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INCOME TAXES | 12 Months Ended
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Feb. 28, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 10: 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:
Income taxes - income tax reconciliation |  |  |  |  |  |  |  |
|  | February 28, 2023 |  |  | February 28, 2022 |
Expected federal income tax |  | $ | 165,882 |  |  | $ | 609,883 |
State tax, net of federal |  |  | 37,204 |  |  |  | 37,894 |
Research and development tax credits |  |  | (127,329 | ) |  |  | (101,573 | )
Permanent differences |  |  | 78,252 |  |  |  | (179,320 | )
Other |  |  | — |  |  |  | (5,253 | )
Income tax expense |  | $ | 154,009 |  |  | $ | 361,631 |
Components of the current and deferred tax expense are as follows:
Income taxes - current and deferred tax expense |  |  |  |  |  |  |  |
|  | February 28, |
|  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 438,263 |  |  | $ | 341,882 |
State |  |  | 83,525 |  |  |  | 38,536 |
Total current income tax |  |  | 521,788 |  |  |  | 380,418 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (321,458 | ) |  |  | (18,787 | )
State |  |  | (46,321 | ) |  |  | — |
Total deferred income tax |  |  | (367,779 | ) |  |  | (18,787 | )
Income tax expense |  | $ | 154,009 |  |  | $ | 361,631 |
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and projections for future taxable income over periods in which the deferred tax assets are deductible. Management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The incorporation of the new tax laws for 2023, requires the Company to capitalize for income tax purposes research and development expenses incurred during the year and for such expenses to be amortized over a five year period. As a result, a deferred tax asset “Capitalized R&D expenses – IRC Section 174” has been recorded. The Company does not have any uncertain tax positions in 2023. There are no interest and penalties related to uncertain tax positions in 2023. As of February 28, 2023, open years related to the federal and state jurisdictions are 2022, 2021 and 2020. The deferred tax asset and liability are comprised of the following:
Income taxes - deferred tax asset and liability components |  |  |  |  |  |  |  |
|  | February 28, 2023 |  |  | February 28, 2022 |
Deferred tax asset |  |  |  |  |  |  |  |
Allowance for inventory |  | $ | 76,000 |  |  | $ | 69,000 |
Allowance for accounts receivable |  |  | 3,000 |  |  |  | 12,000 |
Capitalized R&D expenses – IRC Section 174 |  |  | 441,000 |  |  |  | — |
Accrued expenses and other |  |  | 147,000 |  |  |  | 160,000 |
Deferred tax asset – Long Term |  | $ | 667,000 |  |  | $ | 241,000 |
Deferred tax liability |  |  |  |  |  |  |  |
Building and leasehold depreciation |  |  | (83,000 | ) |  |  | (169,000 | )
Deferred tax liability – Long Term |  | $ | (83,000 | ) |  | $ | (169,000 | )

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- 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://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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