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INCOME TAXES
 3 Months Ended
Mar. 31, 2016
Income Tax Disclosure [Abstract]  
INCOME TAXES

The provision for income taxes for the three months ended March 31, 2016 and 2015 is set forth below:

 

    2016     2015  
    (Unaudited)     (Unaudited)  
Current            
   Federal   $ -     $     166,000  
   State           22,000             5,000  
Prior Year Under Accrual                
   Federal          13,000                          -  
Total Current Expense                35,000              171,000  
Deferred Tax (Benefit)       (691,000 )         (147,000 ) 
Net (Benefit from) Provision for Income Taxes   $   (656,000 )    $        24,000  

The components of net deferred tax assets as of March 31, 2016 and December 31, 2015 are set forth below:

 

    March 31,     December 31,  
    2016     2015  
Deferred tax assets   (Unaudited)        
Current:            
Net operating losses   $ 1,055,000     $ 462,000  
Bad debts     308,000       336,000  
Inventory - 263A adjustment     8,000       8,000  
Accounts payable, accrued expenses and reserves     985,000       919,000  
Total current deferred tax assets before valuation allowance     2,356,000       1,725,000  
Valuation allowance     -       -  
Total current deferred tax assets after valuation allowance     2,356,000       1,725,000  
                 
Non-current:                
Section 1231 loss carry forward     4,000       4,000  
Stock based compensation - options and restricted stock     88,000       79,000  
Capitalized engineering costs     432,000       432,000  
Deferred rent     410,000       410,000  
Amortization - NTW Transaction     845,000       789,000  
Inventory reserves     727,000       680,000  
Deferred gain on sale of real estate     123,000       126,000  
Other     148,000       257,000  
Total non-current deferred tax assets before valuation allowance     2,777,000       2,777,000  
Valuation allowance     (4,000 )     (4,000 )
Total non-current deferred tax assets after valuation allowance     2,773,000       2,773,000  
                 
Deferred tax liabilities:                
Property and equipment     (2,041,000 )     (2,091,000 )
Amortization - NTW Goodwill     (14,000 )     (13,000 )
Amortization - AMK Goodwill     (22,000 )     (18,000 )
Amortization - Welding Transaction     (298,000 )     (313,000 )
Total non-current deferred tax liabilities     (2,375,000 )     (2,435,000 )
                 
Net non-current deferred tax asset   $ 398,000     $ 338,000  

During the year ended December 31, 2015, the Company provided a valuation allowance on the deferred tax assets related to capital loss and section 1231 loss carryforwards. The valuation allowance at both March 31, 2016 and December 31, 2015 amounted to $4,000. Management believes that the remainder of the net deferred tax assets are more likely than not to be realized.