INCOME TAXES:

9 Months Ended

Nov. 30, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

6.  INCOME TAXES:

At November 30, 2011, the Company has net operating loss carryforwards of approximately $14,662,000 that expire through 2029.  Such net operating losses are available to offset future taxable income, if any.  As the utilization of such net operating losses for tax purposes is not assured, the deferred tax asset has been mostly reserved through the recording of a 100% valuation allowance.  Should a cumulative change in the ownership of more than 50% occur within a three-year period, there could be an annual limitation on the use of the net operating loss carryforward.

Total net deferred taxes were comprised of the following as of November 30 and February 28, 2011:

Deferred tax assets:	11/30/11			2/28/11
Loss carryforwards	$	5,572,000		$	6,064,000
Allowance for doubtful accounts		1,000			1,000
Inventory valuation		673,000			853,000
Depreciation		48,000			49,000
Section 263A capitalized costs		494,000			296,000
Total deferred tax assets		6,788,000			7,263,000
Valuation allowance		(6,788,000	)		(7,263,000	)
Total net deferred taxes	$	0		$	0

The change in the valuation allowance on deferred tax assets is due principally to the utilization of the net operating loss for the quarter ended November 30, 2011 and for the year ended February 28, 2011.

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate for the quarter ended November 30, 2011 and for the year ended February 28, 2011 is as follows:

	11/30/11			2/28/11
U.S. federal statutory rate		34.0	%		34.0	%
Change in valuation allowance		(34.0	)		(34.0	)
Effective income tax rate		0.0	%		0.0	%