Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOWS

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STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Aug. 31, 2014
Aug. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 361,050 $ 164,063
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred compensation cost 65,750 80,100
Depreciation and amortization 130,680 112,527
Deferred capital gain - building lease (11,240) (11,238)
Changes in operating assets and liabilities:    
Decrease in accounts receivable 128,017 72,138
(Increase) decrease in inventory (621,794) 43,297
Increase in prepaid expense (28,889) (35,226)
Decrease in other assets    29,400
Increase in accounts payable 185,755 138,282
Increase in accrued payroll and related taxes 2,324 8,509
Increase in accrued expense 131,432 14,402
Decrease in accrued tax liability (123,089) (118,255)
NET CASH PROVIDED BY OPERATING ACTIVITIES 219,996 497,999
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (397,567) (132,996)
Purchase of certificates of deposit (629) (913)
Payments for patents (79,934) (20,539)
NET CASH USED IN INVESTING ACTIVITIES (478,130) (154,448)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments on note payable to related parties    (437,832)
Payments on notes payable    (1,474)
Proceeds from sale of securities, net of legal and other fees of $15,000 273,000   
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 273,000 (439,306)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 14,866 (95,755)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,227,398 1,930,321
CASH AND CASH EQUIVALENTS, END OF PERIOD 2,242,264 1,834,566
Supplemental Information    
Cash paid during the periods for Interest 512 4,547
Cash paid during the periods for Taxes 314,891 203,773
NON-CASH FINANCING AND INVESTING ACTIVITIES    
Issuance of common stock as compensation $ 84,000