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REVENUE RECOGNITION
 6 Months Ended
Aug. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION

NOTE 3: REVENUE RECOGNITION

 

The Company’s sales revenue is derived primarily from short term contracts with customers, which are generally in effect for less than twelve months. Sales revenue from manufactured equipment transferred at a single point in time accounts for a majority of the Company’s revenue.

 

Sales revenue is recognized when control of the Company’s manufactured equipment is transferred to its customers, in an amount that reflects the consideration the Company expects to receive based upon the agreed transaction price. The Company’s performance obligations are satisfied when its customers take control of the purchased equipment, which is based on the contract terms. Based on prior experience, the Company reasonably estimates its sales returns and warranty reserves. Sales are presented net of discounts and allowances. Discounts and allowances are determined when a sale is negotiated. The Company does not grant its customers or independent representatives, the ability to return equipment nor does it grant price adjustments after a sale is complete.

 

The Company does not capitalize any sales commission costs related to the acquisition of a contract. All commissions related to a performance obligation that are satisfied at a point in time are expensed when the customer takes control of the purchased equipment.

 

The Company applies the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one-year or less.

 

At August 31, 2026, the Company had received approximately $2,324,000 in cash deposits, representing contract liabilities.

 

At February 28, 2026, the Company had received approximately $3,070,000 in cash deposits, representing contract liabilities. During the six months ended August 31, 2026, the Company recognized $2,970,000 of these deposits as revenue.

 

The Company’s sales revenue by product line is as follows:

    Three Months Ended August 31,   Six Months Ended August 31,
    2026     %
of total		   2025     %
of total		   2026     %
of total		   2025     %
of total
Fluxing Systems   $ 27,000     1%   $ 165,000     3%   $ 119,000     1%   $ 317,000     3%
In-Line Coating Systems     1,778,000     34%     1,530,000     30%     3,937,000     36%     4,584,000     45%
Multi-Axis Coating Systems     1,975,000     38%     2,030,000     39%     4,050,000     37%     2,707,000     26%
OEM Systems     642,000     12%     394,000     8%     873,000     8%     524,000     5%
Spare Parts, Services and Other     810,000     15%     1,044,000     20%     1,914,000     18%     2,164,000     21%
TOTAL   $ 5,232,000         $ 5,163,000         $ 10,893,000         $ 10,296,000