INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

INCOME TAXES [Abstract]

Schedule of provision (benefit) for income taxes

The provision for income taxes for the years ended December 31, 2013 and 2012, is comprised of the following:

	2013		2012
Current
Federal	$	27,175	$	33,054
State		1,623		5,098
Total current provision		28,798		38,152
Deferred
Federal		454,439		464,005
State		3,715		7,080
Total deferred provision		458,154		471,085
Total provision	$	486,952	$	509,237

Schedule of deferred tax assets

	2013			2012
Current assets
Inventory reserves	$	307,080		$	224,694
Accrued expenses		329,187			226,740
Net current deferred asset	$	636,267		$	451,434
Noncurrent assets
Net operating loss carry-forwards	$	3,616,089		$	4,236,008
Research and development credit		1,052,166			711,444
Other credits		124,413			97,234
Other		107,808			99,097
Gross noncurrent deferred tax assets		4,900,476			5,143,783
Depreciation		(258,103	)		(199,145	)
Noncurrent deferred tax assets		4,642,373			4,944,638
Less valuation allowances		(1,052,166	)		(711,444	)
Net noncurrent deferred tax assets	$	3,590,207		$	4,233,194

Schedule of reconciliation of the Federal statutory rate to the effective rate applicable to income (loss) before income taxes

A reconciliation of the Federal statutory rate to the effective rate applicable to income (loss) before income taxes is as follows:

	Year Ending December 31,
	2013	2012
Federal income tax at statutory rates	34.00%	34.00%
State income taxes, net of federal benefit	.47%	0.70%
Nondeductible expenses	10.27%	5.40%
Change in valuation allowance	33.48%	8.90%
Tax credits	(33.48)%	(8.90)%
Change in tax rates	3.10%	(5.20)%
Other	(.01)%	0.20%
Income tax (benefit)	47.83%	35.10%