INCOME TAXES

12 Months Ended

Dec. 31, 2012

INCOME TAXES [Abstract]

INCOME TAXES

8INCOME TAXES

The provision for income taxes consists of the following:

Years ended December 31,	2012	2011	2010
Current:
Federal	$5,503,000	$3,220,000	$435,000
Prior year over accrual State	--- ---	--- 5,000	(157,000) ---
Deferred:
Federal	11,000	(103,000)	(265,000)
	$5,514,000	$3,122,000	$13,000

The difference between the income tax provision computed at the federal statutory rate and the actual tax provision is accounted for as follows:

December 31,	2012	2011	2010
Taxes computed at the federal
statutory rate State income tax, net	$5,701,000 --	$3,583,000 3,000	$237,000 ---
Prior year true-up	47,000	(61,000)	(157,000)
Permanent differences	(234,000)	(403,000)	(67,000)
Provision for Income Taxes	$5,514,000	$3,122,000	$13,000

The components of deferred income tax assets and liabilities are as follows:

Deferred Tax Assets:	2012	2011
Revenue recognition	$422,000	$231,000
Allowance for doubtful accounts	112,000	26,000
Deferred tax asset-current	534,000	257,000
Deferred rent	175,000	141,000
Stock options	805,000	953,000
Interest rate swap	21,000	11,000
Deferred Tax Assets-non current	1,001,000	1,105,000
Deferred Tax Liabilities:
Prepaid expenses	102,000	125,000
Deferred Tax Liabilities-current	102,000	125,000
Property and equipment	867,000	660,000
Deferred tax liability-noncurrent	867,000	660,000
Net Deferred Tax Assets (Liabilities)	$566,000	$577,000

The Company recognized, for income tax purposes, a tax benefit of $313,000, $438,000 and $304,000 for the years ended December 31, 2012, 2011 and 2010, respectively, for compensation expense related to its stock option plan for which no corresponding charge to operations has been recorded. Such amounts have been added to additional paid-in capital in those years.