Annual report pursuant to Section 13 and 15(d)

NOTE 9 - INCOME TAXES (Tables)

v3.8.0.1
NOTE 9 - INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Significant components of the Company’s deferred tax assets and liabilities are summarized as follows

 
 
December 31,
   
December 31,
 
 
 
2017
   
2016
 
Deferred tax assets:
           
   Net operating loss carry forwards
 
$
1,745,000
   
$
2,660,000
 
   Long lived assets
   
285,000
     
355,000
 
   Share based payments
   
13,000
     
8,000
 
  Allowance for doubtful accounts
   
118,000
     
150,000
 
   Other
   
15,000
     
11,000
 
   Deferred tax asset
   
2,176,000
     
3,184,000
 
 
               
Deferred tax liabilities:
               
   Long lived assets
   
(179,000
)
   
(179,000
)
   Deferred tax liabilities
   
(179,000
)
   
(179,000
)
Net deferred tax asset
   
1,997,000
     
3,005,000
 
   Less: Valuation allowance
   
(634,000
)
   
(590,098
)
   Net deferred tax asset
 
$
1,363,000
   
$
2,414,902
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
A reconciliation of the statutory income tax rate to the effective rate is as follows for the period December 31, 2017 and 2016:

 
 
December 31,
   
December 31,
 
 
 
2017
   
2016
 
Federal income tax rate
   
34
%
   
34
%
State income tax, net of federal benefit
   
10
%
   
5
%
Permanent differences
   
4
%
   
6
%
Prior year adjustments
   
-
%
   
(20
%)
 
   
48
%
   
25
%
Change in tax rates
   
103
%
   
-
 
Change in valuation allowance
   
2
%
   
(208
%)
Effective income tax rate
   
153
%
   
(183
%)
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Income tax provision (benefit):

 
 
Year Ended
 
 
 
December 31,
   
December 31,
 
 
 
2017
   
2016
 
Current:
           
               Federal
 
$
183,546
   
$
(108,832
)
               State and local
   
158,583
     
100,000
 
 
               
               Total current tax provision (benefit)
   
342,129
     
(8,832
)
 
               
Deferred:
               
               Federal
   
1,159,502
     
334,786
 
               State and local
   
(107,600
)
   
13,949
 
               Release of valuation allowance
   
-
     
(2,563,637
)
 
               
               Total deferred tax provision (benefit)
   
1,051,902
     
(2,214,902
)
 
               
Total provision (benefit)
 
$
1,394,031
     
(2,223,734
)