Income Taxes

12 Months Ended

Feb. 28, 2021

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 11: INCOME TAXES

The annual provision (benefit) for income taxes differs from amounts computed by applying the maximum U.S. Federal income tax rate of 21% to pre-tax income as follows:

	February 28, 2021			February 29, 2020
Expected federal income tax	$	283,052		$	254,898
State tax, net of federal		27,102			19,758
Research and development tax credits		(105,320	)		(213,521	)
Permanent differences		12,719			29,632
Other		9,672			15,238
Income tax expense	$	227,225		$	106,005

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and projections for future taxable income over periods in which the deferred tax assets are deductible. Management believes it is more likely than not that the Company will realize the benefits of these deductible differences.

Management does not believe that there are significant uncertain tax positions in 2021. There are no interest and penalties related to uncertain tax positions in 2021

The deferred tax asset and liability are comprised of the following:

	February 28, 2021			February 29, 2020
Deferred tax asset
Inventory	$	66,000		$	41,000
Allowance for accounts receivable		13,000			15,000
Accrued expenses and other		181,000			94,000
Research tax credits		—			27,000
Deferred tax asset – Long Term	$	260,000		$	177,000
Deferred tax liability
Building and leasehold depreciation		(206,000	)		(252,000	)
Deferred tax liability – Long Term	$	(206,000	)	$	(252,000	)