Note 7 - Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

7. INCOME TAXES

The provision for income taxes consists of the following:

	2014			2013		2012
Current provision:
Federal		3,368,974		$	2,982,023	$	3,054,862
State		548,225			527,042		415,244
		3,917,199			3,509,065		3,470,106
Deferred provision (benefit):
Federal		210,343			399,032		(107,843	)
State		(26,853	)		46,945		(12,688	)
		183,490			445,977		(120,531	)
	$	4,100,689		$	3,955,042	$	3,349,575

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

	2014			2013			2012
United States	$	10,339,632		$	9,920,099		$	7,941,689
United Kingdom		557,776			565,538			509,426
Canada		874,571			858,532			999,609
Australia		102,922			69,905			(210,372	)
Spain		(67,291	)		(193,315	)		(294,707	)
	$	11,807,610		$	11,220,759		$	8,945,645

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

	2014			2013
Deferred income tax assets:
Allowance for doubtful accounts	$	150		$	98
Capitalized inventory costs		306,592			208,384
Warrants and stock-based compensation		44,151			48,591
Accrued expenses, reserves, and other		64,747			101,050
Total deferred income tax assets		415,640			358,123
Deferred income tax liabilities:
Property and equipment depreciation		1,299,826			1,074,646
Goodwill and other intangible assets amortization		202,328			186,501
Total deferred income tax liabilities		1,502,154			1,261,147
Net deferred tax asset (liability)	$	(1,086,514	)	$	(903,024	)

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

	2014			2013
Current deferred tax assets		371,491		$	309,533
Long-term deferred tax liabilities		(1,458,005	)		(1,212,557	)
Net deferred tax asset (liability)	$	(1,086,514	)	$	(903,024	)

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

	2014			2013			2012
Statutory rate – Federal US income tax		34	%		34	%		34	%
State and local taxes		5	%		6	%		4	%
Non-U.S. income tax at different rates		(1%	)		(1%	)		1	%
Domestic production activities deduction		(1%	)		(2%	)		(1%	)
Other, net		(2%	)		(2%	)		(1%	)
Effective rate		35	%		35	%		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 2012. Depending on the jurisdiction, we are no longer subject to state examinations by tax authorities for years prior to the December 2011 and December 2012 tax years.