9. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes Tables

Schedule of income tax expense/benefit

	Years Ended December 31,
	2016		2015
Current:
Federal	$	61	$	18
State		11		—
		72		18
Deferred:
Federal		1,296		289
State		215		38
		1,511		327
	$	1,583	$	345

Schedule of effective income tax rate

	Years Ended December 31,
	2016			2015
Statutory U.S. income tax rate		34.00	%		34.00	%
States taxes, net of federal benefit		2.33	%		1.84	%
Non-deductible item		0.54	%		3.54	%
Change in valuation allowance		1.78	%		0.00	%
Change in net operating loss carryforwards and
tax credits		(1.65	)%		(13.08	)%
Other		0.13	%		(1.33	)%
Effective income tax rate		37.13	%		24.97	%

Schedule of deferred tax assets and liabilities

	Years Ended December 31,
	2016			2015
Deferred tax assets:
Operating loss carryforwards	$	1,035		$	2,263
R&D Tax Credit		1,310			1,195
AMT Tax Credit		364			303
Section 263A costs		502			552
R&D costs		690			861
Amortization		34			33
Asset reserves:
Bad debts		18			18
Inventory allowance		574			601
Accrued expenses:
Non-qualified stock options		86			78
Compensation		261			240
Warranty		415			368
Deferred tax assets		5,289			6,512
Less state valuation allowance		(76	)		—
Less APIC pool allowance		—			(380	)
Total deferred tax assets		5,213			6,132
Deferred tax liabilities:
Depreciation		(626	)		(426	)
Unrealized gain		(1,169	)		(245	)
Total deferred tax liabilities		(1,795	)		(671	)
Net deferred tax assets	$	3,418		$	5,461