Note 11 - Income Taxes

12 Months Ended

Dec. 31, 2019

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,
	2019		2018
Current	$	596,000	$	630,000
Deferred		84,000		159,000
Provision for income taxes	$	680,000	$	789,000

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

	December 31,
	2019			2018
Temporary differences:
Property and equipment	$	(646,000	)	$	(448,000	)
Intangible assets		(8,000	)		(6,000	)
Marketable securities		-			122,000
Inventory reserve		16,000			45,000
Accrued expenses and inventory		443,000			336,000
Basis difference in investments		19,000			(80,000	)
Foreign exchange		(13,000	)		(14,000	)
AMT/Foreign tax credits		50,000			25,000
Other		(30,000	)		(65,000	)
State income taxes		(55,000	)		(56,000	)
Net deferred income tax assets (liabilities)	$	(224,000	)	$	(141,000	)

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,
	2019			2018
Income taxes based on U.S. statutory rate of 21% and 34%, respectively	$	773,000		$	928,000
Non-deductible meals and entertainment		8,000			5,000
FDII deduction		(6,000	)		(56,000	)
Foreign taxes		(75,000	)		(123,000	)
State taxes		85,000			89,000
Other		(105,000	)		(54,000	)
Provision for income taxes	$	680,000		$	789,000