REVOLVING LINE OF CREDIT	6 Months Ended
Aug. 31, 2025
Debt Disclosure [Abstract]
REVOLVING LINE OF CREDIT	NOTE 7: REVOLVING LINE OF CREDIT The Company has a $1,500,000 revolving line of credit at prime which was 7.50% at August 31, 2025 and February 28, 2025. The revolving credit line is collateralized by the Company’s accounts receivable and inventory. The revolving credit line is payable on demand and must be retired for a 30-day period, once annually. If the Company fails to perform the 30-day annual pay down or if the bank elects to terminate the credit line, the bank may, at its option, convert the outstanding balance to a 36-month term note with payments including interest in 36 equal installments. As of August 31, 2025, $106,000 of the Company’s credit line was being utilized to collateralize Letters of Credit issued by the Company. As of August 31, 2025, there were no outstanding borrowings under the line of credit and the unused portion of the credit line was $1,394,000. The Company has a $750,000 equipment line of credit at prime plus 0.50%, which was 7.50% at August 31, 2025. At August 31, 2025, there were no outstanding borrowings under the equipment line of credit.

REVOLVING LINE OF CREDIT

6 Months Ended

Aug. 31, 2025

NOTE 7: REVOLVING LINE OF CREDIT

The Company has a $1,500,000 revolving line of credit at prime which was 7.50% at August 31, 2025 and February 28, 2025. The revolving credit line is collateralized by the Company’s accounts receivable and inventory. The revolving credit line is payable on demand and must be retired for a 30-day period, once annually. If the Company fails to perform the 30-day annual pay down or if the bank elects to terminate the credit line, the bank may, at its option, convert the outstanding balance to a 36-month term note with payments including interest in 36 equal installments.

As of August 31, 2025, $106,000 of the Company’s credit line was being utilized to collateralize Letters of Credit issued by the Company. As of August 31, 2025, there were no outstanding borrowings under the line of credit and the unused portion of the credit line was $1,394,000.

The Company has a $750,000 equipment line of credit at prime plus 0.50%, which was 7.50% at August 31, 2025. At August 31, 2025, there were no outstanding borrowings under the equipment line of credit.

SONO TEK CORP 10-Q