7. Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Text Block]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax (benefit) provision:

	Fiscal Year Ended
	March 31,			March 31,
	2013			2012
Current:
Federal	$	-		$	-
State and local		3,911			3,500
Total current tax provision		3,911			3,500
Deferred:
Federal		(1,561,076)			(32,698	)
State and local		13,585			384,917
Total deferred tax (benefit) provision		(1,547,491	)		352,219
Total (benefit) provision	$	(1,543,580	)	$	355,719

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of the Company’s deferred taxes at March 31, 2013 and 2012 are as follows:

	March 31,			March 31,
	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	3,086,000		$	1,761,000
Tax credits		279,000			239,000
Allowance for doubtful accounts		7,000			13,000
Reserve for inventory obsolescence		69,000			72,000
Inventory capitalization		183,000			92,000
Deferred payroll and accrued interest		-			16,000
Vacation accrual		95,000			96,000
Warranty reserve		100,000			97,000
Deferred revenues		2,000			9,000
Stock options		32,000			29,000
Non-compete agreement		14,000			17,000
Depreciation		(82,000	)		(154,000	)
Deferred tax asset		3,785,000			2,287,000
Less valuation allowance		1,000			50,000
Deferred tax asset, net	$	3,784,000		$	2,237,000
Deferred tax asset – current	$	1,238,000		$	1,289,000
Deferred tax asset – long-term		2,546,000			948,000
Total	$	3,784,000		$	2,237,000

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the income tax (benefit) provision at the statutory Federal tax rate of 34% to the income tax (benefit) provision recognized in the financial statements is as follows:

	March 31,			March 31,
	2013			2012
Income tax (benefit) provision  – statutory rate	$	(1,467,491	)	$	145,088
Income tax expenses – state and local, net of federal benefit		3,500			256,355
Permanent items		(38,350	)		(82,578	)
Research credits		-			(18,057	)
True-up of prior years deferred taxes		(67,246	)		57,277
Change in state rate		85,945			-
Change in valuation allowance		(49,718	)
Other		(10,220	)		(2,366	)
Income tax (benefit) provision	$	(1,543,580	)	$	355,719