6. DEBT

12 Months Ended

Feb. 28, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

6. DEBT

We have a $2,500,000 revolving credit agreement, with interest payable monthly at the greater of (a) prime rate minus 0.75% or (b) 4.00%.  At February 28, 2014, the rate in effect was 4.00%.  The revolving credit agreement is collateralized by substantially all of our assets and matures on June 30, 2014.

We had no borrowings outstanding on the above revolving credit agreement at February 28, 2014 and $1,250,000 in borrowings outstanding at February 28, 2013.  Available credit under the revolving credit agreement was $2,500,000 at February 28, 2014. This agreement also contains a provision for our use of the Bank’s letters of credit.  The Bank agrees to issue, or obtain issuance of commercial or stand-by letters of credit provided that no letters of credit will have an expiry date later than June 30, 2014 and that the sum of the line of credit plus the letters of credit would not exceed the borrowing base in effect at the time. The agreement contains provisions that require us to maintain specified financial ratios, restrict transactions with related parties, prohibit mergers or consolidation, disallow additional debt, and limit the amount of compensation, salaries, investments, capital expenditures and leasing transactions.  We intend to renew the bank agreement or obtain other financing upon maturity.