10.

Income Taxes

The income tax provisions are comprised of the following:

	Dec. 31 2015		Dec. 31 2014
Current:
Federal	$	6,516	$	-
State		4,200		94,371
Foreign		374,071		578,798
	$	384,787	$	673,169

Deferred
Federal	$	(63,433)	$	(550,089)
State		-		-
Foreign		48,242		66,887
		(15,191)		(483,202)
Total Income Tax Provision	$	369,596	$	189,967

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

	2015		2014
Deferred tax assets:
Allowance for doubtful accounts	$	21,150	$	69,898
Inventory allowances		314,101		246,425
Accrued liabilities		372,172		282,055
Unicap 263A adjustment		170,765		157,240
Net operating loss carryforwards		511,403		685,322
Alternative minimum tax credit carryforwards		-		398,162
State investment tax credit carryforward		22,448		10,912
Foreign tax credit carryforward		916,121		696,509
Other foreign tax items		44,394		50,747
Foreign net operating loss carryforwards		424,164		466,053
Total deferred tax assets		2,796,718		3,063,323
Deferred tax liabilities:
Tax over book basis of capital assets		(1,004,437)		(1,083,852)
Undistributed Earnings from Subsidiaries		-		(247,385)
Other foreign tax items		-		-
Net deferred tax assets before valuation allowance	$	1,792,281	$	1,732,086
Less: Valuation allowance		(45,000)		-
Net deferred tax assets		1,747,281		1,732,086

The Company has net operating loss carryforwards of approximately $1,858,000 expiring in various years through 2025.

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

	Years Ended December 31,
	2015		2014
Taxes at statutory rate	$	444,471	$	183,344
State income taxes		66,867		27,583
Nondeductible expenses		46,523		59,129
Foreign taxes and other		(188,266)		(80,089)
Income tax provision	$	369,596	$	189,967

The Company files tax returns in the U.S., and in the U.K, Germany and Mexico foreign tax jurisdictions and also in various state jurisdictions in the U.S. The tax years 2012 through 2014 remain open to examination. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. During the year ended December 31, 2015 and 2014, the Company did not recognize expense for interest or penalties, and do not have any amounts accrued at December 31, 2015 and 2014, as the Company does not believe it has any uncertain tax positions.