Note 6 - Income Taxes

12 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 6. INCOME TAXES

Income tax provisions for fiscal 2022 and 2021 consisted of the following:

	Year Ended March 31
	2022			2021
Current taxes
Federal	$	2,863,915		$	2,600,670
State		140,822			75,852
Deferred taxes
Federal		(11,927	)		(123,959	)
State		(499	)		(5,195	)
Income tax provision	$	2,992,312		$	2,547,368

A reconciliation of income tax provisions at the U.S. statutory rate for fiscal 2022 and 2021 is as follows:

	Year Ended March 31
	2022			2021
Tax expense at U.S. Statutory rate	$	3,674,961		$	2,990,768
State income taxes, net of Federal benefit		136,144			88,909
Research and development credits		(42,688	)		(86,223	)
Foreign-derived intangible income deduction		(662,467	)		(450,912	)
Other		(113,638	)		4,826
Income tax provision	$	2,992,312		$	2,547,368

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, 2022 and 2021 were as follows:

	March 31
	2022		2021
Paid time off accrual	$	63,055	$	60,869
Inventory reserve		47,042		50,324
Depreciation and amortization		88,690		88,690
Stock-based compensation deductions		88,710		75,189
Unrealized gain on marketable securities		89,102		(308,403	)
Other		106,870		106,869
Deferred tax assets	$	483,469	$	73,538

We had no unrecognized tax benefits as of March 31, 2022, 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, 2022 we had no accrued interest related to uncertain tax positions. The tax years 2018 through 2020 remain open to examination by the major taxing jurisdictions to which we are subject.