Income Taxes

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

11. Income Taxes

The income tax provisions are comprised of the following: :

	Dec. 31 2011		Dec. 31 2010
Current:
Federal	$	-	$	-
State		15,851		-
Foreign		149,763		385,792
	$	165,614	$	385,792
Deferred
Federal	$	228,524	$	(43,104)
State		-		-
Foreign		(74,694)		-
		153,830		(43,104)
Total Income Tax Provision	$	319,444	$	342,688

The components of the net deferred tax asset at December 31 are as follows:

	2011		2010
Deferred tax assets:
Allowance for doubtful accounts	$	11,682	$	13,748
Inventory allowances		181,170		141,244
Accrued liabilities		70,765		92,095
Unicap 263A adjustment		151,625		145,035
Net operating loss carryforwards		955,717		975,327
Alternative minimum tax credit carryforwards		351,619		351,619
State investment tax credit carryforward		30,512		30,512
Foreign tax credit carryforward		298,635		298,636
Other foreign tax items		246,473		247,035
Foreign asset tax credit carryforward		-		(80,368)
Total deferred tax assets		2,298,198		2,214,883
Deferred tax liabilities:
Book over tax basis of capital assets		(1,175,615)		(943,582)
Other foreign tax items		(165,099)		(159,986)
Net deferred tax assets	$	957,484	$	1,111,315

The Company maintained a valuation allowance with respect to deferred tax assets as a result of the uncertainty of ultimate realization as of December 31, 2009. At December 31, 2011 and 2010, the Company believes that it is more likely than not that it will utilize all of its net operating loss carry forwards and no longer requires a valuation allowance. The Company has a net operating loss carryforwards of approximately $2,730,000 expiring in various years through 2025. In addition, the Company has approximately $352,000 of alternative minimum tax credits as of December 31, 2011, which have no expiration date.

Income tax provisions differed from the taxes calculated at the statutory federal tax rate as follows:

	Years Ended December 31,
	2011		2010
Taxes at statutory rate	$	245,966	$	733,585
State income taxes		43,395		100,983
Nondeductible expenses		57,772		55,871
Decrease in deferred tax valuation allowance		-		(528,988)
Foreign taxes and other		(27,689)		(18,763)
Income tax provision	$	319,444	$	342,688

The Company files tax returns in the U.S. federal and U.K, Germany and Mexico foreign tax jurisdictions and various state jurisdictions. The tax years 2006 through 2010 remain open to examination. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. During the twelve months ended December 31, 2011 and 2010, the Company did not recognize expense for interest or penalties, and do not have any amounts accrued at December 31, 2011 and 2010, as the Company does not believe it has taken any uncertain tax positions.