LEASES

3 Months Ended

May 31, 2023

Disclosure Text Block [Abstract]

Lessor, Operating Leases [Text Block]

Note 3 – LEASES

We have both lessee and lessor arrangements. Our lessee arrangements include four rental agreements where we have the exclusive use of dedicated office space in San Diego, California, warehouse and office space in Layton, Utah, warehouse and office space in Seattle, Washington, and warehouse space locally in Tulsa, OK, all of which qualify as operating leases. Our lessor arrangements include two rental agreements for warehouse and office space in Tulsa, Oklahoma, and each qualify as an operating lease under ASC 842.

Operating Leases – Lessee

We recognize a lease liability, reported in other liabilities on the condensed balance sheets, for each lease based on the present value of remaining minimum fixed rental payments (which includes payments under any renewal option that we are reasonably certain to exercise), using a discount rate that approximates the rate of interest we would have to pay to borrow on a collateralized basis over a similar term. We also recognize a right-of-use asset, reported in other assets on the condensed balance sheets, for each lease, valued at the lease liability and adjusted for prepaid or accrued rent balances existing at the time of initial recognition. The lease liability and right-of-use asset are reduced over the term of the lease as payments are made and the assets are used.

	May 31, 2023			February 28, 2023
Operating lease assets:
Right-of-use assets	$	726,000		$	823,600
Operating lease liabilities:
Current lease liabilities	$	338,100		$	347,800
Long-term lease liabilities	$	387,900		$	475,800
Weighted-average remaining lease term (months)		33.3			36.3
Weighted-average discount rate		4.01	%		4.01	%

Minimum fixed rental payments are recognized on a straight-line basis over the life of the lease as costs and expenses in our statements of operations. Variable and short-term rental payments are recognized as costs and expenses as they are incurred.

	May 31, 2023		May 31, 2022
Fixed lease costs	$	105,800	$	37,900

Future minimum rental payments under operating leases with initial terms greater than one year as of May 31, 2023, are as follows:

Years ending February 28 (29),
2024		296,900
2025		270,500
2026		122,200
2027		72,800
Total future minimum rental payments		762,400
Less: imputed interest		(36,400	)
Total operating lease liabilities	$	726,000

The following table provides further information about our operating leases reported in our condensed financial statements:

	May 31, 2023		May 31, 2022
Operating cash outflows – operating leases	$	105,800	$	37,900

Operating Leases – Lessor

We recognize fixed rental income on a straight-line basis over the life of the lease as other income in our condensed statements of operations.

Future minimum payments receivable under operating leases with terms greater than one year are estimated as follows:

Years ending February 28 (29),
2024	$	1,178,800
2025		1,547,100
2026		1,524,300
2027		1,554,800
2028		1,585,900
Thereafter		4,950,300
Total	$	12,341,200

The cost of the leased space was $10,637,900 at May 31, 2023 and February 28, 2023. The accumulated depreciation associated with the leased assets was $2,946,700 and $2,853,200 as of May 31, 2023 and February 28, 2023, respectively. Both the leased assets and accumulated depreciation are included in property, plant and equipment - net on the condensed balance sheets.