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INCOME TAXES | 12 Months Ended
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Feb. 28, 2023
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | 6. INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising our net deferred tax assets and liabilities are as follows:
|  | February 28, |
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | 57,200 |  |  | $ | 90,900 |
Inventory overhead capitalization |  |  | 170,100 |  |  |  | 203,500 |
Inventory valuation allowance |  |  | 132,500 |  |  |  | 137,900 |
Inventory valuation allowance – noncurrent |  |  | 112,200 |  |  |  | 103,200 |
Allowance for sales returns |  |  | 27,200 |  |  |  | 27,200 |
Research and development capitalization |  |  | 291,600 |  |  |  | - |
Net operating loss carryforward (1) |  |  | 830,900 |  |  |  | - |
Accruals |  |  | 1,069,100 |  |  |  | 953,600 |
Total deferred tax assets |  |  | 2,690,800 |  |  |  | 1,516,300 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | (1,894,000 | ) |  |  | (1,397,600 | )
Total deferred tax liabilities |  |  | (1,894,000 | ) |  |  | (1,397,600 | )
Net deferred income tax assets |  | $ | 796,800 |  |  | $ | 118,700 |
(1) The Company’s net operating loss (“NOL”) carryforward was generated from losses incurred in fiscal 2023. The Company’s NOL can be carried forward indefinitely, but are limited to a 80% maximum offset of taxable income. Authoritative guidance requires a valuation allowance to be established when determining whether deferred tax assets are more likely-than-not to be realized. Based on the Company’s evaluation, we determined the net deferred tax assets do meet the requirements to be realized, and as such, no valuation allowance has been established.
The components of income tax expense (benefit) are as follows:
|  | February 28, |
|  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |
Federal (1) |  | $ | - |  |  | $ | 2,663,900 |
State (1) |  |  | - |  |  |  | 623,700 |
|  |  | - |  |  |  | 3,287,600 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (719,700 | ) |  |  | (304,400 | )
State |  |  | (202,300 | ) |  |  | (54,100 | )
|  |  | (922,000 | ) |  |  | (358,500 | )
Total income tax expense (benefit) |  | $ | (922,000 | ) |  | $ | 2,929,100 |
(1) The Company incurred losses in fiscal 2023, resulting in a net operating loss carryforward and reclassification from current to deferred.
The following reconciles our expected income tax rate to the U.S. federal statutory income tax rate:
|  | February 28, |
|  | 2023 |  |  | 2022 |
U.S. federal statutory income tax rate |  |  | 21.0 | % |  |  | 21.0 | %
U.S. state and local income taxes–net of federal benefit |  |  | 5.7 | % |  |  | 5.5 | %
Other |  |  | 0.2 | % |  |  | (0.4 | )%
Total income tax expense |  |  | 26.9 | % |  |  | 26.1 | %
We file our tax returns in the U.S. and certain state jurisdictions in which we have nexus. We are no longer subject to income tax examinations by tax authorities for fiscal years before 2017. Based upon a review of our income tax filing positions, we believe that our positions would be sustained upon an audit and do not anticipate any adjustments that would result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded. We classify interest and penalties associated with income taxes as a component of income tax expense on the statements of operations.

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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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