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Note 8 - Income Taxes | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 8 . INCOME TAXES The provision for income taxes consists of the following:
|  | 201 7 |  |  | 201 6 |  |  | 201 5 |
Current provision: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 3,090,997 |  |  | $ | 3,108,894 |  |  | $ | 3,045,292 |
State |  |  | 309,249 |  |  |  | 486,565 |  |  |  | 482,186 |
|  |  | 3,400,246 |  |  |  | 3,595,459 |  |  |  | 3,527,478 |
Deferred provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (665,181 | ) |  |  | 183,520 |  |  |  | 212,563 |
State |  |  | (23,692 | ) |  |  | 21,591 |  |  |  | 76,607 |
|  |  | (688,873 | ) |  |  | 205,111 |  |  |  | 289,170 |
|  | $ | 2,711,373 |  |  | $ | 3,800,570 |  |  | $ | 3,816,648 |
On December 22, 2017, Tax Cuts and Jobs Act (the “Tax Act”) was enacted. Except for certain provisions, the Tax Act is effective for tax years beginning on or after January 1, 2018. As a fiscal year U.S. taxpayer, the majority of the provisions will apply in 2018, such as the lowering of the U.S. federal corporate income tax rate to 21%, eliminating the domestic manufacturing deduction, creating new taxes on certain foreign sourced income and introducing new limitations on certain business deductions. Additionally, because the Tax Act was enacted in 2017, we were required to record $340,782 of net income tax expense in the fourth quarter of 2017 as follows:
Transition tax on deemed repatriation of certain foreign earnings* |  | $ | 514,454 |
Foreign Withholding Taxes * |  |  | 290,128 |
Remeasuring deferred tax position at the lowered income tax rate** |  |  | (463,800 | )
|  | $ | 340,782 |
*classified as part of the Federal current provision **classified as part of the Federal deferred benefit The above amounts were recorded based on reasonable estimates and our current interpretation of the Tax Act. We are still accumulating and processing data to finalize the underlying calculations and expect regulators to issue further guidance. As such, our estimates may subsequently change. Income before income taxes is earned in the following tax jurisdictions:
|  | 201 7 |  |  | 201 6 |  |  | 201 5 |
United States |  | $ | 6,372,585 |  |  | $ | 9,070,894 |  |  | $ | 9,272,854 |
United Kingdom |  |  | (171,608 | ) |  |  | (81,987 | ) |  |  | (43,567 | )
Canada |  |  | 1,055,783 |  |  |  | 1,034,027 |  |  |  | 813,824 |
Australia |  |  | (88,096 | ) |  |  | 82,622 |  |  |  | 48,633 |
Spain |  |  | (5,540 | ) |  |  | 97,273 |  |  |  | 127,309 |
|  | $ | 7,163,124 |  |  | $ | 10,202,829 |  |  | $ | 10,219,053 |
The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows:
|  | 201 7 |  |  | 201 6 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Capitalized inventory costs |  | $ | 198,616 |  |  | $ | 265,454 |
Warrants and share-based compensation |  |  | 29,047 |  |  |  | 44,151 |
Accrued expenses, reserves, and other |  |  | 44,075 |  |  |  | 65,631 |
Total deferred income tax assets |  | $ | 271,738 |  |  | $ | 375,236 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Property and equipment depreciation |  | $ | 1,008,485 |  |  | $ | 1,728,265 |
Goodwill and other intangible assets amortization |  |  | 155,175 |  |  |  | 227,767 |
Transition tax on deemed repatriation of foreign earnings |  |  | 473,298 |  |  |  | - |
Total deferred income tax liabilities |  | $ | 1,636,958 |  |  | $ | 1,956,032 |
The effective tax rate differs from the statutory rate as follows:
|  | 201 7 |  |  | 201 6 |  |  | 201 5 |
Statutory rate – Federal US income tax |  |  | 34 | % |  |  | 34 | % |  |  | 34 | %
State and local taxes |  |  | 6 | % |  |  | 6 | % |  |  | 6 | %
Impact of Tax Act |  |  | 4 | % |  |  | - |  |  |  | - |
Non-U.S. income tax at different rates |  |  | (1 | %) |  |  | - |  |  |  | - |
Domestic production activities deduction |  |  | (2 | %) |  |  | (1 | %) |  |  | (1 | %)
Other, net |  |  | (3 | %) |  |  | (2 | %) |  |  | (2 | %)
Effective rate |  |  | 38 | % |  |  | 37 | % |  |  | 37 | %
We file a consolidated U.S. income tax return as well as state tax returns on a consolidated, combined, or stand-alone basis, depending on the jurisdiction. We are no longer subject to U.S. federal income tax examinations by tax authorities for years prior to the tax year ended December 2015. Depending on the jurisdiction, we are no longer subject to state examinations by tax authorities for years prior to the December 2014 and December 2015 tax years.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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