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Income Taxes
 12 Months Ended
Feb. 28, 2013
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 35% to pre-tax income as follows:

 

   February 28,
2013		   February 29,
2012		 
Expected federal income tax  $47,155   $486,150 
State tax, net of federal   6,736    34,725 
Permanent timing difference   19,409    28,319 
State tax credits   (76,137)   (251,196)
Utilization of net operating loss carryforwards and          
research and development tax credits   (71,569)   (502,350)
(Decrease) in valuation allowance   -    (86,167)
Income tax (benefit)  $(74,406)  $(290,519)
           
Current federal and state income taxes  $5,585   $46,844 
Recognition of deferred tax assets   (3,854)   (86,167)
State tax credits   (76,137)   (251,196)
Income tax (benefit)  $(74,406)  $(290,519)

 

The net deferred tax asset is comprised of the following:

 

   February 28,   February 29, 
   2013   2012 
Inventory  $129,000   $126,000 
Allowance for accounts receivable   8,000    10,000 
Accrued expenses and other   111,000    91,000 
Research tax credits   100,000    110,000 
Deferred tax asset   348,000    337,000 
Deferred tax liability   (258,000)   (251,000)
Net deferred tax asset  $90,000   $86,000 

 

At February 28, 2013 and February 29, 2012, the Company had no net operating loss carryforwards remaining but has $100,000 and $110,000 of research and development tax credits, respectively, being carried forward.