Sono-Tek (SOTK) 10-K 28 May 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Feb. 28, 2019	May 28, 2019	Aug. 31, 2018
Document And Entity Information
Entity Registrant Name	SONO TEK CORP
Entity Central Index Key	0000806172
Document Type	10-K
Document Period End Date	Feb. 28, 2019
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	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 34,185,178
Entity Common Stock, Shares Outstanding		15,197,563
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Feb. 28, 2019	Feb. 28, 2018
Current Assets:
Cash and cash equivalents	$ 3,144,123	$ 2,016,464
Marketable Securities	2,365,706	4,405,900
Accounts receivable (less allowance of $46,000)	1,397,891	774,778
Inventories, net	1,658,016	1,354,083
Prepaid expenses and other current assets	395,005	139,406
Total current assets	8,960,741	8,690,631
Land	250,000	250,000
Buildings, net	1,731,547	1,807,339
Equipment, furnishings and leasehold improvements, net	802,932	498,401
Intangible assets, net	122,941	136,576
Deferred tax asset	332,017	396,387
TOTAL ASSETS	12,200,178	11,779,334
Current Liabilities:
Accounts payable	585,694	652,863
Accrued expenses	632,706	893,192
Customer deposits	1,149,558	344,098
Current maturities of long term debt	162,816	156,119
Income taxes payable	6,272	84,621
Total current liabilities	2,537,046	2,130,893
Deferred tax liability	370,757	385,384
Long term debt, less current maturities	707,715	870,532
Total liabilities	3,615,518	3,386,809
Commitments and Contingencies
Stockholders' Equity
Common stock	151,976	149,864
Additional paid-in capital	8,929,607	8,901,171
Accumulated deficit	(496,923)	(760,115)
Accumulated other comprehensive income (loss)		101,605
Total stockholders' equity	8,584,660	8,392,525
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 12,200,178	$ 11,779,334

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Feb. 28, 2019	Feb. 28, 2018
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	15,197,563	14,986,367
Common stock, outstanding shares	15,197,563	14,986,367

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Income Statement [Abstract]
Net Sales	$ 11,609,599	$ 11,008,444
Cost of Goods Sold	6,361,353	5,711,951
Gross Profit	5,248,246	5,296,493
Operating Expenses
Research and product development	1,324,766	1,280,308
Marketing and selling	2,686,382	2,516,461
General and administrative	1,154,611	1,118,107
Total Operating Expenses	5,165,759	4,914,876
Operating Income (Loss)	82,487	381,617
Other Income (Expense):
Interest Expense	(39,977)	(46,117)
Interest and Dividend Income	136,677	91,459
Realized gain on sale of marketable securities	73,699	11,208
Net unrealized loss on marketable securities	(100,184)
Other Income	28,732	21,896
Income Before Income Taxes	181,434	460,063
Income Tax (Benefit) Expense	19,847	91,856
Net Income	161,587	368,207
Other Comprehensive Income (Loss)
Net unrealized gain on marketable securities		59,355
Comprehensive Income	$ 161,587	$ 427,562
Basic Earnings Per Share	$ 0.01	$ 0.02
Diluted Earnings Per Share	$ 0.01	$ 0.02
Weighted Average Shares - Basic	15,107,778	14,968,450
Weighted Average Shares - Diluted	15,218,913	15,095,123

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 161,587	$ 368,207
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	332,147	399,526
Stock based compensation expense	30,548	41,728
Inventory reserve	66,000	104,601
Unrealized loss on marketable securities	100,184
Deferred tax expense	49,743	(33,558)
(Increase) Decrease in:
Accounts receivable	(623,113)	376,023
Inventories	(369,933)	(118,000)
Prepaid expenses and other assets	(255,599)	(12,130)
(Decrease) Increase in:
Accounts payable and accrued expenses	(327,655)	340,739
Customer deposits	805,460	265,196
Income taxes payable	(78,349)	70,002
Net Cash (Used In) Provided by Operating Activities	(108,980)	1,802,334
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of equipment, furnishings and leasehold improvements	(547,251)	(189,245)
Sale of marketable securities	1,940,010
Purchase of marketable securities		(2,004,360)
Net Cash Provided By (Used In) Investing Activities	1,392,759	(2,193,605)
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from exercise of options		210
Repayment of long term debt	(156,120)	(149,698)
Net Cash (Used In) Financing Activities	(156,120)	(149,488)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,127,659	(540,759)
CASH AND CASH EQUIVALENTS
Beginning of year	2,016,464	2,557,223
End of year	3,144,123	2,016,464
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid	39,977	46,117
Income Taxes Paid	$ 28,178	$ 59,494

Consolidated Statements of Stoc

Consolidated Statements of Stockholders Equity - USD ($)	Common Stock Par Value $.01	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Beginning balance (shares) at Feb. 28, 2017	14,961,076
Beginning balance at Feb. 28, 2017	$ 149,611	$ 8,859,486	$ 42,250	$ (1,128,322)	$ 7,923,025
Exercise of stock options (shares)	25,291
Exercise of stock options	$ 253	(43)			210
Stock based compensation expense		41,728			41,728
Unrealized gain on marketable securities			59,355		59,355
Net Income				368,207	368,207
Ending balance (shares) at Feb. 28, 2018	14,986,367
Ending balance at Feb. 28, 2018	$ 149,864	8,901,171	101,605	(760,115)	8,392,525
Reclassification of unrealized gain on marketable securities upon adoption of ASU 2016-01			$ (101,605)	101,605
Exercise of stock options (shares)	211,196
Exercise of stock options	$ 2,112	(2,112)
Stock based compensation expense		30,548			30,548
Net Income				161,587	161,587
Ending balance (shares) at Feb. 28, 2019	15,197,563
Ending balance at Feb. 28, 2019	$ 151,976	$ 8,929,607		$ (496,923)	$ 8,584,660

Business Description

Business Description	12 Months Ended
	Feb. 28, 2019
Accounting Policies [Abstract]
Business Description	NOTE 1: BUSINESS DESCRIPTION Sono-Tek Corporation (the “Company”, “Sono-Tek”, “We” or “Our”) was incorporated in New York on March 21, 1975. We are the world leader in the design and manufacture of ultrasonic coating systems for applying precise, thin film coatings to protect, strengthen or smooth surfaces on parts and components for the microelectronics/electronics, alternative energy, medical, industrial and emerging research & development/other markets. We design and manufacture custom-engineered ultrasonic coating systems and also provide patented nozzles and generators for manufacturers’ equipment.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Feb. 28, 2019
Notes to Financial Statements
Significant Accounting Policies	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Advertising Expenses - Allowance for doubtful accounts - Cash and Cash Equivalents - Concentration of Credit Risk - The Company had one customer, which accounted for 8% of sales during fiscal 2018. Two customers accounted for 22% of the outstanding accounts receivables at February 28, 2018. 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, 2019 and 2018, respectively: Quoted Prices in Active Markets (Level 1) February 28, 2019 2018 Marketable Securities $ 2,365,706 $ 4,405,900 Marketable Securities include mutual funds, certificates of deposit and US Treasury securities, totaling $2,365,706 and $4,405,900 that are considered to be highly liquid and easily tradeable as of February 28, 2019 and 2018, 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.” As of February 28, 2019, certain of the Company’s marketable securities were in an unrealized gain position. Unrealized gains and 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 these unrealized gains or losses to be other than temporary. Net unrealized gains at February 28, 2019 are $1,422. Income Taxes Intangible Assets - Inventories - Land and Buildings – Long-Lived Assets - Management Estimates - Marketable Securities New Accounting Pronouncements In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is effective for all entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has evaluated the potential impact this standard may have on the consolidated financial statements, the fair value of the securities from the prior year has been reclassified to Retained Earnings from Other Accumulated Comprehensive Income. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either operating or financing, with such classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018, and early adoption is permitted. The adoption of ASU 2016-02 will have no material impact on the Company’s financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. ASU 2018-02 was issued to allow the reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effect resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017. The Tax Cuts and Jobs Act, among other things, reduced the corporate tax rate from 35% to 21%, which required the re-evaluation of any deferred tax assets and liabilities at the lowered tax rate which potentially could leave a disproportionate tax effect in accumulated other comprehensive income. ASU 2018-02 allows for the election to reclassify these stranded tax effects to retained earnings. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for public business entities for reporting periods for which financials statements have not yet been issued. The adoption of ASU 2018-02 will have no material impact on the Company’s financial statements. Other than ASU No. ASU 2016-01, ASU 2016-02 and ASU 2018-02 discussed above, all new accounting pronouncements issued but not yet effective have been deemed to be not applicable to the Company. Hence, the adoption of these new accounting pronouncements, once effective, is not expected to have an impact on the Company. Product Warranty Reclassifications – Research and Product Development Expenses - Shipping and Handling Costs –

Revenue Recognition

Revenue Recognition	12 Months Ended
	Feb. 28, 2019
Notes to Financial Statements
Revenue Recognition	NOTE 3: REVENUE RECOGNITION In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers” (Topic 606) The new revenue standard is principle based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. The implementation of the standard did not have a material impact on the financial statements. A majority of the Company’s sales revenue is derived primarily from short term contracts with customers, which, on average, are in effect for less than twelve months. Sales revenue from manufactured equipment transferred at a single point in time accounts for a majority of the Company’s revenue. Sales revenue is recognized when control of the Company’s manufactured equipment is transferred to its customers, in an amount that reflects the consideration the Company expects to receive based upon the agreed transaction price. The Company’s performance obligations are satisfied when it’s customers take control of the purchased equipment, which is based on the contract terms. Based on prior experience, the Company reasonably estimates its sales returns and warranty reserves. Sales are presented net of discounts and allowances. Discounts and allowances are determined when a sale is negotiated. The Company does not grant its customers or independent representatives the ability to return equipment nor does it grant price adjustments after a sale is complete. The Company does not capitalize any sales commission costs related to the acquisition of a contract. All commissions related to a performance obligation that are satisfied at a point in time are expensed when the customer takes control of the purchased equipment. At February 28, 2019, the Company had received $1,150,000 in cash deposits, and had issued Letters of Credit in the amount of $808,000 to secure these cash deposits. The Company was utilizing $808,000 of its available credit line to collateralize these letters of credit.

Stock Based Compensation

Stock Based Compensation	12 Months Ended
	Feb. 28, 2019
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. During fiscal 2019, the Company granted options to acquire 35,000 shares to employees exercisable at prices from $2.47 to $2.55 and options for 20,000 shares to a member of the board of directors with an exercise price of $3.00. The options vest annually over three years and expire in ten years. The fiscal 2019 options had a weighted average grant date fair value of $0.90 per share. During fiscal 2018, the Company granted options to acquire 110,000 shares to an officer, at an exercise price of $1.06 and options for 20,000 shares exercisable at prices from $1.15 to $1.67 to employees of the Company. The fiscal 2018 options had a weighted average grant date fair value of $0.18 per share. 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, 2019 2018 Expected life 8 years 2-8 years Risk free interest rate 2.47% - 2.98% 1.79% - 2.32% Expected volatility 24.82% - 28.24% 12.65% - 22.24% 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, 2019 and 2018, net income and earnings per share reflect the actual deduction for stock-based compensation expense. The impact of applying ASC 718 approximated $30,548 and $41,728 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, 2019
Notes to Financial Statements
Inventories	NOTE 5: INVENTORIES Inventories consist of the following: February 28, 2019 2018 Raw materials and subassemblies $ 873,483 $ 673,969 Finished goods 571,640 395,410 Work in process 483,271 489,082 Total 1,928,394 1,558,461 Less: Allowance (270,378 ) (204,378 ) Net inventories $ 1,658,016 $ 1,354,083

Buildings, Equipment, Furnishin

Buildings, Equipment, Furnishings and Leasehold Improvements	12 Months Ended
	Feb. 28, 2019
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 28, 2019 2018 Buildings $ 2,250,000 $ 2,250,000 Laboratory equipment 1,140,821 1,082,051 Machinery and equipment 1,211,778 872,598 Leasehold improvements 473,560 413,529 Tradeshow and demonstration equipment 1,086,916 1,070,860 Furniture and fixtures 1,044,222 971,011 Totals 7,207,297 6,660,049 Less: Accumulated depreciation (4,672,818 ) (4,354,309 ) $ 2,534,479 $ 2,305,740 Depreciation expense for the years ended February 28, 2019 and 2018 was $324,381 and $382,777, respectively.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Feb. 28, 2019
Payables and Accruals [Abstract]
Accrued Expenses	NOTE 7: ACCRUED EXPENSES Accrued expenses consist of the following: February 28, 2019 2018 Accrued compensation $ 284,587 $ 362,405 Estimated warranty costs 62,500 64,050 Accrued commissions 100,114 194,934 Professional fees 65,049 64,928 Other accrued expenses 120,456 206,875 $ 632,706 $ 893,192

Revolving Line of Credit

Revolving Line of Credit	12 Months Ended
	Feb. 28, 2019
Notes to Financial Statements
Revolving Line of Credit	NOTE 8: REVOLVING LINE OF CREDIT The Company has a $1,500,000 revolving line of credit at prime which was 5.50% at February 28, 2019 and 4.50% at February 28, 2018. The revolving credit line is collateralized by the Company’s accounts receivable and inventory. The revolving credit line 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, 2019, $808,000 of the Company’s credit line was being utilized to collateralize letters of credit issued to customers that have remitted cash deposits to the Company on existing orders. The letters of credit expire in 2020. As of February 28, 2019, there were no outstanding borrowings under the line of credit and the unused portion of the credit line was $692,000 as of February 28, 2019.

Long Term Debt

Long Term Debt	12 Months Ended
	Feb. 28, 2019
Notes to Financial Statements
Long Term Debt	NOTE 9: LONG-TERM DEBT Long-term debt consists of the following: February 28, 2019 2018 Note payable, bank, collateralized by land and buildings, payable in monthly installments of principal and interest of $16,358 through January 2024 with an interest rate of 4.15% and a 10-year term. 870,531 1,026,651 Total long-term debt 870,531 1,026,651 Due within one year 162,816 156,119 Due after one year $ 707,715 $ 870,532 Long-term debt is payable as follows: Fiscal Year ending February 28, 2020 162,816 2021 169,716 2022 177,081 2023 184,677 2024 176,241 $ 870,531

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Feb. 28, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 10: COMMITMENTS AND CONTINGENCIES The Company did not have any material commitments or contingencies as of February 28, 2019.

Income Taxes

Income Taxes	12 Months Ended
	Feb. 28, 2019
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 11: INCOME TAXES The annual provision (benefit) for income taxes differs from amounts computed by applying the maximum U.S. Federal income tax rate of 21% to pre-tax income as follows: February 28, 2019 2018 Expected federal income tax $ 38,101 $ 156,421 State tax, net of federal 11,430 24,383 Research and development tax credits (19,588 ) (57,994 ) Under accrual of prior year state taxes — 40,793 Change in recapture tax rate from 39.3% to 27.3% — 15,343 Permanent timing difference 2,272 33,107 Change in valuation allowances (36,425 ) (159,300 ) Other adjustments 24,057 39,103 Income tax expense $ 19,847 $ 91,856 The deferred tax asset and liability are comprised of the following: February 28, 2019 2018 Deferred tax asset Inventory $ 74,000 $ 104,800 Allowance for accounts receivable 13,000 18,100 Accrued expenses and other 37,000 111,200 Research tax credits 208,000 208,300 Valuation allowance — (46,000 ) Deferred tax asset – Long Term 332,000 396,400 Deferred tax liability Intangible asset amortization (25,000 ) (25,000 ) Building and leasehold depreciation (346,000 ) (360,400 ) Deferred tax liability – Long Term $ (371,000 ) $ (385,400 ) At February 28, 2019 and 2018, the Company had $208,000 of research and development tax credits being carried forward. Deferred income taxes have been provided by temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. To the extent allowed by GAAP, the Company provides a valuation allowance against the deferred tax assets for amounts when the realization is uncertain. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act establishes new tax laws that affects 2018 and future years, including a reduction in the U.S. federal corporate tax rate to 21%, effective March 1, 2018. Tax returns for the prior three years are subject to examination by the IRS.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Feb. 28, 2019
Equity [Abstract]
Stockholders' Equity	NOTE 12: STOCKHOLDERS’ EQUITY Stock Options Under the 2003 Stock Incentive Plan, as amended (the "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, 2019, there were 100,000 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 2019, the Company granted options to acquire 35,000 shares to employees exercisable at prices from $2.47 to $2.55 and options for 20,000 shares to a member of the board of directors with an exercise price of $3.00. The options vest annually over three years and expire in ten years. During fiscal 2018, the Company granted options to acquire 110,000 shares to an officer, at an exercise price of $1.06 and options for 20,000 shares exercisable at prices from $1.15 to $1.67 to employees of the Company. A summary of the activity of both plans for fiscal 2019 and fiscal 2018 is as follows: Weighted Average Stock Options Exercise Price $ Fair Value Outstanding Exercisable Outstanding Exercisable Vested Balance - February 29, 2017 839,600 395,405 $ 0.91 $ 0.89 $ 0.32 Granted 130,000 1.12 Exercised (57,500 ) (0.84 ) Cancelled — — Balance - February 28, 2018 912,100 425,400 $ 0.96 $ 0.92 $ 0.35 Granted 55,000 $ 2.66 Exercised (371,100 ) (0.96 ) Cancelled (8,000 ) (1.12 ) Balance - February 28, 2019 588,000 171,000 $ 1.10 $ 0.85 $ 0.34 The intrinsic value of the Company’s options exercised during fiscal 2019 and fiscal 2018 was $111,218 and $19,250, respectively. Information, at date of issuance, regarding stock option grants for fiscal 2019: Shares Weighted Average Exercise Price Weighted Average Fair Value Year ended February 28, 2019: Exercise price exceeds market price — — — Exercise price equals market price 55,000 $ 2.66 $ .90 Exercise price is less than market price — — — The aggregate intrinsic value of the Company’s outstanding options at February 28, 2019 and 2018 was $169,608 and $233,776, respectively. The following table summarizes information about stock options outstanding and exercisable at February 28, 2019: Weighted Average Number Remaining Life Exercise Number Outstanding in Years Price Exercisable Range of exercise prices: $0.61 95,000 3.69 $ 0.61 95,000 $0.91 to $0.97 243,500 7.34 $ 0.91 2,500 $1.05 26,000 4.98 $ 1.05 26,000 $1.06 110,000 8.22 $ 1.06 — $1.07 to $1.67 58,500 7.08 $ 1.27 47,500 $2.47 to $2.55 35,000 9.80 $ 2.50 — $3.00 20,000 9.71 $ 3.00 — Total Options: 588,000 171,000

Earnings Per Share

Earnings Per Share	12 Months Ended
	Feb. 28, 2019
Notes to Financial Statements
Earnings Per Share	NOTE 13: EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: February 28, 2019 2018 Numerator for basic and diluted earnings per share $ 161,587 $ 368,207 Denominator for basic earnings per share - weighted average 15,107,778 14,968,450 Effects of dilutive securities: Stock options for employees, directors and outside consultants 111,135 126,673 Denominator for diluted earnings per share 15,218,913 15,095,123 Basic Earnings Per Share – Weighted Average $ 0.01 $ 0.02 Diluted Earnings Per Share – Weighted Average $ 0.01 $ 0.02

Other Comprehensive Income (Los

Other Comprehensive Income (Loss)	12 Months Ended
	Feb. 28, 2019
Equity [Abstract]
Other Comprehensive Income (Loss)	NOTE 14: OTHER COMPREHENSIVE INCOME (LOSS) The Company adopted ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” as of March 1, 2018. Among other requirements, ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. As a result of the adoption of ASU 2016-01, the Company has reclassified the accumulated unrealized gains from Other Accumulated Comprehensive Income to Retained Earnings at March 1, 2018. For fiscal 2019, the unrealized loss on the marketable securities during the year has been disclosed as a separate line item on the Income Statement. For fiscal 2019, the net unrealized loss on the Company’s available-for-sale marketable securities was approximately $100,000. As of February 28, 2019, the unrealized gain on the Company’s available-for-sale marketable securities was approximately $1,000.

Other Income

Other Income	12 Months Ended
	Feb. 28, 2019
Other Income and Expenses [Abstract]
Other Income	NOTE 15: OTHER INCOME Included in other income is the net revenue related to the rental of the Company’s real estate. For fiscal 2019, the Company’s rental revenue was $84,000, expenses were $61,000 and the net profit was $23,000. For fiscal 2018, the Company’s rental revenue was $78,000, expenses were $59,000 and the net profit was $19,000.

Significant Customers and Forei

Significant Customers and Foreign Sales	12 Months Ended
	Feb. 28, 2019
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, 2019 2018 Asia Pacific (APAC) 3,659,000 2,464,000 Europe, Middle East, Asia (EMEA) 2,729,000 2,617,000 Latin America 1,172,000 1,112,000 $ 7,560,000 $ 6,193,000 During fiscal 2019 and fiscal 2018, sales to foreign customers accounted for approximately $7,560,000 and $6,193,000, or 65% and 56% respectively, of total revenues. One customer accounted for 14% of the Company’s sales for fiscal 2019.

Subsequent Events

Subsequent Events	12 Months Ended
	Feb. 28, 2019
Notes to Financial Statements
Subsequent Events	NOTE 17: SUBSEQUENT EVENTS The Company has evaluated subsequent events for disclosure purposes.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Feb. 28, 2019
Notes to Financial Statements
Advertising Expenses	Advertising Expenses -
Allowance for doubtful accounts	Allowance for doubtful accounts -
Cash and Cash Equivalents	Cash and Cash Equivalents -
Concentration of Credit Risk	Concentration of Credit Risk - The Company had one customer, which accounted for 8% of sales during fiscal 2018. Two customers accounted for 22% of the outstanding accounts receivables at February 28, 2018.
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, 2019 and 2018, respectively: Quoted Prices in Active Markets (Level 1) February 28, 2019 2018 Marketable Securities $ 2,365,706 $ 4,405,900 Marketable Securities include mutual funds, certificates of deposit and US Treasury securities, totaling $2,365,706 and $4,405,900 that are considered to be highly liquid and easily tradeable as of February 28, 2019 and 2018, 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.” As of February 28, 2019, certain of the Company’s marketable securities were in an unrealized gain position. Unrealized gains and 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 these unrealized gains or losses to be other than temporary. Net unrealized gains at February 28, 2019 are $1,422.
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 -
Marketable Securities	Marketable Securities
New Accounting Pronouncements	New Accounting Pronouncements In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is effective for all entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has evaluated the potential impact this standard may have on the consolidated financial statements, the fair value of the securities from the prior year has been reclassified to Retained Earnings from Other Accumulated Comprehensive Income. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either operating or financing, with such classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018, and early adoption is permitted. The adoption of ASU 2016-02 will have no material impact on the Company’s financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. ASU 2018-02 was issued to allow the reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effect resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017. The Tax Cuts and Jobs Act, among other things, reduced the corporate tax rate from 35% to 21%, which required the re-evaluation of any deferred tax assets and liabilities at the lowered tax rate which potentially could leave a disproportionate tax effect in accumulated other comprehensive income. ASU 2018-02 allows for the election to reclassify these stranded tax effects to retained earnings. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for public business entities for reporting periods for which financials statements have not yet been issued. The adoption of ASU 2018-02 will have no material impact on the Company’s financial statements. Other than ASU No. ASU 2016-01, ASU 2016-02 and ASU 2018-02 discussed above, all new accounting pronouncements issued but not yet effective have been deemed to be not applicable to the Company. Hence, the adoption of these new accounting pronouncements, once effective, is not expected to have an impact on the Company.
Product Warranty	Product Warranty
Reclassifications	Reclassifications –
Research and Product Development Expenses	Research and Product Development Expenses -
Shipping and Handling Costs	Shipping and Handling Costs –

Stock Based Compensation (Table

Stock Based Compensation (Tables)	12 Months Ended
	Feb. 28, 2019
Notes to Financial Statements
Weighted-average Black-Scholes assumptions	Fiscal Year Ended February 28, 2019 2018 Expected life 8 years 2-8 years Risk free interest rate 2.47% - 2.98% 1.79% - 2.32% Expected volatility 24.82% - 28.24% 12.65% - 22.24% Expected dividend yield 0% 0%

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Feb. 28, 2019
Inventories Tables Abstract
Inventories	February 28, 2019 2018 Raw materials and subassemblies $ 873,483 $ 673,969 Finished goods 571,640 395,410 Work in process 483,271 489,082 Total 1,928,394 1,558,461 Less: Allowance (270,378 ) (204,378 ) Net inventories $ 1,658,016 $ 1,354,083

Buildings, Equipment, Furnish_2

Buildings, Equipment, Furnishings and Leasehold Improvements (Tables)	12 Months Ended
	Feb. 28, 2019
Property, Plant and Equipment [Abstract]
Equipment, furnishings and leasehold improvements	February 28, February 28, 2019 2018 Buildings $ 2,250,000 $ 2,250,000 Laboratory equipment 1,140,821 1,082,051 Machinery and equipment 1,211,778 872,598 Leasehold improvements 473,560 413,529 Tradeshow and demonstration equipment 1,086,916 1,070,860 Furniture and fixtures 1,044,222 971,011 Totals 7,207,297 6,660,049 Less: Accumulated depreciation (4,672,818 ) (4,354,309 ) $ 2,534,479 $ 2,305,740

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Feb. 28, 2019
Payables and Accruals [Abstract]
Accrued expenses	February 28, 2019 2018 Accrued compensation $ 284,587 $ 362,405 Estimated warranty costs 62,500 64,050 Accrued commissions 100,114 194,934 Professional fees 65,049 64,928 Other accrued expenses 120,456 206,875 $ 632,706 $ 893,192

Long Term Debt (Tables)

Long Term Debt (Tables)	12 Months Ended
	Feb. 28, 2019
Long Term Debt - Long-term Debt Payables
Long-term debt	February 28, 2019 2018 Note payable, bank, collateralized by land and buildings, payable in monthly installments of principal and interest of $16,358 through January 2024 with an interest rate of 4.15% and a 10-year term. 870,531 1,026,651 Total long-term debt 870,531 1,026,651 Due within one year 162,816 156,119 Due after one year $ 707,715 $ 870,532
Long-term debt payables	Fiscal Year ending February 28, 2020 162,816 2021 169,716 2022 177,081 2023 184,677 2024 176,241 $ 870,531

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Feb. 28, 2019
Income Tax Disclosure [Abstract]
Income tax reconciliation	February 28, 2019 2018 Expected federal income tax $ 38,101 $ 156,421 State tax, net of federal 11,430 24,383 Research and development tax credits (19,588 ) (57,994 ) Under accrual of prior year state taxes — 40,793 Change in recapture tax rate from 39.3% to 27.3% — 15,343 Permanent timing difference 2,272 33,107 Change in valuation allowances (36,425 ) (159,300 ) Other adjustments 24,057 39,103 Income tax expense $ 19,847 $ 91,856
Deferred tax asset and liability components	February 28, 2019 2018 Deferred tax asset Inventory $ 74,000 $ 104,800 Allowance for accounts receivable 13,000 18,100 Accrued expenses and other 37,000 111,200 Research tax credits 208,000 208,300 Valuation allowance — (46,000 ) Deferred tax asset – Long Term 332,000 396,400 Deferred tax liability Intangible asset amortization (25,000 ) (25,000 ) Building and leasehold depreciation (346,000 ) (360,400 ) Deferred tax liability – Long Term $ (371,000 ) $ (385,400 )

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Feb. 28, 2019
Equity [Abstract]
Summary of stock options	Weighted Average Stock Options Exercise Price $ Fair Value Outstanding Exercisable Outstanding Exercisable Vested Balance - February 29, 2017 839,600 395,405 $ 0.91 $ 0.89 $ 0.32 Granted 130,000 1.12 Exercised (57,500 ) (0.84 ) Cancelled — — Balance - February 28, 2018 912,100 425,400 $ 0.96 $ 0.92 $ 0.35 Granted 55,000 $ 2.66 Exercised (371,100 ) (0.96 ) Cancelled (8,000 ) (1.12 ) Balance - February 28, 2019 588,000 171,000 $ 1.10 $ 0.85 $ 0.34
Stock option grants	Shares Weighted Average Exercise Price Weighted Average Fair Value Year ended February 28, 2019: Exercise price exceeds market price — — — Exercise price equals market price 55,000 $ 2.66 $ .90 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: $0.61 95,000 3.69 $ 0.61 95,000 $0.91 to $0.97 243,500 7.34 $ 0.91 2,500 $1.05 26,000 4.98 $ 1.05 26,000 $1.06 110,000 8.22 $ 1.06 — $1.07 to $1.67 58,500 7.08 $ 1.27 47,500 $2.47 to $2.55 35,000 9.80 $ 2.50 — $3.00 20,000 9.71 $ 3.00 — Total Options: 588,000 171,000

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Feb. 28, 2019
Earnings Per Share - Denominator For Calculation Of Diluted Earnings Per Share
Computation of basic and diluted earnings per share	February 28, 2019 2018 Numerator for basic and diluted earnings per share $ 161,587 $ 368,207 Denominator for basic earnings per share - weighted average 15,107,778 14,968,450 Effects of dilutive securities: Stock options for employees, directors and outside consultants 111,135 126,673 Denominator for diluted earnings per share 15,218,913 15,095,123 Basic Earnings Per Share – Weighted Average $ 0.01 $ 0.02 Diluted Earnings Per Share – Weighted Average $ 0.01 $ 0.02

Significant Customers and For_2

Significant Customers and Foreign Sales (Tables)	12 Months Ended
	Feb. 28, 2019
Segment Reporting [Abstract]
Export sales to customers located outside the United States	February 28, 2019 2018 Asia Pacific (APAC) 3,659,000 2,464,000 Europe, Middle East, Asia (EMEA) 2,729,000 2,617,000 Latin America 1,172,000 1,112,000 $ 7,560,000 $ 6,193,000

Significant Accounting Polici_3

Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($)	Feb. 28, 2019	Feb. 28, 2018
Marketable Securities	$ 2,365,706	$ 4,405,900
Quoted Prices in Active Markets (Level 1)
Marketable Securities	$ 2,365,706	$ 4,405,900

Significant Accounting Polici_4

Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Advertising expense	$ 246,681	$ 280,348
Bad debt expense	$ 0	$ 0
Concentration of Credit Risk	The Company had one customer, which accounted for 14% of sales during fiscal 2019. Two customers accounted for 41% of the outstanding accounts receivables at February 28, 2019.	The Company had one customer, which accounted for 8% of sales during fiscal 2018. Two customers accounted for 22% of the outstanding accounts receivables at February 28, 2018
Marketable securities including mutual funds	$ 2,365,706	$ 4,405,900
Net unrealized gains	1,422
Accumulated amortization of patents	160,433	$ 149,654
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
Buildings
Annual Amortization Expense of Intangible Assets For the Next Five Years
Property, plant and equipment, estimated useful lives	40 Years
Domestic Patents
Useful life of intangible assets	17 years
Foreign Patents
Useful life of intangible assets	12 years

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative)	12 Months Ended
	Feb. 28, 2019USD ($)
Proceeds in cash deposits	$ 1,150,000
Letter of Credit
Letter of credit	$ 808,000
Letter of credit, collateral description	The Company was utilizing $808,000 of its available credit line to collateralize these letters of credit.

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted-average Black-Scholes assumptions (Details)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Expected life (in years)	8 years
Risk free interest rate, minimum	2.47%	1.79%
Risk free interest rate, maximum	2.98%	2.32%
Expected volatility, minimum	24.82%	12.65%
Expected volatility, maximum	28.24%	22.24%
Expected dividend yield	0.00%	0.00%
Employee Stock Options | Minimum
Expected life (in years)		2 years
Employee Stock Options | Maximum
Expected life (in years)		8 years

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Options granted	55,000	130,000
Options, exercisable price	$ 2.66	$ 1.12
Additional stock-based compensation expense as a result of applying ASC 718	$ 30,548	$ 41,728
Officer
Options granted		110,000
Options, exercisable price		$ 1.06
Employee Stock Options
Options granted	35,000	20,000
Options, vesting period	3 years
Options, expiration period	10 years
Weighted average grant date fair value, per share	$ .90	$ 0.18
Employee Stock Options | Minimum
Options, exercisable price	2.47	1.15
Employee Stock Options | Maximum
Options, exercisable price	$ 2.55	$ 1.67
Member of Board of Directors
Options granted	20,000
Options, exercisable price	$ 3
Options, vesting period	3 years
Options, expiration period	10 years
Weighted average grant date fair value, per share	$ .90

Inventories (Details)

Inventories (Details) - USD ($)	Feb. 28, 2019	Feb. 28, 2018
Inventories Tables Abstract
Raw materials	$ 873,483	$ 673,969
Finished goods	571,640	395,410
Work in process	483,271	489,082
Total	1,928,394	1,558,461
Less: Allowance	270,378	204,378
Net inventories	$ 1,658,016	$ 1,354,083

Buildings, Equipment, Furnish_3

Buildings, Equipment, Furnishings and Leasehold Improvements - Equipment, furnishings and leasehold improvements (Details) - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Equipment, furnishings and leasehold improvements	$ 7,207,297	$ 6,660,049
Less: accumulated decpreciation	4,672,818	4,354,309
Equipment, furnishings and leasehold improvements, net	2,534,479	2,305,740
Depreciation Expense	324,381	382,777
Buildings
Equipment, furnishings and leasehold improvements	2,250,000	2,250,000
Laboratory Equipment
Equipment, furnishings and leasehold improvements	1,140,821	1,082,051
Machinery and Equipment
Equipment, furnishings and leasehold improvements	1,211,778	872,598
Leasehold improvements
Equipment, furnishings and leasehold improvements	473,560	413,529
Tradeshow and Demonstration Equipment
Equipment, furnishings and leasehold improvements	1,086,913	1,070,860
Furniture and Fixtures
Equipment, furnishings and leasehold improvements	$ 1,044,222	$ 971,011

Accrued expenses (Details)

Accrued expenses (Details) - USD ($)	Feb. 28, 2019	Feb. 28, 2018
Payables and Accruals [Abstract]
Accrued compensation	$ 284,587	$ 362,405
Estimated warranty costs	62,500	64,050
Accrued commissions	100,114	194,934
Professional fees	65,049	64,928
Other accrued expenses	120,456	206,875
Total accrued expenses	$ 632,706	$ 893,192

Revolving Line of Credit (Detai

Revolving Line of Credit (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Letter of Credit
Line of credit	$ 808,000
Line of credit, maturity date	Feb. 29, 2020
Unused credit line	$ 692,000
Revolving Line of Credit
Line of credit description	The revolving credit line is collateralized by the Company's accounts receivable and inventory. The revolving credit line 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.	The revolving credit line is collateralized by the Company's accounts receivable and inventory. The revolving credit line 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.
Line of credit	$ 1,500,000	$ 1,500,000
Prime rate	5.50%	4.50%

Long-term debt (Details)

Long-term debt (Details) - USD ($)	Feb. 28, 2019	Feb. 28, 2018
Long-term debt	$ 870,531	$ 1,026,651
Due within one year	162,816	156,119
Due after one year	707,715	870,532
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	$ 870,531	$ 1,026,651

Long Term Debt - Long-term debt

Long Term Debt - Long-term debt payables (Details) - USD ($)	Feb. 28, 2019	Feb. 28, 2018
Fiscal Year ending February 28,
2020	$ 162,816
2021	169,716
2022	177,081
2023	184,677
2024	176,241
Total	$ 870,531	$ 1,026,651

Income Taxes - Income tax recon

Income Taxes - Income tax reconciliation (Details) - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Income tax (benefit) reconciliation:
Expected federal income tax	$ 38,101	$ 156,421
State tax, net of federal	11,430	24,383
Research and development tax credits	(19,588)	(57,994)
Under (Overaccrual) of prior year state taxes		40,793
Change in recapture tax rate from 39.3% to 27.3%		15,343
Permanent timing difference	2,272	33,107
Change in valuation allowances	(36,425)	(159,300)
Other adjustments	24,057	39,103
Income tax expense (benefit)	$ 19,847	$ 91,856

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax asset and liability components (Details) - USD ($)	Feb. 28, 2019	Feb. 28, 2018
Deferred tax asset
Inventory	$ 74,000	$ 186,800
Allowance for accounts receivable	13,000	18,100
Accrued expenses and other	37,000	111,200
Research tax credits	208,000	208,300
Valuation allowance		(4,600)
Deferred tax asset - Long Term	332,000	396,400
Deferred tax liability
Intangible asset amortization	(25,000)	(25,000)
Building and leasehold depreciation	(346,000)	(360,400)
Deferred tax liability - Long Term	$ (371,000)	$ (385,400)

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Income Tax Disclosure [Abstract]
Federal income tax rate	21.00%	34.00%
Research and development tax credits	$ 208,000	$ 208,300

Stockholders' Equity - Summary

Stockholders' Equity - Summary of stock options (Details) - $ / shares	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Shares
Outstanding at beginning of period (in shares)	912,100	839,600
Exercisable at beginning of period (in shares)	425,400	395,405
Granted (in shares)	55,000	130,000
Exercised (in shares)	(371,100)	(57,500)
Cancelled (in shares)	(8,000)
Outstanding at end of period (in shares)	588,000	912,100
Exercisable at end of period (in shares)	171,000	425,400
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 0.96	$ 0.91
Granted (in dollars per share)	2.66	1.12
Exercised (in dollars per share)	(0.96)	(0.84)
Cancelled (in dollars per share)	(1.12)
Outstanding at end of period (in dollars per share)	1.10	0.96
Exercisable at beginning of period (in dollars per share)	0.92	0.89
Exercisable at end of period (in dollars per share)	0.85	0.92
Fair value vested at beginning of period (in dollars per share)	0.35	0.32
Fair value vested at end of period (in dollars per share)	$ 0.34	$ 0.35

Stockholders' Equity - Stock op

Stockholders' Equity - Stock option grants (Details) - $ / shares	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Information, at date of issuance, regarding stock option grants
Weighted Average Exercise Price	$ 2.66	$ 1.12
Exercise Price Equals Market Price
Information, at date of issuance, regarding stock option grants
Shares	55,000
Weighted Average Exercise Price	$ 2.66
Weighted Average Fair Value	$ .90

Stockholders' Equity - Stock _2

Stockholders' Equity - Stock options outstanding and exercisable (Details) - $ / shares	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2017
Number Outstanding	588,000	912,100	839,600
Weighted Average Exercise Price	$ 0.85	$ 0.92	$ 0.89
Number Exercisable	171,000	425,400	395,405
Employee Stock Options | Exercise Price Range $0.61
Range of exercise prices	0.61
Number Outstanding	95,000
Weighted-Average Remaining Life in Years	3 years 9 months
Weighted Average Exercise Price	$ 0.61
Number Exercisable	95,000
Employee Stock Options | Exercise Price Range $0.91 to $0.97
Range of exercise prices, low end (in dollars per share)	$ 0.91
Range of exercise prices, high end (in dollars per share)	$ 0.97
Number Outstanding	243,500
Weighted-Average Remaining Life in Years	7 years 4 months
Weighted Average Exercise Price	$ 0.91
Number Exercisable	2,500
Employee Stock Options | Exercise Price Range $1.05
Range of exercise prices	1.05
Number Outstanding	26,000
Weighted-Average Remaining Life in Years	4 years 11 months
Weighted Average Exercise Price	$ 1.05
Number Exercisable	26,000
Employee Stock Options | Exercise Price Range $1.06
Range of exercise prices	1.06
Number Outstanding	110,000
Weighted-Average Remaining Life in Years	8 years 3 months
Weighted Average Exercise Price	$ 1.06
Number Exercisable
Employee Stock Options | Exercise Price Range $1.07 to $1.67
Range of exercise prices, low end (in dollars per share)	$ 1.07
Range of exercise prices, high end (in dollars per share)	$ 1.67
Number Outstanding	58,500
Weighted-Average Remaining Life in Years	7 years 1 month
Weighted Average Exercise Price	$ 1.27
Number Exercisable	47,500
Employee Stock Options | Exercise Price Range $2.47 to $2.55
Range of exercise prices, low end (in dollars per share)	$ 2.47
Range of exercise prices, high end (in dollars per share)	$ 2.55
Number Outstanding	35,000
Weighted-Average Remaining Life in Years	9 years 10 months
Weighted Average Exercise Price	$ 2.50
Number Exercisable
Employee Stock Options | Exercise Price Range $3.00
Range of exercise prices	3
Number Outstanding	20,000
Weighted-Average Remaining Life in Years	9 years 9 months
Weighted Average Exercise Price	$ 3

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Stock option shares granted	55,000	130,000
Weighted Average Exercise Price	$ 2.66	$ 1.12
Iintrinsic value of the Company's options exercised	$ 111,218	$ 19,250
Aggregate intrinsic value of the Company's outstanding options	$ 169,608	$ 233,776
Officer
Stock option shares granted		110,000
Weighted Average Exercise Price		$ 1.06
Employee Stock Options
Stock option shares granted	35,000	20,000
Option vesting description	Options vest annually over three years
Expiration of options	Feb. 28, 2029
Employee Stock Options | Minimum
Weighted Average Exercise Price	$ 2.47	$ 1.15
Employee Stock Options | Maximum
Weighted Average Exercise Price	$ 2.55	$ 1.67
Member of Board of Directors
Stock option shares granted	20,000
Weighted Average Exercise Price	$ 3
Option vesting description	Options vest annually over three years
Expiration of options	Feb. 28, 2029
2013 Stock Incentive Plan
Stock options shares available for purchase	2,500,000
Stock options outstanding	488,000
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.
Expiration of options	Feb. 28, 2023
2003 Stock Incentive Plan
Stock options shares available for purchase	1,500,000
Stock options outstanding	100,000

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, 2019	Feb. 28, 2018
Earnings Per Share - Denominator For Calculation Of Diluted Earnings Per Share
Numerator for basic and diluted earnings per share	$ 161,587	$ 368,207
Denominator for basic earnings per share - weighted average	15,107,778	14,968,450
Effects of dilutive securities:
Stock options for employees, directors and outside consultants	111,135	126,673
Denominator for diluted earnings per share	15,218,913	15,095,123
Basic Earnings Per Share - Weighted Average	$ 0.01	$ 0.02
Diluted Earnings Per Share - Weighted Average	$ 0.01	$ 0.02

Other Comprehensive Income (L_2

Other Comprehensive Income (Loss) (Details Narrative)	12 Months Ended
	Feb. 28, 2019USD ($)
Other Comprehensive Income Loss Details Narrative Abstract
Unrealized loss on available-for-sale securities, during the period, approximate	$ (100,000)
Unrealized gain on available-for-sale securities, approximate	$ 1,000

Other Income (Details Narrative

Other Income (Details Narrative) - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Net rental revenue	$ 161,587	$ 368,207
Other Income
Rental revenue	84,000	78,000
Rental expenses	61,000	59,000
Net rental revenue	$ 23,000	$ 19,000

Significant Customers and For_3

Significant Customers and Foreign Sales - Export sales to customers located outside the United States (Details) - USD ($)	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Export sales to customers located outside the United States
Total sales	$ 7,560,000	$ 6,193,000
Significant customers and foreign sales
Percent of total revenues	65.00%	56.00%
One Customer
Significant customers and foreign sales
Percent of total revenues	14.00%
Asia Pacific
Export sales to customers located outside the United States
Total sales	$ 3,659,000	$ 2,464,000
Europe, Middle East, Asia
Export sales to customers located outside the United States
Total sales	2,729,000	2,617,000
Latin America
Export sales to customers located outside the United States
Total sales	$ 1,172,000	$ 1,112,000