Sono-Tek (SOTK) 10-Q 16 Jan 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Nov. 30, 2017	Jan. 09, 2018
Document And Entity Information
Entity Registrant Name	SONO TEK CORP
Entity Central Index Key	806,172
Document Type	10-Q
Document Period End Date	Nov. 30, 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		14,982,315
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Nov. 30, 2017	Feb. 28, 2017
Current Assets:
Cash and cash equivalents	$ 1,698,721	$ 2,557,223
Marketable Securities	4,447,496	2,342,184
Accounts receivable (less allowance of $46,000 at November 30 and February 28)	978,336	1,150,801
Inventories, net	1,503,228	1,340,684
Prepaid expenses and other current assets	106,435	127,276
Total current assets	8,734,216	7,518,168
Land	250,000	250,000
Buildings, net	1,826,311	1,875,074
Equipment, furnishings and building improvements, net	563,521	624,197
Intangible assets, net	140,644	153,326
Deferred tax asset	315,171	315,171
TOTAL ASSETS	11,829,863	10,735,936
Current Liabilities:
Accounts payable	565,046	336,561
Accrued expenses	826,929	868,755
Customer deposits	652,552	78,902
Current maturities of long term debt	154,475	149,698
Income taxes payable	52,174	14,619
Total current liabilities	2,251,176	1,448,535
Deferred tax liability	337,726	337,726
Long term debt, less current maturities	910,096	1,026,650
Total liabilities	3,498,998	2,812,911
Stockholders' Equity
Common stock, $.01 par value; 25,000,000 shares authorized, 14,976,644 and 14,961,076 shares issued and outstanding, at November 30 and February 28, respectively	149,767	149,611
Additional paid-in capital	8,891,077	8,859,486
Accumulated deficit	(863,366)	(1,128,322)
Accumulated other comprehensive income	153,387	42,250
Total stockholders' equity	8,330,865	7,923,025
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 11,829,863	$ 10,735,936

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Nov. 30, 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	14,976,644	14,961,076
Common stock, outstanding shares	14,976,644	14,961,076

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Income Statement [Abstract]
Net Sales	$ 2,982,377	$ 2,599,104	$ 8,169,007	$ 7,149,766
Cost of Goods Sold	1,507,500	1,359,704	4,132,799	3,861,651
Gross Profit	1,474,877	1,239,400	4,036,208	3,288,115
Operating Expenses
Research and product development costs	318,037	307,645	922,460	924,056
Marketing and selling expenses	660,050	575,737	1,866,204	1,654,806
General and administrative costs	261,772	265,805	819,886	767,412
Rental operations expense	36,648	36,007	111,017	117,578
Total Operating Expenses	1,276,507	1,185,194	3,719,567	3,463,852
Operating Income (Loss)	198,370	54,206	316,641	(175,737)
Interest Expense	(11,299)	(12,848)	(35,330)	(39,960)
Interest and Dividend Income	22,087	15,038	58,298	48,142
Other income	25,652	5,946	17,790	208,015
Income from Operations Before Income Taxes	234,810	62,342	357,399	40,460
Income Tax Expense	40,368		92,443	12,000
Net Income	194,442	62,342	264,956	28,460
Other Comprehensive Income
Net unrealized gain (loss) on marketable securities	51,499	(31,275)	111,137	61,097
Comprehensive Income	$ 245,941	$ 31,067	$ 376,093	$ 89,557
Basic Earnings (Loss) Per Share	$ 0.01	$ 0	$ 0.02	$ 0
Diluted Earnings (Loss) Per Share	$ 0.01	$ 0	$ 0.02	$ 0
Weighted Average Shares - Basic	14,969,933	14,961,076	14,964,048	14,961,076
Weighted Average Shares - Diluted	15,113,389	15,038,794	15,073,576	15,015,370

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 264,956	$ 28,460
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	279,848	365,640
Stock based compensation expense	31,536	33,415
Inventory reserve	77,601	56,979
(Increase) Decrease in:
Accounts receivable	172,465	166,536
Inventories	(240,144)	174,287
Prepaid expenses and other current assets	20,841	24,670
Increase (Decrease) in:
Accounts payable and accrued expenses	186,659	(68,618)
Customer deposits	573,650	238,272
Income taxes payable	37,555	(42,877)
Net Cash Provided by Operating Activities	1,404,967	976,764
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment and furnishings	(157,727)	(170,659)
Purchase of marketable securities	(1,994,175)	(319,702)
Net Cash (Used in) Investing Activities	(2,151,902)	(490,361)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	210
Repayments of notes payable and loans	(111,777)	(107,045)
Net Cash (Used In) Financing Activities	(111,567)	(107,045)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(858,502)	379,358
CASH AND CASH EQUIVALENTS
Beginning of period	2,557,223	2,388,355
End of period	1,698,721	2,767,713
SUPPLEMENTAL DISCLOSURE:
Interest paid	35,330	39,960
Taxes Paid	$ 58,969	$ 42,877

Business Description

Business Description	9 Months Ended
	Nov. 30, 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	9 Months Ended
	Nov. 30, 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 November 30, 2017 and February 28, 2017, respectively: Quoted Prices in Active Markets (Level 1) November 30, February 28, Marketable Securities $ 4,447,496 $ 2,342,184 Marketable Securities include mutual funds of $4,447,496 and $2,342,184 that are considered to be highly liquid and easily tradeable as of November 30, 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	9 Months Ended
	Nov. 30, 2017
Notes to Financial Statements
Inventories	NOTE 3: INVENTORIES Inventories consist of the following: November 30, February 28, Raw materials and subassemblies $ 1,153,908 $ 1,197,506 Finished Goods 413,595 369,428 Work in process 268,036 28,460 Total 1,835,539 1,595,394 Less: Allowance (332,311 ) (254,710 ) Net inventories $ 1,503,228 $ 1,340,684

Stock Options and Warrants

Stock Options and Warrants	9 Months Ended
	Nov. 30, 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 November 30, 2017, there were 173,500 options outstanding under the 2003 Plan, under which no additional options may be granted.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Nov. 30, 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 nine months ended November 30, 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 $32,000 and $33,000 in additional compensation expense during each of the nine month periods ended November 30, 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	9 Months Ended
	Nov. 30, 2017
Notes to Financial Statements
Earnings (Loss) Per Share	NOTE 6: EARNINGS PER SHARE The denominators for the calculation of diluted earnings per share at November 30, 2017 and 2016 are calculated as follows: Nine Months Ended Three Months Ended 2017 2016 2017 2016 Denominator for basic earnings per share 14,964,048 14,961,076 14,969,933 14,961,076 Dilutive effect of stock options 109,528 54,294 143,456 77,718 Denominator for diluted earnings per share 15,073,576 15,015,370 15,113,389 15,038,794

Other Comprehensive Income (Los

Other Comprehensive Income (Loss)	9 Months Ended
	Nov. 30, 2017
Equity [Abstract]
Other Comprehensive Income (Loss)	NOTE 7: OTHER COMPREHENSIVE INCOME (LOSS) As of November 30, 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 November 30, 2017, the unrealized gain on available-for-sale securities was $153,387. The following table sets forth the changes in Accumulated Other Comprehensive Gain for the nine months ended November 30, 2017: Unrealized Gain on Available for Sale Securities Beginning Balance February 28, 2017 $ 42,250 Current Period Unrealized Gains 111,137 Ending Balance November 30, 2017 $ 153,387

Long Term Debt

Long Term Debt	9 Months Ended
	Nov. 30, 2017
Notes to Financial Statements
Long Term Debt	NOTE 8: LONG TERM DEBT Long-term debt consists of the following: November 30, 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. 1,064,571 1,176,348 Total long term debt 1,064,571 1,176,348 Due within one year 154,475 149,698 Due after one year $ 910,096 $ 1,026,650

Revolving Line of Credit

Revolving Line of Credit	9 Months Ended
	Nov. 30, 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 November 30, 2017. The line of credit is collateralized by all of the assets of the Company, except for the land and buildings. The line of credit is payable on demand and must be retired for a 30-day period once annually. If the Company fails to perform the 30-day annual pay down or if the bank elects to terminate the credit line, the bank may at its option convert the outstanding balance to a 36-month term note with payments including interest in 36 equal installments. As of November 30, 2017, the Company’s outstanding balance was $0, and the unused credit line was $750,000.

Segment Information

Segment Information	9 Months Ended
	Nov. 30, 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 nine and three months ended November 30, 2017 and 2016, segment information is as follows: Nine Months Ended November 30, 2017 Three Months Ended November 30, 2017 Ultrasonic Rental Eliminations Consolidated Ultrasonic Rental Eliminations Consolidated Net Sales $ 8,114,007 $ 202,223 $ 147,223 $ 8,169,007 $ 2,959,577 $ 71,874 $ 49,074 $ 2,982,377 Rent Expense $ 147,223 $ — $ (147,223 ) $ — $ 49,074 $ — $ (49,074 ) $ — Rental Operations Expense $ — $ 57,850 — $ 57,850 $ — $ 18,794 — $ 18,794 Depreciation Expense $ 226,681 $ 53,167 $ 279,848 $ 61,218 $ 17,854 $ 79,072 Interest Expense $ — $ 35,330 $ 35,330 $ — $ 11,299 $ 11,299 Net Income (Loss) $ 356,303 $ (91,347 ) $ 264,956 $ 219,589 $ (25,147 ) $ 194,442 Assets $ 9,470,747 $ 2,359,116 $ 11,829,863 $ 9,470,747 $ 2,359,116 $ 11,829,863 Debt $ — $ 1,064,571 $ 1,064,571 $ — $ 1,064,571 $ 1,064,571 Nine Months Ended November 30, 2016 Three Months Ended November 30, 2016 Ultrasonic Rental Eliminations Consolidated Ultrasonic Rental Eliminations Consolidated Net Sales $ 7,077,318 $ 219,671 $ 147,223 $ 7,149,766 $ 2,574,954 $ 73,224 $ 49,074 $ 2,599,104 Rent Expense $ 147,223 $ — $ (147,223 ) $ — $ 49,074 $ — $ (49,074 ) $ — Rental Operations Expense $ — $ 63,292 $ 63,292 $ — $ 17,961 $ 17,961 Depreciation Expense $ 311,354 $ 54,286 $ 365,640 $ 109,491 $ 18,046 $ 127,537 Interest Expense $ — $ 39,960 $ 39,960 $ — $ 12,848 $ 12,848 Net Income (Loss) $ 113,550 $ (85,090 ) $ 28,460 $ 87,047 $ (24,705 ) $ 62,342 Assets $ 8,397,682 $ 2,414,558 $ 10,812,240 $ 8,397,682 $ 2,414,558 $ 10,812,240 Debt $ — $ 1,212,692 $ 1,212,692 $ — $ 1,212,692 $ 1,212,692

Subsequent Events

Subsequent Events	9 Months Ended
	Nov. 30, 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)	9 Months Ended
	Nov. 30, 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 November 30, 2017 and February 28, 2017, respectively: Quoted Prices in Active Markets (Level 1) November 30, February 28, Marketable Securities $ 4,447,496 $ 2,342,184 Marketable Securities include mutual funds of $4,447,496 and $2,342,184 that are considered to be highly liquid and easily tradeable as of November 30, 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)	9 Months Ended
	Nov. 30, 2017
Inventories Tables
Inventories	November 30, February 28, Raw materials and subassemblies $ 1,153,908 $ 1,197,506 Finished Goods 413,595 369,428 Work in process 268,036 28,460 Total 1,835,539 1,595,394 Less: Allowance (332,311 ) (254,710 ) Net inventories $ 1,503,228 $ 1,340,684

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Nov. 30, 2017
Earnings Loss Per Share Tables
Computation of basic and diluted earnings per share	Nine Months Ended Three Months Ended 2017 2016 2017 2016 Denominator for basic earnings per share 14,964,048 14,961,076 14,969,933 14,961,076 Dilutive effect of stock options 109,528 54,294 143,456 77,718 Denominator for diluted earnings per share 15,073,576 15,015,370 15,113,389 15,038,794

Other Comprehensive Income (L20

Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Nov. 30, 2017
Equity [Abstract]
Changes in Accumulated Other Comprehensive Loss	Unrealized Gain on Available for Sale Securities Beginning Balance February 28, 2017 $ 42,250 Current Period Unrealized Gains 111,137 Ending Balance November 30, 2017 $ 153,387

Long Term Debt (Tables)

Long Term Debt (Tables)	9 Months Ended
	Nov. 30, 2017
Long Term Debt Tables
Long-term debt	November 30, 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. 1,064,571 1,176,348 Total long term debt 1,064,571 1,176,348 Due within one year 154,475 149,698 Due after one year $ 910,096 $ 1,026,650

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Nov. 30, 2017
Segment Information Tables
Segment information	Nine Months Ended November 30, 2017 Three Months Ended November 30, 2017 Ultrasonic Rental Eliminations Consolidated Ultrasonic Rental Eliminations Consolidated Net Sales $ 8,114,007 $ 202,223 $ 147,223 $ 8,169,007 $ 2,959,577 $ 71,874 $ 49,074 $ 2,982,377 Rent Expense $ 147,223 $ — $ (147,223 ) $ — $ 49,074 $ — $ (49,074 ) $ — Rental Operations Expense $ — $ 57,850 — $ 57,850 $ — $ 18,794 — $ 18,794 Depreciation Expense $ 226,681 $ 53,167 $ 279,848 $ 61,218 $ 17,854 $ 79,072 Interest Expense $ — $ 35,330 $ 35,330 $ — $ 11,299 $ 11,299 Net Income (Loss) $ 356,303 $ (91,347 ) $ 264,956 $ 219,589 $ (25,147 ) $ 194,442 Assets $ 9,470,747 $ 2,359,116 $ 11,829,863 $ 9,470,747 $ 2,359,116 $ 11,829,863 Debt $ — $ 1,064,571 $ 1,064,571 $ — $ 1,064,571 $ 1,064,571 Nine Months Ended November 30, 2016 Three Months Ended November 30, 2016 Ultrasonic Rental Eliminations Consolidated Ultrasonic Rental Eliminations Consolidated Net Sales $ 7,077,318 $ 219,671 $ 147,223 $ 7,149,766 $ 2,574,954 $ 73,224 $ 49,074 $ 2,599,104 Rent Expense $ 147,223 $ — $ (147,223 ) $ — $ 49,074 $ — $ (49,074 ) $ — Rental Operations Expense $ — $ 63,292 $ 63,292 $ — $ 17,961 $ 17,961 Depreciation Expense $ 311,354 $ 54,286 $ 365,640 $ 109,491 $ 18,046 $ 127,537 Interest Expense $ — $ 39,960 $ 39,960 $ — $ 12,848 $ 12,848 Net Income (Loss) $ 113,550 $ (85,090 ) $ 28,460 $ 87,047 $ (24,705 ) $ 62,342 Assets $ 8,397,682 $ 2,414,558 $ 10,812,240 $ 8,397,682 $ 2,414,558 $ 10,812,240 Debt $ — $ 1,212,692 $ 1,212,692 $ — $ 1,212,692 $ 1,212,692

Significant Accounting Polici23

Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($)	Nov. 30, 2017	Feb. 28, 2017
Marketable Securities	$ 4,447,496	$ 2,342,184
Quoted Prices in Active Markets (Level 1)
Marketable Securities	$ 4,447,496	$ 2,342,184

Significant Accounting Polici24

Significant Accounting Policies - Fair values of financial assets of the Company (Details Narrative) - USD ($)	Nov. 30, 2017	Feb. 28, 2017
Notes to Financial Statements
Mutual funds	$ 4,447,496	$ 2,342,184

Significant Accounting Polici25

Significant Accounting Policies - Intangible Assets (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2017	Feb. 28, 2017
Accumulated amortization of intangible assets	$ 147,000	$ 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)	Feb. 28, 2017USD ($)
Accounting Standards Update 2015-17 [Member]
Noncurrent deferred tax assets	$ 315,171

Inventories (Details)

Inventories (Details) - USD ($)	Nov. 30, 2017	Feb. 28, 2017
Inventories Tables
Raw materials and subassemblies	$ 1,153,908	$ 1,197,506
Finished goods	413,595	369,428
Work in process	268,036	28,460
Total	1,835,539	1,595,394
Less: Allowance	332,311	254,710
Net inventories	$ 1,503,228	$ 1,340,684

Stock Options and Warrants (Det

Stock Options and Warrants (Details Narrative)	9 Months Ended
	Nov. 30, 2017shares
2013 Stock Incentive Plan
Stock options shares available for purchase	2,500,000
Stock options outstanding	744,000
Years until options expire	10 years
2003 Stock Incentive Plan
Stock options shares available for purchase	1,500,000
Stock options outstanding	173,500

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
Notes to Financial Statements
Additional stock-based compensation expense as a result of applying ASC 718	$ 31,536	$ 33,415

Earnings (Loss) Per Share - The

Earnings (Loss) Per Share - The denominator for the calculation of diluted earnings per share (Details) - shares	3 Months Ended		9 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Earnings Loss Per Share Tables
Denominator for basic earnings (loss) per share	14,969,933	14,961,076	14,964,048	14,961,076
Dilutive effect of stock options	143,456	77,718	109,528	54,294
Denominator for diluted earnings per share	15,113,389	15,038,794	15,073,576	15,015,370

Other Comprehensive Income (L31

Other Comprehensive Income (Loss) (Details) - Accumulated Other Comprehensive Gain (Loss)	9 Months Ended
	Nov. 30, 2017USD ($)
Unrealized Gain (Loss) on Available for Sale Securities
Beginning Balance February 28, 2017	$ 42,250
Current Period Unrealized Gains	111,137
Ending Balance	$ 153,387

Other Comprehensive Income (L32

Other Comprehensive Income (Loss) (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2017	Feb. 28, 2017
Equity [Abstract]
Unrealized gain on available-for-sale marketable securities, balance	$ 153,387	$ 42,250
Unrealized gain on available-for-sale securities	$ 153,387

Long Term Debt (Details)

Long Term Debt (Details) - USD ($)	Nov. 30, 2017	Aug. 31, 2017	Feb. 28, 2017
Long-term debt	$ 1,064,571		$ 1,176,348
Due within one year	154,475		149,698
Due after one year	$ 910,096		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		$ 1,064,571	$ 1,176,348

Revolving Line of Credit (Detai

Revolving Line of Credit (Details Narrative) - Revolving Line of Credit	9 Months Ended
	Nov. 30, 2017USD ($)
Line of credit description	The Company has a $750,000 revolving line of credit at prime which was 4.25% . The line of credit is collateralized by all of the assets of the Company, except for the land and buildings. The line of credit is payable on demand and must be retired for a 30-day period once annually. If the Company fails to perform the 30-day annual pay down or if the bank elects to terminate the credit line, the bank may at its option convert the outstanding balance to a 36-month term note with payments including interest in 36 equal installments.
Outstanding balance	$ 0
Unused credit line	$ 750,000

Segment Information (Details)

Segment Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016	Feb. 28, 2017
Net Sales	$ 2,982,377	$ 2,599,104	$ 8,169,007	$ 7,149,766
Rental Expense	36,648	36,007	111,017	117,578
Interest Expense	11,299	12,848	35,330	39,960
Net Income	194,442	62,342	264,956	28,460
Assets	11,829,863		11,829,863		$ 10,735,936
Debt	1,064,571		1,064,571		$ 1,176,348
Ultrasonic Spraying
Net Sales	2,959,577	2,574,954	8,114,007	7,077,318
Rental Expense	49,074	49,074	147,223	147,223
Rental Operations Expense
Depreciation Expense	61,218	109,491	226,681	311,354
Interest Expense
Net Income	219,589	87,047	356,303	113,550
Assets	9,470,747	8,397,682	9,470,747	8,397,682
Rental Real Estate Operations
Net Sales	71,874	73,224	202,223	219,671
Rental Expense
Rental Operations Expense	18,794	17,961	57,850	63,292
Depreciation Expense	17,854	18,046	53,167	54,286
Interest Expense	11,299	12,848	35,330	39,960
Net Income	(25,147)	(24,705)	(91,347)	(85,090)
Assets	2,359,116	2,414,558	2,359,116	2,414,558
Debt	1,064,571	1,212,692	1,064,571	1,212,692
Eliminations
Net Sales	49,074	49,074	147,223	147,223
Rental Expense	(49,074)	(49,074)	(147,223)	(147,223)
Consolidated
Net Sales	2,982,377	2,599,104	8,169,007	7,149,766
Rental Expense
Rental Operations Expense	18,794	17,961	57,850	63,292
Depreciation Expense	79,072	127,537	279,848	365,640
Interest Expense	11,299	12,848	35,330	39,960
Net Income	194,442	62,342	264,956	28,460
Assets	11,829,863	10,812,240	11,829,863	10,812,240
Debt	$ 1,064,571	$ 1,212,692	$ 1,064,571	$ 1,212,692