Quarterly report pursuant to Section 13 or 15(d)

CONDENSED STATEMENTS OF CASH FLOW (UNAUDITED)

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CONDENSED STATEMENTS OF CASH FLOW (UNAUDITED) (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Income $ 2,997,000 $ 2,174,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of Patents 818,000 249,000
Stock based compensation 162,000 256,000
Source (use) of cash from changes in operating assets and liabilities:    
Royalty receivables and other current assets (4,356,000) (1,051,000)
Accounts payable and accrued expenses 1,030,000 (5,000)
Income taxes payable 100,000 (62,000)
Deferred tax asset 1,566,000 316,000
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,317,000 1,877,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of patents/patent costs incurred (40,000) (4,420,000)
Investments (190,000)   
NET CASH USED IN INVESTING ACTIVITIES (230,000) (4,420,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Value of shares delivered to fund withholding taxes (1,064,000) (486,000)
Repurchase of treasury stock (2,877,000) (851,000)
Repurchase of warrants (505,000)   
NET CASH USED IN FINANCING ACTIVITIES (4,446,000) (1,337,000)
NET DECREASE IN CASH AND CASH EQUIVALENTS (2,359,000) (3,880,000)
CASH AND CASH EQUIVALENTS, beginning of period 18,938,000  
CASH AND CASH EQUIVALENTS, end of period 16,579,000 18,103,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid during the periods for Interest      
Cash paid during the periods for Taxes 22,000 93,000
NON-CASH INVESTING AND FINANCING ACTIVITIES    
Value of shares and warrants issued to purchase patents    $ 1,438,000