9 INCOME TAXES (Tables)

12 Months Ended

Feb. 28, 2015

Income Tax Disclosure [Abstract]

Income tax expense (benefit)

Income tax expense (benefit) consists of the following:

	Current		Deferred			Total
Year ended February 28, 2015:
U.S. federal	$	—		(633,032	)		(633,032	)
State		20,729		(112,687	)		(91,958	)
Total income tax expense (benefit)	$	20,729		(745,719	)		(724,990	)
Year ended February 28 2014:
U.S. federal	$	—		177,185			177,185
State		4,356		48,916			53,272
Total income tax expense	$	4,356		226,101			230,457

Expected income tax expense

The income tax expense (benefit) differs from the expected amount of income tax expense (benefit) determined by applying a combined U.S. federal and state income tax rate of 40% to pretax income (loss)  for the years ended February 28, 2015 and 2014 as follows:

	2015			2014
Expected tax expense (benefit)	$	(846,350	)	$	296,161
Permanent differences		5,149			5,158
True up of state tax payable		(7,014	)		29,138
Change in valuation allowance		123,225			(100,000	)
Income tax expense (benefit)	$	(724,990	)	$	230,457

Deferred tax assets

Deferred tax assets are as follows:

	February 28,
	2015			2014
Deferred tax assets:
NOL carryforwards	$	631,027		$	32,864
Depreciation		(15,484	)		(30,173	)
Accrued expenses		88,556			6,374
Stock compensation		611,315			460,796
Other		48,963			25,372
Valuation allowance		(123,225	)		-
Net deferred tax assets	$	1,241,152		$	495,233