Cover
Cover - shares | 3 Months Ended | |
Nov. 30, 2021 | Jan. 12, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Nov. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --02-28 | |
Entity File Number | 000-16035 | |
Entity Registrant Name | Sono Tek Corp | |
Entity Central Index Key | 0000806172 | |
Entity Tax Identification Number | 14-1568099 | |
Entity Incorporation, State or Country Code | NY | |
Entity Address, Address Line One | 2012 Rt. 9W | |
Entity Address, City or Town | Milton | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 12547 | |
City Area Code | (845) | |
Local Phone Number | 795-2020 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | SOTK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,719,720 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 6,833,804 | $ 4,084,078 |
Marketable securities | 3,349,962 | 4,563,470 |
Accounts receivable (less allowance of $56,123) | 1,563,460 | 1,757,802 |
Inventories, net | 2,799,763 | 2,611,106 |
Prepaid expenses and other current assets | 139,856 | 151,316 |
Total current assets | 14,686,845 | 13,167,772 |
Land | 250,000 | 250,000 |
Buildings, net | 1,501,369 | 1,575,135 |
Equipment, furnishings and building improvements, net | 1,114,606 | 1,075,190 |
Intangible assets, net | 80,875 | 95,456 |
Deferred tax asset | 236,120 | 259,838 |
TOTAL ASSETS | 17,869,815 | 16,423,391 |
Current Liabilities: | ||
Accounts payable | 876,283 | 1,294,483 |
Accrued expenses | 1,733,451 | 1,750,916 |
Customer deposits | 1,895,671 | 1,166,541 |
Income taxes payable | 142,517 | 53,567 |
Total current liabilities | 4,647,922 | 4,265,507 |
Deferred tax liability | 183,011 | 205,562 |
Long term debt, less current maturities | 1,001,640 | |
Total liabilities | 4,830,933 | 5,472,709 |
Common stock, $.01 par value; 25,000,000 shares authorized, 15,699,719 and 15,452,656 shares issued and outstanding, respectively | 156,997 | 154,527 |
Additional paid-in capital | 9,163,979 | 9,064,994 |
Accumulated earnings | 3,717,906 | 1,731,161 |
Total stockholders’ equity | 13,038,882 | 10,950,682 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 17,869,815 | $ 16,423,391 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2021 | Feb. 28, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 15,699,719 | 15,452,656 |
Common stock, shares outstanding | 15,699,719 | 15,452,656 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Income Statement [Abstract] | ||||
Net Sales | $ 4,419,401 | $ 3,827,142 | $ 12,134,336 | $ 10,736,327 |
Cost of Goods Sold | 2,260,874 | 1,896,516 | 6,077,645 | 5,624,002 |
Gross Profit | 2,158,527 | 1,930,626 | 6,056,691 | 5,112,325 |
Operating Expenses | ||||
Research and product development costs | 417,300 | 406,799 | 1,243,513 | 1,241,739 |
Marketing and selling expenses | 845,362 | 765,969 | 2,349,607 | 2,154,956 |
General and administrative costs | 405,280 | 311,130 | 1,181,502 | 883,384 |
Total Operating Expenses | 1,667,942 | 1,483,898 | 4,774,622 | 4,280,079 |
Operating Income | 490,585 | 446,728 | 1,282,069 | 832,246 |
Interest Expense | (6,245) | (23,949) | ||
Interest and Dividend Income | 2,367 | 1,470 | 13,367 | 26,953 |
Other Income | 10,824 | 30,343 | ||
Paycheck Protection Program Loan Forgiveness | 1,005,372 | |||
Income Before Income Taxes | 492,952 | 452,777 | 2,300,808 | 865,593 |
Income Tax Expense | 116,783 | 132,299 | 314,063 | 199,424 |
Net Income | $ 376,169 | $ 320,478 | $ 1,986,745 | $ 666,169 |
Basic Earnings Per Share | $ 0.02 | $ 0.02 | $ 0.13 | $ 0.04 |
Diluted Earnings Per Share | $ 0.02 | $ 0.02 | $ 0.13 | $ 0.04 |
Weighted Average Shares - Basic | 15,622,721 | 15,440,673 | 15,541,247 | 15,420,787 |
Weighted Average Shares - Diluted | 15,654,936 | 15,583,089 | 15,572,424 | 15,547,604 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Earnings | Total |
Beginning balance, value at Feb. 29, 2020 | $ 153,482 | $ 9,018,406 | $ 610,519 | $ 9,782,407 |
Shares, Outstanding at Feb. 29, 2020 | 15,348,180 | |||
Cashless exercise of stock options | $ 748 | (748) | ||
Cashless exercise of stock options (shares) | 74,805 | |||
Stock based compensation expense | 8,097 | 8,097 | ||
Net income | 167,928 | 167,928 | ||
Ending balance, value at May. 31, 2020 | $ 154,230 | 9,025,755 | 778,447 | 9,958,432 |
Shares, Outstanding at May. 31, 2020 | 15,422,985 | |||
Beginning balance, value at Feb. 29, 2020 | $ 153,482 | 9,018,406 | 610,519 | 9,782,407 |
Shares, Outstanding at Feb. 29, 2020 | 15,348,180 | |||
Net income | 666,169 | |||
Proceeds from exercise of stock options | ||||
Ending balance, value at Nov. 30, 2020 | $ 154,456 | 9,044,405 | 1,276,688 | 10,475,549 |
Shares, Outstanding at Nov. 30, 2020 | 15,445,594 | |||
Beginning balance, value at May. 31, 2020 | $ 154,230 | 9,025,755 | 778,447 | 9,958,432 |
Shares, Outstanding at May. 31, 2020 | 15,422,985 | |||
Cashless exercise of stock options | $ 130 | (130) | ||
Cashless exercise of stock options (shares) | 12,950 | |||
Stock based compensation expense | 7,906 | 7,906 | ||
Net income | 177,763 | 177,763 | ||
Ending balance, value at Aug. 31, 2020 | $ 154,360 | 9,033,531 | 956,210 | 10,144,101 |
Shares, Outstanding at Aug. 31, 2020 | 15,435,935 | |||
Cashless exercise of stock options | $ 96 | (96) | ||
Cashless exercise of stock options (shares) | 9,659 | |||
Stock based compensation expense | 10,970 | 10,970 | ||
Net income | 320,478 | 320,478 | ||
Ending balance, value at Nov. 30, 2020 | $ 154,456 | 9,044,405 | 1,276,688 | 10,475,549 |
Shares, Outstanding at Nov. 30, 2020 | 15,445,594 | |||
Beginning balance, value at Feb. 28, 2021 | $ 154,527 | 9,064,994 | 1,731,161 | 10,950,682 |
Shares, Outstanding at Feb. 28, 2021 | 15,452,656 | |||
Cashless exercise of stock options | $ 499 | (499) | ||
Cashless exercise of stock options (shares) | 49,901 | |||
Stock based compensation expense | 21,637 | 21,637 | ||
Net income | 1,266,752 | 1,266,752 | ||
Ending balance, value at May. 31, 2021 | $ 155,026 | 9,086,132 | 2,997,913 | 12,239,071 |
Shares, Outstanding at May. 31, 2021 | 15,502,557 | |||
Beginning balance, value at Feb. 28, 2021 | $ 154,527 | 9,064,994 | 1,731,161 | 10,950,682 |
Shares, Outstanding at Feb. 28, 2021 | 15,452,656 | |||
Net income | 1,986,745 | |||
Proceeds from exercise of stock options | 8,775 | |||
Proceeds from exercise of stock options (shares) | 239,563 | |||
Ending balance, value at Nov. 30, 2021 | $ 156,997 | 9,163,979 | 3,717,906 | 13,038,882 |
Shares, Outstanding at Nov. 30, 2021 | 15,699,719 | |||
Beginning balance, value at May. 31, 2021 | $ 155,026 | 9,086,132 | 2,997,913 | 12,239,071 |
Shares, Outstanding at May. 31, 2021 | 15,502,557 | |||
Cashless exercise of stock options | $ 287 | (287) | ||
Cashless exercise of stock options (shares) | 28,728 | |||
Stock based compensation expense | 19,080 | 19,080 | ||
Net income | 343,824 | 343,824 | ||
Ending balance, value at Aug. 31, 2021 | $ 155,313 | 9,104,925 | 3,341,737 | 12,601,975 |
Shares, Outstanding at Aug. 31, 2021 | 15,531,285 | |||
Cashless exercise of stock options | $ 1,609 | (1,609) | ||
Cashless exercise of stock options (shares) | 160,934 | |||
Stock based compensation expense | 51,963 | 51,963 | ||
Net income | 376,169 | 376,169 | ||
Proceeds from exercise of stock options | $ 75 | 8,700 | $ 8,775 | |
Proceeds from exercise of stock options (shares) | 160,934 | 7,500 | ||
Ending balance, value at Nov. 30, 2021 | $ 156,997 | $ 9,163,979 | $ 3,717,906 | $ 13,038,882 |
Shares, Outstanding at Nov. 30, 2021 | 15,699,719 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 1,986,745 | $ 666,169 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 333,729 | 350,043 |
Stock based compensation expense | 92,680 | 26,973 |
Inventory reserve | (3,919) | 54,000 |
Paycheck Protection Program Loan Forgiveness | (1,005,372) | |
Deferred tax expense | 23,718 | (89,304) |
(Decrease) Increase in: | ||
Accounts receivable | 194,342 | (744,282) |
Inventories | (184,738) | (119,211) |
Prepaid expenses and other current assets | 11,460 | 27,071 |
Accounts payable and accrued expenses | (431,934) | 193,317 |
Customer deposits | 729,130 | 133,423 |
Income taxes payable | 66,400 | 214,725 |
Net Cash Provided by Operating Activities | 1,812,241 | 712,924 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of equipment, furnishings and leasehold improvements | (284,798) | (327,180) |
Capital expenditure grant proceeds | 100,000 | |
Sale of marketable securities | 1,213,508 | 993,724 |
Net Cash Provided by Investing Activities | 928,710 | 766,544 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 8,775 | |
Proceeds from note payable | 1,001,640 | |
Repayment of long term debt | (126,650) | |
Net Cash Provided by Financing Activities | 8,775 | 874,990 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,749,726 | 2,354,458 |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 4,084,078 | 3,659,551 |
End of period | 6,833,804 | 6,014,009 |
SUPPLEMENTAL CASH FLOW DISCLOSURE: | ||
Interest paid | 20,573 | |
Income Taxes Paid | $ 224,002 | $ 74,004 |
NOTE 1_ BUSINESS DESCRIPTION
NOTE 1: BUSINESS DESCRIPTION | 3 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
NOTE 1: BUSINESS DESCRIPTION | NOTE 1: BUSINESS DESCRIPTION Sono-Tek Corporation (the “Company”, “Sono-Tek”, “We” or “Our”) was incorporated in New York on March 21, 1975. We are the world leader in the design and manufacture of ultrasonic coating systems for applying precise, thin film coatings to add functional properties, protect or strengthen surfaces on parts and components for the microelectronics/electronics, alternative energy, medical, industrial and emerging research & development/other markets. We design and manufacture custom-engineered ultrasonic coating systems incorporating our patented technology, in combination with strong applications engineering knowledge, to assist our customers in achieving their desired coating solutions. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information with the instructions for Form 10-Q and Article 8 of Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation (consisting of normal recurring adjustments) have been included. The results for the interim periods are not necessarily indicative of what the results will be for the fiscal year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited Consolidated Financial Statements as of and for the fiscal year ended February 28, 2021 (“fiscal year 2021”) contained in the Company’s 2021 Annual Report on Form 10-K filed with the SEC on May 28, 2021. The Company’s current fiscal year ends on February 28, 2022 (“fiscal 2022”). |
NOTE 2_ SIGNIFICANT ACCOUNTING
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Accounts Receivable, net Cash and Cash Equivalents Consolidation Earnings Per Share Equipment, Furnishings and Leasehold Improvements straight-line method three to five years Fair Value of Financial Instruments Fair Value Measurement The carrying amounts of financial instruments reported in the accompanying unaudited condensed consolidated financial statements for current assets and current liabilities approximate the fair value because of the immediate or short-term maturities of the financial instruments. The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. The fair values of financial assets of the Company were determined using the following categories at November 30, 2021 and February 28, 2021, respectively: Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Level 1 Level 2 Marketable Securities – November 30, 2021 $ 3,349,962 $ — $ — $ 3,349,962 Marketable Securities – February 28, 2021 $ 4,261,927 $ 301,543 $ — $ 4,563,470 Marketable Securities include mutual funds, certificates of deposit and US Treasury securities, totaling $ 3,349,962 4,563,470 Income Taxes Intangible Assets seventeen twelve 189,848 181,922 11,000 Inventories Land and Buildings Long-Lived Assets Management Estimates New Accounting Pronouncements Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes In June 2016, the FASB issued ASU 2016-13 - Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments. Codification Improvements to Topic 326, Financial Instruments – Credit Losses, have been released in November 2018 (2018-19), November 2019 (2019-10 and 2019-11) and a January 2020 Update (2020-02) that provided additional guidance on this Topic. This guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For SEC filers meeting certain criteria, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For SEC filers that meet the criteria of a smaller reporting company (including this Company) and for non-SEC registrant public companies and other organizations, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently in the process of its analysis of the impact of this guidance on its consolidated financial statements and does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. Other than Accounting Standards Update (“ASU”) 2019-12 and ASU 2016-13 discussed above, 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, is not expected to have an impact on the Company. Product Warranty Research and Product Development Expenses - Revenue Recognition Shipping and Handling Costs Stock-Based Compensation ASC 718 requires the recognition of the fair value of stock compensation expense on a straight line basis over the requisite service period, based on the terms of the award in net income. The Company accounts for forfeitures as they occur. Uncertainties |
NOTE 3_ REVENUE RECOGNITION
NOTE 3: REVENUE RECOGNITION | 3 Months Ended |
Nov. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
NOTE 3: REVENUE RECOGNITION | NOTE 3: REVENUE RECOGNITION A majority of the Company’s sales revenue is derived primarily from short term contracts with customers which are primarily in effect for less than twelve months. Sales revenue from manufactured equipment transferred at a single point in time accounts for a majority of the Company’s revenue. Sales revenue is recognized when control of the Company’s manufactured equipment is transferred to its customers, in an amount that reflects the consideration the Company expects to receive based upon the agreed transaction price. The Company’s performance obligations are satisfied when its customers take control of the purchased equipment, which is based on the contract terms. Based on prior experience, the Company reasonably estimates its sales returns and warranty reserves. Sales are presented net of discounts and allowances. Discounts and allowances are determined when a sale is negotiated. The Company does not grant its customers or independent representatives, the ability to return equipment nor does it grant price adjustments after a sale is complete. The Company does not capitalize any sales commission costs related to the acquisition of a contract. All commissions related to a performance obligation that are satisfied at a point in time are expensed when the customer takes control of the purchased equipment. The Company applies the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one-year or less. The Company applies the transition practical expedient in paragraph ASC 606-10-65-1(f)(3) and does not disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize that amount as revenue. At November 30, 2021, the Company had received $ 1,896,000 738,000 the Company was utilizing $738,000 of its available credit line to collateralize these letters of credit At February 28, 2021, the Company had received $ 1,167,000 459,000 The Company’s sales revenue by product line is as follows: Revenue Recognition - Sales Revenue by Product Line Three Months Ended Nine Months Ended 2021 % of total 2020 % of total 2021 % of total 2020 % of total Fluxing Systems $ 104,000 2 $ 242,000 6 $ 579,000 5 $ 680,000 6 Integrated Coating Systems 60,000 1 1,071,000 28 780,000 6 2,920,000 27 Multi-Axis Coating Systems 2,721,000 62 1,249,000 33 6,692,000 55 4,147,000 39 OEM Systems 637,000 15 523,000 14 1,808,000 15 1,177,000 11 Other 897,000 20 742,000 19 2,275,000 19 1,812,000 17 TOTAL $ 4,419,000 $ 3,827,000 $ 12,134,000 $ 10,736,000 |
NOTE 4_ INVENTORIES
NOTE 4: INVENTORIES | 3 Months Ended |
Nov. 30, 2021 | |
Inventory Disclosure [Abstract] | |
NOTE 4: INVENTORIES | NOTE 4: INVENTORIES Inventories consist of the following: Inventories - Schedule of Inventory, Current November 30, February 28, 2021 2021 Raw materials and subassemblies $ 1,286,026 $ 1,081,591 Finished goods 839,612 786,785 Work in process 954,486 1,027,010 Total 3,080,124 2,895,386 Less: Allowance (280,361 ) (284,280 ) Net inventories $ 2,799,763 $ 2,611,106 |
NOTE 5_ STOCK OPTIONS
NOTE 5: STOCK OPTIONS | 3 Months Ended |
Nov. 30, 2021 | |
Equity [Abstract] | |
NOTE 5: STOCK OPTIONS | NOTE 5: STOCK OPTIONS Under the 2013 Stock Incentive Plan ("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 ten years 192,505 53,875 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 10,000 During the three months ended November 30, 2021, 256,750 160,934 358,584 239,563 |
NOTE 6_ STOCK BASED COMPENSATIO
NOTE 6: STOCK BASED COMPENSATION | 3 Months Ended |
Nov. 30, 2021 | |
Equity [Abstract] | |
NOTE 6: STOCK BASED COMPENSATION | NOTE 6: 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. During the nine months ended November 30, 2021, the Company granted options to acquire 41,630 3.19 6.05 30,250 3.19 three years ten years 3.65 The weighted-average fair value of options are estimated on the date of grant using the Black-Scholes options-pricing model. The weighted-average Black-Scholes assumptions are as follows: Weighted-average Black-Scholes assumptions Nine Months Ended Expected Life 5 8 Risk free interest rate 0.78 1.47 Expected volatility 50.73 52.45 Expected dividend yield 0 Total compensation related to non-vested options not yet recognized as of November 30, 2021 was $ 219,000 2.4 At November 30, 2021, the intrinsic value of the outstanding stock options was approximately $ 563,000 For the three months ended November 30, 2021 and 2020, the Company recorded stock-based compensation expense of approximately $ 52,000 11,000 93,000 27,000 |
NOTE 7_ EARNINGS PER SHARE
NOTE 7: EARNINGS PER SHARE | 3 Months Ended |
Nov. 30, 2021 | |
Earnings Per Share [Abstract] | |
NOTE 7: EARNINGS PER SHARE | NOTE 7: EARNINGS PER SHARE The denominators for the calculation of basic and diluted earnings per share at November 30, 2021 and 2020 are calculated as follows: Earnings Per Share - Computation of basic and diluted earnings per share Nine Months Ended Three Months Ended 2021 2020 2021 2020 Numerator for basic and diluted earnings per share $ 1,986,745 $ 666,169 $ 376,169 $ 320,478 Denominator for basic earnings per share – weighted average 15,541,247 15,420,787 15,622,721 15,440,673 Effects of dilutive securities Stock options for employees and directors 31,177 126,817 32,215 142,416 Denominator for diluted earnings per share 15,572,424 15,547,604 15,654,936 15,583,089 Basic earnings per share $ 0.13 $ 0.04 $ 0.02 $ 0.02 Diluted earnings per share $ 0.13 $ 0.04 $ 0.02 $ 0.02 |
NOTE 8_ LONG TERM DEBT
NOTE 8: LONG TERM DEBT | 3 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
NOTE 8: LONG TERM DEBT | NOTE 8: LONG TERM DEBT Long-term debt consists of the following: Long Term Debt - Schedule of Long-Term Debt November 30, February 28, 2021 2021 Note Payable, bank, unsecured, Paycheck Protection Program funding, initially scheduled to be payable in monthly installments of principal and interest of $ 56,370 1 2 1,005,372 — 1,001,640 Total long-term debt $ — $ 1,001,640 |
NOTE 9_ REVOLVING LINE OF CREDI
NOTE 9: REVOLVING LINE OF CREDIT | 3 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
NOTE 9: REVOLVING LINE OF CREDIT | NOTE 9: REVOLVING LINE OF CREDIT The Company has a $ 1,500,000 3.25 The revolving credit line is collateralized by the Company’s accounts receivable and inventory As of November 30, 2021, $ 738,000 762,000 |
NOTE 10_ CUSTOMER CONCENTRATION
NOTE 10: CUSTOMER CONCENTRATIONS AND FOREIGN SALES | 3 Months Ended |
Nov. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
NOTE 10: CUSTOMER CONCENTRATIONS AND FOREIGN SALES | NOTE 10: CUSTOMER CONCENTRATIONS AND FOREIGN SALES Export sales to customers located outside the United States and Canada were approximately as follows: Customer Concentrations and Foreign Sales - Schedule of Customer Concentrations and Foreign Sales Nine Months Ended Three Months Ended 2021 2020 2021 2020 Asia Pacific (APAC) Asia Pacific (APAC) $ 4,754,000 $ 3,416,000 $ 1,901,000 $ 1,039,000 Europe, Middle East, Asia (EMEA) Europe, Middle East, Asia (EMEA) 2,723,000 2,414,000 1,287,000 1,216,000 Latin America Latin America 888,000 830,000 243,000 407,000 $ 8,365,000 $ 6,660,000 $ 3,431,000 $ 2,662,000 In the first nine months of fiscal 2022 and fiscal 2021, sales to foreign customers accounted for approximately $ 8,365,000 6,660,000 69 62 During the third quarter of fiscal 2022 and fiscal 2021, sales to foreign customers accounted for approximately $ 3,431,000 2,662,000 78 70 The Company had three customers which accounted for 27 48 60 The Company had four customers which accounted for 30 30 64 |
NOTE 2_ SIGNIFICANT ACCOUNTIN_2
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Consolidation | Consolidation |
Earnings Per Share | Earnings Per Share |
Equipment, Furnishings and Leasehold Improvements | Equipment, Furnishings and Leasehold Improvements straight-line method three to five years |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair Value Measurement The carrying amounts of financial instruments reported in the accompanying unaudited condensed consolidated financial statements for current assets and current liabilities approximate the fair value because of the immediate or short-term maturities of the financial instruments. The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. The fair values of financial assets of the Company were determined using the following categories at November 30, 2021 and February 28, 2021, respectively: Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Level 1 Level 2 Marketable Securities – November 30, 2021 $ 3,349,962 $ — $ — $ 3,349,962 Marketable Securities – February 28, 2021 $ 4,261,927 $ 301,543 $ — $ 4,563,470 Marketable Securities include mutual funds, certificates of deposit and US Treasury securities, totaling $ 3,349,962 4,563,470 |
Income Taxes | Income Taxes |
Intangible Assets | Intangible Assets seventeen twelve 189,848 181,922 11,000 |
Inventories | Inventories |
Land and Buildings | Land and Buildings |
Long-Lived Assets | Long-Lived Assets |
Management Estimates | Management Estimates |
New Accounting Pronouncements | New Accounting Pronouncements Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes In June 2016, the FASB issued ASU 2016-13 - Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments. Codification Improvements to Topic 326, Financial Instruments – Credit Losses, have been released in November 2018 (2018-19), November 2019 (2019-10 and 2019-11) and a January 2020 Update (2020-02) that provided additional guidance on this Topic. This guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For SEC filers meeting certain criteria, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For SEC filers that meet the criteria of a smaller reporting company (including this Company) and for non-SEC registrant public companies and other organizations, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently in the process of its analysis of the impact of this guidance on its consolidated financial statements and does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. Other than Accounting Standards Update (“ASU”) 2019-12 and ASU 2016-13 discussed above, 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, is not expected to have an impact on the Company. |
Product Warranty | Product Warranty |
Research and Product Development Expenses | Research and Product Development Expenses - |
Revenue Recognition | Revenue Recognition |
Shipping and Handling Costs | Shipping and Handling Costs |
Stock-Based Compensation | Stock-Based Compensation ASC 718 requires the recognition of the fair value of stock compensation expense on a straight line basis over the requisite service period, based on the terms of the award in net income. The Company accounts for forfeitures as they occur. |
Uncertainties | Uncertainties |
NOTE 2_ SIGNIFICANT ACCOUNTIN_3
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies - Fair values of financial assets of the Company | The fair values of financial assets of the Company were determined using the following categories at November 30, 2021 and February 28, 2021, respectively: Significant Accounting Policies - Fair values of financial assets of the Company Level 1 Level 2 Level 3 Total Level 1 Level 2 Marketable Securities – November 30, 2021 $ 3,349,962 $ — $ — $ 3,349,962 Marketable Securities – February 28, 2021 $ 4,261,927 $ 301,543 $ — $ 4,563,470 |
NOTE 3_ REVENUE RECOGNITION (Ta
NOTE 3: REVENUE RECOGNITION (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition - Sales Revenue by Product Line | The Company’s sales revenue by product line is as follows: Revenue Recognition - Sales Revenue by Product Line Three Months Ended Nine Months Ended 2021 % of total 2020 % of total 2021 % of total 2020 % of total Fluxing Systems $ 104,000 2 $ 242,000 6 $ 579,000 5 $ 680,000 6 Integrated Coating Systems 60,000 1 1,071,000 28 780,000 6 2,920,000 27 Multi-Axis Coating Systems 2,721,000 62 1,249,000 33 6,692,000 55 4,147,000 39 OEM Systems 637,000 15 523,000 14 1,808,000 15 1,177,000 11 Other 897,000 20 742,000 19 2,275,000 19 1,812,000 17 TOTAL $ 4,419,000 $ 3,827,000 $ 12,134,000 $ 10,736,000 |
NOTE 4_ INVENTORIES (Tables)
NOTE 4: INVENTORIES (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories - Schedule of Inventory, Current | Inventories consist of the following: Inventories - Schedule of Inventory, Current November 30, February 28, 2021 2021 Raw materials and subassemblies $ 1,286,026 $ 1,081,591 Finished goods 839,612 786,785 Work in process 954,486 1,027,010 Total 3,080,124 2,895,386 Less: Allowance (280,361 ) (284,280 ) Net inventories $ 2,799,763 $ 2,611,106 |
NOTE 6_ STOCK BASED COMPENSAT_2
NOTE 6: STOCK BASED COMPENSATION (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Equity [Abstract] | |
Weighted-average Black-Scholes assumptions | The weighted-average fair value of options are estimated on the date of grant using the Black-Scholes options-pricing model. The weighted-average Black-Scholes assumptions are as follows: Weighted-average Black-Scholes assumptions Nine Months Ended Expected Life 5 8 Risk free interest rate 0.78 1.47 Expected volatility 50.73 52.45 Expected dividend yield 0 |
NOTE 7_ EARNINGS PER SHARE (Tab
NOTE 7: EARNINGS PER SHARE (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share - Computation of basic and diluted earnings per share | The denominators for the calculation of basic and diluted earnings per share at November 30, 2021 and 2020 are calculated as follows: Earnings Per Share - Computation of basic and diluted earnings per share Nine Months Ended Three Months Ended 2021 2020 2021 2020 Numerator for basic and diluted earnings per share $ 1,986,745 $ 666,169 $ 376,169 $ 320,478 Denominator for basic earnings per share – weighted average 15,541,247 15,420,787 15,622,721 15,440,673 Effects of dilutive securities Stock options for employees and directors 31,177 126,817 32,215 142,416 Denominator for diluted earnings per share 15,572,424 15,547,604 15,654,936 15,583,089 Basic earnings per share $ 0.13 $ 0.04 $ 0.02 $ 0.02 Diluted earnings per share $ 0.13 $ 0.04 $ 0.02 $ 0.02 |
NOTE 8_ LONG TERM DEBT (Tables)
NOTE 8: LONG TERM DEBT (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long Term Debt - Schedule of Long-Term Debt | Long-term debt consists of the following: Long Term Debt - Schedule of Long-Term Debt November 30, February 28, 2021 2021 Note Payable, bank, unsecured, Paycheck Protection Program funding, initially scheduled to be payable in monthly installments of principal and interest of $ 56,370 1 2 1,005,372 — 1,001,640 Total long-term debt $ — $ 1,001,640 |
NOTE 10_ CUSTOMER CONCENTRATI_2
NOTE 10: CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Customer Concentrations and Foreign Sales - Schedule of Customer Concentrations and Foreign Sales | Export sales to customers located outside the United States and Canada were approximately as follows: Customer Concentrations and Foreign Sales - Schedule of Customer Concentrations and Foreign Sales Nine Months Ended Three Months Ended 2021 2020 2021 2020 Asia Pacific (APAC) Asia Pacific (APAC) $ 4,754,000 $ 3,416,000 $ 1,901,000 $ 1,039,000 Europe, Middle East, Asia (EMEA) Europe, Middle East, Asia (EMEA) 2,723,000 2,414,000 1,287,000 1,216,000 Latin America Latin America 888,000 830,000 243,000 407,000 $ 8,365,000 $ 6,660,000 $ 3,431,000 $ 2,662,000 |
Significant Accounting Policies
Significant Accounting Policies - Fair values of financial assets of the Company (Details) - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Marketable Securities | $ 3,349,962 | $ 4,563,470 |
Level 1 | ||
Marketable Securities | 3,349,962 | 4,261,927 |
Level 2 | ||
Marketable Securities | 301,543 | |
Fair Value, Inputs, Level 3 [Member] | ||
Marketable Securities |
NOTE 2_ SIGNIFICANT ACCOUNTIN_4
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 9 Months Ended | |
Nov. 30, 2021 | Feb. 28, 2021 | |
Marketable securities including mutual funds, certificates of deposit and US Treasury securities | $ 3,349,962 | $ 4,563,470 |
Accumulated amortization of patents | 189,848 | $ 181,922 |
Annual amortization expense this year | 11,000 | |
Annual amortization expense year two | 11,000 | |
Annual amortization expense year three | 11,000 | |
Annual amortization expense year four | 11,000 | |
Annual amortization expense year five | $ 11,000 | |
Domestic Patents | ||
Useful life of intangible assets | 17 years | |
Foreign Patents | ||
Useful life of intangible assets | 12 years | |
Equipment and Furnishings | ||
Depreciation methods | straight-line method | |
Estimated useful lives | three to five years |
Revenue Recognition - Sales Rev
Revenue Recognition - Sales Revenue by Product Line (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Sales revenue | $ 4,419,401 | $ 3,827,142 | $ 12,134,336 | $ 10,736,327 |
Fluxing Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales revenue | $ 104,000 | $ 242,000 | $ 579,000 | $ 680,000 |
Sales revenue, percent | 2.00% | 6.00% | 5.00% | 6.00% |
Integrated Coating Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales revenue | $ 60,000 | $ 1,071,000 | $ 780,000 | $ 2,920,000 |
Sales revenue, percent | 1.00% | 28.00% | 6.00% | 27.00% |
Multi-Axis Coating Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales revenue | $ 2,721,000 | $ 1,249,000 | $ 6,692,000 | $ 4,147,000 |
Sales revenue, percent | 62.00% | 33.00% | 55.00% | 39.00% |
OEM Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales revenue | $ 637,000 | $ 523,000 | $ 1,808,000 | $ 1,177,000 |
Sales revenue, percent | 15.00% | 14.00% | 15.00% | 11.00% |
Other Product Line | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales revenue | $ 897,000 | $ 742,000 | $ 2,275,000 | $ 1,812,000 |
Sales revenue, percent | 20.00% | 19.00% | 19.00% | 17.00% |
Total Product Line | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales revenue | $ 4,419,000 | $ 3,827,000 | $ 12,134,000 | $ 10,736,000 |
NOTE 3_ REVENUE RECOGNITION (De
NOTE 3: REVENUE RECOGNITION (Details Narrative) - USD ($) | 9 Months Ended | |
Nov. 30, 2021 | Feb. 28, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Cash deposits | $ 1,896,000 | $ 1,167,000 |
Letter of credit | $ 738,000 | |
Letter of credit, collateral description | the Company was utilizing $738,000 of its available credit line to collateralize these letters of credit | |
Revenue recognized | $ 459,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Current (Details) - USD ($) | Nov. 30, 2021 | Feb. 28, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and subassemblies | $ 1,286,026 | $ 1,081,591 |
Finished goods | 839,612 | 786,785 |
Work in process | 954,486 | 1,027,010 |
Total | 3,080,124 | 2,895,386 |
Less: Allowance | (280,361) | (284,280) |
Net inventories | $ 2,799,763 | $ 2,611,106 |
NOTE 5_ STOCK OPTIONS (Details
NOTE 5: STOCK OPTIONS (Details Narrative) | 3 Months Ended | 9 Months Ended |
Nov. 30, 2021shares | Nov. 30, 2021shares | |
Exercise of stock options | 7,500 | |
Common Stock [Member] | ||
Options exercised, net cashless basis | 256,750 | 358,584 |
Exercise of stock options | 160,934 | 239,563 |
2013 Stock Incentive Plan ("2013 Plan") | ||
Stock options shares available for grants | 2,500,000 | 2,500,000 |
Options, expiration period | 10 years | |
Stock options, outstanding | 192,505 | 192,505 |
Stock options, vested | 53,875 | |
2003 Stock Incentive Plan ("2003 Plan") | ||
Stock options shares available for grants | 1,500,000 | 1,500,000 |
Stock options, outstanding | 10,000 | 10,000 |
Weighted-average Black-Scholes
Weighted-average Black-Scholes assumptions (Details) | 9 Months Ended |
Nov. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate, minimum | 0.78% |
Risk free interest rate, maximum | 1.47% |
Expected volatility, minimum | 50.73% |
Expected volatility, maximum | 52.45% |
Expected dividend yield | 0.00% |
Share-based Payment Arrangement, Option [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (in years) | 5 years |
Share-based Payment Arrangement, Option [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (in years) | 8 years |
NOTE 6_ STOCK BASED COMPENSAT_3
NOTE 6: STOCK BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted | 32,215 | 142,416 | 31,177 | 126,817 |
Compensation expense yet to be recognized | $ 219,000 | $ 219,000 | ||
Period for compensation expense to be recognized | 2 years 4 months 24 days | |||
Intrinsic value of outstanding stock options | 563,000 | $ 563,000 | ||
Stock-based compensation expense | $ 52,000 | $ 11,000 | $ 93,000 | $ 27,000 |
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted | 41,630 | |||
Share-based Payment Arrangement, Option [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, exercisable price | $ 3.19 | |||
Share-based Payment Arrangement, Option [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, exercisable price | $ 6.05 | |||
Non Employee Directors Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted | 30,250 | |||
Options, exercisable price | $ 3.19 | |||
Employees And Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, vesting period | 3 years | |||
Options, expiration period | 10 years | |||
Weighted average grant date fair value, per share | $ 3.65 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of basic and diluted earnings per share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Numerator for basic and diluted earnings per share | $ 376,169 | $ 320,478 | $ 1,986,745 | $ 666,169 |
Denominator for basic earnings per share – weighted average | 15,622,721 | 15,440,673 | 15,541,247 | 15,420,787 |
Effects of dilutive securities | ||||
Stock options for employees and directors | 32,215 | 142,416 | 31,177 | 126,817 |
Denominator for diluted earnings per share | 15,654,936 | 15,583,089 | 15,572,424 | 15,547,604 |
Basic earnings per share | $ 0.02 | $ 0.02 | $ 0.13 | $ 0.04 |
Diluted earnings per share | $ 0.02 | $ 0.02 | $ 0.13 | $ 0.04 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long-Term Debt (Details) - USD ($) | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Aug. 31, 2021 | Nov. 30, 2021 | Nov. 30, 2020 | Feb. 28, 2021 | |
Debt Instrument [Line Items] | ||||
Gain on forgiveness of debt | $ 1,005,372 | |||
Total long-term debt | $ 1,001,640 | |||
Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Monthly installments of principal and interest | $ 56,370 | |||
Interest rate | 1.00% | |||
Maturity | 2 years | |||
Gain on forgiveness of debt | $ 1,005,372 | |||
Total long-term debt | $ 1,001,640 |
NOTE 9_ REVOLVING LINE OF CRE_2
NOTE 9: REVOLVING LINE OF CREDIT (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Feb. 28, 2021 | |
Line of Credit Facility [Line Items] | ||
Revolving credit line collateral | the Company was utilizing $738,000 of its available credit line to collateralize these letters of credit | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving line of credit | $ 1,500,000 | $ 1,500,000 |
Interest rate | 3.25% | 3.25% |
Revolving credit line collateral | The revolving credit line is collateralized by the Company’s accounts receivable and inventory | The revolving credit line is collateralized by the Company’s accounts receivable and inventory |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit line utilized to collateralize letter of credit issued to customers | $ 738,000 | |
Unused portion of credit line | $ 762,000 |
Customer Concentrations and For
Customer Concentrations and Foreign Sales - Schedule of Customer Concentrations and Foreign Sales (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Total sales | $ 3,431,000 | $ 2,662,000 | $ 8,365,000 | $ 6,660,000 |
Asia Pacific (APAC) | ||||
Total sales | 1,901,000 | 1,039,000 | 4,754,000 | 3,416,000 |
Europe, Middle East, Asia (EMEA) | ||||
Total sales | 1,287,000 | 1,216,000 | 2,723,000 | 2,414,000 |
Latin America | ||||
Total sales | $ 243,000 | $ 407,000 | $ 888,000 | $ 830,000 |
NOTE 10_ CUSTOMER CONCENTRATI_3
NOTE 10: CUSTOMER CONCENTRATIONS AND FOREIGN SALES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | Feb. 28, 2021 | |
Concentration Risk [Line Items] | |||||
Sales revenue | $ 4,419,401 | $ 3,827,142 | $ 12,134,336 | $ 10,736,327 | |
Revenue Benchmark [Member] | Foreign Customers | |||||
Concentration Risk [Line Items] | |||||
Sales revenue | $ 3,431,000 | $ 2,662,000 | $ 8,365,000 | $ 6,660,000 | |
Sales revenue, percent | 78.00% | 70.00% | 69.00% | 62.00% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Outstanding accounts receivables, percent | 30.00% | 27.00% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Six Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Outstanding accounts receivables, percent | 48.00% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Outstanding accounts receivables, percent | 30.00% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Outstanding accounts receivables, percent | 60.00% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Outstanding accounts receivables, percent | 64.00% |