Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOWS (Unaudited)

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STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 3 Months Ended
May 31, 2016
May 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (233,314) $ (64,640)
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:    
Amortization of deferred compensation cost 7,000 $ 7,000
Stock based compensation expense 50,950
Depreciation and amortization 70,156 $ 64,719
Deferred capital gain - building lease (5,620) (5,618)
Deferred taxes $ (15,144) (2,380)
Loss on disposal of fixed assets 4,606
Allowance for returns and doubtful accounts $ (10,312) 951
Changes in operating assets and liabilities:    
Decrease in accounts receivable 6,555 148,234
Increase in inventory (83,290) (186,000)
Increase in prepaid expense (186,259) $ (168,325)
Increase in other assets (350)
Increase in accounts payable 300,402 $ 154,275
(Decrease) Increase in accrued payroll and related taxes (36,686) 123,885
Increase (Decrease) in accrued expense 3,228 $ (65,606)
Decrease in accrued income tax liability (129,497)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES (262,181) $ 11,101
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (54,649) (61,344)
Payments for patents (23,366) (36,356)
NET CASH USED IN INVESTING ACTIVITIES (78,015) $ (97,700)
CASH FLOWS FROM FINANCING ACTIVITIES    
Purchase of treasury stock (1,105)
NET CASH USED IN FINANCING ACTIVITIES (1,105)
NET DECREASE IN CASH AND CASH EQUIVALENTS (341,301) $ (86,599)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 4,201,949 2,557,235
CASH AND CASH EQUIVALENTS, END OF YEAR $ 3,860,648 $ 2,470,636
Cash paid during the years for:    
Interest
Taxes $ 91,600
NON-CASH FINANCING AND INVESTING ACTIVITIES    
Issuance of common stock as compensation