INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes

Schedule of components of income tax expense

	2015		2014
Current:
Federal	$	62,000	$	332,000
State		10,000		15,000
		72,000		347,000
Deferred		18,000		(77,000)
	$	90,000	$	270,000

Schedule of expected provision for income taxes, computed by applying the U.S. federal income tax rate to income before taxes, reconciled to income tax expense

	2015		2014
Expected provision for federal income taxes	$	77,000	$	312,000
State income taxes, net of federal benefit		7,000		15,000
Domestic manufacturers deduction		(6,000)		(33,000)
Non-deductible meals, entertainment, and life insurance		29,000		21,000
Research and development credit		(15,000)		(31,000)
Valuation allowance released on capital loss utilized		—		(17,000)
Other		(2,000)		3,000
	$	90,000	$	270,000

Schedule of components of net deferred tax liabilities

	2015		2014
Deferred tax assets:
Accrued vacation	$	26,000	$	23,000
Inventories reserve		126,000		129,000
Allowance for doubtful accounts		5,000		4,000
Allowance for sales returns		37,000		13,000
Research and development credit carryforward		45,000		30,000
Accrued self-insured medical		1,000		9,000
Less valuation allowance		(45,000)		(30,000)
		195,000		178,000
Deferred tax liabilities
Property and equipment		(494,000)		(462,000)
Intangible assets		(86,000)		(83,000)
Net deferred tax liabilities	$	(385,000)	$	(367,000)

Schedule of deferred tax amounts included in the accompanying balance sheet

	2015		2014
Current assets	$	195,000	$	178,000
Noncurrent liabilities		(580,000)		(545,000)
	$	(385,000)	$	(367,000)