INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of income tax expense (benefit)

	2017			2016
Current taxes - Federal	$	(124,000	)	$	240,000
Current taxes - State	10,000			10,000
Current taxes - Foreign	49,000			(13,000		)
Deferred taxes - Federal	176,000			(167,000		)
Deferred taxes - State	239,000			10,000
Deferred taxes - Foreign	25,000			(45,000		)
Income tax expense	$	375,000		$	35,000

Schedule of statutory rate reconciliation

	2017			2016
Statutory federal tax provision (benefit)	$	(704,000	)	$	27,000
State income tax benefit	(117,000		)	(32,000		)
Effect of foreign operations	(88,000		)	107,000
Uncertain tax positions	—			2,000
Income tax credits	(112,000		)	(134,000		)
Valuation allowance	1,011,000			49,000
Permanent differences	8,000			16,000
Loss of Section 199 due to carryback claim	46,000			—
Effects of tax reform	280,000			—
Other	51,000			—
Income tax expense	$	375,000		$	35,000

Schedule of income (loss) from operations before income taxes

	2017			2016
Domestic	$	(2,831,433	)	$	486,425
Foreign	760,658			(407,651		)
Total	$	(2,070,775	)	$	78,774

Schedule of deferred tax assets (liabilities)

	2017			2016
Deferred Tax
Allowance for uncollectable accounts	$	49,000		$	317,000
Inventories reserve	198,000			242,000
Accrued vacation	194,000			362,000
Amortization	191,000			56,000
Stock-based compensation and equity appreciation rights	23,000			29,000
Net operating loss carryforwards	359,000			134,000
Tax credit carryforwards	613,000			242,000
Other	23,720			188,000
	1,650,720			1,570,000
Valuation allowance	(1,146,000		)	(135,000		)
Deferred tax assets	504,720			1,435,000
Prepaid expenses	(165,000		)	(323,000		)
Property and equipment	(319,000		)	(569,000		)
Deferred tax liabilities	(484,000		)	(892,000		)
Net deferred tax assets	$	20,720		$	543,000

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

Balance as of December 31, 2015	$	51,000
Tax positions related to 2016:
Additions based on tax positions related to the current year	15,000
Additions based on tax positions related to the 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
Tax positions related to current year:
Additions based on tax positions related to the current year	22,000
Statute of limitations	(22,000		)
Balance as of December 31, 2017	$	52,000