Note 6 - Income Taxes

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

6.

INCOME TAXES

Income tax provisions for fiscal

2021

and

2020

consisted of the following:

	Year Ended March 31
	2021			2020
Current taxes
Federal	$	2,600,670		$	2,710,658
State		75,852			(13,176	)
Deferred taxes
Federal		(123,959	)		74,651
State		(5,195	)		3,128
Income tax provision	$	2,547,368		$	2,775,261

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

2021

and

2020

is as follows:

	Year Ended March 31
	2021			2020
Tax expense at U.S. Statutory rate	$	2,990,768		$	3,633,400
State income taxes, net of Federal benefit		88,909			77,989
Research and development credits		(86,223	)		(126,320	)
Foreign-derived intangible income deduction		(450,912	)		(540,265	)
Other		4,826			(269,543	)
Income tax provision	$	2,547,368		$	2,775,261

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,

2021

and

2020

were as follows:

	March 31
	2021			2020
Paid time off accrual	$	60,869		$	55,240
Inventory reserve		50,324			45,948
Depreciation and amortization		88,690			22,651
Stock-based compensation deductions		75,189			65,218
Unrealized gain on marketable securities		(308,403	)		(144,668	)
Other		106,869			63,730
Deferred tax assets	$	73,538		$	108,119

We had

no

unrecognized tax benefits as of

March 

31,

2021,

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,

2021

we had

no

accrued interest related to uncertain tax positions. The tax years

2016

through

2019

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