Sono-Tek (SOTK) 10-Q 15 Jul 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 31, 2020	Jul. 13, 2020
Document And Entity Information
Entity Registrant Name	SONO TEK CORP
Entity Central Index Key	0000806172
Document Type	10-Q
Document Period End Date	May 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--02-28
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Common Stock, Shares Outstanding		15,422,985
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
Emerging Growth Company	false
Entity Small Business	true
Shell Company	false
Interactive Data Current	Yes
Entity Incorporation State or Country	NY
Entity File Number	000-16035

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	May 31, 2020	Feb. 29, 2020
Current Assets:
Cash and cash equivalents	$ 4,381,947	$ 3,659,551
Marketable Securities	3,908,454	4,219,240
Accounts receivable	1,341,617	929,701
Inventories, net	2,512,222	2,381,891
Prepaid expenses and other current assets	146,588	153,698
Total current assets	12,290,828	11,344,081
Land	250,000	250,000
Buildings, net	1,634,226	1,654,061
Equipment, furnishings and building improvements, net	1,279,083	1,212,578
Intangible assets, net	102,145	106,291
Deferred tax asset	176,314	176,314
TOTAL ASSETS	15,732,596	14,743,325
Current Liabilities:
Accounts payable	1,007,517	668,721
Accrued expenses	1,409,167	1,613,409
Customer deposits	1,325,694	1,648,690
Current maturities of long term debt	556,212	169,716
Income taxes payable	112,548	70,621
Total current liabilities	4,411,138	4,171,157
Deferred tax liability	251,761	251,761
Long term debt, less current maturities	1,111,265	538,000
Total liabilities	5,774,164	4,960,918
Stockholders' Equity
Common stock	154,230	153,482
Additional paid-in capital	9,025,755	9,018,406
Accumulated earnings	778,447	610,519
Total stockholders' equity	9,958,432	9,782,407
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 15,732,596	$ 14,743,325

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	May 31, 2020	Feb. 29, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 71,000	$ 71,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	25,000,000	25,000,000
Common stock, issued shares	15,422,985	15,348,180
Common stock, outstanding shares	15,422,985	15,348,180

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	May 31, 2020	May 31, 2019
Income Statement [Abstract]
Net Sales	$ 3,428,544	$ 2,822,428
Cost of Goods Sold	1,867,811	1,517,493
Gross Profit	1,560,733	1,304,935
Operating Expenses
Research and product development costs	411,424	354,173
Marketing and selling expenses	706,717	677,412
General and administrative costs	258,402	268,813
Total Operating Expenses	1,376,543	1,300,398
Operating Income	184,190	4,537
Interest Expense	(8,417)	(8,947)
Interest and Dividend Income	22,646	31,171
Other income	11,435	4,755
Income Before Income Taxes	209,854	31,516
Income Tax Expense	41,926	6,303
Net Income	$ 167,928	$ 25,213
Basic Earnings Per Share	$ 0.01	$ 0
Diluted Earnings Per Share	$ 0.01	$ 0
Weighted Average Shares - Basic	15,397,779	15,268,071
Weighted Average Shares - Diluted	15,436,758	15,357,295

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance (shares) at Feb. 28, 2019	15,197,563
Beginning balance at Feb. 28, 2019	$ 151,976	$ 8,929,607	$ (496,923)	$ 8,584,660
Stock based compensation expense		11,310		11,310
Exercise of stock options (shares)	104,050
Exercise of stock options	$ 1,040	(1,040)
Net Income			25,213	25,213
Ending balance (shares) at May. 31, 2019	15,301,613
Ending balance at May. 31, 2019	$ 153,016	8,939,877	(471,710)	8,621,183
Beginning balance (shares) at Feb. 29, 2020	15,348,180
Beginning balance at Feb. 29, 2020	$ 153,482	9,018,406	610,519	9,782,407
Stock based compensation expense		8,097		$ 8,097
Exercise of stock options (shares)	74,805			117,333
Exercise of stock options	$ 748	(748)
Net Income			167,928	$ 167,928
Ending balance (shares) at May. 31, 2020	15,422,985
Ending balance at May. 31, 2020	$ 154,230	$ 9,025,755	$ 778,447	$ 9,958,432

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	May 31, 2020	May 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 167,928	$ 25,213
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	109,878	89,207
Stock based compensation expense	8,097	11,310
Inventory reserve	18,000	14,000
Decrease (Increase) in:
Accounts receivable	(411,916)	65,538
Inventories	(148,331)	(734,704)
Prepaid expenses and other current assets	7,110	289,992
(Decrease) Increase in:
Accounts payable and accrued expenses	134,554	410,079
Customer deposits	(322,996)	184,748
Income taxes payable	41,927	6,303
Net Cash (Used In) Provided By Operating Activities	(395,749)	361,686
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment, furnishings and leasehold improvements	(152,402)	(129,159)
Sale of marketable securities	310,786
(Purchase) of marketable securities		(1,413,481)
Net Cash Provided By (Used In) Investing Activities	158,384	(1,542,640)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from note payable - bank	1,001,640
Repayment of long-term debt	(41,879)	(40,283)
Net Cash Used In Financing Activities	959,761	(40,283)
NET (DECREASE) IN CASH AND CASH EQUIVALENTS	722,396	(1,221,237)
CASH AND CASH EQUIVALENTS
Beginning of period	3,659,551	3,144,123
End of period	4,381,947	1,922,886
SUPPLEMENTAL DISCLOSURE:
Interest paid	$ 7,210	$ 8,947

Business Description

Business Description	3 Months Ended
	May 31, 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. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, the Condensed Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation (consisting of normal recurring adjustments) have been included. The results for the interim periods are not necessarily indicative of what the results will be for the fiscal year. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of and for the fiscal year ended February 29, 2020 (“fiscal year 2020”) contained in the Company’s 2020 Annual Report on Form 10-K filed with the SEC. The Company’s current fiscal year ends on February 28, 2021 (“fiscal 2021”).

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	May 31, 2020
Notes to Financial Statements
Significant Accounting Policies	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents - Concentration of Credit Risk – Financial instruments and related items, which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limit. At May 31, 2020, deposits in excess of the FDIC limits were $7,096,000. Consolidation Earnings Per Share - Equipment, Furnishings and Leasehold Improvements Fair Value of Financial Instruments - Level 1: Quoted prices in active markets. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The fair values of financial assets of the Company were determined using the following categories at May 31, 2020 and February 29, 2020, respectively: Level 1 Level 2 Level 3 Total Marketable Securities – May 31, 2020 $ 3,154,680 $ 753,774 $ — $ 3,908,454 Marketable Securities – February 29, 2020 $ 3,565,629 653,611 $ — $ 4,219,240 Marketable Securities include mutual funds, certificates of deposit and US Treasury securities, totaling $3,908,454 and $4,219,240 that are considered to be highly liquid and easily tradeable as of May 31, 2020 and February 29, 2020, 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 - Interim Reporting The financial information reflects all adjustments, normal and recurring, which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The results for such interim periods are not necessarily indicative of the results to be expected for the year. Inventories - Land and Buildings – Long-Lived Assets - Management Estimates - Marketable Securities - New Accounting Pronouncements - In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes Other than 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. Reclassifications – Research and Product Development Expenses - Shipping and Handling Costs –

Revenue Recognition

Revenue Recognition	3 Months Ended
	May 31, 2020
Notes to Financial Statements
Revenue Recognition	NOTE 3: REVENUE RECOGNITION 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 its 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. The Company receives cash deposits for customer orders based upon contract terms. Customer deposits are recognized as revenue when the Company’s performance obligations have been met. At February 29, 2020, the Company had received $1,649,000 in cash deposits from customers. For the three months ended May 31, 2020, the Company recognized $1,154,000 in revenue from the cash deposits received at February 29, 2020. At May 31, 2020, the Company had received $1,326,000 in cash deposits for customer orders and had issued Letters of Credit in the amount of $372,000 to secure some of these cash deposits.

Inventories

Inventories	3 Months Ended
	May 31, 2020
Notes to Financial Statements
Inventories	NOTE 4: INVENTORIES Inventories consist of the following: May 31, February 29, 2020 2020 Raw materials and subassemblies $ 994,096 $ 967,089 Finished goods 929,111 752,999 Work in process 800,295 855,083 Total 2,723,502 2,575,171 Less: Allowance (211,280 ) (193,280 ) Net inventories $ 2,512,222 $ 2,381,891

Stock Options and Warrants

Stock Options and Warrants	3 Months Ended
	May 31, 2020
Equity [Abstract]
Stock Options and Warrants	NOTE 5: STOCK OPTIONS AND WARRANTS Stock Options Under the 2003 Stock Incentive Plan, as amended ("2003 Plan"), until May 2013, options were available to be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 1,500,000 shares of the Company's common stock. As of May 31, 2020, there were 50,000 options outstanding and vested under the 2003 Plan, under which no additional options may be granted. During the three months ended May 31, 2020, 117,333 options were exercised on a cashless basis into 74,805 shares of common stock.

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	May 31, 2020
Notes to Financial Statements
Stock Based Compensation	NOTE 6: STOCK BASED COMPENSATION The Company adopted ASC 718, “Share Based Payments.” which requires companies to expense the value of employee stock options and similar awards. The weighted-average fair value of options are estimated on the date of grant using the Black-Scholes options-pricing model. For the three months ended May 31, 2020 no options were issued. In computing the impact, the fair value of each option is estimated on the date of grant based on the Black-Scholes options-pricing model utilizing certain assumptions for a risk free interest rate; volatility; and expected remaining lives of the awards. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company’s stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company’s forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the number of vested options as a percentage of total options outstanding. If the Company’s actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. For the three months ended May 31, 2020 and 2019, net income and earnings per share reflect the actual deduction for stock-based compensation expense. The impact of applying ASC 718 approximated $8,000 and $11,000 in additional compensation expense during the three months ended May 31, 2020 and 2019, respectively. Such amounts are included in general and administrative expenses on the statement of operations. The expense for stock-based compensation is a non-cash expense item.

Earnings Per Share

Earnings Per Share	3 Months Ended
	May 31, 2020
Notes to Financial Statements
Earnings Per Share	NOTE 7: EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended May 31, 2020 2019 Numerator for basic and diluted earnings per share $ 167,928 $ 25,213 Denominator for basic earnings per share - weighted average 15,397,779 15,268,071 Effects of dilutive securities: Stock options for employees, directors and outside consultants 38,979 89,224 Denominator for diluted earnings per share 15,436,758 15,357,295 Basic Earnings Per Share $ 0.01 $ 0.00 Diluted Earnings Per Share $ 0.01 $ 0.00

Long Term Debt

Long Term Debt	3 Months Ended
	May 31, 2020
Notes to Financial Statements
Long Term Debt	NOTE 8: LONG TERM DEBT Long-term debt consists of the following: May 31, February 29, 2020 2020 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. $ 665,837 $ 707,716 Note Payable, bank, unsecured, Paycheck Protection Program funding, payable in monthly installments of principal and interest of $56,370 through April 2022. Interest rate 1%. 2-year term, no repayments required for the first six months. Under the terms of the CARE Act, forgiveness for all or a portion of the loan may be granted based upon use of the loan proceeds for eligible payroll and related payroll costs and other qualified expenses. 1,001,640 — Total long-term debt 1,667,477 707,716 Due within one year 556,212 169,716 Due after one year $ 1,111,265 $ 538,000

Revolving Line of Credit

Revolving Line of Credit	3 Months Ended
	May 31, 2020
Notes to Financial Statements
Revolving Line of Credit	NOTE 9: REVOLVING LINE OF CREDIT The Company has a $1,500,000 revolving line of credit at prime which was 3.25% at May 31, 2020. 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 May 31, 2020, $372,000 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 May 31, 2020, there were no outstanding borrowings under the line of credit and the unused portion of the credit line was $1,128,000 as of May 31, 2020.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	May 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 10: COMMITMENTS AND CONTINGENCIES Other than the letters of credit disclosed in Note 8, the Company did not have any material commitments or contingencies as of May 31, 2020.

Subsequent Events

Subsequent Events	3 Months Ended
	May 31, 2020
Notes to Financial Statements
Subsequent Events	NOTE 11: SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q, and determined that there have been no events that have occurred that would require adjustments to its disclosures in the condensed consolidated financial statements except for the following items: Issuance of Standby letters of Credit On June 4, 2020, the Company issued additional letters of credit in the amount of $323,000 to customers that remitted cash deposits to the Company on existing orders. Impact of Covid 19 In December 2019, the novel coronavirus (“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. The impact of COVID-19 on the Company’s results and operations is further discussed in the accompanying Management’s Discussion and Analysis section in this Report.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	May 31, 2020
Notes to Financial Statements
Cash and Cash Equivalents	Cash and Cash Equivalents -
Concentration of Credit Risk	Concentration of Credit Risk – Financial instruments and related items, which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limit. At May 31, 2020, deposits in excess of the FDIC limits were $7,096,000.
Consolidation	Consolidation
Earnings Per Share	Earnings Per Share -
Equipment, Furnishings and Leasehold Improvements	Equipment, Furnishings and Leasehold Improvements
Fair Value of Financial Instruments	Fair Value of Financial Instruments - Level 1: Quoted prices in active markets. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The fair values of financial assets of the Company were determined using the following categories at May 31, 2020 and February 29, 2020, respectively: Level 1 Level 2 Level 3 Total Marketable Securities – May 31, 2020 $ 3,154,680 $ 753,774 $ — $ 3,908,454 Marketable Securities – February 29, 2020 $ 3,565,629 653,611 $ — $ 4,219,240 Marketable Securities include mutual funds, certificates of deposit and US Treasury securities, totaling $3,908,454 and $4,219,240 that are considered to be highly liquid and easily tradeable as of May 31, 2020 and February 29, 2020, 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 -
Interim Reporting	Interim Reporting The financial information reflects all adjustments, normal and recurring, which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The results for such interim periods are not necessarily indicative of the results to be expected for the year.
Inventories	Inventories -
Land and Buildings	Land and Buildings –
Long-Lived Assets	Long-Lived Assets -
Management Estimates	Management Estimates -
Marketable Securities	Marketable Securities -
New Accounting Pronouncements	New Accounting Pronouncements - In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes Other than 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.
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)	3 Months Ended
	May 31, 2020
Notes to Financial Statements
Fair values of financial assets of the Company	Level 1 Level 2 Level 3 Total Marketable Securities – May 31, 2020 $ 3,154,680 $ 753,774 $ — $ 3,908,454 Marketable Securities – February 29, 2020 $ 3,565,629 653,611 $ — $ 4,219,240

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	May 31, 2020
Inventories Tables Abstract
Inventories	May 31, February 29, 2020 2020 Raw materials and subassemblies $ 994,096 $ 967,089 Finished goods 929,111 752,999 Work in process 800,295 855,083 Total 2,723,502 2,575,171 Less: Allowance (211,280 ) (193,280 ) Net inventories $ 2,512,222 $ 2,381,891

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	May 31, 2020
Earnings Per Share - Denominator For Calculation Of Diluted Earnings Per Share
Computation of basic and diluted earnings per share	Three Months Ended May 31, 2020 2019 Numerator for basic and diluted earnings per share $ 167,928 $ 25,213 Denominator for basic earnings per share - weighted average 15,397,779 15,268,071 Effects of dilutive securities: Stock options for employees, directors and outside consultants 38,979 89,224 Denominator for diluted earnings per share 15,436,758 15,357,295 Basic Earnings Per Share $ 0.01 $ 0.00 Diluted Earnings Per Share $ 0.01 $ 0.00

Long Term Debt (Tables)

Long Term Debt (Tables)	3 Months Ended
	May 31, 2020
Long Term Debt Tables Abstract
Long-term debt	May 31, February 29, 2020 2020 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. $ 665,837 $ 707,716 Note Payable, bank, unsecured, Paycheck Protection Program funding, payable in monthly installments of principal and interest of $56,370 through April 2022. Interest rate 1%. 2-year term, no repayments required for the first six months. Under the terms of the CARE Act, forgiveness for all or a portion of the loan may be granted based upon use of the loan proceeds for eligible payroll and related payroll costs and other qualified expenses. 1,001,640 — Total long-term debt 1,667,477 707,716 Due within one year 556,212 169,716 Due after one year $ 1,111,265 $ 538,000

Significant Accounting Polici_4

Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($)	May 31, 2020	Feb. 29, 2020
Marketable Securities	$ 3,908,454	$ 4,219,240
Quoted Prices in Active Markets (Level 1)
Marketable Securities	3,154,680	3,565,629
Fair Value Inputs (Level 2)
Marketable Securities	753,774	653,611
Fair Value Inputs (Level 3)
Marketable Securities

Significant Accounting Polici_5

Significant Accounting Policies - Fair values of financial assets of the Company (Details Narrative) - USD ($)	May 31, 2020	Feb. 29, 2020
Notes to Financial Statements
Highly liquid and easily tradeable mutual funds, certificates of deposit and US Treasury securities	$ 3,908,454	$ 4,219,240

Significant Accounting Polici_6

Significant Accounting Policies - Intangible Assets (Details Narrative) - USD ($)	3 Months Ended
	May 31, 2020	Feb. 29, 2020
Accumulated amortization of intangible assets	$ 173,888	$ 171,210
Annual Amortization Expense of Intangible Assets For the Next Five Years
Annual amortization expense this year	11,000
Annual amortization expense year two	11,000
Annual amortization expense year three	11,000
Annual amortization expense year four	11,000
Annual amortization expense year five	$ 11,000
Domestic Patents
Useful life of intangible assets	17 years
Foreign Patents
Useful life of intangible assets	12 years

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative) - USD ($)	3 Months Ended
	May 31, 2020	Feb. 29, 2020
Letters of Credit
Letters of credit issued	$ 372,000
Letters of credit, collateral description	$372,000 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.
Revenue Recognition
Cash deposits received	$ 1,326,000	$ 1,649,000
Revenue recognized from previous cash deposits	$ 1,154,000

Inventories (Details)

Inventories (Details) - USD ($)	May 31, 2020	Feb. 29, 2020
Inventories Tables Abstract
Raw materials and subassemblies	$ 994,096	$ 873,483
Finished goods	929,111	571,640
Work in process	800,295	483,271
Total	2,723,502	1,928,394
Less: Allowance	211,280	270,378
Net inventories	$ 2,512,222	$ 2,381,891

Stock Options and Warrants (Det

Stock Options and Warrants (Details Narrative)	3 Months Ended
	May 31, 2020shares
Options exercised on a cashless basis	117,333
Shares issued as a result of options exercised	74,805
2013 Stock Incentive Plan
Stock options shares available for purchase	2,500,000
Stock options outstanding	421,834
Years until options expire	10 years
Options vested	288,125
2003 Stock Incentive Plan
Stock options shares available for purchase	1,500,000
Stock options outstanding	50,000
Options vested	50,000

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($)		3 Months Ended
		May 31, 2020	May 31, 2019
Options granted		38,979	89,224
Employee Stock Option
Options granted		0
Additional stock-based compensation expense as a result of applying ASC 718	[1]	$ 8,000	$ 11,000
[1]	Included in general and administrative expenses on the statement of operations.

Earnings Per Share - The denomi

Earnings Per Share - The denominator for the calculation of diluted earnings per share (Details) - USD ($)	3 Months Ended
	May 31, 2020	May 31, 2019
Earnings Per Share - Denominator For Calculation Of Diluted Earnings Per Share
Numerator for basic and diluted earnings per share	$ 167,928	$ 25,213
Denominator for basic earnings per share - weighted average	15,397,779	15,268,071
Effects of dilutive securities:
Stock options for employees, directors and outside consultants	38,979	89,224
Denominator for diluted earnings per share	15,436,758	15,357,295
Basic Earnings Per Share	$ 0.01	$ 0
Diluted Earnings Per Share	$ 0.01	$ 0

Long Term Debt (Details)

Long Term Debt (Details) - USD ($)	May 31, 2020	Feb. 29, 2020
Total long-term debt	$ 1,667,477	$ 707,716
Due within one year	556,212	169,716
Due after one year	1,111,265	538,000
Note payable, bank, collateralized by land and buildings, payable in monthly installments of principal and interest of $16,358 through January 2024. Interest rate of 4.15%. 10 year term
Total long-term debt	665,837	707,716
Note Payable, bank, unsecured, Paycheck Protection Program funding, payable in monthly installments of principal and interest of $56,370 through April 2022. Interest rate 1%. 2-year term, no repayments required for the first six months.
Total long-term debt	$ 1,001,640

Revolving Line of Credit (Detai

Revolving Line of Credit (Details Narrative)	3 Months Ended
	May 31, 2020USD ($)
Letters of Credit
Letters of credit, collateral description	$372,000 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.
Letters of credit, maturity date	Feb. 29, 2020
Revolving Line of Credit
Revolving line of credit amount	$ 1,500,000
Revolving line of credit interest rate	3.25%
Revolving 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.
Revolving line of credit unused credit line	$ 1,128,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative)	Jun. 04, 2020
Issuance of Standby Letters of Credit
Subsequent event description	On June 4, 2020, the Company issued additional letters of credit in the amount of $323,000 to customers that remitted cash deposits to the Company on existing orders.