Sono-Tek (SOTK) 10-Q/A 17 Jan 23 2023 Q2 Quarterly report (amended) Financial data

Cover

Cover - shares	6 Months Ended
	Aug. 31, 2022	Oct. 14, 2022
Cover [Abstract]
Document Type	10-Q/A
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Aug. 31, 2022
Document Fiscal Period Focus	Q2
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
Entity Common Stock, Shares Outstanding		15,737,501

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Aug. 31, 2022	Feb. 28, 2022
Current Assets:
Cash and cash equivalents	$ 4,309,057	$ 4,840,558
Marketable securities	6,347,854	5,867,990
Accounts receivable (less allowance of $56,123)	1,977,510	1,092,505
Inventories, net	2,773,834	2,373,242
Prepaid expenses and other current assets	261,753	323,304
Total current assets	15,670,008	14,497,599
Land	250,000	250,000
Buildings, net	1,593,751	1,621,878
Equipment, furnishings and building improvements, net	986,335	939,306
Intangible assets, net	66,583	76,015
Deferred tax asset	229,679	240,736
TOTAL ASSETS	18,796,356	17,625,534
Current Liabilities:
Accounts payable	967,963	684,511
Accrued expenses	1,499,963	1,804,028
Customer deposits	1,778,752	1,167,968
Income taxes payable	62,576	58,874
Total current liabilities	4,309,254	3,715,381
Deferred tax liability	165,629	168,840
Total liabilities	4,474,883	3,884,221
Stockholders’ Equity
Common stock, $.01 par value; 25,000,000 shares authorized, 15,734,728 and 15,729,175 shares issued and outstanding, respectively	157,348	157,292
Additional paid-in capital	9,422,632	9,310,287
Accumulated earnings	4,741,493	4,273,734
Total stockholders’ equity	14,321,473	13,741,313
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 18,796,356	$ 17,625,534

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (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	15,734,728	15,729,175
Common stock, shares outstanding	15,734,728	15,729,175

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Income Statement [Abstract]
Net Sales	$ 3,763,329	$ 4,070,467	$ 7,814,864	$ 7,714,935
Cost of Goods Sold	1,867,716	1,996,468	3,812,238	3,816,771
Gross Profit	1,895,613	2,073,999	4,002,626	3,898,164
Operating Expenses
Research and product development costs	506,490	412,397	1,023,123	826,213
Marketing and selling expenses	776,858	739,603	1,566,720	1,504,245
General and administrative costs	434,687	473,423	854,680	776,222
Total Operating Expenses	1,718,035	1,625,423	3,444,523	3,106,680
Operating Income	177,578	448,576	558,103	791,484
Interest and Dividend Income	18,507	7,640	25,922	11,000
Net unrealized loss on marketable securities	(19,172)		(31,025)
Paycheck Protection Program Loan Forgiveness				1,005,372
Income Before Income Taxes	176,913	456,216	553,000	1,807,856
Income Tax Expense	14,790	112,392	85,241	197,280
Net Income	$ 162,123	$ 343,824	$ 467,759	$ 1,610,576
Basic Earnings Per Share	$ 0.01	$ 0.02	$ 0.03	$ 0.10
Diluted Earnings Per Share	$ 0.01	$ 0.02	$ 0.03	$ 0.10
Weighted Average Shares - Basic	15,732,550	15,507,484	15,730,862	15,500,952
Weighted Average Shares - Diluted	15,775,156	15,602,359	15,770,544	15,613,930

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Feb. 28, 2021	$ 154,527	$ 9,064,994	$ 1,731,161	$ 10,950,682
Beginning balance, Shares at Feb. 28, 2021	15,452,656
Stock based compensation expense		21,637		21,637
Cashless exercise of stock options	$ 499	(499)
Cashless exercise of stock options, Shares	49,901
Net Income			1,266,752	1,266,752
Ending balance, value at May. 31, 2021	$ 155,026	9,086,132	2,997,913	12,239,071
Ending balance, Shares at May. 31, 2021	15,502,557
Stock based compensation expense		19,080		19,080
Cashless exercise of stock options	$ 287	(287)
Cashless exercise of stock options, Shares	28,728
Net Income			343,824	343,824
Ending balance, value at Aug. 31, 2021	$ 155,313	9,104,925	3,341,737	12,601,975
Ending balance, Shares at Aug. 31, 2021	15,531,285
Beginning balance, value at Feb. 28, 2022	$ 157,292	9,310,287	4,273,734	13,741,313
Beginning balance, Shares 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
Ending balance, Shares at May. 31, 2022	15,729,175
Stock based compensation expense		43,032		43,032
Cashless exercise of stock options	$ 56	(56)
Cashless exercise of stock options, Shares	5,553
Net Income			162,123	162,123
Ending balance, value at Aug. 31, 2022	$ 157,348	$ 9,422,632	$ 4,741,493	$ 14,321,473
Ending balance, Shares at Aug. 31, 2022	15,734,728

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 467,759	$ 1,610,576
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	234,771	224,233
Stock based compensation expense	112,401	40,717
Inventory reserve	(10,854)	(24,919)
Paycheck Protection Program Loan Forgiveness		(1,005,372)
Unrealized loss on marketable securities	31,025
Deferred tax expense	7,846	1,167
(Decrease) Increase in:
Accounts receivable	(885,005)	275,468
Inventories	(389,738)	(287,830)
Prepaid expenses and other current assets	61,551	27,101
Accounts payable and accrued expenses	(20,613)	(563,094)
Customer deposits	610,784	750,243
Income taxes payable	3,702	148,622
Net Cash Provided by Operating Activities	223,629	1,196,912
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment, furnishings and leasehold improvements	(244,237)	(147,230)
(Purchase) Sale of marketable securities - net	(510,893)	1,009,346
Net Cash (Used in) Provided by Investing Activities	(755,130)	862,116
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(531,501)	2,059,028
CASH AND CASH EQUIVALENTS
Beginning of period	4,840,558	4,084,078
End of period	4,309,057	6,143,106
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid
Income Taxes Paid	$ 158,693	$ 47,488

BUSINESS DESCRIPTION

BUSINESS DESCRIPTION	6 Months Ended
	Aug. 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 and 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	6 Months Ended
	Aug. 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 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 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 August 31, 2022 and February 28, 2022, respectively: Schedule of Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Marketable Securities – August 31, 2022 $ 6,196,030 $ 151,824 $ — $ 6,347,854 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 $ 6,347,854 5,867,990 Income Taxes Intangible Assets - 17 12 197,585 192,490 11,000 Inventories - Land and Buildings straight-line method Long-Lived Assets - No Management Estimates - New Accounting Pronouncements Other than Accounting Standards Update 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 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 - We have encountered challenges in our supply of various materials and components, and electronic components in particular, due to well-documented shortages and constraints in the global supply chain. Lead times for ordered components may vary significantly, and some components used to manufacture our products are provided by a limited number of sources. We have experienced lengthened lead times throughout our supply chain as a result of supply chain constraints and material shortages that have occurred in the recent months, and may continue through fiscal year 2023. This has been exacerbated by the recent resurgence of the COVID-19 pandemic in certain parts of China, which has resulted in the temporary closure of manufacturing facilities, including those that make electronic parts like those that we included in our products, in certain parts of China.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Aug. 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 August 31, 2022, the Company had received $ 1,779,000 5,000 At February 28, 2022, the Company had received $ 1,168,000 1,103,000 The Company’s sales revenue by product line is as follows: Schedule of Revenue Recognition - Sales Revenue by Product Line Three Months Ended August 31, Six Months Ended August 31, 2022 % of total 2021 % of total 2022 % of total 2021 % of total Fluxing Systems $ 399,000 11% $ 117,000 3% $ 707,000 9% $ 476,000 6% Integrated Coating Systems 425,000 11% 565,000 14% 594,000 8% 720,000 9% Multi-Axis Coating Systems 1,491,000 40% 1,891,000 46% 3,470,000 44% 3,970,000 52% OEM Systems 762,000 20% 845,000 21% 1,316,000 17% 1,171,000 15% Other 686,000 18% 652,000 16% 1,728,000 22% 1,378,000 18% TOTAL $ 3,763,000 $ 4,070,000 $ 7,815,000 $ 7,715,000

INVENTORIES

INVENTORIES	6 Months Ended
	Aug. 31, 2022
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 4: INVENTORIES Inventories consist of the following: Schedule of Inventory, Current August 31, February 28, 2022 2022 Raw materials and subassemblies $ 1,560,366 $ 1,439,465 Finished goods 872,011 918,318 Work in process 658,264 343,120 Total 3,090,641 2,700,903 Less: Allowance (316,807 ) (327,661 ) Net inventories $ 2,773,834 $ 2,373,242

STOCK OPTIONS

STOCK OPTIONS	6 Months Ended
	Aug. 31, 2022
Equity [Abstract]
STOCK OPTIONS	NOTE 5: STOCK OPTIONS Under the 2013 Stock Incentive Plan ("2013 Plan"), options can be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 2,500,000 10 230,215 82,305 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 5,000 During the three and six months ended August 31, 2022, 7,250 5,553

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	6 Months Ended
	Aug. 31, 2022
Equity [Abstract]
STOCK BASED COMPENSATION	NOTE 6: STOCK BASED COMPENSATION The Company accounts for stock based compensation under ASC 718, “Share Based Payments.” which requires companies to expense the value of employee stock options and similar awards. During the six months ended August 31, 2022, the Company granted options to acquire 2,972 5.50 5.80 16,500 5.50 3 10 3.04 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: Schedule of weighted-average Black-Scholes assumptions Six Months Ended Expected Life 5 8 Risk free interest rate 2.82 3.02 Expected volatility 55.02 61.42 Expected dividend yield 0 Total compensation related to non-vested options not yet recognized as of August 31, 2022 was $ 322,000 3 For the three and six months ended August 31, 2022 and 2021, net income and earnings per share reflect the actual deduction for stock-based compensation expense. For the three months ended August 31, 2022 and 2021, the Company recognized approximately $ 43,000 19,000 112,000 41,000

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Aug. 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: Schedule of Computation of basic and diluted earnings per share Six Months Ended Three Months Ended 2022 2021 2022 2021 Numerator for basic and diluted earnings per share $ 467,759 $ 1,610,576 $ 162,123 $ 343,824 Denominator for basic earnings per share – weighted average 15,730,862 15,500,952 15,732,550 15,507,484 Effects of dilutive securities Stock options for employees, directors and outside consultants 39,682 112,978 42,606 94,875 Denominator for diluted earnings per share 15,770,544 15,613,930 15,775,156 15,602,359 Basic Earnings Per Share $ 0.03 $ 0.10 $ 0.01 $ 0.02 Diluted Earnings Per Share $ 0.03 $ 0.10 $ 0.01 $ 0.02

REVOLVING LINE OF CREDIT

REVOLVING LINE OF CREDIT	6 Months Ended
	Aug. 31, 2022
Debt Disclosure [Abstract]
REVOLVING LINE OF CREDIT	NOTE 8: REVOLVING LINE OF CREDIT The Company has a $ 1,500,000 5.50 3.25 The revolving credit line is collateralized by the Company’s accounts receivable and inventory As of August 31, 2022, $ 5,000 no 1,495,000

CUSTOMER CONCENTRATIONS AND FOR

CUSTOMER CONCENTRATIONS AND FOREIGN SALES	6 Months Ended
	Aug. 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: Schedule of Customer Concentrations and Foreign Sales Six Months Ended Three Months Ended 2022 2021 2022 2021 Asia Pacific (APAC) $ 1,533,000 $ 2,853,000 $ 827,000 $ 1,631,000 Europe, Middle East, Asia (EMEA) 1,826,000 1,436,000 836,000 593,000 Latin America 865,000 645,000 447,000 293,000 $ 4,224,000 $ 4,934,000 $ 2,110,000 $ 2,517,000 During first half of fiscal 2023 and fiscal 2022, sales to foreign customers accounted for approximately $ 4,224,000 4,934,000 54 64 During second quarter of fiscal 2023 and fiscal 2022, sales to foreign customers accounted for approximately $ 2,110,000 2,517,000 56 62 The Company had three customers which accounted for 17 24 40 The Company had two customers which accounted for 26 47 41

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Aug. 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 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 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 August 31, 2022 and February 28, 2022, respectively: Schedule of Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Marketable Securities – August 31, 2022 $ 6,196,030 $ 151,824 $ — $ 6,347,854 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 $ 6,347,854 5,867,990
Income Taxes	Income Taxes
Intangible Assets	Intangible Assets - 17 12 197,585 192,490 11,000
Inventories	Inventories -
Land and Buildings	Land and Buildings straight-line method
Long-Lived Assets	Long-Lived Assets - No
Management Estimates	Management Estimates -
New Accounting Pronouncements	New Accounting Pronouncements Other than Accounting Standards Update 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
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 - We have encountered challenges in our supply of various materials and components, and electronic components in particular, due to well-documented shortages and constraints in the global supply chain. Lead times for ordered components may vary significantly, and some components used to manufacture our products are provided by a limited number of sources. We have experienced lengthened lead times throughout our supply chain as a result of supply chain constraints and material shortages that have occurred in the recent months, and may continue through fiscal year 2023. This has been exacerbated by the recent resurgence of the COVID-19 pandemic in certain parts of China, which has resulted in the temporary closure of manufacturing facilities, including those that make electronic parts like those that we included in our products, in certain parts of China.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Aug. 31, 2022
Accounting Policies [Abstract]
Schedule of Significant Accounting Policies - Fair values of financial assets of the Company	Schedule of Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Marketable Securities – August 31, 2022 $ 6,196,030 $ 151,824 $ — $ 6,347,854 Marketable Securities – February 28, 2022 $ 5,716,338 $ 151,652 $ — $ 5,867,990

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Aug. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Revenue Recognition - Sales Revenue by Product Line	Schedule of Revenue Recognition - Sales Revenue by Product Line Three Months Ended August 31, Six Months Ended August 31, 2022 % of total 2021 % of total 2022 % of total 2021 % of total Fluxing Systems $ 399,000 11% $ 117,000 3% $ 707,000 9% $ 476,000 6% Integrated Coating Systems 425,000 11% 565,000 14% 594,000 8% 720,000 9% Multi-Axis Coating Systems 1,491,000 40% 1,891,000 46% 3,470,000 44% 3,970,000 52% OEM Systems 762,000 20% 845,000 21% 1,316,000 17% 1,171,000 15% Other 686,000 18% 652,000 16% 1,728,000 22% 1,378,000 18% TOTAL $ 3,763,000 $ 4,070,000 $ 7,815,000 $ 7,715,000

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Aug. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Schedule of Inventory, Current August 31, February 28, 2022 2022 Raw materials and subassemblies $ 1,560,366 $ 1,439,465 Finished goods 872,011 918,318 Work in process 658,264 343,120 Total 3,090,641 2,700,903 Less: Allowance (316,807 ) (327,661 ) Net inventories $ 2,773,834 $ 2,373,242

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Aug. 31, 2022
Equity [Abstract]
Schedule of weighted-average Black-Scholes assumptions	Schedule of weighted-average Black-Scholes assumptions Six Months Ended Expected Life 5 8 Risk free interest rate 2.82 3.02 Expected volatility 55.02 61.42 Expected dividend yield 0

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Aug. 31, 2022
Earnings Per Share [Abstract]
Schedule of Computation of basic and diluted earnings per share	Schedule of Computation of basic and diluted earnings per share Six Months Ended Three Months Ended 2022 2021 2022 2021 Numerator for basic and diluted earnings per share $ 467,759 $ 1,610,576 $ 162,123 $ 343,824 Denominator for basic earnings per share – weighted average 15,730,862 15,500,952 15,732,550 15,507,484 Effects of dilutive securities Stock options for employees, directors and outside consultants 39,682 112,978 42,606 94,875 Denominator for diluted earnings per share 15,770,544 15,613,930 15,775,156 15,602,359 Basic Earnings Per Share $ 0.03 $ 0.10 $ 0.01 $ 0.02 Diluted Earnings Per Share $ 0.03 $ 0.10 $ 0.01 $ 0.02

CUSTOMER CONCENTRATIONS AND F_2

CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Tables)	6 Months Ended
	Aug. 31, 2022
Risks and Uncertainties [Abstract]
Schedule of Customer Concentrations and Foreign Sales	Schedule of Customer Concentrations and Foreign Sales Six Months Ended Three Months Ended 2022 2021 2022 2021 Asia Pacific (APAC) $ 1,533,000 $ 2,853,000 $ 827,000 $ 1,631,000 Europe, Middle East, Asia (EMEA) 1,826,000 1,436,000 836,000 593,000 Latin America 865,000 645,000 447,000 293,000 $ 4,224,000 $ 4,934,000 $ 2,110,000 $ 2,517,000

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Aug. 31, 2022	Feb. 28, 2022
Marketable Securities	$ 6,347,854	$ 5,867,990
Fair Value, Inputs, Level 1 [Member]
Marketable Securities	6,196,030	5,716,338
Fair Value, Inputs, Level 2 [Member]
Marketable Securities	151,824	151,652
Fair Value, Inputs, Level 3 [Member]
Marketable Securities

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Marketable securities	$ 6,347,854		$ 5,867,990
Accumulated amortization of patents	197,585		$ 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
Estimated useful lives	three to five years
Depreciation methods	straight-line method

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Disaggregation of Revenue [Line Items]
Sales revenue	$ 3,763,329	$ 4,070,467	$ 7,814,864	$ 7,714,935
Fluxing Systems
Disaggregation of Revenue [Line Items]
Sales revenue	$ 399,000	$ 117,000	$ 707,000	$ 476,000
Sales revenue, percent	11%	3%	9%	6%
Integrated Coating Systems
Disaggregation of Revenue [Line Items]
Sales revenue	$ 425,000	$ 565,000	$ 594,000	$ 720,000
Sales revenue, percent	11%	14%	8%	9%
Multi-Axis Coating Systems
Disaggregation of Revenue [Line Items]
Sales revenue	$ 1,491,000	$ 1,891,000	$ 3,470,000	$ 3,970,000
Sales revenue, percent	40%	46%	44%	52%
OEM Systems
Disaggregation of Revenue [Line Items]
Sales revenue	$ 762,000	$ 845,000	$ 1,316,000	$ 1,171,000
Sales revenue, percent	20%	21%	17%	15%
Other Product Line
Disaggregation of Revenue [Line Items]
Sales revenue	$ 686,000	$ 652,000	$ 1,728,000	$ 1,378,000
Sales revenue, percent	18%	16%	22%	18%
Total Product Line
Disaggregation of Revenue [Line Items]
Sales revenue	$ 3,763,000	$ 4,070,000	$ 7,815,000	$ 7,715,000

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2022	Feb. 28, 2022
Revenue from Contract with Customer [Abstract]
Cash deposits	$ 1,779,000	$ 1,168,000
Letter of credit	5,000
Revenue recognized	$ 1,103,000

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Aug. 31, 2022	Feb. 28, 2022
Inventory Disclosure [Abstract]
Raw materials and subassemblies	$ 1,560,366	$ 1,439,465
Finished goods	872,011	918,318
Work in process	658,264	343,120
Total	3,090,641	2,700,903
Less: Allowance	(316,807)	(327,661)
Net inventories	$ 2,773,834	$ 2,373,242

STOCK OPTIONS (Details Narrativ

STOCK OPTIONS (Details Narrative)	3 Months Ended	6 Months Ended
	Aug. 31, 2022 shares	Aug. 31, 2022 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options exercised	7,250	5,553
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	2,500,000
Options, expiration period		10 years
Stock options, outstanding	230,215	230,215
Stock options, vested		82,305
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	1,500,000
Stock options, outstanding	5,000	5,000

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details)	6 Months Ended
	Aug. 31, 2022
Expected dividend yield	0%
Minimum [Member]
Expected life (in years)	5 years
Risk free interest rate	2.82%
Expected volatility	55.02%
Maximum [Member]
Expected life (in years)	8 years
Risk free interest rate	3.02%
Expected volatility	61.42%

STOCK BASED COMPENSATION (Det_2

STOCK BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted	42,606	94,875	39,682	112,978
Compensation related to non-vested options not yet recognized	$ 322,000		$ 322,000
Vesteing period			3 years
Stock-based compensation expense	$ 43,000	$ 19,000	$ 112,000	$ 41,000
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted			2,972
Share-Based Payment Arrangement, Option [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, exercisable price			$ 5.50
Share-Based Payment Arrangement, Option [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, exercisable price			$ 5.80
Share-Based Payment Arrangement, Nonemployee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted			16,500
Options, exercisable price			$ 5.50
Employees And Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, vesting period			3 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period			10 years
Weighted average grant date fair value, per share			$ 3.04

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Earnings Per Share [Abstract]
Numerator for basic and diluted earnings per share	$ 162,123	$ 343,824	$ 467,759	$ 1,610,576
Denominator for basic earnings per share – weighted average	15,732,550	15,507,484	15,730,862	15,500,952
Effects of dilutive securities
Stock options for employees, directors and outside consultants	42,606	94,875	39,682	112,978
Denominator for diluted earnings per share	15,775,156	15,602,359	15,770,544	15,613,930
Basic Earnings Per Share	$ 0.01	$ 0.02	$ 0.03	$ 0.10
Diluted Earnings Per Share	$ 0.01	$ 0.02	$ 0.03	$ 0.10

REVOLVING LINE OF CREDIT (Detai

REVOLVING LINE OF CREDIT (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2022	Feb. 28, 2022
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 5,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Revolving line of credit	$ 1,500,000
Interest rate	5.50%	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	$ 5,000
Outstanding borrowings	0
Unused portion of credit line	$ 1,495,000

CUSTOMER CONCENTRATIONS AND F_3

CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Total sales	$ 2,110,000	$ 2,517,000	$ 4,224,000	$ 4,934,000
Asia Pacific [Member]
Total sales	827,000	1,631,000	1,533,000	2,853,000
EMEA [Member]
Total sales	836,000	593,000	1,826,000	1,436,000
Latin America [Member]
Total sales	$ 447,000	$ 293,000	$ 865,000	$ 645,000

CUSTOMER CONCENTRATIONS AND F_4

CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Concentration Risk [Line Items]
Sales revenue	$ 3,763,329	$ 4,070,467	$ 7,814,864	$ 7,714,935
Revenue Benchmark [Member] | Foreign Customers
Concentration Risk [Line Items]
Sales revenue	$ 2,110,000	$ 2,517,000	$ 4,224,000	$ 4,934,000
Sales revenue, percent	56%	62%	54%	64%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Seven Customers [Member]
Concentration Risk [Line Items]
Outstanding accounts receivables, percent			17%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four Customers [Member]
Concentration Risk [Line Items]
Outstanding accounts receivables, percent	24%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Five Customers [Member]
Concentration Risk [Line Items]
Outstanding accounts receivables, percent		47%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customers [Member]
Concentration Risk [Line Items]
Outstanding accounts receivables, percent				26%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Five Customers [Member]
Concentration Risk [Line Items]
Outstanding accounts receivables, percent			40%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member]
Concentration Risk [Line Items]
Outstanding accounts receivables, percent					41%