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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes |
(7) | Income Taxes
The components of income (loss) before income taxes and dividends on preferred stock for the years ended December 31, 2016 and 2015 were as follows:
| 2016 |  |  | 2015 |
| (in thousands) |
United States | $ | (7,545) |  |  | $ | (2,906) |
Foreign |  | 529 |  |  |  | 741 |
| $ | (7,016) |  |  | $ | (2,165) |
The components of the provision (benefit) for income taxes by taxing authority for the years ended December 31, 2016 and 2015 were as follows:
| 2016 |  |  | 2015 |
| (in thousands) |
Current provision: |  |  |  |  |  |  |
Federal | $ | - |  |  | $ | 443 |
Foreign |  | 119 |  |  |  | 131 |
States |  | - |  |  |  | - |
Total current provision |  | 119 |  |  |  | 574 |
Deferred provision (benefit): |  |  |  |  |  |  |
Federal |  | (24) |  |  |  | (114) |
Foreign |  | - |  |  |  | - |
States |  | (51) |  |  |  | (32) |
Total deferred provision (benefit): |  | (75) |  |  |  | (146) |
| $ | 44 |  |  | $ | 428 |
Significant components of the Company’s deferred federal income taxes were as follows:
| December 31, |  |  | December 31, |
| 2016 |  |  | 2015 |
| Non-Current |
Deferred tax assets: |  |  |  |  |  |  |
Accrued liabilities | $ | 15 |  |  | $ | 22 |
Deferred compensation |  | 1,113 |  |  |  | 936 |
Allowance for doubtful accounts |  | 101 |  |  |  | 73 |
Inventory |  | 83 |  |  |  | 73 |
Net operating loss |  | 6,528 |  |  |  | 4,137 |
Property and equipment |  | 143 |  |  |  | 123 |
Foreign tax credit carry forward |  | 3,297 |  |  |  | 3,226 |
Deferred tax assets |  | 11,280 |  |  |  | 8,590 |
Deferred tax liabilities: |  |  |  |  |  |  |
Valuation allowance |  | (11,280 | ) |  |  | (8,590 | )
Equity in foreign investments |  | (2,824 | ) |  |  | (2,755 | )
Translation gain |  | - |  |  |  | (309 | )
Deferred tax liabilities |  | (14,104 | ) |  |  | (11,654 | )
Net deferred tax assets (liabilities) |  | (2,824 | ) |  |  | (3,064 | )
The Company’s deferred tax assets are primarily related to net operating loss carry forwards. A valuation allowance was established at December 31, 2016 and 2015 due to uncertainty regarding future realization of deferred tax assets. Our total valuation allowance as of December 31, 2016 and 2015 is $11.28 million and $8.59 million, respectively. The Company has federal net operating loss carry forwards of approximately $17.3 million which include $7.4 million acquired from AAT that are subject to the utilization limitation under Section 382 of the Internal Revenue Code. The Company has state net operating losses of $14 million. These tax loss carry forwards are available to offset future taxable income and expire if unused during the federal tax year ending December 31, 2019 through 2032. The Company’s 2008 U.S. federal income tax return was examined by the Internal Revenue Service (“IRS”). In the fourth quarter 2011, the IRS concluded its audit which adjusted the annual net operating loss carry forward limitation under Sec. 382 related to AAT’s pre-acquisition net operating loss carry forwards to $299,000 per year through 2027. The Company has adopted the provisions of ASC Topic 740-10 “Income Taxes” to assess tax benefits claimed on a tax return should be recorded in the financial statements. The Company has assessed all open tax years and has recorded no uncertain tax positions related to the open tax years. The Company is no longer subject to tax examination before 2013. The difference between the effective income tax rate reflected in the provision for income taxes and the amounts, which would be determined by applying the statutory income tax rate of 34%, is summarized as follows:
| 2016 |  |  | 2015 |
| (in thousands) |
(Provision for) benefit from U.S federal statutory rate | $ | 2,385 |  |  | $ | 736 |
Effect of state income taxes |  | 51 |  |  |  | 32 |
Non-deductible business meals and entertainment expenses |  | (11) |  |  |  | (16) |
Foreign income taxes included in equity in earnings |  | 140 |  |  |  | 269 |
Accrual to return adjustments and other |  | 81 |  |  |  | (653) |
Change in valuation allowance |  | (2,690) |  |  |  | (796) |
Total expense | $ | (44) |  |  | $ | (428) |
The Company files income tax returns in the United States Federal jurisdiction and various state jurisdictions.

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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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
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