Annual report pursuant to Section 13 and 15(d)

STATEMENTS OF CASH FLOWS

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STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Feb. 28, 2014
Feb. 28, 2013
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 703,429 $ 725,763
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred compensation cost 131,850 80,100
Depreciation and amortization 232,959 190,971
Deferred capital gain - building lease (22,478) (22,481)
Deferred taxes (49,000) 82,637
Changes in operating assets and liabilities:    
Increase in accounts receivable (629,966) (230,120)
Decrease in inventory 331,406 17,327
Decrease (Increase) in prepaid expense (65,116) 8,251
Decrease (Increase) in other assets 29,316 (32,213)
Increase (Decrease) in accounts payable 136,264 (89,169)
Increase in accrued payroll and related taxes 22,781 8,644
Increase in accrued expense 93,675 15,990
Increase in accrued income tax liability 39,268 29,090
NET CASH PROVIDED BY OPERATING ACTIVITIES 954,388 784,790
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (188,686) (563,567)
Payments for patents (27,738) (2,850)
Purchase of certificates of deposit (1,581) (1,781)
NET CASH USED IN INVESTING ACTIVITIES (218,005) (568,198)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments to note payable to related parties (437,832) (41,417)
Payments on notes payable (1,474) (2,077)
NET CASH USED IN FINANCING ACTIVITIES (439,306) (43,494)
NET INCREASE IN CASH AND CASH EQUIVALENTS 297,077 173,098
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,930,321 1,757,223
CASH AND CASH EQUIVALENTS, END OF YEAR 2,227,398 1,930,321
Supplemental Information    
Cash paid during the years for: Interest 4,547 28,280
Cash paid during the years for: Taxes 317,773 213,793
NON-CASH FINANCING AND INVESTING ACTIVITIES    
Issuance of common stock as incentives    $ 263,700