11. INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2012

Income Taxes Tables

Income taxes

	2012		2011
	(Unaudited)		(Unaudited)
Current
Federal	$	778,000	$	-
Federal AMT		-		57,000
State		258,000		-
Total Expense		1,036,000		57,000
Deferred
Federal		-		-
State		-		-
Total Deferred Taxes		-		-
Net Expense for Income Taxes	$	1,036,000	$	57,000

Deferred tax assets

	September 30,			December 31,
	2012			2011
	(Unaudited)
Deferred tax assets:
Net operating loss carry forwards	$	-		$	289,000
Capital loss carry forwards		1,088,000			1,088,000
Bad debts		244,000			380,000
Stock based compensation - options and restricted stock		501,000			466,000
Capitalized engineering costs		416,000			356,000
Account payable, accrued expenses and reserves		9,000			9,000
Deferred rent		418,000			390,000
Amortization - NTW Transaction		74,000			-
Inventory - 263A adjustment		629,000			-
Lease Impairment		94,000			-
Deferred gain on sale of real estate		213,000			224,000
Section 1231 loss carryover		86,000			86,000
Total deferred tax assets before valuation allowance		3,772,000			3,288,000
Valuation allowance		(2,568,000	)		(1,217,000	)
Total deferred tax assets after valuation allowance		1,204,000			2,071,000
Deferred tax liabilities:
Property and equipment		(612,000	)		(801,000	)
Amortization - Welding Transaction		(592,000	)		(643,000	)
Inventory - 263A adjustment		-			(627,000	)
Total Deferred Tax Liability		(1,204,000	)		(2,071,000	)
Net deferred tax asset	$	-		$	-