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LEASES | 12 Months Ended
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Feb. 28, 2023
Disclosure Text Block [Abstract] |
Lessor, Operating Leases [Text Block] | 8. LEASES We have both lessee and lessor arrangements. Our lessee arrangements include four rental agreements where we have the exclusive use of dedicated office space in San Diego, California, warehouse and office space in Layton, Utah, warehouse and office space in Seattle, Washington, and warehouse space locally in Tulsa, OK, all of which qualify as an operating lease. Our lessor arrangements includes one rental agreement for warehouse and office space in Tulsa, Oklahoma, and qualifies as an operating lease under ASC 842. Operating Leases – Lessee We recognize a lease liability, reported in other liabilities on the balance sheets, for each lease based on the present value of remaining minimum fixed rental payments (which includes payments under any renewal option that we are reasonably certain to exercise), using a discount rate that approximates the rate of interest we would have to pay to borrow on a collateralized basis over a similar term. We also recognize a right-of-use asset, reported in other assets on the balance sheets, for each lease, valued at the lease liability and adjusted for prepaid or accrued rent balances existing at the time of initial recognition. The lease liability and right-of-use asset are reduced over the term of the lease as payments are made and the assets are used.
|  | February 28, |
|  | 2023 |  |  | 2022 |
Operating lease assets: |  |  |  |  |  |  |  |
Right-of-use assets |  | $ | 823,600 |  |  | $ | 495,800 |
Operating lease liabilities: |  |  |  |  |  |  |  |
Current lease liabilities |  | $ | 347,800 |  |  | $ | 111,000 |
Long-term lease liabilities |  | $ | 475,800 |  |  | $ | 384,800 |
Weighted-average remaining lease term (months) |  |  | 36.3 |  |  |  | 57.0 |
Weighted-average discount rate |  |  | 4.01 | % |  |  | 3.06 | %
Minimum fixed rental payments are recognized on a straight-line basis over the life of the lease as costs and expenses in our statements of operations. Variable and short-term rental payments are recognized as costs and expenses as they are incurred.
|  | February 28, |
|  | 2023 |  |  | 2022 |
Fixed lease costs |  | $ | 154,400 |  |  | $ | 35,300 |
Future minimum rental payments under operating leases with initial terms greater than one year as of February 28, 2023, are as follows:
Years ending February 28 (29), |  |  |  |
2024 |  |  | 402,700 |
2025 |  |  | 270,500 |
2026 |  |  | 122,200 |
2027 |  |  | 72,800 |
Total future minimum rental payments |  |  | 868,200 |
Less: imputed interest |  |  | (44,600 | )
Total operating lease liabilities |  | $ | 823,600 |
The following table provides further information about our operating leases reported in our financial statements:
|  | February 28, |
|  | 2023 |  |  | 2022 |
Operating cash flows – operating leases |  | $ | 154,400 |  |  | $ | 35,300 |
Operating Leases – Lessor In connection with the 2015 purchase of our 400,000 square-foot facility on 40 acres, 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 lessee pays $121,500 per month, through the lease anniversary date of December 2023, 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 in the statements of operations. We recognize variable rental payments as revenue in the period in which the changes in facts and circumstances, on which the variable lease payments are based, occur. Future minimum payments receivable under operating leases with terms greater than one year are estimated as follows:
Years ending February 28 (29), |  |  |  |
2024 |  |  | 1,568,900 |
2025 |  |  | 1,547,100 |
2026 |  |  | 1,524,300 |
2027 |  |  | 1,554,800 |
2028 |  |  | 1,585,900 |
Thereafter |  |  | 4,950,300 |
Total |  | $ | 12,731,300 |
The cost of the leased space was approximately $10,637,900 and $10,834,300 as of February 28, 2023 and February 28, 2022, respectively. The accumulated depreciation associated with the leased assets was $2,853,200 and $2,603,300 as of February 28, 2023 and February 28, 2022, respectively. Both the leased assets and accumulated depreciation are included in property, plant and equipment-net on the balance sheets.

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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-30/tableOfContent + Details
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