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7. COMMITMENTS | 12 Months Ended
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Feb. 28, 2019
Disclosure Text Block Supplement [Abstract] |
Commitments Disclosure [Text Block] | 7. COMMITMENTS In connection with the purchase our 400,000 square-foot facility on 40-acres, in 2015, we entered into a 15-year lease with the seller, a non-related third party, who leases 181,300 square feet, or 45.3% of the facility. The lease is being accounted for as an operating lease. The cost of the leased space upon acquisition, and as of February 28, 2019, was estimated at $10,159,000. The accumulated depreciation associated with the leased assets was $1,139,700 and $789,100 for the fiscal years ended February 28, 2019 and 2018, respectively. Both the leased assets and accumulated depreciation are included in property, plant and equipment-net in the balance sheets. The lessee pays $112,200 per month, through the lease anniversary date of December 2019, with a 2.0% annual increase adjustment on each anniversary date thereafter. The lease terms allow for one five-year extension, which is not a bargain renewal option, at the expiration of the 15-year term. Revenues associated with the lease are being recorded on a straight-line basis over the initial lease term and are reported in other income on the statements of earnings. The following table reflects future minimum rental income payments under the non-cancellable portion of this lease as of February 28, 2019:
Year Ending February 28 (29), |
2020 |  | $ | 1,351,300 |
2021 |  |  | 1,378,300 |
2022 |  |  | 1,405,900 |
2023 |  |  | 1,434,000 |
2024 |  |  | 1,462,700 |
Thereafter |  |  | 10,806,600 |
Total |  | $ | 17,838,800 |
At February 28, 2019, we had outstanding purchase commitments for inventory totaling $13,324,800, which is due during fiscal year 2020. Of these commitments, $8,825,600 were with Usborne, $4,489,400 with various Kane Miller publishers and the remaining $9,800 with other suppliers. Rent expense for the year ended February 28, 2019 and 2018, was $18,800 and $17,200, respectively. The current lease on the property extends through 2021.

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- Definition The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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