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, 2013
Aug. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 164,063 $ 440,983
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred compensation cost 80,100  
Depreciation and amortization 112,527 83,470
Deferred capital gain - building lease (11,238) (11,239)
Changes in operating assets and liabilities:    
(Increase) decrease in accounts receivable 72,138 (77,427)
(Increase) decrease in inventory 43,297 (83,929)
(Increase) decrease in prepaid expense (35,226) 30,533
(Increase) decrease in other assets 29,400 (2,812)
Increase (decrease) in accounts payable 138,282 (87,023)
Increase in accrued payroll and related taxes 8,509 14,989
Increase (decrease) in accrued expense 14,402 (46,253)
Increase (decrease) in accrued tax liability (118,255) 116,092
NET CASH PROVIDED BY OPERATING ACTIVITIES 497,999 377,384
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (132,996) (427,692)
Purchase of certificates of deposit (913) (128)
Payments for patents (20,539) (1,000)
NET CASH USED IN INVESTING ACTIVITIES (154,448) (428,820)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments on note payable to related parties (437,832) (20,399)
Payments on notes payable (1,474) (1,019)
NET CASH USED IN FINANCING ACTIVITIES (439,306) (21,418)
NET DECREASE IN CASH AND CASH EQUIVALENTS (95,755) (72,854)
CASH AND CASH EQUIVILENTS, BEGINNING OF PERIOD 1,930,321 1,757,223
CASH AND CASH EQUIVILENTS, END OF PERIOD 1,834,566 1,684,369
Cash paid during the periods for:    
Interest 4,547 14,386
Taxes $ 203,773 $ 113,000