Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOWS

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STATEMENTS OF CASH FLOWS (USD $)
 3 Months Ended
May 31, 2014
May 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 158,056 $ 73,354
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred compensation cost 32,875 41,175
Depreciation and amortization 59,690 54,937
Deferred capital gain - building lease (5,620) (5,620)
Changes in operating assets and liabilities:    
Decrease in accounts receivable 90,443 171,076
Increase in inventory (205,862) (112,658)
(Increase) Decrease in prepaid expense (141,198) 2,972
Increase in accounts payable 273,690 86,450
Decrease in accrued payroll and related taxes (11,432) (29,941)
Increase (Decrease) in accrued expense 55,451 (29,036)
Decrease in accrued tax liability (40,403) (38,288)
NET CASH PROVIDED BY OPERATING ACTIVITIES 265,690 214,421
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (91,427) (68,232)
Payments for patents (62,913) (3,930)
NET CASH USED IN INVESTING ACTIVITIES (154,340) (72,162)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments on note payable to related parties    (437,832)
Payments on note payable    (1,474)
NET CASH USED IN FINANCING ACTIVITIES    (439,306)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 111,350 (297,047)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,227,398 1,930,321
CASH AND CASH EQUIVALENTS, END OF PERIOD 2,338,748 1,633,274
Supplemental Information    
Cash paid during the periods for Interest    4,447
Cash paid during the periods for Taxes 126,500 76,575
NON-CASH FINANCING AND INVESTING ACTIVITIES    
Issuance of common stock as compensation $ 84,000