Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOWS (UNAUDITED)

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STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
 9 Months Ended
Nov. 30, 2012
Nov. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 496,507 $ 498,279
Adjustments to reconcile net income to net cash from operating activities:    
Amortization of deferred compensation cost 40,050   
Depreciation and amortization 134,799 73,391
Deferred capital gain - building lease (16,860) (16,860)
Changes in operating assets and liabilities:    
Increase in accounts receivable (303,234) (164,257)
Increase in inventory (2,764) (393,726)
Decrease (Increase) in prepaid expense 73,856 (29,811)
Increase in other assets (27,813)   
Decrease in deferred tax asset    80,799
Increase in accounts payable 3,931 151,638
(Decrease) Increase in accrued payroll and related taxes (8,668) 397
Increase in accrued expense 1,531 58,464
Increase in accrued tax liability 112,256   
NET CASH PROVIDED BY OPERATING ACTIVITIES 503,591 258,314
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (544,705) (203,407)
Payments for patents (1,000)   
Purchase of certificates of deposit (396) (101,533)
NET CASH USED IN INVESTING ACTIVITIES (546,101) (304,940)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuing common stock    121,500
Payments to note payable to related parties (30,829) (29,038)
Payments on notes payable (1,543) (1,433)
Excess tax benefits from share-based payment arrangements    198,951
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (32,372) 289,980
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (74,882) 243,354
CASH AND CASH EQUIVILENTS, BEGINNING OF PERIOD 1,757,223  
CASH AND CASH EQUIVILENTS, END OF PERIOD 1,682,341  
Cash paid during the period for:    
Interest 21,491 24,099
Taxes 145,793 67,944
Non Cash Activities:    
Deferred compensation cost $ 263,700