Income Taxes

6 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 9 – Income Taxes

Income tax expense consists of the following for the six month periods ended December 31:

	2011			2010
Current:
Federal	$	1,047,000		$	1,480,000
State		119,000			11,000
Deferred:
Federal		(32,000	)		(41,000	)
State		51,000			-
Income tax expense	$	1,185,000		$	1,450,000

A reconciliation of the federal statutory rate to the effective tax rate reflected in the total provision for income taxes for the six month periods ended December 31 is as follows:

	2011			2010
Federal statutory rate		34	%		34	%
Exempt income from domestic manufacturer’s deduction		(3	)		(3	)
Research and development tax credit		(4	)		—
State income taxes		2			—
Non-deductible expenses		2			1
Effective tax rate		31	%		32	%

ASC 740, “Income Taxes,” requires the Company to review all open tax years in all tax jurisdictions to determine if there are any uncertain income tax positions that require recognition in the Company’s financial statements, including any penalties and interest, based on the “more-likely-than-not” criterion.  Based on its review, the Company has concluded that there were no significant income tax positions that would require the recording of additional income taxes or the recognition of any tax benefit in the Company’s financial statements at December 31, 2011.  There were no unallocated tax reserves at December 31, 2011.  The Company’s policy is to record any interest and penalties as a component of income tax expense.  The Company’s federal income tax returns for fiscal years prior to fiscal year 2008 are no longer subject to examination by the Internal Revenue Service.