Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOWS (UNAUDITED)

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STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
 6 Months Ended
Aug. 31, 2012
Aug. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 440,983 $ 316,032
Adjustments to reconcile net income to net cash from operating activities:    
Depreciation and amortization 83,470 46,278
Deferred capital gain - building lease (11,239) (11,240)
Changes in operating assets and liabilities:    
(Increase) decrease in accounts receivable (77,427) 105,238
(Increase) in inventory (83,929) (421,743)
Decrease in prepaid expense 30,533 7,488
Increase in security deposits (2,812)   
Decrease in deferred tax asset    18,449
Increase (decrease) in accounts payable (87,023) 13,864
Increase in accrued payroll and related taxes 14,989 19,631
Increase (decrease) in accrued expense (46,253) 77,791
Increase in accrued tax liability 116,092   
NET CASH PROVIDED BY OPERATING ACTIVITIES 377,384 171,788
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (427,692) (88,676)
Purchase of certificates of deposit (128)   
Payments for patents (1,000)   
NET CASH USED IN INVESTING ACTIVITIES (428,820) (88,676)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuing common stock    121,500
Payments to note payable to related parties (20,399) (19,212)
Payments on notes payable (1,019) (946)
Excess tax benefits from share-based payment arrangements    202,076
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (21,418) 303,418
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (72,854) 386,530
CASH AND CASH EQUIVILENTS, BEGINNING OF PERIOD 1,757,223 1,322,250
CASH AND CASH EQUIVILENTS, END OF PERIOD 1,684,369 1,708,780
Cash paid during the period for:    
Interest 14,386 15,899
Taxes 113,000 3,125
Non Cash Activities:    
Deferred compensation cost $ 263,700