Annual report pursuant to Section 13 and 15(d)

SALE-LEASEBACK TRANSACTION - OPERATING LEASE

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SALE-LEASEBACK TRANSACTION - OPERATING LEASE
12 Months Ended
Feb. 28, 2013
SALE-LEASEBACK TRANSACTION - OPERATING LEASE [Abstract]  
SALE-LEASEBACK TRANSACTION - OPERATING LEASE

NOTE 8

SALE-LEASEBACK TRANSACTION - OPERATING LEASE


On February 25, 1999, the Company entered into a sale-leaseback arrangement whereby the Company sold its land and building at 24 Carpenter Road in Chester, New York and leased it back for a period of 20 years. The leaseback is accounted for as an operating lease. The gain of $449,617 realized in this transaction has been deferred and is amortized to income in proportion to rental expense over the term of the related lease.


At February 28, 2013 minimum future rental payments are:


         

Year

 

Minimum Rental Payments

 

 

 

 

 

 

2014

 

$

132,504

 

2015

 

 

132,504

 

2016

 

 

132,504

 

2017

 

 

132,504

 

2018

 

 

132,504

 

2019

 

 

132,504

 

 

 

$

795,024

 


Rent expense for the years ended February 28, 2013 and February 29, 2012 aggregated $132,504.