NOTE 7. INCOME TAXES

12 Months Ended

Mar. 31, 2024

Notes

NOTE 7. INCOME TAXES

NOTE 7. INCOME TAXES

Income tax provisions for fiscal 2024 and 2023 consisted of the following:

	Year Ended March 31,
	2024				2023
Current taxes
Federal	$	4,145,804		$	4,039,848
State		200,926			195,939
Deferred taxes
Federal		(963,470	)		156,053
State		(40,374	)		6,539
Income tax provision	$	3,342,886		$	4,398,379

A reconciliation of income tax provisions at the U.S. statutory rate for fiscal 2024 and 2023 is as follows:

	Year Ended March 31,
	2024			2023
Tax expense at U.S. Statutory rate	$	4,298,193		$	5,689,294
State income taxes, net of Federal benefit		180,115			180,091
Research & development and manufacturing tax credits		(68,894	)		(255,713	)
Tax effect of Foreign-derived intangible income deduction		(1,125,817	)		(1,265,055	)
Other		59,289			49,762	)
Income tax provision	$	3,342,886		$	4,398,379

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, 2024 and 2023 were as follows:

	March 31,
	2024			2023
Paid time off accrual	$	64,190		$	52,525
Inventory reserve		47,042			47,042
Depreciation and amortization		(127,839	)		(167,551	)
Stock-based compensation deductions		101,668			71,734
Unrealized loss on marketable securities		217,802			339,980
Section 174 R&D expense		930,946			-
UNICAP 263A inventory		202,339			204,424
Other		17,556			23,884
Deferred tax assets	$	1,453,704		$	572,038

We had no unrecognized tax benefits as of March 31, 2024, 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, 2024 we had no accrued interest related to uncertain tax positions. Federal and State estimated taxes overpayment were $31,250 as of March 31, 2024 and estimated taxes payable were $161,092 as of March 31, 2023. The tax years 2020 through 2023 remain open to examination by the major taxing jurisdictions to which we are subject.