Sono-Tek (SOTK) 10-K 29 May 20 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Feb. 29, 2020	May 20, 2020	Aug. 31, 2019
Document And Entity Information
Entity Registrant Name	SONO TEK CORP
Entity Central Index Key	0000806172
Document Type	10-K
Document Period End Date	Feb. 29, 2020
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			$ 34,875,354
Entity Common Stock, Shares Outstanding		15,422,985
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020
Interactive Data Current	Yes
State of Incorporation	NY
File Number	000-16035

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Feb. 29, 2020	Feb. 28, 2019
Current Assets:
Cash and cash equivalents	$ 3,659,551	$ 3,144,123
Marketable Securities	4,219,240	2,365,706
Accounts receivable (less allowance of $71,000 and $46,000, respectively)	929,701	1,397,891
Inventories, net	2,381,891	1,658,016
Prepaid expenses and other current assets	153,698	395,005
Total current assets	11,344,081	8,960,741
Land	250,000	250,000
Buildings, net	1,654,061	1,731,547
Equipment, furnishings and leasehold improvements, net	1,212,578	802,932
Intangible assets, net	106,291	122,941
Deferred tax asset	176,314	332,017
TOTAL ASSETS	14,743,325	12,200,178
Current Liabilities:
Accounts payable	668,721	585,694
Accrued expenses	1,613,409	632,706
Customer deposits	1,648,690	1,149,558
Current maturities of long term debt	169,716	162,816
Income taxes payable	70,621	6,272
Total current liabilities	4,171,157	2,537,046
Deferred tax liability	251,761	370,757
Long term debt, less current maturities	538,000	707,715
Total liabilities	4,960,918	3,615,518
Commitments and Contingencies (Note 10)
Stockholders' Equity
Common stock	153,482	151,976
Additional paid-in capital	9,018,406	8,929,607
Accumulated earnings (deficit)	610,519	(496,923)
Total stockholders' equity	9,782,407	8,584,660
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 14,743,325	$ 12,200,178

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Feb. 29, 2020	Feb. 28, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 71,000	$ 46,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	25,000,000	25,000,000
Common stock, issued shares	15,348,180	15,197,563
Common stock, outstanding shares	15,348,180	15,197,563

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Income Statement [Abstract]
Net Sales	$ 15,354,619	$ 11,609,599
Cost of Goods Sold	8,041,378	6,361,353
Gross Profit	7,313,241	5,248,246
Operating Expenses
Research and product development	1,427,543	1,324,766
Marketing and selling	3,403,133	2,686,382
General and administrative	1,367,073	1,154,611
Total Operating Expenses	6,197,749	5,165,759
Operating Income (Loss)	1,115,492	82,487
Other Income (Expense):
Interest Expense	(33,038)	(39,977)
Interest and Dividend Income	101,592	136,677
Realized gain on sale of marketable securities		73,699
Net unrealized loss on marketable securities		(100,184)
Other Income	29,401	28,732
Income Before Income Taxes	1,213,447	181,434
Income Tax (Benefit) Expense	106,005	19,847
Net Income	$ 1,107,442	$ 161,587
Basic Earnings Per Share	$ 0.07	$ 0.01
Diluted Earnings Per Share	$ 0.07	$ 0.01
Weighted Average Shares - Basic	15,302,367	15,107,778
Weighted Average Shares - Diluted	15,359,088	15,218,913

Consolidated Statements of Stoc

Consolidated Statements of Stockholderss Equity - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated (Deficit) Earnings	Total
Beginning balance (shares) at Feb. 28, 2018	14,986,367
Beginning 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
Exercise of stock options (shares)	150,617
Exercise of stock options	$ 1,506	(1,506)
Stock based compensation expense		90,305			90,305
Net Income				1,107,442	1,107,442
Ending balance (shares) at Feb. 29, 2020	15,348,180
Ending balance at Feb. 29, 2020	$ 153,482	$ 9,018,406		$ 610,519	$ 9,782,407

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 1,107,442	$ 161,587
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	406,731	332,147
Stock based compensation expense	90,305	30,548
Bad debt expense	25,000	0
Inventory reserve	(77,098)	66,000
Unrealized loss on marketable securities		100,184
Deferred tax expense	36,707	49,743
(Increase) Decrease in:
Accounts receivable	443,190	(623,113)
Inventories	(646,777)	(369,933)
Prepaid expenses and other assets	241,307	(255,599)
(Decrease) Increase in:
Accounts payable and accrued expenses	1,063,730	(327,655)
Customer deposits	499,132	805,460
Income taxes payable	64,349	(78,349)
Net Cash (Used In) Provided by Operating Activities	3,254,018	(108,980)
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of equipment, furnishings and leasehold improvements	(722,241)	(547,251)
Sale of marketable securities		1,940,010
Purchase of marketable securities	(1,853,534)
Net Cash Provided By (Used In) Investing Activities	(2,575,775)	1,392,759
CASH FLOW FROM FINANCING ACTIVITIES:
Repayment of long term debt	(162,815)	(156,120)
Net Cash (Used In) Financing Activities	(162,815)	(156,120)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	515,428	1,127,659
CASH AND CASH EQUIVALENTS
Beginning of year	3,144,123	2,016,464
End of year	3,659,551	3,144,123
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid	33,038	39,977
Income Taxes Paid	$ 4,948	$ 28,178

Business Description

Business Description	12 Months Ended
	Feb. 29, 2020
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. 29, 2020
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 14% of sales during fiscal 2019. Two customers accounted for 41% of the outstanding accounts receivables at February 28, 2019. 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 29, 2020 and February 28, 2019, respectively: Level 1 Level 2 Level 3 Total Marketable Securities – February 29, 2020 $ 3,565,629 $ 653,611 $ — $ 4,219,240 Marketable Securities – February 28, 2019 $ 2,365,706 — $ — $ 2,365,706 Marketable Securities include mutual funds, certificates of deposit and US Treasury securities, totaling $4,219,240 and $2,365,706 that are considered to be highly liquid and easily tradeable as of February 29, 2020 and February 28, 2019, respectively. Mutual funds & US Treasury securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 and certificates of deposit are classified as Level 2 within the Company’s fair value hierarchy. The Company’s marketable securities are considered to be available-for-sale investments as defined under ASC 320 “Investments – Debt and Equity Securities.” Income Taxes Intangible Assets - Inventories - Land and Buildings – Long-Lived Assets - Management Estimates - Marketable Securities New Accounting Pronouncements 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 had no material impact on the Company’s financial statements. In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes Other than Accounting Standards Update (“ASU”) ASU 2016-02, ASU 2018-02 and ASU 2019-12 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. 29, 2020
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 29, 2020, the Company had received $1,649,000 in cash deposits, and had issued Letters of Credit in the amount of $701,000 to secure these cash deposits. At February 29, 2020, the Company was utilizing $701,000 of its available credit line to collateralize these letters of credit. The Company’s sales revenue, by product line is as follows: Twelve Months Ended February 29, February 28, 2020 % of total 2019 % of total Fluxing Systems $ 906,000 6% $ 1,176,000 10% Integrated Coating Systems 3,599,000 23% 1,449,000 13% Multi-Axis Coating Systems 6,866,000 45% 4,906,000 42% OEM Systems 1,384,000 9% 1,891,000 16% Other 2,600,000 17% 2,188,000 19% TOTAL $ 15,355,000 $ 11,610,000

Stock Based Compensation

Stock Based Compensation	12 Months Ended
	Feb. 29, 2020
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 2020, the Company granted options to acquire 17,500 shares to employees exercisable at prices ranging from $2.10 to $2.65, options to acquire 20,000 shares to the non-employee members of the board of directors with an exercise price of $2.65 and options for 200,000 shares to an officer and director exercisable at prices of ranging from $2.45 to $2.65. The options granted to employees and directors vest over three years and expire in ten years. The options granted to the officer vested upon grant and expire in ten years. The options granted by the Company during fiscal 2020 had a combined weighted average grant date fair value of $0.34 per share. 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. 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 29, February 28, Expected life 1 - 8 years 8 years Risk free interest rate 1.58% - 2.05% 2.47% - 2.98% Expected volatility 27.46% - 32.24% 24.82% - 28.24% 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 29, 2020 and February 28, 2019, net income and earnings per share reflect the actual deduction for stock-based compensation expense. The impact of applying ASC 718 was $90,305 and $30,548 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. 29, 2020
Notes to Financial Statements
Inventories	NOTE 5: INVENTORIES Inventories consist of the following: February 29, February 28, Raw materials and subassemblies $ 967,089 $ 873,483 Finished goods 752,999 571,640 Work in process 855,083 483,271 Total 2,575,171 1,928,394 Less: Allowance (193,280 ) (270,378 ) Net inventories $ 2,381,891 $ 1,658,016

Buildings, Equipment, Furnishin

Buildings, Equipment, Furnishings and Leasehold Improvements	12 Months Ended
	Feb. 29, 2020
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 29, February 28, 2020 2019 Buildings $ 2,250,000 $ 2,250,000 Laboratory equipment 1,418,903 1,140,821 Machinery and equipment 1,400,419 1,211,778 Leasehold improvements 632,021 473,560 Tradeshow and demonstration equipment 1,139,693 1,086,916 Furniture and fixtures 1,088,502 1,044,222 Totals 7,929,538 7,207,297 Less: Accumulated depreciation (5,062,899 ) (4,672,818 ) $ 2,866,639 $ 2,534,479 Depreciation expense for the years ended February 29, 2020 and February 28, 2019 was $390,082 and $382,777, respectively.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Feb. 29, 2020
Payables and Accruals [Abstract]
Accrued Expenses	NOTE 7: ACCRUED EXPENSES Accrued expenses consist of the following: February 29, February 28, Accrued compensation $ 585,875 $ 284,587 Estimated warranty costs 339,275 62,500 Accrued commissions 332,745 100,114 Professional fees 74,492 65,049 Other accrued expenses 281,022 120,456 $ 1,613,409 $ 632,706

Revolving Line of Credit

Revolving Line of Credit	12 Months Ended
	Feb. 29, 2020
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 4.75% at February 29, 2020 and 5.50% at February 28, 2019. 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 29, 2020, $701,000 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 29, 2020, there were no outstanding borrowings under the line of credit and the unused portion of the credit line was $799,000 as of February 29, 2020.

Long Term Debt

Long Term Debt	12 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Long Term Debt	NOTE 9: LONG-TERM DEBT Long-term debt consists of the following: February 29, 2020 February 28, 2019 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. 707,716 870,531 Total long-term debt 707,716 870,531 Due within one year 169,716 162,816 Due after one year $ 538,000 $ 707,715 Long-term debt is payable as follows: Fiscal Year ending February 28, 2021 169,716 2022 177,081 2023 184,677 2024 176,242 $ 707,716

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Feb. 29, 2020
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 29, 2020.

Income Taxes

Income Taxes	12 Months Ended
	Feb. 29, 2020
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 29, February 28, Expected federal income tax $ 254,898 $ 38,101 State tax, net of federal 19,758 11,430 Research and development tax credits (213,521 ) (19,588 ) Permanent timing difference 29,632 2,272 Change in valuation allowances 15,238 (36,425 ) Other adjustments — 24,057 Income tax expense $ 106,005 $ 19,847 The deferred tax asset and liability are comprised of the following: February 29, February 28, Deferred tax asset Inventory $ 41,000 $ 74,000 Allowance for accounts receivable 15,000 13,000 Accrued expenses and other 94,000 37,000 Research tax credits 27,000 208,000 Deferred tax asset – Long Term 177,000 332,000 Deferred tax liability Intangible asset amortization — (25,000 ) Building and leasehold depreciation (252,000 ) (346,000 ) Deferred tax liability – Long Term $ (252,000 ) $ (371,000 ) 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. Tax returns for the prior three years are subject to examination by the IRS.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Feb. 29, 2020
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 29, 2020, there were 50,000 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 2020, the Company granted options to acquire 17,500 shares to employees exercisable at prices ranging from $2.10 to $2.65, options to acquire 20,000 shares to the non-employee members of the board of directors with an exercise price of $2.65 and options for 200,000 shares to an officer and director exercisable at prices of ranging from $2.45 to $2.65. The options granted to employees and directors vest over three years and expire in ten years. The options granted to the officer vested upon grant and expire in ten years. 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. A summary of the activity of both plans for fiscal 2020 and fiscal 2019 is as follows: Weighted Average Stock Options Exercise Price $ Fair Value Outstanding Exercisable Outstanding Exercisable Vested 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 Granted 237,500 $ 2.55 Exercised (231,333 ) (0.88 ) Cancelled (2,500 ) (1.17 ) Balance - February 29, 2020 591,667 339,250 $ 1.77 $ 2.03 $ 0.35 The intrinsic value of the Company’s options exercised during fiscal 2020 and fiscal 2019 was $44,082 and $111,218, respectively. Information, at date of issuance, regarding stock option grants for fiscal 2020: Shares Weighted Weighted Year ended February 29, 2020: Exercise price exceeds market price — — — Exercise price equals market price 237,500 $ 2.55 $ .34 Exercise price is less than market price — — — The aggregate intrinsic value of the Company’s outstanding options at February 29, 2020 and February 28, 2019 was $150,752 and $169,608, respectively. The following table summarizes information about stock options outstanding and exercisable at February 29, 2020: Weighted Average Number Remaining Life Exercise Number Outstanding in Years Price Exercisable Range of exercise prices: $0.61 45,000 2.69 $ 0.61 45,000 $0.91 to $0.97 109,834 6.26 $ 0.91 2,500 $1.05 22,500 3.97 $ 1.05 22,500 $1.06 73,333 7.21 $ 1.06 — $1.15 to $1.67 48,500 6.15 $ 1.30 44,500 $2.10 to $2.65 272,500 9.33 $ 2.54 215,750 $3.00 20,000 8.71 $ 3.00 9,000 Total Options: 591,667 339,250

Earnings Per Share

Earnings Per Share	12 Months Ended
	Feb. 29, 2020
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 29, February 28, Numerator for basic and diluted earnings per share $ 1,107,442 $ 161,587 Denominator for basic earnings per share - weighted average 15,302,367 15,107,778 Effects of dilutive securities: Stock options for employees, directors and outside consultants 56,721 111,135 Denominator for diluted earnings per share 15,359,088 15,218,913 Basic Earnings Per Share – Weighted Average $ 0.07 $ 0.01 Diluted Earnings Per Share – Weighted Average $ 0.07 $ 0.01

Other Comprehensive Income (Los

Other Comprehensive Income (Loss)	12 Months Ended
	Feb. 29, 2020
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. 29, 2020
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 2020, the Company’s rental revenue was $85,000, expenses were $56,000 and the net profit was $29,000. For fiscal 2019, the Company’s rental revenue was $84,000, expenses were $61,000 and the net profit was $23,000.

Significant Customers and Forei

Significant Customers and Foreign Sales	12 Months Ended
	Feb. 29, 2020
Segment Reporting [Abstract]
Significant Customers and Foreign Sales	NOTE 16: SIGNIFICANT CUSTOMERS AND FOREIGN SALES Export sales to customers located outside the United States and Canada were approximately as follows: February 29, February 28, Asia Pacific (APAC) 4,817,000 3,659,000 Europe, Middle East, Asia (EMEA) 4,512,000 2,729,000 Latin America 1,520,000 1,172,000 $ 10,849,000 $ 7,560,000 During fiscal 2020 and fiscal 2019, sales to foreign customers accounted for approximately $10,849,000 and $7,560,000, or 71% and 65% respectively, of total revenues. Three customers accounted for 30% of sales during fiscal 2020. One customer accounted for 14% of the Company’s sales for fiscal 2019.

Subsequent Events

Subsequent Events	12 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Subsequent Events	NOTE 17: SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this Annual Report on Form 10-K, and determined that there have been no events that have occurred that would require adjustments to its disclosures in the consolidated financial statements except for the following items: Option Exercises In April 2020, 117,333 options were exercised on a cashless basis into 74,805 shares of common stock. Paycheck Protection Program Loan On April 17, 2020, the Company entered into a loan transaction pursuant to which it received proceeds of $1,001,640 (the “PPP Loan”) on May 8, 2020 under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying companies and is administered by the U.S. Small Business Administration (the “SBA”). The PPL Loan is evidenced by a promissory note, dated as of April 17, 2020 (the “Note”), between the Company and M&T Bank (the “Lender”). The Note has a two-year term, bears interest at the rate of 1.0% per annum, and may be prepaid at any time without payment of any premium. No payments of principal or interest are due during the six-month period beginning on the date of the Note (the “Deferral Period”). Beginning on the seventh month following the date of the Note, the Company is required to make 18 monthly payments of principal and interest in the amount of $56,088.24. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP, with such forgiveness to be determined, subject to limitations, based on the use of the loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. However, at least 75 percent of the PPP Loan proceeds must be used for eligible payroll costs. The terms of any forgiveness may also be subject to further requirements in any regulations and guidelines the SBA may adopt. In order to obtain forgiveness of the PPP Loan, the Company must submit a request and provide satisfactory documentation regarding its compliance with applicable requirements. While the Company currently believes that its use of the Note proceeds will meet the conditions for forgiveness under the PPP, no assurance is provided that the Company will obtain forgiveness of the Note in whole or in part. The Company must repay any unforgiven principal amount of the Note, with interest, on a monthly basis following the Deferral Period. The Note contains customary events of default relating to, among other things, payment defaults and breaches of representations, warranties or covenants. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, or filing suit and obtaining judgment against the Company. Impact of Covid 19 In December 2019, the COVID-19 outbreak occurred in China and has since spread to other parts of the world. On March 11, 2020, the World Health Organization declared COVID-19 to be a global pandemic and recommended containment and mitigation measures. On March 13, 2020, the United States declared a national emergency concerning the outbreak. Along with these declarations, extraordinary and wide-ranging actions have been taken by international, federal, state, and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions across the United States and the world. These actions include quarantines, social distancing and “stay-at-home” orders, travel restrictions, mandatory business closures and other mandates that have substantially restricted individuals’ daily activities and curtailed or ceased many businesses’ normal operations. In response to the pandemic and these actions, the Company began implementing changes in its business in March 2020 to protect its employees and customers: · The Company implemented social distancing and other health and safety protocols. · The Company has flexed the workforce in its manufacturing operations based on business needs, including the addition of a second shift and · The Company has enhanced cleaning and sanitary procedures. · The Company temporarily eliminated domestic and international travel. · The Company restricted access to its facilities to only employees and essential non-employees with strict protocols. While all of these measures have been necessary and appropriate, they may result in additional costs and may adversely impact the Company’s business and financial performance. As the Company’s response to the pandemic evolves, the Company may incur additional costs and will potentially experience adverse impacts to its business, each of which may be significant. In addition, an extended period of remote work arrangements could impair the Company’s ability to effectively manage its business, and introduce additional operational risks, including, but not limited to, cybersecurity risks and increased vulnerability to security breaches, cyber-attacks, computer viruses, ransomware, or other similar events and intrusions. The Company may COVID-19 has also impacted various aspects of the supply chain as the Company’s suppliers experience similar business disruptions due to operating restrictions from government mandates. The Company continues to monitor procurement of raw materials and components used in the manufacturing, distribution and sale of our products, but continued disruptions in the supply chain due to COVID-19 may cause difficulty in sourcing materials or unexpected shortages or delays in delivery of raw materials and components, and may result in increased costs in our supply chain. The Company has implemented plans to reduce spending in certain areas of its business, including reductions or delays in capital expenditures, reduced trade show participation costs, reduced travel expenditures and may need to take additional actions to reduce spending in the future. The Company is closely monitoring and assessing the impact of the pandemic on its business. The extent of the impact on the Company’s results of operations, cash flow, liquidity, and financial performance, as well as the Company’s ability to execute near- and long-term business strategies and initiatives, will depend on numerous evolving factors and future developments, which are highly uncertain and cannot be reasonably predicted. Given the inherent uncertainty surrounding COVID-19, the Company expects the pandemic may continue to have an adverse impact on the Company’s business in the near term. Should these conditions persist for a prolonged period, the COVID-19 pandemic, including any of the above factors and others that are currently unknown, may have a material adverse effect on the Company’s business, results of operations, cash flow, liquidity, and financial condition.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Feb. 29, 2020
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 14% of sales during fiscal 2019. Two customers accounted for 41% of the outstanding accounts receivables at February 28, 2019.
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 29, 2020 and February 28, 2019, respectively: Level 1 Level 2 Level 3 Total Marketable Securities – February 29, 2020 $ 3,565,629 $ 653,611 $ — $ 4,219,240 Marketable Securities – February 28, 2019 $ 2,365,706 — $ — $ 2,365,706 Marketable Securities include mutual funds, certificates of deposit and US Treasury securities, totaling $4,219,240 and $2,365,706 that are considered to be highly liquid and easily tradeable as of February 29, 2020 and February 28, 2019, respectively. Mutual funds & US Treasury securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 and certificates of deposit are classified as Level 2 within the Company’s fair value hierarchy. The Company’s marketable securities are considered to be available-for-sale investments as defined under ASC 320 “Investments – Debt and Equity Securities.”
Income Taxes	Income Taxes
Intangible Assets	Intangible Assets -
Inventories	Inventories -
Land and Buildings	Land and Buildings –
Long-Lived Assets	Long-Lived Assets -
Management Estimates	Management Estimates -
Marketable Securities	Marketable Securities
New Accounting Pronouncements	New Accounting Pronouncements 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 had no material impact on the Company’s financial statements. In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes Other than Accounting Standards Update (“ASU”) ASU 2016-02, ASU 2018-02 and ASU 2019-12 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 –

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Fair values of financial assets of the Company	Level 1 Level 2 Level 3 Total Marketable Securities – February 29, 2020 $ 3,565,629 $ 653,611 $ — $ 4,219,240 Marketable Securities – February 28, 2019 $ 2,365,706 — $ — $ 2,365,706

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
	Feb. 29, 2020
Revenue Recognition Tables Abstract
Sales revenue by product line	Twelve Months Ended February 29, February 28, 2020 % of total 2019 % of total Fluxing Systems $ 906,000 6% $ 1,176,000 10% Integrated Coating Systems 3,599,000 23% 1,449,000 13% Multi-Axis Coating Systems 6,866,000 45% 4,906,000 42% OEM Systems 1,384,000 9% 1,891,000 16% Other 2,600,000 17% 2,188,000 19% TOTAL $ 15,355,000 $ 11,610,000

Stock Based Compensation (Table

Stock Based Compensation (Tables)	12 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Weighted-average Black-Scholes assumptions	Fiscal Year Ended February 29, February 28, Expected life 1 - 8 years 8 years Risk free interest rate 1.58% - 2.05% 2.47% - 2.98% Expected volatility 27.46% - 32.24% 24.82% - 28.24% Expected dividend yield 0% 0%

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Feb. 29, 2020
Inventories Tables Abstract
Inventories	February 29, February 28, Raw materials and subassemblies $ 967,089 $ 873,483 Finished goods 752,999 571,640 Work in process 855,083 483,271 Total 2,575,171 1,928,394 Less: Allowance (193,280 ) (270,378 ) Net inventories $ 2,381,891 $ 1,658,016

Buildings, Equipment, Furnish_2

Buildings, Equipment, Furnishings and Leasehold Improvements (Tables)	12 Months Ended
	Feb. 29, 2020
Property, Plant and Equipment [Abstract]
Equipment, furnishings and leasehold improvements	February 29, February 28, 2020 2019 Buildings $ 2,250,000 $ 2,250,000 Laboratory equipment 1,418,903 1,140,821 Machinery and equipment 1,400,419 1,211,778 Leasehold improvements 632,021 473,560 Tradeshow and demonstration equipment 1,139,693 1,086,916 Furniture and fixtures 1,088,502 1,044,222 Totals 7,929,538 7,207,297 Less: Accumulated depreciation (5,062,899 ) (4,672,818 ) $ 2,866,639 $ 2,534,479

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Feb. 29, 2020
Payables and Accruals [Abstract]
Accrued expenses	February 29, February 28, Accrued compensation $ 585,875 $ 284,587 Estimated warranty costs 339,275 62,500 Accrued commissions 332,745 100,114 Professional fees 74,492 65,049 Other accrued expenses 281,022 120,456 $ 1,613,409 $ 632,706

Long Term Debt (Tables)

Long Term Debt (Tables)	12 Months Ended
	Feb. 29, 2020
Long Term Debt - Long-term Debt Payables
Long-term debt	February 29, 2020 February 28, 2019 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. 707,716 870,531 Total long-term debt 707,716 870,531 Due within one year 169,716 162,816 Due after one year $ 538,000 $ 707,715
Long-term debt payables	Fiscal Year ending February 28, 2021 169,716 2022 177,081 2023 184,677 2024 176,242 $ 707,716

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Feb. 29, 2020
Income Tax Disclosure [Abstract]
Income tax reconciliation	February 29, February 28, Expected federal income tax $ 254,898 $ 38,101 State tax, net of federal 19,758 11,430 Research and development tax credits (213,521 ) (19,588 ) Permanent timing difference 29,632 2,272 Change in valuation allowances 15,238 (36,425 ) Other adjustments — 24,057 Income tax expense $ 106,005 $ 19,847
Deferred tax asset and liability components	February 29, February 28, Deferred tax asset Inventory $ 41,000 $ 74,000 Allowance for accounts receivable 15,000 13,000 Accrued expenses and other 94,000 37,000 Research tax credits 27,000 208,000 Deferred tax asset – Long Term 177,000 332,000 Deferred tax liability Intangible asset amortization — (25,000 ) Building and leasehold depreciation (252,000 ) (346,000 ) Deferred tax liability – Long Term $ (252,000 ) $ (371,000 )

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Feb. 29, 2020
Equity [Abstract]
Summary of stock options	Weighted Average Stock Options Exercise Price $ Fair Value Outstanding Exercisable Outstanding Exercisable Vested 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 Granted 237,500 $ 2.55 Exercised (231,333 ) (0.88 ) Cancelled (2,500 ) (1.17 ) Balance - February 29, 2020 591,667 339,250 $ 1.77 $ 2.03 $ 0.35
Stock option grants	Shares Weighted Weighted Year ended February 29, 2020: Exercise price exceeds market price — — — Exercise price equals market price 237,500 $ 2.55 $ .34 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 45,000 2.69 $ 0.61 45,000 $0.91 to $0.97 109,834 6.26 $ 0.91 2,500 $1.05 22,500 3.97 $ 1.05 22,500 $1.06 73,333 7.21 $ 1.06 — $1.15 to $1.67 48,500 6.15 $ 1.30 44,500 $2.10 to $2.65 272,500 9.33 $ 2.54 215,750 $3.00 20,000 8.71 $ 3.00 9,000 Total Options: 591,667 339,250

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Feb. 29, 2020
Earnings Per Share - Denominator For Calculation Of Diluted Earnings Per Share
Computation of basic and diluted earnings per share	February 29, February 28, Numerator for basic and diluted earnings per share $ 1,107,442 $ 161,587 Denominator for basic earnings per share - weighted average 15,302,367 15,107,778 Effects of dilutive securities: Stock options for employees, directors and outside consultants 56,721 111,135 Denominator for diluted earnings per share 15,359,088 15,218,913 Basic Earnings Per Share – Weighted Average $ 0.07 $ 0.01 Diluted Earnings Per Share – Weighted Average $ 0.07 $ 0.01

Significant Customers and For_2

Significant Customers and Foreign Sales (Tables)	12 Months Ended
	Feb. 29, 2020
Segment Reporting [Abstract]
Export sales to customers located outside the United States	February 29, February 28, Asia Pacific (APAC) 4,817,000 3,659,000 Europe, Middle East, Asia (EMEA) 4,512,000 2,729,000 Latin America 1,520,000 1,172,000 $ 10,849,000 $ 7,560,000

Significant Accounting Polici_4

Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($)	Feb. 29, 2020	Feb. 28, 2019
Marketable Securities	$ 4,219,240	$ 2,365,706
Quoted Prices in Active Markets (Level 1)
Marketable Securities	3,565,629	2,365,706
Fair Value Inputs (Level 2)
Marketable Securities	653,611
Fair Value Inputs (Level 3)
Marketable Securities

Significant Accounting Polici_5

Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Advertising expense	$ 297,297	$ 246,681
Bad debt expense	$ 25,000	$ 0
Concentration of Credit Risk	The Company does not believe that it is subject to any unusual or significant risks, in the normal course of business. The Company had three customers, which accounted for 30% of sales during fiscal 2020. Three customers accounted for 67% of the outstanding accounts receivables at February 29, 2020.	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.
Marketable securities including mutual funds	$ 4,219,240	$ 2,365,706
Accumulated amortization of patents	$ 171,210	160,433
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 - Sales Rev

Revenue Recognition - Sales Revenue by Product Line (Details) - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Sales revenue	$ 15,354,619	$ 11,609,599
Fluxing Systems
Sales revenue	906,000	1,176,000
Integrated Coating Systems
Sales revenue	3,599,000	1,449,000
Multi-Axis Coating Systems
Sales revenue	6,866,000	4,906,000
OEM Systems
Sales revenue	1,384,000	1,891,000
Other
Sales revenue	$ 2,600,000	$ 2,188,000

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative) - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Proceeds in cash deposits	$ 1,649,000
Letter of Credit
Letter of credit	$ 701,000	$ 808,000
Letter of credit, collateral description	The Company was utilizing $701,000 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. 29, 2020	Feb. 28, 2019
Expected life (in years)		8 years
Risk free interest rate, minimum	1.58%	2.47%
Risk free interest rate, maximum	2.05%	2.98%
Expected volatility, minimum	27.46%	24.82%
Expected volatility, maximum	32.24%	28.24%
Expected dividend yield	0.00%	0.00%
Employee Stock Options | Minimum
Expected life (in years)	1 year
Employee Stock Options | Maximum
Expected life (in years)	8 years

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Options granted	237,500	55,000
Options, exercisable price	$ 2.55	$ 2.66
Weighted average grant date fair value, per share	$ 0.34	$ 0.90
Additional stock-based compensation expense as a result of applying ASC 718	$ 90,305	$ 30,548
Employee Stock Options
Options granted	17,500	35,000
Options, vesting period		3 years
Options, expiration period		10 years
Employee Stock Options | Minimum
Options, exercisable price	$ 2.10	$ 2.47
Employee Stock Options | Maximum
Options, exercisable price	$ 2.65	$ 2.55
Non-Employee Member of Board of Directors Stock Options
Options granted	20,000	20,000
Options, exercisable price	$ 2.65	$ 3
Options, vesting period	3 years	3 years
Options, expiration period	10 years	10 years
Officer and Director Stock Options
Options granted	200,000
Options, vesting period	0 years
Options, expiration period	10 years
Officer and Director Stock Options | Minimum
Options, exercisable price	$ 2.45
Officer and Director Stock Options | Maximum
Options, exercisable price	$ 2.65

Inventories (Details)

Inventories (Details) - USD ($)	Feb. 29, 2020	Feb. 28, 2019
Inventories Tables Abstract
Raw materials	$ 967,089	$ 873,483
Finished goods	752,999	571,640
Work in process	855,083	483,271
Total	2,575,171	1,928,394
Less: Allowance	193,280	270,378
Net inventories	$ 2,381,891	$ 1,658,016

Buildings, Equipment, Furnish_3

Buildings, Equipment, Furnishings and Leasehold Improvements - Equipment, furnishings and leasehold improvements (Details) - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Equipment, furnishings and leasehold improvements	$ 7,929,538	$ 7,207,297
Less: accumulated decpreciation	5,062,899	4,672,818
Equipment, furnishings and leasehold improvements, net	2,866,639	2,534,479
Depreciation Expense	390,082	382,777
Buildings
Equipment, furnishings and leasehold improvements	2,250,000	2,250,000
Laboratory Equipment
Equipment, furnishings and leasehold improvements	1,418,903	1,140,821
Machinery and Equipment
Equipment, furnishings and leasehold improvements	1,400,419	1,211,778
Leasehold improvements
Equipment, furnishings and leasehold improvements	632,021	473,560
Tradeshow and Demonstration Equipment
Equipment, furnishings and leasehold improvements	1,139,693	1,086,916
Furniture and Fixtures
Equipment, furnishings and leasehold improvements	$ 1,088,502	$ 1,044,222

Accrued expenses (Details)

Accrued expenses (Details) - USD ($)	Feb. 29, 2020	Feb. 28, 2019
Payables and Accruals [Abstract]
Accrued compensation	$ 585,875	$ 284,587
Estimated warranty costs	339,275	62,500
Accrued commissions	332,745	100,114
Professional fees	74,492	65,049
Other accrued expenses	281,022	120,456
Total accrued expenses	$ 1,613,409	$ 632,706

Revolving Line of Credit (Detai

Revolving Line of Credit (Details Narrative) - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Letter of Credit
Line of credit	$ 701,000	$ 808,000
Line of credit, maturity date	Feb. 29, 2020
Unused credit line	$ 799,000	$ 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	4.75%	5.50%

Long-term debt (Details)

Long-term debt (Details) - USD ($)	Feb. 29, 2020	Feb. 28, 2019
Long-term debt	$ 707,716	$ 870,531
Due within one year	169,716	162,816
Due after one year	538,000	707,715
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	$ 707,716	$ 870,531

Long Term Debt - Long-term debt

Long Term Debt - Long-term debt payables (Details) - USD ($)	Feb. 29, 2020	Feb. 28, 2019
Fiscal Year ending February 28,
2021	$ 169,716
2022	177,081
2023	184,677
2024	176,242
Total	$ 707,716	$ 870,531

Income Taxes - Income tax recon

Income Taxes - Income tax reconciliation (Details) - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Income tax (benefit) reconciliation:
Expected federal income tax	$ 254,898	$ 38,101
State tax, net of federal	19,758	11,430
Research and development tax credits	(213,521)	(19,588)
Permanent timing difference	29,632	2,272
Change in valuation allowances	15,238	(36,425)
Other adjustments		24,057
Income tax expense (benefit)	$ 106,005	$ 19,847

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax asset and liability components (Details) - USD ($)	Feb. 29, 2020	Feb. 28, 2019
Deferred tax asset
Inventory	$ 41,000	$ 74,000
Allowance for accounts receivable	15,000	13,000
Accrued expenses and other	94,000	37,000
Research tax credits	27,000	208,000
Deferred tax asset - Long Term	177,000	332,000
Deferred tax liability
Intangible asset amortization		(25,000)
Building and leasehold depreciation	(252,000)	(346,000)
Deferred tax liability - Long Term	$ (252,000)	$ (371,000)

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	12 Months Ended
	Feb. 29, 2020
Income Tax Disclosure [Abstract]
Federal income tax rate	21.00%

Stockholders' Equity - Summary

Stockholders' Equity - Summary of stock options (Details) - $ / shares	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Shares
Outstanding at beginning of period (in shares)	588,000	912,100
Exercisable at beginning of period (in shares)	171,000	425,400
Granted (in shares)	237,500	55,000
Exercised (in shares)	(231,333)	(371,100)
Cancelled (in shares)	(2,500)	(8,000)
Outstanding at end of period (in shares)	591,667	588,000
Exercisable at end of period (in shares)	339,250	171,000
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 1.10	$ 0.96
Granted (in dollars per share)	2.55	2.66
Exercised (in dollars per share)	(0.88)	(0.96)
Cancelled (in dollars per share)	(1.17)	(1.12)
Outstanding at end of period (in dollars per share)	1.77	1.10
Exercisable at beginning of period (in dollars per share)	0.85	0.92
Exercisable at end of period (in dollars per share)	2.03	0.85
Fair value vested at beginning of period (in dollars per share)	0.34	0.35
Fair value vested at end of period (in dollars per share)	$ 0.35	$ 0.34

Stockholders' Equity - Stock op

Stockholders' Equity - Stock option grants (Details) - $ / shares	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Information, at date of issuance, regarding stock option grants
Weighted Average Exercise Price	$ 2.55	$ 2.66
Exercise Price Equals Market Price
Information, at date of issuance, regarding stock option grants
Shares	237,500
Weighted Average Exercise Price	$ 2.55
Weighted Average Fair Value	$ 0.34

Stockholders' Equity - Stock _2

Stockholders' Equity - Stock options outstanding and exercisable (Details) - $ / shares	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 28, 2018
Number Outstanding	591,667	588,000	912,100
Weighted Average Exercise Price	$ 2.03	$ 0.85	$ 0.92
Number Exercisable	339,250	171,000	425,400
Employee Stock Options | Exercise Price Range $0.61
Range of exercise prices	0.61
Number Outstanding	45,000
Weighted-Average Remaining Life in Years	2 years 9 months
Weighted Average Exercise Price	$ 0.61
Number Exercisable	45,000
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	109,834
Weighted-Average Remaining Life in Years	6 years 3 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	22,500
Weighted-Average Remaining Life in Years	4 years
Weighted Average Exercise Price	$ 1.05
Number Exercisable	22,500
Employee Stock Options | Exercise Price Range $1.06
Range of exercise prices	1.06
Number Outstanding	73,333
Weighted-Average Remaining Life in Years	7 years 2 months
Weighted Average Exercise Price	$ 1.06
Employee Stock Options | Exercise Price Range $1.15 to $1.67
Range of exercise prices, low end (in dollars per share)	1.15
Range of exercise prices, high end (in dollars per share)	$ 1.67
Number Outstanding	48,500
Weighted-Average Remaining Life in Years	6 years 2 months
Weighted Average Exercise Price	$ 1.30
Number Exercisable	44,500
Employee Stock Options | Exercise Price Range $2.10 to $2.65
Range of exercise prices, low end (in dollars per share)	$ 2.10
Range of exercise prices, high end (in dollars per share)	$ 2.65
Number Outstanding	272,500
Weighted-Average Remaining Life in Years	9 years 4 months
Weighted Average Exercise Price	$ 2.54
Number Exercisable	215,750
Employee Stock Options | Exercise Price Range $3.00
Range of exercise prices	3
Number Outstanding	20,000
Weighted-Average Remaining Life in Years	8 years 8 months
Weighted Average Exercise Price	$ 3
Number Exercisable	9,000

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - $ / shares	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Stock option shares granted	237,500	55,000
Weighted Average Exercise Price	$ 2.55	$ 2.66
Employee Stock Options
Stock option shares granted	17,500	35,000
Option vesting description	Options vest over three years	Options vest annually over three years
Expiration of options		Feb. 28, 2029
Employee Stock Options | Minimum
Weighted Average Exercise Price	$ 2.10	$ 2.47
Employee Stock Options | Maximum
Weighted Average Exercise Price	$ 2.65	$ 2.55
Non-Employee Member of Board of Directors Stock Options
Stock option shares granted	20,000	20,000
Weighted Average Exercise Price	$ 2.65	$ 3
Option vesting description	Options vest over three years	Options vest annually over three years
Expiration of options		Feb. 28, 2029
Officer and Director Stock Options
Stock option shares granted	200,000
Option vesting description	Options vested upon grant
Officer and Director Stock Options | Minimum
Weighted Average Exercise Price	$ 2.45
Officer and Director Stock Options | Maximum
Weighted Average Exercise Price	$ 2.65
2013 Stock Incentive Plan
Stock options shares available for purchase	2,500,000
Stock options outstanding	541,667
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	50,000

Earnings Per Share - The denomi

Earnings Per Share - The denominator for the calculation of diluted earnings per share (Details) - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Earnings Per Share - Denominator For Calculation Of Diluted Earnings Per Share
Numerator for basic and diluted earnings per share	$ 1,107,442	$ 161,587
Denominator for basic earnings per share - weighted average	15,302,367	15,107,778
Effects of dilutive securities:
Stock options for employees, directors and outside consultants	56,721	111,135
Denominator for diluted earnings per share	15,359,088	15,218,913
Basic Earnings Per Share - Weighted Average	$ 0.07	$ 0.01
Diluted Earnings Per Share - Weighted Average	$ 0.07	$ 0.01

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) - Other Income - USD ($)	12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Rental revenue	$ 85,000	$ 84,000
Rental expenses	56,000	61,000
Net rental revenue	$ 29,000	$ 23,000

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. 29, 2020	Feb. 28, 2019
Export sales to customers located outside the United States
Total sales	$ 10,849,000	$ 7,560,000
Significant customers and foreign sales
Percent of total revenues	71.00%	65.00%
Three Customers
Significant customers and foreign sales
Percent of total revenues	30.00%
One Customer
Significant customers and foreign sales
Percent of total revenues		14.00%
Asia Pacific (APAC)
Export sales to customers located outside the United States
Total sales	$ 4,817,000	$ 3,659,000
Europe, Middle East, Asia (EMEA)
Export sales to customers located outside the United States
Total sales	4,512,000	2,729,000
Latin America
Export sales to customers located outside the United States
Total sales	$ 1,520,000	$ 1,172,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event - USD ($)	May 08, 2020	Apr. 30, 2020
Subsequent Event [Line Items]
Options exercised on a cashless basis into common stock		117,333 options were exercised on a cashless basis into 74,805 shares of common stock.
SBA's Payroll Protection Program
Subsequent Event [Line Items]
Proceeds received through a loan funded under the PPP	$ 1,001,640
Term of PPP loan	2 years
Interest rate	1.00%
Payment terms	Beginning on the seventh month following the date of the Note, the Company is required to make 18 monthly payments of principal and interest in the amount of $56,088.24.