8. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes Tables

Schedule of income tax expense/benefit

	Years Ended December 31,
	2015		2014
Current:
Federal	$	18	$	23
State		—		2
		18		25
Deferred:
Federal		289		827
State		38		48
		327		875
	$	345	$	900

Schedule of effective income tax rate

	Years Ended December 31,
	2015			2014
Statutory U.S. income tax rate		34.00	%		34.00	%
States taxes, net of federal benefit		1.84	%		1.95	%
Permanent differences		3.54	%		1.55	%
Change in valuation allowance		0.00	%		0.00	%
Change in net operating loss carryforwards and
tax credits		(13.08	)%		(2.20	)%
Other		(1.33	)%		0.38	%
Effective income tax rate		24.97	%		35.68	%

Schedule of deferred tax assets and liabilities

	Years Ended December 31,
	2015			2014
Deferred tax assets:
Operating loss carry-forwards	$	2,263		$	2,787
R&D Tax Credit		1,195			1,021
AMT Tax Credit		303			269
Section 263A costs		552			421
R&D costs		861			1,428
Amortization		33			—
Asset reserves:
Bad debts		18			18
Inventory allowance		601			608
Accrued expenses:
Non-qualified stock options		78			78
Compensation		240			202
Warranty		368			315
Deferred tax assets		6,512			7,147
Less APIC pool allowance		(380	)		(380	)
Total deferred tax assets		6,132			6,767
Deferred tax liabilities:
Depreciation		(426	)		(370	)
Amortization		—			(364	)
Unrealized gain		(245	)		—
Total deferred tax liabilities		(671	)		(734	)
Net deferred tax assets	$	5,461		$	6,033