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Note 7 - Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Tax Disclosure [Text Block] | 7. INCOME TAXES The income tax provision from continuing operations consists of the following:
Year ended December 31, |  |  |  |  |  |
(in thousands) |  | 2012 |  |  | 2011 |
Current |  | $ | 57 |  |  | $ | 67 |
Provision for uncertain tax positions |  |  | 23 |  |  |  | 26 |
Total |  | $ | 80 |  |  | $ | 93 |
Following is a reconciliation of estimated income taxes at the statutory rate from continuing operations to estimated tax expense (benefit) as reported:
Year ended December 31, |  | 2012 |  |  | 2011 |  |
Statutory rate |  |  | 35 |  | % |  | 35 |  | %
Change in valuation allowance |  |  | (35 | ) | % |  | (35 | ) | %
Other – state |  |  | (58 | ) | % |  | 12 |  | %
Effective rate |  |  | (58 | ) | % |  | 12 |  | %
Net deferred tax assets consist of the following at December 31:
(in thousands) |  | 2012 |  |  | 2011 |
Deferred tax assets: |  |  |  |  |  |
Federal, state and foreign loss carryforwards |  | $ | 6,852 |  |  | $ | 6,893 |
Capitalized research and development |  |  | 753 |  |  |  | 1,312 |
Deferred revenue |  |  | (76 | ) |  |  | (153 | )
Federal and state tax credits |  |  | 1,773 |  |  |  | 2,135 |
Other |  |  | 346 |  |  |  | 219 |
Total deferred tax asset |  |  | 9,648 |  |  |  | 10,405 |
Less valuation allowance |  |  | (9,648 | ) |  |  | (10,405 | )
Net deferred tax asset |  | $ | -- |  |  | $ | -- |
Federal and state tax credits of $1.8 million included in the above table expire at various dates between 2018 and 2027. We had a deferred tax asset of approximately $9.6 million and $10.4 million at December 31, 2012 and December 31, 2011, respectively. The deferred tax asset has been offset by a valuation allowance in 2012 and 2011 of $9.6 million and $10.4 million, respectively, because the company believes that it is more likely than not that the amount will not be realized. No deferred taxes have been provided on temporary differences related to investments in foreign subsidiaries because these investments are considered to be permanent. As of December 31, the following net operating loss carryforwards, if unused as offsets to future taxable income, will expire during the following years:
(in thousands) |  | 2012 |  |  | 2011 |
2012 |  | $ | -- |  |  | $ | 1,038 |
2019 |  |  | 2,901 |  |  |  | 2,901 |
2021 |  |  | 1,184 |  |  |  | 1,184 |
2022 |  |  | 1,083 |  |  |  | 1,083 |
2023 |  |  | 1,778 |  |  |  | 1,778 |
Thereafter |  |  | 12,631 |  |  |  | 11,635 |
Total |  | $ | 19,577 |  |  | $ | 19,619 |
Of the net operating losses detailed above, $11.3 million are related to net operating losses that VISaer and CoreCard incurred prior to their acquisition by the company. These net operating losses are subject to Separate Return Limitation Year rules and may be restricted under IRC Section 382 to be utilized by the company. These net operating loss carryforwards will begin to expire in years 2019 through 2028. We have recognized tax benefits from all tax positions we have taken, and there has been no adjustment to any carry forwards (net operating loss or research and development credits) in the past two years. As of December 31, 2012 and 2011, the company has recorded a liability of $148,000 and $116,000, respectively, in connection with unrecognized tax benefits related to uncertain tax positions. The liability includes $28,000 and $20,000 of interest and penalties as of December 31, 2012 and 2011, respectively. As of December 31, 2012, management expects some incremental, but not significant, changes in the balance of unrecognized tax benefits over the next twelve months. Our policy is to recognize accrued interest related to uncertain tax positions in interest expense and related penalties, if applicable, in general and administrative expense. During the year ended December 31, 2012 and 2011, we recognized $7,000 and $5,000 in interest expense, respectively, and $2,000 and $0 in penalties, respectively, related to the uncertain tax positions. We file a consolidated U.S. federal income tax return for all subsidiaries in which our ownership equals or exceeds 80%, as well as individual subsidiary returns in various states and foreign jurisdictions. With few exceptions we are no longer subject to U.S. federal, state and local or foreign income tax examinations by taxing authorities for years before 2009.

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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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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=6881521&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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 7: 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 8: 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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