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Income Taxes

12 Months Ended

Feb. 28, 2015

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, 2015			February 28, 2014
Expected federal income tax	$	288,945		$	208,088
State tax, net of federal		31,371			12,100
Permanent timing difference		54,218			(6,771	)
Research and development tax credits		(155,110	)		(82,927	)
Income tax	$	219,424		$	130,490

The net deferred tax asset is comprised of the following:

	February 28,			February 28,
	2015			2014
Inventory	$	127,000		$	103,000
Allowance for accounts receivable		17,000			13,000
Accrued expenses and other		97,000			59,000
Research tax credits		59,000			117,000
Deferred tax asset		300,000			292,000
Deferred tax liability		(210,000	)		(202,000	)
Net deferred tax asset	$	90,000		$	90,000

At February 28, 2015 and 2014, the Company had no remaining net operating loss carryforwards available. At February 28, 2015 and 2014, the Company has $59,000 and $117,000 of research and development tax credits, respectively, being carried forward.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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