Note 11 - Income Taxes

12 Months Ended

Dec. 31, 2020

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,
	2020			2019
Current	$	5,175,000		$	596,000
Deferred		(13,000	)		84,000
Provision for income taxes	$	5,162,000		$	680,000

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

	December 31,
	2020			2019
Temporary differences:
Property and equipment	$	(706,000	)	$	(646,000	)
Intangible assets		(9,000	)		(8,000	)
Marketable securities		-			-
Inventory reserve		24,000			16,000
Accrued expenses and inventory		612,000			443,000
Basis difference in investments		35,000			19,000
Foreign exchange		(40,000	)		(13,000	)
AMT/Foreign tax credits		-			50,000
Other		(83,000	)		(30,000	)
State income taxes		(44,000	)		(55,000	)
Net deferred income tax assets (liabilities)	$	(211,000	)	$	(224,000	)

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,
	2020			2019
Income taxes based on U.S. statutory rate of 21% and 34%, respectively	$	6,772,000		$	773,000
Non-deductible meals and entertainment		5,000			8,000
FDII deduction		(348,000	)		(6,000	)
Foreign taxes		(38,000	)		(75,000	)
State taxes		603,000			85,000
Other		(1,832,000	)		(105,000	)
Provision for income taxes	$	5,162,000		$	680,000