INCOME TAXES (Tables)

12 Months Ended

Feb. 29, 2024

INCOME TAXES

Reconciliation of the U.S. federal statutory tax rate to the Company's effective tax rate

	2024					2023
Net Income/(Loss) Before Taxes	$	2,777,000				$	826,000
Provision/(Benefit) at statutory rate		583,000		21.0	%		173,000		21.0	%
State Tax Provision/(Benefit) net of federal benefit		28,000		1.0	%		55,000		6.7	%
Permanent Book/Tax Differences		16,000		0.6	%		-		0.0	%
Change in Valuation Allowance		(3,193,000	)	-115.0	%		(166,000	)	-20.1	%
R&D Credit		-		0.0	%		(50,000	)	-6.1	%
True-Up & Adjustments		-		0.0	%		(12,000	)	-1.5	%
Bargain purchase price - MEI acquisition		(458,000	)	0.0	%		-		0.0	%
Income Tax Provision / (Benefit)		(3,024,000	)				-
Effective income tax rate		-108.87	%				0.00	%

Summary of deferred tax asset (Liability)

Deferred Tax Asset (Liability):	2024			2023
Accrued Liabilities	$	79,000		$	59,000
Inventory Allowance		1,212,000			1,198,000
Allowance for Sales Reserve		119,000			119,000
Net Operating Loss Carryforwards		2,086,000			2,577,000
Other		1,000			8,000
Capitalized R&D		70,000			119,000
R&D Credit Carryforward		50,000			-
Unrealized Gains		(82,000	)		(229,000	)
MEI accrual to cash		(140,000	)		-
Inventory FMV adjustment		(7,000	)		-
Net book value of intangible assets		(792,000	)		-
Prepaid expenses		(41,000	)		-
Net Book Value of Fixed Assets		(718,000	)		(658,000	)
Total Deferred Tax Assets (Liabilities)		1,837,000			3,193,000
Valuation allowance		-			(3,193,000	)
	$	1,837,000			-

Federal net operating loss carryforward expirations

Fiscal Year Ending February 28/29	Amount
2029	$	4,985,000
2037		322,000
indefinite		3,405,000
Total	$	8,712,000