8. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes Tables

Schedule of income tax expense/benefit

	Years Ended December 31,
	2013		2012
Current:
Federal	$	15	$	49
State		1		5
		16		54
Deferred:
Federal		478		722
State		21		40
		499		762
	$	515	$	816

Schedule of effective income tax rate

	Years Ended December 31,
	2013			2012
Statutory U.S. income tax rate		34.00	%		34.00	%
States taxes, net of federal benefit		1.29	%		1.50	%
Permanent differences		2.36	%		1.04	%
Change in valuation allowance		(0.84	)%		(8.19	)%
Change in net operating loss carryforwards and
tax credits		(5.02	)%		0.30	%
Other		(0.70	)%		(0.33	)%
Effective income tax rate		31.09	%		28.32	%

Schedule of deferred tax assets and libilities

	December 31,
	2013					2012
	Current		Long Term			Current		Long Term
Deferred tax assets:
Operating loss carryforwards	$	1,542	$	1,651		$	2,098	$	1,369
R and D tax credit		—		951			—		860
AMT tax credit		—		266			—		251
Section 263A costs		535		—			534		—
Research and development costs		219		1,209			219		1,206
Amortization		—		—			—		19
Asset reserves:
Bad debts		30		—			14		—
Inventory reserve		1,058		—			1,009		—
Accrued expenses:
Non-qualified stock options		—		78			—		77
Compensation		199		—			208		—
Warranty		253		—			347		—
Deferred tax assets		3,836		4,155			4,429		3,782
Less valuation allowance		—		—			—		(14	)
Less APIC pool reserve		—		(380	)		—		(380	)
Total deferred tax assets		3,836		3,775			4,429		3,388
Deferred tax liabilities:
Depreciation		—		(507	)		—		(410	)
Amortization		—		(196	)		—		—
Total deferred tax liabilities		—		(703	)		—		(410	)
Net deferred tax assets	$	3,836	$	3,072		$	4,429	$	2,978