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STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Income $ 1,265,703 $ 541,177
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred compensation cost 7,000
Stock based compensation expense 154,925 87,271
Depreciation and amortization 228,900 229,178
Gain on sale of fixed asset (6,000)
Deferred capital gain - building lease (16,860) (16,860)
Deferred taxes 10,834 8,843
Provision for returns and doubtful accounts 58,339
Changes in operating assets and liabilities:    
Decrease/(Increase) in accounts receivable 351,319 (243,428)
Increase in inventory (290,722) (225,177)
(Increase)/Decrease in prepaid expense and other assets (177,346) 37,753
Increase/(Decrease) in accounts payable 137,521 (409,171)
Decrease in accrued payroll and related taxes (213,700) (17,253)
(Decrease)/Increase in accrued expense (30,823) 136,045
(Decrease)/Increase in accrued tax liability (60,852) 303,349
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,352,899 497,066
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for capital expenditures (188,006) (160,946)
Purchase of certificate of deposit (1,500,000)
Proceeds on sale of fixed assets 6,000
Payments for patents (137,858) (70,556)
Proceeds/(reinvested earnings) from certificates of deposit 92,266 (1,196)
NET CASH USED IN INVESTING ACTIVITIES (1,727,598) (232,698)
CASH FLOWS FROM FINANCING ACTIVITIES    
Stock issuances 51,250
Payment for cancelled shares (1,755) (19,360)
Purchase of treasury stock (484)
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES 49,495 (19,844)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (325,204) 244,524
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3,974,536 3,417,183
CASH AND CASH EQUIVALENTS, END OF PERIOD 3,649,332 3,661,707
Cash paid during the periods for:    
Interest
Taxes 378,000
NON-CASH FINANCING AND INVESTING ACTIVITIES    
Issuance of common stock as compensation $ 103,333 $ 101,250

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