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, 2013
Nov. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 326,017 $ 496,507
Adjustments to reconcile net income to net cash from operating activities:    
Amortization of deferred compensation cost 105,975 40,050
Depreciation and amortization 170,506 134,799
Deferred capital gain - building lease (16,858) (16,860)
Changes in operating assets and liabilities:    
Increase in accounts receivable (163,483) (303,234)
Decrease (Increase) in inventory 194,121 (2,764)
Decrease (Increase) in prepaid expense (72,462) 73,856
Decrease (Increase) in other assets 29,316 (27,813)
Increase in accounts payable 96,058 3,931
Decrease in accrued payroll and related taxes (28,095) (8,668)
Increase in accrued expense 48,510 1,531
(Decrease) Increase in accrued tax liability (90,503) 112,256
NET CASH PROVIDED BY OPERATING ACTIVITIES 599,102 503,591
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (146,908) (544,705)
Payments for patents (20,539) (1,000)
Purchase of certificates of deposit (1,231) (396)
NET CASH USED IN INVESTING ACTIVITIES (168,678) (546,101)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments on note payable to related parties (437,832) (30,829)
Payments on note payable (1,474) (1,543)
NET CASH USED IN FINANCING ACTIVITIES (439,306) (32,372)
NET DECREASE IN CASH AND CASH EQUIVALENTS (8,882) (74,882)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,930,321 1,757,223
CASH AND CASH EQUIVALENTS, END OF PERIOD 1,921,439 1,682,341
Cash paid during the periods for    
Interest 4,547 21,491
Taxes 260,773 145,793
Non Cash Activities    
Deferred compensation cost    $ 263,700