The provision for (benefit from) income taxes consists of the following:

 

		2016			2015			2014
Current:
Federal		$	-		$	-		$	-
State			11,286			16,596			12,933
Total current			11,286			16,596			12,933
Deferred:
Federal			(100,174)			(552,167)			(1,050,750)
State			(3,495)			(66,542)			(102,199)
Valuation Allowance			393,814			618,709			800,203
Total deferred			290,145			-			(352,746)
		$	301,431		$	16,596		$	(339,813)

A reconciliation of income taxes, with the amounts computed at the statutory federal rate is as follows:

 

		2016			2015			2014
Computed tax at federal statutory rate		$	(681,156)		$	(598,643)		$	(1,069,547)
State income taxes, net of federal tax (benefit) provision			(38,971)			(29,799)			(62,712)
Non deductible expenses			13,915			14,683			18,141
Federal research credit			(15,144)			(6,738)			(15,328)
Book tax depreciation adjustment			517,736			-			-
Stock Options - Expired			122,508			-			-
Other, net			(11,271)			18,384			(10,570)
Valuation Allowance			393,814			618,709			800,203
Total		$	301,431		$	16,596		$	(339,813)

The deferred tax assets and deferred tax liabilities recorded on the balance sheet as of June 30, 2016 and 2015 are as follows:

 

		2016						2015
		Deferred Tax Assets			Deferred Tax Liabilities			Deferred Tax Assets			Deferred Tax Liabilities
Current:
Bad debts		$	40,000		$	—		$	40,000		$	—
Prepaid expenses			—			16,173			—			20,093
Accrued liabilities			391,645			—			352,469			—
Inventory			—			1,134,160			—			1,140,283
			431,645			1,150,333			392,469			1,160,376
Non Current:
Depreciation			—			841,040			—			470,768
Net operating loss and credit carryforwards			4,062,817			—			3,522,219			—
Intangible assets			3,635			—			2,471			—
Accrued pension liability			26,098			—			27,656			—
Stock options			68,688			—			321,845			—
Other			—			75,819			—			94,639
			4,161,238			916,859			3,874,191			565,407
Valuation Allowance			(1,812,726)			—			(1,418,912)			—
Total deferred taxes		$	2,780,157		$	2,067,192		$	2,847,748		$	1,725,783