Note 5 - Income Tax Matters

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

5

– Income Tax Matters

The Company conducts an on-going analysis to review its net deferred tax asset and the need for a related valuation allowance. As a result of this analysis and the actual results of operations, the Company has decreased its net deferred tax assets by

$35,169

and

$1,381

during the

three

months ended

March

31,

2017

and

2016,

respectively. The change in deferred tax assets is attributable to the reversal of various book/tax differences.

At

March

31,

2017,

the Company estimated its annual effective tax rate for

2017

to be

49.3%.

The Company recognized a tax expense of

$87,775

for the

three

months ended

March

31,

2017

primarily due to expected net income for the remainder of

2017.

At

March

31,

2017,

the difference from the expected federal income tax rate is attributable to state income taxes and certain permanent book-tax differences.