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Income Taxes
 12 Months Ended
Feb. 28, 2017
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,
2017		   February 29,
2016		 
Expected federal income tax  $64,165   $252,321 
State tax, net of federal   10,002    39,059 
Research and development tax credits   (70,827)   (135,904)
Overaccrual of prior year taxes   (63,351)   (67,579)
Deferred tax expense   (5,080)   106,826 
Permanent timing difference   17,795    — 
Other adjustments   27,922    — 
Income tax (Benefit) Expense  $(19,374)  $194,723 

 

The deferred tax asset and liability are comprised of the following:

 

   February 28,   February 29, 
   2017   2016 
Inventory  $253,500   $87,000 
Allowance for accounts receivable   18,100    18,000 
Accrued expenses and other   43,500    50,000 
   Deferred tax asset - Current   315,100    155,000 
           
Research tax credits   143,000    102,000 
Accrued expenses   13,000    15,000 
Intangible asset amortization   (30,000)   (39,000)
Building and leasehold depreciation   (464,000)   (250,000)
           
Deferred tax liability – Long Term  ($338,000)  ($172,000)

 

At February 28, 2017 and February 29, 2016, the Company had $143,000 and $102,000 of research and development tax credits, respectively, being carried forward.