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REVENUE RECOGNITION
 9 Months Ended
Nov. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION

NOTE 3: REVENUE RECOGNITION

 

The Company’s sales revenue is derived primarily from short term contracts with customers, which, are generally in effect for less than twelve months. Sales revenue from manufactured equipment transferred at a single point in time accounts for a majority of the Company’s revenue.

 

Sales revenue is recognized when control of the Company’s manufactured equipment is transferred to its customers, in an amount that reflects the consideration the Company expects to receive based upon the agreed transaction price. The Company’s performance obligations are satisfied when its customers take control of the purchased equipment, which is based on the contract terms. Based on prior experience, the Company reasonably estimates its sales returns and warranty reserves. Sales are presented net of discounts and allowances. Discounts and allowances are determined when a sale is negotiated. The Company does not grant its customers or independent representatives, the ability to return equipment nor does it grant price adjustments after a sale is complete.

 

The Company does not capitalize any sales commission costs related to the acquisition of a contract. All commissions related to a performance obligation that are satisfied at a point in time are expensed when the customer takes control of the purchased equipment.

 

The Company applies the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one-year or less.

 

At November 30, 2025, the Company had received approximately $2,152,000 in cash deposits, representing contract liabilities.

 

At February 28, 2025, the Company had received approximately $2,413,000 in cash deposits, representing contract liabilities, and had issued letters of credit in the amount of $106,000 to secure these cash deposits. During the nine months ended November 30, 2025, the Company recognized $2,303,000 of these deposits as revenue.

 

The Company’s sales revenue by product line is as follows:

    Three Months Ended
November 30,		     Nine Months Ended
November 30,		  
    2025     % of total     2024     % of total     2025     % of total     2024     % of total  
Fluxing Systems   $ 222,000       4%     $ 71,000       1%     $ 583,000       4%     $ 324,000       2%  
In-Line Coating Systems     1,844,000       37%       81,000       2%       6,428,000       42%       2,850,000       19%  
Multi-Axis Coating Systems     1,666,000       33%       3,563,000       69%       4,373,000       29%       8,158,000       53%  
OEM Systems     425,000       9%       259,000       5%       936,000       6%       796,000       5%  
Other     847,000       17%       1,217,000       23%       2,980,000       19%       3,255,000       21%  
TOTAL   $ 5,004,000             $ 5,191,000             $ 15,300,000             $ 15,383,000