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INCOME TAXES | 12 Months Ended
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Feb. 28, 2025
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 9: 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, 2025 |  |  | February 29, 2024 |
Expected federal income tax |  | $ | 322,159 |  |  | $ | 366,362 |
State tax, net of federal |  |  | 30,884 |  |  |  | 52,510 |
Research and development tax credits |  |  | (151,529 | ) |  |  | (161,525 | )
Permanent differences: |  |  |  |  |  |  |  |
Non-Deductible equity based compensation |  |  | 52,007 |  |  |  | 42,751 |
Other |  |  | 7,157 |  |  |  | 3,019 |
Income tax expense |  | $ | 260,678 |  |  | $ | 303,117 |
Components of the current and deferred tax expense are as follows: Income taxes - current and deferred tax expense
|  | February 28, 2025 |  |  | February 29, 2024 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 548,743 |  |  | $ | 716,003 |
State |  |  | 78,543 |  |  |  | 123,743 |
Total current income tax |  |  | 627,286 |  |  |  | 839,746 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (318,949 | ) |  |  | (471,396 | )
State |  |  | (47,659 | ) |  |  | (65,233 | )
Total deferred income tax |  |  | (366,608 | ) |  |  | (536,629 | )
Income tax expense |  | $ | 260,678 |  |  | $ | 303,117 |
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. Massachusetts research and development tax credits have been fully reserved as management does not forsee utilizing such tax credits in the foreseeable future. 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 2025. There are no interest and penalties related to uncertain tax positions in 2025. As of February 28, 2025, open years related to the federal and state jurisdictions are 2024, 2023 and 2022. The deferred tax asset and liability are comprised of the following: Income taxes - deferred tax asset and liability components
|  | February 28, 2025 |  |  | February 29, 2024 |
Deferred tax asset |  |  |  |  |  |  |  |
Allowance for inventory |  | $ | 92,000 |  |  | $ | 91,000 |
Allowance for accounts receivable |  |  | 3,000 |  |  |  | 3,000 |
Capitalized R&D expenses – IRC Section 174 |  |  | 1,277,000 |  |  |  | 985,000 |
Accrued expenses and other |  |  | 154,000 |  |  |  | 177,000 |
Research & Development tax credits - Massachusetts |  |  | 383,000 |  |  |  | 303,000 |
Sub-total deferred tax asset |  |  | 1,909,000 |  |  |  | 1,559,000 |
Less valuation allowance – Massachusetts R&D tax credits |  |  | (383,000 | ) |  |  | (303,000 | )
Deferred tax asset – Long Term |  | $ | 1,526,000 |  |  | $ | 1,256,000 |
Deferred tax liability |  |  |  |  |  |  |  |
Building and leasehold depreciation |  |  | (132,000 | ) |  |  | (230,000 | )
Deferred tax liability – Long Term |  | $ | (132,000 | ) |  | $ | (230,000 | )

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