Sono-Tek (SOTK) 10-Q 16 Jan 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Nov. 30, 2023	Jan. 12, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Nov. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
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		15,745,206

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Current Assets:
Cash and cash equivalents	$ 2,981,931	$ 3,354,601
Marketable securities	9,609,444	8,090,000
Accounts receivable (less allowance of $12,225)	1,762,309	1,633,866
Inventories	4,252,550	3,242,909
Prepaid expenses and other current assets	81,785	254,046
Total current assets	18,688,019	16,575,422
Land	250,000	250,000
Buildings, equipment, furnishings and leasehold improvements, net	2,850,100	2,624,996
Intangible assets, net	51,674	57,202
Deferred tax asset	842,010	667,098
TOTAL ASSETS	22,681,803	20,174,718
Current Liabilities:
Accounts payable	1,504,382	810,863
Accrued expenses	1,720,020	1,427,446
Customer deposits	3,143,009	2,838,165
Income taxes payable	248,152	381,421
Total current liabilities	6,615,563	5,457,895
Deferred tax liability		82,865
Total liabilities	6,615,563	5,540,760
Stockholders’ Equity
Common stock, $.01 par value; 25,000,000 shares authorized, 15,745,206 and 15,742,073 shares issued and outstanding, respectively	157,452	157,421
Additional paid-in capital	9,714,301	9,566,898
Accumulated earnings	6,194,487	4,909,639
Total stockholders’ equity	16,066,240	14,633,958
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 22,681,803	$ 20,174,718

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful receivables	$ 12,225	$ 12,225
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	15,745,206	15,742,073
Common stock, shares outstanding	15,745,206	15,742,073

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Income Statement [Abstract]
Net Sales	$ 5,690,022	$ 3,586,165	$ 14,932,157	$ 11,401,029
Cost of Goods Sold	2,764,013	1,761,797	7,428,348	5,574,035
Gross Profit	2,926,009	1,824,368	7,503,809	5,826,994
Operating Expenses
Research and product development costs	776,013	520,187	2,221,712	1,543,310
Marketing and selling expenses	955,017	792,710	2,700,327	2,359,430
General and administrative costs	474,457	407,990	1,387,006	1,262,670
Total Operating Expenses	2,205,487	1,720,887	6,309,045	5,165,410
Operating Income	720,522	103,481	1,194,764	661,584
Interest and Dividend Income	149,666	38,803	379,949	64,725
Net unrealized gain/(loss) on marketable securities	20,176	(9,231)	31,031	(40,256)
Income Before Income Taxes	890,364	133,053	1,605,744	686,053
Income Tax Expense	200,195	28,155	320,896	113,396
Net Income	$ 690,169	$ 104,898	$ 1,284,848	$ 572,657
Basic Earnings Per Share	$ 0.04	$ 0.01	$ 0.08	$ 0.04
Diluted Earnings Per Share	$ 0.04	$ 0.01	$ 0.08	$ 0.04
Weighted Average Shares - Basic	15,744,543	15,738,180	15,743,224	15,733,284
Weighted Average Shares - Diluted	15,776,972	15,773,370	15,775,675	15,764,351

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, 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
Stock based compensation expense		60,858		60,858
Cashless exercise of stock options	$ 73	(73)
Cashless exercise of stock options, shares	7,345
Net income			104,898	104,898
Ending balance, value at Nov. 30, 2022	$ 157,421	9,483,417	4,846,391	14,487,229
Ending balance, shares at Nov. 30, 2022	15,742,073
Beginning balance, value at Feb. 28, 2023	$ 157,421	9,566,898	4,909,639	14,633,958
Beginning balance, shares at Feb. 28, 2023	15,742,073
Stock based compensation expense		48,295		48,295
Net income			53,406	53,406
Ending balance, value at May. 31, 2023	$ 157,421	9,615,193	4,963,045	14,735,659
Ending balance, shares at May. 31, 2023	15,742,073
Stock based compensation expense		46,394		46,394
Cashless exercise of stock options	$ 14	(14)
Cashless exercise of stock options, shares	1,410
Net income			541,273	541,273
Ending balance, value at Aug. 31, 2023	$ 157,435	9,661,573	5,504,318	15,323,326
Ending balance, shares at Aug. 31, 2023	15,743,483
Stock based compensation expense		52,745		52,745
Cashless exercise of stock options	$ 17	(17)
Cashless exercise of stock options, shares	1,723
Net income			690,169	690,169
Ending balance, value at Nov. 30, 2023	$ 157,452	$ 9,714,301	$ 6,194,487	$ 16,066,240
Ending balance, shares at Nov. 30, 2023	15,745,206

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 1,284,848	$ 572,657
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	428,345	366,238
Stock based compensation expense	147,434	173,259
Inventory reserve	41,475	(14,854)
Unrealized (gain) loss on marketable securities	(31,031)	40,256
Deferred tax benefit - net	(257,777)	(178,281)
(Decrease) Increase in:
Accounts receivable	(128,443)	(348,693)
Inventories	(1,051,116)	(872,315)
Prepaid expenses and other current assets	172,261	172,673
Accounts payable	372,175	468,168
Accrued expenses	292,574	(110,717)
Customer deposits	304,844	580,680
Income taxes payable	(133,269)	145,487
Net Cash Provided by Operating Activities	1,442,320	994,558
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment, furnishings and leasehold improvements	(326,577)	(413,521)
Sale of marketable securities	14,118,735	8,591,777
Purchase of marketable securities	(15,607,148)	(10,837,335)
Net Cash Used in Investing Activities	(1,814,990)	(2,659,079)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(372,670)	(1,664,521)
CASH AND CASH EQUIVALENTS
Beginning of period	3,354,601	4,840,558
End of period	2,981,931	3,176,037
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid
Income Taxes Paid	712,092	159,490
Non-cash investing transactions:
Purchases of equipment included in Accounts payable on the balance sheet	$ 321,345

BUSINESS DESCRIPTION

BUSINESS DESCRIPTION	9 Months Ended
	Nov. 30, 2023
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, 2023 (“fiscal year 2023”) contained in the Company’s 2023 Annual Report on Form 10-K filed with the SEC on May 25, 2023. The Company’s current fiscal year ends on February 29, 2024 (“fiscal 2024”).

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Nov. 30, 2023
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents - 2,666,264 Consolidation 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 November 30, 2023 and February 28, 2023, respectively: Schedule of Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Marketable Securities – November 30, 2023 $ 9,259,000 $ 350,000 $ — $ 9,609,000 Marketable Securities – February 28, 2023 $ 7,361,000 $ 729,000 $ — $ 8,090,000 Marketable Securities include mutual funds, certificates of deposit and US Treasury securities, totaling $ 9,609,000 8,090,000 Income Taxes no Inventories Land and Buildings At November 30, 2023 and February 28, 2023, the Company had land stated at cost of $ 250,000 At November 30, 2023 and February 28, 2023, the Company had buildings, equipment, furnishings and leasehold improvements totaling, $ 2,850,100 2,624,996 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 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 Uncertainties

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Nov. 30, 2023
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 are primarily 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 November 30, 2023, the Company had received approximately $ 3,143,000 60,294 60,294 At February 28, 2023, the Company had received $ 2,838,000 2,633,000 The Company’s sales revenue by product line is as follows: Schedule of Revenue Recognition - Sales Revenue by Product Line Three Months Ended Nine Months Ended 2023 % of total 2022 % of total 2023 % of total 2022 % of total Fluxing Systems $ 62,000 1% $ 252,000 7% $ 503,000 4% $ 960,000 8% Integrated Coating Systems 1,418,000 25% 193,000 5% 2,579,000 17% 787,000 7% Multi-Axis Coating Systems 2,962,000 52% 1,493,000 42% 7,648,000 51% 4,962,000 44% OEM Systems 268,000 5% 503,000 14% 1,078,000 7% 1,819,000 16% Other 980,000 17% 1,145,000 32% 3,124,000 21% 2,873,000 25% TOTAL $ 5,690,000 $ 3,586,000 $ 14,932,000 $ 11,401,000

INVENTORIES

INVENTORIES	9 Months Ended
	Nov. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 4: INVENTORIES Inventories consist of the following: Schedule of Inventory, Current November 30, February 28, 2023 2023 Raw materials and subassemblies $ 2,030,752 $ 1,868,689 Finished goods 975,447 613,915 Work in process 1,246,351 760,305 Net inventories $ 4,252,550 $ 3,242,909 The Company maintains an allowance for slow moving inventory for raw materials and finished goods. The recorded allowances at November 30, 2023 and February 28, 2023, totaled $ 374,000 332,525

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Nov. 30, 2023
Equity [Abstract]
STOCK-BASED COMPENSATION	NOTE 5: STOCK-BASED COMPENSATION Stock Options - 2,500,000 247,483 171,704 In August 2023, the Company’s shareholders approved the Company’s 2023 Stock Incentive Plan (the “2023 Plan”) under which 2,500,000 58,810 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 nine months ended November 30, 2023, the Company granted options to acquire 47,830 4.79 5.60 4.79 3 10 3.06 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 Nine Months Ended Expected Life 5 8 Risk free interest rate 2.82% 4.39% Expected volatility 55.02% 62.48% Expected dividend yield 0% For the three and nine months ended November 30, 2023 and 2022, net income and earnings per share reflect the actual deduction for stock-based compensation expense. For the three months ended November 30, 2023 and 2022, the Company recognized approximately $ 53,000 61,000 147,000 173,000

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Nov. 30, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 6: 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 Nine Months Ended Three Months Ended 2023 2022 2023 2022 Numerator for basic and diluted earnings per share $ 1,284,848 $ 572,657 $ 690,169 $ 104,898 Denominator for basic earnings per share – weighted average 15,743,224 15,733,284 15,744,543 15,738,180 Effects of dilutive securities Stock options for employees and directors 32,451 31,067 32,429 35,190 Denominator for diluted earnings per share 15,775,675 15,764,351 15,776,972 15,773,370 Basic earnings per share $ 0.08 $ 0.04 $ 0.04 $ 0.01 Diluted earnings per share $ 0.08 $ 0.04 $ 0.04 $ 0.01

REVOLVING LINE OF CREDIT

REVOLVING LINE OF CREDIT	9 Months Ended
	Nov. 30, 2023
Debt Disclosure [Abstract]
REVOLVING LINE OF CREDIT	NOTE 7: REVOLVING LINE OF CREDIT The Company has a $ 1,500,000 8.50% 7.75% 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 November 30, 2023, $ 60,294 no 1,439,706

CUSTOMER CONCENTRATIONS AND FOR

CUSTOMER CONCENTRATIONS AND FOREIGN SALES	9 Months Ended
	Nov. 30, 2023
Risks and Uncertainties [Abstract]
CUSTOMER CONCENTRATIONS AND FOREIGN SALES	NOTE 8: 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 Nine Months Ended Three Months Ended 2023 2022 2023 2022 Asia Pacific (APAC) $ 1,790,000 $ 2,367,000 $ 681,000 $ 834,000 Europe, Middle East, Asia (EMEA) 3,057,000 2,557,000 1,476,000 731,000 Latin America 1,097,000 1,301,000 112,000 436,000 $ 5,944,000 $ 6,225,000 $ 2,269,000 $ 2,001,000 In the first nine months of fiscal 2024 and fiscal 2023, sales to foreign customers accounted for approximately $ 5,944,000 6,225,000 40% 55% During the third quarter of fiscal 2024 and fiscal 2023, sales to foreign customers accounted for approximately $ 2,269,000 2,001,000 40% 56% The Company had no customers that accounted for more than 10% of sales during the first nine months of fiscal 2024. The Company had one customer which accounted for 13% 25% The Company had two customers which accounted for 14% 21% 44%

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Nov. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9: COMMITMENTS AND CONTINGENCIES The Company did not have any material commitments or contingencies as of November 30, 2023. The Company is subject, from time to time, to claims by third parties under various legal disputes. The defense of such claims, or any adverse outcome relating to any such claims, could have a material adverse effect on the Company’s liquidity, financial condition, and cash flows. As of November 30, 2023, the Company did not have any pending legal actions.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Nov. 30, 2023
Accounting Policies [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents - 2,666,264
Consolidation	Consolidation
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 November 30, 2023 and February 28, 2023, respectively: Schedule of Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Marketable Securities – November 30, 2023 $ 9,259,000 $ 350,000 $ — $ 9,609,000 Marketable Securities – February 28, 2023 $ 7,361,000 $ 729,000 $ — $ 8,090,000 Marketable Securities include mutual funds, certificates of deposit and US Treasury securities, totaling $ 9,609,000 8,090,000
Income Taxes	Income Taxes no
Inventories	Inventories
Land and Buildings	Land and Buildings At November 30, 2023 and February 28, 2023, the Company had land stated at cost of $ 250,000 At November 30, 2023 and February 28, 2023, the Company had buildings, equipment, furnishings and leasehold improvements totaling, $ 2,850,100 2,624,996
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
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
Uncertainties	Uncertainties

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Nov. 30, 2023
Accounting Policies [Abstract]
Schedule of 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 November 30, 2023 and February 28, 2023, respectively: Schedule of Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Marketable Securities – November 30, 2023 $ 9,259,000 $ 350,000 $ — $ 9,609,000 Marketable Securities – February 28, 2023 $ 7,361,000 $ 729,000 $ — $ 8,090,000

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Nov. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Revenue Recognition - Sales Revenue by Product Line	The Company’s sales revenue by product line is as follows: Schedule of Revenue Recognition - Sales Revenue by Product Line Three Months Ended Nine Months Ended 2023 % of total 2022 % of total 2023 % of total 2022 % of total Fluxing Systems $ 62,000 1% $ 252,000 7% $ 503,000 4% $ 960,000 8% Integrated Coating Systems 1,418,000 25% 193,000 5% 2,579,000 17% 787,000 7% Multi-Axis Coating Systems 2,962,000 52% 1,493,000 42% 7,648,000 51% 4,962,000 44% OEM Systems 268,000 5% 503,000 14% 1,078,000 7% 1,819,000 16% Other 980,000 17% 1,145,000 32% 3,124,000 21% 2,873,000 25% TOTAL $ 5,690,000 $ 3,586,000 $ 14,932,000 $ 11,401,000

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Nov. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following: Schedule of Inventory, Current November 30, February 28, 2023 2023 Raw materials and subassemblies $ 2,030,752 $ 1,868,689 Finished goods 975,447 613,915 Work in process 1,246,351 760,305 Net inventories $ 4,252,550 $ 3,242,909

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Nov. 30, 2023
Equity [Abstract]
Schedule of 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: Schedule of weighted-average Black-Scholes assumptions Nine Months Ended Expected Life 5 8 Risk free interest rate 2.82% 4.39% Expected volatility 55.02% 62.48% Expected dividend yield 0%

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Nov. 30, 2023
Earnings Per Share [Abstract]
Schedule of Computation of basic and diluted 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 Nine Months Ended Three Months Ended 2023 2022 2023 2022 Numerator for basic and diluted earnings per share $ 1,284,848 $ 572,657 $ 690,169 $ 104,898 Denominator for basic earnings per share – weighted average 15,743,224 15,733,284 15,744,543 15,738,180 Effects of dilutive securities Stock options for employees and directors 32,451 31,067 32,429 35,190 Denominator for diluted earnings per share 15,775,675 15,764,351 15,776,972 15,773,370 Basic earnings per share $ 0.08 $ 0.04 $ 0.04 $ 0.01 Diluted earnings per share $ 0.08 $ 0.04 $ 0.04 $ 0.01

CUSTOMER CONCENTRATIONS AND F_2

CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Tables)	9 Months Ended
	Nov. 30, 2023
Risks and Uncertainties [Abstract]
Schedule of 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 Nine Months Ended Three Months Ended 2023 2022 2023 2022 Asia Pacific (APAC) $ 1,790,000 $ 2,367,000 $ 681,000 $ 834,000 Europe, Middle East, Asia (EMEA) 3,057,000 2,557,000 1,476,000 731,000 Latin America 1,097,000 1,301,000 112,000 436,000 $ 5,944,000 $ 6,225,000 $ 2,269,000 $ 2,001,000

Schedule of Significant Account

Schedule of Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Platform Operator, Crypto-Asset [Line Items]
Marketable Securities	$ 9,609,000	$ 8,090,000
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto-Asset [Line Items]
Marketable Securities	9,259,000	7,361,000
Fair Value, Inputs, Level 2 [Member]
Platform Operator, Crypto-Asset [Line Items]
Marketable Securities	350,000	729,000
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto-Asset [Line Items]
Marketable Securities	$ 0	$ 0

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Accounting Policies [Abstract]
Bank deposits exceeding the FDIC insured limit	$ 2,666,264
Marketable securities	9,609,000	$ 8,090,000
Accruals for uncertain tax positions	0	0
Land	250,000	250,000
Buildings, equipment, furnishings and leasehold improvements, net	$ 2,850,100	$ 2,624,996

Schedule of Revenue Recognition

Schedule of Revenue Recognition - Sales Revenue by Product Line (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Disaggregation of Revenue [Line Items]
Sales revenue	$ 5,690,022	$ 3,586,165	$ 14,932,157	$ 11,401,029
Fluxing Systems [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 62,000	$ 252,000	$ 503,000	$ 960,000
Sales revenue, percent	1%	7%	4%	8%
Integrated Coating Systems [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 1,418,000	$ 193,000	$ 2,579,000	$ 787,000
Sales revenue, percent	25%	5%	17%	7%
Multi-Axis Coating Systems [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 2,962,000	$ 1,493,000	$ 7,648,000	$ 4,962,000
Sales revenue, percent	52%	42%	51%	44%
OEM Systems [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 268,000	$ 503,000	$ 1,078,000	$ 1,819,000
Sales revenue, percent	5%	14%	7%	16%
Other [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 980,000	$ 1,145,000	$ 3,124,000	$ 2,873,000
Sales revenue, percent	17%	32%	21%	25%
Total [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 5,690,000	$ 3,586,000	$ 14,932,000	$ 11,401,000

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2023	Feb. 28, 2023
Line of Credit Facility [Line Items]
Cash deposits	$ 3,143,000	$ 2,838,000
Revenue recognized	2,633,000
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Letter of credit	60,294
Available credit line	$ 60,294

Schedule of Inventory, Current

Schedule of Inventory, Current (Details) - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Inventory Disclosure [Abstract]
Raw materials and subassemblies	$ 2,030,752	$ 1,868,689
Finished goods	975,447	613,915
Work in process	1,246,351	760,305
Net inventories	$ 4,252,550	$ 3,242,909

INVENTORIES (Details Narrative)

INVENTORIES (Details Narrative) - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Inventory Disclosure [Abstract]
Allowance for slow moving inventory	$ 374,000	$ 332,525

Schedule of weighted-average Bl

Schedule of weighted-average Black-Scholes assumptions (Details)	9 Months Ended
	Nov. 30, 2023
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	4.39%
Expected volatility	62.48%

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Aug. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted	32,429	35,190	32,451	31,067
Options, vesting period			3 years
Stock-based compensation expense	$ 53,000	$ 61,000	$ 147,000	$ 173,000
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted			47,830
Share-Based Payment Arrangement, Employee [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, exercisable price			$ 4.79
Share-Based Payment Arrangement, Employee [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, exercisable price			5.60
Share-Based Payment Arrangement, Nonemployee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, exercisable price			$ 4.79
Employees And Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, expiration period			10 years
Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted average grant date fair value, per share			$ 3.06
2013 Stock Incentive Plan ("2013 Plan") [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options shares available for grants					2,500,000
Stock options, outstanding	247,483		247,483
Stock options, vested			171,704
Stock Incentive Plan 2023 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted			2,500,000
Options outstanding			58,810

Schedule of Computation of basi

Schedule of Computation of basic and diluted earnings per share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Earnings Per Share [Abstract]
Numerator for basic and diluted earnings per share	$ 690,169	$ 104,898	$ 1,284,848	$ 572,657
Denominator for basic earnings per share – weighted average	15,744,543	15,738,180	15,743,224	15,733,284
Effects of dilutive securities
Stock options for employees and directors	32,429	35,190	32,451	31,067
Denominator for diluted earnings per share	15,776,972	15,773,370	15,775,675	15,764,351
Basic earnings per share	$ 0.04	$ 0.01	$ 0.08	$ 0.04
Diluted earnings per share	$ 0.04	$ 0.01	$ 0.08	$ 0.04

REVOLVING LINE OF CREDIT (Detai

REVOLVING LINE OF CREDIT (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2023	Feb. 28, 2023
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Revolving line of credit	$ 1,500,000	$ 1,500,000
Interest rate	8.50%	7.75%
Revolving credit line 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.
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Letter of credit	$ 60,294
Outstanding borrowings under the line of credit	0
Unused portion of credit line	$ 1,439,706

Schedule of Customer Concentrat

Schedule of Customer Concentrations and Foreign Sales (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Total sales	$ 2,269,000	$ 2,001,000	$ 5,944,000	$ 6,225,000
Asia Pacific [Member]
Total sales	681,000	834,000	1,790,000	2,367,000
EMEA [Member]
Total sales	1,476,000	731,000	3,057,000	2,557,000
Latin America [Member]
Total sales	$ 112,000	$ 436,000	$ 1,097,000	$ 1,301,000

CUSTOMER CONCENTRATIONS AND F_3

CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Concentration Risk [Line Items]
Sales revenue	$ 5,690,022	$ 3,586,165	$ 14,932,157	$ 11,401,029
Foreign Customers [Member] | Revenue Benchmark [Member]
Concentration Risk [Line Items]
Sales revenue	$ 2,269,000	$ 2,001,000	$ 5,944,000	$ 6,225,000
Sales revenue, percent	40%	56%	40%	55%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | One Customer [Member]
Concentration Risk [Line Items]
Concentration percentage	13%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member]
Concentration Risk [Line Items]
Concentration percentage		21%		14%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Customer [Member]
Concentration Risk [Line Items]
Concentration percentage			25%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Four Customers [Member]
Concentration Risk [Line Items]
Concentration percentage					44%