v3.26.1
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
Feb. 28, 2026
Feb. 28, 2025
Deferred tax assets:    
Allowance for credit losses $ 29,600 $ 30,300
Inventory overhead capitalization 182,700 115,000
Inventory valuation allowance 96,900 116,200
Inventory valuation allowance – noncurrent 217,300 198,200
Allowance for sales returns 27,200 27,200
Research and development capitalization 0 457,600
Net operating loss carryforward [1] 109,300 1,141,200
Disallowed interest [2] 2,001,300 1,655,500
Accruals 12,100 136,500
Total deferred tax assets 2,676,400 3,877,700
Deferred tax liabilities:    
Property, plant, and equipment (1,121,600) (1,341,600)
Total deferred tax liabilities (1,121,600) (1,341,600)
Valuation allowance [3] (1,554,800) 0
Net deferred tax assets $ 0 $ 2,536,100
[1] The Company’s net operating loss (“NOL”) carryforward was generated from losses incurred in fiscal 2025. The Company’s NOL can be carried forward indefinitely but are limited to an 80% maximum offset of taxable income.
[2] The Company’s disallowed interest was generated from interest expense that was not deductible for tax purposes due to a maximum allowable deduction of 30% of taxable income. The disallowed interest is carried forward to be deducted against future income, subject to the 30% limitation.
[3] In evaluating the need for a valuation allowance and the realizability of deferred tax assets, the Company utilized the framework contained in ASC 740, “Income Taxes,” pursuant to which management analyzed all positive and negative evidence available at the balance sheet date to determine whether all or some portion of the deferred tax assets will not be realized. Under this guidance, a valuation allowance must be established for deferred tax assets when it is more likely than not that they will not be realized. In conclusion, management placed significant emphasis on guidance in ASC 740, which includes that a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome. Based upon available evidence, it was concluded on a more-likely-than-not basis that certain deferred tax assets were not realizable as of February 28, 2026. Accordingly, a valuation allowance has been recorded to offset these deferred tax assets.