Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

8. INCOME TAXES

The provision for income taxes consists of the following:

	2013		2012			2011
Current provision:
Federal	$	2,982,023	$	3,054,862		$	2,155,653
State		527,042		415,244			375,336
		3,509,065		3,470,106			2,530,989
Deferred provision (benefit):
Federal		399,032		(107,843	)		229,540
State		46,945		(12,688	)		27,004
		445,977		(120,531	)		256,544
	$	3,955,042	$	3,349,575		$	2,787,533

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

	2013			2012			2011
United States	$	9,920,099		$	7,941,689		$	6,344,634
United Kingdom		565,538			509,426			476,414
Canada		858,532			999,609			945,041
Australia		69,905			(210,372	)		(131,467	)
Spain		(193,315	)		(294,707	)		(93,120	)
	$	11,220,759		$	8,945,645		$	7,541,502

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

	2013			2012
Deferred income tax assets:
Allowance for doubtful accounts	$	98		$	39,310
Capitalized inventory costs		208,384			200,017
Warrants and stock-based compensation		48,591			54,042
Accrued expenses, reserves, and other		101,050			110,151
Total deferred income tax assets		358,123			403,520
Deferred income tax liabilities:
Property and equipment depreciation		1,074,646			689,893
Goodwill and other intangible assets amortization		186,501			170,674
Total deferred income tax liabilities		1,261,147			860,567
Net deferred tax asset (liability)	$	(903,024	)	$	(457,047	)

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

	2013			2012
Current deferred tax assets	$	309,533		$	349,478
Long-term deferred tax liabilities		(1,212,557	)		(806,525	)
Net deferred tax asset (liability)	$	(903,024	)	$	(457,047	)

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

	2013			2012			2011
Statutory rate – Federal US income tax		34	%		34	%		34	%
State and local taxes		6	%		4	%		4	%
Non-U.S. income tax at different rates		(1%	)		1	%		2	%
Domestic production activities deduction		(2%	)		(1%	)		(1%	)
Other, net		(2%	)		(1%	)		(2%	)
Effective rate		35	%		37	%		37	%

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 2011. Depending on the jurisdiction, we are no longer subject to state examinations by tax authorities for years prior to the December 2010 and December 2011 tax years.