REVENUE RECOGNITION

3 Months Ended

May 31, 2021

Revenue Recognition [Abstract]

REVENUE RECOGNITION

As of May 31, 2021, and May 31, 2020, sales returns and allowances accrual activity is shown below:

	May 31, 2021		May 31, 2020
Beginning Balance	$	354,000	$	126,000
Accrued Allowances		92,000		135,000
Credits Issued		-		-
Ending Balance	$	446,000	$	261,000

As noted in Note 2 above, one of our distributor agreements has a termination clause that would allow for a full credit for all inventory upon 60 days notice of terminating the agreement. As of May 31, 2021, and February 28, 2021, the inventory balance at that distributor was believed to be $2,071,000 and $1,854,000, respectively. Based upon sales levels to and by the distributor during the period, inventory levels at the distributors, current and projected market conditions, and historical experience under the programs, we believe it is highly unlikely that the distributor would exercise termination. Should termination occur, we believe the products could be sold to other distributors or held in inventory for future sale.

The Company warrants that its products, when delivered, will be free from defects in material workmanship under normal use and service. The obligations are limited to replacing, repairing, or reimbursing for, at the option of the Company, any products that are returned within one year after the date of shipment. The Company does not reserve for potential warranty costs based on historical experience and the nature of its cost tracking system.