Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Income $ 7,706,000 $ 4,133,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of Patents 290,000 206,000
Stock -based compensation 687,000 949,000
Deferred tax provision 39,000
Changes in operating assets and liabilities:    
Royalty receivables 131,000 2,304,000
Prepaid Taxes 125,000 1,070,000
Other assets (31,000)
Accounts payable (177,000) 73,000
Income taxes payable 197,000
Accrued expense (835,000) (2,000,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES 8,093,000 6,774,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Development of patents (110,000) (1,144,000)
Equity investment (2,541,000)
Purchases of marketable securities, net of sales and redemptions (25,546,000) (9,750,000)
NET CASH USED IN INVESTING ACTIVITIES (28,197,000) (10,894,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends (2,444,000) (2,420,000)
Value of shares delivered to fund withholding taxes (545,000) (56,000)
Repurchases of common stock, net of commissions (1,608,000) (2,096,000)
Proceeds from exercises of options and warrants 30,000 1,125,000
NET CASH USED IN FINANCING ACTIVITIES (4,567,000) (3,447,000)
NET (DECREASE) IN CASH AND CASH EQUIVALENTS (24,671,000) (7,567,000)
CASH AND CASH EQUIVALENTS, beginning of year 43,351,000 50,918,000
CASH AND CASH EQUIVALENTS, end of year 18,680,000 43,351,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
CASH PAID DURING THE PERIOD FOR: Interest
CASH PAID DURING THE PERIOD FOR: Income taxes 1,986,000 1,290,000
NON-CASH FINANCING ACTIVITY    
Accrued dividend rights on restricted stock units $ 63,000 $ 84,000