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, 2013
Feb. 29, 2012
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 725,763 $ 815,893
Adjustments to reconcile net income to net cash from operating activities:    
Amortization of deferred compensation cost 80,100   
Depreciation and amortization 190,971 103,981
Deferred capital gain - building lease (22,481) (22,480)
Deferred taxes 82,637 167,004
Changes in operating assets and liabilities:    
Increase in accounts receivable (230,120) (170,821)
Decrease (Increase) in inventory 17,327 (499,256)
Decrease (Increase) in prepaid expense 8,251 (75,965)
Increase in other assets (32,213)   
(Decrease) Increase in accounts payable (89,169) 41,419
Increase in accrued payroll and related taxes 8,644 20,356
Increase in accrued expense 15,990 82,470
Increase in accrued income tax liability 29,090 98,000
NET CASH PROVIDED BY OPERATING ACTIVITIES 784,790 560,601
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (563,567) (236,235)
Payments for patents (2,850)   
Purchase of certificates of deposit (1,781) (102,829)
NET CASH USED IN INVESTING ACTIVITIES (568,198) (339,064)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuing common stock    121,500
Payments to note payable to related parties (41,417) (39,010)
Payments on notes payable (2,077) (1,929)
Excess tax benefits from share-based payment arrangements    132,875
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (43,494) 213,436
NET INCREASE IN CASH AND CASH EQUIVALENTS 173,098 434,973
CASH AND CASH EQUIVILENTS, BEGINNING OF PERIOD 1,757,223 1,322,250
CASH AND CASH EQUIVILENTS, END OF PERIOD 1,930,321 1,757,223
Cash paid during the period for:    
Interest 28,280 31,540
Taxes 213,793 89,644
NON - CASH FINANCING AND INVESTING ACTIVITIES    
Issuance of common stock as incentives $ 263,700