Segment Information

6 Months Ended

Aug. 31, 2016

Notes to Financial Statements

Segment Information

NOTE 10: SEGMENT INFORMATION

The Company operates in two segments: ultrasonic spray coating systems, which is the business of developing, manufacturing, selling, installing and servicing ultrasonic spray coating equipment; and real estate operations, which is the business of owning and operating the Sono-Tek Industrial Park.

All inter-company transactions are eliminated in consolidation. For the six and three months ended August 31, 2016 and 2015, segment information is as follows:

	Six Months Ended August 31, 2016											Three Months Ended August 31, 2016
	Ultrasonic Spraying		Rental Real Estate Operations			Eliminations			Consolidated			Ultrasonic Spraying			Rental Real Estate Operations			Eliminations			Consolidated
Net Sales	$	4,502,365	$	146,447		$	98,149		$	4,550,663		$	2,286,153		$	73,372		$	49,074		$	2,310,451
Rental Expense	$	98,149	$	45,331		($	98,149	)	$	45,331		$	49,074		$	20,408		$	(49,074	)	$	20,408
Depreciation Expense	$	197,744	$	36,240					$	233,984		$	103,866		$	18,046					$	121,912
Interest Expense	$	—	$	27,113					$	27,113		$	—		$	13,367					$	13,367
Net Income (Loss)	$	26,503	($	60,385	)				($	33,882	)	($	62,150	)	($	27,523	)				($	89,673	)
Assets	$	8,156,775	$	2,424,489					$	10,581,264		$	8,156,775		$	2,424,489					$	10,581,264
Debt	$	—	$	1,248,650					$	1,248,650		$	—		$	1,248,650					$	1,248,650

	Six Months Ended August 31, 2015										Three Months Ended August 31, 2015
	Ultrasonic Spraying		Rental Real Estate Operations			Eliminations			Consolidated		Ultrasonic Spraying		Rental Real Estate Operations			Eliminations			Consolidated
Net Sales	$	5,810,820	$	144,899		$	98,149		$	5,857,570	$	2,952,223	$	71,524		$	49,074		$	2,974,673
Rental Expense	$	98,149	$	42,091		$	(98,149	)	$	42,091	$	49,074	$	20,293		$	(49,074	)	$	20,293
Depreciation Expense	$	174,244	$	36,241					$	210,485	$	92,571	$	18,194					$	110,765
Interest Expense	$	75	$	29,989					$	30,064	$	—	$	14,851					$	14,851
Net Income (Loss)	$	359,183	$	(61,571	)				$	297,612	$	174,778	($	31,188	)				$	143,590
Assets	$	8,132,679	$	2,484,258					$	10,616,937	$	8,132,679	$	2,484,258					$	10,616,937
Debt	$	—	$	1,389,035					$	1,389,035	$	—	$	1,389,035					$	1,389,035