Note 9 - Income Taxes

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 9:     INCOME TAXES

The provision for income taxes includes the following:

	Nine Months Ended September 30,
	2016			2015
Current:
Federal	$	(71,070	)	$	1,043,650
State		314			15,859
Total Current Provision		(70,756	)		1,059,509
Deferred:
Federal	$	(836,616	)	$	(331,750	)
State		----			---
Total deferred		(836,616	)		(331,750	)
Income tax expense/(benefit)	$	(907,372	)	$	727,759

Tax Rate Reconciliation

The reconciliation between the Company’s effective tax rate on income from continuing operations and the statutory rate is as follows:

	Nine Months Ended
	September 30,
	2016			2015
Income tax benefit at federal statutory rate [34%]	$	(620,882	)	$	1,204,274
Change in capitalized inventory (Section 263A)
Change in other accruals		(13,537	)		32,217
Difference between tax and book depreciation		50,213			(24,312	)
Stock-based compensation		(48,993	)		(39,234	)
Research and development credits		(203,103	)		(973,649	)
Domestic production activities deduction		---			(109,989	)
Net operating loss carryforward		---			954,581
Tax carryback		---			(511,158	)
Provision for tax return true up		(71,070	)		195,029
Income tax expense	$	(907,372	)	$	727,759