INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES

Schedule of income tax expense

	2012			2011
Current taxes—Federal	$	384,000		$	273,000
Current taxes—State		(15,000	)		(13,000	)
Current taxes—Foreign		25,000			23,000
Deferred taxes—Federal		(109,000	)		223,000
Deferred taxes—State		13,000			55,000
Income tax expense	$	298,000		$	561,000

Schedule of statutory rate reconciliation

	2012			2011
Statutory federal tax provision	$	315,000		$	595,000
State income taxes		28,000			52,000
Effect of foreign operations		(11,000	)		(6,000	)
Income tax credits		(14,000	)		(66,000	)
Permanent differences		24,000			1,000
Other		(44,000	)		(15,000	)
Income tax expense	$	298,000		$	561,000

Schedule of income from operations before income taxes

	2012		2011
Domestic	$	770,440	$	1,666,281
Foreign		156,998		84,649
Total	$	927,438	$	1,750,930

Schedule of deferred tax assets (liabilities)

	2012			2011
Allowance for uncollectable accounts	$	57,000		$	45,000
Inventories reserve		537,000			408,000
Accrued vacation		353,000			352,000
Non-compete amortization		335,000			390,000
Stock-based compensation		68,000			69,000
State Tax NOL		139,000			157,000
Other		175,000			236,000
Deferred tax assets		1,664,000			1,657,000
Prepaid expenses		(192,000	)		(200,000	)
Property and equipment		(842,000	)		(923,000	)
Deferred tax liabilities		(1,034,000	)		(1,123,000	)
Net deferred tax assets	$	630,000		$	534,000

Schedule of net deferred taxes that have been classified on the consolidated balance sheets

Net current deferred tax assets	$	857,000		$	805,000
Net non-current deferred tax liabilities		(227,000	)		(271,000	)
Net deferred tax assets	$	630,000		$	534,000

Schedule of changes in total gross unrecognized tax benefit liabilities, excluding accrued interest

Balance as of December 31, 2010	$	114,000
Tax positions related to current year:
Additions		100,000
Reductions		(96,000	)
Balance as of December 31, 2011		118,000
Tax positions related to current year:
Additions		22,000
Reductions		0
Balance as of December 31, 2012	$	140,000