8. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes Tables

Schedule of income tax expense/benefit

	Years Ended December 31,
	2014		2013
Current:
Federal	$	23	$	15
State		2		1
		25		16
Deferred:
Federal		827		478
State		48		21
		875		499
	$	900	$	515

Schedule of effective income tax rate

	Years Ended December 31,
	2014			2013
Statutory U.S. income tax rate		34.00	%		34.00	%
States taxes, net of federal benefit		1.95	%		1.29	%
Permanent differences		1.55	%		2.36	%
Change in valuation allowance		0.00	%		(0.84	)%
Change in net operating loss carryforwards and
tax credits		(2.20	)%		(5.02	)%
Other		0.38	%		(0.70	)%
Effective income tax rate		35.68	%		31.09	%

Schedule of deferred tax assets and libilities

	December 31,
	2014					2013
	Current		Long Term			Current		Long Term
Deferred tax assets:
Operating loss carryforwards	$	2,009	$	778		$	1,542	$	1,651
R and D tax credit		—		1,021			—		951
AMT tax credit		—		269			—		266
Section 263A costs		421		—			535		—
Research and development costs		170		1,258			219		1,209
Amortization		—		—			—		—
Asset reserves:
Bad debts		18		—			30		—
Inventory reserve		608		—			1,058		—
Accrued expenses:
Non-qualified stock options		—		78			—		78
Compensation		202		—			199		—
Warranty		315		—			253		—
Deferred tax assets		3,743		3,404			3,836		4,155
Less valuation allowance		—		—			—		—
Less APIC pool reserve		—		(380	)		—		(380	)
Total deferred tax assets		3,743		3,024			3,836		3,775
Deferred tax liabilities:
Depreciation		—		(370	)		—		(507	)
Amortization		—		(364	)		—		(196	)
Total deferred tax liabilities		—		(734	)		—		(703	)
Net deferred tax assets	$	3,743	$	2,290		$	3,836	$	3,072