Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 30, 2013 | Jan. 14, 2014 | |
Document And Entity Information Abstract | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Nov-13 | ' |
Entity Registrant Name | 'REPRO MED SYSTEMS INC | ' |
Entity Central Index Key | '0000704440 | ' |
Current Fiscal Year End Date | '--02-28 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 36,661,667 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Nov. 30, 2013 | Feb. 28, 2013 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $1,921,439 | $1,930,321 |
Certificates of deposit | 258,240 | 257,009 |
Accounts receivable less allowance for doubtful accounts of $24,200 and $17,450 for November 30, 2013 and February 28, 2013, respectively | 1,278,330 | 1,114,847 |
Inventory | 956,008 | 1,150,129 |
Prepaid expenses | 253,113 | 180,651 |
Total Current Assets | 4,667,130 | 4,632,957 |
PROPERTY & EQUIPMENT, net | 855,073 | 875,986 |
OTHER ASSETS: | ' | ' |
Patents, net of accumulated amortization of $114,775 and $112,090 at November 30, 2013 and February 28, 2013, respectively | 40,767 | 22,913 |
Other | 31,053 | 60,369 |
Total Other Assets | 71,820 | 83,282 |
TOTAL ASSETS | 5,594,023 | 5,592,225 |
CURRENT LIABILITIES | ' | ' |
Note payable - current portion | ' | 1,474 |
Notes payable to related parties - current portion | ' | 43,971 |
Deferred capital gain - current portion | 22,481 | 22,481 |
Accounts payable | 206,416 | 110,358 |
Accrued expenses | 218,300 | 169,790 |
Accrued payroll and related taxes | 22,100 | 50,195 |
Accrued tax liability | 36,587 | 127,090 |
Total Current Liabilities | 505,884 | 525,359 |
OTHER LIABILITIES | ' | ' |
Note payable to related parties - less current portion | ' | 393,861 |
Deferred capital gain - less current portion | 95,556 | 112,414 |
Deferred tax liability | 204,000 | 204,000 |
Total Other Liabilities | 299,556 | 710,275 |
TOTAL LIABILITIES | 805,440 | 1,235,634 |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock, $0.01 par value, 50,000,000 shares authorized, 38,936,667 shares issued, and 36,661,667 shares outstanding | 389,367 | 389,367 |
Additional paid-in capital | 3,512,294 | 3,512,294 |
Retained earnings | 1,106,547 | 780,530 |
Stockholders' equity before treasury stock | 5,008,208 | 4,682,191 |
Less: Treasury stock, 2,275,000 shares at cost | -142,000 | -142,000 |
Less: Deferred compensation cost | -77,625 | -183,600 |
TOTAL STOCKHOLDERS' EQUITY | 4,788,583 | 4,356,591 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,594,023 | $5,592,225 |
BALANCE_SHEETS_PARENTHETICAL
BALANCE SHEETS (PARENTHETICAL) (USD $) | Nov. 30, 2013 | Feb. 28, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $24,200 | $17,450 |
Patents, accumulated amortization | $114,775 | $112,090 |
Common Stock, par value per share | $0.01 | $0.01 |
Common Stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, shares issued | 38,936,667 | 38,936,667 |
Common Stock, shares outstanding | 36,661,667 | 36,661,667 |
Treasury stock, shares | 2,275,000 | 2,275,000 |
STATEMENTS_OF_OPERATIONS_UNAUD
STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | |
STATEMENTS OF OPERATIONS [Abstract] | ' | ' | ' | ' |
NET SALES | $2,179,921 | $2,070,409 | $6,064,265 | $5,766,182 |
Cost and Expenses | ' | ' | ' | ' |
Cost of goods sold | 854,734 | 782,900 | 2,370,062 | 2,086,497 |
Selling, general and administrative | 975,731 | 1,112,727 | 2,890,679 | 2,657,929 |
Research and development | 50,864 | 36,062 | 131,734 | 111,452 |
Depreciation and amortization | 57,979 | 51,329 | 170,506 | 134,799 |
Total Costs and Expenses | 1,939,308 | 1,983,018 | 5,562,981 | 4,990,677 |
Net Operating Profit | 240,613 | 87,391 | 501,284 | 775,505 |
Other Income/(Expenses) | ' | ' | ' | ' |
Gain (Loss) Currency Exchange | 3,910 | 1,465 | -7,080 | -5,120 |
Interest Expense | ' | -7,105 | -4,547 | -21,491 |
Interest and Other Income | 1,166 | 2,730 | 5,612 | 5,662 |
Total Other Income/(Expense) | 5,076 | -2,910 | -6,015 | -20,949 |
NET PROFIT BEFORE TAXES | 245,689 | 84,481 | 495,269 | 754,556 |
Provision for Income Taxes | -83,735 | -28,957 | -169,252 | -258,049 |
Net Income | $161,954 | $55,524 | $326,017 | $496,507 |
NET INCOME PER SHARE | ' | ' | ' | ' |
Basic | $0 | $0 | $0.01 | $0.01 |
Diluted | $0 | $0 | $0.01 | $0.01 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ' | ' | ' | ' |
Basic | 36,661,667 | 36,611,667 | 36,661,667 | 35,798,649 |
Diluted | 36,661,667 | 36,661,667 | 36,661,667 | 35,831,717 |
STATEMENTS_OF_CASH_FLOWS_UNAUD
STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $326,017 | $496,507 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' |
Amortization of deferred compensation cost | 105,975 | 40,050 |
Depreciation and amortization | 170,506 | 134,799 |
Deferred capital gain - building lease | -16,858 | -16,860 |
Changes in operating assets and liabilities: | ' | ' |
Increase in accounts receivable | -163,483 | -303,234 |
Decrease (Increase) in inventory | 194,121 | -2,764 |
Decrease (Increase) in prepaid expense | -72,462 | 73,856 |
Decrease (Increase) in other assets | 29,316 | -27,813 |
Increase in accounts payable | 96,058 | 3,931 |
Decrease in accrued payroll and related taxes | -28,095 | -8,668 |
Increase in accrued expense | 48,510 | 1,531 |
(Decrease) Increase in accrued tax liability | -90,503 | 112,256 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 599,102 | 503,591 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Payments for property and equipment | -146,908 | -544,705 |
Payments for patents | -20,539 | -1,000 |
Purchase of certificates of deposit | -1,231 | -396 |
NET CASH USED IN INVESTING ACTIVITIES | -168,678 | -546,101 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Payments on note payable to related parties | -437,832 | -30,829 |
Payments on note payable | -1,474 | -1,543 |
NET CASH USED IN FINANCING ACTIVITIES | -439,306 | -32,372 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -8,882 | -74,882 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,930,321 | 1,757,223 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,921,439 | 1,682,341 |
Cash paid during the periods for | ' | ' |
Interest | 4,547 | 21,491 |
Taxes | 260,773 | 145,793 |
Non Cash Activities | ' | ' |
Deferred compensation cost | ' | $263,700 |
NATURE_OF_OPERATIONS_AND_SUMMA
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Nov. 30, 2013 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
THE NATURE OF OPERATIONS | |
Repro-Med Systems, Inc. (the "Company") designs, manufactures, and markets proprietary medical devices primarily for the ambulatory infusion market and emergency medical applications. The FDA regulates these products. We use the d/b/a (doing business as) name RMS Medical Products, and incorporate RMS part of the branding of some products. | |
BASIS OF PRESENTATION | |
The accompanying unaudited financial statements as of November 30, 2013 have been prepared in accordance with generally accepted accounting principles in accordance with instructions to regulation S-X. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial presentation. | |
In the opinion of the Company's management, the financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company's financial position as of November 30, 2013 and the results of operations and cash flow for the three-month and nine month periods ended November 30, 2013 and 2012. | |
The results of operations for the three months and nine months ended November 30, 2013 and 2012 are not necessarily indicative of the results to be expected for the full year. These interim financial statements should be read in conjunction with the financial statements and notes thereto of the Company and management's discussion and analysis of financial condition and results of operations included in the Company's Annual Report for the year ended February 28, 2013, as filed with the Securities and Exchange Commission on Form 10-K. | |
EMPLOYEE STOCK AWARDS | |
In July 2012, 1,465,000 shares were authorized to issue to employees as share compensation valued at $0.18 per share, the market value on the date of the board authorization. The value of these shares will be amortized into operations over the one to two year restriction on the shares. Amortization amounted to $25,875 and $105,975 for the three-months and nine-months ended November 30, 2013, respectively Amortization amounted to $40,050 for the three-months and nine-months ended November 30, 2012. | |
INVENTORIES | |
Our inventory includes $208,000 of certain subassemblies which did not meet our specifications and were rejected by us and returned to the vendor for rework. | |
USE OF ESTIMATES IN THE FINANCIAL STATEMENTS | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Important estimates include but are not limited to, asset lives, valuation allowances, inventory, and accruals. | |
LEGAL PROCEEDINGS | |
The Company previously commenced a declaratory judgment action to establish the invalidity of any claim that our needle sets infringe a patent of a competitor. The defendant has recently answered the complaint and asserted various counterclaims that the Company believes are without merit. Such claims are currently being reviewed by legal counsel. The Company subsequently added claims against the defendant to show that the defendant has engaged in various unfair business practices. The parties are presently scheduling the case and will begin the fact discovery process. | |
SUBSEQUENT EVENTS EVALUATION | |
The Company has evaluated subsequent events through January 14, 2014, the date on which the financial statements were issued. There were no material subsequent events that required recognition or additional disclosure in the financial statements. | |
EMERGING ACCOUNTING STANDARDS | |
Management does not believe that any of the standards adopted by the Financial Accounting Standards Board, but which are not yet effective, will have a material effect on the Company's financial reporting. | |
LEASED AIRCRAFT | |
The Company leases an aircraft from a company controlled by the president. The lease payments aggregated were $5,375 for the three-months ended November 30, 2013 and 2012 and $16,125 for the nine months ended November 30, 2013 and November 30, 2012. The original lease agreement has expired and the Company is currently on a month-to-month basis for rental payments. |
NATURE_OF_OPERATIONS_AND_SUMMA1
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 9 Months Ended |
Nov. 30, 2013 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
THE NATURE OF OPERATIONS | ' |
THE NATURE OF OPERATIONS | |
Repro-Med Systems, Inc. (the "Company") designs, manufactures, and markets proprietary medical devices primarily for the ambulatory infusion market and emergency medical applications. The FDA regulates these products. We use the d/b/a (doing business as) name RMS Medical Products, and incorporate RMS part of the branding of some products. | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The accompanying unaudited financial statements as of November 30, 2013 have been prepared in accordance with generally accepted accounting principles in accordance with instructions to regulation S-X. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial presentation. | |
In the opinion of the Company's management, the financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company's financial position as of November 30, 2013 and the results of operations and cash flow for the three-month and nine month periods ended November 30, 2013 and 2012. | |
The results of operations for the three months and nine months ended November 30, 2013 and 2012 are not necessarily indicative of the results to be expected for the full year. These interim financial statements should be read in conjunction with the financial statements and notes thereto of the Company and management's discussion and analysis of financial condition and results of operations included in the Company's Annual Report for the year ended February 28, 2013, as filed with the Securities and Exchange Commission on Form 10-K. | |
EMPLOYEE STOCK AWARDS | ' |
EMPLOYEE STOCK AWARDS | |
In July 2012, 1,465,000 shares were authorized to issue to employees as share compensation valued at $0.18 per share, the market value on the date of the board authorization. The value of these shares will be amortized into operations over the one to two year restriction on the shares. Amortization amounted to $25,875 and $105,975 for the three-months and nine-months ended November 30, 2013, respectively Amortization amounted to $40,050 for the three-months and nine-months ended November 30, 2012. | |
INVENTORIES | ' |
INVENTORIES | |
Our inventory includes $208,000 of certain subassemblies which did not meet our specifications and were rejected by us and returned to the vendor for rework. | |
USE OF ESTIMATES IN THE FINANCIAL STATEMENTS | ' |
USE OF ESTIMATES IN THE FINANCIAL STATEMENTS | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Important estimates include but are not limited to, asset lives, valuation allowances, inventory, and accruals. | |
LEGAL PROCEEDINGS | ' |
LEGAL PROCEEDINGS | |
The Company previously commenced a declaratory judgment action to establish the invalidity of any claim that our needle sets infringe a patent of a competitor. The defendant has recently answered the complaint and asserted various counterclaims that the Company believes are without merit. Such claims are currently being reviewed by legal counsel. The Company subsequently added claims against the defendant to show that the defendant has engaged in various unfair business practices. The parties are presently scheduling the case and will begin the fact discovery process. | |
SUBSEQUENT EVENTS EVALUATION | ' |
SUBSEQUENT EVENTS EVALUATION | |
The Company has evaluated subsequent events through January 14, 2014, the date on which the financial statements were issued. There were no material subsequent events that required recognition or additional disclosure in the financial statements. | |
EMERGING ACCOUNTING STANDARDS | ' |
EMERGING ACCOUNTING STANDARDS | |
Management does not believe that any of the standards adopted by the Financial Accounting Standards Board, but which are not yet effective, will have a material effect on the Company's financial reporting. | |
LEASED AIRCRAFT | ' |
LEASED AIRCRAFT | |
The Company leases an aircraft from a company controlled by the president. The lease payments aggregated were $5,375 for the three-months ended November 30, 2013 and 2012 and $16,125 for the nine months ended November 30, 2013 and November 30, 2012. The original lease agreement has expired and the Company is currently on a month-to-month basis for rental payments. |
NATURE_OF_OPERATIONS_AND_SUMMA2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Jul. 31, 2012 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ' | ' | ' | ' |
Amortization of deferred compensation cost | $25,875 | $40,050 | $105,975 | $40,050 | ' |
Shares authorized for issuance | ' | ' | ' | ' | 1,465,000 |
Shares authorized for issuance, price per share | ' | ' | ' | ' | $0.18 |
Inventory of certain assemblies off site | 208,000 | ' | 208,000 | ' | ' |
Aircraft lease expense | $5,375 | $5,375 | $16,125 | $16,125 | ' |