Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Apr. 29, 2014 | Aug. 31, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'SONO TEK CORP | ' | ' |
Entity Central Index Key | '0000806172 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Feb-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--02-28 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $10,246,005 |
Entity Common Stock, Shares Outstanding | ' | 14,708,518 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Current Assets: | ' | ' |
Cash and cash equivalents | $3,232,021 | $1,940,906 |
Marketable Securities | 630,794 | 975,910 |
Accounts receivable (less allowance of $32,000 and $20,000, respectively) | 860,296 | 941,032 |
Inventories, net | 1,674,815 | 1,829,171 |
Prepaid expenses and other current assets | 160,373 | 79,605 |
Total current assets | 6,558,299 | 5,766,624 |
Land | 250,000 | 250,000 |
Buildings, net | 2,071,875 | 2,128,125 |
Equipment, furnishings and leasehold improvements, net | 637,138 | 689,151 |
Intangible assets, net | 171,828 | 142,523 |
Deferred tax asset | 90,021 | 90,021 |
TOTAL ASSETS | 9,779,161 | 9,066,444 |
Current Liabilities: | ' | ' |
Accounts payable | 556,194 | 408,738 |
Accrued expenses | 565,121 | 477,027 |
Customer deposits | 362,846 | 68,846 |
Current maturities of long term debt | 191,466 | 125,999 |
Income taxes payable | 129,398 | 6,331 |
Total current liabilities | 1,805,025 | 1,086,941 |
Long term debt, less current maturities | 1,479,058 | 1,987,236 |
Total liabilities | 3,284,083 | 3,074,177 |
Commitments and Contingencies | ' | ' |
Stockholders' Equity | ' | ' |
Common stock, $.01 par value; 25,000,000 shares authorized, 14,708,518 and 14,503,010 issued and outstanding, respectively | 147,085 | 145,030 |
Additional paid-in capital | 8,725,883 | 8,709,601 |
Accumulated deficit | -2,377,890 | -2,862,364 |
Total stockholders' equity | 6,495,078 | 5,992,267 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $9,779,161 | $9,066,444 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts receivable | $20,000 | $26,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 25,000,000 | 25,000,000 |
Common stock, issued shares | 14,708,518 | 14,503,010 |
Common stock, outstanding shares | 14,708,518 | 14,503,010 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Income Statement [Abstract] | ' | ' |
Net Sales | $10,278,938 | $9,542,354 |
Cost of Goods Sold | 5,545,471 | 5,010,093 |
Gross Profit | 4,733,467 | 4,532,261 |
Operating Expenses | ' | ' |
Research and product development | 885,101 | 894,481 |
Marketing and selling | 1,957,960 | 2,214,750 |
General and administrative | 1,017,043 | 1,153,862 |
Real estate operations expense | 154,792 | 118,559 |
Total Operating Expenses | 4,014,896 | 4,381,652 |
Operating Income | 718,571 | 150,609 |
Interest Expense | -110,151 | -113,931 |
Interest Income | 6,544 | 5,166 |
Other Income | ' | 16,001 |
Income Before Income Taxes | 614,964 | 57,845 |
Income Tax Expense (Benefit) | 130,490 | -74,406 |
Net Income | $484,474 | $132,251 |
Basic Earnings Per Share | $0.03 | $0.01 |
Diluted Earnings Per Share | $0.03 | $0.01 |
Weighted Average Shares - Basic | 14,541,869 | 14,484,200 |
Weighted Average Shares - Diluted | 14,580,165 | 14,484,200 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning balance at Feb. 29, 2012 | $144,553 | $8,657,629 | ($2,994,615) | $5,807,567 |
Beginning balance (shares) at Feb. 29, 2012 | 14,455,444 | ' | ' | ' |
Exercise of stock options (shares) | 47,566 | ' | ' | ' |
Exercise of stock options | 477 | 24,869 | ' | 25,346 |
Net Income | ' | ' | 132,251 | 132,251 |
Ending balance at Feb. 28, 2013 | 145,030 | 8,709,601 | -2,862,364 | 5,992,267 |
Ending balance (shares) at Feb. 28, 2013 | 14,503,010 | ' | ' | ' |
Exercise of stock options (shares) | 205,508 | ' | ' | ' |
Exercise of stock options | 2,055 | -1,845 | ' | 210 |
Stock based compensation expense | ' | 18,127 | ' | 18,127 |
Net Income | ' | ' | 484,474 | 484,474 |
Ending balance at Feb. 28, 2014 | $147,085 | $8,725,883 | ($2,377,890) | $6,495,078 |
Ending balance (shares) at Feb. 28, 2014 | 14,708,518 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net Income | $484,474 | $132,251 |
Depreciation and amortization | 343,869 | 349,937 |
Stock based compensation expense | 18,127 | 27,103 |
Inventory reserve | -5,346 | 6,554 |
Allowance for doubtful accounts | 12,000 | ' |
Write off of impaired acquisition costs | 15,020 | ' |
(Increase) Decrease in: | ' | ' |
Accounts receivable | 68,736 | -181,426 |
Inventories | 159,702 | 723,401 |
Prepaid expenses and other assets | -80,768 | 32,787 |
Deferred tax asset | ' | -3,854 |
(Decrease) Increase in: | ' | ' |
Accounts payable and accrued expenses | 235,550 | -196,946 |
Customer deposits | 294,000 | -247,400 |
Income taxes payable | 123,067 | -30,919 |
Net Cash Provided by Operating Activities | 1,668,431 | 611,488 |
CASH FLOW FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of equipment, furnishings and leasehold improvements | -224,354 | -352,212 |
Sale (Purchase) of marketable securities | 345,116 | -721,923 |
Patent application and other asset costs | -55,577 | -32,218 |
Net Cash Provided by (Used In) Investing Activities | 65,185 | -1,106,353 |
CASH FLOW FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of options | 210 | 25,346 |
Proceeds from note payable - bank | 1,600,000 | ' |
Repayments of long term debt | -2,042,711 | -121,264 |
Net Cash (Used In) Financing Activities | -442,501 | -95,918 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,291,115 | -590,783 |
CASH AND CASH EQUIVALENTS | ' | ' |
Beginning of period | 1,940,906 | 2,531,689 |
End of period | $3,232,021 | $1,940,906 |
Business_Description
Business Description | 12 Months Ended |
Feb. 28, 2014 | |
Accounting Policies [Abstract] | ' |
Business Description | ' |
NOTE 1: BUSINESS DESCRIPTION | |
The Company was incorporated in New York on March 21, 1975 for the purpose of engaging in the development, manufacture, and sale of ultrasonic liquid atomizing nozzles, which are sold world-wide. Ultrasonic nozzle systems atomize low to medium viscosity liquids by converting electrical energy into mechanical motion in the form of high frequency ultrasonic vibrations that break liquids into minute drops that can be applied to surfaces at low velocity. | |
Based on its core technology of ultrasonic liquid atomizing nozzles, the Company has developed intellectual property in the area of precision spray coating of liquids. The Company is presently engaged in the development, manufacture, sales, installation and servicing of diverse ultrasonic coating equipment for various manufacturing industries worldwide. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Significant Accounting Policies | ' | ||||||||
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Consolidation - The accompanying consolidated financial statements of Sono-Tek Corporation, a New York corporation (the “Company”), include the accounts of the Company and its wholly owned subsidiaries, Sono-Tek Cleaning Systems Inc. and Sono-Tek Industrial Park, LLC. Sono-Tek Cleaning Systems, Inc., a New Jersey Corporation (“SCS”), ceased operations during the Fiscal Year Ended February 28, 2002. Sono-Tek Industrial Park, LLC (“SIP”), operates as a real estate holding company for the Company’s real estate operations. | |||||||||
Reclassifications – Where appropriate, prior year’s financial statements reflect reclassifications to conform to the current year’s presentation. | |||||||||
Cash and Cash Equivalents - Cash and cash equivalents consist of money market mutual funds, short term commercial paper and short-term certificates of deposit with original maturities of 90 days or less. | |||||||||
Supplemental Cash Flow Disclosure - | |||||||||
Years Ended | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Interest paid | $ | 110,151 | $ | 113,931 | |||||
Income taxes paid | $ | 2,485 | $ | 38,848 | |||||
Inventories - Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out (FIFO) method for raw materials, subassemblies and work-in-progress and the specific identification method for finished goods. | |||||||||
Allowance for doubtful accounts - The Company records a bad debt expense/allowance based on management’s estimate of uncollectible accounts. All outstanding accounts receivable accounts are reviewed for collectability on an individual basis. The bad debt expense recorded for the years ended February 28, 2014 and 2013 was $12,000 and $9,620, respectively. | |||||||||
Equipment, Furnishings and Leasehold Improvements – Equipment, furnishings and leasehold improvements are stated at cost. Depreciation of equipment and furnishings is computed by use of the straight-line method based on the estimated useful lives of the assets, which range from three to five years. | |||||||||
Land and Buildings – Land and buildings are stated at cost. Buildings are being depreciated by use of the straight-line method based on an estimated useful life of forty years. | |||||||||
Product Warranty - Expected future product warranty expense is recorded when the product is sold. | |||||||||
Intangible Assets -Include costs of patent applications which are deferred and charged to operations over seventeen years for domestic patents and twelve years for foreign patents. The accumulated amortization of patents is $105,585 and $95,634 at February 28, 2014 and 2013, respectively. Annual amortization expense of such intangible assets is expected to be $9,600 per year for the next five years. | |||||||||
Research and Product Development Expenses - Research and product development expenses represent engineering and other expenditures incurred for developing new products, for refining the Company's existing products and for developing systems to meet unique customer specifications for potential orders or for new industry applications and are expensed as incurred. | |||||||||
Income Taxes - The Company accounts for income taxes under the asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of "temporary differences" by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. | |||||||||
Earnings Per Share - Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||
Shipping and Handling Costs – Shipping and handling costs are included in cost of sales in the accompanying consolidated statements of operations. | |||||||||
Advertising Expenses - The Company expenses the cost of advertising in the period in which the advertising takes place. Advertising expense for the years ended February 28, 2014 and 2013 was $234,798 and $218,279, respectively. | |||||||||
Long-Lived Assets - The Company periodically evaluates the carrying value of long-lived assets, including intangible assets, when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. | |||||||||
Recognition of Revenue – Sales are recorded at the time title passes to the customer, which, based on shipping terms, generally occurs when the product is shipped to the customer. Based on prior experience, the Company reasonably estimates its sales returns and warranty reserves. Sales are presented net of discounts and allowances. Discounts and allowances are determined when a sale is negotiated. The Company does not grant its customers or independent representatives the ability to return equipment nor does it grant price adjustments after a sale is complete. | |||||||||
Concentration of Credit Risk - The Company does not believe that it is subject to any unusual or significant risks, in the normal course of business. The Company had one customer, which accounted for 10% of sales during the year ended February 28, 2014. Three customers accounted for 27% of the outstanding accounts receivables at February 28, 2014. | |||||||||
Fair Value of Financial Instruments - The Company follows the guidance in the “Fair Value Measurements and Disclosure Topic” of the Accounting Standards Codification for assets and liabilities measured at fair value on a recurring basis. This guidance establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the guidance requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: | |||||||||
Level 1: Quoted prices in active markets. | |||||||||
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. | |||||||||
Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. | |||||||||
The fair values of financial assets of the Company were determined using the following categories at February 28, 2014 and 2013, respectively: | |||||||||
Quoted Prices in Active Markets | |||||||||
(Level 1) | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Marketable Securities | $ | 630,794 | $ | 975,910 | |||||
Marketable Securities include mutual funds of $630,794, that are considered to be highly liquid and easily tradeable as of February 28, 2014. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within the Company’s fair value hierarchy. | |||||||||
Management Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 those estimates. | |||||||||
New Accounting Pronouncements- All new accounting pronouncements issued but not yet effective have been deemed to be not applicable to the Company. Hence, the adoption of these new accounting pronouncements once effective are not expected to have an impact on the Company. | |||||||||
In July 2013, the FASB issued Accounting Standards Update “ASU” 2013-11 on “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The amendments in this ASU are to improve the current U.S. GAAP because they are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||||||||
NOTE 3: SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||
The Company operates in two segments: ultrasonic spray coating systems, which is the business of developing, manufacturing, selling, installing and servicing ultrasonic spray coating equipment; and real estate operations, which is the business of owning and operating the Sono-Tek Industrial Park. | |||||||||||||||||||||||||||||||||
All inter-company transactions are eliminated in consolidation. For the twelve months ended February 28, 2014 and 2013, segment information is as follows: | |||||||||||||||||||||||||||||||||
Twelve Months Ended February 28, 2014 | Twelve Months Ended February 28, 2013 | ||||||||||||||||||||||||||||||||
Ultrasonic | Rental | Eliminations | Consolidated | Ultrasonic | Rental | Eliminations | Consolidated | ||||||||||||||||||||||||||
Spraying | Real Estate | Spraying | Real Estate | ||||||||||||||||||||||||||||||
Operations | Operations | ||||||||||||||||||||||||||||||||
Net Sales | $ | 10,202,273 | $ | 217,453 | $ | 140,788 | $ | 10,278,938 | $ | 9,490,564 | $ | 187,531 | $ | 135,741 | $ | 9,542,354 | |||||||||||||||||
Rental Expense | $ | 140,788 | $ | 154,792 | $ | (140,788 | ) | $ | 154,792 | $ | 135,741 | $ | 118,559 | $ | (135,741 | ) | $ | 118,559 | |||||||||||||||
Interest Expense | $ | 2,411 | $ | 107,740 | $ | 110,151 | $ | 3,546 | $ | 110,385 | $ | 113,931 | |||||||||||||||||||||
Net Income (Loss) | $ | 529,553 | $ | (45,079 | ) | $ | 484,474 | $ | 173,664 | $ | (41,413 | ) | $ | 132,251 | |||||||||||||||||||
Assets | $ | 7,268,871 | $ | 2,510,290 | $ | 9,779,161 | $ | 6,574,429 | $ | 2,492,015 | $ | 9,066,444 | |||||||||||||||||||||
Debt | $ | 81,165 | $ | 1,589,360 | $ | 1,670,525 | $ | 140,619 | $ | 1,972,616 | $ | 2,113,235 |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||
Feb. 28, 2014 | |||
Notes to Financial Statements | ' | ||
Stock Based Compensation | ' | ||
NOTE 4: STOCK-BASED COMPENSATION | |||
The Company adopted ASC 718, “Share Based Payments.” which requires companies to expense the value of employee stock options and similar awards. | |||
The weighted-average fair value of options has been estimated on the date of grant using the Black-Scholes options-pricing model. The weighted-average Black-Scholes assumptions are as follows: | |||
2014 | 2013 | ||
Expected life | 8 years | 3 - 8 years | |
Risk free interest rate | 0.70% | .35% - .37% | |
Expected volatility | 53.92% | 88.50% | |
Expected dividend yield | 0% | 0% | |
In computing the impact, the fair value of each option is estimated on the date of grant based on the Black-Scholes options-pricing model utilizing certain assumptions for a risk free interest rate, volatility and expected remaining lives of the awards. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company’s stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company’s forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the number of vested options as a percentage of total options outstanding. If the Company’s actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. | |||
For the years ended February 28, 2014 and February 28, 2013, net income and earnings per share reflect the actual deduction for stock-based compensation expense. The impact of applying ASC 718 approximated $18,127 and $27,103 in additional compensation expense for the years then ended, respectively. Such amount is included in general and administrative expenses on the statement of operations. The expense for stock-based compensation is a non-cash expense item. |
Inventories
Inventories | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Inventories | ' | ||||||||
NOTE 5: INVENTORIES | |||||||||
Inventories consist of the following: | |||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Raw Materials | $ | 1,022,496 | $ | 1,073,492 | |||||
Work-in-process | 402,377 | 385,092 | |||||||
Consignment | 25,639 | 9,728 | |||||||
Finished Goods | 419,396 | 561,298 | |||||||
Totals | 1,869,908 | 2,029,610 | |||||||
Less: Allowance | (195,093 | ) | (200,439 | ) | |||||
Total Inventories | $ | 1,674,815 | $ | 1,829,171 |
Buildings_Equipment_Furnishing
Buildings, Equipment, Furnishings and Leasehold Improvements | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Buildings, Equipment, Furnishings and Leasehold Improvements | ' | ||||||||
NOTE 6: BUILDINGS, EQUIPMENT, FURNISHINGS AND LEASEHOLD IMPROVEMENTS | |||||||||
Equipment, furnishings and leasehold improvements consist of the following: | |||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Buildings | $ | 2,250,000 | $ | 2,250,000 | |||||
Laboratory equipment | 708,899 | 651,562 | |||||||
Machinery and equipment | 646,983 | 639,102 | |||||||
Leasehold improvements | 228,860 | 207,979 | |||||||
Tradeshow and demonstration equipment | 999,758 | 908,819 | |||||||
Furniture and fixtures | 674,489 | 654,151 | |||||||
Totals | 5,508,988 | 5,311,613 | |||||||
Less: accumulated depreciation | (2,799,975 | ) | (2,494,337 | ) | |||||
$ | 2,709,013 | $ | 2,817,276 | ||||||
Depreciation expense for the years ended February 28, 2014 and 2013 was $332,617 and $339,318, respectively. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
NOTE 7: ACCRUED EXPENSES | |||||||||
Accrued expenses consist of the following: | |||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Accrued compensation | $ | 201,676 | $ | 121,275 | |||||
Estimated warranty costs | 30,900 | 27,750 | |||||||
Accrued commissions | 156,964 | 232,920 | |||||||
Professional fees | 44,692 | 33,000 | |||||||
Other accrued expenses | 130,889 | 62,082 | |||||||
$ | 565,121 | $ | 477,027 |
Revolving_Line_of_Credit
Revolving Line of Credit | 12 Months Ended |
Feb. 28, 2014 | |
Notes to Financial Statements | ' |
Revolving Line of Credit | ' |
NOTE 8: REVOLVING LINE OF CREDIT | |
The Company has a $750,000 revolving line of credit at prime which was 3.25% at February 28, 2014. The line of credit is collateralized by all of the assets of the Company, except for the land and buildings. The line of credit is payable on demand and must be retired for a 30 day period once annually. If the Company fails to perform the 30 day annual pay down or if the bank elects to terminate the credit line, the bank may at its option convert the outstanding balance to a 36 month term note with payments including interest in 36 equal installments. As of February 28, 2014, the Company’s outstanding balance was $0, and the unused credit line was $750,000. |
Long_Term_Debt
Long Term Debt | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Long Term Debt | ' | ||||||||
NOTE 9: LONG-TERM DEBT | |||||||||
Long-term debt consists of the following: | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Note payable, individual, collateralized by land and buildings, payable in monthly installments of principal and interest of $14,446 through January 2031. Interest rate 5.5%. 20 year term. | $ | 0 | $ | 1,972,617 | |||||
Equipment loan, bank, collateralized by related production equipment, payable in monthly installments of principal and interest of $5,158 through June 2015. Interest rate 2.12%. 48 month term. | 81,164 | 140,618 | |||||||
Note payable, bank, collateralized by land and buildings, payable in monthly installments of principal and interest of $16,358 through January 2024. Interest rate 4.15%. 10 year term. | 1,589,360 | 0 | |||||||
Total long term debt | 1,670,524 | 2,113,235 | |||||||
Due within one year | 191,466 | 125,999 | |||||||
Due after one year | $ | 1,479,058 | $ | 1,987,236 | |||||
Long-term debt is payable as follows: | |||||||||
Fiscal Year ending February 28, | |||||||||
2015 | 191,466 | ||||||||
2016 | 158,014 | ||||||||
2017 | 143,388 | ||||||||
2018 | 149,698 | ||||||||
2019 | 156,119 | ||||||||
Thereafter | 871,839 |
Bank_Guarantees
Bank Guarantees | 12 Months Ended |
Feb. 28, 2014 | |
Notes to Financial Statements | ' |
Bank Guarantees | ' |
NOTE 10: BANK GUARANTEES | |
As of February 28, 2014, $26,729 of the Company’s cash on deposit with a foreign bank was being utilized to collateralize guarantees issued by the bank in favor of international customers of the Company to secure their cash deposits on orders that have been remitted to the Company. The customers may exercise the guarantees, subject to certain performance requirements being met by the Company. The guarantees expire at various dates in 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 28, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
NOTE 11: COMMITMENTS AND CONTINGENCIES | |
The Company does not have any material commitments or contingencies as of February 28, 2014. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
NOTE 12: INCOME TAXES | |||||||||
The annual provision (benefit) for income taxes differs from amounts computed by applying the maximum U.S. Federal income tax rate of 34% to pre-tax income as follows: | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Expected federal income tax | $ | 208,088 | $ | 47,155 | |||||
State tax, net of federal | 12,100 | 6,736 | |||||||
Permanent timing difference | (6,771 | ) | 19,409 | ||||||
State tax credits | — | (76,137 | ) | ||||||
Utilization of net operating loss carryforwards and research and development tax credits | (82,927 | ) | (71,569 | ) | |||||
Income tax (benefit) | $ | 130,490 | $ | (74,406 | ) | ||||
Current federal and state income taxes | $ | 130,490 | $ | 5,585 | |||||
Recognition of deferred tax assets | — | (3,854 | ) | ||||||
State tax credits | — | (76,137 | ) | ||||||
Income tax (benefit) | $ | 130,490 | $ | (74,406 | ) | ||||
The net deferred tax asset is comprised of the following: | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Inventory | $ | 103,000 | $ | 129,000 | |||||
Allowance for accounts receivable | 13,000 | 8,000 | |||||||
Accrued expenses and other | 59,000 | 111,000 | |||||||
Research tax credits | 117,000 | 100,000 | |||||||
Deferred tax asset | 292,000 | 348,000 | |||||||
Deferred tax liability | (202,000 | ) | (258,000 | ) | |||||
Net deferred tax asset | $ | 90,000 | $ | 90,000 | |||||
At February 28, 2014 and 2013, the Company had no net operating loss carryforwards remaining but has $117,000 and $100,000 of research and development tax credits, respectively, being carried forward. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Stockholders' Equity | ' | ||||||||
NOTE 13: STOCKHOLDERS’ EQUITY | |||||||||
Stock Options – Under the 2013 Stock Incentive Plan, as amended ("2013 Plan"), options can be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 2,500,000 shares of the Company's common stock. Under the 2013 Plan options expire ten years after the date of grant. As of February 28, 2014, there were 135,500 options outstanding under the 2013 plan. | |||||||||
Under the 2003 Stock Incentive Plan, as amended ("2003 Plan"), until May 2013, options were available to be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 1,500,000 of the Company's common shares. As of February 28, 2014, there were 811,073 options outstanding under the 2003 Plan, under which no additional options may be granted. | |||||||||
Under the 2013 Stock Incentive Plan, option prices must be at least 100% of the fair market value of the common stock at time of grant. For qualified employees, except under certain circumstances specified in the plan or unless otherwise specified at the discretion of the Board of Directors, no option may be exercised prior to one year after date of grant, with the balance becoming exercisable in cumulative installments over a three year period during the term of the option, and terminating at a stipulated period of time after an employee's termination of employment. | |||||||||
During Fiscal Year 2014, the Company granted options for 135,500 shares exercisable at prices from $1.05 to $1.20 to employees of the Company. | |||||||||
On November 8, 2012, the Company granted 840,718 options to officers, and one person who became an officer subsequent to that date, and 140,000 options to directors, at an exercise price of $0.61. These options vest as follows: 33.33% on the date of grant, 33.33% one year from the date of grant and 33.33% two years from the date of grant. The options expire ten years from the date of grant. In exchange for the newly issued options, the officers and directors surrendered their outstanding options and these were cancelled. The surrendered options were set to expire at various dates from 2014 to 2021 and had an average strike price of $0.95. | |||||||||
During Fiscal Year 2013, the Company also granted options for 115,000 shares exercisable at prices from $.48 to $.61 to officers of the Company and options for 10,000 shares exercisable at $.48 to an employee of the Company. | |||||||||
A summary of the activity of both plans for the years ended February 28, 2014 and 2013 is as follows: | |||||||||
Weighted Average | |||||||||
Stock Options | Exercise Price | Fair Value | |||||||
Outstanding | Exercisable | Outstanding | Exercisable | Vested | |||||
Balance – February 29, 2012 | 1,318,460 | 1,204,660 | 1.1 | 1.11 | 0.36 | ||||
Granted | 1,105,718 | 0.6 | |||||||
Exercised | -47,566 | -0.79 | |||||||
Cancelled | -1,053,894 | -0.93 | |||||||
Balance – February 28, 2013 | 1,322,718 | 549,425 | $0.67 | $0.77 | $0.39 | ||||
Granted | 135,500 | 1.06 | |||||||
Exercised | -501,645 | -0.6 | |||||||
Cancelled | -10,000 | -1.11 | |||||||
Balance – February 28, 2014 | 946,573 | 435,714 | $0.76 | $0.82 | $0.41 | ||||
The intrinsic value of the Company’s options exercised during the years ended February 28, 2014 and 2013 was $157,427 and $4,891, respectively. | |||||||||
Information, at date of issuance, regarding stock option grants for the years ended February 28, 2014: | |||||||||
Shares | Weighted | Weighted | |||||||
Average | Average | ||||||||
Exercise | Fair | ||||||||
Price | Value | ||||||||
Year ended February 28, 2014: | |||||||||
Exercise price exceeds market price | - | - | - | ||||||
Exercise price equals market price | 135,500 | $ 1.06 | $ .50 | ||||||
Exercise price is less than market price | - | - | - | ||||||
The aggregate intrinsic value of the Company’s outstanding options at February 28, 2014 and 2013 was $369,659 and $459,966, respectively. | |||||||||
The following table summarizes information about stock options outstanding and exercisable at February 28, 2014: | |||||||||
Number | Weighted- | Weighted | Number | ||||||
Outstanding | Average | Average | Exercisable | ||||||
Remaining | Exercise | ||||||||
Life in | Price | ||||||||
Years | |||||||||
Range of exercise prices: | |||||||||
$.42 to $.50 | 63,500 | 7.74 | $ .47 | 36,000 | |||||
$.51 to $1.00 | 630,573 | 8.3 | $ .63 | 275,214 | |||||
$1.01 to $1.95 | 252,500 | 6.05 | $1.16 | 124,500 | |||||
946,573 | 435,714 |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Earnings Per Share | ' | ||||||||
NOTE 14: EARNINGS PER SHARE | |||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Numerator for basic and diluted | |||||||||
Earnings per share | $ | 484,474 | $ | 132,251 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share-weighted average shares | 14,541,869 | 14,484,200 | |||||||
Effects of dilutive securities: | |||||||||
Stock options for employees, directors and outside consultants | 38,296 | — | |||||||
Denominator for diluted earnings per share | 14,580,165 | 14,484,200 | |||||||
Basic Earnings Per Share | $ | 0.03 | $ | 0.01 | |||||
Diluted Earnings Per Share | $ | 0.03 | $ | 0.01 |
Significant_Customers_and_Fore
Significant Customers and Foreign Sales | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Significant Customers and Foreign Sales | ' | ||||||||
NOTE 15: SIGNIFICANT CUSTOMERS AND FOREIGN SALES | |||||||||
Export sales to customers located outside the United States were approximately as follows: | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Western Europe | $ | 1,817,000 | $ | 1,261,000 | |||||
Far East | 3,328,000 | 3,399,000 | |||||||
Other | 1,302,000 | 497,000 | |||||||
$ | 6,447,000 | $ | 5,157,000 | ||||||
During Fiscal Years 2014 and 2013, sales to foreign customers accounted for approximately $6,447,000 and $5,157,000, or 63% and 54% respectively, of total revenues. | |||||||||
One customer accounted for 10% of the Company’s sales for Fiscal Year ended February 28, 2014. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Feb. 28, 2014 | |
Notes to Financial Statements | ' |
Subsequent Events | ' |
NOTE 16: SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events for disclosure purposes. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Consolidation | ' | ||||||||
Consolidation - The accompanying consolidated financial statements of Sono-Tek Corporation, a New York corporation (the “Company”), include the accounts of the Company and its wholly owned subsidiaries, Sono-Tek Cleaning Systems Inc. and Sono-Tek Industrial Park, LLC. Sono-Tek Cleaning Systems, Inc., a New Jersey Corporation (“SCS”), ceased operations during the Fiscal Year Ended February 28, 2002. Sono-Tek Industrial Park, LLC (“SIP”), operates as a real estate holding company for the Company’s real estate operations and started operating in December 2010. | |||||||||
Reclassifications | ' | ||||||||
Reclassifications – Where appropriate, prior year’s financial statements reflect reclassifications to conform to the current year’s presentation. | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents - Cash and cash equivalents consist of money market mutual funds, short term commercial paper and short-term certificates of deposit with original maturities of 90 days or less. | |||||||||
Supplemental Cash Flow Disclosure | ' | ||||||||
Supplemental Cash Flow Disclosure - | |||||||||
Years Ended | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Interest paid | $ | 110,151 | $ | 113,931 | |||||
Income taxes paid | $ | 2,485 | $ | 38,848 | |||||
Inventories | ' | ||||||||
Inventories - Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out (FIFO) method for raw materials, subassemblies and work-in-progress and the specific identification method for finished goods. | |||||||||
Allowance for doubtful accounts | ' | ||||||||
Allowance for doubtful accounts - The Company records a bad debt expense/allowance based on management’s estimate of uncollectible accounts. All outstanding accounts receivable accounts are reviewed for collectability on an individual basis. The bad debt expense recorded for the years ended February 28, 2014 and 2013 was $12,000 and $9,620, respectively. | |||||||||
Equipment, Furnishings and Leasehold Improvements | ' | ||||||||
Equipment, Furnishings and Leasehold Improvements – Equipment, furnishings and leasehold improvements are stated at cost. Depreciation of equipment and furnishings is computed by use of the straight-line method based on the estimated useful lives of the assets, which range from three to five years. | |||||||||
Land and Buildings | ' | ||||||||
Land and Buildings – Land and buildings are stated at cost. Buildings are being depreciated by use of the straight-line method based on an estimated useful life of forty years. | |||||||||
Product Warranty | ' | ||||||||
Product Warranty - Expected future product warranty expense is recorded when the product is sold. | |||||||||
Intangible Assets | ' | ||||||||
Intangible Assets -Include costs of patent applications which are deferred and charged to operations over seventeen years for domestic patents and twelve years for foreign patents. The accumulated amortization of patents is $105,585 and $95,634 at February 28, 2014 and 2013, respectively. Annual amortization expense of such intangible assets is expected to be $9,600 per year for the next five years. | |||||||||
Research and Product Development Expenses | ' | ||||||||
Research and Product Development Expenses - Research and product development expenses represent engineering and other expenditures incurred for developing new products, for refining the Company's existing products and for developing systems to meet unique customer specifications for potential orders or for new industry applications and are expensed as incurred. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes - The Company accounts for income taxes under the asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of "temporary differences" by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. | |||||||||
Earnings Per Share | ' | ||||||||
Earnings Per Share - Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||
Shipping and Handling Costs | ' | ||||||||
Shipping and Handling Costs – Shipping and handling costs are included in cost of sales in the accompanying consolidated statements of operations. | |||||||||
Advertising Expenses | ' | ||||||||
Advertising Expenses - The Company expenses the cost of advertising in the period in which the advertising takes place. Advertising expense for the years ended February 28, 2014 and 2013 was $234,798 and $218,279, respectively. | |||||||||
Long-Lived Assets | ' | ||||||||
Long-Lived Assets - The Company periodically evaluates the carrying value of long-lived assets, including intangible assets, when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. | |||||||||
Recognition of Revenue | ' | ||||||||
Recognition of Revenue – Sales are recorded at the time title passes to the customer, which, based on shipping terms, generally occurs when the product is shipped to the customer. Based on prior experience, the Company reasonably estimates its sales returns and warranty reserves. Sales are presented net of discounts and allowances. Discounts and allowances are determined when a sale is negotiated. The Company does not grant its customers or independent representatives the ability to return equipment nor does it grant price adjustments after a sale is complete. | |||||||||
Concentration of Credit Risk | ' | ||||||||
Concentration of Credit Risk - The Company does not believe that it is subject to any unusual or significant risks, in the normal course of business. The Company had one customer, which accounted for 10% of sales during the year ended February 28, 2014. Three customers accounted for 27% of the outstanding accounts receivables at February 28, 2014. | |||||||||
Fair Value of Financial Instruments | ' | ||||||||
Fair Value of Financial Instruments - The Company follows the guidance in the “Fair Value Measurements and Disclosure Topic” of the Accounting Standards Codification for assets and liabilities measured at fair value on a recurring basis. This guidance establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the guidance requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: | |||||||||
Level 1: Quoted prices in active markets. | |||||||||
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. | |||||||||
Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. | |||||||||
The fair values of financial assets of the Company were determined using the following categories at February 28, 2014 and 2013, respectively: | |||||||||
Quoted Prices in Active Markets | |||||||||
(Level 1) | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Marketable Securities | $ | 630,794 | $ | 975,910 | |||||
Marketable Securities include mutual funds of $630,794, that are considered to be highly liquid and easily tradeable as of February 28, 2014. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within the Company’s fair value hierarchy. | |||||||||
Management Estimates | ' | ||||||||
Management Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 those estimates. | |||||||||
New Accounting Pronouncements | ' | ||||||||
New Accounting Pronouncements- All new accounting pronouncements issued but not yet effective have been deemed to be not applicable to the Company. Hence, the adoption of these new accounting pronouncements once effective are not expected to have an impact on the Company. | |||||||||
In July 2013, the FASB issued Accounting Standards Update “ASU” 2013-11 on “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The amendments in this ASU are to improve the current U.S. GAAP because they are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Supplemental cash flow disclosure | ' | ||||||||
Years Ended | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Interest paid | $ | 110,151 | $ | 113,931 | |||||
Income taxes paid | $ | 2,485 | $ | 38,848 | |||||
Fair values of financial assets of the Company | ' | ||||||||
Quoted Prices in Active Markets | |||||||||
(Level 1) | |||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Marketable Securities | $ | 630,794 | $ | 975,910 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||||||||||||
Segment Information Tables | ' | ||||||||||||||||||||||||||||||||
Segment information | ' | ||||||||||||||||||||||||||||||||
Twelve Months Ended February 28, 2014 | Twelve Months Ended February 28, 2013 | ||||||||||||||||||||||||||||||||
Ultrasonic | Rental | Eliminations | Consolidated | Ultrasonic | Rental | Eliminations | Consolidated | ||||||||||||||||||||||||||
Spraying | Real Estate | Spraying | Real Estate | ||||||||||||||||||||||||||||||
Operations | Operations | ||||||||||||||||||||||||||||||||
Net Sales | $ | 10,202,273 | $ | 217,453 | $ | 140,788 | $ | 10,278,938 | $ | 9,490,564 | $ | 187,531 | $ | 135,741 | $ | 9,542,354 | |||||||||||||||||
Rental Expense | $ | 140,788 | $ | 154,792 | $ | (140,788 | ) | $ | 154,792 | $ | 135,741 | $ | 118,559 | $ | (135,741 | ) | $ | 118,559 | |||||||||||||||
Interest Expense | $ | 2,411 | $ | 107,740 | $ | 110,151 | $ | 3,546 | $ | 110,385 | $ | 113,931 | |||||||||||||||||||||
Net Income (Loss) | $ | 529,553 | $ | (45,079 | ) | $ | 484,474 | $ | 173,664 | $ | (41,413 | ) | $ | 132,251 | |||||||||||||||||||
Assets | $ | 7,268,871 | $ | 2,510,290 | $ | 9,779,161 | $ | 6,574,429 | $ | 2,492,015 | $ | 9,066,444 | |||||||||||||||||||||
Debt | $ | 81,165 | $ | 1,589,360 | $ | 1,670,525 | $ | 140,619 | $ | 1,972,616 | $ | 2,113,235 |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||
Feb. 28, 2014 | |||
Notes to Financial Statements | ' | ||
Weighted-average Black-Scholes assumptions | ' | ||
2014 | 2013 | ||
Expected life | 8 years | 3 - 8 years | |
Risk free interest rate | 0.70% | .35% - .37% | |
Expected volatility | 53.92% | 88.50% | |
Expected dividend yield | 0% | 0% |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Inventories Tables | ' | ||||||||
Inventories | ' | ||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Raw Materials | $ | 1,022,496 | $ | 1,073,492 | |||||
Work-in-process | 402,377 | 385,092 | |||||||
Consignment | 25,639 | 9,728 | |||||||
Finished Goods | 419,396 | 561,298 | |||||||
Totals | 1,869,908 | 2,029,610 | |||||||
Less: Allowance | (195,093 | ) | (200,439 | ) | |||||
Total Inventories | $ | 1,674,815 | $ | 1,829,171 |
Buildings_Equipment_Furnishing1
Buildings, Equipment, Furnishings and Leasehold Improvements (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Equipment, furnishings and leasehold improvements | ' | ||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Buildings | $ | 2,250,000 | $ | 2,250,000 | |||||
Laboratory equipment | 708,899 | 651,562 | |||||||
Machinery and equipment | 646,983 | 639,102 | |||||||
Leasehold improvements | 228,860 | 207,979 | |||||||
Tradeshow and demonstration equipment | 999,758 | 908,819 | |||||||
Furniture and fixtures | 674,489 | 654,151 | |||||||
Totals | 5,508,988 | 5,311,613 | |||||||
Less: accumulated depreciation | (2,799,975 | ) | (2,494,337 | ) | |||||
$ | 2,709,013 | $ | 2,817,276 |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued expenses | ' | ||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Accrued compensation | $ | 201,676 | $ | 121,275 | |||||
Estimated warranty costs | 30,900 | 27,750 | |||||||
Accrued commissions | 156,964 | 232,920 | |||||||
Professional fees | 44,692 | 33,000 | |||||||
Other accrued expenses | 130,889 | 62,082 | |||||||
$ | 565,121 | $ | 477,027 |
Long_Term_Debt_Tables
Long Term Debt (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Long Term Debt Tables | ' | ||||||||
Long-term debt | ' | ||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Note payable, individual, collateralized by land and buildings, payable in monthly installments of principal and interest of $14,446 through January 2031. Interest rate 5.5%. 20 year term. | $ | 0 | $ | 1,972,617 | |||||
Equipment loan, bank, collateralized by related production equipment, payable in monthly installments of principal and interest of $5,158 through June 2015. Interest rate 2.12%. 48 month term. | 81,164 | 140,618 | |||||||
Note payable, bank, collateralized by land and buildings, payable in monthly installments of principal and interest of $16,358 through January 2024. Interest rate 4.15%. 10 year term. | 1,589,360 | 0 | |||||||
Total long term debt | 1,670,524 | 2,113,235 | |||||||
Due within one year | 191,466 | 125,999 | |||||||
Due after one year | $ | 1,479,058 | $ | 1,987,236 | |||||
Long-term debt payables | ' | ||||||||
Fiscal Year ending February 28, | |||||||||
2015 | 191,466 | ||||||||
2016 | 158,014 | ||||||||
2017 | 143,388 | ||||||||
2018 | 149,698 | ||||||||
2019 | 156,119 | ||||||||
Thereafter | 871,839 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income tax reconciliation | ' | ||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Expected federal income tax | $ | 208,088 | $ | 47,155 | |||||
State tax, net of federal | 12,100 | 6,736 | |||||||
Permanent timing difference | (6,771 | ) | 19,409 | ||||||
State tax credits | — | (76,137 | ) | ||||||
Utilization of net operating loss carryforwards and research and development tax credits | (82,927 | ) | (71,569 | ) | |||||
Income tax (benefit) | $ | 130,490 | $ | (74,406 | ) | ||||
Current federal and state income taxes | $ | 130,490 | $ | 5,585 | |||||
Recognition of deferred tax assets | — | (3,854 | ) | ||||||
State tax credits | — | (76,137 | ) | ||||||
Income tax (benefit) | $ | 130,490 | $ | (74,406 | ) | ||||
Net deferred tax asset components | ' | ||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Inventory | $ | 103,000 | $ | 129,000 | |||||
Allowance for accounts receivable | 13,000 | 8,000 | |||||||
Accrued expenses and other | 59,000 | 111,000 | |||||||
Research tax credits | 117,000 | 100,000 | |||||||
Deferred tax asset | 292,000 | 348,000 | |||||||
Deferred tax liability | (202,000 | ) | (258,000 | ) | |||||
Net deferred tax asset | $ | 90,000 | $ | 90,000 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Summary of stock options | ' | ||||||||
Weighted Average | |||||||||
Stock Options | Exercise Price | Fair Value | |||||||
Outstanding | Exercisable | Outstanding | Exercisable | Vested | |||||
Balance – February 29, 2012 | 1,318,460 | 1,204,660 | 1.1 | 1.11 | 0.36 | ||||
Granted | 1,105,718 | 0.6 | |||||||
Exercised | -47,566 | -0.79 | |||||||
Cancelled | -1,053,894 | -0.93 | |||||||
Balance – February 28, 2013 | 1,322,718 | 549,425 | $0.67 | $0.77 | $0.39 | ||||
Granted | 135,500 | 1.06 | |||||||
Exercised | -501,645 | -0.6 | |||||||
Cancelled | -10,000 | -1.11 | |||||||
Balance – February 28, 2014 | 946,573 | 435,714 | $0.76 | $0.82 | $0.41 | ||||
Stock option grants | ' | ||||||||
Shares | Weighted | Weighted | |||||||
Average | Average | ||||||||
Exercise | Fair | ||||||||
Price | Value | ||||||||
Year ended February 28, 2014: | |||||||||
Exercise price exceeds market price | - | - | - | ||||||
Exercise price equals market price | 135,500 | $ 1.06 | $ .50 | ||||||
Exercise price is less than market price | - | - | - | ||||||
Stock options outstanding and exercisable | ' | ||||||||
Number | Weighted- | Weighted | Number | ||||||
Outstanding | Average | Average | Exercisable | ||||||
Remaining | Exercise | ||||||||
Life in | Price | ||||||||
Years | |||||||||
Range of exercise prices: | |||||||||
$.42 to $.50 | 63,500 | 7.74 | $ .47 | 36,000 | |||||
$.51 to $1.00 | 630,573 | 8.3 | $ .63 | 275,214 | |||||
$1.01 to $1.95 | 252,500 | 6.05 | $1.16 | 124,500 | |||||
946,573 | 435,714 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Earnings Per Share Tables | ' | ||||||||
Computation of basic and diluted earnings per share | ' | ||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Numerator for basic and diluted | |||||||||
Earnings per share | $ | 484,474 | $ | 132,251 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share-weighted average shares | 14,541,869 | 14,484,200 | |||||||
Effects of dilutive securities: | |||||||||
Stock options for employees, directors and outside consultants | 38,296 | — | |||||||
Denominator for diluted earnings per share | 14,580,165 | 14,484,200 | |||||||
Basic Earnings Per Share | $ | 0.03 | $ | 0.01 | |||||
Diluted Earnings Per Share | $ | 0.03 | $ | 0.01 |
Significant_Customers_and_Fore1
Significant Customers and Foreign Sales (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Export sales to customers located outside the United States | ' | ||||||||
February 28, | February 28, | ||||||||
2014 | 2013 | ||||||||
Western Europe | $ | 1,817,000 | $ | 1,261,000 | |||||
Far East | 3,328,000 | 3,399,000 | |||||||
Other | 1,302,000 | 497,000 | |||||||
$ | 6,447,000 | $ | 5,157,000 |
Significant_Accounting_Policie3
Significant Accounting Policies - Supplemental Cash Flow Disclosure (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Notes to Financial Statements | ' | ' |
Interest paid | $110,151 | $113,931 |
Income taxes paid | $2,485 | $38,848 |
Significant_Accounting_Policie4
Significant Accounting Policies - Allowance for doubtful accounts (Details Narrative) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Notes to Financial Statements | ' | ' |
Bad debt expense | $12,000 | ' |
Significant_Accounting_Policie5
Significant Accounting Policies - Intangible Assets (Details Narrative) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Notes to Financial Statements | ' | ' |
Accumulated amortization of intangible assets | $105,585 | $95,634 |
Annual Amortization Expense of Intangible Assets For the Next Five Years | ' | ' |
Annual amortization expense this year | ' | 9,600 |
Annual amortization expense year two | ' | 9,600 |
Annual amortization expense year three | ' | 9,600 |
Annual amortization expense year four | ' | 9,600 |
Annual amortization expense year five | ' | $9,600 |
Significant_Accounting_Policie6
Significant Accounting Policies - Advertising Expenses (Details Narrative) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Notes to Financial Statements | ' | ' |
Advertising expense | $234,798 | $218,279 |
Significant_Accounting_Policie7
Significant Accounting Policies - Concentration of Credit Risk (Details Narrative) | 12 Months Ended |
Feb. 28, 2014 | |
Notes to Financial Statements | ' |
Concentration of Credit Risk | 'The Company does not believe that it is subject to any unusual or significant risks, in the normal course of business. The Company had one customer, which accounted for 10% of sales during the year ended February 28, 2014. Three customers accounted for 27% of the outstanding accounts receivables at February 28, 2014. |
Significant_Accounting_Policie8
Significant Accounting Policies - Fair values of financial assets of the Company (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Marketable Securities | $630,794 | $975,910 |
Quoted Prices in Active Markets (Level 1) | ' | ' |
Marketable Securities | $630,794 | $975,910 |
Significant_Accounting_Policie9
Significant Accounting Policies - Fair values of financial assets of the Company (Details Narrative) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Notes to Financial Statements | ' | ' |
Mutual funds | $630,794 | $975,910 |
Segment_Information_Tables_Seg
Segment Information (Tables) - Segment information (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Net Sales | $10,278,938 | $9,542,354 |
Rental Expense | 154,792 | 118,559 |
Interest Expense | 110,151 | 113,931 |
Net Income (Loss) | 484,474 | 132,251 |
Assets | 9,779,161 | 9,066,444 |
Debt | 1,670,524 | 2,113,235 |
Ultrasonic Spraying | ' | ' |
Net Sales | 10,202,273 | 9,490,564 |
Rental Expense | 140,788 | 135,741 |
Interest Expense | 2,411 | 3,546 |
Net Income (Loss) | 529,553 | 173,664 |
Assets | 7,268,871 | 6,574,429 |
Debt | 81,165 | 140,619 |
Rental Real Estate Operations | ' | ' |
Net Sales | 217,453 | 187,531 |
Rental Expense | 154,792 | 118,559 |
Interest Expense | 107,740 | 110,385 |
Net Income (Loss) | -45,079 | -41,413 |
Assets | 2,510,290 | 2,492,015 |
Debt | 1,589,360 | 1,972,616 |
Eliminations | ' | ' |
Net Sales | 140,788 | 135,741 |
Rental Expense | -140,788 | -135,741 |
Consolidated | ' | ' |
Net Sales | 10,278,938 | 9,542,354 |
Rental Expense | 154,792 | 118,559 |
Interest Expense | 110,151 | 113,931 |
Net Income (Loss) | 484,474 | 132,251 |
Assets | 9,779,161 | 9,066,444 |
Debt | $1,670,525 | $2,113,235 |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted-average Black-Scholes assumptions (Details) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Expected life (in years) | '8 years | ' |
Risk free interest rate | 0.70% | ' |
Risk free interest rate, minimum | ' | 0.35% |
Risk free interest rate, maximum | ' | 0.37% |
Expected volatility | 53.92% | 88.50% |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ' | ' |
Expected life (in years) | ' | '3 years |
Maximum | ' | ' |
Expected life (in years) | ' | '8 years |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details Narrative) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Notes to Financial Statements | ' | ' |
Additional stock-based compensation expense as a result of applying ASC 718 | $18,127 | $27,103 |
Inventories_Tables_Inventories
Inventories (Tables) - Inventories (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Inventories Tables | ' | ' |
Raw materials | $1,022,496 | $1,073,492 |
Work in process | 402,377 | 385,092 |
Consignment | 25,639 | 9,728 |
Finished goods | 419,396 | 561,298 |
Total | 1,869,908 | 2,029,610 |
Less: Allowance | 195,093 | 200,439 |
Net inventories | $1,674,815 | $1,829,171 |
Buildings_Equipment_Furnishing2
Buildings, Equipment, Furnishings and Leasehold Improvements - Equipment, furnishings and leasehold improvements (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Equipment, furnishings and leasehold improvements | $5,508,988 | $5,311,613 |
Less: accumulated decpreciation | -2,799,975 | -2,494,337 |
Equipment, furnishings and leasehold improvements, net | 2,709,013 | 2,817,276 |
Depreciation Expense | 332,617 | 339,318 |
Buildings | ' | ' |
Equipment, furnishings and leasehold improvements | 2,250,000 | 2,250,000 |
Laboratory Equipment | ' | ' |
Equipment, furnishings and leasehold improvements | 708,899 | 651,562 |
Machinery | ' | ' |
Equipment, furnishings and leasehold improvements | 646,983 | 639,102 |
Leasehold | ' | ' |
Equipment, furnishings and leasehold improvements | 228,860 | 207,979 |
Tradeshow and Demonstration Equipment | ' | ' |
Equipment, furnishings and leasehold improvements | 999,758 | 908,819 |
Furniture | ' | ' |
Equipment, furnishings and leasehold improvements | $674,489 | $654,151 |
Accrued_Expenses_Tables_Accrue
Accrued Expenses (Tables) - Accrued expenses (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Payables and Accruals [Abstract] | ' | ' |
Accrued compensation | $201,676 | $121,275 |
Estimated warranty costs | 30,900 | 27,750 |
Accrued commissions | 156,964 | 232,920 |
Professional fees | 44,692 | 33,000 |
Other accrued expenses | 130,889 | 62,082 |
Total accrued expenses | $565,121 | $477,027 |
Revolving_Line_of_Credit_Detai
Revolving Line of Credit (Details Narrative) (Revolving Line of Credit, USD $) | 12 Months Ended |
Feb. 28, 2014 | |
Revolving Line of Credit | ' |
Line of credit description | 'The Company has a $750,000 revolving line of credit at prime which was 3.25% at February 28, 2013. The line of credit is collateralized by all of the assets of the Company, except for the land and buildings. The line of credit is payable on demand and must be retired for a 30 day period once annually. If the Company fails to perform the 30 day annual pay down or if the bank elects to terminate the credit line, the bank may at its option convert the outstanding balance to a 36 month term note with payments including interest in 36 equal installments. |
Outstanding balance | $0 |
Unused credit line | $750,000 |
Long_Term_Debt_Tables_Longterm
Long Term Debt (Tables) - Long-term debt (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Long-term debt | $1,670,524 | $2,113,235 |
Due within one year | 191,466 | 125,999 |
Due after one year | 1,479,058 | 1,987,236 |
Note payable, individual, collateralized by land and buildings, payable by monthly installments of principal and interest of $14,446 through January 2031. Interest rate 5.5%. 20 year term. | ' | ' |
Long-term debt | 0 | 1,972,617 |
Equipment loan, bank, collateralized by related office equipment, payable by monthly installments of principal and interest of $5,158 through June 2015. Interest rate 2.12%. 48 month term. | ' | ' |
Long-term debt | 81,164 | 140,618 |
Note payable, bank, collateralized by land and buildings, payable in monthly installments of principal and interest of $16,358 through January 2024. Interest rate 4.15%. 10 year term. | ' | ' |
Long-term debt | $1,589,360 | $0 |
Long_Term_Debt_Longterm_debt_p
Long Term Debt - Long-term debt payables (Details) (USD $) | Feb. 28, 2014 |
Fiscal Year ending February 28, | ' |
2015 | $191,466 |
2016 | 158,014 |
2017 | 143,388 |
2018 | 149,698 |
2019 | 156,119 |
Thereafter | $871,839 |
Bank_Guarantees_Details_Narrat
Bank Guarantees (Details Narrative) (Performance Guarantee, USD $) | 12 Months Ended |
Feb. 28, 2014 | |
Performance Guarantee | ' |
Cash on deposit with a foreign bank utilized to collateralize guarantees issued by the bank | $26,729 |
Expiration of bank guarantees | 'The guarantees expire at various dates in 2014. |
Income_Taxes_Income_tax_reconc
Income Taxes - Income tax reconciliation (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Income tax (benefit) reconciliation: | ' | ' |
Expected federal income tax | $208,088 | $47,155 |
State tax, net of federal | 12,100 | 6,736 |
Permanent timing difference | -6,771 | 19,409 |
State tax credits | ' | 76,137 |
Utilization of net operating loss carryforwards and research and development tax credits | 82,927 | 71,569 |
Income tax (benefit) | 130,490 | -74,406 |
Income tax (benefit) composition: | ' | ' |
Current federal and state income taxes | 130,490 | 5,585 |
Recognition of deferred tax assets | ' | -3,854 |
State tax credits | ' | 76,137 |
Income tax (benefit) | $130,490 | ($74,406) |
Income_Taxes_Net_deferred_tax_
Income Taxes - Net deferred tax asset components (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Inventory | $103,000 | $129,000 |
Allowance for accounts receivable | 13,000 | 8,000 |
Accrued expenses and other | 59,000 | 111,000 |
Research tax credits | 117,000 | 100,000 |
Deferred tax asset | 292,000 | 348,000 |
Deferred tax liability | 202,000 | 258,000 |
Net deferred tax asset | $90,000 | $90,000 |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Maximum U.S. Federal income tax rate | 34.00% | ' |
Net operating loss carryforwards | $0 | $0 |
Research and development tax credits | $117,000 | $100,000 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of stock options (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Shares | ' | ' | ' |
Granted (in shares) | 135,500 | 1,105,718 | ' |
Exercised (in shares) | -501,645 | -47,566 | ' |
Cancelled (in shares) | -10,000 | -1,053,894 | ' |
Outstanding at end of period (in shares) | 946,573 | 1,322,718 | 1,318,460 |
Exercisable at end of period (in shares) | 435,714 | 549,425 | 1,204,660 |
Weighted Average Exercise Price | ' | ' | ' |
Granted (in dollars per share) | $1.06 | $0.60 | ' |
Exercised (in dollars per share) | ($0.60) | ($0.79) | ' |
Cancelled (in dollars per share) | ($1.11) | ($0.93) | ' |
Outstanding at end of period (in dollars per share) | $0.76 | $0.67 | $1.10 |
Exercisable at end of period (in dollars per share) | $0.82 | $0.77 | $1.11 |
Fair value vested at end of period (in dollars per share) | $0.41 | $0.39 | $0.36 |
Stockholders_Equity_Stock_opti
Stockholders' Equity - Stock option grants (Details) (USD $) | 12 Months Ended | 13 Months Ended | 12 Months Ended | |||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Mar. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | |
Exercise Price Exceeds Marke tPrice | Exercise Price Equals Market Price | Exercise Price Equals Market Price | Exercise Price is Less than Market Price | |||
Shares | ' | ' | ' | ' | 135,500 | ' |
Weighted Average Exercise Price | $1.06 | $0.60 | ' | $1.06 | ' | ' |
Weighted Average Fair Value | ' | ' | ' | $0.50 | ' | ' |
Stockholders_Equity_Stock_opti1
Stockholders' Equity - Stock options outstanding and exercisable (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 |
Stock Options | Stock Options | Stock Options | Stock Options | ||||
Exercise Price Range $.42 to $.50 | Exercise Price Range $.51 to $1.00 | Exercise Price Range $1.01 to $1.95 | |||||
Range of exercise prices, low end (in dollars per share) | ' | ' | ' | ' | $0.42 | $0.51 | $1.01 |
Range of exercise prices, high end (in dollars per share) | ' | ' | ' | ' | $0.50 | $1 | $1.95 |
Number Outstanding | 946,573 | 1,322,718 | 1,318,460 | 946,573 | 63,500 | 630,573 | 252,500 |
Weighted-Average Remaining Life in Years | ' | ' | ' | ' | '7 years 8 months 27 days | '8 years 3 months 18 days | '6 years 18 days |
Weighted Average Exercise Price | $0.82 | $0.77 | $1.11 | ' | $0.47 | $0.63 | $1.16 |
Number Exercisable | 435,714 | 549,425 | 1,204,660 | 435,714 | 36,000 | 275,214 | 124,500 |
Stockholders_Equity_Details_Na
Stockholders' Equity (Details Narrative) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Nov. 08, 2012 | Nov. 08, 2012 | Nov. 08, 2012 | Nov. 08, 2012 | Nov. 08, 2012 | Nov. 08, 2012 | Feb. 28, 2014 | |
Fiscal Year 2014 Grant to Employees | Fiscal Year 2014 Grant to Employees | Fiscal Year 2014 Grant to Employees | Fiscal Year 2013 Grant to Officers | Fiscal Year 2013 Grant to Officers | Fiscal Year 2013 Grant to Employees | 2013 Stock Incentive Plan | 2003 Stock Incentive Plan | 2003 Stock Incentive Plan | 2003 Stock Incentive Plan | 2003 Stock Incentive Plan | Surrendered and Cancelled Stock Options | Surrendered and Cancelled Stock Options | Surrendered and Cancelled Stock Options | Fiscal Year 2013 Grant to Officers | |||
Minimum | Maximum | Minimum | Maximum | November 8, 2012 Grant to Officers | November 8, 2012 Grant to Directors | Grant on November 8, 2012 | Minimum | Maximum | Average Strike Price | ||||||||
Stock options shares available for purchase | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 135,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Description of option prices | ' | ' | ' | ' | ' | ' | ' | ' | 'Under the 2013 Stock Incentive Plan, option prices must be at least 100% of the fair market value of the common stock at time of grant. For qualified employees, except under certain circumstances specified in the plan or unless otherwise specified at the discretion of the Board of Directors, no option may be exercised prior to one year after date of grant, with the balance becoming exercisable in cumulative installments over a three year period during the term of the option, and terminating at a stipulated period of time after an employee's termination of employment. | 'Under the 2003 Stock Incentive Plan, as amended ("2003 Plan"), until May 2013, options were available to be granted to officers, directors, consultants and employees of the Company and its subsidiaries to purchase up to 1,500,000 of the Company's common shares. As of February 28, 2014, there were 811,073 options outstanding under the 2003 Plan, under which no additional options may be granted. | ' | ' | ' | ' | ' | ' | ' |
Stock option shares granted | ' | ' | 135,500 | ' | ' | ' | ' | 10,000 | ' | ' | 810,718 | 140,000 | ' | ' | ' | ' | 115,000 |
Stock option exercise price | $1.06 | $0.60 | ' | $1.05 | $1.20 | $0.48 | $0.61 | $0.48 | ' | ' | ' | ' | $0.61 | ' | ' | $0.95 | ' |
Option vesting description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '33.33% on the date of grant, 33.33% one year from the date of grant and 33.33% two years from the date of grant\ | ' | ' | ' | ' |
Expiration of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8-Nov-22 | 1-Jan-14 | 31-Dec-21 | ' | ' |
Iintrinsic value of the Company's options exercised | $157,427 | $4,891 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of the Company's outstanding options | $369,659 | $459,966 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_The_denomin
Earnings Per Share - The denominator for the calculation of diluted earnings per share (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Earnings Per Share Tables | ' | ' |
Numerator for basic and diluted earnings per share | $484,474 | $132,251 |
Denominator for basic earnings per share-weighted average shares | 14,541,869 | 14,484,200 |
Stock options for employees, directors and outside consultants | 38,296 | ' |
Denominator for diluted earnings per share | 14,580,165 | 14,484,200 |
Basic Earnings Per Share | $0.03 | $0.01 |
Diluted Earnings Per Share | $0.03 | $0.01 |
Significant_Customers_and_Fore2
Significant Customers and Foreign Sales - Export sales to customers located outside the United States (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Export sales to customers located outside the United States | ' | ' |
Foreign sales revenue | $6,447,000 | $5,157,000 |
Significant customers and foreign sales | ' | ' |
Percent of total sales | 63.00% | 54.00% |
One Customer | ' | ' |
Significant customers and foreign sales | ' | ' |
Percent of total sales | 1.00% | ' |
Western Europe | ' | ' |
Export sales to customers located outside the United States | ' | ' |
Foreign sales revenue | 1,817,000 | 1,261,000 |
Far East | ' | ' |
Export sales to customers located outside the United States | ' | ' |
Foreign sales revenue | 3,328,000 | 3,399,000 |
Other | ' | ' |
Export sales to customers located outside the United States | ' | ' |
Foreign sales revenue | $1,302,000 | $497,000 |