Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Text Block]

8.  INCOME TAXES

The provision for income taxes consists of the following:

		2012			2011		2010
Current provision:
	Federal	$	3,054,862		$	2,155,653	$	2,121,604
	State		415,244			375,336		286,171
			3,470,106			2,530,989		2,407,775
Deferred provision (benefit):
	Federal		(107,843	)		229,540		(80,991	)
	State		(12,688	)		27,004		(9,529	)
			(120,531	)		256,544		(90,520	)
		$	3,349,575		$	2,787,533	$	2,317,255

Income before income taxes is earned in the following tax jurisdictions:

	2012			2011			2010
United States	$	7,941,689		$	6,344,634		$	5,670,352
United Kingdom		509,426			476,414			319,290
Canada		999,609			945,041			486,981
Australia		(210,372	)		(131,467	)		-
Spain		(294,707	)		(93,120	)		-
	$	8,945,645		$	7,541,502		$	6,476,623

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows:

	2012			2011
Deferred income tax assets:
Allowance for doubtful accounts	$	39,310		$	30,729
Capitalized inventory costs		200,017			147,135
Warrants and stock-based compensation		54,042			54,042
Accrued expenses, reserves, and other		110,151			103,387
Total deferred income tax assets		403,520			335,293
Deferred income tax liabilities:
Property and equipment depreciation		689,893			758,024
Goodwill and other intangible assets amortization		170,674			154,847
Total deferred income tax liabilities		860,567			912,871
Net deferred tax asset (liability)	$	(457,047	)	$	(577,578	)

The net deferred tax liability is classified on the balance sheets as follows:

	2012			2011
Current deferred tax assets	$	349,478		$	281,251
Long-term deferred tax liabilities		(806,525	)		(858,829	)
Net deferred tax asset (liability)	$	(457,047	)	$	(577,578	)

The effective tax rate differs from the statutory rate as follows:

	2012			2011			2010
Statutory rate – Federal US income tax		34	%		34	%		34	%
State and local taxes		4	%		4	%		4	%
Non-U.S. income tax at different rates		1	%		2	%		-
Domestic production activities deduction		(1	%)		(1	%)		(1	%)
Other, net		(1	%)		(2	%)		(1	%)
Effective rate		37	%		37	%		36	%

We file a consolidated U.S. income tax return as well as state tax returns on a consolidated, combined or stand-alone basis, depending on the jurisdiction.  We are no longer subject to U.S. federal income tax examinations by tax authorities for years prior to the tax year ended December 2010.  Depending on the jurisdiction, we are no longer subject to state examinations by tax authorities for years prior to the December 2009 and December 2010 tax years.