Long Term Debt

Long Term Debt	3 Months Ended
	May 31, 2017
Notes to Financial Statements
Long Term Debt	NOTE 8: LONG TERM DEBT Long-term debt consists of the following: May 31, February 28, 2017 2017 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. 1,139,213 1,176,348 Total long term debt 1,139,213 1,176,348 Due within one year 137,642 149,698 Due after one year $ 1,001,571 $ 1,026,650

Revolving Line of Credit

Revolving Line of Credit	3 Months Ended
	May 31, 2017
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 4.00% at May 31, 2017. 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, 2017, and February 28, 2017, the Company’s outstanding balance was $0, and the unused credit line was $750,000.

Segment Information

Segment Information	3 Months Ended
	May 31, 2017
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, 2017 and 2016, segment information is as follows: Three Months Ended May 31, 2017 Three Months Ended May 31, 2016 Ultrasonic Rental Real Eliminations Consolidated Ultrasonic Rental Real Eliminations Consolidated Net Sales $ 2,500,734 $ 60,474 $ 49,074 $ 2,512,134 $ 2,216,211 $ 73,074 $ 49,074 $ 2,240,211 Rental Expense $ 49,074 $ — $ (49,074 ) $ — $ 49,074 $ — $ (49,074 ) $ — Rental Operations Expense $ — $ 21,396 $ 21,396 $ 24,923 $ 24,923 Depreciation Expense $ 84,106 $ 17,702 $ 101,808 $ 96,619 $ 18,194 $ 114,813 Interest Expense $ — $ 12,213 $ 12,213 $ — $ 13,745 $ 13,745 Net Income (Loss) $ 55,779 $ (39,910 ) $ 15,869 $ 88,653 $ (32,862 ) $ 55,791 Assets $ 8,692,745 $ 2,361,654 $ 11,054,399 $ 8,120,830 $ 2,437,225 $ 10,558,055 Debt $ — $ 1,139,213 $ 1,139,213 $ — $ 1,284,230 $ 1,284,230

Subsequent Events

Subsequent Events	3 Months Ended
	May 31, 2017
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, 2017
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 May 31, 2017 and February 28, 2017, respectively: Quoted Prices in Active Markets (Level 1) May 31, February 28, Marketable Securities $ 2,906,484 $ 2,342,184 Marketable Securities include mutual funds of $2,906,484 and $2,342,184 that are considered to be highly liquid and easily tradeable as of May 31, 2017, and February 28, 2017, 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- Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes Other than, Accounting Standards Update (“ASU”) No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes
Reclassifications	Reclassifications –

Significant Accounting Polici18

Significant Accounting Policies (Tables)	3 Months Ended
	May 31, 2017
Notes to Financial Statements
Fair values of financial assets of the Company	Quoted Prices in Active Markets (Level 1) May 31, February 28, Marketable Securities $ 2,906,484 $ 2,342,184

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	May 31, 2017
Inventories Tables
Inventories	May 31, February 28, 2017 2017 Raw materials and subassemblies $ 1,130,293 $ 1,197,506 Finished goods 365,098 369,428 Work in process 99,940 28,460 Total 1,595,331 1,595,394 Less: Allowance (281,710 ) (254,710 ) Net inventories $ 1,313,621 $ 1,340,684

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	May 31, 2017
Stock Based Compensation Tables
Weighted average Black-Scholes assumptions	Three Months Ended May 31, 2017 Expected life 2 - 4 years Risk free interest rate 1.79% Expected volatility 18.06% Expected dividend yield 0%

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	May 31, 2017
Earnings Per Share Tables
Computation of basic and diluted earnings per share	Three Months Ended May 31, 2017 2016 Numerator for basic and diluted earnings per share $ 15,869 $ 55,791 Denominator for basic earnings per share - weighted average 14,961,076 14,961,076 Effects of dilutive securities: Stock options for employees, directors and outside consultants 96,419 44,031 Denominator for diluted earnings per share 15,057,495 15,005,107 Basic Earnings Per Share $ 0.00 $ 0.00 Diluted Earnings Per Share $ 0.00 $ 0.00

Other Comprehensive Income (L22

Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	May 31, 2017
Equity [Abstract]
Changes in Accumulated Other Comprehensive Loss	Unrealized Beginning Balance February 28, 2017 $ 42,250 Current Period Unrealized Gains 27,035 Ending Balance May 31, 2017 $ 69,285

Long Term Debt (Tables)

Long Term Debt (Tables)	3 Months Ended
	May 31, 2017
Long Term Debt Tables
Long-term debt	May 31, February 28, 2017 2017 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. 1,139,213 1,176,348 Total long term debt 1,139,213 1,176,348 Due within one year 137,642 149,698 Due after one year $ 1,001,571 $ 1,026,650

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	May 31, 2017
Segment Information Tables
Segment information	Three Months Ended May 31, 2017 Three Months Ended May 31, 2016 Ultrasonic Rental Eliminations Consolidated Ultrasonic Rental Eliminations Consolidated Net Sales $ 2,500,734 $ 60,474 $ 49,074 $ 2,512,134 $ 2,216,211 $ 73,074 $ 49,074 $ 2,240,211 Rental Expense $ 49,074 $ — $ (49,074 ) $ — $ 49,074 $ — $ (49,074 ) $ — Rental Operations Expense $ — $ 21,396 $ 21,396 $ 24,923 $ 24,923 Depreciation Expense $ 84,106 $ 17,702 $ 101,808 $ 96,619 $ 18,194 $ 114,813 Interest Expense $ — $ 12,213 $ 12,213 $ — $ 13,745 $ 13,745 Net Income (Loss) $ 55,779 $ (39,910 ) $ 15,869 $ 88,653 $ (32,862 ) $ 55,791 Assets $ 8,692,745 $ 2,361,654 $ 11,054,399 $ 8,120,830 $ 2,437,225 $ 10,558,055 Debt $ — $ 1,139,213 $ 1,139,213 $ — $ 1,284,230 $ 1,284,230

Significant Accounting Polici25

Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($)	May 31, 2017	Feb. 28, 2017
Marketable Securities	$ 2,906,484	$ 2,342,184
Quoted Prices in Active Markets (Level 1)
Marketable Securities	$ 2,906,484	$ 2,342,184

Significant Accounting Polici26

Significant Accounting Policies - Fair values of financial assets of the Company (Details Narrative) - USD ($)	May 31, 2017	Feb. 28, 2017
Notes to Financial Statements
Mutual funds	$ 2,906,484	$ 2,342,184

Significant Accounting Polici27

Significant Accounting Policies - Intangible Assets (Details Narrative) - USD ($)	3 Months Ended
	May 31, 2017	Feb. 28, 2017
Accumulated amortization of intangible assets	$ 141,000	$ 139,000
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

Significant Accounting Polici28

Significant Accounting Policies - New Accounting Pronouncements (Details Narrative)	May 31, 2017USD ($)
Accounting Standards Update 2015-17 [Member]
Noncurrent deferred tax assets	$ 315,171

Inventories (Details)

Inventories (Details) - USD ($)	May 31, 2017	Feb. 28, 2017
Inventories Tables
Raw materials and subassemblies	$ 1,130,293	$ 1,197,506
Finished goods	365,098	369,428
Work in process	99,940	28,460
Total	1,595,331	1,595,394
Less: Allowance	281,710	254,710
Net inventories	$ 1,313,621	$ 1,340,684

Stock Options and Warrants (Det

Stock Options and Warrants (Details Narrative) - shares	3 Months Ended
	May 31, 2017	May 31, 2016
Additional stock options to be granted	96,419	44,031
2013 Stock Incentive Plan
Stock options shares available for purchase	2,500,000
Stock options outstanding	744,100
Years until options expire	10 years
2003 Stock Incentive Plan
Stock options shares available for purchase	1,500,000
Stock options outstanding	204,500
Additional stock options to be granted	0

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted-average Black-Scholes assumptions (Details)	3 Months Ended
	May 31, 2017	May 30, 2017
Expected volatility	18.06%
Expected dividend yield	0.00%
Minimum
Expected life (in years)	2 years
Maximum
Expected life (in years)		4 years

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($)	3 Months Ended
	May 31, 2017	May 31, 2016
Notes to Financial Statements
Additional stock-based compensation expense as a result of applying ASC 718	$ 10,469	$ 7,552

Earnings Per Share - The denomi

Earnings Per Share - The denominator for the calculation of diluted earnings per share (Details) - USD ($)	3 Months Ended
	May 31, 2017	May 31, 2016
Earnings Per Share Tables
Numerator for basic and diluted earnings per share	$ 15,869	$ 55,791
Denominator for basic earnings per share - weighted average	14,961,076	14,961,076
Effects of dilutive securities:
Stock options for employees, directors and outside consultants	96,419	44,031
Denominator for diluted earnings per share	15,057,495	15,005,107
Basic Earnings Per Share - Weighted Average	$ 0	$ 0
Diluted Earnings Per Share - Weighted Average	$ 0	$ 0

Other Comprehensive Income (L34

Other Comprehensive Income (Loss) (Details) - Accumulated Other Comprehensive Gain (Loss)	3 Months Ended
	May 31, 2017USD ($)
Unrealized Gain (Loss) on Available for Sale Securities
Beginning Balance February 28, 2017	$ 42,250
Current Period Unrealized Gains	27,035
Ending Balance May 31, 2017	$ 69,285

Other Comprehensive Income (L35

Other Comprehensive Income (Loss) (Details Narrative) - USD ($)	3 Months Ended
	May 31, 2017	May 31, 2016	Feb. 28, 2017
Equity [Abstract]
Unrealized gain on available-for-sale marketable securities, balance	$ 69,285		$ 42,250
Unrealized gain on available-for-sale securities	$ 27,035	$ 55,941

Long Term Debt (Details)

Long Term Debt (Details) - USD ($)	May 31, 2017	Feb. 28, 2017
Long-term debt	$ 1,139,213	$ 1,176,348
Due within one year	137,642	149,698
Due after one year	1,001,571	1,026,650
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	$ 1,139,213	$ 1,176,348

Revolving Line of Credit (Detai

Revolving Line of Credit (Details Narrative) - Revolving Line of Credit	3 Months Ended
	May 31, 2017USD ($)
Line of credit description	The Company has a $750,000 revolving line of credit at prime which was 4.00% at May 31, 2017. 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.
Outstanding balance	$ 0
Unused credit line	$ 750,000

Segment Information (Details)

Segment Information (Details) - USD ($)	3 Months Ended
	May 31, 2017	May 31, 2016	Feb. 28, 2017
Net Sales	$ 2,512,134	$ 2,240,211
Rental Expense	39,098	43,117
Interest Expense	12,213	13,745
Net Income	15,869	55,791
Assets	11,054,399		$ 10,735,936
Debt	1,139,213		$ 1,176,348
Ultrasonic Spraying
Net Sales	2,500,734	2,216,211
Rental Expense	49,074	49,074
Depreciation Expense	84,106	96,619
Net Income	55,779	88,653
Assets	8,692,745	8,120,830
Rental Real Estate Operations
Net Sales	60,474	73,074
Rental Operations Expense	21,396	24,923
Depreciation Expense	17,702	18,194
Interest Expense	12,213	13,745
Net Income	(39,910)	(32,862)
Assets	2,361,654	2,437,225
Debt	1,139,213	1,284,230
Eliminations
Net Sales	49,074	49,074
Rental Expense	(49,074)	(49,074)
Consolidated
Net Sales	2,512,134	2,240,211
Rental Operations Expense	21,396	24,923
Depreciation Expense	101,808	114,813
Interest Expense	12,213	13,745
Net Income	15,869	55,791
Assets	11,054,399	10,558,055
Debt	$ 1,139,213	$ 1,284,230