Income Taxes

12 Months Ended

Feb. 28, 2014

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 12: INCOME TAXES

The annual provision (benefit) for income taxes differs from amounts computed by applying the maximum U.S. Federal income tax rate of 34% to pre-tax income as follows:

	February 28, 2014			February 28, 2013
Expected federal income tax	$	208,088		$	47,155
State tax, net of federal		12,100			6,736
Permanent timing difference		(6,771	)		19,409
State tax credits		—			(76,137	)
Utilization of net operating loss carryforwards and research and development tax credits		(82,927	)		(71,569	)
Income tax (benefit)	$	130,490		$	(74,406	)
Current federal and state income taxes	$	130,490		$	5,585
Recognition of deferred tax assets		—			(3,854	)
State tax credits		—			(76,137	)
Income tax (benefit)	$	130,490		$	(74,406	)

The net deferred tax asset is comprised of the following:

	February 28,			February 28,
	2014			2013
Inventory	$	103,000		$	129,000
Allowance for accounts receivable		13,000			8,000
Accrued expenses and other		59,000			111,000
Research tax credits		117,000			100,000
Deferred tax asset		292,000			348,000
Deferred tax liability		(202,000	)		(258,000	)
Net deferred tax asset	$	90,000		$	90,000

At February 28, 2014 and 2013, the Company had no net operating loss carryforwards remaining but has $117,000 and $100,000 of research and development tax credits, respectively, being carried forward.