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: June 13, 2016
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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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·
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Total revenues of $27.1 million
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·
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Generated significant positive operating cash flow
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·
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Positive net income for the year
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·
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Remained debt-free
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·
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Increased customer base to more than 300 customers
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PROFIRE ENERGY, INC. AND SUBSIDIARIES
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||||||||
Consolidated Balance Sheets
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For the Years Ending March 31,
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ASSETS
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2016
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2015
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CURRENT ASSETS
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Cash and cash equivalents
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$
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21,292,595
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$
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14,144,796
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Accounts receivable, net
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4,132,137
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9,462,378
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Inventories
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11,046,682
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11,766,535
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Income tax receivable
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268,326
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—
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Prepaid expenses & other current assets
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315,757
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112,741
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Total Current Assets
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37,055,497
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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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452,431
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501,921
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PROPERTY AND EQUIPMENT, net
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8,232,911
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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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529,300
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594,019
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Total Other Assets
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1,527,001
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1,591,720
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TOTAL ASSETS
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$
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47,267,840
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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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893,822
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$
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1,040,530
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Accrued liabilities
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620,783
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332,229
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Income taxes payable
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335,375
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347,486
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Total Current Liabilities
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1,849,980
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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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632,732
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631,353
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TOTAL LIABILITIES
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2,482,712
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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: $0.001 par value, 100,000,000 shares authorized: 53,256,296 and 53,199,136 shares issued and outstanding, respectively
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53,256
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53,199
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Additional paid-in capital
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26,164,622
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25,525,052
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Accumulated other comprehensive loss
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(2,282,682
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)
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(1,888,981
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)
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Retained earnings
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20,849,932
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20,815,188
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Total Stockholders' Equity
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44,785,128
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44,504,458
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$
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47,267,840
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$
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46,856,056
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These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.
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PROFIRE ENERGY, INC. AND SUBSIDIARIES
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Consolidated Statements of Income and Other Comprehensive Income
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For the Years Ending March 31,
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2016
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2015
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REVENUES
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Sales of goods, net
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$
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23,992,324
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$
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47,768,556
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Sales of services, net
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3,080,122
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3,410,836
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Total Revenues
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27,072,446
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51,179,392
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COST OF SALES
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Cost of goods sold-product
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11,027,114
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21,240,363
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Cost of goods sold-services
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2,405,012
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2,716,272
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Total Cost of Goods Sold
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13,432,126
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23,956,635
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GROSS PROFIT
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13,640,320
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27,222,757
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OPERATING EXPENSES
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General and administrative expenses
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12,264,442
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16,296,156
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Research and development
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899,013
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1,832,671
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Depreciation and amortization expense
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516,786
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558,231
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Total Operating Expenses
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13,680,241
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18,687,058
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INCOME FROM OPERATIONS
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(39,921
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)
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8,535,699
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OTHER INCOME (EXPENSE)
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Gain on sale of fixed assets
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20,278
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8,014
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Other (expense) income
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144,937
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21,865
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Interest income
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37,278
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26,010
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Total Other Income (Expense)
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202,493
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55,889
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NET INCOME BEFORE INCOME TAXES
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162,572
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8,591,588
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INCOME TAX EXPENSE
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127,828
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2,843,905
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NET INCOME
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$
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34,744
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$
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5,747,683
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FOREIGN CURRENCY TRANSLATION GAIN (LOSS)
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$
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(393,701
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)
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$
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(1,657,930
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)
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TOTAL COMPREHENSIVE INCOME (LOSS)
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$
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(358,957
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)
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$
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4,089,753
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BASIC EARNINGS PER SHARE
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$
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0.00
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$
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0.11
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FULLY DILUTED EARNINGS PER SHARE
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$
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0.00
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$
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0.11
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BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
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53,243,151
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51,609,760
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FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
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53,558,942
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51,680,775
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These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.
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PROFIRE ENERGY, INC. AND SUBSIDIARIES
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Consolidated Statements of Stockholders' Equity
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Additional
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Other
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Total
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Common Stock
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Paid-In
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Comprehensive
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Retained
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Stockholders'
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||||||||||||||||||||
Shares
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Amount
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Capital
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Loss
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Earnings
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Equity
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|||||||||||||||||||
Balance, March 31, 2014
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47,836,543
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$
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47,836
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$
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6,496,980
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$
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(231,051
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)
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$
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15,067,505
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21,381,270
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Stock issued in exercise of stock options
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596,635
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597
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327,365
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-
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-
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327,962
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Stock issuance, less offering costs of $1,529,057
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4,500,000
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4,500
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16,420,188
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-
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-
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16,424,688
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Stock issued for asset acquisition
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265,958
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266
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999,734
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-
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-
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1,000,000
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Fair value of options vested
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-
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1,280,785
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-
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-
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1,280,785
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Foreign currency translation
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-
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-
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-
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(1,657,930
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)
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-
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(1,657,930
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)
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Net income for the year ended March 31, 2015
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-
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-
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-
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-
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5,747,683
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5,747,683
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Balance, March 31, 2015
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53,199,136
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$
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53,199
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$
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25,525,052
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$
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(1,888,981
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)
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$
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20,815,188
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44,504,458
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Fair value of options vested
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-
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-
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565,646
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-
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-
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565,646
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Stock issued in exercise of stock options
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57,160
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57
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73,924
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-
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-
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73,981
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Foreign currency translation
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-
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-
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-
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(393,701
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)
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-
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(393,701
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)
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Net income for the year ended March 31, 2016
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-
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-
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-
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-
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34,744
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34,744
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Balance, March 31, 2016
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53,256,296
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$
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53,256
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$
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26,164,622
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$
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(2,282,682
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)
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$
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20,849,932
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44,785,128
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These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.
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PROFIRE ENERGY, INC. AND SUBSIDIARIES
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Consolidated Statements of Cash Flows
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For the Years Ending March 31,
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2016
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2015
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OPERATING ACTIVITIES
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Net Income
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$
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34,744
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$
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5,747,683
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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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989,484
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1,140,319
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Gain on sale of fixed assets
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(20,278
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)
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(8,014
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)
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Bad debt expense
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143,192
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(7,577
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)
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Stock options issued for services
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678,971
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1,280,785
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Changes in operating assets and liabilities:
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Changes in accounts receivable
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5,114,485
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(912,606
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)
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Changes in income tax receivable
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(268,327
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)
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-
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Changes in inventories
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641,410
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(5,472,869
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)
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Changes in prepaid expenses
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(171,411
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)
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(80,770
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)
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Changes in deferred tax asset/liability
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49,490
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(80,943
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)
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Changes in accounts payable and accrued liabilities
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148,921
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(302,782
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)
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Changes in income taxes payable
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(7,748
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)
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(618,146
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)
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Net Cash Provided by Operating Activities
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7,332,933
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685,080
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INVESTING ACTIVITIES
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Proceeds from sale of equipment
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158,641
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7,867
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Cash paid for asset acquisition
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-
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(750,000
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)
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Purchase of fixed assets
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(62,465
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)
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(6,167,945
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)
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Net Cash Provided by (Used in) Investing Activities
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96,176
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(6,910,078
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)
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FINANCING ACTIVITIES
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Proceeds from stock issued for cash, net of stock offering costs
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-
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16,424,688
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Value of equity awards surrendered by employees for tax liability
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(39,342
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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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327,961
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||||||
Net Cash Provided by (Used in) Financing Activities
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(39,342
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)
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16,752,649
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Effect of exchange rate changes on cash
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(241,968
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)
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(839,529
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)
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NET CHANGE IN CASH
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7,147,799
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9,688,122
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||||||
CASH AT BEGINNING OF PERIOD
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14,144,796
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4,456,674
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||||||
CASH AT END OF PERIOD
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$
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21,292,595
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$
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14,144,796
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
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||||||||
CASH PAID FOR:
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||||||||
Interest
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$
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-
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$
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17,043
|
||||
Income taxes
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$
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127,828
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$
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3,471,027
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||||
NON CASH INVESTING AND FINANCING ACTIVITIES:
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Stock issued for Asset acquisition
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$
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-
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$
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1,000,000
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These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.
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