EPOLIN INC /NJ/

CIK:0000797079|SEC Filings

Earnings Per Share

3 Months Ended

May 31, 2012

Basic earnings per share are computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options. The components of basic and diluted earnings per share are as follows:

	Three Months Ended
	May 31,
	2012			2011
Basic Earnings Per Common Share:
Net income (loss)		(20,427	)		179,369
Average common shares
outstanding		12,332,476			12,259,663
Basic earnings per
common share		-			0.01
Diluted Earnings Per Common Share:
Net income (loss)		(20,427	)		179,369
Total diluted common shares
outstanding		12,332,476			12,259,663
Diluted earnings per
common share		-			0.01

Stock options totaling 95,000 for the three months ended May 31, 2012 and 2011, were not included in the net income per common share calculation because the exercise price of these options was greater than the average market price of common stock during the period.

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	May 31, 2012	May 31, 2011
Cash flows from operating activities:
Net income	$ (20,427)	$ 179,369
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,339	7,334
Deferred tax expense	(1,460)	17,891
(Increase) decrease in:
Accounts receivable	100,602	(90,188)
Inventories	(11,911)	(141,889)
Prepaid expenses	19,960	55,779
Prepaid taxes	(92,624)	106,562
Increase (decrease) in:
Accounts payable	65,083	30,850
Accrued expenses	(57,679)	(60,461)
Taxes payable	770	588
Net cash provided by operating activities	17,653	105,835
Cash flows from investing activities:
Payments for plant, property and equipment		(2,158)
Cash used from financing activities - Dividends paid		(1,471,963)
Increase (decrease) in cash	17,653	(1,368,286)
Cash and cash equivalents:
Beginning	748,583	1,881,219
Ending	766,236	512,933
Supplemental disclosures of cash flows:
Income taxes paid	$ 10,920	$ 2,000

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	May 31, 2012	Feb. 29, 2012
Current assets:
Cash and cash equivalents	$ 766,236	$ 748,583
Accounts receivable	525,715	626,317
Inventories	755,356	743,445
Prepaid expenses	31,060	51,020
Prepaid taxes	93,045	421
Deferred tax assets-current portion	6,389	5,829
Total current assets	2,177,801	2,175,615
Plant, property and equipment - at cost:
Land	81,000	81,000
Building and improvements	793,448	793,448
Laboratory equipment	230,639	230,639
Furniture and office equipment	284,189	284,189
Leasehold improvements	532,129	532,129
Total	1,921,405	1,921,405
Less: Accumulated depreciation and amortization	1,178,588	1,163,249
Net plant, property and equipment	742,817	758,156
Other assets - Deferred tax assets - non current portion	36,695	35,795
Total	2,957,313	2,969,566
Current liabilities:
Accounts payable	71,814	6,731
Accrued expenses	224,465	282,144
Taxes payable:
Income	85,033	84,263
Payroll	1,570	1,570
Total current liabilities	382,882	374,708
Stockholders' equity:
Common stock, no par value; 20,000,000 shares authorized; 13,315,000 and 13,215,000 shares issued, and 12,366,355 and 12,266,355 shares outstanding at May 31, 2012 and February 29, 2012, respectively.	2,364,693	2,364,693
Additional paid-in capital	138,125	138,125
Retained earnings	422,695	443,122
Total	2,925,513	2,945,940
Less: Treasury stock - at cost	351,082	351,082
Total stockholders' equity	2,574,431	2,594,858
Total	$ 2,957,313	$ 2,969,566