Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Schedule of income tax expense (benefit)

	2016			2015
Current taxes - Federal	$	240,000		$	(297,000	)
Current taxes - State	10,000			6,000
Current taxes - Foreign	(13,000		)	29,000
Deferred taxes - Federal	(167,000		)	(107,000		)
Deferred taxes - State	10,000			53,000
Deferred taxes - Foreign	(45,000		)	—
Income tax expense (benefit)	$	35,000		$	(316,000	)

Schedule of statutory rate reconciliation

	2016			2015
Statutory federal tax provision (benefit)	$	27,000		$	(302,000	)
State income taxes	(32,000		)	3,000
Effect of foreign operations	107,000			(5,000		)
Uncertain tax positions	2,000			(3,000		)
Income tax credits	(134,000		)	(125,000		)
Valuation allowance	49,000			86,000
Permanent differences	16,000			30,000
Other	—			—
Income tax expense (benefit)	$	35,000		$	(316,000	)

Schedule of income (loss) from operations before income taxes

	2016			2015
Domestic	$	486,425		$	(968,793	)
Foreign	(407,651		)	81,371
Total	$	78,774		$	(887,422	)

Schedule of deferred tax assets (liabilities)

	2016			2015
Deferred Tax
Allowance for uncollectable accounts	$	317,000		$	115,000
Inventories reserve	242,000			270,000
Accrued vacation	362,000			360,000
Non-compete amortization	56,000			191,000
Stock-based compensation and equity appreciation rights	29,000			111,000
Net operating loss carryforwards	134,000			113,000
Tax credit carryforwards	242,000			231,000
Other	188,000			180,000
	1,570,000			1,571,000
Valuation allowance	(135,000		)	(86,000		)
Deferred tax assets	1,435,000			1,485,000
Prepaid expenses	(323,000		)	(481,000		)
Property and equipment	(569,000		)	(663,000		)
Deferred tax liabilities	(892,000		)	(1,144,000		)
Net deferred tax assets	$	543,000		$	341,000

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

Balance as of December 31, 2014	$	56,000
Tax positions related to 2015:
Additions based on tax positions related to the current year	12,000
Additions based on tax positions related to the 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
Tax positions related to current year:
Additions based on tax positions related to the current year	15,000
Additions based on tax positions related to a prior year	5,000
Reductions based on tax positions related to a prior year	(6,000		)
Statute of limitations	(13,000		)
Balance as of December 31, 2016	$	52,000