Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOWS (UNAUDITED)

v2.4.0.8
STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
 3 Months Ended
May 31, 2013
May 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 73,354 $ 90,339
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred compensation cost 41,175   
Depreciation and amortization 54,937 40,537
Deferred capital gain - building lease (5,620) (5,620)
Changes in operating assets and liabilities:    
Decrease in accounts receivable 171,076 147,737
Increase in inventory (112,658) (149,988)
Decrease in prepaid expense 2,972 56,730
Increase in accounts payable 86,450 27,122
Decrease in accrued payroll and related taxes (29,941) (16,152)
Decrease in accrued expense (29,036) (34,383)
Increase in security deposits    (2,812)
Decrease in accrued tax liability (38,288) (50,704)
NET CASH PROVIDED BY OPERATING ACTIVITIES 214,421 102,806
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (68,232) (121,896)
Payments for patents (3,930)   
Purchase of certificates of deposit    (128)
NET CASH USED IN INVESTING ACTIVITIES (72,162) (122,024)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments to note payable to related parties (437,832) (10,123)
Payments on notes payable (1,474) (504)
NET CASH USED IN FINANCING ACTIVITIES (439,306) (10,627)
NET DECREASE IN CASH AND CASH EQUIVALENTS (297,047) (29,845)
CASH AND CASH EQUIVILENTS, BEGINNING OF PERIOD 1,930,321 1,757,223
CASH AND CASH EQUIVILENTS, END OF PERIOD 1,633,274 1,727,378
Cash paid during the period for:    
Interest 4,447 7,207
Taxes $ 76,575 $ 98,000