STATEMENTS OF CASH FLOWS - USD ($)
|
12 Months Ended |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
| Operating activities: |
|
|
|
| Net income |
$ 7,214,545
|
$ 7,529,920
|
$ 2,050,366
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
| Bad debt expense (benefit) |
12,636
|
3,553
|
(108,852)
|
| Provision for excess and obsolete inventory |
94,186
|
51,089
|
62,069
|
| Depreciation and amortization |
248,299
|
223,942
|
149,056
|
| Excess tax benefit on the exercise of stock options |
(603,553)
|
(1,728,595)
|
(165,228)
|
| Stock-based compensation |
1,841,901
|
1,220,118
|
724,063
|
| Impairment of intangible assets |
|
55,433
|
|
| Loss (gain) on sale or maturity of investments |
83,957
|
3,575
|
(7,316)
|
| Changes in operating assets and liabilities: |
|
|
|
| Accounts receivable |
75,297
|
(1,906,971)
|
130,721
|
| Inventory |
(1,483,361)
|
(308,409)
|
(847,576)
|
| Prepaid expenses and other current assets |
4,937
|
(31,977)
|
(154,912)
|
| Other assets |
(117,235)
|
(113,959)
|
(15,433)
|
| Deferred income taxes |
(570,910)
|
(16,116)
|
(167,305)
|
| Accounts payable |
1,113
|
376,293
|
201,693
|
| Accrued payroll and benefits |
(252,982)
|
43,350
|
589,536
|
| Other accrued taxes |
88,407
|
(35,103)
|
(14,997)
|
| Warranty reserve |
6,824
|
6,156
|
15,923
|
| Deferred revenue |
1,723,918
|
501,463
|
186,172
|
| Other current liability |
120,634
|
|
|
| Accrued income taxes, net of prepaid income taxes |
917,707
|
1,775,568
|
(48,188)
|
| Other |
|
|
5,928
|
| Net cash provided by operating activities |
9,406,320
|
7,649,330
|
2,585,720
|
| Investing activities: |
|
|
|
| Purchases of investments |
(4,992,626)
|
|
(7,951,497)
|
| Proceeds from maturity of investments |
4,575,140
|
253,370
|
255,109
|
| Purchases of property and equipment |
(780,809)
|
(298,723)
|
(583,977)
|
| Capitalized intangible assets |
(743,486)
|
(16,116)
|
(22,311)
|
| Net cash used in investing activities |
(1,941,781)
|
(61,469)
|
(8,302,676)
|
| Financing activities: |
|
|
|
| Proceeds from stock option and warrant exercises |
247,133
|
597,508
|
105,000
|
| Income tax benefits credited to equity |
603,553
|
1,728,595
|
165,228
|
| Purchases of treasury stock |
(9,969,468)
|
|
|
| Repayment of officer note payable |
|
|
(6,333)
|
| Proceeds from the issuance of common stock pursuant to initial public offering |
|
|
14,490,000
|
| Payment of initial public offering costs |
|
|
(2,044,348)
|
| Net cash (used in) provided by financing activities |
(9,118,782)
|
2,326,103
|
12,709,547
|
| Net (decrease) increase in cash and cash equivalents |
(1,654,243)
|
9,913,964
|
6,992,591
|
| Cash and cash equivalents, beginning of year |
19,368,114
|
9,454,150
|
2,461,559
|
| Cash and cash equivalents, end of year |
17,713,871
|
19,368,114
|
9,454,150
|
| Supplemental disclosure of cash flow information: |
|
|
|
| Cash paid for income taxes |
$ 3,392,722
|
$ 2,702,000
|
$ 1,182,430
|