INCOME TAXES

12 Months Ended

Feb. 28, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 10: 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, 2022			February 28, 2021
Expected federal income tax	$	609,883		$	283,052
State tax, net of federal		37,894			27,102
Research and development tax credits		(101,573	)		(105,320	)
Permanent differences		(179,320	)		12,719
Other		(5,253	)		9,672
Income tax expense	$	361,631		$	227,225

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 2022. There are no interest and penalties related to uncertain tax positions in 2022. As of February 28, 2022, open years related to the federal and state jurisdictions are 2020, 2019 and 2018.

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

	February 28, 2022			February 28, 2021
Deferred tax asset
Allowance for inventory	$	69,000		$	66,000
Allowance for accounts receivable		12,000			13,000
Accrued expenses and other		160,000			181,000
Deferred tax asset – Long Term	$	241,000		$	260,000
Deferred tax liability
Building and leasehold depreciation		(169,000	)		(206,000	)
Deferred tax liability – Long Term	$	(169,000	)	$	(206,000	)