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, 2015
May. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES    
Net (Loss)/Income $ (64,640) $ 158,056
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Amortization of deferred compensation cost 7,000 32,875
Depreciation and amortization 64,719 59,690
Deferred capital gain - building lease (5,618) $ (5,620)
Loss on disposal of fixed assets 4,606  
Allowance for returns and doubtful accounts 951 $ 1,109
Deferred taxes (2,380)  
Changes in operating assets and liabilities:    
Decrease in accounts receivable 148,234 $ 89,334
Increase in inventory (186,000) (205,862)
(Increase) Decrease in prepaid expense (168,325) (141,198)
Increase in accounts payable 154,275 273,690
Increase in accrued payroll and related taxes 123,885 (11,432)
Increase (Decrease) in accrued expense $ (65,606) 55,451
Decrease in accrued tax liability   (40,403)
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 11,101 265,690
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (61,344) (91,427)
Payments for patents (36,356) (62,913)
NET CASH USED IN INVESTING ACTIVITIES $ (97,700) $ (154,340)
CASH FLOWS FROM FINANCING ACTIVITIES    
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES    
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS $ (86,599) $ 111,350
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,557,235 2,227,398
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2,470,636 $ 2,338,748
Supplemental Information    
Cash paid during the years for: Interest    
Cash paid during the years for: Taxes   $ 126,500
NON-CASH FINANCING AND INVESTING ACTIVITIES    
Issuance of common stock as compensation   $ 84,000