Note 6 - Income Taxes

12 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Text Block]

NOTE

INCOME TAXES

Income tax provisions for fiscal

2020

and

2019

consisted of the following:

	Year Ended March 31
	2020			2019
Current taxes
Federal	$	2,710,658		$	3,107,376
State		(13,176	)		125,796
Deferred taxes
Federal		74,651			(30,012	)
State		3,128			(1,257	)
Income tax provision	$	2,775,261		$	3,201,903

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

2020

and

2019

is as follows:

	Year Ended March 31
	2020			2019
Tax expense at U.S. Statutory rate	$	3,633,400		$	3,719,066
State income taxes, net of Federal benefit		77,989			95,430
Research and development credits		(126,320	)		-
Foreign-derived intangible income deduction		(540,265	)		(555,256	)
Other		(269,543	)		(57,337	)
Income tax provision	$	2,775,261		$	3,201,903

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,

2020

and

2019

were as follows:

	March 31
	2020			2019
Paid time off accrual	$	55,240		$	55,900
Inventory reserve		45,948			41,572
Depreciation and amortization		22,651			112,125
Stock-based compensation deductions		65,218			62,671
Unrealized (gain) loss on marketable securities		(144,668	)		23,170
Other		63,730			58,297
Deferred tax assets	$	108,119		$	353,735

We had

unrecognized tax benefits as of

March

31,

2020,

and we do

not

expect any significant unrecognized tax benefits within

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

March

31,

2020

we had

accrued interest related to uncertain tax positions. The tax years

2016

through

2018

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

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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