Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 31, 2017 | Oct. 12, 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 | Aug. 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 | 14,973,283 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Aug. 31, 2017 | Feb. 28, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 2,360,289 | $ 2,557,223 |
Marketable Securities | 3,546,725 | 2,342,184 |
Accounts receivable | 936,933 | 1,150,801 |
Inventories, net | 1,565,726 | 1,340,684 |
Prepaid expenses and other current assets | 98,419 | 127,276 |
Total current assets | 8,508,092 | 7,518,168 |
Land | 250,000 | 250,000 |
Buildings, net | 1,842,697 | 1,875,074 |
Equipment, furnishings and building improvements, net | 503,788 | 624,197 |
Intangible assets, net | 145,104 | 153,326 |
Deferred tax asset | 315,171 | 315,171 |
TOTAL ASSETS | 11,564,852 | 10,735,936 |
Current Liabilities: | ||
Accounts payable | 601,588 | 336,561 |
Accrued expenses | 824,591 | 868,755 |
Customer deposits | 612,387 | 78,902 |
Current maturities of long term debt | 152,848 | 149,698 |
Income taxes payable | 11,806 | 14,619 |
Total current liabilities | 2,203,220 | 1,448,535 |
Deferred tax liability | 337,726 | 337,726 |
Long term debt, less current maturities | 949,241 | 1,026,650 |
Total liabilities | 3,490,187 | 2,812,911 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock | 149,615 | 149,611 |
Additional paid-in capital | 8,880,970 | 8,859,486 |
Accumulated deficit | (1,057,808) | (1,128,322) |
Accumulated other comprehensive income | 101,888 | 42,250 |
Total stockholders' equity | 8,074,665 | 7,923,025 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 11,564,852 | $ 10,735,936 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Aug. 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 | 14,961,475 | 14,961,076 |
Common stock, outstanding shares | 14,961,475 | 14,961,076 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2017 | Aug. 31, 2016 | |
Income Statement [Abstract] | ||||
Net Sales | $ 2,674,496 | $ 2,310,451 | $ 5,186,630 | $ 4,550,663 |
Cost of Goods Sold | 1,315,647 | 1,285,138 | 2,625,299 | 2,501,947 |
Gross Profit | 1,358,849 | 1,025,313 | 2,561,331 | 2,048,716 |
Operating Expenses | ||||
Research and product development costs | 301,872 | 312,617 | 604,423 | 616,411 |
Marketing and selling expenses | 623,252 | 532,087 | 1,206,154 | 1,079,069 |
General and administrative costs | 299,332 | 232,418 | 558,114 | 501,607 |
Rental operations expense | 35,271 | 38,454 | 74,369 | 81,571 |
Total Operating Expenses | 1,259,727 | 1,115,576 | 2,443,060 | 2,278,658 |
Operating Income (Loss) | 99,122 | (90,263) | 118,271 | (229,942) |
Interest Expense | (11,818) | (13,367) | (24,031) | (27,113) |
Interest and Dividend Income | 19,068 | 15,521 | 36,211 | 33,104 |
Other (expense) income | (8,134) | 811 | (7,862) | 202,069 |
Income (Loss) from Operations Before Income Taxes | 98,238 | (87,298) | 122,589 | (21,882) |
Income Tax Expense | 43,593 | 2,375 | 52,075 | 12,000 |
Net Income | 54,645 | (89,673) | 70,514 | (33,882) |
Other Comprehensive Income | ||||
Net unrealized gain (loss) on marketable securities | 32,603 | 36,431 | 59,638 | 92,372 |
Comprehensive Income | $ 87,248 | $ (53,242) | $ 130,152 | $ 58,490 |
Basic Earnings (Loss) Per Share | $ 0 | $ (0.01) | $ 0 | $ 0 |
Diluted Earnings (Loss) Per Share | $ 0 | $ (0.01) | $ 0 | $ 0 |
Weighted Average Shares - Basic | 14,961,197 | 14,961,076 | 14,961,137 | 14,961,076 |
Weighted Average Shares - Diluted | 15,064,631 | 14,961,076 | 15,060,026 | 14,961,076 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 70,514 | $ (33,882) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 200,776 | 239,503 |
Stock based compensation expense | 21,488 | 18,784 |
Inventory reserve | 50,601 | 35,006 |
(Increase) Decrease in: | ||
Accounts receivable | 213,868 | 313,747 |
Inventories | (275,643) | 61,190 |
Prepaid expenses and other current assets | 28,857 | 49,597 |
Increase (Decrease) in: | ||
Accounts payable and accrued expenses | 220,863 | (111,445) |
Customer deposits | 533,485 | 25,187 |
Income taxes payable | (2,813) | (8,202) |
Net Cash Provided by Operating Activities | 1,061,996 | 589,485 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of equipment and furnishings | (42,917) | (159,680) |
Purchase of marketable securities | (1,141,754) | (70,892) |
Net Cash (Used in) Investing Activities | (1,184,671) | (230,572) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of notes payable and loans | (74,259) | (71,087) |
Net Cash (Used In) Financing Activities | (74,259) | (71,087) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (196,934) | 287,826 |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 2,557,223 | 2,388,355 |
End of period | 2,360,289 | 2,676,181 |
SUPPLEMENTAL DISCLOSURE: | ||
Interest paid | 24,031 | 27,113 |
Taxes Paid | $ 58,969 | $ 8,202 |
Business Description
Business Description | 6 Months Ended |
Aug. 31, 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 | 6 Months Ended |
Aug. 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 - Additionally, the guidance requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: 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, 2017 and February 28, 2017, respectively: Quoted Prices in Active Markets (Level 1) August 31, February 28, Marketable Securities $ 3,546,725 $ 2,342,184 Marketable Securities include mutual funds of $3,546,725 and $2,342,184 that are considered to be highly liquid and easily tradeable as of August 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 | 6 Months Ended |
Aug. 31, 2017 | |
Notes to Financial Statements | |
Inventories | NOTE 3: INVENTORIES Inventories consist of the following: August 31, February 28, 2017 2017 Raw materials and subassemblies $ 1,169,913 $ 1,197,506 Finished goods 507,157 369,428 Work in process 193,967 28,460 Total 1,871,037 1,595,394 Less: Allowance (305,311 ) (254,710 ) Net inventories $ 1,565,726 $ 1,340,684 |
Stock Options and Warrants
Stock Options and Warrants | 6 Months Ended |
Aug. 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 August 31, 2017, there were 202,000 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, 2017 | |
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, 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 $21,000 and $19,000 in additional compensation expense during the six months ended August 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 (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Aug. 31, 2017 | |
Notes to Financial Statements | |
Earnings (Loss) Per Share | NOTE 6: EARNINGS (LOSS) PER SHARE The denominators for the calculation of diluted earnings per share at August 31, 2017 and 2016 are calculated as follows: Six Months Ended Three Months Ended 2017 2016 2017 2016 Denominator for basic earnings (loss) per share 14,961,137 14,961,076 14,961,197 14,961,076 Dilutive effect of stock options 98,889 — 103,434 — Denominator for diluted earnings (loss) per share 15,060,026 14,961,076 15,064,631 14,961,076 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, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | NOTE 7: OTHER COMPREHENSIVE INCOME (LOSS) As of August 31, 2017, 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. 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 these unrealized gains or losses to be other than temporary. As of August 31, 2017, the unrealized gain on available-for-sale securities was $101,888. The following table sets forth the changes in Accumulated Other Comprehensive Gain (Loss) for the six months ended August 31, 2017: Unrealized Beginning Balance February 28, 2017 $ 42,250 Current Period Unrealized Gains 59,638 Ending Balance August 31, 2017 $ 101,888 |
Long Term Debt
Long Term Debt | 6 Months Ended |
Aug. 31, 2017 | |
Notes to Financial Statements | |
Long Term Debt | NOTE 8: LONG TERM DEBT Long-term debt consists of the following: August 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. 1,102,089 1,176,348 Total long-term debt 1,102,089 1,176,348 Due within one year 152,848 149,698 Due after one year $ 949,241 $ 1,026,650 |
Revolving Line of Credit
Revolving Line of Credit | 6 Months Ended |
Aug. 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 4.25% at August 31, 2017. The loan 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 August 31, 2017, the Company’s outstanding balance was $0, and the unused credit line was $750,000. |
Segment Information
Segment Information | 6 Months Ended |
Aug. 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 six and three months ended August 31, 2017 and 2016, segment information is as follows: Six Months Ended August 31, 2017 Three Months Ended August 31, 2017 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental Eliminations Consolidated Net Sales $ 5,154,430 $ 130,349 $ 98,149 $ 5,186,630 $ 2,653,695 $ 69,875 $ 49,074 $ 2,674,496 Rental Expense $ 98,149 $ — $ (98,149 ) $ — $ 49,074 $ — $ (49,074 ) $ — Rental Operations Expense $ — $ 39,056 $ 39,056 $ — $ 17,660 $ 17,660 Depreciation Expense $ 165,463 $ 35,313 $ 200,776 $ 81,357 $ 17,611 $ 98,968 Interest Expense $ — $ 24,031 $ 24,031 $ — $ 11,818 $ 11,818 Net Income (Loss) $ 136,714 $ (66,200 ) $ 70,514 $ 80,935 $ (26,290 ) $ 54,645 Assets $ 9,185,671 $ 2,379,181 $ 11,564,852 $ 9,185,671 $ 2,379,181 $ 11,564,852 Debt $ — $ 1,102,089 $ 1,102,089 $ — $ 1,102,089 $ 1,102,089 Six Months Ended August 31, 2016 Three Months Ended August 31, 2016 Ultrasonic Rental Eliminations Consolidated Ultrasonic Rental Real Estate 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 $ — $ (98,149 ) $ — $ 49,074 $ — $ (49,074 ) $ — Rental Operations Expense $ — $ 45,331 $ 45,331 $ — $ 20,408 $ 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 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Aug. 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) | 6 Months Ended |
Aug. 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 - Additionally, the guidance requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: 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, 2017 and February 28, 2017, respectively: Quoted Prices in Active Markets (Level 1) August 31, February 28, Marketable Securities $ 3,546,725 $ 2,342,184 Marketable Securities include mutual funds of $3,546,725 and $2,342,184 that are considered to be highly liquid and easily tradeable as of August 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 – |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Aug. 31, 2017 | |
Inventories Tables | |
Inventories | August 31, February 28, 2017 2017 Raw materials and subassemblies $ 1,169,913 $ 1,197,506 Finished goods 507,157 369,428 Work in process 193,967 28,460 Total 1,871,037 1,595,394 Less: Allowance (305,311 ) (254,710 ) Net inventories $ 1,565,726 $ 1,340,684 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Aug. 31, 2017 | |
Earnings Loss Per Share Tables | |
Computation of basic and diluted earnings per share | Six Months Ended Three Months Ended 2017 2016 2017 2016 Denominator for basic earnings (loss) per share 14,961,137 14,961,076 14,961,197 14,961,076 Dilutive effect of stock options 98,889 — 103,434 — Denominator for diluted earnings (loss) per share 15,060,026 14,961,076 15,064,631 14,961,076 |
Other Comprehensive Income (L20
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Aug. 31, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Unrealized Beginning Balance February 28, 2017 $ 42,250 Current Period Unrealized Gains 59,638 Ending Balance August 31, 2017 $ 101,888 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 6 Months Ended |
Aug. 31, 2017 | |
Long Term Debt Tables | |
Long-term debt | August 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. 1,102,089 1,176,348 Total long term debt 1,102,089 1,176,348 Due within one year 152,848 149,698 Due after one year $ 949,241 $ 1,026,650 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Aug. 31, 2017 | |
Segment Information Tables | |
Segment information | Six Months Ended August 31, 2017 Three Months Ended August 31, 2017 Ultrasonic Spraying Rental Eliminations Consolidated Ultrasonic Spraying Rental Eliminations Consolidated Net Sales $ 5,154,430 $ 130,349 $ 98,149 $ 5,186,630 $ 2,653,695 $ 69,875 $ 49,074 $ 2,674,496 Rental Expense $ 98,149 $ — $ (98,149 ) $ — $ 49,074 $ — $ (49,074 ) $ — Rental Operations Expense $ — $ 39,056 $ 39,056 $ — $ 17,660 $ 17,660 Depreciation Expense $ 165,463 $ 35,313 $ 200,776 $ 81,357 $ 17,611 $ 98,968 Interest Expense $ — $ 24,031 $ 24,031 $ — $ 11,818 $ 11,818 Net Income (Loss) $ 136,714 $ (66,200 ) $ 70,514 $ 80,935 $ (26,290 ) $ 54,645 Assets $ 9,185,671 $ 2,379,181 $ 11,564,852 $ 9,185,671 $ 2,379,181 $ 11,564,852 Debt $ — $ 1,102,089 $ 1,102,089 $ — $ 1,102,089 $ 1,102,089 Six Months Ended August 31, 2016 Three Months Ended August 31, 2016 Ultrasonic Rental Eliminations Consolidated Ultrasonic Rental Real Estate 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 $ — $ (98,149 ) $ — $ 49,074 $ — $ (49,074 ) $ — Rental Operations Expense $ — $ 45,331 $ 45,331 $ — $ 20,408 $ 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 |
Significant Accounting Polici23
Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($) | Aug. 31, 2017 | Feb. 28, 2017 |
Marketable Securities | $ 3,546,725 | $ 2,342,184 |
Quoted Prices in Active Markets (Level 1) | ||
Marketable Securities | $ 3,546,725 | $ 2,342,184 |
Significant Accounting Polici24
Significant Accounting Policies - Fair values of financial assets of the Company (Details Narrative) - USD ($) | Aug. 31, 2017 | Feb. 28, 2017 |
Notes to Financial Statements | ||
Mutual funds | $ 3,546,725 | $ 2,342,184 |
Significant Accounting Polici25
Significant Accounting Policies - Intangible Assets (Details Narrative) - USD ($) | 6 Months Ended | |
Aug. 31, 2017 | Feb. 28, 2017 | |
Accumulated amortization of intangible assets | $ 144,000 | $ 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 Polici26
Significant Accounting Policies - New Accounting Pronouncements (Details Narrative) | Aug. 31, 2017USD ($) |
Accounting Standards Update 2015-17 [Member] | |
Noncurrent deferred tax assets | $ 315,171 |
Inventories (Details)
Inventories (Details) - USD ($) | Aug. 31, 2017 | Feb. 28, 2017 |
Inventories Tables | ||
Raw materials and subassemblies | $ 1,169,913 | $ 1,197,506 |
Finished goods | 507,157 | 369,428 |
Work in process | 193,967 | 28,460 |
Total | 1,871,037 | 1,595,394 |
Less: Allowance | 305,311 | 254,710 |
Net inventories | $ 1,565,726 | $ 1,340,684 |
Stock Options and Warrants (Det
Stock Options and Warrants (Details Narrative) | 3 Months Ended | 6 Months Ended |
Aug. 31, 2017shares | Aug. 31, 2017shares | |
Additional stock options to be granted | 103,434 | 98,889 |
2013 Stock Incentive Plan | ||
Stock options shares available for purchase | 2,500,000 | 2,500,000 |
Stock options outstanding | 751,600 | 751,600 |
Years until options expire | 10 years | |
2003 Stock Incentive Plan | ||
Stock options shares available for purchase | 1,500,000 | 1,500,000 |
Stock options outstanding | 202,000 | 202,000 |
Additional stock options to be granted | 0 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) | 6 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Notes to Financial Statements | ||
Additional stock-based compensation expense as a result of applying ASC 718 | $ 21,488 | $ 18,784 |
Earnings (Loss) Per Share - The
Earnings (Loss) Per Share - The denominator for the calculation of diluted earnings per share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2017 | Aug. 31, 2016 | |
Earnings Loss Per Share Tables | ||||
Denominator for basic earnings (loss) per share | 14,961,197 | 14,961,076 | 14,961,137 | 14,961,076 |
Dilutive effect of stock options | 103,434 | 98,889 | ||
Denominator for diluted earnings per share | 15,064,631 | 14,961,076 | 15,060,026 | 14,961,076 |
potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per | $ 369,520 | $ 369,520 |
Other Comprehensive Income (L31
Other Comprehensive Income (Loss) (Details) - Accumulated Other Comprehensive Gain (Loss) | 6 Months Ended |
Aug. 31, 2017USD ($) | |
Unrealized Gain (Loss) on Available for Sale Securities | |
Beginning Balance February 28, 2017 | $ 42,250 |
Current Period Unrealized Gains | 59,638 |
Ending Balance August 31, 2017 | $ 101,888 |
Other Comprehensive Income (L32
Other Comprehensive Income (Loss) (Details Narrative) - USD ($) | 6 Months Ended | |
Aug. 31, 2017 | Feb. 28, 2017 | |
Equity [Abstract] | ||
Unrealized gain on available-for-sale marketable securities, balance | $ 101,888 | $ 42,250 |
Unrealized gain on available-for-sale securities | $ 101,888 |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) | Aug. 31, 2017 | Feb. 28, 2017 |
Long-term debt | $ 1,102,089 | $ 1,176,348 |
Due within one year | 152,848 | 149,698 |
Due after one year | 949,241 | 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 | $ 1,102,089 | $ 1,176,348 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details Narrative) - Revolving Line of Credit | 6 Months Ended |
Aug. 31, 2017USD ($) | |
Line of credit description | The Company has a $750,000 revolving line of credit at prime which was 4.25% at August 31, 2017. The loan 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 |
Unused credit line | $ 750,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2017 | Aug. 31, 2016 | Feb. 28, 2017 | |
Net Sales | $ 2,674,496 | $ 2,310,451 | $ 5,186,630 | $ 4,550,663 | |
Rental Expense | 35,271 | 38,454 | 74,369 | 81,571 | |
Interest Expense | 11,818 | 13,367 | 24,031 | 27,113 | |
Net Income | 54,645 | (89,673) | 70,514 | (33,882) | |
Assets | 11,564,852 | 11,564,852 | $ 10,735,936 | ||
Debt | 1,102,089 | 1,102,089 | $ 1,176,348 | ||
Ultrasonic Spraying | |||||
Net Sales | 2,653,695 | 2,286,153 | 5,154,430 | 4,502,365 | |
Rental Expense | 49,074 | 49,074 | 98,149 | 98,149 | |
Rental Operations Expense | |||||
Depreciation Expense | 81,357 | 103,866 | 165,463 | 197,744 | |
Interest Expense | |||||
Net Income | 80,935 | (62,150) | 136,714 | 26,503 | |
Assets | 9,185,671 | 8,156,775 | 9,185,671 | 8,156,775 | |
Rental Real Estate Operations | |||||
Net Sales | 69,875 | 73,372 | 130,349 | 146,447 | |
Rental Expense | |||||
Rental Operations Expense | 17,660 | 20,408 | 39,056 | 45,331 | |
Depreciation Expense | 17,611 | 18,046 | 35,313 | 36,240 | |
Interest Expense | 11,818 | 13,367 | 24,031 | 27,113 | |
Net Income | (26,290) | (27,523) | (66,200) | (60,385) | |
Assets | 2,379,181 | 2,424,489 | 2,379,181 | 2,424,489 | |
Debt | 1,102,089 | 1,248,650 | 1,102,089 | 1,248,650 | |
Eliminations | |||||
Net Sales | 49,074 | 49,074 | 98,149 | 98,149 | |
Rental Expense | (49,074) | (49,074) | (98,149) | (98,149) | |
Consolidated | |||||
Net Sales | 2,674,496 | 2,310,451 | 5,186,630 | 4,550,663 | |
Rental Expense | |||||
Rental Operations Expense | 17,660 | 20,408 | 39,056 | 45,331 | |
Depreciation Expense | 98,968 | 121,912 | 200,776 | 233,984 | |
Interest Expense | 11,818 | 13,367 | 24,031 | 27,113 | |
Net Income | 54,645 | (89,673) | 70,514 | (33,882) | |
Assets | 11,564,852 | 10,581,264 | 11,564,852 | 10,581,264 | |
Debt | $ 1,102,089 | $ 1,248,650 | $ 1,102,089 | $ 1,248,650 |