Cover Page
Cover Page | 6 Months Ended |
Aug. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Aug. 31, 2020 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | VIDEO DISPLAY CORP |
Trading Symbol | VIDE |
Entity Central Index Key | 0000758743 |
Current Fiscal Year End Date | --02-28 |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | true |
Entity Common Stock, Shares Outstanding | 5,878,290 |
Entity Interactive Data Current | Yes |
Title of 12(b) Security | Common Stock |
Security Exchange Name | NONE |
Entity Address, Country | GE |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2020 | Feb. 29, 2020 |
Current assets | ||
Cash and cash equivalents | $ 414 | $ 844 |
Trading investments, at fair value | 15 | |
Accounts receivable, less allowance for doubtful accounts of $6 and $9 | 1,449 | 1,305 |
Inventories, net | 4,373 | 4,480 |
Contract assets | 206 | |
Prepaid expenses and other current assets | 189 | 411 |
Total current assets | 6,723 | 7,229 |
Property, plant, and equipment | ||
Land | 154 | 154 |
Buildings | 2,766 | 2,756 |
Construction in progress | 110 | 106 |
Machinery and equipment | 4,878 | 4,861 |
Total property, plant and equipment | 7,908 | 7,877 |
Accumulated depreciation | (6,724) | (6,607) |
Net property, plant, and equipment | 1,184 | 1,270 |
Right of use assets under operating leases | 1,383 | 1,631 |
Intangible assets, net | 312 | 387 |
Other noncurrent assets | 2 | 2 |
Total assets | 9,604 | 10,519 |
Current liabilities | ||
Accounts payable | 1,415 | 1,256 |
Accrued liabilities | 647 | 499 |
Customer deposits | 1,325 | 2,338 |
Notes payable to officers and directors (Note 8) | 100 | 100 |
PPP related loans, current | 550 | |
Current operating lease liabilities | 557 | 557 |
Total current liabilities | 5,863 | 5,966 |
PPP related loans, noncurrent | 438 | |
Long-term operating lease liabilities | 849 | 1,091 |
Total liabilities | 7,150 | 7,057 |
Shareholders' Equity | ||
Preferred stock, no par value – 10,000 shares authorized; none issued and outstanding | ||
Common stock, no par value – 50,000 shares authorized; 9,732 issued and 5,878 outstanding at August 31, 2020, and at February 29, 2020 | 7,293 | 7,293 |
Additional paid-in capital | 281 | 281 |
Retained earnings | 11,162 | 12,170 |
Treasury stock, shares at cost; 3,854 at August 31, 2020 and February 29, 2020 | (16,282) | (16,282) |
Total shareholders' equity | 2,454 | 3,462 |
Total liabilities and shareholders' equity | 9,604 | 10,519 |
Officers and Directors | ||
Current assets | ||
Notes receivable due from officers and directors (Note 8) | 77 | 189 |
Current liabilities | ||
Notes payable to officers and directors (Note 8) | $ 1,269 | $ 1,216 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2020 | Feb. 29, 2020 |
Accounts receivable, allowance for doubtful accounts | $ 6 | $ 9 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 9,732,000 | 9,732,000 |
Common stock, shares outstanding | 5,878,000 | 5,878,000 |
Treasury stock, shares | 3,854,000 | 3,854,000 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Net sales | $ 2,292 | $ 3,228 | $ 5,997 | $ 5,937 |
Cost of goods sold | 2,107 | 2,730 | 4,834 | 5,014 |
Gross profit | 185 | 498 | 1,163 | 923 |
Operating expenses | ||||
Selling and delivery | 290 | 147 | 496 | 312 |
General and administrative | 976 | 893 | 1,973 | 1,762 |
Operating Expenses, Total | 1,266 | 1,040 | 2,469 | 2,074 |
Operating loss | (1,081) | (542) | (1,306) | (1,151) |
Other income (expense) | ||||
Interest income (expense), net | (16) | (1) | (31) | (1) |
Investment gains (losses), net | 4 | (1) | (6) | 1 |
Other, net | 92 | 109 | 335 | 390 |
Total other income, net | 80 | 107 | 298 | 390 |
Loss before income taxes | (1,001) | (435) | (1,008) | (761) |
Income tax expense | ||||
Net loss | $ (1,001) | $ (435) | $ (1,008) | $ (761) |
Net loss per share basic | $ (0.17) | $ (0.07) | $ (0.17) | $ (0.13) |
Net loss per share diluted | $ (0.17) | $ (0.07) | $ (0.17) | $ (0.13) |
Basic weighted average shares outstanding | 5,878 | 5,878 | 5,878 | 5,878 |
Diluted weighted average shares outstanding | 5,878 | 5,878 | 5,878 | 5,878 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Treasury Stock | |
Balance (in shares) at Feb. 28, 2019 | [1] | 5,878 | ||||
Balance at Feb. 28, 2019 | $ 4,661 | $ 7,293 | $ 274 | $ 13,376 | $ (16,282) | |
Net loss | (761) | (761) | ||||
Share based compensation | 3 | 3 | ||||
Balance (in shares) at Aug. 31, 2019 | 5,878 | |||||
Balance at Aug. 31, 2019 | 3,903 | $ 7,293 | 277 | 12,615 | (16,282) | |
Balance (in shares) at May. 31, 2019 | [1] | 5,878 | ||||
Balance at May. 31, 2019 | 4,337 | $ 7,293 | 276 | 13,050 | (16,282) | |
Net loss | (435) | (435) | ||||
Share based compensation | 1 | 1 | ||||
Balance (in shares) at Aug. 31, 2019 | 5,878 | |||||
Balance at Aug. 31, 2019 | 3,903 | $ 7,293 | 277 | 12,615 | (16,282) | |
Balance (in shares) at Feb. 29, 2020 | [1] | 5,878 | ||||
Balance at Feb. 29, 2020 | 3,462 | $ 7,293 | 281 | 12,170 | (16,282) | |
Net loss | (1,008) | (1,008) | ||||
Balance (in shares) at Aug. 31, 2020 | 5,878 | |||||
Balance at Aug. 31, 2020 | 2,454 | $ 7,293 | 281 | 11,162 | (16,282) | |
Balance (in shares) at May. 31, 2020 | [1] | 5,878 | ||||
Balance at May. 31, 2020 | 3,455 | $ 7,293 | 281 | 12,163 | (16,282) | |
Net loss | (1,001) | (1,001) | ||||
Balance (in shares) at Aug. 31, 2020 | 5,878 | |||||
Balance at Aug. 31, 2020 | $ 2,454 | $ 7,293 | $ 281 | $ 11,162 | $ (16,282) | |
[1] | Common shares are shown net of Treasury Shares |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Operating Activities | ||
Net loss | $ (1,008) | $ (761) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation expense | 117 | 112 |
Amortization of intangible assets | 75 | |
Provision for doubtful accounts | (3) | (11) |
Provision for inventory reserve | 30 | 25 |
Non-cash charge for share based compensation | 3 | |
Realized/unrealized loss (gain) on investments | 6 | (1) |
Other | 11 | (3) |
Changes in working capital items: | ||
Accounts receivable | (141) | 1,091 |
Inventories | 77 | 187 |
Prepaid expenses and other assets | 222 | 381 |
Contract assets | (206) | |
Customer deposits | (1,013) | (759) |
Accounts payable and accrued liabilities | 307 | 190 |
Unbilled revenue | (31) | |
Net cash (used in) provided by operating activities | (1,526) | 423 |
Investing Activities | ||
Capital expenditures | (31) | (134) |
Purchases of investments | (47) | (17) |
Proceeds from sale of investments | 24 | |
Net cash used in investing activities | (54) | (151) |
Financing Activities | ||
Repayments of notes payable to officers and directors | (35) | |
Proceeds from loans with officers and directors | 200 | |
Repayments of long-term debt | (123) | |
Proceeds from PPP related loans | 988 | |
Marginal float net changes | (3) | |
Net cash provided by (used in) financing activities | 1,150 | (123) |
Net change in cash and cash equivalents | (430) | 149 |
Cash and cash equivalents, beginning of year | 844 | 410 |
Cash and cash equivalents, end of period | $ 414 | $ 559 |
Basis of Presentation of Princi
Basis of Presentation of Principles of Consolidation | 6 Months Ended |
Aug. 31, 2020 | |
Basis of Presentation of Principles of Consolidation | Note 1. – Basis of Presentation of Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of Video Display Corporation, Inc. and its subsidiaries (“Video Display,” the “Company,” “we,” or “us”). All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated balance sheet as of February 29, 2020 has been derived from audited financial statements. The accompanying unaudited condensed consolidated financial statements as of August 31, 2020, and for the three and six months ended, August 31, 2020 and 2019 have been prepared in accordance with (i) accounting principles generally accepted in the U.S. for interim financial information and (ii) the instructions to Form 10-Q 10-01 S-X 10-K |
Banking & Liquidity
Banking & Liquidity | 6 Months Ended |
Aug. 31, 2020 | |
Banking & Liquidity | Note 2. – Banking & Liquidity The accompanying unaudited interim condensed consolidated financial statements were prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company reported a net loss for the period ending August 31, 2020 and had a decrease in working capital and liquid assets for the six month period primarily as a result of $1.0 million loss in the second quarter. The Company has sustained losses for the last four of five fiscal years and has seen overall a decline in working capital and liquid assets during this five year period. Annual losses over this time are due to a combination of decreasing revenues across certain divisions without a commensurate reduction of expenses. The Company has seen a rise in the backlog for customer orders and increased activity within the markets it serves. The Company’s working capital and liquid asset position are presented below (in thousands) as of August 31, 2020 and February 29, 2020: August 31, 2020 February 29, Working capital $ 860 $ 1,263 Liquid assets $ 429 $ 844 Management has implemented a plan to improve the liquidity of the Company. The Company has been implementing a plan to increase revenues at all the divisions, each structured to the particular division. The fiscal year ended February 29, 2020 was a transition year for the Company. Many of the legacy programs the Company serviced were heading into new phases or the next generation of the product line. This caused delays in the normal flow of the orders for these programs. The Company is working with these customers and expects these programs to be placing orders to be fulfilled in this fiscal year. Also, the Company completed the transfer of its remaining CRT operations to its Lexel Imaging facility in Lexington, KY in fiscal 2021 which will reduce expenses in the CRT operation by having that business all under one roof. The Company also moved the corporate accounting functions to the Cocoa, Florida location in fiscal 2020 which allows the Company to become more efficient and save money on reducing redundant operations. Management continues to explore options to increase the liquidity of the Company. If additional and more permanent capital is required to fund the operations of the Company, no assurance can be given that the Company will be able to obtain the capital on terms favorable to the Company, if at all. The ability of the Company to continue as a going concern is dependent upon the success of management’s plans to improve revenues, the operational effectiveness of continuing operations, the procurement of suitable financing, or a combination of these. The uncertainty regarding the potential success of management’s plan create substantial doubt about the ability of the Company to continue as a going concern. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 6 Months Ended |
Aug. 31, 2020 | |
Fair Value Measurements and Financial Instruments | Note 3. – Fair Value Measurements and Financial Instruments The Financial Accounting Standards Board’s (FASB’s) fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets measured at fair value on a recurring basis by the Company consist of investment securities held for trading using Level inputs. August 31, 2020 Level 1 Assets Level 2 Assets Level 3 Assets Current trading investments: Stocks, options and ETF (long) $ 15 $ 15 Total value of investments 15 15 — — Current liabilities: Margin balance — — Total value of liabilities — — Total $ 15 $ 15 — — The Company had zero balance on outstanding margin account borrowing as of August 31, 2020 and none as of February 29, 2020. The margin account borrowings are used to purchase marketable equity securities and are netted against the investments in the balance sheet to show net trading investments. The gross investments were $15.0 thousand leaving net investments of $15.0 thousand after no margin account borrowings at August 31, 2020. The margin interest rate is 1.50% at August 31, 2020. No investments were held at February 29, 2020. The Company’s financial instruments which are not measured at fair value on the condensed consolidated balance sheets include cash, accounts receivable, short-term liabilities, and debt. The estimated fair value of these financial instruments approximate cost due to the short period of time to maturity. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Aug. 31, 2020 | |
Recent Accounting Pronouncements | Note 4. – Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted Effective March 1, 2020 we adopted Accounting Standards Update (“ASU”) No. 2018-13, 2018-13, Fair 820-10): 2018-13”), 2018-13 Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income 2019-12”), 2019-12 In June 2016, the FASB issued ASU 2016-13, 2016-13 2016-13 |
Inventories
Inventories | 6 Months Ended |
Aug. 31, 2020 | |
Inventories | Note 5. – Inventories Inventories are stated at the lower of cost (first in, first out) or market and consisted of the following (in thousands): August 31, February 29, Raw materials $ 3,675 $ 3,497 Work-in-process 627 773 Finished goods 897 1,006 5,199 5,276 Reserves for obsolescence (826 ) (796 ) $ 4,373 $ 4,480 |
Paycheck Protection Promissory
Paycheck Protection Promissory ("PPP") Related Loans | 6 Months Ended |
Aug. 31, 2020 | |
Paycheck Protection Promissory Related Loans | Note 6. – Paycheck Protection Promissory (“PPP”) Related Loans On April 13, 2020 our Lexel Imaging subsidiary entered into a $216,200 Paycheck Protection Promissory Note (the “PPP Loan”) with the Central Bank and on April 23, 2020, Video Display Corporation entered into a $772,000 PPP Loan with the Renasant Bank. The PPP Loans were made under, and are subject to the terms and conditions of, the PPP which was established under the CARES Act and is administered by the U.S. Small Business Administration. The current terms of the loans are two years with maturity dates of April 13, 2022 and April 23, 2022 and they contain a fixed annual interest rate of 1.00%. Payments of principle and interest on the PPP Loans will be deferred for the first six months of the term of the PPP Loans until October 13, 2020 and October 23, 2020, respectively. Principle and interest are payable monthly and may be prepaid by the Company at any time prior to maturity with no prepayment penalties. Under the terms of the CARES Act, recipients can apply for and receive forgiveness for all, or a portion of the loans granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for certain permissible purposes as set forth in the PPP, including, but not limited to, payroll costs, mortgage interest, rent or utility costs (collectively, “Qualifying Expenses”), and on the maintenance of employee and compensation levels during a certain time period following the funding of the PPP Loans. The Company has been using the proceeds of the PPP Loans for Qualifying Expenses. However, no assurance is provided that the Company will be able to obtain forgiveness of the PPP Loans in whole or in part. As of August 31, 2020, $550 thousand of the total $988 thousand in PPP related loans is classified as a current liability on the condensed consolidated balances sheets. |
Leases
Leases | 6 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Lessee | Note 7. – Leases The Company leases its office space and manufacturing facilities under operating lease agreements. The base lease terms expire at various dates from 2022 to 2025. While each of the leases include renewal options, the Company has only included the base lease term in its calculation of lease assets and liabilities. The Company does not have any finance leases. Balance sheet information related to operating leases is as follows (in thousands): August 31, Assets Operating lease right-of-use $ 1,383 Liabilities Current portion of operating lease liabilities $ 557 Noncurrent portion of operating lease liabilities 849 Total operating lease liabilities $ 1,406 Operating lease costs are included in cost of goods sold in the Company’s condensed consolidated statements of operations and totaled approximately $147 thousand for the three months ended August 31, 2020 and $293 thousand for the six months ended August 31, 2020. The had Cash paid for amounts included in the measurement of operating lease liabilities was approximately $143 thousand and $286 thousand during the three months and six months ended August 31, 2020 and 2019. The Company did not modify any existing leases or execute any new leases during the six months ended August 31, 2020. Weighted average information associated with the measurement of the Company’s remaining operating lease obligations is as follows: August 31, 2020 Weighted average remaining lease term 2.5 years Weighted average discount rate 6% The following table summarizes the maturity of the Company’s operating lease liabilities as of August 31, 2020 (in thousands): FY2021 $ 295 FY2022 618 FY2023 263 FY2024 190 FY2025 185 Total operating lease payments 1,551 Less imputed interest (145 ) Total operating lease liabilities $ 1,406 Included above are leases for manufacturing and warehouse facilities leased from the Company’s chief executive officer and Ordway Properties, LLC (an entity in which the chief executive officer has an ownership interest in) under operating leases expiring at various dates through 2025. Lease costs under these leases totaled approximately $97 thousand for the three months and $194 thousand for the six months ended August 31, 2020 (which is included in the total lease costs of $293 thousand noted above). Lease costs were also $97 thousand for the three months and $194 thousand for the six months ended August 31, 2019. The Company subleases certain of its warehousing space and also leases a building that it owns in Pennsylvania. The sublease expires concurrently with the head lease in March 2022. The Pennsylvania building was sold in September 2020 as disclosed in Note 13. The chart below was modified due to this sale. Sublease income and lease income are included in Other income, net in the Company’s condensed consolidated statements of operations and totaled approximately $91 thousand $90 2019. Future remaining lease payments expected to be received as of August 31, 2020 are as follows (in thousands): FY2021 $ 91 FY2022 144 FY2023 12 Total $ 247 |
Notes Receivable and Payable to
Notes Receivable and Payable to Officers and Directors (Related Party Transactions) | 6 Months Ended |
Aug. 31, 2020 | |
Related Party Transactions [Abstract] | |
Notes Receivable and Payable to Officers and Directors (Related Party Transactions) | Note 8. – Notes Receivable and Payable to Officers and Directors (Related Party Transactions) On March 30, 2016, the Company entered into an assignment with recourse of the note receivable from Z-Axis (Z-Axis) Z-Axis Z-Axis Z-Axis, In January 2020, to assist the Company in funding the debt assumed resulting from the acquisition of Jaco Displays, LLC, the Company borrowed $505,180 from Ronald D. Ordway, CEO, comprised of cash proceeds received of $148,330 with the remaining $356,850 in debt assumed as the CEO personally funded certain liabilities resulting from the acquisition. The Company combined this amount borrowed with another $438,832 owed to Mr. Ordway in back rent along with $82,838 from previous borrowings, and signed a promissory note for the aggregate balance of $1,026,850 at a six percent interest rate due on or before July 24, 2020 with Mr. Ordway. The Company made a $35,000 payment to Mr. Ordway in March, 2020, and borrowed another $200,000 in August, 2020 leaving a balance of $1,191,850 at August 31, 2020. This note balance is therefore classified as a current liability on the consolidated balance sheet. As disclosed in Note 13, this note with Mr. Ordway was paid in full by the Company in September 2020. See Note 7 for a discussion of leases with related parties. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Aug. 31, 2020 | |
Supplemental Cash Flow Information | Note 9. – Supplemental Cash Flow Information Supplemental cash flow informa t Six Months Ended August 31, 2020 2019 Cash paid for interest $ 1 $ 1 Non-cash Note receivable paid directly to officer (Z- $ 112 $ 102 Note payable to officer (Z-Axis; $ 112 $ 102 Imputed interest expense $ 6 $ 16 Imputed interest income $ 6 $ 16 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Aug. 31, 2020 | |
Shareholders' Equity | Note 10. – Shareholders’ Equity Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing income or loss available to common shareholders by the weighted average number of common shares outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Diluted earnings (loss) per share is calculated in a manner consistent with that of basic earnings (loss) per share while giving effect to all potentially dilutive common shares that were outstanding during the period. The following table sets forth the computation of basic and diluted earnings (loss) per share for the three-month and six month periods ended August 31, 2020 and 2019 (in thousands, except per share data): Net Loss Weighted Loss Three months ended August 31, 2020 Basic $ (1,001 ) 5,878 $ (0.17 ) Effect of dilution: Options — — — Diluted $ (1,001 ) 5,878 $ (0.17 ) Three months ended August 31, 2019 Basic $ (435 ) 5,878 $ (0.07 ) Effect of dilution: Options — — — Diluted $ (435 ) 5,878 $ (0.07 ) Net Weighted Loss Six months ended August 31, 2020 Basic $ (1,008 ) 5,878 $ (0.17 ) Effect of dilution: Options — — — Diluted $ (1,008 ) 5,878 $ (0.17 ) Six months ended August 31, 2019 Basic $ (761 ) 5,878 $ (0.13 ) Effect of dilution: Options — — — Diluted $ (761 ) 5,878 $ (0.13 ) Stock options, debentures, and other liabilities convertible into 200,000 shares, of the Company’s common stock were anti-dilutive and, therefore, were excluded from the August 31, 2020 and 2019 diluted earnings (loss) per share calculations. Stock-Based Compensation Plans For the six-month The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model, which requires the Company to estimate the expected term of the stock option grants and expected future stock price volatility over the term. The term represents the expected period of time the Company believes the options will remain outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock, which represents the standard deviation of the differences in the weekly stock closing price, adjusted for dividends and stock splits. No options were granted for the six month period ending August 31, 2020 or for the six month period ended August 31, 2019. Stock Repurchase Program The Company has a stock repurchase program, pursuant to which it had been authorized to repurchase up to 2,632,500 shares of the Company’s common stock in the open market. On January 20, 2014, the Board of Directors of the Company approved a one-time For the six months ending August 31, 2020 and August 31, 2019, the Company did not purchase any shares of the Video Display Corporation stock. Under the Company’s stock repurchase program, an additional 490,186 shares remain authorized to be repurchased by the Company at August 31, 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 31, 2020 | |
Income Taxes | Note 11. – Income Taxes Due to the Company’s overall and historical net loss position, no income tax expense was reported for the six month period ending August 31, 2020 and August 31, 2019. Due to continued losses reported by the Company, a full valuation has |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Aug. 31, 2020 | |
Legal Proceedings | Note 12. – Legal Proceedings The Company is involved in various legal proceedings related to claims arising in the ordinary course of business. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Aug. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13. – Subsequent Events The Company sold its owned building in with of were as disclosed in Note 8 needs |
Banking & Liquidity (Tables)
Banking & Liquidity (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Working Capital and Liquid Asset Position | The Company’s working capital and liquid asset position are presented below (in thousands) as of August 31, 2020 and February 29, 2020: August 31, 2020 February 29, Working capital $ 860 $ 1,263 Liquid assets $ 429 $ 844 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of August 31, 2020 (in thousands): August 31, 2020 Level 1 Assets Level 2 Assets Level 3 Assets Current trading investments: Stocks, options and ETF (long) $ 15 $ 15 Total value of investments 15 15 — — Current liabilities: Margin balance — — Total value of liabilities — — Total $ 15 $ 15 — — |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Inventories | Inventories are stated at the lower of cost (first in, first out) or market and consisted of the following (in thousands): August 31, February 29, Raw materials $ 3,675 $ 3,497 Work-in-process 627 773 Finished goods 897 1,006 5,199 5,276 Reserves for obsolescence (826 ) (796 ) $ 4,373 $ 4,480 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information Related to Operating Leases | Balance sheet information related to operating leases is as follows (in thousands): August 31, Assets Operating lease right-of-use $ 1,383 Liabilities Current portion of operating lease liabilities $ 557 Noncurrent portion of operating lease liabilities 849 Total operating lease liabilities $ 1,406 |
Schedule Of Weighted Average Information Associated With The Measurement Of Operating Lease | Weighted average information associated with the measurement of the Company’s remaining operating lease obligations is as follows: August 31, 2020 Weighted average remaining lease term 2.5 years Weighted average discount rate 6% |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes the maturity of the Company’s operating lease liabilities as of August 31, 2020 (in thousands): FY2021 $ 295 FY2022 618 FY2023 263 FY2024 190 FY2025 185 Total operating lease payments 1,551 Less imputed interest (145 ) Total operating lease liabilities $ 1,406 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future remaining lease payments expected to be received as of August 31, 2020 are as follows (in thousands): FY2021 $ 91 FY2022 144 FY2023 12 Total $ 247 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Supplemental Cash Flow Information | Supplemental cash flow informa t Six Months Ended August 31, 2020 2019 Cash paid for interest $ 1 $ 1 Non-cash Note receivable paid directly to officer (Z- $ 112 $ 102 Note payable to officer (Z-Axis; $ 112 $ 102 Imputed interest expense $ 6 $ 16 Imputed interest income $ 6 $ 16 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Reconciliation of Shares Used in Calculation of Basic and Dilutive Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share for the three-month and six month periods ended August 31, 2020 and 2019 (in thousands, except per share data): Net Loss Weighted Loss Three months ended August 31, 2020 Basic $ (1,001 ) 5,878 $ (0.17 ) Effect of dilution: Options — — — Diluted $ (1,001 ) 5,878 $ (0.17 ) Three months ended August 31, 2019 Basic $ (435 ) 5,878 $ (0.07 ) Effect of dilution: Options — — — Diluted $ (435 ) 5,878 $ (0.07 ) Net Weighted Loss Six months ended August 31, 2020 Basic $ (1,008 ) 5,878 $ (0.17 ) Effect of dilution: Options — — — Diluted $ (1,008 ) 5,878 $ (0.17 ) Six months ended August 31, 2019 Basic $ (761 ) 5,878 $ (0.13 ) Effect of dilution: Options — — — Diluted $ (761 ) 5,878 $ (0.13 ) |
Working Capital and Liquid Asse
Working Capital and Liquid Asset Position (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Feb. 29, 2020 |
Liquidity And Capital Resources [Line Items] | ||
Working capital | $ 860 | $ 1,263 |
Liquid assets | $ 429 | $ 844 |
Banking & Liquidity - Additiona
Banking & Liquidity - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Line of Credit Facility [Line Items] | ||||
Net Loss | $ (1,001) | $ (435) | $ (1,008) | $ (761) |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured on a Recurring Basis (Detail) - Recurring Basis $ in Thousands | Aug. 31, 2020USD ($) |
Current trading investments: | |
Total value of investments | $ 15 |
Current Liabilities: | |
Margin balance | 0 |
Total value of liabilities | 0 |
Total | 15 |
Stocks, options and ETF (long) | |
Current trading investments: | |
Current trading investments | 15 |
Level 1 Assets and Liabilities | |
Current trading investments: | |
Total value of investments | 15 |
Current Liabilities: | |
Margin balance | 0 |
Total value of liabilities | 0 |
Total | 15 |
Level 1 Assets and Liabilities | Stocks, options and ETF (long) | |
Current trading investments: | |
Current trading investments | 15 |
Level 2 Assets and Liabilities | |
Current trading investments: | |
Total value of investments | 0 |
Current Liabilities: | |
Total | 0 |
Level 3 Assets and Liabilities | |
Current trading investments: | |
Total value of investments | 0 |
Current Liabilities: | |
Total | $ 0 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments - Additional Information (Detail) - Margin Account Borrowings [Member] - USD ($) | Aug. 31, 2020 | Feb. 29, 2020 |
Fair Value Measurements and Financial Instruments [Line Items] | ||
Short term margin account borrowings | $ 0 | $ 0 |
Gross Trading Investments,Current | 15,000 | |
Net trading investments current | $ 15,000 | |
Short Term margin acount borrowings rate of interest | 1.50% |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Feb. 29, 2020 |
Inventory [Line Items] | ||
Raw materials | $ 3,675 | $ 3,497 |
Work-in-process | 627 | 773 |
Finished goods | 897 | 1,006 |
Inventory, Gross | 5,199 | 5,276 |
Reserves for obsolescence | (826) | (796) |
Inventory, Net | $ 4,373 | $ 4,480 |
Paycheck Protection Promissor_2
Paycheck Protection Promissory ("PPP") Related Loans - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Aug. 31, 2020 | Apr. 23, 2020 | Apr. 13, 2020 | |
Debt Instrument Short Term And Long Term [Line Items] | |||
PPP related loans, current | $ 550,000 | ||
PPP related loan | $ 988,000 | ||
Loan Under Paycheck Protection Programme Cares Act [Member] | |||
Debt Instrument Short Term And Long Term [Line Items] | |||
Debt instrument term | 2 years | ||
Debt instrument stated rate of interest | 1.00% | ||
Debt Instrument Moratorium Period | 6 months | ||
Loan Under Paycheck Protection Programme Cares Act [Member] | Parent Company [Member] | Renasant Bank [Member] | |||
Debt Instrument Short Term And Long Term [Line Items] | |||
Debt instrument face value | $ 772,000 | ||
Debt instrument maturity date | Apr. 23, 2022 | ||
Debt Instrument Moratorium End Date | Oct. 23, 2020 | ||
Loan Under Paycheck Protection Programme Cares Act [Member] | Lexel Imaging Subsidary [Member] | Central Bank [Member] | |||
Debt Instrument Short Term And Long Term [Line Items] | |||
Debt instrument face value | $ 216,200 | ||
Debt instrument maturity date | Apr. 13, 2022 | ||
Debt Instrument Moratorium End Date | Oct. 13, 2020 |
Schedule of Balance Sheet Infor
Schedule of Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Feb. 29, 2020 |
Assets | ||
Operating lease right-of-use assets | $ 1,383 | $ 1,631 |
Liabilities | ||
Current portion of operating lease liabilities | 557 | 557 |
Noncurrent portion of operating lease liabilities | 849 | $ 1,091 |
Total operating lease liabilities | $ 1,406 |
Schedule Of Weighted Average In
Schedule Of Weighted Average Information Associated With The Measurement Of Operating Lease (Detail) | Aug. 31, 2020 |
Weighted average remaining lease term | 2 years 6 months |
Weighted average discount rate | 6.00% |
Lessee Operating Lease Liabilit
Lessee Operating Lease Liability Maturity (Detail) $ in Thousands | Aug. 31, 2020USD ($) |
FY2021 | $ 295 |
FY2022 | 618 |
FY2023 | 263 |
FY2024 | 190 |
FY2025 | 185 |
Total operating lease payments | 1,551 |
Less imputed interest | (145) |
Total operating lease liabilities | $ 1,406 |
Schedule Of Future Minimum Rent
Schedule Of Future Minimum Rental Payments For Operating Leases (Detail) $ in Thousands | Aug. 31, 2020USD ($) |
FY2021 | $ 91 |
FY2022 | 144 |
FY2023 | 12 |
Total | $ 247 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Operating Lease, Cost | $ 147 | $ 147 | $ 293 | $ 293 |
Operating Lease, Payments | 143 | 143 | 286 | 286 |
Operating Leases, Income Statement, Lease Revenue | 91 | 90 | $ 181 | 180 |
Month of expiry of sublease | 2022-03 | |||
Short-term Lease, Cost | $ 7 | |||
Pennyslavania [Member] | ||||
Month of expiry of lease | 2020-09 | |||
Companys Chief Executive Officer And Ordway Properties LLC [Member] | ||||
Operating Lease, Cost | $ 97 | $ 97 | $ 194 | $ 194 |
Notes Receivable and Payable _2
Notes Receivable and Payable to Officers and Directors (Related Party Transactions) - Additional Information (Detail) - USD ($) | Mar. 30, 2016 | Mar. 31, 2020 | Feb. 29, 2020 | Aug. 31, 2020 |
Related Party Transaction [Line Items] | ||||
Notes payable related parties current | $ 200,000 | |||
Z-Axis Inc | ||||
Related Party Transaction [Line Items] | ||||
Notes receivable assigned with recourse | $ 912,000 | $ 189,000 | 77,000 | |
Notes repurchase right, percentage of outstanding principle balance | 80.00% | |||
Secured borrowing | $ 900,000 | |||
Effective interest rate | 9.00% | |||
Payment period | 56 months | |||
Date of first required payment | Apr. 16, 2016 | |||
Notes payable related parties current | $ 189,000 | 77,000 | ||
Ronald D. Ordway | ||||
Related Party Transaction [Line Items] | ||||
Notes payable related parties current | $ 1,191,850 | |||
Interest Rate | % | 6.00% | |||
Debt maturity date | Jul. 24, 2020 | |||
Notes Payable, Related Parties | $ 1,026,850 | |||
Repayment of short term debt related party | $ 35,000 | |||
Ronald D. Ordway | Acquisition Fund [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from loan funds from related parties | 148,330 | |||
Amount owes to officers | 356,850 | |||
Amount owes to officers and directors | 505,180 | |||
Ronald D. Ordway | Rent Due [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount owes to officers and directors | 438,832 | |||
Ronald D. Ordway | Previous Borrowings [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount owes to officers and directors | $ 82,838 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Cash paid for: | ||
Cash paid for interest | $ 1 | $ 1 |
Non-cash activity: | ||
Note receivable paid directly to officer (Z-Axis; Note 8) | 112 | 102 |
Note payable to officer (Z-Axis; Note 8) | 112 | 102 |
Imputed interest expense | 6 | 16 |
Imputed interest income | $ 6 | $ 16 |
Reconciliation of Basic Earning
Reconciliation of Basic Earnings (Loss) Per Share to Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net Loss, Basic | $ (1,001) | $ (435) | $ (1,008) | $ (761) |
Net Loss, Options | 0 | 0 | 0 | 0 |
Net Loss, Diluted | $ (1,001) | $ (435) | $ (1,008) | $ (761) |
Weighted Average Common Shares Outstanding, Basic | 5,878 | 5,878 | 5,878 | 5,878 |
Weighted Average Common Shares Outstanding, Options | 0 | 0 | 0 | 0 |
Weighted Average Common Shares Outstanding, Diluted | 5,878 | 5,878 | 5,878 | 5,878 |
Loss Per Share, Basic | $ (0.17) | $ (0.07) | $ (0.17) | $ (0.13) |
Loss Per Share, Options | 0 | 0 | 0 | 0 |
Loss Per Share, Diluted | $ (0.17) | $ (0.07) | $ (0.17) | $ (0.13) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Jan. 20, 2014 | |
Stock Based Compensation [Line Items] | |||
Stock options granted | 0 | 0 | |
Authorized stock repurchase | 2,632,500 | ||
Additional authorized stock repurchase | 1,500,000 | ||
Repurchase of treasury stock (in shares) | 0 | 0 | |
Remaining repurchase of shares authorized | 490,186 | ||
Stock options convertible into shares excluded from diluted earnings per (loss) share calculation | 200,000 | 200,000 | |
General and Administrative | |||
Stock Based Compensation [Line Items] | |||
Share-based compensation | $ 0 | $ 3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Income Taxes [Line Items] | ||||
Income tax expense |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | Sep. 09, 2020USD ($) |
Subsequent Event [Member] | |
Proceeds From Sale Of Buildings | $ 2,028 |