Note 6 - Income Taxes

12 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

6.

INCOME TAXES

     Income tax provisions for fiscal

2019

and

2018

consisted of the following:

	Year Ended March 31
	2019			2018
Current taxes
Federal	$	3,107,376		$	5,899,574
State		125,796			160,670
Deferred taxes
Federal		(30,012	)		31,800
State		(1,257	)		4,108
Income tax provision	$	3,201,903		$	6,096,152

    A reconciliation of income tax provisions at the U.S. statutory rate for fiscal

2019

and

2018

is as follows:
 

	Year Ended March 31
	2019			2018
Tax expense at U.S. statutory rate	$	3,719,066		$	6,282,771
State income taxes, net of Federal benefit		95,430			103,240
Domestic manufacturing deduction		-			(495,361	)
Foreign-derived intangible income deduction		(555,256	)		-
Municipal interest		-			(1,378	)
Tax Reform Act effect on deferred tax assets		-			206,693
Other		(57,337	)		187
Income tax provision	$	3,201,903		$	6,096,152

 
     Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of

March 

31,

2019

and

2018

were as follows:
 

	March 31
	2019		2018
Paid time off accrual	$	55,900	$	59,171
Inventory reserve		41,572		41,572
Depreciation and amortization		112,125		81,385
Stock-based compensation deductions		62,671		55,886
Unrealized loss on marketable securities		23,170		273,360
Other		58,297		61,281
Deferred tax assets	$	353,735	$	572,655

 
     The Act “To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year

2018”

(the “Tax Reform Act”) was enacted

December 

22,

2017.

The Tax Reform Act reduced certain Federal corporate income tax rates effective

January 1, 2018

and changed certain other provisions. The effective tax rate for fiscal

2018

was a blended rate reflecting the estimated benefit of Federal tax rate reductions. These benefits were partially offset by a

one

-time

$206,693

unfavorable impact of a revaluation of our deferred tax assets. The revaluation of our deferred tax assets increased income tax provisions for the year ended

March 

31,

2018,

and decreased deferred tax assets as of

March 

31,

2018.

 
     We had

no

unrecognized tax benefits as of

March 

31,

2019,

and we do

not

expect any significant unrecognized tax benefits within

12

 months of the reporting date. We recognize interest and penalties related to income tax matters in income tax expense. As of

March 

31,

2019

we had

no

accrued interest related to uncertain tax positions. The tax years

2015

through

2017

remain open to examination by the major taxing jurisdictions to which we are subject.