the Company files income tax returns in the U.s. federal jurisdiction and various state jurisdictions. the Company has not been  audited by any state for income taxes with the exception of returns filed in Michigan which have been audited through 2004,  income tax returns filed in Massachusetts which have been audited through 2007 and income tax returns filed in Florida which  have been audited through 2009. the Company’s federal tax return for 2008 has been audited. Federal and state tax returns  for the years 2011 through 2013 remain open to examination by the IRs and various state jurisdictions. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (“UtB”) resulting from uncertain tax  positions is as follows (in thousands): the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of December 31, 2014  and 2013, are $425,000 and $275,000, respectively, for each year. the total amount of accrued interest and penalties on uncertain tax positions at December 31, 2014 and 2013 was $195,000 and  $0, respectively. At December 31, 2014, all of the unrecognized tax benefits relate to tax returns of a specific state jurisdiction that are currently  under examination. Accordingly, the Company expects a reduction of this amount during 2015, since the Company expects to  resolve this examination in 2015. Basic income per share is based upon the weighted average common shares outstanding during each year. Diluted income per  share is based upon the weighted average of common shares and dilutive common stock equivalent shares outstanding during  each year. the weighted average number of shares used to compute both basic and diluted income per share consisted of the  following (in thousands): 28 (11) net income Per Share Years ended december 31 2014 2013 2012 Computed “expected” tax rate  34.0%  34.0%  34.0%  Increase (decrease) in income taxes resulting from: state taxes, net of federal tax benefit  1.1  3.6  2.7 Meals and entertainment  0.3  0.1  0.1 R&D credits  (0.7)  (1.0)  (0.1) Domestic production deduction  (1.4)  (2.4)  (2.5)  non-deductible IsO stock option expense  0.4  0.2  0.1 Unrecognized tax benefits  1.3  (0.1)  (0.2)  Other 0.8 - 0.2 effective tax rate  35.8%  34.4%  34.3%  december 31  2014 2013 Gross UtB balance at beginning of fiscal year  $ 275  $ 290  Increases for tax positions of prior years  195  10  Reductions for tax positions of prior years  (45)  (25) Gross utb balance at end of fiscal year  $ 425  $ 275 Years ended december 31 2014 2013 2012 Basic weighted average common shares  outstanding during the year  7,028  6,824 6,679 Weighted average common equivalent shares due to stock options and  restricted stock units  147  281 349 diluted weighted average common shares outstanding during the year  7,175  7,105 7,028