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LEASES | 6 Months Ended
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Aug. 31, 2025
Disclosure Text Block [Abstract] |
Lessor, Operating Leases [Text Block] | Note 5 – LEASES We have both lessee and lessor arrangements. Our lessee arrangements include six rental agreements where we have the exclusive use of dedicated office space in San Diego, California, Ogden, Utah, Seattle, Washington, a warehouse space in Joplin, Missouri and two leases for office and warehouse space locally in Tulsa, Oklahoma, all of which qualify as operating leases under ASC 842. Our lessor arrangements include three rental agreements for warehouse and office space in Tulsa, Oklahoma, and qualify as operating leases 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. Expected payments in the next twelve months are classified as current lease liabilities. Payments in excess of twelve months are classified as long-term lease liabilities. 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 assets are reduced over the term of the lease as payments are made and the assets are used.
|  | August 31, 2025 |  |  | February 28, 2025 |
Operating lease assets: |  |  |  |  |  |
Right-of-use assets |  | $ | 768,200 |  |  | $ | 1,108,100 |
Operating lease liabilities: |  |  |  |  |  |  |  |
Current lease liabilities |  | $ | 675,000 |  |  | $ | 697,000 |
Long-term lease liabilities |  | $ | 93,200 |  |  | $ | 411,100 |
Weighted-average remaining lease term (months) |  |  | 13.8 |  |  |  | 18.4 |
Weighted-average discount rate |  |  | 5.46 | % |  |  | 4.89 | %
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.
|  | Three Months Ended August 31, |  |  | Six Months Ended August 31, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Fixed lease costs |  | $ | 170,700 |  |  | $ | 189,800 |  |  | $ | 341,300 |  |  | $ | 379,500 |
Future minimum rental payments under operating leases with initial terms greater than one year as of August 31, 2025, are as follows:
Years ending February 28, |  |  |
2026 |  | $ | 346,300 |
2027 |  |  | 448,600 |
Total future minimum rental payments |  |  | 794,900 |
Less: imputed interest |  |  | (26,700 | )
Total operating lease liabilities |  | $ | 768,200 |
The following table provides further information about our operating leases reported in our condensed financial statements:
|  | Three Months Ended August 31, |  |  | Six Months Ended August 31, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Operating cash outflows – operating leases |  | $ | 170,700 |  |  | $ | 189,800 |  |  | $ | 341,300 |  |  | $ | 379,500 |
The Company assesses its leases to determine whether it is reasonably certain that these renewal options will be exercised. In general, most of the office space outside of Tulsa, Oklahoma is associated with remote employees. Their continued employment determines the need for this space. Much of the warehouse space outside of the Hilti Complex is used to store non-current inventory. As the Company sells down excess inventory, less outside space will be needed, and any renewals will be for less space. Accordingly, the renewal options are not included in the calculation of its right-of-use assets and lease liabilities, as the Company does not believe that it is reasonably certain that these renewal options will be exercised. Operating Leases – Lessor In connection with the 2015 purchase of the Hilti Complex, 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 $126,400 per month, through the lease anniversary date of December 2025 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. On May 26, 2024, the Company entered into a triple-net lease agreement for approximately 111,400 square feet of available office and warehouse space in the Hilti Complex to a new tenant. The initial lease term was for five years, commenced July 1, 2024, and included an option to extend the lease term for an additional five years. The lessee pays $86,500 per month, with 3% escalations at the beginning of each year of the lease. The lease includes standard triple-net terms such that the tenant shall be responsible for utilities, insurance, property taxes, repairs, and maintenance, excluding roof and structure, which shall be the landlord’s responsibility. On December 20, 2024, the Company executed an amendment to its lease with the tenant. The amendment provides the tenant a $500,000 improvement allowance, providing $10,000 credit per month on their scheduled rental payments for 50 months, in exchange for extending the term of the lease for an additional five years through June 30, 2034. The Company also subleases some office and warehouse space in one of its other leased facilities. Future minimum payments receivable under operating leases with terms greater than one year are estimated as follows:
Years ending February 28 (29), |  |  |
2026 |  | $ | 1,337,700 |
2027 |  |  | 2,666,300 |
2028 |  |  | 2,676,600 |
2029 |  |  | 2,741,400 |
2030 |  |  | 2,807,900 |
Thereafter |  |  | 7,111,700 |
Total |  | $ | 19,341,600 |
The cost of the leased space was approximately $16,333,900 as of August 31, 2025, and February 28, 2025, respectively. The accumulated depreciation associated with the leased assets was $3,906,700 as of August 31, 2025, and February 28, 2025, respectively. During the third quarter of fiscal 2024, the Company announced its plans to sell the Hilti Complex and reclassified the land and buildings from property, plant and equipment to assets held for sale and discontinued depreciating the property. The leased space was included in this reclassification.

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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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