Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

12. INCOME TAXES

The income tax expense charged to operations for the years ended December 31, were as follows:

		2011			2010			2009
Domestic income tax expense	$	711,000		$	1,473,000		$	1,110,000
Foreign income tax expense		33,000			121,000			144,000
Deferred tax (benefit) expense		(34,000	)		(114,000	)		65,000

Total income tax expense $ 710,000 $ 1,480,000 $ 1,319,000

Deferred tax assets, are comprised of the following at December 31:

		2011			2010			2009
Accrued vacation and warranty	$	208,000		$	219,000		$	80,000
Stock compensation additional paid in capital		160,000			163,000			131,000
Accounts receivable and inventory allowances		113,000			95,000			201,000
Gross deferred tax assets		481,000			477,000			412,000
Gross deferred tax liability – depreciation		(69,000	)		(99,000	)		(148,000	)
Net deferred tax assets	$	412,000		$	378,000		$	264,000

The realization of the deferred tax assets is dependent on future taxable earnings. The Company has not provided for a deferred tax asset valuation allowance due to their current and anticipated future earnings.

Reconciliation of the amount of reported income tax expense and the amount computed by multiplying the applicable statutory Federal income tax rate is as follows:

		2011			2010			2009
Income before income taxes	$	2,230,674		$	4,467,392		$	3,547,601
Applicable statutory tax rate		34	%		34	%		34	%
Computed "expected" Federal income tax expense		758,000			1,519,000			1,206,000
Adjustments to Federal income tax resulting from:
State income tax expense		99,000			267,000			206,000
Tax credits and other		(147,000	)		(306,000	)		(93,000	)
Income tax expense	$	710,000		$	1,480,000		$	1,319,000