INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

INCOME TAXES [Abstract]

Income Tax Expense (Benefit)

The provision for income taxes consists of the following:

	Year ended December 31,
	2019			2018
Current taxes:
Federal	$	5,945,534		$	4,612,874
State		58,390			40,958
Total current taxes		6,003,924			4,653,832
Deferred taxes:
Federal		(172,020	)		86,634
State		(3,064	)		3,542
Total deferred taxes		(175,084	)		90,176
Total provision for income taxes	$	5,828,840		$	4,744,008

Effective Income Tax Rate Reconciliation

The effective income tax rate of the Company differs from the federal statutory tax rate due to the following items:

	Year ended December 31,
	2019			2018
Statutory rate		21.00	%		21.00	%
State income taxes, net of federal income tax benefit		0.23	%		0.13	%
Stock-based compensation		(0.60	)%		(1.64	)%
Deferred rate change		-			0.01	%
Foreign dividends and earnings taxable in the U.S.		(0.66	)%		-
Miscellaneous other, net		(0.73	)%		(0.37	)%
Effective tax rate		19.24	%		19.13	%

Deferred Tax Asset

The components of deferred income tax assets and liabilities are as follows:

	December 31,
	2019			2018
Stock option based compensation	$	50,021		$	239,492
Right of use asset		(52,515	)		-
Lease obligation		51,798			-
Section 481(a) revenue recognition deferred		(707,208	)		-
Other liabilities		85,244			74,276
Net deferred tax asset (liability)	$	(572,660	)	$	313,768