INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2016

Income Taxes Tables

Provision (benefit) for income taxes

The provision (benefit) for income taxes from continued operations for the period ended March 31, 2016 and the year ended December 31, 2015 consist of the following:

	March 31,			December 31,
	2016				2015
Current:
Federal AMT	$	15,000			$	-
State		60,000				-
		75,000				-
Deferred:
Federal	$	(289,918	)		$	5,074
State		(39,397)				5,510
		(329,315)				10,584
Change in valuation allowance		329,315				(10,584)
Provision (benefit) for income taxes, net	$	75,000			$	-

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:

	March 31, 2016			December 31, 2015
Inventory UNICAP	$	41,401		$	41,401
Allowance for Doubtful Accounts		163,012			162,849
Foreign tax credits		30,086			30,086
Share Based Compensation		39,485			39,485
Other		398			24,100
Property and equipment		16,712			16,712
Net operating loss carryforwards		7,614,810			7,666,946
Valuation allowance		(7,093,025	)		(7,168,700	)
Deferred income tax asset		812,879			812,879
Deferred expenses		(71,482	)		(71,482	)
Other		(52,397	)		(52,397	)
Deferred income tax liability		(123,879	)		(123,879	)
Net deferred tax asset	$	689,000		$	689,000