REVENUE RECOGNITION

6 Months Ended

Aug. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

NOTE 3: REVENUE RECOGNITION

The Company’s sales revenue is derived primarily from short term contracts with customers, which, on average, are in effect for less than twelve months. Sales revenue from manufactured equipment transferred at a single point in time accounts for a majority of the Company’s revenue.

Sales revenue is recognized when control of the Company’s manufactured equipment is transferred to its customers, in an amount that reflects the consideration the Company expects to receive based upon the agreed transaction price. The Company’s performance obligations are satisfied when its customers take control of the purchased equipment, which is based on the contract terms. Based on prior experience, the Company reasonably estimates its sales returns and warranty reserves. Sales are presented net of discounts and allowances. Discounts and allowances are determined when a sale is negotiated. The Company does not grant its customers or independent representatives, the ability to return equipment nor does it grant price adjustments after a sale is complete.

The Company does not capitalize any sales commission costs related to the acquisition of a contract. All commissions related to a performance obligation that are satisfied at a point in time are expensed when the customer takes control of the purchased equipment.

The Company applies the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one-year or less.

At August 31, 2023, the Company had received approximately $3,394,000 in cash deposits, representing contract liabilities.

At February 28, 2023, the Company had received approximately $2,838,000 in cash deposits, representing contract liabilities. During the six months ended August 31, 2023 the Company recognized $2,368,000 of these deposits as revenue.

The Company’s sales revenue by product line is as follows:

	Three Months Ended August 31,						Six Months Ended August 31,
	2023		% of total	2022		% of total	2023		% of total	2022		% of total
Fluxing Systems	$	204,000	4%	$	399,000	11%	$	440,000	5%	$	707,000	9%
Integrated Coating Systems		853,000	15%		425,000	11%		1,162,000	12%		594,000	8%
Multi-Axis Coating Systems		2,923,000	52%		1,491,000	40%		4,686,000	51%		3,470,000	44%
OEM Systems		535,000	9%		762,000	20%		810,000	9%		1,316,000	17%
Spare Parts, Services and Other		1,124,000	20%		686,000	18%		2,144,000	23%		1,728,000	22%
TOTAL	$	5,639,000		$	3,763,000		$	9,242,000		$	7,815,000