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Income Taxes | 12 Months Ended
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Dec. 31, 2017
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, 2017 and 2016 were as follows:
| 2017 |  |  | 2016 |
| (in thousands) |
United States | $ | (5,587) |  |  | $ | (7,545) |
Foreign |  | 404 |  |  |  | 529 |
| $ | (5,183) |  |  | $ | (7,016) |
The components of the provision (benefit) for income taxes by taxing authority for the years ended December 31, 2017 and 2016 were as follows:
| 2017 |  |  | 2016 |
| (in thousands) |
Current provision: |  |  |  |  |  |  |
Federal | $ | - |  |  | $ | - |
Foreign |  | 78 |  |  |  | 119 |
States |  | - |  |  |  | - |
Total current provision |  | 78 |  |  |  | 119 |
Deferred provision (benefit): |  |  |  |  |  |  |
Federal |  | (3,033) |  |  |  | (24) |
Foreign |  | - |  |  |  | - |
States |  | - |  |  |  | (51) |
Total deferred provision (benefit): |  | (3,033) |  |  |  | (75) |
| $ | (2,955) |  |  | $ | 44 |
Significant components of the Company’s deferred federal income taxes were as follows:
| December 31, |  |  | December 31, |
| 2017 |  |  | 2016 |
| Non-Current |
Deferred tax assets: |  |  |  |  |  |  |
Accrued liabilities | $ | 136 |  |  | $ | 15 |
Deferred compensation |  | 520 |  |  |  | 1,113 |
Allowance for doubtful accounts |  | 71 |  |  |  | 101 |
Inventory |  | 73 |  |  |  | 83 |
Net operating loss |  | 2,783 |  |  |  | 6,528 |
Property and equipment |  | 71 |  |  |  | 143 |
Foreign tax credit carry forward |  | - |  |  |  | 3,297 |
Deferred tax assets |  | 3,654 |  |  |  | 11,280 |
Deferred tax liabilities: |  |  |  |  |  |  |
Valuation allowance |  | (3,654 | ) |  |  | (11,280 | )
Equity in foreign investments |  | - |  |  |  | (2,824 | )
Translation gain |  | - |  |  |  | - |
Deferred tax liabilities |  | (3,654 | ) |  |  | (14,104 | )
Net deferred tax assets (liabilities) |  | - |  |  |  | (2,824 | )
The Company’s deferred tax assets are primarily related to net operating loss carry forwards. A valuation allowance was established at December 31, 2017 and 2016 due to uncertainty regarding future realization of deferred tax assets. Our total valuation allowance as of December 31, 2017 and 2016 is $3.65 million and $11.28 million, respectively. 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% for both 2017 and 2016, is summarized as follows:
| 2017 |  |  | 2016 |
| (in thousands) |
(Provision for) benefit from U.S federal statutory rate | $ | 1,762 |  |  | $ | 2,385 |
Effect of state income taxes |  | 32 |  |  |  | 51 |
Non-deductible business meals and entertainment expenses |  | (45) |  |  |  | (11) |
Foreign income taxes included in equity in earnings |  | 496 |  |  |  | 140 |
Accrual to return adjustments and other |  | 235 |  |  |  | 81 |
Change in valuation allowance |  | 4,734 |  |  |  | (2,690) |
Change in enacted tax rate |  | (4,259) |  |  |  | - |
Total (expense) | $ | 2,955 |  |  | $ | (44) |
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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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