Note 9 - Income Taxes

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

9:

     INCOME TAXES

The provision for income taxes includes the following:

	Three Months Ended March 31,
	2017		2016
Current:
Federal	$	383,178	$	(71,070	)
State		9,780		---
Total current provision		392,958		(71,070	)
Deferred:
Federal	$	291,174	$	(132,620	)
State		----		----
Total deferred provision		291,174		(132,620	)
Income tax expense/(benefit)	$	684,132	$	(203,690	)

Tax Rate Reconciliation

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

	Three Months Ended
	March 31,
	2017			2016
Income tax expense at federal statutory rate [34%]	$	717,600	*	$	---
State taxes		6,455			---
Change in other accruals		5,639			(50,392	)
Difference between tax and book depreciation		54,390			(26,586	)
FAS 123R employee compensation		(36,032	)		(55,642	)
Domestic production activities deduction		(50,320	)		---
Net operating loss		(13,600	)		---
Provision for 2014 tax return true up		---			(71,070	)
Income tax expense/(benefit)	$	684,132		$	(203,690	)

*

Income taxes for the foreign entity, a wholly owned subsidiary, will be computed at the applicable tax rate in the country in which the Company operates. The foreign entity had a net loss during the current period. This net operating loss

may

result in future income tax benefits, however, because realization is uncertain at this time, a valuation reserve in the same amount has been established.