OTHER INCOME

6 Months Ended

Aug. 31, 2023

Other Income and Expenses [Abstract]

Other Income and Other Expense Disclosure [Text Block]

Note 7 – OTHER INCOME

A summary of other income (loss) is show below:

	Three Months Ended August 31,				Six Months Ended August 31,
	2023		2022		2023		2022
Federal tax credits realized	$	3,808,700	$	-	$	3,808,700	$	-
Rental income		386,000		395,000		772,000		790,000
Other		58,100		1,000		63,500		(3,300	)
Total other income	$	4,252,800	$	396,000	$	4,644,200	$	786,700

As a response to the COVID-19 outbreak, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which contained a number of programs to assist workers, families and businesses. Part of the CARES Act provides an Employee Retention Credit (“ERC”) which is a refundable tax credit against certain employment taxes equal to 50% of qualified wages paid, up to $10,000 per employee annually, from March 12, 2020 through January 1, 2021. Additional relief provisions were passed by the U.S. government, which extended and expanded the qualified wage caps on these credits to 70% of qualified wages paid, up to $10,000 per employee per quarter, through September 30, 2021. Due to the subjectivity of the credit, the Company elected to account for the ERC as a gain analogizing to ASC 450-30, Gain Contingencies.         

During the quarter ended August 31, 2023, the Department of Treasury notified the Company of ERC credits awarded under the CARES Act for the first three quarters of calendar 2021. During August 2023, the Company received three refund payments resulting from amended 2021 Q1, Q2 and Q3 941-X returns that were filed. As a result of receiving these refund payments, the Company is required to file amended fiscal 2021 and 2022 corporate income tax returns reducing the wages expense deduction associated with the credit received. The Company has recognized estimated federal and state tax liabilities associated with these amended returns of approximately $1,041,600 as of August 31, 2023, which are included in income taxes payable on the condensed balance sheets.