Note 11 - Income Taxes

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

11. Income Taxes

The provision (benefit) for income taxes consisted of the following:

	For the Years Ended December 31,
	2018		2017
Current	$	630,000	$	1,415,000
Deferred		159,000		(378,000	)
	$	789,000	$	1,037,000

Deferred income tax assets (liabilities) consisted of the following:

	December 31,
	2018			2017
Temporary differences:
Property and equipment	$	(448,000	)	$	(379,000	)
Intangible assets		(6,000	)		(4,000	)
Marketable securities		122,000			122,000
Inventory reserve		45,000			60,000
Accrued expenses and inventory		336,000			355,000
Basis difference in investments		(80,000	)		(80,000	)
Foreign exchange		(14,000	)		(8,000	)
AMT/Foreign tax credits		25,000			-
Other		(65,000	)		(26,000	)
State income taxes		(56,000	)		(21,000	)
Net deferred income tax assets (liabilities)	$	(141,000	)	$	19,000

The provision for income taxes differs from the amount that would be obtained by applying the U.S. statutory rate to income before income taxes as a result of the following:

	For the Years Ended December 31,
	2018			2017
Income taxes based on U.S. statutory rate of 21% and 34%, respectively	$	928,000		$	1,247,000
Non-deductible meals and entertainment		5,000			6,000
Deemed foreign repatriation		-			468,000
Domestic manufacturer's deduction		-			(97,000	)
FDII deduction		(56,000	)		-
Foreign taxes		(123,000	)		(500,000	)
State taxes		89,000			82,000
Effect of Federal tax rate reduction from 34% to 21%		-			(53,000	)
Other		(54,000	)		(116,000	)
	$	789,000		$	1,037,000