INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES (Tables):

Operating Loss Carry Forwards

The provision for income taxes differ from the amount computed using the federal US statutory income tax rate as follows:

	2015			2014
Provision (Benefit) at US Statutory Rate	$	240,000		$	(149,000	)
Alternative Minimum Tax		7,500			-
Depreciation and Amortization		(29,000	)		(33,000	)
Accrued Sales Allowance and Other Liabilities		(31,000	)		67,000
Non-Deductible Stock Based Compensation		32,000			15,000
Other Differences		51,000			45,000
Increase (Decrease) in Valuation Allowance		(263,000	)		55,000
Income Tax Provision (Benefit)	$	7,500		$	-

Provision for income taxes differ from the amount computed

The tax effects of temporary differences and carry forwards that give rise to significant portions of deferred tax assets and liabilities consist of the following:

	2015			2014
Deferred tax assets:
Net operating loss carryforward	$	742,000		$	1,054,000
Intangible assets		395,000			351,000
Fixed assets		-			9,000
Valuation allowance		(1,084,000	)		(1,347,000	)
		53,000			67,000
Deferred tax liabilities:
Liabilities and reserves		(36,000	)		(67,000	)
Inventory		(11,000	)		-
Fixed assets		(6,000	)		-
		(53,000	)		(67,000	)
Net deferred tax assets and liabilities	$	-		$	-