5. Income Taxes	9 Months Ended
Sep. 30, 2016
Notes to Financial Statements
NOTE 5 - Income Taxes	Income tax expense totaling approximately $365 and $1,355 has been recorded for the three and nine months ended September 30, 2016, respectively, compared with $85 and $358, respectively, for the same period last year. As of September 30, 2016 and December 31, 2015, the Company’s net deferred tax assets totaled approximately $3,564 and $5,461, respectively, and are primarily composed of net operating loss carryforwards (“NOLs”), and research and development costs and tax credits partially offset by deferred tax liabilities of $1,168 and $671, respectively, primarily derived from depreciation and the unrealized gain on available-for-sale securities. As of September 30, 2016, these NOLs total approximately $816 for federal and $11,575 for state purposes, with expirations starting in 2018 through 2030. In order to fully utilize the net deferred tax assets, the Company will need to generate sufficient taxable income in future years to utilize its NOLs prior to their expiration. The Company analyzed all positive and negative evidence to determine if, based on the weight of available evidence, the Company is more likely than not to realize the benefit of the net deferred tax assets. The recognition of the net deferred tax assets and related tax benefits is based upon the Company’s conclusions regarding, among other considerations, estimates of future earnings based on information currently available, current and anticipated customers, contracts and product introductions, as well as historical operating results and certain tax planning strategies. The Company has evaluated the available evidence and the likelihood of realizing the benefit of its net deferred tax assets. Based on its evaluation, the Company has concluded that based on the weight of available evidence, it is more likely than not that the Company will realize the full benefit of its net deferred tax assets recorded at September 30, 2016. The Company cannot presently estimate what, if any, changes to the valuation of its deferred tax assets may be deemed appropriate in the future. If the Company incurs future losses, it may be necessary to record additional valuation allowance related to the deferred tax assets recognized as of September 30, 2016.

5. Income Taxes

9 Months Ended

Sep. 30, 2016

Income tax expense totaling approximately $365 and $1,355 has been recorded for the three and nine months ended September 30, 2016, respectively, compared with $85 and $358, respectively, for the same period last year.

As of September 30, 2016 and December 31, 2015, the Company’s net deferred tax assets totaled approximately $3,564 and $5,461, respectively, and are primarily composed of net operating loss carryforwards (“NOLs”), and research and development costs and tax credits partially offset by deferred tax liabilities of $1,168 and $671, respectively, primarily derived from depreciation and the unrealized gain on available-for-sale securities. As of September 30, 2016, these NOLs total approximately $816 for federal and $11,575 for state purposes, with expirations starting in 2018 through 2030.

In order to fully utilize the net deferred tax assets, the Company will need to generate sufficient taxable income in future years to utilize its NOLs prior to their expiration. The Company analyzed all positive and negative evidence to determine if, based on the weight of available evidence, the Company is more likely than not to realize the benefit of the net deferred tax assets. The recognition of the net deferred tax assets and related tax benefits is based upon the Company’s conclusions regarding, among other considerations, estimates of future earnings based on information currently available, current and anticipated customers, contracts and product introductions, as well as historical operating results and certain tax planning strategies.

The Company has evaluated the available evidence and the likelihood of realizing the benefit of its net deferred tax assets. Based on its evaluation, the Company has concluded that based on the weight of available evidence, it is more likely than not that the Company will realize the full benefit of its net deferred tax assets recorded at September 30, 2016. The Company cannot presently estimate what, if any, changes to the valuation of its deferred tax assets may be deemed appropriate in the future. If the Company incurs future losses, it may be necessary to record additional valuation allowance related to the deferred tax assets recognized as of September 30, 2016.