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INCOME TAXES (Tables)

12 Months Ended

Feb. 28, 2023

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

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.

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

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.

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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	%

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- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

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-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Paragraph 9
-Section 50
-Publisher FASB
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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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-SubTopic 10
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-Paragraph 2
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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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