PROFIRE ENERGY, INC.
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(Exact name of registrant as specified in its charter)
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Nevada
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001-36378
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20-0019425
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(State or other jurisdiction of incorporation)
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Commission File Number)
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(IRS Employer Identification No.)
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321 South 1250 West, Suite 1, Lindon, Utah
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(Address of principal executive offices)
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84042
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(Zip code)
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(801) 796-5127
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(Registrant's telephone number, including area code)
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N/A
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(Former name or former address, if changed since last report.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition
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Item 9.01.
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Financial Statements and Exhibits
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Exhibit Number
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Description
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99.1
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Press Release Announcing Financial Results
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PROFIRE ENERGY, INC.
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Date: November 9, 2015
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By:
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/s/ Brenton W. Hatch
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Brenton W. Hatch
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Chief Executive Officer
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Exhibit No.
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Description
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99.1
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Press Release Announcing Financial Results
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·
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Total revenues up 18% from Q1 FY2016
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·
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Net income of $778,907, or $0.01 per diluted share
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·
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Cash at period-end totaled $19.0 million
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·
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Net cash provided from operating activities during the six-month period totaled $5.1 million
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·
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Appointed Ryan Oviatt as new CFO
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·
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Announced next-generation burner management system, the PF3100
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·
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Completed significant cost reductions during the period; Operating Expenses reduced to $3.4 million for the quarter, a reduction of over $500,000 from Q1 FY2016
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PART I. FINANCIAL INFORMATION
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Item 1 Financial Information
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PROFIRE ENERGY, INC. AND SUBSIDIARIES
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Consolidated Balance Sheets
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ASSETS | ||||||||
September 30,
2015 |
March 31,
2015 |
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CURRENT ASSETS
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Cash and cash equivalents
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$
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18,954,290
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$
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14,144,796
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Accounts receivable, net
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6,706,532
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9,462,378
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Inventories
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9,954,358
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11,766,535
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Income tax receivable
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59,886
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-
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Prepaid expenses & other current assets
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395,385
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112,741
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Total Current Assets
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36,070,451
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35,486,450
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LONG-TERM ASSETS
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Deferred tax asset
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575,189
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501,921
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PROPERTY AND EQUIPMENT, net
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8,697,175
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9,275,965
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OTHER ASSETS
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Goodwill
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997,701
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997,701
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Intangible assets, net of accumulated amortization
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525,527
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594,019
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Total Other Assets
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1,523,228
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1,591,720
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TOTAL ASSETS
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$
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46,866,043
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$
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46,856,056
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LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES
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Accounts payable
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$
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909,115
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$
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1,040,530
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Accrued liabilities
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819,775
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332,229
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Income taxes payable
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148,426
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347,486
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Total Current Liabilities
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1,877,316
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1,720,245
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LONG-TERM LIABILITIES
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Deferred income tax liability
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629,232
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631,353
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TOTAL LIABILITIES
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2,506,548
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2,351,598
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STOCKHOLDERS' EQUITY
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Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued and outstanding
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-
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-
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Common shares: $0.001 par value, 100,000,000 shares authorized: 53,255,275 53,199,136 shares issued and outstanding, respectively
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53,255
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53,199
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Additional paid-in capital
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25,811,085
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25,525,050
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Accumulated other comprehensive income (loss)
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(2,640,128
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)
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(1,888,981
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)
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Retained earnings
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21,135,283
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20,815,188
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Total Stockholders' Equity
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44,359,495
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44,504,457
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$
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46,866,043
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$
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46,856,056
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PROFIRE ENERGY, INC. AND SUBSIDIARIES
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||||||||||||||||
Consolidated Statements of Operations and Other Comprehensive Income (Loss)
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For the Three Months Ended
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For the Six Months Ended
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|||||||||||||||
September 30,
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September 30,
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|||||||||||||||
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2015 | 2014 | 2015 | 2014 | ||||||||||||
REVENUES
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Sales of goods, net
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$
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7,291,846
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$
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14,628,718
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$
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13,503,816
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$
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26,945,230
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Sales of services, net
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805,448
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1,092,214
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1,470,721
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1,920,536
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Total Revenues
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8,097,294
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15,720,932
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14,974,537
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28,865,766
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COST OF SALES
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Cost of goods sold-product
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3,445,188
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6,469,992
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6,413,106
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11,537,619
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Cost of goods sold-services
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623,992
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701,497
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1,219,530
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1,341,604
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Total Cost of Goods Sold
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4,069,180
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7,171,489
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7,632,636
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12,879,223
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GROSS PROFIT
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4,028,114
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8,549,443
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7,341,901
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15,986,543
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OPERATING EXPENSES
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General and administrative expenses
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1,660,092
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2,866,401
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3,638,576
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5,275,470
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Research and development
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295,146
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538,793
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599,635
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810,020
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Payroll expenses
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1,259,770
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1,767,730
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2,722,425
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3,033,429
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Depreciation and amortization expense
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137,999
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122,928
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245,454
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247,643
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Total Operating Expenses
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3,353,007
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5,295,852
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7,206,090
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9,366,562
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INCOME FROM OPERATIONS
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675,107
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3,253,591
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135,811
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6,619,981
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OTHER INCOME (EXPENSE)
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Gain on disposal of fixed assets
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754
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-
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19,391
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-
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Other (expense) income
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352,310
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(257
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)
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243,320
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2,864
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Interest income
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5,517
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7,543
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26,640
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7,780
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Total Other Income (Expense)
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358,581
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7,286
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289,351
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10,644
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NET INCOME BEFORE INCOME TAXES
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1,033,688
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3,260,877
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425,162
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6,630,625
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INCOME TAX EXPENSE
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254,781
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1,182,676
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105,067
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2,331,718
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NET INCOME
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$
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778,907
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$
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2,078,201
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$
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320,095
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$
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4,298,907
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FOREIGN CURRENCY TRANSLATION GAIN (LOSS)
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$
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(1,084,519
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)
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$
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(455,114
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)
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$
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(751,147
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)
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$
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(158,678
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)
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TOTAL COMPREHENSIVE INCOME (LOSS)
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$
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(305,612
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)
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$
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1,623,087
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$
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(431,052
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)
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$
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4,140,229
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BASIC EARNINGS PER SHARE
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$
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0.01
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$
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0.04
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$
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0.01
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$
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0.09
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FULLY DILUTED EARNINGS PER SHARE
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$
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0.01
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$
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0.04
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$
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0.01
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$
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0.08
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||||||||
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
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53,236,979
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52,482,823
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53,230,892
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50,222,367
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FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
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53,344,291
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53,126,287
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53,338,204
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50,865,831
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PROFIRE ENERGY, INC. AND SUBSIDIARIES
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||||||||
Consolidated Statements of Cash Flows
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||||||||
For the Six Months Ended
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||||||||
September 30,
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||||||||
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2015 | 2014 | ||||||
OPERATING ACTIVITIES
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||||||||
Net Income
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$
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320,095
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$
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4,298,907
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Adjustments to reconcile net income to net cash provided by operating activities:
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||||||||
Depreciation and amortization expense
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476,548
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247,643
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Gain on disposal of fixed assets
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(19,391
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)
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-
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Common stock issued for services
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-
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168,004
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Bad debt expense
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86,494
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-
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Stock options issued for services
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325,334
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712,820
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Unrealized foreign exchange gain
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-
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(128,429
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)
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Changes in operating assets and liabilities:
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||||||||
Changes in accounts receivable
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2,567,419
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(5,961,481
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)
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Changes in income tax receivable
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(59,886
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)
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-
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Changes in inventories
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1,600,797
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(1,634,627
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)
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Changes in prepaid expenses
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(262,547
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)
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(200,631
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)
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Changes in deferred tax asset
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(73,268
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)
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79,208
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Changes in accounts payable and accrued liabilities
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373,484
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2,329,740
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Changes in income taxes payable
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(193,908
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)
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1,448,850
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Net Cash Provided by Operating Activities
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5,141,171
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1,360,004
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INVESTING ACTIVITIES
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Proceeds from disposal of equipment
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119,935
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-
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Purchase of fixed assets
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(28,572
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)
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(3,720,259
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)
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Net Cash Provided by (Used in) Investing Activities
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91,363
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(3,720,259
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)
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FINANCING ACTIVITIES
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Proceeds from stock issued for cash
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-
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18,000,000
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Stock offering costs
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-
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(1,529,057
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)
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Value of equity awards surrendered by employees for tax liability
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(39,243
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)
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-
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Stock issued in exercise of stock options
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-
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134,711
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Net Cash Provided by (Used in) Financing Activities
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(39,243
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)
|
16,605,654
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Effect of exchange rate changes on cash
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(383,797
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)
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(30,249
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)
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NET INCREASE IN CASH
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4,809,494
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14,215,150
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||||||
CASH AT BEGINNING OF PERIOD
|
14,144,796
|
4,456,674
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||||||
CASH AT END OF PERIOD
|
$
|
18,954,290
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$
|
18,671,824
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SUPPLEMENTAL DISCLOSURES OF
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||||||||
CASH FLOW INFORMATION
|
||||||||
CASH PAID FOR:
|
||||||||
Income taxes
|
$
|
292,082
|
$
|
-
|
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