NOTE 6. INCOME TAXES

12 Months Ended

Mar. 31, 2023

Notes

NOTE 6. INCOME TAXES

NOTE 6. INCOME TAXES

Income tax provisions for fiscal 2023 and 2022 consisted of the following:

	Year Ended March 31,
	2023		2022
Current taxes
Federal	$	4,039,848	$	2,863,915
State		195,939		140,822
Deferred taxes
Federal		156,053		(11,926	)
State		6,539		(499	)
Income tax provision	$	4,398,379	$	2,992,312

A reconciliation of income tax provisions at the U.S. statutory rate for fiscal 2023 and 2022 is as follows:

	Year Ended March 31,
	2023			2022
Tax expense at U.S. Statutory rate	$	5,689,294		$	3,674,961
State income taxes, net of Federal benefit		180,091			136,144
Research & development and manufacturing tax credits		(255,713	)		(42,688	)
Foreign-derived intangible income deduction		(1,265,055	)		(662,467	)
Other		49,762			(113,638	)
Income tax provision	$	4,398,379		$	2,992,312

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, 2023 and 2022 were as follows:

	March 31,
	2023			2022
Paid time off accrual	$	52,525		$	63,055
Inventory reserve		47,042			47,042
Depreciation and amortization		(167,551	)		88,690
Stock-based compensation deductions		71,734			88,710
Unrealized gain on marketable securities		339,980			89,102
UNICAP 263A inventory		204,424			103,588
Other		23,884			3,282
Deferred tax assets	$	572,038		$	483,469

We had no unrecognized tax benefits as of March 31, 2023, 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, 2023 we had no accrued interest related to uncertain tax positions. Income taxes payable were $161,092 as of March 31, 2023 and $432,506 as of March 31, 2022. The tax years 2019 through 2021 remain open to examination by the major taxing jurisdictions to which we are subject.

Unrealize losses on our available-for-sale securities and their tax effects are as follows:

	Year Ended March 31,
	2023			2022
Unrealized loss from available-for-sale securities	$	(1,146,618	)	$	(1,816,742	)
Tax effects		250,880			397,503
Unrealized loss from available-for-sale securities, net of tax		(895,738	)		(1,419,239	)