Income Taxes
 12 Months Ended
Feb. 29, 2020
Income Taxes
Note 7. Income Taxes
The rate reconciliation related to income taxes differs from the amount computed by applying the federal statutory rate of 21% is as follows (in thousands):
 
   
Fiscal Year Ended
 
   
February 29,

2020
   February 28,
2019		 
Statutory U.S. federal income tax rate
  
$
247
 
  $17 
State income taxes, net of federal benefit
  
 
19
 
   22 
Valuation allowance
  
 
(336
) 
   (57) 
Other
  
 
70
 
   18 
  
 
 
   
 
 
 
Taxes at effective income tax rate
  
$
—
 
  $—   
  
 
 
   
 
 
 
Significant components of the Company’s net deferred income tax assets consist of the following (in thousands):
 
   
February 29,

2020
   February 28,
2019		 
Deferred tax assets (liabilities):
    
Federal net operating loss carry-forward
  
$
3,130
 
  $2,883 
Non-deductible losses
 
 
 
1,365
 
  
 
1,360
 
State net operating loss carry-forward
 
 
 
808
 
  
 
717
 
Federal tax credit carry-forward
 
 
 
319
 
  
 
318
 
Inventory reserves
  
 
191
 
   211 
Uniform capitalization costs
 
 
 
101
 
  
 
85
 
Foreign tax credit carry-forward
 
 
 
73
 
  
 
99
 
Accrued liabilities
  
 
44
 
   44 
Basis difference of property, plant and equipment
 
 
 
39
 
  
 
43
 
Allowance for doubtful accounts
  
 
2
 
   4 
Amortization of intangibles
  
 
1
 
   2 
Other
  
 
(9
)
 
   
(10
)
Valuation allowance
  
 
(6,064
) 
   (5,756) 
   
 
 
   
 
 
 
Net deferred tax assets
  
$
—
 
  $— 
  
 
 
   
 
 
 
Deferred tax assets have been reduced by a valuation allowance because, in the
opinion
of management, it is more likely than not that the Company’s deferred tax assets will not be realized. The Company has determined that a 100% valuation allowance is needed due to historical cumulative taxable net operating losses and the limited taxable income related to the carry back periods. The Company has available federal and state net operating loss carry forwards of $14.9 million and $13.7 million, in the fiscal years ending February 29, 2020 and 2019, respectively. The net operating loss carry forwards expire at various dates through fiscal 2040, if not used.