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NOTE 7 - INCOME TAXES | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | NOTE 7 - INCOME TAXES Significant components of the Company's deferred tax assets and liabilities are summarized as follows:
|  | December 31, |  |  | December 31, |
|  | 2014 |  |  | 2013 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carry forwards |  | $ | 2,810,000 |  |  | $ | 2,928,000 |
Long lived assets |  |  | 262,000 |  |  |  | 270,000 |
Share based payments |  |  | - |  |  |  | 71,000 |
Other |  |  | 58,000 |  |  |  | 35,000 |
Deferred tax asset |  |  | 3,130,000 |  |  |  | 3,304,000 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Long lived assets |  |  | (89,000 | ) |  |  | (44,000 | )
Deferred tax liabilities |  |  | (89,000 | ) |  |  | (44,000 | )
Net deferred tax asset |  |  | 3,041,000 |  |  |  | 3,260,000 |
Less: Valuation allowance |  |  | (3,003,000 | ) |  |  | (3,140,000 | )
Net deferred tax asset |  | $ | 38,000 |  |  | $ | 120,000 |
The recognized deferred tax asset is based upon the expected utilization of its benefit from future taxable income. The Company has federal net operating loss (“NOL”) carryforwards of approximately $7,470,000 as of December 31, 2014, which is subject to limitations under Section 382 of the Internal Revenue Code. These carryforward losses are available to offset future taxable income, and begin to expire in the year 2025 to 2030. A valuation allowance has been recorded, for those deferred tax assets that management does not believe that the realization is more likely than not. The foregoing amounts are management’s estimates and the actual results could differ from those estimates. Future profitability in this competitive industry depends on continually obtaining and fulfilling new profitable sales agreements and modifying products. The inability to obtain new profitable contracts could reduce estimates of future profitability, which could affect the Company’s ability to realize the deferred tax assets. A reconciliation of the statutory income tax rate to the effective rate is as follows for the period December 31, 2014 and 2013:
|  | December 31, |  |  | December 31, |
|  | 2014 |  |  | 2013 |
Federal income tax rate |  |  | 34 | % |  |  | 34 | %
State income tax, net of federal benefit |  |  | 5 | % |  |  | 6 | %
Permanent differences |  |  | 13 | % |  |  | 6 | %
Prior year adjustments |  |  | 5 | % |  |  | (35 | %)
Change in valuation allowance |  |  | (4 | %) |  |  | (70 | %)
Effective income tax rate |  |  | 53 | % |  |  | (59 | %)
Income tax provision (benefit):
|  | Year Ended |
|  | December 31, |  |  | December 31, |
|  | 2014 |  |  | 2013 |
Current: |  |  |  |  |  |
Federal |  | $ | 76,000 |  |  | $ | - |
State and local |  |  | 26,000 |  |  |  | - |
Total current tax provision |  |  | 102,000 |  |  |  | - |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | 116,000 |  |  |  | - |
State and local |  |  | - |  |  |  | - |
Release of valuation allowance |  |  | - |  |  |  | (120,000 | )
Total deferred tax provision (benefit) |  |  | 116,000 |  |  |  | (120,000 | )
Total provision (benefit) |  | $ | 218,000 |  |  |  | (120,000 | )

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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 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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