Note 13 - Income Taxes

12 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

13.           INCOME TAXES

The provision for income taxes is as follows: 

	Year Ended March 31,
	2014		2013
Current:
Federal	$	36,000	$	820,000
State		176,000		146,000
Foreign		69,000		69,000
Total current		281,000		1,035,000
Deferred:
Federal		779,000		21,000
State		132,000		4,000
Total deferred		911,000		25,000
Total	$	1,192,000	$	1,060,000

The income tax provision was different from the amount computed using the statutory Federal income tax rate for the following reasons:

	Year Ended March 31,
	2014				2013
Income tax provision at U.S. statutory rate	$	904,000	34.0	%	$	928,000	34.0	%
State income taxes, net of Federal benefit		203,000	7.6			99,000	3.6
Permanent differences, other		15,000	0.6			30,000	1.1
Other differences, net		70,000	2.6			3,000	0.1
Income tax provision	$	1,192,000	44.8	%	$	1,060,000	38.8	%

Deferred tax assets and liabilities consisted of the following as of:

	March 31,
	2014			2013
Inventory reserves	$	279,000		$	296,000
Accrued vacation		237,000			227,000
Stock option compensation		150,000			360,000
Warranty reserve		88,000			78,000
Accounts and notes receivable reserve		57,000			25,000
Net operating loss carryforwards		91,000			-
Federal credits		69,000			-
Other		17,000			16,000
Gross deferred tax assets		988,000			1,002,000
Prepaid expenses		(616,000	)		(232,000	)
Property and equipment		(1,004,000	)		(429,000	)
Gross deferred tax liabilities		(1,620,000	)		(661,000	)
Net deferred tax (liability) asset	$	(632,000	)	$	341,000

The deferred tax items are reported on a net current and non-current basis in the accompanying fiscal 2014 and 2013 consolidated balance sheets according to the classification of the related asset and liability.

The Company accounts for uncertain tax positions in accordance with accounting principles generally accepted in the United States of America. The Company has analyzed filing positions in all of the federal, state and international jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The periods subject to examination for the Company’s federal and state returns are the fiscal 2012 through 2013 tax years. During fiscal 2014, the Company settled an open federal tax audit for the year ended March 31, 2011 and paid additional federal tax of $62,485, which has increased the income tax provision for the year ended March 31, 2014. As of March 31, 2014 and 2013, the Company did not have any unrecognized tax benefits.

It is the Company’s policy to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of March 31, 2014 and 2013, the Company did not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the years ended March 31, 2014 and 2013.