INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

INCOME TAXES

Schedule of income tax expense

	2014			2013
Current taxes—Federal	$	(106,000	)	$	72,000
Current taxes—State		39,000			(21,000	)
Current taxes—Foreign		51,000			20,000
Deferred taxes—Federal		137,000			194,000
Deferred taxes—State		(40,000	)		35,000
Income tax expense	$	81,000		$	300,000

Schedule of statutory rate reconciliation

	2014			2013
Statutory federal tax provision	$	327,000		$	370,000
State income taxes		45,000			45,000
Effect of foreign operations		(9,000	)		(3,000	)
Uncertain tax positions		(88,000	)		41,000
Income tax credits		(215,000	)		(167,000	)
Permanent differences		21,000			14,000
Income tax expense	$	81,000		$	300,000

Schedule of income from operations before income taxes

	2014		2013
Domestic	$	816,840	$	1,074,572
Foreign		144,177		12,804
Total	$	961,017	$	1,087,376

Schedule of deferred tax assets (liabilities)

	2014			2013
Allowance for uncollectable accounts	$	50,000		$	51,000
Inventories reserve		267,000			404,000
Accrued vacation		334,000			386,000
Non-compete amortization		222,000			281,000
Stock-based compensation and equity appreciation rights		148,000			100,000
State Tax NOL		95,000			117,000
Other		167,000			144,000
Deferred tax assets		1,283,000			1,483,000
Prepaid expenses		(292,000	)		(246,000	)
Property and equipment		(704,000	)		(836,000	)
Deferred tax liabilities		(996,000	)		(1,082,000	)
Net deferred tax assets	$	287,000		$	401,000

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

Net current deferred tax assets	$	436,000		$	683,000
Net non-current deferred tax liabilities		(149,000	)		(282,000	)
Net deferred tax assets	$	287,000		$	401,000

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

Balance as of December 31, 2012	$	140,000
Tax positions related to 2013:
Additions		53,000
Reductions		—
Balance as of December 31, 2013		193,000
Tax positions related to current year:
Additions		23,000
Reductions		(160,000	)
Balance as of December 31, 2014	$	56,000