Quarterly report pursuant to Section 13 or 15(d)

Condensed Statements of Cash Flows (Unaudited)

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Condensed Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Income $ 2,961,000 $ 1,966,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of Patents 1,226,000 668,000
Stock based compensation 207,000 326,000
Deferred tax provision 1,531,000 192,000
Non-cash royalty revenue    (70,000)
Source (use) of cash from changes in operating assets and liabilities:    
Royalty receivables (505,000) (368,000)
Other assets 120,000 39,000
Accounts payable (48,000) (125,000)
Accrued expense (66,000) (133,000)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 5,426,000 2,495,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of patents and other assets (78,000) (4,271,000)
Investments (285,000) (196,000)
NET CASH USED IN INVESTING ACTIVITIES (363,000) (4,467,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Value of shares delivered to fund withholding taxes on exercise of options (1,064,000) (486,000)
Repurchase of common stock (3,259,000) (1,017,000)
Repurchase of Warrants (505,000)   
Proceeds from exercises of options and warrants 20,000 1,076,000
NET CASH PROVIDED (USED IN) FINANCING ACTIVITIES (4,808,000) (427,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 255,000 (2,399,000)
CASH AND CASH EQUIVALENTS, beginning of period 18,938,000 21,983,000
CASH AND CASH EQUIVALENTS, end of period 19,193,000 19,584,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid during the periods for Interest      
Cash paid during the periods for Taxes 26,000 98,000
NON-CASH INVESTING AND FINANCING ACTIVITIES    
Value of shares and warrants issued to purchase patents    $ 1,617,000