Solitron Devices (SODI) 10-Q 15 Jul 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May. 31, 2015	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	SOLITRON DEVICES INC
Entity Central Index Key	91,668
Amendment Flag	false
Current Fiscal Year End Date	--02-28
Document Type	10-Q
Document Period End Date	May 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,298,004

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands	May. 31, 2015	Feb. 28, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 929	$ 820
Treasury bills and certificates of deposit	7,212	6,971
Accounts receivable, less allowance for doubtful accounts of $2	907	1,018
Inventories, net (Note 4)	3,848	4,197
Prepaid expenses and other current assets	210	123
TOTAL CURRENT ASSETS	13,106	13,129
PROPERTY, PLANT AND EQUIPMENT, net	490	458
OTHER ASSETS	8	8
TOTAL ASSETS	13,604	13,595
CURRENT LIABILITIES
Accounts payable - Post-petition	225	425
Customer deposits	25	20
Accrued expenses and other liabilities (Note 7)	1,344	632
TOTAL CURRENT LIABILITIES	1,594	1,077
TOTAL LIABILITIES	$ 1,594	$ 1,077
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value, authorized 500,000 shares, none issued
Common stock, $.01 par value, authorized 10,000,000 shares, 2,187,132 and 2,185,832 shares issued and outstanding, net of 273,230 shares of treasury stock as of May 31, 2015 and February 28, 2015 respectively	$ 23	$ 23
Additional paid-in capital	2,751	2,749
Accumulated other comprehensive income	15	15
Retained earnings	9,496	10,006
Less treasury stock	(275)	(275)
TOTAL STOCKHOLDERS' EQUITY	12,010	12,518
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 13,604	$ 13,595

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	May. 31, 2015	Feb. 28, 2015
Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 2	$ 2
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	2,187,132	2,185,832
Common stock, shares outstanding	2,187,132	2,185,832
Treasury stock, shares	273,230	273,230

Condensed Statements of Income

Condensed Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May. 31, 2015	May. 31, 2014
Income Statement [Abstract]
Net sales	$ 2,383	$ 2,305
Cost of sales	1,880	1,814
Gross profit	503	491
Selling, general and administrative expenses	466	336
Operating income	37	155
Other income (expenses):
Interest income	$ 5	4
Other, net (Note 6)		8
Income before provision for income taxes	$ 42	167
Provision for income taxes	7	4
Net income	35	163
Other comprehensive income:
Unrealized (loss)/gain on investments	2	(1)
Total comprehensive income	$ 37	$ 162
Income per share from operating income-Basic	$ 0.02	$ 0.07
Income per share from operating income-Diluted	0.01	0.07
Net income per share-Basic	0.02	0.07
Net income per share-Diluted	$ 0.02	$ 0.07
Weighted average shares outstanding-Basic	2,187,132	2,178,008
Weighted average shares outstanding-Diluted	2,411,137	2,402,138

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May. 31, 2015	May. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 35	$ 163
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	51	56
Decrease (increase) in operating assets:
Accounts receivable	111	142
Inventories, net	349	(1)
Prepaid expenses and other current assets	$ (87)	(55)
Other assets		1
Increase (decrease) in operating liabilities:
Accounts payable - Post-petition	$ (200)	90
Accounts payable - Pre-petition		(8)
Customer deposits	$ 4	(88)
Accrued expenses and other liabilities	168	25
Total adjustments	396	162
NET CASH PROVIDED BY OPERATING ACTIVITIES	431	325
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of treasury bills and certificates of deposit	1,754	1,598
Purchases of treasury bills and certificates of deposit	(1,995)	(1,743)
Purchases of property, plant and equipment	(83)	(19)
NET CASH (USED IN) INVESTING ACTIVITIES	(324)	(164)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash from exercise of employee stock options	2	6
NET CASH PROVIDED BY FINANCING ACTIVITIES	2	6
Net increase in cash and cash equivalents	109	167
Cash and cash equivalents - beginning of the period	820	625
Cash and cash equivalents - end of the period	$ 929	$ 792

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	May. 31, 2015
Organization and Summary of Significant Accounting Policies [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. ORGANIZATION AND 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 unaudited condensed financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited condensed financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. The results of operations for the three months ended May 31, 2015 are not necessarily indicative of the results to be expected for the year ending February 29, 2016. The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended February 28, 2015. 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 include treasury bills with maturities of one year or less, 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 total face value of treasury bills and certificates of deposit. Total Face Value as of 5/31/15 (in thousands) Treasury bills $ 999 Certificates of deposit 6,225 $ 7,224 As of May 31, 2015, contractual maturities of the Company's available-for-sale non-equity investments were as follows: Face value Fair Value (In thousands) (In thousands) Maturing within one year $ 6,225 $ 6,215 Maturing within two years 999 997 $ 7,224 $ 7,212 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 brokered Treasury bills and 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 May 31, 2015 and February 28, 2015. 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 Revenue Recognition Revenue is recognized in accordance with SEC Staff Accounting Bulletin No. 104, Revenue Recognition Financial Statement Estimates The preparation of condensed 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, valuation allowance, and allowance for inventory obsolescence. Recent Accounting Pronouncements No recent accounting pronouncements affecting the Company were issued by the Financial Accounting Standards Board or other standards-setting bodies.

Environmental Regulation

Environmental Regulation	3 Months Ended
	May. 31, 2015
Environmental Regulation [Abstract]
ENVIRONMENTAL REGULATION	2. ENVIRONMENTAL REGULATION While the Company believes that it has the environmental permits necessary to conduct its business and that its operations conform to present environmental regulations, increased public attention has been focused on the environmental impact of semiconductor manufacturing operations. The Company, in the conduct of its manufacturing operations, has handled and does handle materials that are considered hazardous, toxic or volatile under federal, state and local laws and, therefore, is subject to regulations related to their use, storage, discharge and disposal. No assurance can be made that the risk of accidental release of such materials can be completely eliminated. In the event of a violation of environmental laws, the Company could be held liable for damages and the costs of remediation. In addition, the Company, along with the rest of the semiconductor industry, is subject to variable interpretations and governmental priorities concerning environmental laws and regulations. Environmental statutes have been interpreted to provide for joint and several liability and strict liability regardless of actual fault. There can be no assurance that the Company and its subsidiaries will not be required to incur costs to comply with, or that the operations, business or financial condition of the Company will not be materially adversely affected by current or future environmental laws or regulations.

Earnings Per Share

Earnings Per Share	3 Months Ended
	May. 31, 2015
Earnings Per Share [Abstract]
EARNINGS PER SHARE	3. EARNINGS PER SHARE The shares used in the computation of the Company’s basic and diluted earnings per common share were as follows: For the three months 2015 2014 Weighted average common shares outstanding 2,187,132 2,178,008 Dilutive effect of employee stock options 224,005 224,130 Weighted average common shares outstanding, assuming dilution 2,411,137 2,402,138 Weighted average common shares outstanding, assuming dilution, include the incremental shares that would be issued upon the assumed exercise of stock options.

Inventories

Inventories	3 Months Ended
	May. 31, 2015
Inventories [Abstract]
INVENTORIES	4. INVENTORIES As of May 31, 2015, inventories consist of the following: Gross Reserve Net Raw Materials $ 1,634,000 $ (407,000 ) $ 1,227,000 Work-In-Process 4,055,000 (1,635,000 ) 2,420,000 Finished Goods 927,000 (726,000 ) 201,000 Totals $ 6,616,000 $ (2,768,000 ) $ 3,848,000 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

Income Taxes

Income Taxes	3 Months Ended
	May. 31, 2015
Income Taxes [Abstract]
INCOME TAXES	5. INCOME TAXES At May 31, 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 May 31, 2015 and February 28, 2015: Deferred Tax Asset (Liability): 5/31/15 2/28/15 Current Allowance for doubtful accounts $ 1,000 $ 1,000 Inventory allowance 1,059,000 1,044,000 Section 263A capitalized costs 85,000 85,000 Total current deferred tax assets 1,145,000 1,130,000 Valuation allowance (1,145,000 ) (1,130,000 ) $ 0 $ 0 Long-term Loss carryforwards $ 3,959,000 $ 3,959,000 Depreciation (43,000 ) (31,000 ) Total long-term deferred tax assets 3,916,000 3,928,000 Valuation allowance (3,916,000 ) (3,928,000 ) $ 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 period ended May 31, 2015 and the year ended February 28, 2015. A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate for the quarter ended May 31, 2015 and for the year ended February 28, 2015 is as follows: 5/31/15 2/28/15 U.S. federal statutory rate 34.0 % 34.0 % Change in valuation allowance (34.0 ) (34.0 ) Alternative minimum taxes 2.0 2.0 Effective income tax rate 2.0 % 2.0 %

Other Income

Other Income	3 Months Ended
	May. 31, 2015
Other Income [Abstract]
OTHER INCOME	6. OTHER INCOME The Company did not earn other income for the quarter ended May 31, 2015 as compared to $8,000 of other income for the quarter ended May 31, 2014. The $8,000 of other income reflected in the unaudited condensed statements of income for the quarter ended May 31, 2014 consists of income from relief of obligation related to the Company’s 1992 bankruptcy proceedings.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	May. 31, 2015
Accrued Expenses and Other Liabilities [Abstract]
ACCRUED EXPENSES AND OTHER LIABILITIES	7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of May 31, 2015 and February 28, 2015, accrued expenses and other liabilities consisted of the following: 5/31/15 2/28/15 Payroll and related employee benefits $ 661,000 $ 575,000 Dividends 547,000 0 Income taxes 17,000 15,000 Property taxes 18,000 7,000 Other liabilities 101,000 35,000 $ 1,344,000 $ 632,000

Export Sales and Major Customer

Export Sales and Major Customers	3 Months Ended
	May. 31, 2015
Export Sales and Major Customers [Abstract]
EXPORT SALES AND MAJOR CUSTOMERS	8. EXPORT SALES AND MAJOR CUSTOMERS Revenues from domestic and export sales to unaffiliated customers for the three months ended May 31, 2015 are as follows: Power Field Effect Power Geographic Region Transistors Hybrids Transistors MOSFETS Totals Europe and Australia $ 0 $ 0 $ 6,000 $ 0 $ 6,000 Canada and Latin America 9,000 0 0 0 9,000 Far East and Middle East 0 0 14,000 86,000 100,000 United States 464,000 1,149,000 79,000 576,000 2,268,000 Totals $ 473,000 $ 1,149,000 $ 99,000 $ 662,000 $ 2,383,000 Revenues from domestic and export sales to unaffiliated customers for the three months ended May 31, 2014 are as follows: Power Field Effect Power Geographic Region Transistors Hybrids Transistors MOSFETS Totals Europe and Australia $ 0 $ 329,000 $ 4,000 $ 0 $ 333,000 Canada and Latin America 23,000 0 0 0 23,000 Far East and Middle East 0 0 74,000 0 74,000 United States 406,000 944,000 39,000 486,000 1,875,000 Totals $ 429,000 $ 1,273,000 $ 117,000 $ 486,000 $ 2,305,000 Revenues from domestic and export sales are attributed to global geographic region according to the location of the customer’s primary manufacturing or operating facilities. For the quarter ended May 31, 2015, sales to the Company’s top two customers consisted of the following: Customer % of Sales Raytheon Company 58 % United States Government 18 % 76 % For the quarter ended May 31, 2014, sales to the Company’s top two customers consisted of the following: Customer % of Sales Raytheon Company 30 % United States Government 25 % 55 %

Major Suppliers

Major Suppliers	3 Months Ended
	May. 31, 2015
Major Suppliers [Abstract]
MAJOR SUPPLIERS	9. MAJOR SUPPLIERS For the quarter ended May 31, 2015, purchases from the Company’s top two vendors consisted of the following: Vendor % of Purchases Egide, USA 24 % Stellar Industries 17 % 41 % For the quarter ended May 31, 2014, purchases from the Company’s top two vendors consisted of the following: Vendor % of Purchases Egide, USA 27 % Wuxi Streamtek Ltd 13 % 40 %

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	May. 31, 2015
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES Future minimum lease payments for the Company’s manufacturing facility 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 Thereafter 892,000 $ 3,095,000

Dividend

Dividend	3 Months Ended
	May. 31, 2015
Dividend [Abstract]
DIVIDEND	11. 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. On May 31, 2015, there were 2,187,132 shares of common stock outstanding; as a result the Company recorded a $547,000 liability for dividends payable, which is reflected on the May 31, 2015 balance sheet.

Stock Repurchase Program

Stock Repurchase Program	3 Months Ended
	May. 31, 2015
Stock Repurchase Program [Abstract]
STOCK REPURCHASE PROGRAM	12. STOCK REPURCHASE PROGRAM On May 29, 2015, the Board of Directors of the Company authorized a stock 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 on the open market or in privately negotiated transactions depending on market conditions, stock price, corporate and regulatory requirements and other factors.

Organization and Summary of S18

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	May. 31, 2015
Organization and 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 unaudited condensed financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited condensed financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. The results of operations for the three months ended May 31, 2015 are not necessarily indicative of the results to be expected for the year ending February 29, 2016. The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended February 28, 2015.
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 and certificates of deposit include treasury bills with maturities of one year or less, 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 total face value of treasury bills and certificates of deposit. Total Face Value as of 5/31/15 (in thousands) Treasury bills $ 999 Certificates of deposit 6,225 $ 7,224 As of May 31, 2015, contractual maturities of the Company's available-for-sale non-equity investments were as follows: Face value Fair Value (In thousands) (In thousands) Maturing within one year $ 6,225 $ 6,215 Maturing within two years 999 997 $ 7,224 $ 7,212
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 brokered Treasury bills and 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 May 31, 2015 and February 28, 2015.
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
Revenue Recognition	Revenue Recognition Revenue is recognized in accordance with SEC Staff Accounting Bulletin No. 104, Revenue Recognition
Financial Statement Estimates	Financial Statement Estimates The preparation of condensed 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, valuation allowance, and allowance for inventory obsolescence.
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.

Organization and Summary of S19

Organization and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	May. 31, 2015
Organization and Summary of Significant Accounting Policies [Abstract]
Summary of available-for-sale investments	Total Face Value as of 5/31/15 (in thousands) Treasury bills $ 999 Certificates of deposit 6,225 $ 7,224
Contractual maturities of available-for-sale non-equity investments	Face value Fair Value (In thousands) (In thousands) Maturing within one year $ 6,225 $ 6,215 Maturing within two years 999 997 $ 7,224 $ 7,212

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	May. 31, 2015
Earnings Per Share [Abstract]
Summary of basic and diluted earnings per common share	For the three months 2015 2014 Weighted average common shares outstanding 2,187,132 2,178,008 Dilutive effect of employee stock options 224,005 224,130 Weighted average common shares outstanding, assuming dilution 2,411,137 2,402,138

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	May. 31, 2015
Inventories [Abstract]
Schedule of inventories	Gross Reserve Net Raw Materials $ 1,634,000 $ (407,000 ) $ 1,227,000 Work-In-Process 4,055,000 (1,635,000 ) 2,420,000 Finished Goods 927,000 (726,000 ) 201,000 Totals $ 6,616,000 $ (2,768,000 ) $ 3,848,000 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

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	May. 31, 2015
Income Taxes [Abstract]
Summary of deferred tax asset (Liability)	Deferred Tax Asset (Liability): 5/31/15 2/28/15 Current Allowance for doubtful accounts $ 1,000 $ 1,000 Inventory allowance 1,059,000 1,044,000 Section 263A capitalized costs 85,000 85,000 Total current deferred tax assets 1,145,000 1,130,000 Valuation allowance (1,145,000 ) (1,130,000 ) $ 0 $ 0 Long-term Loss carryforwards $ 3,959,000 $ 3,959,000 Depreciation (43,000 ) (31,000 ) Total long-term deferred tax assets 3,916,000 3,928,000 Valuation allowance (3,916,000 ) (3,928,000 ) $ 0 $ 0
Reconciliation of the U.S.federal statutory tax rate to the company's effective tax rate	5/31/15 2/28/15 U.S. federal statutory rate 34.0 % 34.0 % Change in valuation allowance (34.0 ) (34.0 ) Alternative minimum taxes 2.0 2.0 Effective income tax rate 2.0 % 2.0 %

Accrued Expenses and Other Cu23

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	May. 31, 2015
Accrued Expenses and Other Liabilities [Abstract]
Summary of accrued expenses and other liabilities	5/31/15 2/28/15 Payroll and related employee benefits $ 661,000 $ 575,000 Dividends 547,000 0 Income taxes 17,000 15,000 Property taxes 18,000 7,000 Other liabilities 101,000 35,000 $ 1,344,000 $ 632,000

Export Sales and Major Custom24

Export Sales and Major Customers (Tables)	3 Months Ended
	May. 31, 2015
Export Sales and Major Customers [Abstract]
Summary of Revenues from domestic and export sales to unaffiliated customers	Power Field Effect Power Geographic Region Transistors Hybrids Transistors MOSFETS Totals Europe and Australia $ 0 $ 0 $ 6,000 $ 0 $ 6,000 Canada and Latin America 9,000 0 0 0 9,000 Far East and Middle East 0 0 14,000 86,000 100,000 United States 464,000 1,149,000 79,000 576,000 2,268,000 Totals $ 473,000 $ 1,149,000 $ 99,000 $ 662,000 $ 2,383,000 Power Field Effect Power Geographic Region Transistors Hybrids Transistors MOSFETS Totals Europe and Australia $ 0 $ 329,000 $ 4,000 $ 0 $ 333,000 Canada and Latin America 23,000 0 0 0 23,000 Far East and Middle East 0 0 74,000 0 74,000 United States 406,000 944,000 39,000 486,000 1,875,000 Totals $ 429,000 $ 1,273,000 $ 117,000 $ 486,000 $ 2,305,000
Summary of percentage of sales from major customer	Customer % of Sales Raytheon Company 58 % United States Government 18 % 76 % Customer % of Sales Raytheon Company 30 % United States Government 25 % 55 %

Major Suppliers (Tables)

Major Suppliers (Tables)	3 Months Ended
	May. 31, 2015
Major Suppliers [Abstract]
Summary of percentage of purchase from major vendors	Vendor % of Purchases Egide, USA 24 % Stellar Industries 17 % 41 % Vendor % of Purchases Egide, USA 27 % Wuxi Streamtek Ltd 13 % 40 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	May. 31, 2015
Commitments and Contingencies [Abstract]
Summary of future minimum lease payments for the Company's manufacturing facility	Fiscal Year Ending February 28/29 Amount 2016 415,000 2017 427,000 2018 440,000 2019 454,000 2020 467,000 Thereafter 892,000 $ 3,095,000

Organization and Summary of S27

Organization and Summary of Significant Accounting Policies (Details) $ in Thousands	May. 31, 2015USD ($)
Short-term investments:
Face Value	$ 7,224
Treasury bills [Member]
Short-term investments:
Face Value	999
Certificates of Deposit [Member]
Short-term investments:
Face Value	$ 6,225

Organization and Summary of S28

Organization and Summary of Significant Accounting Policies (Details 1) $ in Thousands	May. 31, 2015USD ($)
Schedule of contractual maturities of the Company's available-for-sale non-equity investments
Maturing within one year, face value	$ 6,225
Maturing within two years, face value	999
Total, face value	7,224
Maturing within one year, fair value	6,215
Maturing within two years, fair value	997
Total, fair value	$ 7,212

Organization and Summary of S29

Organization and Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	May. 31, 2015	Feb. 28, 2015
Summary of Significant Accounting Policies (Textual)
Description of inventory valuation policy for 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.
Accounts receivable allowance amount	$ 2	$ 2
Certificates of Deposit [Member]
Summary of Significant Accounting Policies (Textual)
Maturity term	One year or less

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended
	May. 31, 2015	May. 31, 2014
Summary of basic and diluted earnings per common share
Weighted average common shares outstanding	2,187,132	2,178,008
Dilutive effect of employee stock options	224,005	224,130
Weighted average common shares outstanding, assuming dilution	2,411,137	2,402,138

Inventories (Details)

Inventories (Details) - USD ($)	May. 31, 2015	Feb. 28, 2015
Schedule of Inventories
Inventory, Raw Materials, Gross	$ 1,634,000	$ 2,124,000
Inventory, Work-In-Process, Gross	4,055,000	3,744,000
Inventory, Finished Goods, Gross	927,000	1,077,000
Inventory, Gross, Total	6,616,000	6,945,000
Inventory Raw Material Reserve	(407,000)	(404,000)
Inventory Work-In-Process Reserve	(1,635,000)	(1,624,000)
Inventory Finished Goods Reserve	(726,000)	(720,000)
Inventories, Reserve, Total	(2,768,000)	(2,748,000)
Inventory, Raw material, Net	1,227,000	1,720,000
Inventory, Work in Process, Net	2,420,000	2,120,000
Inventory, Finished Goods, Net	201,000	357,000
Inventories, Net, Total	$ 3,848,000	$ 4,197,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	May. 31, 2015	Feb. 28, 2015
Current
Allowance for doubtful accounts	$ 1,000	$ 1,000
Inventory allowance	1,059,000	1,044,000
Section 263A capitalized costs	85,000	85,000
Total current deferred tax assets	1,145,000	1,130,000
Valuation allowance	(1,145,000)	(1,130,000)
Total net deferred taxes	0	0
Long-term
Loss carryforwards	3,959,000	3,959,000
Depreciation	(43,000)	(31,000)
Total long-term deferred tax assets	3,916,000	3,928,000
Valuation allowance	(3,916,000)	(3,928,000)
Total net deferred tax assets	$ 0	$ 0

Income Taxes (Details 1)

Income Taxes (Details 1)	3 Months Ended	12 Months Ended
	May. 31, 2015	Feb. 28, 2015
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%	2.00%
Effective income tax rate	2.00%	2.00%

Income Taxes (Details Textual)

Income Taxes (Details Textual) - May. 31, 2015 - USD ($)	Total
Income Taxes (Textual)
Operating loss carryforwards, net	$ 11,701,000
Operating loss carryforwards, Expiration date	Feb. 28, 2029
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 loss carryforwards.
Cumulative change in ownership percentage	50.00%
Period for cumulative change in ownership	3 years

Other Income (Details)

Other Income (Details) - USD ($) $ in Thousands	3 Months Ended
	May. 31, 2015	May. 31, 2014
Other Income (Textual)
Other income		$ 8

Accrued Expenses and Other Cu36

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	May. 31, 2015	Feb. 28, 2015
Summary of accrued expenses and other liabilities
Payroll and related employee benefits	$ 661,000	$ 575,000
Dividends	547,000	0
Income taxes	17,000	15,000
Property taxes	18,000	7,000
Other liabilities	101,000	35,000
Accrued expenses, Total	$ 1,344,000	$ 632,000

Export Sales and Major Custom37

Export Sales and Major Customers (Details) - USD ($)	3 Months Ended
	May. 31, 2015	May. 31, 2014
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	$ 2,383,000	$ 2,305,000
Power Transistors [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	473,000	429,000
Hybrids [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	1,149,000	1,273,000
Field Effect Transistors [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	99,000	117,000
Power MOSFETS [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	662,000	486,000
Europe and Australia [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	6,000	333,000
Europe and Australia [Member] | Power Transistors [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	0	0
Europe and Australia [Member] | Hybrids [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	0	329,000
Europe and Australia [Member] | Field Effect Transistors [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	6,000	4,000
Europe and Australia [Member] | Power MOSFETS [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	0	0
Canada and Latin America [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	9,000	23,000
Canada and Latin America [Member] | Power Transistors [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	9,000	23,000
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	0	0
Canada and Latin America [Member] | Power MOSFETS [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	0	0
Far East and Middle East [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	100,000	74,000
Far East and Middle East [Member] | Power Transistors [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	0	0
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	14,000	74,000
Far East and Middle East [Member] | Power MOSFETS [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	86,000	0
United States [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	2,268,000	1,875,000
United States [Member] | Power Transistors [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	464,000	406,000
United States [Member] | Hybrids [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	1,149,000	944,000
United States [Member] | Field Effect Transistors [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	79,000	39,000
United States [Member] | Power MOSFETS [Member]
Revenues from domestic and export sales to unaffiliated customers
Revenues, Total	$ 576,000	$ 486,000

Export Sales and Major Custom38

Export Sales and Major Customers (Details 1) - Sales [Member]	3 Months Ended
	May. 31, 2015	May. 31, 2014
Summary of percentage sales to major customer
Percentage of purchases from major vendors	76.00%	55.00%
Raytheon Company [Member]
Summary of percentage sales to major customer
Percentage of purchases from major vendors	58.00%	30.00%
United States Government [Member]
Summary of percentage sales to major customer
Percentage of purchases from major vendors	18.00%	25.00%

Export Sales and Major Custom39

Export Sales and Major Customers (Details Textual) - Customers	3 Months Ended
	May. 31, 2015	May. 31, 2014
Export Sales and Major Customers (Textual)
Number of major customers	2	2

Major Suppliers (Details)

Major Suppliers (Details) - Supplier Concentration Risk [Member]	3 Months Ended
	May. 31, 2015	May. 31, 2014
Summary of percentage of purchase from major vendors (Textual)
Percentage of purchases from major vendors	41.00%	40.00%
Egide, USA [Member]
Summary of percentage of purchase from major vendors (Textual)
Percentage of purchases from major vendors	24.00%	27.00%
Stellar Industries [Member]
Summary of percentage of purchase from major vendors (Textual)
Percentage of purchases from major vendors	17.00%
Wuxi Streamtek Ltd [Member]
Summary of percentage of purchase from major vendors (Textual)
Percentage of purchases from major vendors		13.00%

Major Suppliers (Details Textua

Major Suppliers (Details Textual) - Vendors	3 Months Ended
	May. 31, 2015	May. 31, 2014
Major Suppliers (Textual)
Number of major vendors	2	2

Commitments and Contingencies42

Commitments and Contingencies (Details)	May. 31, 2015USD ($)
Summary of future minimum lease payments for the Company's manufacturing facility
2,016	$ 415,000
2,017	427,000
2,018	440,000
2,019	454,000
2,020	467,000
Thereafter	892,000
Total	$ 3,095,000

Dividend (Details)

Dividend (Details) - USD ($)	1 Months Ended
	May. 29, 2015	May. 31, 2015	Feb. 28, 2015
Dividend [Abstract]
Cash dividends per share (in dollars per share)	$ 0.25
Common stock, shares outstanding		2,187,132	2,185,832
Dividends payable		$ 547,000	$ 0

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - May. 29, 2015 - USD ($)	Total
Stock Repurchase Program (Textual)
Stock repurchase program, authorized amount	$ 500,000
Stock repurchase program, expiration date	Feb. 29, 2016