XML 44 R17.htm IDEA: XBRL DOCUMENT
v3.19.1

Income Taxes | 12 Months Ended
--- | ---
Feb. 28, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 11: INCOME TAXES The annual provision (benefit) for income taxes differs from amounts computed by applying the maximum U.S. Federal income tax rate of 21% to pre-tax income as follows:
|  | February 28, |
|  | 2019 |  |  | 2018 |
Expected federal income tax |  | $ | 38,101 |  |  | $ | 156,421 |
State tax, net of federal |  |  | 11,430 |  |  |  | 24,383 |
Research and development tax credits |  |  | (19,588 | ) |  |  | (57,994 | )
Under accrual of prior year state taxes |  |  | — |  |  |  | 40,793 |
Change in recapture tax rate from 39.3% to 27.3% |  |  | — |  |  |  | 15,343 |
Permanent timing difference |  |  | 2,272 |  |  |  | 33,107 |
Change in valuation allowances |  |  | (36,425 | ) |  |  | (159,300 | )
Other adjustments |  |  | 24,057 |  |  |  | 39,103 |
Income tax expense |  | $ | 19,847 |  |  | $ | 91,856 |
The deferred tax asset and liability are comprised of the following:
|  | February 28, |
|  | 2019 |  |  | 2018 |
Deferred tax asset |  |  |  |  |  |  |  |
Inventory |  | $ | 74,000 |  |  | $ | 104,800 |
Allowance for accounts receivable |  |  | 13,000 |  |  |  | 18,100 |
Accrued expenses and other |  |  | 37,000 |  |  |  | 111,200 |
Research tax credits |  |  | 208,000 |  |  |  | 208,300 |
Valuation allowance |  |  | — |  |  |  | (46,000 | )
Deferred tax asset – Long Term |  |  | 332,000 |  |  |  | 396,400 |
Deferred tax liability |  |  |  |  |  |  |  |
Intangible asset amortization |  |  | (25,000 | ) |  |  | (25,000 | )
Building and leasehold depreciation |  |  | (346,000 | ) |  |  | (360,400 | )
Deferred tax liability – Long Term |  | $ | (371,000 | ) |  | $ | (385,400 | )
At February 28, 2019 and 2018, the Company had $208,000 of research and development tax credits being carried forward. Deferred income taxes have been provided by temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. To the extent allowed by GAAP, the Company provides a valuation allowance against the deferred tax assets for amounts when the realization is uncertain. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act establishes new tax laws that affects 2018 and future years, including a reduction in the U.S. federal corporate tax rate to 21%, effective March 1, 2018. Tax returns for the prior three years are subject to examination by the IRS.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration