8. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes Tables

Schedule of income tax expense/benefit

	Years Ended December 31,
	2012		2011			2010
Current:
Federal	$	49	$	83		$	3
State		5		11			2
		54		94			5
Deferred:
Federal		722		(359	)		32
State		40		(8	)		(30	)
		762		(367	)		2
	$	816	$	(273	)	$	7

Schedule of effective income tax rate

	Years Ended December 31,
	2012			2011			2010
Statutory U.S. income tax rate		34.0	%		(34.0	)%		(34.0	)%
States taxes, net of federal benefit		1.50	%		(0.58	)%		(4.4	)%
Permanent differences		1.04	%		11.07	%		19.0	%
Change in valuation allowance		(8.19	)%		(9.13	)%		52.0	%
Change in net operating loss carryforwards and
tax credits		0.30	%		(3.36	)%		(33.2	)%
Other		(0.33	)%		0.42	%		1.7	%
Effective income tax rate		28.32	%		35.58	%		1.1	%

Schedule of deferred tax assets and libilities

	December 31,
	2012					2011
	Current		Long Term			Current		Long Term
Deferred tax assets:
Operating loss carryforwards	$	2,098	$	1,369		$	1,224	$	3,109
R and D tax credit		—		860			—		860
AMT tax credit		—		251			—		202
Section 263A costs		534		—			496		—
Research and development costs		219		1,206			244		1,432
Amortization		—		19			—		15
Asset reserves:
Bad debts		14		—			16		—
Inventory reserve		1,009		—			987		—
Accrued expenses:
Non-qualified stock options		—		77			—		78
Compensation		208		—			187		—
Warranty		347		—			304		—
Deferred tax assets		4,429		3,782			3,458		5,696
Less valuation allowance		—		(14	)		—		(250	)
Less APIC pool reserve		—		(380	)		—		(380	)
Total deferred tax assets		4,429		3,388			3,458		5,066
Deferred tax liabilities:
Depreciation		—		(410	)		—		(354	)
Total deferred tax liabilities		—		(410	)		—		(354	)
Net deferred tax assets	$	4,429	$	2,978		$	3,458	$	4,712