Sono-Tek (SOTK) 10-Q 15 Jul 22 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	May 31, 2022	Jul. 14, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	May 31, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--02-28
Entity File Number	000-16035
Entity Registrant Name	SONO TEK CORP
Entity Central Index Key	0000806172
Entity Tax Identification Number	14-1568099
Entity Incorporation, State or Country Code	NY
Entity Address, Address Line One	2012 Rt. 9W
Entity Address, City or Town	Milton
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	12547
City Area Code	(845)
Local Phone Number	795-2020
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	SOTK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Common stock, shares outstanding		15,734,728

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	May 31, 2022	Feb. 28, 2022
Current Assets:
Cash and cash equivalents	$ 7,675,112	$ 4,840,558
Marketable securities	3,398,931	5,867,990
Accounts receivable (less allowance of $56,123)	1,486,371	1,092,505
Inventories, net	2,893,196	2,373,242
Prepaid expenses and other current assets	206,885	323,304
Total current assets	15,660,495	14,497,599
Land	250,000	250,000
Buildings, net	1,607,814	1,621,878
Equipment, furnishings and building improvements, net	904,827	939,306
Intangible assets, net	71,249	76,015
Deferred tax asset	255,412	240,736
TOTAL ASSETS	18,749,797	17,625,534
Current Liabilities:
Accounts payable	983,130	684,511
Accrued expenses	1,688,372	1,804,028
Customer deposits	1,665,136	1,167,968
Income taxes payable	129,626	58,874
Total current liabilities	4,466,264	3,715,381
Deferred tax liability	167,215	168,840
Total liabilities	4,633,479	3,884,221
Stockholders’ Equity
Common stock, $.01 par value; 25,000,000 shares authorized, 15,729,175 and 15,729,175 shares issued and outstanding, respectively	157,292	157,292
Additional paid-in capital	9,379,656	9,310,287
Accumulated earnings	4,579,370	4,273,734
Total stockholders’ equity	14,116,318	13,741,313
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 18,749,797	$ 17,625,534

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	May 31, 2022	Feb. 28, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful receivables	$ 56,123	$ 56,123
Common stock, par value	$ 0.01	$ 0.01
Common stock shares authorized	25,000,000	25,000,000
Common stock, shares issued	15,729,175	15,729,175
Common stock, shares outstanding	15,729,175	15,729,175

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($)	3 Months Ended
	May 31, 2022	May 31, 2021
Income Statement [Abstract]
Net Sales	$ 4,051,535	$ 3,644,468
Cost of Goods Sold	1,944,522	1,820,303
Gross Profit	2,107,013	1,824,165
Operating Expenses
Research and product development costs	516,633	413,816
Marketing and selling expenses	789,862	764,642
General and administrative costs	419,993	302,799
Total Operating Expenses	1,726,488	1,481,257
Operating Income	380,525	342,908
Interest and Dividend Income	7,415	3,360
Net unrealized loss on marketable securities	(11,853)
Paycheck Protection Program Loan Forgiveness		1,005,372
Income Before Income Taxes	376,087	1,351,640
Income Tax Expense	70,451	84,888
Net Income	$ 305,636	$ 1,266,752
Basic Earnings Per Share	$ 0.02	$ 0.08
Diluted Earnings Per Share	$ 0.02	$ 0.08
Weighted Average Shares - Basic	15,729,175	15,494,421
Weighted Average Shares - Diluted	15,752,424	15,663,772

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Earnings	Total
Beginning balance, value at Feb. 28, 2021	$ 154,527	$ 9,064,994	$ 1,731,161	$ 10,950,682
Shares, Outstanding at Feb. 28, 2021	15,452,656
Stock based compensation expense		21,637		21,637
Net Income			1,266,752	1,266,752
Cashless exercise of stock options	$ 499	(499)
Cashless exercise of stock options (shares)	49,901
Ending balance, value at May. 31, 2021	$ 155,026	9,086,132	2,997,913	12,239,071
Shares, Outstanding at May. 31, 2021	15,502,557
Beginning balance, value at Feb. 28, 2022	$ 157,292	9,310,287	4,273,734	13,741,313
Shares, Outstanding at Feb. 28, 2022	15,729,175
Stock based compensation expense		69,369		69,369
Net Income			305,636	305,636
Ending balance, value at May. 31, 2022	$ 157,292	$ 9,379,656	$ 4,579,370	$ 14,116,318
Shares, Outstanding at May. 31, 2022	15,729,175

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Cash Flows - USD ($)	3 Months Ended
	May 31, 2022	May 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 305,636	$ 1,266,752
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	107,640	107,553
Stock based compensation expense	69,369	21,637
Inventory reserve		31,000
Paycheck Protection Program Loan Forgiveness		(1,005,372)
Unrealized loss on marketable securities	11,853
Deferred tax expense	(14,676)	1,167
(Decrease) Increase in:
Accounts receivable	(393,866)	589,231
Inventories	(519,955)	(32,114)
Prepaid expenses and other current assets	(116,419)	(42,860)
Accounts payable and accrued expenses	182,963	(464,960)
Customer deposits	497,168	80,530
Income taxes payable	69,127	83,721
Net Cash Provided by Operating Activities	431,678	722,005
Purchase of equipment, furnishings and leasehold improvements	(54,331)	(85,548)
Sale of marketable securities	2,457,207	1,073,112
Net Cash Provided by Investing Activities	2,402,876	987,564
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,834,554	1,709,569
CASH AND CASH EQUIVALENTS
Beginning of period	4,840,558	4,084,078
End of period	7,675,112	5,793,647
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid
Taxes Paid	$ 16,000

BUSINESS DESCRIPTION

BUSINESS DESCRIPTION	3 Months Ended
	May 31, 2022
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 add functional properties, protect or strengthen 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 incorporating our patented technology, in combination with strong applications engineering knowledge, to assist our customers in achieving their desired coating solutions. 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 with the instructions for Form 10-Q and Article 8 of Regulation S-X. Accordingly, the unaudited 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 unaudited condensed consolidated financial statements should be read in conjunction with the audited Consolidated Financial Statements as of and for the fiscal year ended February 28, 2022 (“fiscal year 2022”) contained in the Company’s 2022 Annual Report on Form 10-K filed with the SEC on May 24, 2022 . The Company’s current fiscal year ends on February 28, 2023 (“fiscal 2023”).

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	May 31, 2022
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Accounts Receivable, net Cash and Cash Equivalents - Consolidation Earnings Per Share - Equipment, Furnishings and Leasehold Improvements straight-line method three to five years Fair Value of Financial Instruments Fair Value Measurement The carrying amounts of financial instruments reported in the accompanying unaudited condensed consolidated financial statements for current assets and current liabilities approximate the fair value because of the immediate or short-term maturities of the financial instruments. The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. The fair values of financial assets of the Company were determined using the following categories at May 31, 2022 and February 28, 2022, respectively: Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Marketable Securities – May 31, 2022 $ 3,398,931 $ — $ — $ 3,398,931 Marketable Securities – February 28, 2022 $ 5,716,338 $ 151,652 $ — $ 5,867,990 Marketable Securities include certificates of deposit and US Treasury securities that are considered to be highly liquid and easily tradeable totaling $ 3,398,931 5,867,990 Income Taxes Intangible Assets - seventeen twelve 195,038 192,490 11,000 Inventories - Land and Buildings Long-Lived Assets - No Management Estimates - New Accounting Pronouncements Other than Accounting Standards Update (“ASU”) 2019-12 and ASU 2016-13 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 Research and Product Development Expenses - Revenue Recognition · Identification of the contract, or contracts, with a customer · Identification of the performance obligations in the contract · Determination of the transaction price · Allocation of the transaction price to the performance obligations in the contract · Recognition of revenue when, or as, performance obligations are satisfied Shipping and Handling Costs Stock-Based Compensation ASC 718 requires the recognition of the fair value of stock compensation expense to be recognized over the vesting term of such award. The Company accounts for forfeitures as they occur. Uncertainties -

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	May 31, 2022
Revenue from Contract with Customer [Abstract]
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 applies the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one-year or less. At May 31, 2022, the Company had received $ 1,665,000 21,000 the Company was utilizing $21,000 of its available credit line to collateralize these letters of credit At February 28, 2022, the Company had received $ 1,168,000 959,000 The Company’s sales revenue, by product line is as follows: Revenue Recognition - Sales Revenue by Product Line Three Months Ended May 31, 2022 % of total 2021 % of total Fluxing Systems $ 309,000 8 $ 358,000 10 Integrated Coating Systems 168,000 4 155,000 4 Multi-Axis Coating Systems 1,979,000 49 2,079,000 57 OEM Systems 554,000 14 326,000 9 Spare Parts, Services and Other 1,042,000 25 726,000 20 TOTAL $ 4,052,000 $ 3,644,000

INVENTORIES

INVENTORIES	3 Months Ended
	May 31, 2022
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 4: INVENTORIES Inventories consist of the following: Inventories - Schedule of Inventory, Current May 31, February 28, 2022 2022 Raw materials and subassemblies $ 1,676,995 $ 1,439,465 Finished goods 858,885 918,318 Work in process 684,977 343,120 Total 3,220,857 2,700,903 Less: Allowance (327,661 ) (327,661 ) Net inventories $ 2,893,196 $ 2,373,242

STOCK OPTIONS

STOCK OPTIONS	3 Months Ended
	May 31, 2022
Equity [Abstract]
STOCK OPTIONS	NOTE 5: STOCK OPTIONS Stock Options 2,500,000 ten 242,659 51,690 are vested. 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 10,000

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	3 Months Ended
	May 31, 2022
Equity [Abstract]
STOCK BASED COMPENSATION	NOTE 6: STOCK BASED COMPENSATION During the three months ended May 31, 2022, the Company granted options to acquire 1,408 5.80 three ten 3.55 The weighted-average fair value of options are estimated on the date of grant using the Black-Scholes options-pricing model. The weighted-average Black-Scholes assumptions are as follows: Weighted-average Black-Scholes assumptions Three Months Ended Expected Life 8 Risk free interest rate 2.82 Expected volatility 55.02 Expected dividend yield 0 For the three months ended May 31, 2022 and 2021, net income and earnings per share reflect the actual expense for stock-based compensation. The impact of applying ASC 718 approximated $ 69,000 22,000

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	May 31, 2022
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 7: EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Earnings Per Share - Computation of basic and diluted earnings per share Three Months Ended May 31, 2022 2021 Numerator for basic and diluted earnings per share $ 305,636 $ 1,266,752 Denominator for basic earnings per share - weighted average 15,729,175 15,494,421 Effects of dilutive securities: Stock options for employees, directors and outside consultants 23,249 169,351 Denominator for diluted earnings per share 15,752,424 15,663,772 Basic Earnings Per Share $ 0.02 $ 0.08 Diluted Earnings Per Share $ 0.02 $ 0.08

REVOLVING LINE OF CREDIT

REVOLVING LINE OF CREDIT	3 Months Ended
	May 31, 2022
Debt Disclosure [Abstract]
REVOLVING LINE OF CREDIT	NOTE 8: REVOLVING LINE OF CREDIT The Company has a $ 1,500,000 4.00 3.25 The revolving credit line is collateralized by the Company’s accounts receivable and inventory. As of May 31, 2022, $ 21,000 no 1,479,000

CUSTOMER CONCENTRATIONS AND FOR

CUSTOMER CONCENTRATIONS AND FOREIGN SALES	3 Months Ended
	May 31, 2022
Risks and Uncertainties [Abstract]
CUSTOMER CONCENTRATIONS AND FOREIGN SALES	NOTE 9: CUSTOMER CONCENTRATIONS AND FOREIGN SALES Export sales to customers located outside the United States and Canada were approximately as follows: Customer Concentrations and Foreign Sales - Schedule of Customer Concentrations and Foreign Sales May 31, May 31, Asia Pacific (APAC) Asia Pacific (APAC) 706,000 1,222,000 Europe, Middle East, Asia (EMEA) Europe, Middle East, Asia (EMEA) 990,000 842,000 Latin America Latin America 418,000 352,000 $ 2,114,000 $ 2,416,000 During the three months ended May 31, 2022 and 2021, sales to foreign customers accounted for approximately $ 2,114,000 2,416,000 52 66 The Company had seven customers which accounted for 40 46 The Company had three customers which accounted for 33 54

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	May 31, 2022
Accounting Policies [Abstract]
Accounts Receivable, net	Accounts Receivable, net
Cash and Cash Equivalents	Cash and Cash Equivalents -
Consolidation	Consolidation
Earnings Per Share	Earnings Per Share -
Equipment, Furnishings and Leasehold Improvements	Equipment, Furnishings and Leasehold Improvements straight-line method three to five years
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair Value Measurement The carrying amounts of financial instruments reported in the accompanying unaudited condensed consolidated financial statements for current assets and current liabilities approximate the fair value because of the immediate or short-term maturities of the financial instruments. The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. The fair values of financial assets of the Company were determined using the following categories at May 31, 2022 and February 28, 2022, respectively: Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Marketable Securities – May 31, 2022 $ 3,398,931 $ — $ — $ 3,398,931 Marketable Securities – February 28, 2022 $ 5,716,338 $ 151,652 $ — $ 5,867,990 Marketable Securities include certificates of deposit and US Treasury securities that are considered to be highly liquid and easily tradeable totaling $ 3,398,931 5,867,990
Income Taxes	Income Taxes
Intangible Assets	Intangible Assets - seventeen twelve 195,038 192,490 11,000
Inventories	Inventories -
Land and Buildings	Land and Buildings
Long-Lived Assets	Long-Lived Assets - No
Management Estimates	Management Estimates -
New Accounting Pronouncements	New Accounting Pronouncements Other than Accounting Standards Update (“ASU”) 2019-12 and ASU 2016-13 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
Research and Product Development Expenses	Research and Product Development Expenses -
Revenue Recognition	Revenue Recognition · Identification of the contract, or contracts, with a customer · Identification of the performance obligations in the contract · Determination of the transaction price · Allocation of the transaction price to the performance obligations in the contract · Recognition of revenue when, or as, performance obligations are satisfied
Shipping and Handling Costs	Shipping and Handling Costs
Stock-Based Compensation	Stock-Based Compensation ASC 718 requires the recognition of the fair value of stock compensation expense to be recognized over the vesting term of such award. The Company accounts for forfeitures as they occur.
Uncertainties	Uncertainties -

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	May 31, 2022
Accounting Policies [Abstract]
Significant Accounting Policies - Fair values of financial assets of the Company	The fair values of financial assets of the Company were determined using the following categories at May 31, 2022 and February 28, 2022, respectively: Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Marketable Securities – May 31, 2022 $ 3,398,931 $ — $ — $ 3,398,931 Marketable Securities – February 28, 2022 $ 5,716,338 $ 151,652 $ — $ 5,867,990

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	May 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition - Sales Revenue by Product Line	The Company’s sales revenue, by product line is as follows: Revenue Recognition - Sales Revenue by Product Line Three Months Ended May 31, 2022 % of total 2021 % of total Fluxing Systems $ 309,000 8 $ 358,000 10 Integrated Coating Systems 168,000 4 155,000 4 Multi-Axis Coating Systems 1,979,000 49 2,079,000 57 OEM Systems 554,000 14 326,000 9 Spare Parts, Services and Other 1,042,000 25 726,000 20 TOTAL $ 4,052,000 $ 3,644,000

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	May 31, 2022
Inventory Disclosure [Abstract]
Inventories - Schedule of Inventory, Current	Inventories consist of the following: Inventories - Schedule of Inventory, Current May 31, February 28, 2022 2022 Raw materials and subassemblies $ 1,676,995 $ 1,439,465 Finished goods 858,885 918,318 Work in process 684,977 343,120 Total 3,220,857 2,700,903 Less: Allowance (327,661 ) (327,661 ) Net inventories $ 2,893,196 $ 2,373,242

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	3 Months Ended
	May 31, 2022
Equity [Abstract]
Weighted-average Black-Scholes assumptions	The weighted-average fair value of options are estimated on the date of grant using the Black-Scholes options-pricing model. The weighted-average Black-Scholes assumptions are as follows: Weighted-average Black-Scholes assumptions Three Months Ended Expected Life 8 Risk free interest rate 2.82 Expected volatility 55.02 Expected dividend yield 0

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	May 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share - Computation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted earnings per share: Earnings Per Share - Computation of basic and diluted earnings per share Three Months Ended May 31, 2022 2021 Numerator for basic and diluted earnings per share $ 305,636 $ 1,266,752 Denominator for basic earnings per share - weighted average 15,729,175 15,494,421 Effects of dilutive securities: Stock options for employees, directors and outside consultants 23,249 169,351 Denominator for diluted earnings per share 15,752,424 15,663,772 Basic Earnings Per Share $ 0.02 $ 0.08 Diluted Earnings Per Share $ 0.02 $ 0.08

CUSTOMER CONCENTRATIONS AND F_2

CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Tables)	3 Months Ended
	May 31, 2022
Risks and Uncertainties [Abstract]
Customer Concentrations and Foreign Sales - Schedule of Customer Concentrations and Foreign Sales	Export sales to customers located outside the United States and Canada were approximately as follows: Customer Concentrations and Foreign Sales - Schedule of Customer Concentrations and Foreign Sales May 31, May 31, Asia Pacific (APAC) Asia Pacific (APAC) 706,000 1,222,000 Europe, Middle East, Asia (EMEA) Europe, Middle East, Asia (EMEA) 990,000 842,000 Latin America Latin America 418,000 352,000 $ 2,114,000 $ 2,416,000

Significant Accounting Polici_4

Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($)	May 31, 2022	Feb. 28, 2022
Marketable Securities	$ 3,398,931	$ 5,867,990
Level 1
Marketable Securities	3,398,931	5,716,338
Level 2
Marketable Securities		151,652
Level 3
Marketable Securities

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	May 31, 2022	May 31, 2021	Feb. 28, 2022
Marketable securities including mutual funds, certificates of deposit and US Treasury securities	$ 3,398,931		$ 5,867,990
Accumulated amortization of patents	195,038		$ 192,490
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
Impairment losses	$ 0	$ 0
Domestic Patents
Useful life of intangible assets	17 years
Foreign Patents
Useful life of intangible assets	12 years
Equipment and Furnishings
Depreciation methods	straight-line method
Estimated useful lives	three to five years

Revenue Recognition - Sales Rev

Revenue Recognition - Sales Revenue by Product Line (Details) - USD ($)	3 Months Ended
	May 31, 2022	May 31, 2021
Disaggregation of Revenue [Line Items]
Sales revenue	$ 4,051,535	$ 3,644,468
Fluxing Systems
Disaggregation of Revenue [Line Items]
Sales revenue	$ 309,000	$ 358,000
Sales revenue, percent	8%	10%
Integrated Coating Systems
Disaggregation of Revenue [Line Items]
Sales revenue	$ 168,000	$ 155,000
Sales revenue, percent	4%	4%
Multi-Axis Coating Systems
Disaggregation of Revenue [Line Items]
Sales revenue	$ 1,979,000	$ 2,079,000
Sales revenue, percent	49%	57%
OEM Systems
Disaggregation of Revenue [Line Items]
Sales revenue	$ 554,000	$ 326,000
Sales revenue, percent	14%	9%
Other Product Line
Disaggregation of Revenue [Line Items]
Sales revenue	$ 1,042,000	$ 726,000
Sales revenue, percent	25%	20%
Total Product Line
Disaggregation of Revenue [Line Items]
Sales revenue	$ 4,052,000	$ 3,644,000

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative) - USD ($)	3 Months Ended	15 Months Ended
	May 31, 2022	May 31, 2022	Feb. 28, 2022
Revenue from Contract with Customer [Abstract]
Cash deposits	$ 1,665,000	$ 1,665,000	$ 1,168,000
Letter of credit	$ 21,000	21,000
Letter of credit, collateral description	the Company was utilizing $21,000 of its available credit line to collateralize these letters of credit
Revenue recognized		$ 959,000

Inventories - Schedule of Inven

Inventories - Schedule of Inventory, Current (Details) - USD ($)	May 31, 2022	Feb. 28, 2022
Inventory Disclosure [Abstract]
Raw materials and subassemblies	$ 1,676,995	$ 1,439,465
Finished goods	858,885	918,318
Work in process	684,977	343,120
Total	3,220,857	2,700,903
Less: Allowance	(327,661)	(327,661)
Net inventories	$ 2,893,196	$ 2,373,242

STOCK OPTIONS (Details Narrativ

STOCK OPTIONS (Details Narrative)	3 Months Ended
	May 31, 2022 shares
2013 Stock Incentive Plan ("2013 Plan")
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options shares available for grants	2,500,000
Options, expiration period	10 years
Stock options, outstanding	242,659
Stock options, vested	51,690
2003 Stock Incentive Plan ("2003 Plan")
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options shares available for grants	1,500,000
Stock options, outstanding	10,000

Weighted-average Black-Scholes

Weighted-average Black-Scholes assumptions (Details)	3 Months Ended
	May 31, 2022
Equity [Abstract]
Expected life (in years)	8 years
Risk free interest rate	2.82%
Expected volatility	55.02%
Expected dividend yield	0%

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended
	May 31, 2022	May 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted	23,249	169,351
Stock-based compensation expense	$ 69,000	$ 22,000
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted	1,408
Options, exercisable price	$ 5.80
Employees And Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, vesting period	3 years
Options, expiration period	10 years
Weighted average grant date fair value, per share	$ 3.55

Earnings Per Share - Computatio

Earnings Per Share - Computation of basic and diluted earnings per share (Details) - USD ($)	3 Months Ended
	May 31, 2022	May 31, 2021
Earnings Per Share [Abstract]
Numerator for basic and diluted earnings per share	$ 305,636	$ 1,266,752
Denominator for basic earnings per share - weighted average	15,729,175	15,494,421
Effects of dilutive securities:
Stock options for employees, directors and outside consultants	23,249	169,351
Denominator for diluted earnings per share	15,752,424	15,663,772
Basic Earnings Per Share	$ 0.02	$ 0.08
Diluted Earnings Per Share	$ 0.02	$ 0.08

REVOLVING LINE OF CREDIT (Detai

REVOLVING LINE OF CREDIT (Details Narrative) - USD ($)	3 Months Ended
	May 31, 2022	Feb. 28, 2022
Line of Credit Facility [Line Items]
Revolving credit line collateral	the Company was utilizing $21,000 of its available credit line to collateralize these letters of credit
Outstanding borrowings	$ 21,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Revolving line of credit	$ 1,500,000
Interest rate	4%	3.25%
Revolving credit line collateral	The revolving credit line is collateralized by the Company’s accounts receivable and inventory.
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Credit line utilized to collateralize letter of credit issued to customers	$ 21,000
Outstanding borrowings	0
Unused portion of credit line	$ 1,479,000

Customer Concentrations and F_3

Customer Concentrations and Foreign Sales - Schedule of Customer Concentrations and Foreign Sales (Details) - USD ($)	3 Months Ended
	May 31, 2022	May 31, 2021
Total sales	$ 2,114,000	$ 2,416,000
Asia Pacific (APAC)
Total sales	706,000	1,222,000
Europe, Middle East, Asia (EMEA)
Total sales	990,000	842,000
Latin America
Total sales	$ 418,000	$ 352,000

CUSTOMER CONCENTRATIONS AND F_4

CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Details Narrative) - USD ($)	3 Months Ended
	May 31, 2022	May 31, 2021
Concentration Risk [Line Items]
Sales revenue	$ 4,051,535	$ 3,644,468
Revenue Benchmark [Member] | Foreign Customers
Concentration Risk [Line Items]
Sales revenue	$ 2,114,000	$ 2,416,000
Sales revenue, percent	52%	66%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Seven Customers [Member]
Concentration Risk [Line Items]
Outstanding accounts receivables, percent	40%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customers [Member]
Concentration Risk [Line Items]
Outstanding accounts receivables, percent		33%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customers [Member]
Concentration Risk [Line Items]
Outstanding accounts receivables, percent	46%	54%