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, 2011
Aug. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Income $ 316,032 $ 189,652
Adjustments to reconcile net income to net cash from operating activities:    
Stock based Compensation   12,511
Depreciation and amortization 46,278 31,225
Deferred capital gain - building lease (11,240) (11,240)
Changes in operating assets and liabilities:    
Decrease in accounts receivable 105,238 249,316
(Increase) decrease in inventory (421,743) 1,688
Decrease (increase) in prepaid expense 7,488 (53,722)
Decrease in deferred tax asset 18,449 132,339
Increase (decrease) in accounts payable 13,864 (9,154)
Increase in accrued payroll and related taxes 19,631 9,160
Increase (decrease) in accrued expense 77,791 (67,043)
(Decrease) in warranty liability   (1,825)
(Decrease) in accrued interest   (54,183)
NET CASH PROVIDED BY OPERATING ACTIVITIES 171,788 428,724
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (88,676) (73,481)
Reduction in patents   860
NET CASH USED IN INVESTING ACTIVITIES (88,676) (72,621)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuing common stock 121,500  
Payments on note payable to related parties (19,212) (118,097)
Payments on notes payable (946) (28,571)
Excess tax benefits from share-based payment arrangements 202,076  
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 303,418 (146,668)
NET INCREASE IN CASH AND CASH EQUIVALENTS 386,530 209,435
CASH BEGINNING OF YEAR 1,322,250 813,383
CASH END OF YEAR 1,708,780 1,022,818
Cash paid during the year for:    
Interest 15,899 17,438
Taxes 3,125  
Non Cash Activities:    
Conversion of Preferred Stock into Common Stock   $ 100,000