Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | 15-May-15 | Aug. 31, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SOLITRON DEVICES INC | ||
Entity Central Index Key | 91668 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -26 | ||
Document Type | 10-K | ||
Document Period End Date | 28-Feb-15 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2015 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $8,085,206 | ||
Entity Common Stock, Shares Outstanding | 2,187,132 |
Balance_Sheets
Balance Sheets (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $820 | $625 |
Treasury Bills and Certificates of Deposit | 6,971 | 6,261 |
Accounts receivable, less allowance for doubtful accounts of $2 | 1,018 | 785 |
Inventories, net (Note 3) | 4,197 | 4,316 |
Prepaid expenses and other current assets | 123 | 155 |
TOTAL CURRENT ASSETS | 13,129 | 12,142 |
PROPERTY, PLANT AND EQUIPMENT, Net (Note 4) | 458 | 558 |
OTHER ASSETS | 8 | 7 |
TOTAL ASSETS | 13,595 | 12,707 |
CURRENT LIABILITIES | ||
Accounts payable-Post-petition | 425 | 307 |
Accounts payable-Pre-petition | 8 | |
Customer deposits | 20 | 94 |
Accrued expenses and other current liabilities (Note 5) | 632 | 605 |
TOTAL CURRENT LIABILITIES | 1,077 | 1,014 |
TOTAL LIABILITIES | 1,077 | 1,014 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.01 par value, authorized 500,000 shares, none issued | ||
Common stock, $.01 par value, authorized 10,000,000 shares, 2,185,832 shares and 2,177,832 shares issued and outstanding, net of 273,230 shares of treasury stock as of February 28, 2015 and February 28, 2014, respectively | 23 | 23 |
Additional paid-in capital | 2,749 | 2,743 |
Accumulated other comprehensive income | 15 | 14 |
Retained earnings | 10,006 | 9,188 |
Less treasury stock | -275 | -275 |
TOTAL STOCKHOLDERS' EQUITY | 12,518 | 11,693 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $13,595 | $12,707 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Balance Sheets [Abstract] | ||
Allowance for doubtful accounts (in dollars) | $2 | $2 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,185,832 | 2,177,832 |
Common stock, shares outstanding | 2,185,832 | 2,177,832 |
Treasury stock, shares | 273,230 | 273,230 |
Statements_of_Income_and_Compr
Statements of Income and Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Statements Of Income and Comprehensive Income [Abstract] | ||
Net sales | $9,757 | $8,650 |
Cost of sales | 7,225 | 6,389 |
Gross profit | 2,532 | 2,261 |
Selling, general and administrative expenses | 1,610 | 1,543 |
Operating income | 922 | 718 |
Other income (expenses): | ||
Interest income | 16 | 28 |
Other, net (Note 12) | 8 | 163 |
Income before provision for income taxes | 946 | 909 |
Provision for income taxes | 19 | 13 |
Net income | 927 | 896 |
Other comprehensive income | ||
Unrealized gain on investments | 1 | 1 |
Total comprehensive income | $928 | $897 |
Income per share from operating income-Basic | $0.42 | $0.33 |
Income per share from operating income-Diluted | $0.38 | $0.30 |
Net income per share-Basic | $0.42 | $0.41 |
Net income per share-Diluted | $0.38 | $0.37 |
Weighted average shares outstanding-Basic | 2,183,876 | 2,177,832 |
Weighted average shares outstanding-Diluted | 2,408,635 | 2,404,390 |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional paid-in capital | Accumulated other comprehensive income | Retained earnings | Treasury Stock |
In Thousands, except Share data | ||||||
Beginning Balance at Feb. 28, 2013 | $10,796 | $23 | $2,743 | $13 | $8,292 | ($275) |
Beginning Balance, Shares at Feb. 28, 2013 | 2,177,832 | |||||
Unrealized gain on investments | 1 | 1 | ||||
Net income | 896 | 896 | ||||
Ending Balance at Feb. 28, 2014 | 11,693 | 23 | 2,743 | 14 | 9,188 | -275 |
Ending Balance, Shares at Feb. 28, 2014 | 2,177,832 | |||||
Employee exercise of stock options, value | 6 | 6 | ||||
Employee exercise of stock options, shares | -8,000 | 8,000 | ||||
Dividend | -109 | -109 | ||||
Unrealized gain on investments | 1 | 1 | ||||
Net income | 927 | 927 | ||||
Ending Balance at Feb. 28, 2015 | $12,518 | $23 | $2,749 | $15 | $10,006 | ($275) |
Ending Balance, Shares at Feb. 28, 2015 | 2,185,832 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Statements Of Cash Flows [Abstract] | ||
Net income | $927 | $896 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 223 | 237 |
Decrease (increase) in operating assets: | ||
Accounts receivable | -233 | 296 |
Inventories | 120 | -283 |
Prepaid expenses and other current assets | 32 | 13 |
Other assets | -2 | 30 |
Increase (decrease) in operating liabilities: | ||
Accounts payable-post-petition | 118 | -6 |
Accounts payable-pre-petition | -8 | -270 |
Customer deposit | -73 | -177 |
Accrued expenses and other liabilities | 27 | -117 |
Total adjustments | 204 | -277 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,131 | 619 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Sales of Treasury Bills and Certificates of Deposit | 6,260 | 4,813 |
Purchases of Treasury Bills and Certificates of Deposit | -6,970 | -5,900 |
Purchase of property, plant and equipment | -123 | -204 |
NET CASH PROVIDED USED IN INVESTING ACTIVITIES | -833 | -1,291 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash dividend paid | -109 | |
Proceeds from exercise of stock options | 6 | |
NET CASH USED IN FINANCING ACTIVITIES | -103 | |
Net increase (decrease) in cash and cash equivalents | 195 | -672 |
Cash and cash equivalents - beginning of the year | 625 | 1,297 |
Cash and cash equivalents - end of the year | 820 | 625 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the year for income taxes | $26 | $13 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
Nature of Operations and Activities | |||||||||||||||||
Solitron Devices, Inc., a Delaware corporation (the “Company” or “Solitron”), designs, develops, manufactures, and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The Company was incorporated under the laws of the State of New York in 1959 and reincorporated under the laws of the State of Delaware in August 1987. | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
The financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents include demand deposits and money market accounts. | |||||||||||||||||
Investment in Treasury Bills and Certificates of Deposit | |||||||||||||||||
Investment in Treasury Bills/Certificates of Deposit includes treasury bills with maturities of one year or less, and Certificates of Deposit with maturities from one to three years, and is stated at market value. All of the Company’s investments are classified as available-for-sale. As they are available for current operations, they are classified as current on the balance sheets. Investments in available-for-sale securities are reported at fair value with unrecognized gains or losses, net of tax, as a component of accumulated other comprehensive income and is included as a separate component of stockholders’ equity. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when the declines are determined to be other-than-temporary. | |||||||||||||||||
The following table summarizes the Company's available-for-sale investments: | |||||||||||||||||
28-Feb-15 | |||||||||||||||||
Cost | Gross Unrealized Gains | Gross | Fair Value | ||||||||||||||
Unrealized Losses | |||||||||||||||||
(In thousands) | |||||||||||||||||
Short-term investments: | |||||||||||||||||
Certificates of deposit | $ | 6,970 | $ | 1 | $ | - | $ | 6,971 | |||||||||
Total short-term investments | $ | 6,970 | $ | 1 | $ | - | $ | 6,971 | |||||||||
28-Feb-14 | |||||||||||||||||
Cost | Gross Unrealized Gains | Gross | Fair Value | ||||||||||||||
Unrealized Losses | |||||||||||||||||
(In thousands) | |||||||||||||||||
Short-term investments: | |||||||||||||||||
Treasury bills | $ | 1,282 | $ | 0.49 | $ | - | $ | 1,282 | |||||||||
Certificates of deposit | 4,978 | 0.51 | - | 4,979 | |||||||||||||
Total short-term investments | $ | 6,260 | $ | 1 | $ | - | $ | 6,261 | |||||||||
At February 28, 2015 and February 28, 2014, the deferred tax liability related to unrecognized gains and losses on short-term investments was $0. | |||||||||||||||||
As of February 28, 2015, contractual maturities of the Company's available-for-sale non-equity investments were as follows: | |||||||||||||||||
Cost | Fair | ||||||||||||||||
Value | |||||||||||||||||
(In thousands) | |||||||||||||||||
Maturing within one year | $ | 6,970 | $ | 6,971 | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” defines “fair value” as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also sets forth a valuation hierarchy of the inputs (assumptions that market participants would use in pricing an asset or liability) used to measure fair value. This hierarchy prioritizes the inputs into the following three levels: | |||||||||||||||||
Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. | |||||||||||||||||
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |||||||||||||||||
Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that results in management’s best estimate of fair value. | |||||||||||||||||
The Company’s Treasury bills and brokered certificates of deposits are subject to level 1 fair value measurement. | |||||||||||||||||
The carrying amounts of the Company’s short-term financial instruments, including accounts receivable, accounts payable, accrued expenses and other liabilities approximate their fair value due to the relatively short period to maturity for these instruments. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities, and the carrying amount of the long-term debt approximates fair value. | |||||||||||||||||
Accounts Receivable | |||||||||||||||||
Accounts receivable consists of unsecured credit extended to the Company’s customers in the ordinary course of business. The Company reserves for any amounts deemed to be uncollectible based on past collection experiences and an analysis of outstanding balances, using an allowance account. The allowance amount was $2,000 as of February 28, 2015 and February 28, 2014. | |||||||||||||||||
Shipping and Handling | |||||||||||||||||
Shipping and handling costs billed to customers are recorded in net sales. Shipping costs incurred by the Company are recorded in cost of sales. | |||||||||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or market. Cost is determined using the “first-in, first-out” (FIFO) method. The Company buys raw material only to fill customer orders. Excess raw material is created only when a vendor imposes a minimum buy in excess of actual requirements. Such excess material will usually be utilized to meet the requirements of the customer’s subsequent orders. If excess material is not utilized after two fiscal years it is fully reserved. Any inventory item once designated as reserved is carried at zero value in all subsequent valuation activities. | |||||||||||||||||
The Company’s inventory valuation policy is as follows: | |||||||||||||||||
Raw material /Work in process: | All material purchased, processed, and/or used in the last two fiscal years is valued at the lower of its acquisition cost or market. All material not purchased/used in the last two fiscal years is fully reserved. | ||||||||||||||||
Finished goods: | All finished goods with firm orders for later delivery are valued (material and overhead) at the lower of cost or market. All finished goods with no orders are fully reserved. | ||||||||||||||||
Direct labor costs: | Direct labor costs are allocated to finished goods and work in process inventory based on engineering estimates of the amount of man-hours required from the different direct labor departments to bring each device to its particular level of completion. | ||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||
Property, plant, and equipment is recorded at cost. Major renewals and improvements are capitalized, while maintenance and repairs that do not extend their expected life are expensed as incurred. Depreciation is provided on a straight-line basis over the estimated useful lives of the related assets: | |||||||||||||||||
Leasehold Improvements | 10 years | ||||||||||||||||
Machinery and Equipment | 5 years | ||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||
Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and trade receivables. The Company places its cash with high credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant credit risk on the accounts. As of February 28, 2015, all non-interest bearing checking accounts were FDIC insured to a limit of $250,000. Deposits in excess of FDIC insured limits were approximately $560,000 at February 28, 2015. With respect to the trade receivables, most of the Company’s products are custom made pursuant to contracts with customers whose end-products are sold to the United States Government. The Company performs ongoing credit evaluations of its customers’ financial condition and maintains allowances for potential credit losses. Actual losses and allowances have historically been within management’s expectations. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenue is recognized in accordance with SEC Staff Accounting Bulletin No. 104, Revenue Recognition. This pronouncement requires that four basic criteria be met before revenue can be recognized: 1) there is evidence that an arrangement exists; 2) delivery has occurred; 3) the fee is fixed or determinable; and 4) collectability is reasonably assured. We recognize revenue upon determination that all criteria for revenue recognition have been met. The criteria are usually met at the time of product shipment. Shipping terms are generally FCA (Free Carrier) shipping point. | |||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are accounted for under the asset and liability method of ASC 740-10, “Income Taxes”. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized by the use of a valuation allowance. | |||||||||||||||||
The Company adopted guidance related to accounting for uncertainty in income taxes in accordance with ASC 740-10 and began evaluating tax positions utilizing a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the position. The second step is to measure the benefit to be recorded from tax positions that meet the more-likely-than-not recognition threshold by determining the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement and recognizing that amount in the financial statements. Solitron has adopted ASC 740-10 and no material impact on its financial condition, results of operations, cash flows, or disclosures occurred upon adoption. | |||||||||||||||||
Net Income Per Common Share | |||||||||||||||||
Net income per common share is presented in accordance with ASC 260-10 “Earnings per Share.” Basic earnings per common share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per common share incorporate the incremental shares issuable upon the assumed exercise of stock options to the extent they are not anti-dilutive using the treasury stock method. | |||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||
Potential impairments of long-lived assets are reviewed annually or when events and circumstances warrant an earlier review. In accordance with ASC Subtopic 360-10, "Property, Plant and Equipment – Overall," impairment is determined when estimated future undiscounted cash flows associated with an asset are less than the asset’s carrying value. | |||||||||||||||||
Financial Statement Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and the differences could be material. Such estimates include depreciable life of property and equipment, accounts receivable allowance, deferred tax valuation allowance, and allowance for inventory obsolescence. | |||||||||||||||||
Stock based compensation | |||||||||||||||||
The Company records stock-based compensation in accordance with the provisions of ASC Topic 718, "Compensation-Stock Compensation," which establishes accounting standards for transactions in which an entity exchanges its equity instruments for goods or services. Under ASC Topic 718, the Company recognizes an expense for the fair value of outstanding stock options and grants as they vest, whether held by employees or others. No vesting of stock options occurred during the year ended February 28, 2015 or February 28, 2014. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
No recent accounting pronouncements affecting the Company were issued by the Financial Accounting Standards Board or other standards-setting bodies. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
EARNINGS PER SHARE | 2. EARNINGS PER SHARE | ||||||||
The shares used in the computation of the Company’s basic and diluted earnings per common share were as follows: | |||||||||
Fiscal Year Ended | |||||||||
28-Feb | |||||||||
2015 | 2014 | ||||||||
Weighted average common shares outstanding | 2,183,876 | 2,177,832 | |||||||
Dilutive effect of employee stock options | 224,759 | 226,558 | |||||||
Weighted average common shares outstanding, assuming dilution | 2,408,635 | 2,404,390 | |||||||
Weighted average common shares outstanding, assuming dilution, include the incremental shares that would be issued upon the assumed exercise of stock options. For fiscal years 2015 and 2014 respectively, 8,400 and 12,300 of the Company’s outstanding stock options were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares, and therefore their inclusion would have been anti-dilutive. For fiscal year 2015 these options have become dilutive. |
Inventories
Inventories | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Inventories [Abstract] | |||||||||||||
INVENTORIES | 3. INVENTORIES | ||||||||||||
As of February 28, 2015, inventories consist of the following: | |||||||||||||
Gross | Reserve | Net | |||||||||||
Raw Materials | $ | 2,124,000 | $ | (404,000 | ) | $ | 1,720,000 | ||||||
Work-In-Process | 3,744,000 | (1,624,000 | ) | 2,120,000 | |||||||||
Finished Goods | 1,077,000 | (720,000 | ) | 357,000 | |||||||||
Totals | $ | 6,945,000 | $ | (2,748,000 | ) | $ | 4,197,000 | ||||||
As of February 28, 2014, inventories consist of the following: | |||||||||||||
Gross | Reserve | Net | |||||||||||
Raw Materials | $ | 1,878,000 | $ | (447,000 | ) | $ | 1,431,000 | ||||||
Work-In-Process | 3,103,000 | (1,292,000 | ) | 1,811,000 | |||||||||
Finished Goods | 1,782,000 | (708,000 | ) | 1,074,000 | |||||||||
Totals | $ | 6,763,000 | $ | (2,447,000 | ) | $ | 4,316,000 |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
PROPERTY, PLANT AND EQUIPMENT | 4. PROPERTY, PLANT AND EQUIPMENT | ||||||||
As of February 28, 2015 and February 28, 2014, property, plant, and equipment consist of the following: | |||||||||
2015 | 2014 | ||||||||
Leasehold Improvements | $ | 227,000 | $ | 220,000 | |||||
Machinery and Equipment | 3,118,000 | 3,002,000 | |||||||
Subtotal | 3,345,000 | 3,222,000 | |||||||
Less: Accumulated Depreciation and Amortization | (2,887,000 | ) | (2,664,000 | ) | |||||
Net Property, Plant and Equipment | $ | 458,000 | $ | 558,000 | |||||
Depreciation and amortization expense was $223,000 and $237,000 for the years ended 2015 and 2014, respectively and is included in Cost of Sales in the accompanying Statements of Income. | |||||||||
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Accrued Expenses and Other Current Liabilities [Abstract] | |||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||||
As of February 28, 2015 and February 28, 2014, accrued expenses and other current liabilities consist of the following: | |||||||||
2015 | 2014 | ||||||||
Payroll and related employee benefits | $ | 575,000 | $ | 539,000 | |||||
Income taxes | 15,000 | 15,000 | |||||||
Property taxes | 7,000 | 7,000 | |||||||
Other liabilities | 35,000 | 44,000 | |||||||
Totals | $ | 632,000 | $ | 605,000 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Income Taxes [Abstract] | |||||||||
INCOME TAXES | 6. INCOME TAXES | ||||||||
At February 28, 2015, the Company has net operating loss carryforwards of approximately $11,701,000 that expire through February 2029. Such net operating losses are available to offset future taxable income, if any. As the utilization of such net operating losses for tax purposes is not assured, the deferred tax asset has been fully reserved through the recording of a 100% valuation allowance. Should a cumulative change in the ownership of more than 50% occur within a three-year period, there could be an annual limitation on the use of the net operating loss carryforwards. | |||||||||
Total net deferred taxes are comprised of the following at February 28, 2015 and February 28, 2014: | |||||||||
Deferred Tax Asset (Liability): | 2015 | 2014 | |||||||
Current | |||||||||
Allowance for doubtful accounts | $ | 1,000 | $ | 1,000 | |||||
Inventory allowance | 1,044,000 | 930,000 | |||||||
Section 263A capitalized costs | 85,000 | 246,000 | |||||||
Total current deferred tax assets | 1,130,000 | 1,177,000 | |||||||
Valuation allowance | (1,130,000 | ) | (1,177,000 | ) | |||||
$ | 0 | $ | 0 | ||||||
Long-term | |||||||||
Loss carryforwards | $ | 3,959,000 | $ | 5,309,000 | |||||
Depreciation | (31,000 | ) | (46,000 | ) | |||||
Total long-term deferred tax assets | 3,928,000 | 5,263,000 | |||||||
Valuation allowance | (3,928,000 | ) | (5,263,000 | ) | |||||
$ | 0 | $ | 0 | ||||||
The change in the valuation allowance on deferred tax assets is due principally to the utilization of the net operating loss for the years ended February 28, 2015 and February 28, 2014. | |||||||||
A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate for fiscal year ended February 28, 2015 and February 28, 2014 is as follows: | |||||||||
2015 | 2014 | ||||||||
U.S. federal statutory rate | 34 | % | 34 | % | |||||
Change in valuation allowance | (34.0 | ) | (34.0 | ) | |||||
Alternative Minimum Taxes | 2 | 1 | |||||||
Effective income tax rate | 2 | % | 1 | % |
Stock_Options
Stock Options | 12 Months Ended | ||||||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||||||
Stock Options [Abstract] | |||||||||||||||||||||||||
STOCK OPTIONS | 7. STOCK OPTIONS | ||||||||||||||||||||||||
The Company’s 2000 Stock Option Plan provides that stock options are valid for ten years and vest twelve months after the award date unless otherwise stated in the option awards. The 2000 Stock Option Plan terminated pursuant to its terms in July 2010. The Company’s 2007 Stock Incentive Plan allows the Company to grant common stock, options, restricted stock, and stock appreciation rights to eligible individuals. As of February 28, 2015, the Company had not granted any awards under the 2007 Stock Incentive Plan. | |||||||||||||||||||||||||
On January 23, 2006, the Board of Directors granted stock options to certain key employees and directors. The options, which became vested on January 23, 2007, were for a total of 14,700 shares and the exercise price was fixed at $3.95 per share, which was the price on the OTCBB at the time of the grant. The options are exercisable through January 23, 2016. The remaining options balance is 8,400 as of February 28, 2015. | |||||||||||||||||||||||||
On May 16, 2005, the Board of Directors granted stock options to certain key employees and directors. The options, which became vested on May 15, 2006, were for a total of 47,000 shares and the exercise price was fixed at $0.75 per share, which was the price on the OTCBB at the time of the grant. The options were exercisable through May 15, 2015. The remaining options balance was 1,000 as of February 28, 2015. | |||||||||||||||||||||||||
On May 17, 2004, the Board of Directors granted stock options to certain key employees and directors. The options, which became vested on May 16, 2005, were for a total number of 47,500 shares and the exercise price was fixed at $1.05 per share, which was the price on the OTCBB at the time of the grant. The options were exercisable through May 16, 2014. There are no options from this grant that remain outstanding. | |||||||||||||||||||||||||
On May 17, 2004, the Board of Directors awarded the Company’s President options totaling 175,636 shares, which are fully vested. The exercise price of these options was fixed at $1.05 per share (the closing price on the OTCBB at the time of the grant). | |||||||||||||||||||||||||
In December 2000, a grant equal to 10% of the outstanding shares (254,624) was made to the Company’s President at the exercisable price of $0.40 per share (the closing stock price on the date of the grant). Fifty percent (50%) of the total number of shares was immediately exercisable and the other 50% vested in five equal installments over the following five years. All of these options are fully vested. | |||||||||||||||||||||||||
Below is a summary of the Company’s Stock Option Activity: | |||||||||||||||||||||||||
Weighted- | |||||||||||||||||||||||||
Weighted- | Average | ||||||||||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||||||||||
Options | Exercise | Contractual | Intrinsic | ||||||||||||||||||||||
Outstanding | Price | Term | Value | ||||||||||||||||||||||
Balance, February 28, 2013 | 451,560 | $ | 0.76 | 3.65 | $ | 1,360,000 | |||||||||||||||||||
Expired | (3,000 | ) | |||||||||||||||||||||||
Balance, February 28, 2014 | 448,560 | 0.74 | 2.61 | $ | 1,496,000 | ||||||||||||||||||||
Expired | (900 | ) | |||||||||||||||||||||||
Exercised | (8,000 | ) | |||||||||||||||||||||||
Balance, February 28, 2015 | 439,660 | $ | 0.73 | 1.94 | $ | 1,570,341 | |||||||||||||||||||
No options were granted in the years ended February 28, 2015 and February 28, 2014. | |||||||||||||||||||||||||
All of the Company’s outstanding options were vested as of February 28, 2015. No options vested during the years ended February 28, 2015 and February 28, 2014. | |||||||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at February 28, 2015: | |||||||||||||||||||||||||
Options Outstanding | Exercisable Options | ||||||||||||||||||||||||
Range of | Number of | Remaining | Weighted Average | Number | Weighted Average | ||||||||||||||||||||
Exercise Prices | Outstanding | Contractual | Exercise | Exercise | |||||||||||||||||||||
Options | Life | Price | Price | ||||||||||||||||||||||
$ | 0.4 | $ | 0.4 | 254,624 | Evergreen | $ | 0.4 | 254,624 | $ | 0.4 | |||||||||||||||
$ | 1.05 | $ | 1.05 | 175,636 | Evergreen | $ | 1.05 | 175,636 | $ | 1.05 | |||||||||||||||
$ | 0.75 | $ | 0.75 | 1,000 | 1 years | $ | 0.75 | 1,000 | $ | 0.75 | |||||||||||||||
$ | 3.95 | $ | 3.95 | 8,400 | 2 years | $ | 3.95 | 8,400 | $ | 3.95 | |||||||||||||||
439,660 | $ | 0.74 | 439,660 | $ | 0.74 | ||||||||||||||||||||
All options with a remaining contractual life outstanding are fully vested. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Feb. 28, 2015 | |
Employee Benefit Plans [Abstract] | |
EMPLOYEE BENEFIT PLANS | 8. EMPLOYEE BENEFIT PLANS |
The Company has a 401k and Profit Sharing Plan (the "Profit Sharing Plan") in which substantially all employees may participate after three months of service. Contributions to the Profit Sharing Plan by participants are voluntary. The Company may match participant's contributions up to 25% of 4% of each participant's annual compensation. In addition, the Company may make additional contributions at its discretion. The Company did not contribute to the Profit Sharing Plan during the fiscal years ended February 28, 2015 and February 28, 2014. |
Export_Sales_and_Major_Custome
Export Sales and Major Customers | 12 Months Ended | ||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||
Export Sales and Major Customers [Abstract] | |||||||||||||||||||||
EXPORT SALES AND MAJOR CUSTOMERS | 9. EXPORT SALES AND MAJOR CUSTOMERS | ||||||||||||||||||||
Revenues from domestic and export sales to unaffiliated customers for the year ended February 28, 2015 are as follows: | |||||||||||||||||||||
Power | Field Effect | Power | |||||||||||||||||||
Geographic Region | Transistors | Hybrids | Transistors | MOSFETS | Totals | ||||||||||||||||
Europe and Australia | $ | 0 | $ | 904,000 | $ | 10,000 | $ | 0 | $ | 914,000 | |||||||||||
Canada and Latin America | 47,000 | 0 | 20,000 | 13,000 | 80,000 | ||||||||||||||||
Far East and Middle East | 18,000 | 0 | 40,000 | 481,000 | 539,000 | ||||||||||||||||
United States | 1,313,000 | 4,586,000 | 278,000 | 2,047,000 | 8,224,000 | ||||||||||||||||
Totals | $ | 1,378,000 | $ | 5,490,000 | $ | 348,000 | $ | 2,541,000 | $ | 9,757,000 | |||||||||||
Revenues from domestic and export sales to unaffiliated customers for the year ended February 28, 2014 are as follows: | |||||||||||||||||||||
Power | Field Effect | Power | |||||||||||||||||||
Geographic Region | Transistors | Hybrids | Transistors | MOSFETS | Totals | ||||||||||||||||
Europe and Australia | $ | 9,000 | $ | 697,000 | $ | 28,000 | $ | 18,000 | $ | 752,000 | |||||||||||
Canada and Latin America | 96,000 | 0 | 11,000 | 0 | 107,000 | ||||||||||||||||
Far East and Middle East | 10,000 | 0 | 11,000 | 329,000 | 350,000 | ||||||||||||||||
United States | 1,143,000 | 3,684,000 | 392,000 | 2,222,000 | 7,441,000 | ||||||||||||||||
Totals | $ | 1,258,000 | $ | 4,381,000 | $ | 442,000 | $ | 2,569,000 | $ | 8,650,000 | |||||||||||
Revenues from domestic and export sales are attributed to global geographic regions according to the location of the customer’s primary manufacturing or operating facilities. | |||||||||||||||||||||
Sales to the Company's top two customers accounted for 63% of net sales for the year ended February 28, 2015 as compared with 62% of the Company's net sales for the year ended February 28, 2014. Sales to Raytheon Company accounted for approximately 48% of net sales for the year ended February 28, 2015 and 56% for the year ended February 28, 2014. Sales to the second largest customer, the United States Government, for the years ended February 28, 2015 and February 28, 2014 accounted for 15% and 6% of net sales respectively. | |||||||||||||||||||||
Major_Suppliers
Major Suppliers | 12 Months Ended |
Feb. 28, 2015 | |
Major Suppliers [Abstract] | |
MAJOR SUPPLIERS | 10. MAJOR SUPPLIERS |
For the year ended February 28, 2015, purchases from the Company’s two top suppliers, Egide USA Inc. and Wuxi Streamtek Ltd., accounted for 30% of the Company's total purchases of production materials. For the year ended February 28, 2014, purchases from the Company’s two top suppliers, Egide USA Inc. and Wuxi Streamtek Ltd., accounted for 43% of the Company’s total purchases of production materials. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
Commitments and Contingencies [Abstract] | |||||
COMMITMENTS AND CONTINGENCIES | 11. COMMITMENTS AND CONTINGENCIES | ||||
Employment Agreement | |||||
In December 2000, the Company entered into a five-year employment agreement with its President. On January 14, 2013, the Company amended the employment agreement with its President. This agreement provides, among other things, for annual compensation of $240,000 and a bonus pursuant to a formula. The agreement stipulates that the President shall be entitled to a bonus equal to fifteen percent (15%) of the Company’s pre-tax income in excess of Two Hundred Fifty Thousand Dollars ($250,000). For purposes of the agreement, “pre –tax income” shall mean net income before taxes, excluding (i) all extraordinary gains or losses, (ii) gains resulting from debt forgiven associated with the buyout of unsecured creditors, and (iii) any bonuses paid to the President. The bonus payable thereunder shall be paid within ninety (90) days after the end of the fiscal year. | |||||
On January 14, 2014 the President exercised a cost-of-living increase clause in his contract increasing his annual compensation to $296,500. | |||||
On December 5, 2014, the Compensation Committee approved an increase to Mr. Saraf’s annual compensation to $321,500, effective December 1, 2014. | |||||
The Company accrued $105,000 as a bonus to Mr. Saraf for the fiscal year ended February 28, 2015. | |||||
The President’s employment agreement stipulates, in Article 2.2, “Option to Extend”, that the contract is automatically extended for one year periods unless a notice is given by either party at least 180 days prior to the expiration of the term or any extensions. | |||||
Upon execution of the agreement, the President received a grant of options to purchase ten percent (10%) of the outstanding shares of the Company’s common stock, par value $.01 calculated on a fully diluted basis, at an exercise price per share equal to the closing asking price of the Company’s common stock on the OTCBB on the date of the grant ($0.40). Fifty percent (50%) of the Initial Stock Options granted were vested immediately upon grant. The remaining fifty percent (50%) of the Initial Stock Options vested in equal amounts on each of the first five anniversaries of the date of grant. These options were fully vested during the year ended February 28, 2006. | |||||
Environmental Compliance: | |||||
The Company entered into an Ability to Pay Multi-Site Settlement Agreement with the United States Environmental Protection Agency (“USEPA”), effective February 24, 2006 (“ATP Settlement Agreement”), to resolve the Company’s alleged liability to USEPA at five Superfund sites. The Company made periodic payments to USEPA under the ATP Settlement Agreement, the last of which were made on February 14, 2013 and May 22, 2013 in the amounts of $10,000 and $7,710, respectively. These final payments satisfied the Company’s financial obligations under the ATP Settlement Agreement. In consideration of all payments made by the Company under the ATP Settlement Agreement, USEPA agreed not to sue or take any administrative action against the Company with regard to any of the Superfund sites. | |||||
On March 27, 2013, the Company entered into a Settlement Agreement (“FDEP Settlement Agreement") with the Florida Department of Environmental Protection (“FDEP”), which resolved all of the Company’s remaining obligations under a Consent Final Judgment previously entered into with FDEP, dated October 21, 1993, and amended on September 27, 1995. Pursuant to the terms and conditions of the FDEP Settlement Agreement, the Company paid to FDEP the total sum of $165,000 (“Settlement Amount”), in full settlement of the Company’s obligations under the Consent Final Judgment. Upon the Company’s payment of the Settlement Amount to FDEP on March 29, 2013, FDEP released the Company from any remaining obligations under the Consent Final Judgment, as amended, as well as any remaining obligations of the Company to FDEP under the Company's Fourth Amended Joint Plan of Reorganization (the "Confirmed Plan"), confirmed by order of the United States Bankruptcy Court for the Southern District of Florida (“Bankruptcy Court”) on August 19, 1993, in connection with the Company’s bankruptcy proceeding filed in 1992. The Company has no further obligations to FDEP under the Confirmed Plan or the Consent Final Judgment, as amended. | |||||
In November 2013, the Company was served with a Third Party Complaint that was filed in the United States District Court for the Northern District of New York, in which the Company was named as a defendant in a suit brought by the Clarkstown Landfill Joint Defense Group (“JDG”). In the Third Party Complaint, the JDG contends that the Company is liable for an equitable share of the JDG’s settlement payment to the New York State Department of Environmental Conservation (“NYSDEC”) in connection with response costs incurred by NYSDEC to remediate the Clarkstown Landfill Site located in the Town of Clarkstown, Rockland County, New York (the “Clarkstown Landfill Site”). The JDG previously offered to settle its claim against the Company for the sum of $125,000; the offer has now been withdrawn. The Company contends that the JDG’s claim derives from NYSDEC’s claim against the Company as a result of the Company’s alleged disposal of wastes at the Clarkstown Landfill Site prior to the closing of the Company’s former Tappan facility in the mid-1980’s, a claim that the Company contends was discharged in bankruptcy as a result of the final order of Bankruptcy Court Confirming Debtor’s Fourth Amended Plan of Reorganization, entered on August 19, 1993 order (“1993 Order”). On January 24, 2014, the Company filed with the Bankruptcy Court an Emergency Motion to Enforce the Bankruptcy Court’s 1993 Order. Following a hearing on April 22, 2014, the Bankruptcy Court entered an Order on May 23, 2014, finding that NYSDEC’s claim against the Company was discharged in the 1993 Order and that the JDG has no legal basis to pursue JDG’s claim asserted against the Company in the Third Party Complaint. In the event the JDG fails to dismiss its claim against the Company, the Company will seek relief in the District Court. | |||||
Operating leases: | |||||
On October 1, 2014, the Company extended its current Lease with its landlord, CF EB REO II LLC, for the occupancy and use of its 47,000 square foot facility located at 3301 Electronics Way, West Palm Beach, Florida 33407. The property subsequently was sold to La Boheme Properties, Inc., a Florida corporation, which is the current landlord as the Lease was assigned to them. The term of the Lease ends on December 31, 2021. The base rent provided in the Lease is $34,451 per month. The Company has the option to extend the term of the Lease for an additional five years beginning on January 1, 2022 and ending on December 31, 2026. | |||||
Commencing on January 1, 2015 and on the first day of January of every subsequent year, the base rent will be increased to compensate for changes in the cost of living, provided that in no event will the base rent be increased by less than three percent nor more than five percent annually. Future minimum lease payments for this non-cancelable operating lease are as follows: | |||||
Fiscal Year Ending February 28/29 | Amount | ||||
2016 | $ | 415,000 | |||
2017 | $ | 427,000 | |||
2018 | $ | 440,000 | |||
2019 | $ | 454,000 | |||
2020 | $ | 467,000 | |||
2021 | $ | 481,000 | |||
Rent expense for the fiscal years ended February 28, 2015 and February 28, 2014 was approximately $370,000 and $394,000, respectively. | |||||
Other_Income
Other Income | 12 Months Ended |
Feb. 28, 2015 | |
Other Income [Abstract] | |
OTHER INCOME | 12. OTHER INCOME |
During the fiscal year ended February 28, 2015, the Company recognized approximately $8,000 of other income attributable to cancellation of debt. During the fiscal year ended February 28, 2014, the Company recognized approximately $163,000 of other income including $167,000 of income from the settlement of outstanding debt partially offset by $4,000 of other expense attributable to receivables adjustments. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Feb. 28, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 13. SUBSEQUENT EVENTS |
Dividend | |
On May 29, 2015, the Board of Directors of the Company approved a cash dividend of $0.25 per share of common stock. The dividend will be paid on or about July 22, 2015 to stockholders of record as of the close of business on June 29, 2015. | |
Stock Repurchase Program | |
On May 29, 2015, the Board of Directors of the Company authorized a repurchase program under which the Company may repurchase up to $500,000 of the Company’s common stock through February 29, 2016. Under the repurchase program repurchases may be made by the Company from time to time in the open market or through privately negotiated transactions depending on market conditions, stock price, corporate and regulatory requirements and other factors. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||
Nature of Operations and Activities | Nature of Operations and Activities | ||||||||||||||||
Solitron Devices, Inc., a Delaware corporation (the “Company” or “Solitron”), designs, develops, manufactures, and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The Company was incorporated under the laws of the State of New York in 1959 and reincorporated under the laws of the State of Delaware in August 1987. | |||||||||||||||||
Basis of Presentation | Basis of Presentation | ||||||||||||||||
The financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. | |||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||||||
Cash and cash equivalents include demand deposits and money market accounts. | |||||||||||||||||
Investment in Treasury Bills and Certificates of Deposit | Investment in Treasury Bills and Certificates of Deposit | ||||||||||||||||
Investment in Treasury Bills/Certificates of Deposit includes treasury bills with maturities of one year or less, and Certificates of Deposit with maturities from one to three years, and is stated at market value. All of the Company’s investments are classified as available-for-sale. As they are available for current operations, they are classified as current on the balance sheets. Investments in available-for-sale securities are reported at fair value with unrecognized gains or losses, net of tax, as a component of accumulated other comprehensive income and is included as a separate component of stockholders’ equity. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when the declines are determined to be other-than-temporary. | |||||||||||||||||
The following table summarizes the Company's available-for-sale investments: | |||||||||||||||||
28-Feb-15 | |||||||||||||||||
Cost | Gross Unrealized Gains | Gross | Fair Value | ||||||||||||||
Unrealized Losses | |||||||||||||||||
(In thousands) | |||||||||||||||||
Short-term investments: | |||||||||||||||||
Certificates of deposit | $ | 6,970 | $ | 1 | $ | - | $ | 6,971 | |||||||||
Total short-term investments | $ | 6,970 | $ | 1 | $ | - | $ | 6,971 | |||||||||
28-Feb-14 | |||||||||||||||||
Cost | Gross Unrealized Gains | Gross | Fair Value | ||||||||||||||
Unrealized Losses | |||||||||||||||||
(In thousands) | |||||||||||||||||
Short-term investments: | |||||||||||||||||
Treasury bills | $ | 1,282 | $ | 0.49 | $ | - | $ | 1,282 | |||||||||
Certificates of deposit | 4,978 | 0.51 | - | 4,979 | |||||||||||||
Total short-term investments | $ | 6,260 | $ | 1 | $ | - | $ | 6,261 | |||||||||
At February 28, 2015 and February 28, 2014, the deferred tax liability related to unrecognized gains and losses on short-term investments was $0. | |||||||||||||||||
As of February 28, 2015, contractual maturities of the Company's available-for-sale non-equity investments were as follows: | |||||||||||||||||
Cost | Fair | ||||||||||||||||
Value | |||||||||||||||||
(In thousands) | |||||||||||||||||
Maturing within one year | $ | 6,970 | $ | 6,971 | |||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||||||||
Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” defines “fair value” as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also sets forth a valuation hierarchy of the inputs (assumptions that market participants would use in pricing an asset or liability) used to measure fair value. This hierarchy prioritizes the inputs into the following three levels: | |||||||||||||||||
Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. | |||||||||||||||||
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |||||||||||||||||
Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that results in management’s best estimate of fair value. | |||||||||||||||||
The Company’s Treasury bills and brokered certificates of deposits are subject to level 1 fair value measurement. | |||||||||||||||||
The carrying amounts of the Company’s short-term financial instruments, including accounts receivable, accounts payable, accrued expenses and other liabilities approximate their fair value due to the relatively short period to maturity for these instruments. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities, and the carrying amount of the long-term debt approximates fair value. | |||||||||||||||||
Accounts Receivable | Accounts Receivable | ||||||||||||||||
Accounts receivable consists of unsecured credit extended to the Company’s customers in the ordinary course of business. The Company reserves for any amounts deemed to be uncollectible based on past collection experiences and an analysis of outstanding balances, using an allowance account. The allowance amount was $2,000 as of February 28, 2015 and February 28, 2014. | |||||||||||||||||
Shipping and Handling | Shipping and Handling | ||||||||||||||||
Shipping and handling costs billed to customers are recorded in net sales. Shipping costs incurred by the Company are recorded in cost of sales. | |||||||||||||||||
Inventories | Inventories | ||||||||||||||||
Inventories are stated at the lower of cost or market. Cost is determined using the “first-in, first-out” (FIFO) method. The Company buys raw material only to fill customer orders. Excess raw material is created only when a vendor imposes a minimum buy in excess of actual requirements. Such excess material will usually be utilized to meet the requirements of the customer’s subsequent orders. If excess material is not utilized after two fiscal years it is fully reserved. Any inventory item once designated as reserved is carried at zero value in all subsequent valuation activities. | |||||||||||||||||
The Company’s inventory valuation policy is as follows: | |||||||||||||||||
Raw material /Work in process: | All material purchased, processed, and/or used in the last two fiscal years is valued at the lower of its acquisition cost or market. All material not purchased/used in the last two fiscal years is fully reserved. | ||||||||||||||||
Finished goods: | All finished goods with firm orders for later delivery are valued (material and overhead) at the lower of cost or market. All finished goods with no orders are fully reserved. | ||||||||||||||||
Direct labor costs: | Direct labor costs are allocated to finished goods and work in process inventory based on engineering estimates of the amount of man-hours required from the different direct labor departments to bring each device to its particular level of completion. | ||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||||||
Property, plant, and equipment is recorded at cost. Major renewals and improvements are capitalized, while maintenance and repairs that do not extend their expected life are expensed as incurred. Depreciation is provided on a straight-line basis over the estimated useful lives of the related assets: | |||||||||||||||||
Leasehold Improvements | 10 years | ||||||||||||||||
Machinery and Equipment | 5 years | ||||||||||||||||
Concentrations of Credit Risk | Concentrations of Credit Risk | ||||||||||||||||
Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and trade receivables. The Company places its cash with high credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant credit risk on the accounts. As of February 28, 2015, all non-interest bearing checking accounts were FDIC insured to a limit of $250,000. Deposits in excess of FDIC insured limits were approximately $560,000 at February 28, 2015. With respect to the trade receivables, most of the Company’s products are custom made pursuant to contracts with customers whose end-products are sold to the United States Government. The Company performs ongoing credit evaluations of its customers’ financial condition and maintains allowances for potential credit losses. Actual losses and allowances have historically been within management’s expectations. | |||||||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||||||
Revenue is recognized in accordance with SEC Staff Accounting Bulletin No. 104, Revenue Recognition. This pronouncement requires that four basic criteria be met before revenue can be recognized: 1) there is evidence that an arrangement exists; 2) delivery has occurred; 3) the fee is fixed or determinable; and 4) collectability is reasonably assured. We recognize revenue upon determination that all criteria for revenue recognition have been met. The criteria are usually met at the time of product shipment. Shipping terms are generally FCA (Free Carrier) shipping point. | |||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||
Income taxes are accounted for under the asset and liability method of ASC 740-10, “Income Taxes”. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized by the use of a valuation allowance. | |||||||||||||||||
The Company adopted guidance related to accounting for uncertainty in income taxes in accordance with ASC 740-10 and began evaluating tax positions utilizing a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the position. The second step is to measure the benefit to be recorded from tax positions that meet the more-likely-than-not recognition threshold by determining the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement and recognizing that amount in the financial statements. Solitron has adopted ASC 740-10 and no material impact on its financial condition, results of operations, cash flows, or disclosures occurred upon adoption. | |||||||||||||||||
Net Income Per Common Share | Net Income Per Common Share | ||||||||||||||||
Net income per common share is presented in accordance with ASC 260-10 “Earnings per Share.” Basic earnings per common share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per common share incorporate the incremental shares issuable upon the assumed exercise of stock options to the extent they are not anti-dilutive using the treasury stock method. | |||||||||||||||||
Impairment of long-lived assets | Impairment of long-lived assets | ||||||||||||||||
Potential impairments of long-lived assets are reviewed annually or when events and circumstances warrant an earlier review. In accordance with ASC Subtopic 360-10, "Property, Plant and Equipment – Overall," impairment is determined when estimated future undiscounted cash flows associated with an asset are less than the asset’s carrying value. | |||||||||||||||||
Financial Statement Estimates | Financial Statement Estimates | ||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and the differences could be material. Such estimates include depreciable life of property and equipment, accounts receivable allowance, deferred tax valuation allowance, and allowance for inventory obsolescence. | |||||||||||||||||
Stock based compensation | Stock based compensation | ||||||||||||||||
The Company records stock-based compensation in accordance with the provisions of ASC Topic 718, "Compensation-Stock Compensation," which establishes accounting standards for transactions in which an entity exchanges its equity instruments for goods or services. Under ASC Topic 718, the Company recognizes an expense for the fair value of outstanding stock options and grants as they vest, whether held by employees or others. No vesting of stock options occurred during the year ended February 28, 2015 or February 28, 2014. | |||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||||||
No recent accounting pronouncements affecting the Company were issued by the Financial Accounting Standards Board or other standards-setting bodies. | |||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||
Summary of available-for-sale investments | 28-Feb-15 | ||||||||||||||||
Cost | Gross Unrealized Gains | Gross | Fair Value | ||||||||||||||
Unrealized Losses | |||||||||||||||||
(In thousands) | |||||||||||||||||
Short-term investments: | |||||||||||||||||
Certificates of deposit | $ | 6,970 | $ | 1 | $ | - | $ | 6,971 | |||||||||
Total short-term investments | $ | 6,970 | $ | 1 | $ | - | $ | 6,971 | |||||||||
28-Feb-14 | |||||||||||||||||
Cost | Gross Unrealized Gains | Gross | Fair Value | ||||||||||||||
Unrealized Losses | |||||||||||||||||
(In thousands) | |||||||||||||||||
Short-term investments: | |||||||||||||||||
Treasury bills | $ | 1,282 | $ | 0.49 | $ | - | $ | 1,282 | |||||||||
Certificates of deposit | 4,978 | 0.51 | - | 4,979 | |||||||||||||
Total short-term investments | $ | 6,260 | $ | 1 | $ | - | $ | 6,261 | |||||||||
Contractual maturities of available-for-sale non-equity investments | Cost | Fair | |||||||||||||||
Value | |||||||||||||||||
(In thousands) | |||||||||||||||||
Maturing within one year | $ | 6,970 | $ | 6,971 | |||||||||||||
Summary of estimated useful lives of assets | Leasehold Improvements | 10 years | |||||||||||||||
Machinery and Equipment | 5 years |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Summary of basic and diluted earnings per common share | Fiscal Year Ended | ||||||||
28-Feb | |||||||||
2015 | 2014 | ||||||||
Weighted average common shares outstanding | 2,183,876 | 2,177,832 | |||||||
Dilutive effect of employee stock options | 224,759 | 226,558 | |||||||
Weighted average common shares outstanding, assuming dilution | 2,408,635 | 2,404,390 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Inventories [Abstract] | |||||||||||||
Schedule of inventories | As of February 28, 2015, inventories consist of the following: | ||||||||||||
Gross | Reserve | Net | |||||||||||
Raw Materials | $ | 2,124,000 | $ | (404,000 | ) | $ | 1,720,000 | ||||||
Work-In-Process | 3,744,000 | (1,624,000 | ) | 2,120,000 | |||||||||
Finished Goods | 1,077,000 | (720,000 | ) | 357,000 | |||||||||
Totals | $ | 6,945,000 | $ | (2,748,000 | ) | $ | 4,197,000 | ||||||
As of February 28, 2014, inventories consist of the following: | |||||||||||||
Gross | Reserve | Net | |||||||||||
Raw Materials | $ | 1,878,000 | $ | (447,000 | ) | $ | 1,431,000 | ||||||
Work-In-Process | 3,103,000 | (1,292,000 | ) | 1,811,000 | |||||||||
Finished Goods | 1,782,000 | (708,000 | ) | 1,074,000 | |||||||||
Totals | $ | 6,763,000 | $ | (2,447,000 | ) | $ | 4,316,000 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Components of property, plant, and equipment | |||||||||
2015 | 2014 | ||||||||
Leasehold Improvements | $ | 227,000 | $ | 220,000 | |||||
Machinery and Equipment | 3,118,000 | 3,002,000 | |||||||
Subtotal | 3,345,000 | 3,222,000 | |||||||
Less: Accumulated Depreciation and Amortization | (2,887,000 | ) | (2,664,000 | ) | |||||
Net Property, Plant and Equipment | $ | 458,000 | $ | 558,000 |
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Accrued Expenses and Other Current Liabilities [Abstract] | |||||||||
Summary of accrued expenses and other current liabilities | 2015 | 2014 | |||||||
Payroll and related employee benefits | $ | 575,000 | $ | 539,000 | |||||
Income taxes | 15,000 | 15,000 | |||||||
Property taxes | 7,000 | 7,000 | |||||||
Other liabilities | 35,000 | 44,000 | |||||||
Totals | $ | 632,000 | $ | 605,000 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Income Taxes [Abstract] | |||||||||
Components of net deferred taxes | Deferred Tax Asset (Liability): | 2015 | 2014 | ||||||
Current | |||||||||
Allowance for doubtful accounts | $ | 1,000 | $ | 1,000 | |||||
Inventory allowance | 1,044,000 | 930,000 | |||||||
Section 263A capitalized costs | 85,000 | 246,000 | |||||||
Total current deferred tax assets | 1,130,000 | 1,177,000 | |||||||
Valuation allowance | (1,130,000 | ) | (1,177,000 | ) | |||||
$ | 0 | $ | 0 | ||||||
Long-term | |||||||||
Loss carryforwards | $ | 3,959,000 | $ | 5,309,000 | |||||
Depreciation | (31,000 | ) | (46,000 | ) | |||||
Total long-term deferred tax assets | 3,928,000 | 5,263,000 | |||||||
Valuation allowance | (3,928,000 | ) | (5,263,000 | ) | |||||
$ | 0 | $ | 0 | ||||||
Reconciliation of the U.S. federal statutory tax rate to the Company's effective tax rate | 2015 | 2014 | |||||||
U.S. federal statutory rate | 34 | % | 34 | % | |||||
Change in valuation allowance | (34.0 | ) | (34.0 | ) | |||||
Alternative Minimum Taxes | 2 | 1 | |||||||
Effective income tax rate | 2 | % | 1 | % |
Stock_Options_Tables
Stock Options (Tables) (Stock Options [Member]) | 12 Months Ended | ||||||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||||||
Stock Options [Member] | |||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||
Summary of company's stock option activity | |||||||||||||||||||||||||
Weighted- | |||||||||||||||||||||||||
Weighted- | Average | ||||||||||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||||||||||
Options | Exercise | Contractual | Intrinsic | ||||||||||||||||||||||
Outstanding | Price | Term | Value | ||||||||||||||||||||||
Balance, February 28, 2013 | 451,560 | $ | 0.76 | 3.65 | $ | 1,360,000 | |||||||||||||||||||
Expired | (3,000 | ) | |||||||||||||||||||||||
Balance, February 28, 2014 | 448,560 | 0.74 | 2.61 | $ | 1,496,000 | ||||||||||||||||||||
Expired | (900 | ) | |||||||||||||||||||||||
Exercised | (8,000 | ) | |||||||||||||||||||||||
Balance, February 28, 2015 | 439,660 | $ | 0.73 | 1.94 | $ | 1,570,341 | |||||||||||||||||||
Summarized information about stock options outstanding and exercisable | Options Outstanding | Exercisable Options | |||||||||||||||||||||||
Range of | Number of | Remaining | Weighted Average | Number | Weighted Average | ||||||||||||||||||||
Exercise Prices | Outstanding | Contractual | Exercise | Exercise | |||||||||||||||||||||
Options | Life | Price | Price | ||||||||||||||||||||||
$ | 0.4 | $ | 0.4 | 254,624 | Evergreen | $ | 0.4 | 254,624 | $ | 0.4 | |||||||||||||||
$ | 1.05 | $ | 1.05 | 175,636 | Evergreen | $ | 1.05 | 175,636 | $ | 1.05 | |||||||||||||||
$ | 0.75 | $ | 0.75 | 1,000 | 1 years | $ | 0.75 | 1,000 | $ | 0.75 | |||||||||||||||
$ | 3.95 | $ | 3.95 | 8,400 | 2 years | $ | 3.95 | 8,400 | $ | 3.95 | |||||||||||||||
439,660 | $ | 0.74 | 439,660 | $ | 0.74 | ||||||||||||||||||||
Export_Sales_and_Major_Custome1
Export Sales and Major Customers (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||
Export Sales and Major Customers [Abstract] | |||||||||||||||||||||
Revenues from domestic and export sales to unaffiliated customers | Power | Field Effect | Power | ||||||||||||||||||
Geographic Region | Transistors | Hybrids | Transistors | MOSFETS | Totals | ||||||||||||||||
Europe and Australia | $ | 0 | $ | 904,000 | $ | 10,000 | $ | 0 | $ | 914,000 | |||||||||||
Canada and Latin America | 47,000 | 0 | 20,000 | 13,000 | 80,000 | ||||||||||||||||
Far East and Middle East | 18,000 | 0 | 40,000 | 481,000 | 539,000 | ||||||||||||||||
United States | 1,313,000 | 4,586,000 | 278,000 | 2,047,000 | 8,224,000 | ||||||||||||||||
Totals | $ | 1,378,000 | $ | 5,490,000 | $ | 348,000 | $ | 2,541,000 | $ | 9,757,000 | |||||||||||
Power | Field Effect | Power | |||||||||||||||||||
Geographic Region | Transistors | Hybrids | Transistors | MOSFETS | Totals | ||||||||||||||||
Europe and Australia | $ | 9,000 | $ | 697,000 | $ | 28,000 | $ | 18,000 | $ | 752,000 | |||||||||||
Canada and Latin America | 96,000 | 0 | 11,000 | 0 | 107,000 | ||||||||||||||||
Far East and Middle East | 10,000 | 0 | 11,000 | 329,000 | 350,000 | ||||||||||||||||
United States | 1,143,000 | 3,684,000 | 392,000 | 2,222,000 | 7,441,000 | ||||||||||||||||
Totals | $ | 1,258,000 | $ | 4,381,000 | $ | 442,000 | $ | 2,569,000 | $ | 8,650,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
Commitments and Contingencies [Abstract] | |||||
Future minimum lease payments for the manufacturing facility | Fiscal Year Ending February 28/29 | Amount | |||
2016 | $ | 415,000 | |||
2017 | $ | 427,000 | |||
2018 | $ | 440,000 | |||
2019 | $ | 454,000 | |||
2020 | $ | 467,000 | |||
2021 | $ | 481,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Short-term investments: | ||
Cost | $6,970,000 | $6,260,000 |
Gross Unrealized Gains | 1,000 | |
Gross Unrealized Losses | ||
Fair Value | 6,971,000 | 6,261,000 |
Treasury bills [Member] | ||
Short-term investments: | ||
Cost | 1,282,000 | |
Gross Unrealized Gains | 490 | |
Gross Unrealized Losses | ||
Fair Value | 1,282,000 | |
Certificates of deposit [Member] | ||
Short-term investments: | ||
Cost | 6,970,000 | 4,978,000 |
Gross Unrealized Gains | 1,000 | 510 |
Gross Unrealized Losses | ||
Fair Value | $6,971,000 | $4,979,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Schedule of contractual maturities of the Company's available-for-sale non-equity investments | |
Maturing within one year, cost basis | $6,970 |
Maturing within one year, fair value basis | $6,971 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Feb. 28, 2015 | |
Leasehold Improvements [Member] | |
Summary of property plant and equipment estimated useful lives | |
Estimated useful lives | 10 years |
Machinery and Equipment [Member] | |
Summary of property plant and equipment estimated useful lives | |
Estimated useful lives | 5 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Summary of significant accounting policies (Textual) | ||
Deferred tax liability related to unrecognized gains and losses on short-term investments | $0 | $0 |
Allowance for doubtful accounts (in dollars) | 2,000 | 2,000 |
FDIC insured limit | 250,000 | |
Deposits in excess of FDIC insured limits | $560,000 | |
Number of shares options vested | 0 | |
Treasury bills [Member] | ||
Summary of significant accounting policies (Textual) | ||
Maturity term | One year or less. | |
Certificates of deposit [Member] | ||
Summary of significant accounting policies (Textual) | ||
Maturity term | One to three years. |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Summery of basic and diluted earnings per common share | ||
Weighted average common shares outstanding | 2,183,876 | 2,177,832 |
Dilutive effect of employee stock options | 224,759 | 226,558 |
Weighted average common shares outstanding, assuming dilution | 2,408,635 | 2,404,390 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Earning per share (Textual) | ||
Antidilutive Securities excluded from computation of earnings per share, Amount | 8,400 | 12,300 |
Inventories_Details
Inventories (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
Schedule of Inventories | ||
Inventory, Raw Materials, Gross | $2,124,000 | $1,878,000 |
Inventory, Work-In-Process, Gross | 3,744,000 | 3,103,000 |
Inventory, Finished Goods, Gross | 1,077,000 | 1,782,000 |
Inventory, Gross, Total | 6,945,000 | 6,763,000 |
Inventory Raw Material Reserve | -404,000 | -447,000 |
Inventory Work-In-Process Reserve | -1,624,000 | -1,292,000 |
Inventory Finished Goods Reserve | -720,000 | -708,000 |
Inventory Adjustments, Total | -2,748,000 | -2,447,000 |
Inventory, Raw material, Net | 1,720,000 | 1,431,000 |
Inventory, Work in Process, Net | 2,120,000 | 1,811,000 |
Inventory, Finished Goods, Net | 357,000 | 1,074,000 |
Inventories, Net | $4,197,000 | $4,316,000 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
Components of property, plant, and equipment | ||
Subtotal | $3,345,000 | $3,222,000 |
Less: Accumulated Depreciation and Amortization | -2,887,000 | -2,664,000 |
Net Property, Plant and Equipment | 458,000 | 558,000 |
Leasehold Improvements [Member] | ||
Components of property, plant, and equipment | ||
Subtotal | 227,000 | 220,000 |
Machinery and Equipment [Member] | ||
Components of property, plant, and equipment | ||
Subtotal | $3,118,000 | $3,002,000 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Property, Plant and Equipment (Textual) | ||
Depreciation and amortization expense | $223 | $237 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
Accrued expenses and other liabilities | ||
Payroll and related employee benefits | $575,000 | $539,000 |
Income taxes | 15,000 | 15,000 |
Property taxes | 7,000 | 7,000 |
Other liabilities | 35,000 | 44,000 |
Totals | $632,000 | $605,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
Current | ||
Allowance for doubtful accounts | $1,000 | $1,000 |
Inventory allowance | 1,044,000 | 930,000 |
Section 263A capitalized costs | 85,000 | 246,000 |
Total current deferred tax assets | 1,130,000 | 1,177,000 |
Valuation allowance | -1,130,000 | -1,177,000 |
Total net deferred taxes | 0 | 0 |
Long-term | ||
Loss carryforwards | 3,959,000 | 5,309,000 |
Depreciation | -31,000 | -46,000 |
Total long-term deferred tax assets | 3,928,000 | 5,263,000 |
Valuation allowance | -3,928,000 | -5,263,000 |
Total net deferred tax assets | $0 | $0 |
Income_Taxes_Details_1
Income Taxes (Details 1) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Reconciliation of the U.S. federal statutory tax rate to the Company's effective tax rate | ||
U.S. federal statutory rate | 34.00% | 34.00% |
Change in valuation allowance | -34.00% | -34.00% |
Alternative Minimum Taxes | 2.00% | 1.00% |
Effective income tax rate | 2.00% | 1.00% |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended |
Feb. 28, 2015 | |
Income taxes (Textual) | |
Operating loss carryforwards, net | $11,701,000 |
Operating loss carryforwards, Expiration dates | 28-Feb-29 |
Valuation allowance recorded on deferred tax assets percentage | 100.00% |
Operating Loss Carryforwards, Limitations on Use | Should a cumulative change in the ownership of more than 50% occur within a three-year period, there could be an annual limitation on the use of the net operating loss carryforwards. |
Cumulative change in ownership percentage | 50.00% |
Period for cumulative change in ownership | 3 years |
Stock_Options_Details
Stock Options (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Summary of stock option activities [Abstract] | |||
Beginning balance, Options Outstanding | 448,560 | 451,560 | |
Options Outstanding Expired | -900 | -3,000 | |
Options Outstanding, Exercised | -8,000 | ||
Ending balance, Options Outstanding | 439,660 | 448,560 | 451,560 |
Beginning balance, Weighted-average exercise price | $0.74 | $0.76 | |
Ending balance, Weighted-Average Exercise Price | $0.73 | $0.74 | $0.76 |
Balance, Weighted-Average Remaining Contractual Term | 1 year 11 months 9 days | 2 years 7 months 10 days | 3 years 7 months 24 days |
Beginning balance, Aggregate Intrinsic Value | $1,496,000 | $1,360,000 | |
Ending balance, Aggregate Intrinsic Value | $1,570,341 | $1,496,000 | $1,360,000 |
Stock_Options_Details_1
Stock Options (Details 1) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Details regarding stock options ranges, outstanding and exercisable numbers | |||
Number of Outstanding Options | 439,660 | 448,560 | 451,560 |
Options Outstanding, Weighted Average Exercise Price | $0.73 | $0.74 | $0.76 |
Stock Options [Member] | |||
Details regarding stock options ranges, outstanding and exercisable numbers | |||
Number of Outstanding Options | 439,660 | ||
Options Outstanding, Weighted Average Exercise Price | $0.74 | ||
Exercisable Options, Number | 439,660 | ||
Exercisable Options, Weighted Average Exercise Price | $0.74 | ||
Exercise Price Range One [Member] | Stock Options [Member] | |||
Details regarding stock options ranges, outstanding and exercisable numbers | |||
Upper Range of Exercise Prices | $0.40 | ||
Lower Range of Exercise Prices | $0.40 | ||
Number of Outstanding Options | 254,624 | ||
Options, Remaining Contractual Life | Evergreen | ||
Options Outstanding, Weighted Average Exercise Price | $0.40 | ||
Exercisable Options, Number | 254,624 | ||
Exercisable Options, Weighted Average Exercise Price | $0.40 | ||
Exercise Price Range Two [Member] | Stock Options [Member] | |||
Details regarding stock options ranges, outstanding and exercisable numbers | |||
Upper Range of Exercise Prices | $1.05 | ||
Lower Range of Exercise Prices | $1.05 | ||
Number of Outstanding Options | 175,636 | ||
Options, Remaining Contractual Life | Evergreen | ||
Options Outstanding, Weighted Average Exercise Price | $1.05 | ||
Exercisable Options, Number | 175,636 | ||
Exercisable Options, Weighted Average Exercise Price | $1.05 | ||
Exercise Price Range Three [Member] | Stock Options [Member] | |||
Details regarding stock options ranges, outstanding and exercisable numbers | |||
Upper Range of Exercise Prices | $0.75 | ||
Lower Range of Exercise Prices | $0.75 | ||
Number of Outstanding Options | 1,000 | ||
Options, Remaining Contractual Life | 1 years | ||
Options Outstanding, Weighted Average Exercise Price | $0.75 | ||
Exercisable Options, Number | 1,000 | ||
Exercisable Options, Weighted Average Exercise Price | $0.75 | ||
Exercise Price Range Four [Member] | Stock Options [Member] | |||
Details regarding stock options ranges, outstanding and exercisable numbers | |||
Upper Range of Exercise Prices | $3.95 | ||
Lower Range of Exercise Prices | $3.95 | ||
Number of Outstanding Options | 8,400 | ||
Options, Remaining Contractual Life | 2 years | ||
Options Outstanding, Weighted Average Exercise Price | $3.95 | ||
Exercisable Options, Number | 8,400 | ||
Exercisable Options, Weighted Average Exercise Price | $3.95 |
Stock_Options_Details_Textual
Stock Options (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||
Feb. 28, 2015 | Jan. 23, 2006 | 16-May-05 | 17-May-04 | Dec. 31, 2000 | Feb. 28, 2014 | Feb. 28, 2013 | |
Stock Option (Textual) | |||||||
Number of options granted | 0 | ||||||
Number of shares options vested | 0 | ||||||
Number of Outstanding Options | 439,660 | 448,560 | 451,560 | ||||
Stock Options [Member] | |||||||
Stock Option (Textual) | |||||||
Common stock option vest date | 23-Jan-07 | 15-May-06 | 16-May-05 | ||||
Number of options granted | 14,700 | 47,000 | 47,500 | ||||
Stock options exercise price | $3.95 | $0.75 | $1.05 | ||||
Stock option expiration date | 23-Jan-16 | 15-May-15 | 16-May-14 | ||||
Options vesting period, description | Valid for ten years and vest twelve months after the award date unless otherwise stated in the option awards. | ||||||
Number of Outstanding Options | 439,660 | ||||||
Director [Member] | Stock Options [Member] | |||||||
Stock Option (Textual) | |||||||
Number of Outstanding Options | 8,400 | ||||||
Director [Member] | Stock options one [Member] | |||||||
Stock Option (Textual) | |||||||
Number of Outstanding Options | 1,000 | ||||||
Company's President [Member] | Stock Options [Member] | |||||||
Stock Option (Textual) | |||||||
Number of options granted | 175,636 | 254,624 | |||||
Stock options exercise price | $1.05 | $0.40 | |||||
Percentage of outstanding shares made to the Company's President | 10.00% | ||||||
Options vesting period, description | Fifty percent (50%) of the total number of shares was immediately exercisable and the other 50% vested in five equal installments over the following five years. |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) | 12 Months Ended |
Feb. 28, 2015 | |
Employee Benefit Plans (Textual) | |
Minimum period of employee service | 3 months |
Maximum [Member] | |
Employee Benefit Plans (Textual) | |
Defined contribution plan, company | 25.00% |
Minimum [Member] | |
Employee Benefit Plans (Textual) | |
Defined contribution plan, company | 4.00% |
Export_Sales_and_Major_Custome2
Export Sales and Major Customers (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | $9,757,000 | $8,650,000 |
Power Transistors [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 1,378,000 | 1,258,000 |
Hybrids [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 5,490,000 | 4,381,000 |
Field Effect Transistors [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 348,000 | 442,000 |
Power MOSFETS [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 2,541,000 | 2,569,000 |
Europe and Australia [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 914,000 | 752,000 |
Europe and Australia [Member] | Power Transistors [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 0 | 9,000 |
Europe and Australia [Member] | Hybrids [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 904,000 | 697,000 |
Europe and Australia [Member] | Field Effect Transistors [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 10,000 | 28,000 |
Europe and Australia [Member] | Power MOSFETS [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 0 | 18,000 |
Canada and Latin America [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 80,000 | 107,000 |
Canada and Latin America [Member] | Power Transistors [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 47,000 | 96,000 |
Canada and Latin America [Member] | Hybrids [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 0 | 0 |
Canada and Latin America [Member] | Field Effect Transistors [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 20,000 | 11,000 |
Canada and Latin America [Member] | Power MOSFETS [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 13,000 | 0 |
Far East and Middle East [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 539,000 | 350,000 |
Far East and Middle East [Member] | Power Transistors [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 18,000 | 10,000 |
Far East and Middle East [Member] | Hybrids [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 0 | 0 |
Far East and Middle East [Member] | Field Effect Transistors [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 40,000 | 11,000 |
Far East and Middle East [Member] | Power MOSFETS [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 481,000 | 329,000 |
United States [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 8,224,000 | 7,441,000 |
United States [Member] | Power Transistors [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 1,313,000 | 1,143,000 |
United States [Member] | Hybrids [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 4,586,000 | 3,684,000 |
United States [Member] | Field Effect Transistors [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | 278,000 | 392,000 |
United States [Member] | Power MOSFETS [Member] | ||
Revenues from domestic and export sales to unaffiliated customers | ||
Revenues, Total | $2,047,000 | $2,222,000 |
Export_Sales_and_Major_Custome3
Export Sales and Major Customers (Details Textual) (Net Sales [Member]) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Customers | Customers | |
Percentage sales to major customer | ||
Sales from major customers | 63.00% | 62.00% |
Number of major customers | 2 | 2 |
Raytheon Company [Member] | ||
Percentage sales to major customer | ||
Sales from major customers | 48.00% | 56.00% |
United States Government [Member] | ||
Percentage sales to major customer | ||
Sales from major customers | 15.00% | 6.00% |
Major_Suppliers_Details
Major Suppliers (Details) (Purchases [Member]) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Suppliers | Suppliers | |
Purchases [Member] | ||
Major Suppliers (Textual) | ||
Purchases from major suppliers | 30.00% | 43.00% |
Number of major suppliers | 2 | 2 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Feb. 28, 2015 |
Future minimum lease payments for the Manufacturing Facility | |
2016 | $415,000 |
2017 | 427,000 |
2018 | 440,000 |
2019 | 454,000 |
2020 | 467,000 |
2021 | $481,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||
Nov. 30, 2013 | Feb. 28, 2015 | Feb. 28, 2014 | Dec. 05, 2014 | Jan. 14, 2014 | Dec. 31, 2000 | 22-May-13 | Feb. 14, 2013 | Mar. 27, 2013 | Oct. 01, 2014 | |
sqft | ||||||||||
Commitments and Contingencies (Textual) | ||||||||||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | ||||||||
Payment under settlement agreement | $125,000 | |||||||||
Rent expenses | 370,000 | 394,000 | ||||||||
Employment Agreement [Member] | Mr. Saraf [Member] | ||||||||||
Commitments and Contingencies (Textual) | ||||||||||
Term of agreement | 5 years | |||||||||
Annual compensation | 321,500 | 296,500 | 240,000 | |||||||
Percentage of bonus, description | Bonus equal to fifteen percent (15%) of the Company's pre-tax income in excess of Two Hundred Fifty Thousand Dollars ($250,000). | |||||||||
Term of bonus payable | 90 days | |||||||||
Accrued bonus | 105,000 | |||||||||
Notice period of employment agreement | 180 days | |||||||||
Percentage of outstanding shares available for options | 10.00% | |||||||||
Common stock, par value (in dollars per share) | $0.01 | |||||||||
Exercise price of option | $0.40 | |||||||||
Percentage of options granted and vested immediately | 50.00% | |||||||||
Options granted, description | Fifty percent (50%) of the Initial Stock Options granted were vested immediately upon grant. The remaining fifty percent (50%) of the Initial Stock Options vested in equal amounts on each of the first five anniversaries of the date of grant. | |||||||||
ATP Settlement Agreement [Member] | ||||||||||
Commitments and Contingencies (Textual) | ||||||||||
Payment under settlement agreement | 7,710 | 10,000 | ||||||||
FDEP Settlement Agreement [Member] | ||||||||||
Commitments and Contingencies (Textual) | ||||||||||
Payment under settlement agreement | 165,000 | |||||||||
Operating Leases [Member] | ||||||||||
Commitments and Contingencies (Textual) | ||||||||||
Area of leased space (In square foot) | 47,000 | |||||||||
Base rent per month | $34,451 | |||||||||
Operating lease expiration date | 31-Dec-21 | |||||||||
Period over which lease agreement can be extended | 5 years | |||||||||
Operating leases description | The Company has the option to extend the term of the Lease for an additional five years beginning on January 1, 2022 and ending on December 31, 2026. |
Other_Income_Details
Other Income (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Other income (Textual) | ||
Other income, net | $8,000 | $163,000 |
Income from the settlement of outstanding debt | 167,000 | |
Other expense attributable to receivables adjustments | $4,000 |
Subsequent_Events_Details
Subsequent Events (Details) (Board of Directors Chairman [Member], Subsequent Event [Member], USD $) | 12 Months Ended |
Feb. 28, 2015 | |
Board of Directors Chairman [Member] | Subsequent Event [Member] | |
Subsequent Events [Textual ] | |
Cash dividends, per share | $0.25 |
Repurchase of common stock, value | $500,000 |