Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

5. Income Taxes

The income tax provision consists of the following:

	2012		2011			2010
Current –
Federal	$	1,196,926	$	1,450,941	)	$	1,261,670
State		323,302		458,719	)		344,010
		1,520,228		1,909,660	)		1,605,680
Deferred –
Federal		346,974		370,710	)		171,848
State		90,746		36,143	)		46,306
		437,720		406,853	)		218,154
Income Tax Provision	$	1,957,948	$	2,316,513	)	$	1,823,834

A reconciliation of the effective rate with the federal statutory rate is as follows:

	2012			2011			2010
Federal statutory rate		34.0	%		34.0	%		34.0	%
State income taxes, net of federal benefit		5.5	%		5.6	%		5.6	%
Permanent differences		0.1	%		0.1	%		-0.2	%
Stock based compensation		0.0	%		0.2	%		1.7	%
Effective tax rate		39.6	%		39.9	%		41.1	%

The components of the net deferred tax assets included in the accompanying balance sheets are as follows at December 31:

	2012			2011
Deferred tax assets:
Stock-based compensation	$	162,792		$	161,807
Allowance for doubtful accounts		47,959			66,900
Accrued expenses		55,401			110,639
	$	266,152		$	339,346
Deferred tax liabilities:
Prepaid expenses	$	(56,275	)	$	(23,845	)
Excess of tax over book depreciation and amortization		(814,619	)		(482,523	)
		(870,894	)		(506,368	)
Net deferred tax liabiliites	$	(604,742	)	$	(167,022	)

These amounts are shown on the balance sheets as follows:

Deferred tax asset short-term	$	209,877		$	315,501
Deferred tax liability long-term		(814,619	)		(482,523	)
Net deferred tax liabilities	$	(604,742	)	$	(167,022	)

ASC 740 contains a two-step approach to recognizing and measuring uncertain tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on an audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating the Company’s tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes.

The Company adopted these provisions effective January 1, 2007, without material effect in the financial statements. The Company operates within multiple taxing jurisdictions and could be subject to audit in these jurisdictions. These audits may involve complex issues, which may require an extended period of time to resolve. The Company has provided for its estimated taxes payable in the accompanying financial statements. Interest and penalties related to income tax matters are recognized as a general and administrative expense. The Company did not have any unrecognized tax benefits and did not have any interest or penalties accrued as of December 31, 2012 and 2011. The tax years ended December 31, 2009 through December 31, 2012 remain subject to examination by all major taxing authorities.