Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8. INCOME TAXES

The provision for income taxes consists of the following:

	201 5		201 4			2013
Current provision:
Federal		3,045,292	$	3,368,974		$	2,982,023
State		482,186		548,225			527,042
		3,527,478		3,917,199			3,509,065
Deferred provision (benefit):
Federal		212,563		210,343			399,032
State		76,607		(26,853	)		46,945
		289,170		183,490			445,977
	$	3,816,648	$	4,100,689		$	3,955,042

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

	201 5			201 4			2013
United States	$	9,272,854		$	10,339,632		$	9,920,099
United Kingdom		(43,567	)		557,776			565,538
Canada		813,824			874,571			858,532
Australia		48,633			102,922			69,905
Spain		127,309			(67,291	)		(193,315	)
	$	10,219,053		$	11,807,610		$	11,220,759

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

	2015			201 4
Deferred income tax assets:
Allowance for doubtful accounts	$	-		$	150
Capitalized inventory costs		260,385			306,592
Warrants and stock-based compensation		44,151			44,151
Accrued expenses, reserves, and other		66,444			64,747
Total deferred income tax assets		370,980			415,640
Deferred income tax liabilities:
Property and equipment depreciation		1,529,397			1,299,826
Goodwill and other intangible assets amortization		217,268			202,328
Total deferred income tax liabilities		1,746,665			1,502,154
Net deferred tax asset (liability)	$	(1,375,685	)	$	(1,086,514	)

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

	201 5			201 4
Current deferred tax assets	$	326,830		$	371,491
Long-term deferred tax liabilities		(1,702,515	)		(1,458,005	)
Net deferred tax asset (liability)	$	(1,375,685	)	$	(1,086,514	)

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

	2015			201 4			2013
Statutory rate – Federal US income tax		34	%		34	%		34	%
State and local taxes		6	%		5	%		6	%
Non-U.S. income tax at different rates		-			(1%	)		(1%	)
Domestic production activities deduction		(1%	)		(1%	)		(2%	)
Other, net		(2%	)		(2%	)		(2%	)
Effective rate		37	%		35	%		35	%

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 2013. Depending on the jurisdiction, we are no longer subject to state examinations by tax authorities for years prior to the December 2012 and December 2013 tax years.