INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

INCOME TAXES

Schedule of income tax expense

	2013			2012
Current taxes—Federal	$	72,000		$	384,000
Current taxes—State		(21,000	)		(15,000	)
Current taxes—Foreign		20,000			25,000
Deferred taxes—Federal		194,000			(109,000	)
Deferred taxes—State		35,000			13,000
Income tax expense	$	300,000		$	298,000

Schedule of statutory rate reconciliation

	2013			2012
Statutory federal tax provision	$	370,000		$	315,000
State income taxes		45,000			28,000
Effect of foreign operations		(3,000	)		(11,000	)
Income tax credits		(167,000	)		(14,000	)
Permanent differences		55,000			24,000
Other		—			(44,000	)
Income tax expense	$	300,000		$	298,000

Schedule of income from operations before income taxes

	2013		2012
Domestic	$	1,074,572	$	770,440
Foreign		12,804		156,998
Total	$	1,087,376	$	927,438

Schedule of deferred tax assets (liabilities)

	2013			2012
Allowance for uncollectable accounts	$	51,000		$	57,000
Inventories reserve		404,000			537,000
Accrued vacation		386,000			353,000
Non-compete amortization		281,000			335,000
Stock-based compensation and equity appreciation rights		100,000			68,000
State Tax NOL carry forwards		117,000			139,000
Other		144,000			175,000
Deferred tax assets		1,483,000			1,664,000
Prepaid expenses		(246,000	)		(192,000	)
Property and equipment		(836,000	)		(842,000	)
Deferred tax liabilities		(1,082,000	)		(1,034,000	)
Net deferred tax assets	$	401,000		$	630,000

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

Net current deferred tax assets	$	683,000		$	857,000
Net non-current deferred tax liabilities		(282,000	)		(227,000	)
Net deferred tax assets	$	401,000		$	630,000

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

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
Tax positions related to current year:
Additions		53,000
Reductions		0
Balance as of December 31, 2013	$	193,000