Restatement Of Financial Statements

9 Months Ended

Nov. 30, 2014

Restatement Of Financial Statements [Abstract]

RESTATEMENT OF FINANCIAL STATEMENTS

13.     RESTATEMENT OF FINANCIAL STATEMENTS

Subsequent to the issuance of the interim financial statement for August 31, 2014 the Company identified an error in the recorded value of one device in the Company’s work in process inventory. To correct this error and make the corresponding adjustments to other items in the Company’s financial statements and the corresponding revisions to related disclosure, the Company restated certain line items in the unaudited consolidated financial statements.

The following summarizes the impact of the restatement on the affected line items in the Condensed Balance Sheet as of August 31, 2014 (Unaudited, in thousands):

	Condensed Balance Sheet as of August 31, 2014
	As Previously
	Reported		Adjustments			As Restated
Inventories, net	$	4,929	$	(449	)	$	4,480
Total Current Assets		12,873		(449	)		12,424
Total Assets		13,376		(449	)		12,927
Retained Earnings		9,943		(449	)		9,494
Total Stockholders’ Equity		12,454		(449	)		12,005
Total Liabilities and Stockholders’ Equity		13,376		(449	)		12,927

The following summarizes the impact of the restatement on the affected line items in the Condensed Statements of Income for the three and six months ended August 31, 2014 (Unaudited, in thousands except for per share amounts):

	Condensed Statement of Income for the
	Three Months Ended August 31, 2014
	As Previously
	Reported		Adjustments			As Restated
Cost of Sales	$	1,218	$	449		$	1,667
Gross Profit		1,087		(449	)		638
Operating Income		701		(449	)		252
Income before provision for income taxes		703		(449	)		254
Net income		700		(449	)		251
Total comprehensive income		701		(449	)		252
Income Per Share from operating income - Basic		.32		(.20	)		.12
Income Per Share from operating income - Diluted		.29		(.19	)		.10
Net Income Per Share - Basic		.32		(.20	)		.12
Net Income Per Share - Diluted		.29		(.19	)		.10

	Condensed Statement of Income for the
	Six Months Ended August 31, 2014
	As Previously
	Reported		Adjustments			As Restated
Cost of Sales	$	3,032	$	449		$	3,481
Gross Profit		1,578		(449	)		1,129
Operating Income		856		(449	)		407
Income before provision for income taxes		870		(449	)		421
Net income		863		(449	)		414
Total comprehensive income		863		(449	)		414
Income Per Share from operating income - Basic		.39		(.20	)		.19
Income Per Share from operating income - Diluted		.36		(.19	)		.17
Net Income Per Share - Basic		.40		(.21	)		.19
Net Income Per Share - Diluted		.36		(.19	)		.17

The following summarizes the impact of the restatement on the affected line items in the Condensed Statements of Cash Flows for the six months ended August 31, 2014 (Unaudited, in thousands):

	Condensed Statements of Cash Flow for
	Six Months Ended August 31, 2014
	As Previously
	Reported			Adjustments			As Restated
Cash Flows from Operating Activities:
Net income	$	863		$	(449	)	$	414
Inventories, net		(613	)		449			(164	)
Total Adjustments		(181	)		449			268