XML 35 R28.htm IDEA: XBRL DOCUMENT v2.4.1.9
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Income tax expense in the consolidated statements of income and comprehensive income consists of:
 
 
 
Years Ended December 31,
 
 
 
2014
 
2013
 
Current:
 
 
 
 
 
 
 
Federal
 
$
123,000
 
$
(317,000)
 
State and local
 
 
109,000
 
 
108,000
 
Foreign
 
 
7,000
 
 
—
 
Total current
 
 
239,000
 
 
(209,000)
 
Deferred:
 
 
 
 
 
 
 
Federal
 
 
1,830,000
 
 
1,471,000
 
State and local
 
 
208,000
 
 
117,000
 
Reversal of State and Local Valuation Allowance
 
 
(574,000)
 
 
—
 
Foreign
 
 
(6,000)
 
 
—
 
Total deferred
 
 
1,458,000
 
 
1,588,000
 
Totals
 
$
1,697,000
 
$
1,379,000
 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Deferred tax assets (liabilities) consist of:
 
 
 
December 31,
 
 
 
2014
 
2013
 
Deferred tax assets—current:
 
 
 
 
 
 
 
Bad debt reserves
 
$
52,000
 
$
86,000
 
Inventory reserves
 
 
1,066,000
 
 
989,000
 
Warranty and other reserves
 
 
220,000
 
 
314,000
 
 
 
 
1,338,000
 
 
1,389,000
 
Valuation allowance
 
 
—
 
 
(11,000)
 
 
 
 
1,338,000
 
 
1,378,000
 
Deferred tax (liabilities)—current:
 
 
 
 
 
 
 
Prepaid expenses
 
 
(189,000)
 
 
(210,000)
 
Net deferred tax assets—current
 
$
1,149,000
 
$
1,168,000
 
Deferred tax assets—non-current
 
 
 
 
 
 
 
Federal net operating loss
 
$
206,000
 
$
2,195,000
 
State net operating loss
 
 
208,000
 
 
614,000
 
Tax credits
 
 
243,000
 
 
128,000
 
Stock based compensation
 
 
521,000
 
 
455,000
 
Other
 
 
95,000
 
 
1,000
 
 
 
 
1,273,000
 
 
3,393,000
 
Valuation allowance
 
 
—
 
 
(617,000)
 
 
 
 
1,273,000
 
 
2,776,000
 
Deferred tax (liabilities)—non-current:
 
 
 
 
 
 
 
Depreciation
 
 
(1,036,000)
 
 
(1,032,000)
 
Intangibles
 
 
(2,864,000)
 
 
(144,000)
 
Goodwill
 
 
(93,000)
 
 
(6,000)
 
 
 
 
(3,993,000)
 
 
(1,182,000)
 
Net deferred tax (liabilities) assets —non-current
 
$
(2,720,000)
 
$
1,594,000
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
A reconciliation of the Federal statutory rate to the total effective tax rate applicable to income from continuing operations is as follows:
 
 
 
Years ended December 31,
 
 
 
2014
 
2013
 
Federal income tax computed at statutory rates
 
34.0
%
34.0
%
(Decrease) increase in taxes resulting from:
 
 
 
 
 
State and local taxes, net of Federal tax benefit
 
4.1
 
3.2
 
Change in valuation allowance
 
(10.0)
 
(0.6)
 
Expenses not deductible for tax purposes - net
 
5.1
 
0.5
 
Lapse of statute of limitation on uncertain tax position
 
—
 
(6.8)
 
Reversal of liabilities (1)
 
11.3
 
—
 
Other
 
0.4
 
(0.3)
 
Income tax expense
 
44.9
%
30.0
%
 
(1)
As the result of the expiration of various state statute of limitations pertaining to approximately $1.2 million of unpaid vendor invoices belonging to a formerly deconsolidated subsidiary, for which claims for payment were not submitted, the Company was required to recognize a gain for income tax purposes.
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]
The Company follows the authoritative guidance issued by the FASB that pertains to the accounting for uncertain tax matters. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
  
Balance at January 1, 2013
 
$
315,000
 
Interest accrual
 
 
14,000
 
Lapse of statute of limitation on uncertain tax position
 
 
(329,000)
 
Balance at January 1, 2014
 
 
—
 
Additions for tax positions related to current year acquisition
 
 
866,000
 
Interest accrual
 
 
14,000
 
Balance at December 31, 2014
 
$
880,000