INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES

Schedule of income tax expense

	2015			2014
Current taxes—Federal	$	(297,000	)	$	(106,000	)
Current taxes—State		6,000			39,000
Current taxes—Foreign		29,000			51,000
Deferred taxes—Federal		(107,000	)		137,000
Deferred taxes—State		53,000			(40,000	)
Income tax (benefit) expense	$	(316,000	)	$	81,000

Schedule of statutory rate reconciliation

	2015			2014
Statutory federal tax provision	$	(302,000	)	$	327,000
State income taxes		3,000			45,000
Effect of foreign operations		(5,000	)		(9,000	)
Uncertain tax positions		(3,000	)		(88,000	)
Income tax credits		(125,000	)		(215,000	)
Valuation allowance		86,000			—
Permanent differences		30,000			21,000
Income tax (benefit) expense	$	(316,000	)	$	81,000

Schedule of income from operations before income taxes

	2015			2014
Domestic	$	(968,793	)	$	816,840
Foreign		81,371			144,177
Total	$	(887,422	)	$	961,017

Schedule of deferred tax assets (liabilities)

	2015			2014
Allowance for uncollectable accounts	$	115,000		$	50,000
Inventories reserve		270,000			267,000
Accrued vacation		360,000			334,000
Non-compete amortization		191,000			222,000
Stock-based compensation and equity appreciation rights		111,000			148,000
State Tax NOL		113,000			95,000
Tax credit carryforwards		231,000			73,000
Other		180,000			94,000
		1,571,000			1,283,000
Valuation allowance		(86,000	)		—
Deferred tax assets		1,485,000			1,283,000
Prepaid expenses		(481,000	)		(292,000	)
Property and equipment		(663,000	)		(704,000	)
Deferred tax liabilities		(1,144,000	)		(996,000	)
Net deferred tax assets	$	341,000		$	287,000

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

Balance as of December 31, 2013	$	193,000
Tax positions related to 2014:
Additions		23,000
Reductions		(160,000	)
Balance as of December 31, 2014		56,000
Tax positions related to current year:
Additions based on tax positions related to the current year		12,000
Additions based on tax[ib]-positions related to a prior year		2,000
Reductions based on tax positions related to a prior year		(9,000	)
Statute of limitations		(10,000	)
Balance as of December 31, 2015	$	51,000