INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes Tables

Provision (benefit) for income taxes

      The provision (benefit) for income taxes from continued operations for the years ended December 31, 2015 and 2014 consist of the following:       

	December 31,
	2015			2014
Current:
Federal AMT	$	—		$	24,354
State		—			147,000
		—			171,354
Deferred:
Federal	$	5,074		$	626,280
State		5,510			—
		10,584			626,280
Change in valuation allowance		(10,584	)		(626,280	)
Provision (benefit) for income taxes, net	$	—		$	171,354

Federal statutory tax rate

      The difference between income tax expense computed by applying the federal statutory corporate tax rate and actual income tax expense is as follows:

	December 31,
		2015	2014
Statutory Federal Income Rate		35.00%	34.00%
State Income taxes and other		4.35%	7.09%
Federal AMT		0.00%	1.30%
Temporary differences		0.00%	0.22%
Permanent Items		1.62%	0.60%
Valuation Allowance		-42.22%	-34.00%
Return to Provision		1.25%	0.00%
Effective Tax Rate		0.00%	9.21%

 Deferred income taxes result from temporary differences in the recognition of income and expenses for the financial reporting purposes and for tax purposes. The components of deferred tax assets consist principally from the following:

	December 31,
		2015		2014
Inventory UNICAP	$	41,401	$	-
Allowance for Doubtful Accounts		162,849		-
Foreign tax credits		30,086		-
Share Based Compensation		39,485
Other		24,100		-
Property and equipment		16,712		-
Net operating loss carryforwards		7,666,946		6,602,000
Valuation allowance		(7,168,700)		(5,913,000)
Deferred income tax asset		812,879		689,000
Deferred expenses		(71,482)		-
Other		(52,397)		-
Deferred income tax liability		(123,879)		-
Net deferred tax asset	$	689,000	$	689,000

Deferred tax assets

 Deferred income taxes result from temporary differences in the recognition of income and expenses for the financial reporting purposes and for tax purposes. The components of deferred tax assets consist principally from the following:

	December 31,
		2015		2014
Inventory UNICAP	$	41,401	$	-
Allowance for Doubtful Accounts		162,849		-
Foreign tax credits		30,086		-
Share Based Compensation		39,485
Other		24,100		-
Property and equipment		16,712		-
Net operating loss carryforwards		7,666,946		6,602,000
Valuation allowance		(7,168,700)		(5,913,000)
Deferred income tax asset		812,879		689,000
Deferred expenses		(71,482)		-
Other		(52,397)		-
Deferred income tax liability		(123,879)		-
Net deferred tax asset	$	689,000	$	689,000