Sono-Tek (SOTK) 10-Q 15 Oct 24 2025 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Aug. 31, 2024	Oct. 14, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Aug. 31, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2025
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		15,751,153

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Aug. 31, 2024	Feb. 29, 2024
Current Assets:
Cash and cash equivalents	$ 5,852,801	$ 2,134,786
Marketable securities	5,766,176	9,711,351
Accounts receivable (less allowance of $12,225)	1,879,464	1,470,711
Inventories	4,829,901	5,221,980
Prepaid expenses and other current assets	174,225	207,738
Total current assets	18,502,567	18,746,566
Land	250,000	250,000
Buildings, equipment, furnishings and leasehold improvements, net	2,691,523	2,832,156
Intangible assets, net	42,476	47,566
Deferred tax asset	1,429,271	1,255,977
TOTAL ASSETS	22,915,837	23,132,265
Current Liabilities:
Accounts payable	691,000	1,049,742
Accrued expenses	1,543,869	1,739,478
Customer deposits	3,225,273	3,419,706
Income taxes payable	96,395	414,807
Total current liabilities	5,556,537	6,623,733
Deferred tax liability	311,750	229,534
Total liabilities	5,868,287	6,853,267
Stockholders’ Equity
Common stock, $.01 par value; 25,000,000 shares authorized, 15,751,153 and 15,750,880 shares issued and outstanding as of August 31, 2024 and February 29, 2024, respectively	157,512	157,509
Additional paid-in capital	9,867,414	9,770,387
Accumulated earnings	7,022,624	6,351,102
Total stockholders’ equity	17,047,550	16,278,998
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 22,915,837	$ 23,132,265

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Aug. 31, 2024	Feb. 29, 2024
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	15,751,153	15,750,880
Common stock, shares outstanding	15,751,153	15,750,880

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Income Statement [Abstract]
Net Sales	$ 5,161,782	$ 5,639,117	$ 10,192,820	$ 9,242,135
Cost of Goods Sold	2,645,685	2,838,549	5,222,236	4,664,335
Gross Profit	2,516,097	2,800,568	4,970,584	4,577,800
Operating Expenses
Research and product development costs	695,873	789,261	1,427,303	1,445,699
Marketing and selling expenses	988,418	944,526	1,885,608	1,745,310
General and administrative costs	545,816	500,923	1,133,387	912,549
Total Operating Expenses	2,230,107	2,234,710	4,446,298	4,103,558
Operating Income	285,990	565,858	524,286	474,242
Interest and Dividend Income	85,076	124,293	227,730	230,283
Net unrealized gain/(loss) on marketable securities	43,580	(6,803)	53,941	10,855
Income Before Income Taxes	414,646	683,348	805,957	715,380
Income Tax Expense	73,961	142,075	134,435	120,701
Net Income	$ 340,685	$ 541,273	$ 671,522	$ 594,679
Basic Earnings Per Share	$ 0.02	$ 0.03	$ 0.04	$ 0.04
Diluted Earnings Per Share	$ 0.02	$ 0.03	$ 0.04	$ 0.04
Weighted Average Shares - Basic	15,750,910	15,743,069	15,750,895	15,742,571
Weighted Average Shares - Diluted	15,768,251	15,773,665	15,771,472	15,775,032

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, 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
Beginning balance, value at Feb. 29, 2024	$ 157,509	9,770,387	6,351,102	16,278,998
Beginning balance, shares at Feb. 29, 2024	15,750,880
Stock based compensation expense		54,231		54,231
Net Income			330,837	330,837
Ending balance, value at May. 31, 2024	$ 157,509	9,824,618	6,681,939	16,664,066
Ending balance, shares at May. 31, 2024	15,750,880
Stock based compensation expense		42,799		42,799
Cashless exercise of stock options	$ 3	(3)
Cashless exercise of stock options, shares	273
Net Income			340,685	340,685
Ending balance, value at Aug. 31, 2024	$ 157,512	$ 9,867,414	$ 7,022,624	$ 17,047,550
Ending balance, shares at Aug. 31, 2024	15,751,153

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 671,522	$ 594,679
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	336,377	278,823
Stock based compensation expense	97,030	94,689
Inventory reserve	22,474	21,618
Unrealized gain on marketable securities	(53,941)	(10,855)
Deferred tax expense	(91,078)	(271,163)
(Decrease) Increase in:
Accounts receivable	(408,753)	200,189
Inventories	369,604	(786,980)
Prepaid expenses and other current assets	33,513	121,952
Accounts payable	(358,742)	259,687
Accrued expenses	(195,608)	(35,254)
Customer deposits	(194,433)	556,327
Income taxes payable	(318,412)	83,072
Net Cash (Used in) Provided by Operating Activities	(90,447)	1,106,784
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment, furnishings and leasehold improvements	(190,654)	(245,837)
Sale of marketable securities	9,438,113	8,772,633
Purchase of marketable securities	(5,438,997)	(9,533,924)
Net Cash Provided by (Used in) Investing Activities	3,808,462	(1,007,128)
NET INCREASE IN CASH AND CASH EQUIVALENTS	3,718,015	99,656
CASH AND CASH EQUIVALENTS
Beginning of period	2,134,786	3,354,601
End of period	5,852,801	3,454,257
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid
Income Taxes Paid	$ 543,814	$ 308,942

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended
	Aug. 31, 2024	May 31, 2024	Aug. 31, 2023	May 31, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ 340,685	$ 330,837	$ 541,273	$ 53,406

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Aug. 31, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BUSINESS DESCRIPTION

BUSINESS DESCRIPTION	6 Months Ended
	Aug. 31, 2024
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 29, 2024 (“fiscal year 2024”) contained in the Company’s 2024 Annual Report on Form 10-K filed with the SEC on May 23, 2024 . The Company’s current fiscal year ends on February 28, 2025 (“fiscal 2025”).

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents - 1,263,000 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 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, 2024 and February 29, 2024, 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, 2024 $ 5,392,980 $ 373,196 $ — $ 5,766,176 Marketable Securities – February 29, 2024 $ 9,711,351 $ — $ — $ 9,711,351 Marketable Securities include certificates of deposit and US Treasury securities that are considered to be highly liquid and easily tradeable totaling $ 5,766,176 9,711,351 Income Taxes no Inventories - Land and Buildings At August 31, 2024 and February 29, 2024, the Company had land stated at cost of $ 250,000 At August 31, 2024 and February 29, 2024, the Company had buildings, equipment, furnishings and leasehold improvements totaling, $ 2,691,523 2,832,156 Management Estimates - Recent Accounting Pronouncements Not Yet Adopted Improvements to Income Tax Disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting 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

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Aug. 31, 2024
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	NOTE 3: REVENUE RECOGNITION 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, 2024, the Company had received approximately $ 3,225,000 At February 29, 2024, the Company had received approximately $ 3,420,000 72,000 2,641,000 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, 2024 % of total 2023 % of total 2024 % of total 2023 % of total Fluxing Systems $ 119,000 2% $ 204,000 4% $ 253,000 3% $ 440,000 5% Integrated Coating Systems 2,023,000 39% 853,000 15% 2,770,000 27% 1,162,000 12% Multi-Axis Coating Systems 1,931,000 38% 2,923,000 52% 4,595,000 45% 4,686,000 51% OEM Systems 205,000 4% 535,000 9% 537,000 5% 810,000 9% Spare Parts, Services and Other 884,000 17% 1,124,000 20% 2,038,000 20% 2,144,000 23% TOTAL $ 5,162,000 $ 5,639,000 $ 10,193,000 $ 9,242,000

INVENTORIES

INVENTORIES	6 Months Ended
	Aug. 31, 2024
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 4: INVENTORIES Inventories consist of the following: Schedule of Inventory, Current August 31, February 29, 2024 2024 Raw materials and subassemblies $ 2,218,204 $ 2,270,567 Finished goods 1,725,525 1,785,952 Work in process 886,172 1,165,461 Total $ 4,829,901 $ 5,221,980 The Company maintains an allowance for slow moving inventory for raw materials and finished goods. The recorded allowances at August 31, 2024 and February 29, 2024 totaled $ 339,250 380,400

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	6 Months Ended
	Aug. 31, 2024
Equity [Abstract]
STOCK BASED COMPENSATION	NOTE 5: STOCK BASED COMPENSATION Stock Options - 2,500,000 10 212,202 185,300 In August 2023, the Company’s shareholders approved the Company’s 2023 Stock Incentive Plan (the “2023 Plan”) under which 2,500,000 219,558 8,808 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, 2024, the Company granted options to acquire 134,657 4.12 4.87 26,667 4.12 3 10 2.54 The weighted-average fair value of options is 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 3.64% 4.39% Expected volatility 55.19% 60.34% Expected dividend yield 0% For the three and six months ended August 31, 2024, the Company recognized $ 43,000 97,000 46,000 95,000 585,000 The aggregate intrinsic value of the Company’s vested and exercisable options at August 31, 2024 was approximately $ 85,000

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Aug. 31, 2024
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 Six Months Ended Three Months Ended 2024 2023 2024 2023 Numerator for basic and diluted earnings per share $ 671,522 $ 594,679 $ 340,685 $ 541,273 Denominator for basic earnings per share – weighted average 15,750,895 15,742,571 15,750,910 15,743,069 Effects of dilutive securities Stock options for employees, directors and outside consultants 20,577 32,461 17,341 30,596 Denominator for diluted earnings per share 15,771,472 15,775,032 15,768,251 15,773,665 Basic Earnings Per Share $ 0.04 $ 0.04 $ 0.02 $ 0.03 Diluted Earnings Per Share $ 0.04 $ 0.04 $ 0.02 $ 0.03

REVOLVING LINE OF CREDIT

REVOLVING LINE OF CREDIT	6 Months Ended
	Aug. 31, 2024
Debt Disclosure [Abstract]
REVOLVING LINE OF CREDIT	NOTE 7: REVOLVING LINE OF CREDIT The Company has a $ 1,500,000 8.50% 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 August 31, 2024, $0 of the Company’s credit line was being utilized to collateralize Letters of Credit issued by the Company. As of August 31, 2024, there were no outstanding borrowings under the line of credit and the unused portion of the credit line was $ 1,500,000 The Company has a $ 750,000 0.50% 9% no

CUSTOMER CONCENTRATIONS AND FOR

CUSTOMER CONCENTRATIONS AND FOREIGN SALES	6 Months Ended
	Aug. 31, 2024
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 Six Months Ended Three Months Ended 2024 2023 2024 2023 Asia Pacific (APAC) $ 880,000 $ 1,109,000 $ 368,000 $ 538,000 Europe, Middle East, Asia (EMEA) 2,381,000 1,581,000 1,136,000 1,155,000 Latin America 345,000 985,000 163,000 747,000 $ 3,606,000 $ 3,675,000 $ 1,667,000 $ 2,440,000 During the first half of fiscal 2025 and fiscal 2024, sales to foreign customers accounted for approximately $ 3,606,000 3,675,000 35% 40% During the second quarter of fiscal 2025 and fiscal 2024, sales to foreign customers accounted for approximately $ 1,667,000 2,440,000 32% 43% The Company had one customer which accounted for 21% 38% 65% The Company had one customer which accounted for 14% 20% 26%

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Aug. 31, 2024
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 August 31, 2024. 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 August 31, 2024, the Company did not have any pending legal actions.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents - 1,263,000
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 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, 2024 and February 29, 2024, 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, 2024 $ 5,392,980 $ 373,196 $ — $ 5,766,176 Marketable Securities – February 29, 2024 $ 9,711,351 $ — $ — $ 9,711,351 Marketable Securities include certificates of deposit and US Treasury securities that are considered to be highly liquid and easily tradeable totaling $ 5,766,176 9,711,351
Income Taxes	Income Taxes no
Inventories	Inventories -
Land and Buildings	Land and Buildings At August 31, 2024 and February 29, 2024, the Company had land stated at cost of $ 250,000 At August 31, 2024 and February 29, 2024, the Company had buildings, equipment, furnishings and leasehold improvements totaling, $ 2,691,523 2,832,156
Management Estimates	Management Estimates -
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted Improvements to Income Tax Disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting
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

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Aug. 31, 2024
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 August 31, 2024 and February 29, 2024, 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, 2024 $ 5,392,980 $ 373,196 $ — $ 5,766,176 Marketable Securities – February 29, 2024 $ 9,711,351 $ — $ — $ 9,711,351

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Aug. 31, 2024
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 August 31, Six Months Ended August 31, 2024 % of total 2023 % of total 2024 % of total 2023 % of total Fluxing Systems $ 119,000 2% $ 204,000 4% $ 253,000 3% $ 440,000 5% Integrated Coating Systems 2,023,000 39% 853,000 15% 2,770,000 27% 1,162,000 12% Multi-Axis Coating Systems 1,931,000 38% 2,923,000 52% 4,595,000 45% 4,686,000 51% OEM Systems 205,000 4% 535,000 9% 537,000 5% 810,000 9% Spare Parts, Services and Other 884,000 17% 1,124,000 20% 2,038,000 20% 2,144,000 23% TOTAL $ 5,162,000 $ 5,639,000 $ 10,193,000 $ 9,242,000

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Aug. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following: Schedule of Inventory, Current August 31, February 29, 2024 2024 Raw materials and subassemblies $ 2,218,204 $ 2,270,567 Finished goods 1,725,525 1,785,952 Work in process 886,172 1,165,461 Total $ 4,829,901 $ 5,221,980

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Aug. 31, 2024
Equity [Abstract]
Schedule of weighted-average Black-Scholes assumptions	The weighted-average fair value of options is 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 3.64% 4.39% Expected volatility 55.19% 60.34% Expected dividend yield 0%

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Aug. 31, 2024
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 Six Months Ended Three Months Ended 2024 2023 2024 2023 Numerator for basic and diluted earnings per share $ 671,522 $ 594,679 $ 340,685 $ 541,273 Denominator for basic earnings per share – weighted average 15,750,895 15,742,571 15,750,910 15,743,069 Effects of dilutive securities Stock options for employees, directors and outside consultants 20,577 32,461 17,341 30,596 Denominator for diluted earnings per share 15,771,472 15,775,032 15,768,251 15,773,665 Basic Earnings Per Share $ 0.04 $ 0.04 $ 0.02 $ 0.03 Diluted Earnings Per Share $ 0.04 $ 0.04 $ 0.02 $ 0.03

CUSTOMER CONCENTRATIONS AND F_2

CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Tables)	6 Months Ended
	Aug. 31, 2024
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 Six Months Ended Three Months Ended 2024 2023 2024 2023 Asia Pacific (APAC) $ 880,000 $ 1,109,000 $ 368,000 $ 538,000 Europe, Middle East, Asia (EMEA) 2,381,000 1,581,000 1,136,000 1,155,000 Latin America 345,000 985,000 163,000 747,000 $ 3,606,000 $ 3,675,000 $ 1,667,000 $ 2,440,000

Schedule of Significant Account

Schedule of Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($)	Aug. 31, 2024	Feb. 29, 2024
Platform Operator, Crypto Asset [Line Items]
Marketable Securities	$ 5,766,176	$ 9,711,351
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto Asset [Line Items]
Marketable Securities	5,392,980	9,711,351
Fair Value, Inputs, Level 2 [Member]
Platform Operator, Crypto Asset [Line Items]
Marketable Securities	373,196
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto Asset [Line Items]
Marketable Securities

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Aug. 31, 2024	Feb. 29, 2024
Accounting Policies [Abstract]
Bank deposits exceeding the FDIC insured limit	$ 1,263,000
Marketable securities	5,766,176	$ 9,711,351
Accruals for uncertain tax positions	0	0
Land	250,000	250,000
Buildings, equipment, furnishings and leasehold improvements, net	$ 2,691,523	$ 2,832,156

Schedule of Revenue Recognition

Schedule of Revenue Recognition - Sales Revenue by Product Line (Details) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Disaggregation of Revenue [Line Items]
Sales revenue	$ 5,161,782	$ 5,639,117	$ 10,192,820	$ 9,242,135
Fluxing Systems [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 119,000	$ 204,000	$ 253,000	$ 440,000
Sales revenue, percent	2%	4%	3%	5%
Integrated Coating Systems [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 2,023,000	$ 853,000	$ 2,770,000	$ 1,162,000
Sales revenue, percent	39%	15%	27%	12%
Multi-Axis Coating Systems [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 1,931,000	$ 2,923,000	$ 4,595,000	$ 4,686,000
Sales revenue, percent	38%	52%	45%	51%
OEM Systems [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 205,000	$ 535,000	$ 537,000	$ 810,000
Sales revenue, percent	4%	9%	5%	9%
2013 Stock Incentive Plan ("2013 Plan") [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 884,000	$ 1,124,000	$ 2,038,000	$ 2,144,000
Sales revenue, percent	17%	20%	20%	23%
Total [Member]
Disaggregation of Revenue [Line Items]
Sales revenue	$ 5,162,000	$ 5,639,000	$ 10,193,000	$ 9,242,000

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2024	Feb. 29, 2024
Line of Credit Facility [Line Items]
Cash deposits	$ 3,225,000	$ 3,420,000
Revenue recognized	$ 2,641,000
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Letter of credit		$ 72,000

Schedule of Inventory, Current

Schedule of Inventory, Current (Details) - USD ($)	Aug. 31, 2024	Feb. 29, 2024
Inventory Disclosure [Abstract]
Raw materials and subassemblies	$ 2,218,204	$ 2,270,567
Finished goods	1,725,525	1,785,952
Work in process	886,172	1,165,461
Total	$ 4,829,901	$ 5,221,980

INVENTORIES (Details Narrative)

INVENTORIES (Details Narrative) - USD ($)	Aug. 31, 2024	Feb. 29, 2024
Inventory Disclosure [Abstract]
Allowance for slow moving inventory	$ 339,250	$ 380,400

Schedule of weighted-average Bl

Schedule of weighted-average Black-Scholes assumptions (Details)	6 Months Ended
	Aug. 31, 2024
Expected dividend yield	0%
Minimum [Member]
Expected life (in years)	5 years
Risk free interest rate	3.64%
Expected volatility	55.19%
Maximum [Member]
Expected life (in years)	8 years
Risk free interest rate	4.39%
Expected volatility	60.34%

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Aug. 31, 2023	Jun. 30, 2023	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, expiration period					10 years
Options granted			17,341	30,596	20,577	32,461
Options, vesting period					3 years
Weighted average grant date fair value, per share					$ 2.54
Stock-based compensation expense			$ 43,000	$ 46,000	$ 97,000	$ 95,000
Stock option non-vested			585,000		585,000
Options vested and exercisable aggregate intrinsic value			$ 85,000		$ 85,000
Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted					134,657
Employees [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, exercisable price					$ 4.12
Employees [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, exercisable price					$ 4.87
Non Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted					26,667
Options, exercisable price					$ 4.12
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
Options, expiration period		10 years
Stock options, outstanding			212,202		212,202
Stock options, vested					185,300
Stock Incentive Plan 2023 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options, vested					8,808
Options granted	2,500,000
Options outstanding					219,558

Schedule of Computation of basi

Schedule of Computation of basic and diluted earnings per share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Earnings Per Share [Abstract]
Numerator for basic and diluted earnings per share	$ 340,685	$ 541,273	$ 671,522	$ 594,679
Denominator for basic earnings per share – weighted average	15,750,910	15,743,069	15,750,895	15,742,571
Effects of dilutive securities
Stock options for employees, directors and outside consultants	17,341	30,596	20,577	32,461
Denominator for diluted earnings per share	15,768,251	15,773,665	15,771,472	15,775,032
Basic Earnings Per Share	$ 0.02	$ 0.03	$ 0.04	$ 0.04
Diluted Earnings Per Share	$ 0.02	$ 0.03	$ 0.04	$ 0.04

REVOLVING LINE OF CREDIT (Detai

REVOLVING LINE OF CREDIT (Details Narrative) - USD ($)	6 Months Ended
	Aug. 31, 2024	Feb. 29, 2024
Line of Credit Facility [Line Items]
Interest rate	9%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Revolving line of credit	$ 1,500,000	$ 1,500,000
Interest rate	8.50%	8.50%
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]
Unused portion of credit line	$ 1,500,000
Outstanding borrowings under the line of credit	0
Fluxing Systems [Member]
Line of Credit Facility [Line Items]
Revolving line of credit	$ 750,000
Interest rate	0.50%
Outstanding borrowings under the line of credit	$ 0

Schedule of Customer Concentrat

Schedule of Customer Concentrations and Foreign Sales (Details) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023
Total sales	$ 3,606,000	$ 3,675,000	$ 1,667,000	$ 2,440,000
Asia Pacific [Member]
Total sales	880,000	1,109,000	368,000	538,000
EMEA [Member]
Total sales	2,381,000	1,581,000	1,136,000	1,155,000
Latin America [Member]
Total sales	$ 345,000	$ 985,000	$ 163,000	$ 747,000

CUSTOMER CONCENTRATIONS AND F_3

CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Aug. 31, 2023	Feb. 29, 2024
Concentration Risk [Line Items]
Sales revenue	$ 5,161,782	$ 5,639,117	$ 10,192,820	$ 9,242,135
Foreign Customers [Member] | Revenue Benchmark [Member]
Concentration Risk [Line Items]
Sales revenue	$ 1,667,000	$ 2,440,000	$ 3,606,000	$ 3,675,000
Sales revenue, percent	32%	43%	35%	40%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | One Customer [Member]
Concentration Risk [Line Items]
Concentration percentage		20%	21%	14%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customer [Member]
Concentration Risk [Line Items]
Concentration percentage	38%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Three Customer [Member]
Concentration Risk [Line Items]
Concentration percentage			65%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member]
Concentration Risk [Line Items]
Concentration percentage					26%