Note 9 - Income Taxes

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 9: INCOME TAXES

The provision for income taxes includes the following:

	Six Months Ended June 30,
	2017		2016
Current:
Federal	$	758,297	$	(71,070	)
State		11,580		--
Total Current Provision		769,877		(71,070	)
Deferred:
Federal	$	488,038	$	(632,992	)
State		----		----
Total deferred		488,038		(632,992	)
Income tax expense/(benefit)	$	1,257,915	$	(704,062	)

Tax Rate Reconciliation

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

For 

	Six Months Ended
	June 30,
	2017			2016
Income tax expense/(benefit) at federal statutory rate [34%]	$	1,361,450		$	(353,981	)
State taxes		7,643			--
Change in other accruals		101			(108,172	)
Difference between tax and book depreciation		91,033			(53,112	)
Stock-based compensation		(58,334	)		(117,727	)
Domestic production activities deduction		(137,178	)		--
Net operating loss carryforward		(6,800	)		--
Provision for 2014 tax return true up		--			(71,070	)
Income tax expense/(benefit)	$	1,257,915		$	(704,062	)

● 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.