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<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1.     <font style="text-decoration: underline;">ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></font></div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
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<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The unaudited condensed financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.</font></div>
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<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended February 28, 2013.</font></div>
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<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;">Cash and Cash Equivalents</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Cash and cash equivalents include demand deposits and money market accounts.</font></div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;">Investment in Treasury Bills and Certificates of Deposit</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Investment in treasury bills and certificates of deposit include treasury bills with maturities of one year or less, and certificates of deposit with maturities from one to three years, and is stated at market value.</font></div>
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<div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Face Value as of 08/31/13</font></div>
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<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Tbills</font></div>
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font-family: 'times new roman'; font-size: 10pt;"> </font></td>
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<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">CD</font></div>
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<td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="12%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,013,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
</table>
</div>
<div style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div>
</div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of August 31, 2013, contractual maturities of the Company's available-for-sale non-equity investments were as follows:</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 63pt; margin-right: 0pt;"> </div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 63pt; margin-right: 0pt;">
<div align="left">
<table style="width: 80%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td width="76%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Face value</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Fair Value</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
</tr>
<tr>
<td width="76%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td width="10%" valign="bottom" colspan="2">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(In thousands)</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="10%" valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="76%" valign="bottom">
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right:
0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Maturing within one year</font></div>
</td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,266,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,267,188</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="white">
<td width="76%" valign="bottom" style="padding-bottom: 2px;">
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Maturing in one to three years</font></div>
</td>
<td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">747,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">747,443</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="76%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,013,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,014,631</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
</table>
</div>
<div style="text-indent: 0pt; display: block;"> </div>
</div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;">Fair Value of Financial Instruments</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;"></font> </div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal;
letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">ASC Topic 820, “Fair Value Measurements and Disclosures” defines “fair value” as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  ASC 820 also sets forth a valuation hierarchy of the inputs (assumptions that market participants would use in pricing an asset or liability) used to measure fair value.  This hierarchy prioritizes the inputs into the following three levels:</font></div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;"> </div>
<div align="center" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;">
<table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" bgcolor="white" cellspacing="0" cellpadding="0">
<tr>
<td width="5%"><font style="font-family: 'times new roman'; font-size: 10pt;">Level 1.</font></td>
<td width="95%"><font style="font-family: 'times new roman'; font-size: 10pt;"> Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active<font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> markets.</font></font></td>
</tr>
<tr>
<td width="5%"><font style="font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="95%"><font style="font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr>
<td width="5%"><font style="font-family: 'times new roman'; font-size: 10pt;">Level 2.</font></td>
<td width="95%"><font style="font-family: 'times new roman'; font-size: 10pt;">Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either<font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> directly or indirectly.</font></font></td>
</tr>
<tr>
<td width="5%"><font style="font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="95%"><font style="font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr>
<td width="5%"><font style="font-family: 'times new roman'; font-size: 10pt;">Level 3.</font></td>
<td width="95%"><font style="font-family: 'times new roman'; font-size: 10pt;">Inputs that are generally unobservable.  These inputs may be used with internally developed<font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> methodologies that results in management’s best estimate of fair value.</font></font></td>
</tr>
</table>
</div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company’s brokered Treasury bills and certificates of deposits are subject to level 1 fair value measurement.</font></div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The carrying amounts of the Company’s short-term financial instruments, including accounts receivable, accounts payable, accrued expenses and other liabilities approximate their fair value due to the relatively short period to maturity for these instruments. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities, and the carrying amount of the long-term debt approximates fair value.</font></div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;">Accounts Receivable</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal;
widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Accounts receivable consists of unsecured credit extended to the Company’s customers in the ordinary course of business.  The Company reserves for any amounts deemed to be uncollectible based on past collection experiences and an analysis of outstanding balances, using an allowance account.  The allowance amount was $2,000 as of August 31, 2013 and February 28, 2013.</font></div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;">Shipping and Handling</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Shipping and handling costs billed to customers are recorded in net sales.  Shipping costs incurred by the Company are recorded in cost of sales.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;">  </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;">Inventories</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Inventories are stated at the lower of cost or market.  Cost is determined using the “first-in, first-out” (FIFO) method.  The Company buys raw material only to fill customer orders.  Excess raw material is created only when a vendor imposes a minimum buy in excess of actual requirements.  Such excess material will usually be utilized to meet the requirements of the customer’s subsequent orders.  If excess material is not utilized after two fiscal years, it is fully reserved.  Any inventory item once designated as reserved is carried at zero value in all subsequent valuation activities.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company’s inventory valuation policy is as follows:</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;">
<div align="left">
<table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td width="20%" valign="top">
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Raw material /Work in process:</font></div>
</td>
<td width="80%" valign="top">
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">All material purchased, processed, and/or used in the last two fiscal years is valued at the lower of its acquisition cost or market.  All material not purchased/used in the last two fiscal years is fully reserved.</font></div>
</td>
</tr>
<tr>
<td width="20%" valign="top"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;"> </font></td>
<td width="80%" valign="top"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr>
<td width="20%" valign="top">
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Finished goods:</font></div>
</td>
<td width="80%" valign="top">
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">All finished goods with firm orders for later delivery are valued (material and overhead) at the lower of cost or market.  All finished goods with no orders are fully reserved.</font></div>
</td>
</tr>
<tr>
<td width="20%" valign="top"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="80%" valign="top"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr>
<td width="20%" valign="top">
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Direct labor costs:</font></div>
</td>
<td width="80%" valign="bottom">
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Direct labor costs are allocated to finished goods and work in process inventory  based on engineering estimates of the amount of man-hours required from the different direct labor departments to bring each device to its particular level of   completion.</font></div>
</td>
</tr>
</table>
</div>
</div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;">Revenue Recognition</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Revenue is recognized in accordance with SEC Staff Accounting Bulletin No. 104, <font style="font-style: italic; display: inline;">Revenue Recognition</font>.  This pronouncement requires that four basic criteria be met before revenue can be recognized: 1) there is evidence that an arrangement exists; 2) delivery has occurred; 3) the fee is fixed or determinable; and 4) collectability is reasonably assured. We recognize revenue upon determination that all criteria for revenue recognition have been met.  The criteria are usually met at the time of product shipment. Shipping terms are generally FCA (Free Carrier) shipping point.</font></div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;">Financial Statement Estimates</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The preparation of condensed financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from these estimates, and the differences could be material.  Such estimates include depreciable life, valuation allowance, and allowance for inventory obsolescence.</font></div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration:
underline;">Recent Accounting Pronouncements</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">No recent accounting pronouncements affecting the Company were issued by the Financial Accounting Standards Board or other standards-setting bodies.</font><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"></font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2.           <font style="display: inline; text-decoration: underline;">ENVIRONMENTAL REGULATION</font></font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">While the Company believes that it has the environmental permits necessary to conduct its business and that its operations conform to present environmental regulations, increased public attention has been focused on the environmental impact of semiconductor manufacturing operations.  The Company, in the conduct of its manufacturing operations, has handled and does handle materials that are considered hazardous, toxic or volatile under federal, state and local laws and, therefore, is subject to regulations related to their use, storage, discharge and disposal.  No assurance can be made that the risk of accidental release of such materials can be completely eliminated.  In the event of a violation of environmental laws, the Company could be held liable for damages and the costs of remediation. In addition, the Company, along with the rest of the semiconductor industry, is subject to variable interpretations and governmental priorities concerning environmental laws and regulations.</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Environmental statutes have been interpreted to provide for joint and several liability and strict liability regardless of actual fault.  There can be no assurance that the Company will not be required to incur costs to comply with, or that the operations, business or financial condition of the Company will not be materially adversely affected by current or future environmental laws or regulations.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">3.           <font style="display: inline; text-decoration: underline;">ENVIRONMENTAL LIABILITIES</font></font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company entered into an Ability to Pay Multi-Site Settlement Agreement with the United States Environmental Protection Agency (“USEPA”), effective February 24, 2006 (“Settlement Agreement”), to resolve the Company’s alleged liability to USEPA at five Superfund sites.  The Company made payments to USEPA on February 14, 2013 and May 22, 2013 in the amounts of $10,000 and $7,710 respectively, that completed the Company’s financial obligations under the Settlement Agreement..  The Company has no further financial obligations to USEPA under the Settlement Agreement. In consideration of the payments made by the Company under the Settlement Agreement, USEPA agreed  not to sue or take any administrative action against the Company with regard to any of the Superfund sites.</font></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On March 27, 2013, the Company entered into a Settlement Agreement (the "Agreement") with FDEP, which resolved all of the Company’s remaining obligations under a Consent Final Judgment previously entered  into with the Florida Department of Environmental Protection (“FDEP”) dated October 21, 1993, and amended on September 27, 1995.   Pursuant to the terms and conditions of the Agreement, the Company paid to FDEP the total sum of $165,000 (“Settlement Amount”), in full settlement of the Company’s obligations under the Consent Final Judgment.  Upon the Company’s payment of the Settlement Amount to FDEP on March 29, 2013, FDEP released the Company from any remaining obligations under the Consent Final Judgment, as amended, as well as any remaining obligations of the Company to FDEP under the Company's Fourth Amended Joint Plan of Reorganization (the "Confirmed Plan"), confirmed by order of the United States Bankruptcy Court for the Southern District of Florida (“Bankruptcy Court”) on August 20, 1993, in connection with the Company’s bankruptcy proceeding filed in 1992.  The Company has no further obligations to FDEP under the Confirmed Plan or the Consent Final Judgment, as amended.</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">On September 9, 2013, the Company received notice that the Company was named as a defendant in a Third Party Complaint filed by the Clarkstown Landfill Joint Defense Group (“JDG”).  In the Third Party Complaint, the JDG contends that the Company is liable for an equitable share of the JDG’s settlement payment to the New York State Department of Environmental Conservation (“NYSDEC”) in connection with response costs incurred by NYSDEC  to remediate the Clarkstown Landfill Site located in the Town of Clarkstown, Rockland County, New York (the “Clarkstown Landfill Site”).   The JDG has offered to settle its claim against the Company for the sum of $125,000.  The Company contends the JDG’s claim derives from NYSDEC’s claim against the Company as a result of the Company’s alleged disposal of wastes at the Clarkstown Landfill Site prior to the closing of the Company’s former Tappan facility in the mid-1980’s, a claim that was discharged in bankruptcy as a result of the Bankruptcy Court’s August 20, 1993 order.  By letter dated September 11,2013, the Company advised the JDG’s attorney that any attempt to serve the Third Party Complaint on the Company would violate the express terms and conditions of the Bankruptcy Court’s August 20, 1993 order and that the Company would seek a subsequent order from the Bankruptcy Court preventing the JDG from pursuing its claim against the Company.</font></div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">4.           <font style="text-decoration: underline; display: inline;">EARNINGS PER SHARE</font></font></div><div style="display: block; text-indent: 0pt;"> </div><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">The shares used in the computation of the Company’s basic and diluted earnings per common share were as follows:</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="left"> 
<table style="width: 100%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="52%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="22%" valign="bottom" style="border-bottom: black 2px solid;" colspan="6"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">For the three months ended </font></div><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">August 31,</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="22%" valign="bottom" style="border-bottom: black 2px solid;" colspan="6"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">For the six months ended </font></div><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">August 31,</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr><td width="52%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2013</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2012</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2013</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2012</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="52%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Weighted average common shares outstanding</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,177,832</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,249,931</font></td><td
width="1%" valign="bottom"><font style="font-size:
10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,177,832</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,259,469</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="52%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Dilutive effect of employee stock options</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">224,659</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">211,173</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">225,209</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">213,026</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="52%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Weighted average common shares outstanding, assuming dilution</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2,402,491</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2,461,104</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display:
inline;">2,403,041</font></font></td><td width="1%" nowrap="nowrap" valign="bottom"
style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2,472,495</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr></table></div><div style="display: block; text-indent: 0pt;"> </div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"></font> </div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Weighted average common shares outstanding, assuming dilution, include the incremental shares that would be issued upon the assumed exercise of stock options.  For the three-month periods ended August 31, 2013 and August 31, 2012 respectively, 12,300 and 13,500 shares underlying the Company's stock options were excluded from the calculation of diluted earning per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares, and therefore their inclusion would have been anti-dilutive.</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">These options could be dilutive in the future if the average share price increases and is greater than the exercise price of these options.</font></div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">5.           <font style="text-decoration: underline; display: inline;">INVENTORIES</font></font></div><div style="display: block; text-indent: 0pt;"> </div><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">As of August 31, 2013, inventories consist of the following:</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="left" style="margin-left: 27pt;"><table style="width: 90%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="64%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Gross</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Reserve</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Net</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Raw Materials</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">1,908,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">(348,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">1,560,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Work-In-Process</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">3,429,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">(1,243,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,186,000</font></td><td width="1%" nowrap="nowrap" valign="bottom"
style="text-align: left;"><font style="font-size: 10pt;
font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Finished Goods</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">1,203,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(680,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">523,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">     Totals</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">6,540,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(2,271,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">4,269,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr></table></div><div style="display: block; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></div><div style="display: block; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">As of February 28, 2013, inventories consist of the following:</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="left" style="margin-left: 27pt;"><table style="width: 90%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="64%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Gross</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right:
0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display:
inline;">Reserve</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Net</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Raw Materials</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,131,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">(372,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">1,759,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Work-In-Process</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">3,339,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">(1,206,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,133,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Finished Goods</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">750,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(609,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom"
style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"
style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">141,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">     Totals</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">6,220,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(2,187,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">4,033,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr></table></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6.           <font style="display: inline; text-decoration: underline;">INCOME TAXES</font></font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">At August 31, 2013, the Company has net operating loss carryforwards of approximately $15,161,000 that expire through 2031.  Such net operating losses are available to offset future taxable income, if any.  As the utilization of such net operating losses for tax purposes is not assured, the deferred tax asset has been fully reserved through the recording of a 100% valuation allowance.  Should a cumulative change in the ownership of more than 50% occur within a three-year period, there could be an annual limitation on the use of the net operating loss carryforwards.</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total net deferred taxes are comprised of the following at August 31, 2013 and February 28, 2013:</font></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 27pt;"><table style="width: 90%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Deferred Tax Asset (Liability):</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">8/31/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">2/28/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Current</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left:
0pt; margin-right: 0pt;">Allowance
for doubtful accounts</div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Inventory allowance</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">863,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">831,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Section 263A capitalized costs</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">389,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">389,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total current deferred tax assets</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,253,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,221,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Valuation allowance</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%"
valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style:
solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">(1,253,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">(1,221,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Long-term</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Loss carryforwards</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom"
style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,330,000</font></td><td width="1%"
nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,330,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Depreciation</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">(71,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">(58,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total long-term deferred tax assets</font></div></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,259,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,272,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Valuation allowance</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">(5,259,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">(5,272,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color:
black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%"
valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"><br /> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The change in the valuation allowance on deferred tax assets is due principally to the utilization of the net operating loss for the period ended August 31, 2013 and the year ended February 28, 2013. A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate for the quarter ended August 31, 2013 and for the year ended February 28, 2013 is as follows:</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 27pt;"><table style="width: 90%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="76%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">8/31/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">2/28/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">U.S. federal statutory rate</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">34.0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">34.0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline;
font-family: 'times new roman'; font-size: 10pt;">Change in valuation allowance</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%"
valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(34.0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(34.0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Alternative minimum taxes</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">2.5</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">1.0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Effective income tax rate</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;"> 2.5</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;"> 1.0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr></table></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7.           <font style="display: inline; text-decoration: underline;">OTHER INCOME</font></font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The $7,000 of other income reflected in the unaudited condensed statements of income for the quarter ended August 31, 2013 consists of interest income on investment in treasury bills and certificates of deposit.  The $24,000 of other income reflected in the condensed statements of income for the quarter ended August 31, 2012 consists of $12,000 of interest income on investment in treasury bills net of changes in market value plus $12,000 of income from receivables adjustments.</font></div><div> </div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">8.           <font style="display: inline; text-decoration: underline;">ACCRUED EXPENSES</font></font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of August 31, 2013 and February 28, 2013, accrued expenses and other liabilities consisted of the following:</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 27pt;"><table style="width: 90%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="76%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">8/31/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">2/28/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Payroll and related employee benefits</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">385,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">451,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Income taxes</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">16,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">11,000</font></td><td
width="1%" nowrap="nowrap" valign="bottom"
style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Property taxes</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">29,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Environmental liabilities</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">125,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Other liabilities</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">39,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">128,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">469,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;"><font style="display: inline;">722,000</font></font></td><td width="1%"
nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">9.           <font style="display: inline; text-decoration: underline;">EXPORT SALES AND MAJOR CUSTOMERS</font></font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Revenues from domestic and export sales to unaffiliated customers for the three months ended August 31, 2013 are as follows:</font></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Power</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Field Effect</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Power</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Geographic Region</font></div></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Transistors</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Hybrids</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family:
'times new roman'; font-size:
10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Transistors</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">MOSFETS</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Totals</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Europe and Australia</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">63,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">18,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display:
inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td
width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">88,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Canada and Latin America</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">3,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">10,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Far East and Middle East</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">98,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline;
font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font
style="display: inline; font-family: 'times new roman'; font-size: 10pt;">105,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="40%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">United States</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">389,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">873,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">99,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">477,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,838,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Totals</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">409,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">936,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"
style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman';
font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">103,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">593,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,041,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"></font> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Revenues from domestic and export sales to unaffiliated customers for the three months ended August 31, 2012 are as follows:</font></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;">  
<table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Power</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Field Effect</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Power</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><a name="tabdatabeginip"></a>Geographic Region</font></div></td><td valign="bottom"
style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px;
border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Transistors</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Hybrids</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Transistors</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">MOSFETS</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Totals</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Europe and Australia</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new
roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">11,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">11,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Canada and Latin America</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">14,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Far East and Middle East</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%"
valign="bottom"
style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">3,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">63,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">66,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="40%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">United States</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">407,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">856,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">134,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">477,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,874,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><a name="lineip"></a>Totals</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"
style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline;
font-family: 'times
new roman'; font-size: 10pt;">414,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">856,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">155,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">540,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,965,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;">  </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Revenues from domestic and export sales are attributed to global geographic region according to the location of the customer’s primary manufacturing or operating facilities.</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For the quarter ended August 31, 2013, sales to the Company’s top two customers consisted of the following:</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 27pt;"><table style="width: 90%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="88%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style:
solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: -5.4pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Customer</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom"
style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">% of Sales</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Raytheon Company</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">49</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Lockheed Martin Corporation</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">11</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">60</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For the quarter ended August 31, 2012, sales to the Company’s top two customers consisted of the following:</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-align: left; margin-left: 27pt; margin-right: 0pt;"><table style="width: 90%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="88%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: -5.4pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Customer</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">% of Sales</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Raytheon Company</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%"
valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">34</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">United States Government</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">21</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">55</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">10.            <font style="display: inline; text-decoration: underline;">MAJOR SUPPLIERS</font></font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For the quarter ended August 31, 2013, purchases from the Company’s top two vendors consisted of the following:</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 27pt;"><table style="width: 90%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="88%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: -5.4pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Vendor</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">% of Purchases</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Egide, USA</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">44</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Air Products, Inc.</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">9</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">53</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto;
word-spacing: 0px; -webkit-text-stroke-width:
0px; display: block;"> </div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For the quarter ended August 31, 2012, purchases from the Company’s top two vendors consisted of the following:</font></div></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 27pt;"><table style="width: 90%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="88%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: -5.4pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Vendor</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">% of Purchases</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">WUXI Streamtek Ltd.</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">19</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Aotco Metal Finishing</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">13</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">32</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr></table></div><div> </div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: -36pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">11.         <font style="text-decoration: underline; display: inline;">COMMITMENTS AND CONTINGENCIES</font></font></div><div style="display: block; text-indent: 0pt;"> </div><div align="justify" style="margin-left: 0pt; display: block; margin-right: -36pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">              Future minimum lease payments for the Company’s manufacturing facility are as follows:</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="center" style="margin-left: 27pt;"><table style="width: 70%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="88%" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">Fiscal Year Ending February 28/29</font></font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid; text-align: center;" colspan="2"><div style="text-align: center; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">Amount</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2014</font></div></td><td align="right" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">197,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2015</font></div></td><td align="right" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">403,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2016</font></div></td><td align="right" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">415,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom" style="padding-bottom: 2px;"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2017</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">355,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom" style="padding-bottom: 4px;"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Total</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">1,370,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr></table></div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="text-decoration: underline; display: inline;">Basis of Presentation</font></font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">The unaudited condensed financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.</font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">The unaudited condensed financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods.  The results of operations for the six months ended August 31, 2013 are not necessarily indicative of the results to be expected for the year ending February 28, 2014.</font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended February 28, 2013.</font></div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="text-decoration: underline; display: inline;">Cash and Cash Equivalents</font></font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Cash and cash equivalents include demand deposits and money market accounts.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;">Investment in Treasury Bills and Certificates of Deposit</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; text-decoration: underline;"></font>  </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Investment in treasury bills and certificates of deposit include treasury bills with maturities of one year or less, and certificates of deposit with maturities from one to three years, and is stated at market value.</font></div>
<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">All of the Company’s investments are classified as available-for-sale.  As they are available for current operations, they are classified as current on the balance sheets.  Investments in available-for-sale securities are reported at fair value with unrecognized gains or losses, net of tax, as a component of accumulated other comprehensive income and is included as a separate component of stockholders’ equity. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when the declines are determined to be other-than-temporary.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 63pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 63pt; margin-right: 0pt;">
<div align="center">
<table style="width: 70%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td width="99%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;" colspan="4">
<div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Face Value as of 08/31/13</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="85%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;">
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Tbills</font></div>
</td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="12%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,683,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="white">
<td width="85%" valign="bottom" style="text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;">
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">CD</font></div>
</td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new;"> </font></td>
<td width="12%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">4,330,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family:
'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="85%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="12%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,013,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
</table>
</div>
<div style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div>
</div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of August 31, 2013, contractual maturities of the Company's available-for-sale non-equity investments were as follows:</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 63pt; margin-right: 0pt;"> </div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 63pt; margin-right: 0pt;">
<div align="left"> 
<table style="width: 80%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td width="76%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Face value</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Fair Value</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
</tr>
<tr>
<td width="76%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td width="10%" valign="bottom" colspan="2">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">(In thousands)</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="10%" valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="76%" valign="bottom">
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Maturing within one year</font></div>
</td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,266,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;">5,267,188</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="white">
<td width="76%" valign="bottom" style="padding-bottom: 2px;">
<div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Maturing in one to three years</font></div>
</td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">747,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">747,443</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="76%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,013,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td>
<td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,014,631</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
</table>
</div>
</div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="text-decoration: underline; display: inline;">Fair Value of Financial Instruments</font></font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">ASC Topic 820, “Fair Value Measurements and Disclosures” defines “fair value” as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  ASC 820 also sets forth a valuation hierarchy of the inputs (assumptions that market participants would use in pricing an asset or liability) used to measure fair value.  This hierarchy prioritizes the inputs into the following three levels:</font></div><div> </div><div align="center"><table style="width: 100%; font-family: times new roman; font-size: 10pt;" bgcolor="white" cellspacing="0" cellpadding="0"><tr><td width="5%"><font style="font-size: 10pt; font-family: times new roman;">Level 1.</font></td><td width="95%"><font style="font-size: 10pt; font-family: times new roman;"> Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active<font style="font-size: 10pt; font-family: times new roman; display: inline;"> markets.</font></font></td></tr><tr><td width="5%"><font style="font-size: 10pt; font-family: times new roman;"> </font></td><td width="95%"><font style="font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td width="5%"><font style="font-size: 10pt; font-family: times new roman;">Level 2.</font></td><td width="95%"><font style="font-size: 10pt; font-family: times new roman;">Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either<font style="font-size: 10pt; font-family: times new roman; display: inline;"> directly or indirectly.</font></font></td></tr><tr><td width="5%"><font style="font-size: 10pt; font-family: times new roman;"> </font></td><td width="95%"><font style="font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td width="5%"><font style="font-size: 10pt; font-family: times new roman;">Level 3.</font></td><td width="95%"><font style="font-size: 10pt; font-family: times new roman;">Inputs that are generally unobservable.  These inputs may be used with internally developed<font style="font-size: 10pt; font-family: times new roman; display: inline;"> methodologies that results in management’s best estimate of fair value.</font></font></td></tr></table></div><div> </div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">The Company’s brokered Treasury bills and certificates of deposits are subject to level 1 fair value measurement.</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">The carrying amounts of the Company’s short-term financial instruments, including accounts receivable, accounts payable, accrued expenses and other liabilities approximate their fair value due to the relatively short period to maturity for these instruments. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities, and the carrying amount of the long-term debt approximates fair value.</font></div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="text-decoration: underline; display: inline;">Accounts Receivable</font></font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Accounts receivable consists of unsecured credit extended to the Company’s customers in the ordinary course of business.  The Company reserves for any amounts deemed to be uncollectible based on past collection experiences and an analysis of outstanding balances, using an allowance account.  The allowance amount was $2,000 as of August 31, 2013 and February 28, 2013.</font></div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="text-decoration: underline; display: inline;">Shipping and Handling</font></font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Shipping and handling costs billed to customers are recorded in net sales.  Shipping costs incurred by the Company are recorded in cost of sales.</font></div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="text-decoration: underline; display: inline;">Inventories</font></font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Inventories are stated at the lower of cost or market.  Cost is determined using the “first-in, first-out” (FIFO) method.  The Company buys raw material only to fill customer orders.  Excess raw material is created only when a vendor imposes a minimum buy in excess of actual requirements.  Such excess material will usually be utilized to meet the requirements of the customer’s subsequent orders.  If excess material is not utilized after two fiscal years, it is fully reserved.  Any inventory item once designated as reserved is carried at zero value in all subsequent valuation activities.</font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">The Company’s inventory valuation policy is as follows:</font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><div align="left"><table style="width: 100%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="20%" valign="top"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Raw material /Work in process:</font></div></td><td width="80%" valign="top"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">All material purchased, processed, and/or used in the last two fiscal years is valued at the lower of its acquisition cost or market.  All material not purchased/used in the last two fiscal years is fully reserved.</font></div></td></tr><tr><td width="20%" valign="top"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="80%" valign="top"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td></tr><tr><td width="20%" valign="top"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Finished goods:</font></div></td><td width="80%" valign="top"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">All finished goods with firm orders for later delivery are valued (material and overhead) at the lower of cost or market.  All finished goods with no orders are fully reserved.</font></div></td></tr><tr><td width="20%" valign="top"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="80%" valign="top"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td></tr><tr><td width="20%" valign="top"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Direct labor costs:</font></div></td><td width="80%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Direct labor costs are allocated to finished goods and work in process inventory  based on engineering estimates of the amount of man-hours required from the different direct labor departments to bring each device to its particular level of   completion.</font></div></td></tr></table></div></div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="text-decoration: underline; display: inline;">Revenue Recognition</font></font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Revenue is recognized in accordance with SEC Staff Accounting Bulletin No. 104, <font style="font-style: italic; display: inline;">Revenue Recognition</font>.  This pronouncement requires that four basic criteria be met before revenue can be recognized: 1) there is evidence that an arrangement exists; 2) delivery has occurred; 3) the fee is fixed or determinable; and 4) collectability is reasonably assured. We recognize revenue upon determination that all criteria for revenue recognition have been met.  The criteria are usually met at the time of product shipment. Shipping terms are generally FCA (Free Carrier) shipping point.</font></div>
<div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="text-decoration: underline; display: inline;">Financial Statement Estimates</font></font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">The preparation of condensed financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from these estimates, and the differences could be material.  Such estimates include depreciable life, valuation allowance, and allowance for inventory obsolescence.</font></div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="text-decoration: underline; display: inline;">Recent Accounting Pronouncements</font></font></div><div align="left" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">No recent accounting pronouncements affecting the Company were issued by the Financial Accounting Standards Board or other standards-setting bodies.</font></div><div style="display: block; text-indent: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 63pt; margin-right: 0pt;">
<div align="center">
<table style="width: 70%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td width="99%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;" colspan="4">
<div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Face Value as of 08/31/13</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="85%" valign="bottom" style="text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;">
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Tbills</font></div>
</td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="12%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,683,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="white">
<td width="85%" valign="bottom" style="text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;">
<div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">CD</font></div>
</td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="12%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">4,330,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td width="85%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="12%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,013,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
</table>
</div>
</div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div><div align="justify" style="margin-left: 63pt; display: block; margin-right: 0pt; text-indent: 0pt;"><div align="left"><table style="width: 90.71%; height: 97px; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="76%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">Face value</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">Fair Value</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td></tr><tr><td width="76%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td><td width="10%" valign="bottom" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;">(In thousands)</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; font-weight: bold; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" colspan="2"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Maturing within one year</font></div></td><td align="right" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">5,266,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td align="right" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">5,267,188</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Maturing in one to three years</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">747,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">747,443</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom"
style="border-bottom: black 4px double; text-align: right;"><font
style="font-size: 10pt; font-family: times new roman; display: inline;">6,013,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">6,014,631</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr></table></div></div>
<table style="width: 100%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="52%" valign="bottom" style="padding-bottom: 2px;"></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="22%" valign="bottom" style="border-bottom: black 2px solid;" colspan="6"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">For the three months ended </font></div><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">August 31,</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="22%" valign="bottom" style="border-bottom: black 2px solid;" colspan="6"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">For the six months ended </font></div><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">August 31,</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr><td width="52%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2013</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2012</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2013</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2012</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="52%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Weighted average common shares outstanding</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,177,832</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,249,931</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,177,832</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display:
inline;"> </font></td><td width="1%" valign="bottom"
style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,259,469</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="52%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Dilutive effect of employee stock options</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">224,659</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">211,173</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">225,209</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">213,026</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="52%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Weighted average common shares outstanding, assuming dilution</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2,402,491</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2,461,104</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2,403,041</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family:
times new roman; display: inline;"><font style="display: inline;">2,472,495</font></font></td><td
width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr></table>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">As of August 31, 2013, inventories consist of the following:</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="left" style="margin-left: 27pt;"><table style="width: 98.59%; height: 97px; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="64%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Gross</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Reserve</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Net</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Raw Materials</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">1,908,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">(348,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">1,560,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Work-In-Process</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">3,429,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">(1,243,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,186,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display:
inline;">Finished Goods</font></div></td><td width="1%"
valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">1,203,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(680,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">523,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">     Totals</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">6,540,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(2,271,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">4,269,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr></table></div><div style="display: block; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></div><div style="display: block; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">As of February 28, 2013, inventories consist of the following:</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="left" style="margin-left: 27pt;"><table style="width: 98.59%; height: 97px; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="64%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Gross</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Reserve</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"
style="padding-bottom: 2px;"> </td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;"
colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Net</font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Raw Materials</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,131,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">(372,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">1,759,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Work-In-Process</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">3,339,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">(1,206,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2,133,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="64%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Finished Goods</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">750,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(609,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times
new roman; display: inline;"><font style="display: inline;">141,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px;
text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="64%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">     Totals</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">6,220,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(2,187,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">4,033,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr></table></div>
<table style="width: 90%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Deferred Tax Asset (Liability):</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">8/31/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2/28/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Current</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" colspan="2"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" colspan="2"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Allowance for doubtful accounts</font></div></td><td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">1,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">1,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Inventory allowance</font></div></td><td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">863,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">831,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Section 263A capitalized costs</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">389,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new
roman; display: inline;"> </font></td><td align="left"
width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">389,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Total current deferred tax assets</font></div></td><td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">1,253,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">1,221,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Valuation allowance</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(1,253,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(1,221,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom"
style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display:
inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Long-term</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Loss carryforwards</font></div></td><td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">5,330,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">5,330,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Depreciation</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(71,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(58,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Total long-term deferred tax assets</font></div></td><td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">5,259,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td align="left" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">5,272,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Valuation allowance</font></div></td><td align="left" width="1%"
valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td
width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(5,259,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">(5,272,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">0</font></font></td></tr></table>
<table style="width: 93.93%; height: 97px; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="76%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">  </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">8/31/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid;" colspan="2"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2/28/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">U.S. federal statutory rate</font></div></td><td align="right" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">34.0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">%</font></td><td align="right" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">34.0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">%</font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Change in valuation allowance</font></div></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">(34.0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td><td width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">(34.0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">)</font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Alternative minimum taxes</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">2.5</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">1.0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Effective income tax rate</font></div></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom"
style="border-bottom: black 4px;"><font style="font-size: 10pt;
font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;"> 2.5</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">%</font></td><td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;"> 1.0</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">%</font></td></tr></table>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 27pt;"><table style="width: 90%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="76%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"></font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">8/31/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">2/28/13</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Payroll and related employee benefits</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">385,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">451,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Income taxes</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">16,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">11,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Property taxes</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">29,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,000</font></td><td width="1%" nowrap="nowrap" valign="bottom"
style="text-align: left;"><font style="display: inline;
font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Environmental liabilities</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">125,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="76%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Other liabilities</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">39,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">128,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="76%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">469,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">722,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline; font-size: 10pt;">   </font></font></div>
<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Revenues from domestic and export sales to unaffiliated customers for the three months ended August 31, 2013 are as follows:</font></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;"><table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Power</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Field Effect</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Power</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Geographic Region</font></div></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Transistors</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Hybrids</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Transistors</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px;
border-bottom-style: solid; text-align: center;"
colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">MOSFETS</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Totals</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Europe and Australia</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">63,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">18,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">88,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Canada and Latin America</font></div></td><td width="1%"
valign="bottom"> </td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family:
'times
new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">3,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">10,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Far East and Middle East</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">98,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">105,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="40%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">United States</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"> </td><td width="9%" valign="bottom" style="border-bottom-color: black;
border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">389,000</font></td><td
width="1%"
nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">873,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">99,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">477,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,838,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Totals</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">409,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">936,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">103,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align:
right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">593,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font
style="display: inline;
font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,041,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"></font> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Revenues from domestic and export sales to unaffiliated customers for the three months ended August 31, 2012 are as follows:</font></div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;">  
<table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Power</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Field Effect</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Power</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><a name="tabdatabeginip"></a>Geographic Region</font></div></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new;">Transistors</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent:
0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Hybrids</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom:
2px;"><font style="display: inline;
font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Transistors</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">MOSFETS</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" colspan="2"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Totals</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center;" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Europe and Australia</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">11,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman';
font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;">$</font></td><td width="9%"
valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">11,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Canada and Latin America</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">14,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Far East and Middle East</font></div></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">3,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">63,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td
width="1%" valign="bottom"><font
style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">66,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td width="40%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">United States</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">407,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">856,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">134,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">477,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,874,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="40%" valign="bottom" style="padding-bottom: 4px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><a name="lineip"></a>Totals</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">414,000</font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size:
10pt;">856,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom"
style="border-bottom-color: black;
border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">155,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">540,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,965,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr></table></div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For the quarter ended August 31, 2013, sales to the Company’s top two customers consisted of the following:</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 27pt;"><table style="width: 90%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="88%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: -5.4pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Customer</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">% of Sales</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Raytheon Company</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">49</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Lockheed Martin Corporation</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">11</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">60</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For the quarter ended August 31, 2012, sales to the Company’s top two customers consisted of the following:</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display:
block;"> </div><div align="left" style="color:
#000000;
font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-align: left; margin-left: 27pt; margin-right: 0pt;"><table style="width: 90%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="88%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: -5.4pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Customer</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">% of Sales</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Raytheon Company</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">34</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">United States Government</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">21</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">55</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For the quarter ended August 31, 2013, purchases from the Company’s top two vendors consisted of the following:</font></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 27pt;"><table style="width: 74.03%; height: 79px; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="88%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: -5.4pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Vendor</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">% of Purchases</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Egide, USA</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">44</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Air Products, Inc.</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">9</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">53</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For the quarter ended August 31, 2012, purchases from the Company’s top two vendors consisted of the following:</font></div></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none;
white-space: normal; widows: auto;
word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 27pt;"><table style="width: 73.86%; height: 79px; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="88%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: -5.4pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Vendor</font></div></td><td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="10%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">% of Purchases</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">WUXI Streamtek Ltd.</font></div></td><td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">19</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom" style="padding-bottom: 2px;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Aotco Metal Finishing</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">13</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td><td width="9%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline;">32</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td></tr></table></div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div><div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; margin-left: 0pt; margin-right: 0pt;"><div ><div align="left" style="width: 1583px;"><font style="display: inline; font-family: 'times new roman'; font-size: 8pt;"> </font></div></div></div>
<div align="justify" style="margin-left: 0pt; display: block; margin-right: -36pt; text-indent: 0pt;"><br /> </div><div align="center" style="margin-left: 27pt;"><table style="width: 70%; font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0"><tr><td width="88%" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">Fiscal Year Ending February 28/29</font></font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="10%" valign="bottom" style="border-bottom: black 2px solid; text-align: center;" colspan="2"><div style="text-align: center; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">Amount</font></font></div></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2014</font></div></td><td align="right" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">197,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2015</font></div></td><td align="right" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">403,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2016</font></div></td><td align="right" width="1%" valign="bottom"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">415,000</font></td><td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="white"><td width="88%" valign="bottom" style="padding-bottom: 2px;"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">2017</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="9%" valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">355,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr><tr bgcolor="#cceeff"><td width="88%" valign="bottom" style="padding-bottom: 4px;"><div align="center" style="margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">Total</font></div></td><td align="right" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td><td width="1%" valign="bottom" style="border-bottom: black 4px double; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;">$</font></td><td width="9%" valign="bottom" style="border-bottom: black 4px double; text-align: right;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"><font style="display: inline;">1,370,000</font></font></td><td width="1%" nowrap="nowrap" valign="bottom" style="padding-bottom: 4px; text-align: left;"><font style="font-size: 10pt; font-family: times new roman; display: inline;"> </font></td></tr></table></div><div style="display: block; text-indent: 0pt;"> </div>
6013000
1683000
4330000
5266000
747000
6013000
5267188000
747443000
6014631000
one year or less
one to three years
All material purchased, processed, and/or used in the last two fiscal years is valued at the lower of its acquisition cost or market. All material not purchased/used in the last two fiscal years is fully reserved.
10000
7710
125000
165000
211173
213026
224659
225209
13500
12300
2131000
1908000
3339000
3429000
750000
1203000
6220000
6540000
372000
348000
1206000
1243000
609000
680000
2187000
2271000
1759000
1560000
2133000
2186000
141000
523000
1000
1000
831000
863000
389000
389000
1221000
1253000
1221000
1253000
0
0
5330000
5330000
58000
71000
5272000
5259000
5272000
5259000
0
0
0.340
0.340
-0.340
-0.340
0.010
0.025
0.010
0.025
15161000
2031-02-28
1.00
Should a cumulative change in the ownership of more than 50% occur within a three-year period, there could be an annual limitation on the use of the net operating loss carryforwards.
0.50
P3Y
24000
7000
12000
451000
385000
11000
16000
7000
29000
125000
128000
39000
1965000
0
0
11000
0
7000
0
7000
0
0
0
3000
63000
407000
856000
134000
477000
414000
856000
155000
540000
11000
14000
66000
1874000
2041000
7000
63000
0
18000
7000
0
3000
0
6000
0
1000
98000
389000
873000
99000
477000
409000
936000
103000
593000
88000
10000
105000
1838000
0.55
0.34
0.21
0.60
0.49
0.11
2
2
0.32
0.19
0.13
0.53
0.44
0.09
2
2
197000
403000
415000
355000
1370000