XML 65 R19.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Taxes [Abstract] |
Income Taxes | 12. Income Taxes Loss before provision for income taxes was distributed geographically for the years ended December 31, as follows (in thousands):
|  |  | 2014 |  |  | 2013 |  |  | 2012 |
Domestic |  |  | $ | (13,993 | ) |  | $ | (12,877 | ) |  | $ | (10,283 | )
Foreign |  |  |  | (228 | ) |  |  | (94 | ) |  |  | 1,121 |
Total |  |  | $ | (14,221 | ) |  | $ | (12,971 | ) |  | $ | (9,162 | )
The provision for income taxes is as follows for the years ended December 31 (in thousands):
|  | 2014 |  |  | 2013 |  |  | 2012 |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |  |  | $ | -- |
State |  |  | 3 |  |  |  | 2 |  |  |  | 2 |
Foreign |  |  | 10 |  |  |  | 107 |  |  |  | 123 |
Change in deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (4,214 | ) |  |  | (3,794 | ) |  |  | (3,653 | )
Federal valuation allowance |  |  | 4,214 |  |  |  | 3,794 |  |  |  | 3,653 |
State |  |  | (460 | ) |  |  | 129 |  |  |  | 453 |
State valuation allowance |  |  | 460 |  |  |  | (129 | ) |  |  | (453 | )
Foreign |  |  | 64 |  |  |  | 111 |  |  |  | 276 |
Foreign valuation allowance |  |  | (64 | ) |  |  | (111 | ) |  |  | (276 | )
Total current |  | $ | 13 |  |  | $ | 109 |  |  | $ | 125 |
The differences between our effective income tax rate and the U.S. federal statutory federal income tax rate for the years ended December 31, are:
|  | 2014 |  |  | 2013 |  |  | 2012 |
Amounts at statutory tax rates |  |  | 34 | % |  |  | 34 | % |  |  | 34 | %
Foreign losses taxed at different rates |  |  | (1 | )% |  |  | -- |  |  |  | 1 | %
Stock-based compensation |  |  | (2 | )% |  |  | (3 | )% |  |  | (7 | )%
Other |  |  | (1 | )% |  |  | (1 | )% |  |  | -- |
Total |  |  | 30 | % |  |  | 30 | % |  |  | 28 | %
Valuation allowance |  |  | (31 | )% |  |  | (31 | )% |  |  | (29 | )%
Effective tax rate |  |  | (1) | % |  |  | (1 | )% |  |  | (1 | )%
Significant components of the deferred tax asset balances at December 31 are as follows (in thousands):
|  | 2014 |  |  | 2013 |
Deferred tax assets: |  |  |  |  |  |
Accruals |  | $ | 1,053 |  |  | $ | 1,519 |
Stock compensation |  |  | 1,210 |  |  |  | 1,070 |
Net operating losses |  |  | 14,681 |  |  |  | 9,760 |
Total deferred tax assets |  | $ | 16,944 |  |  | $ | 12,349 |
Basis difference in fixed assets |  |  | 2 |  |  |  | (14 | )
Valuation allowance |  |  | (16,946 | ) |  |  | (12,335 | )
Total net deferred tax assets |  | $ | -- |  |  | $ | -- |
Valuation allowances are recorded to offset certain deferred tax assets due to management’s uncertainty of realizing the benefits of these items. Management applies a full valuation allowance for the accumulated losses of Neonode Inc., and its subsidiaries, since it is not determinable using the “more likely than not” criteria that there will be any future benefit of our deferred tax assets. This is mainly due to our history of operating losses. As of December 31, 2014, we had federal, state and foreign net operating losses of $41.7 million, $16.1 million and $0, respectively. The federal loss carryforward begins to expire in 2028, the California loss carryforward begins to expire in 2020 and the foreign loss carryforward is indefinite. Utilization of the net operating loss and tax credit carryforwards is subject to an annual limitation due to the ownership percentage change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. The annual limitation may result in the expiration of the net operating losses and tax credit carryforwards before utilization. As of December 31, 2014, we had not completed the determination of the amount to be limited under the provision. As of December 31, 2014, we did not recognize $533,000 and $27,000 of federal and state deferred tax assets relating to excess tax benefits for stock-based compensation deductions. Unrecognized deferred tax benefits will be accounted for as a credit to additional paid-in capital when realized through a reduction in income taxes payable. We follow the provisions of accounting guidance which includes a two-step approach to recognizing, de-recognizing and measuring uncertain tax positions accounted for in accordance with accounting guidance. There were no unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012. We follow the policy to classify accrued interest and penalties as part of the accrued tax liability in the provision for income taxes. For the years ended December 31, 2014, 2013 and 2012 we did not recognize any interest or penalties related to unrecognized tax benefits. Our continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of December 31, 2014 and 2013, we had no accrued interest and penalties related to uncertain tax matters. As of December 31, 2014, we had no uncertain tax positions that would be reduced as a result of a lapse of the applicable statute of limitations. Payments related to the license agreement with Sony Corporation are net of 10% income tax withholding as required by the Japanese government under the Sweden and Japan international tax treaty. The amounts withheld may be used to offset future payables for income tax in Sweden. In the years ended December 21, 2014, 2013 and 2012, $0, $42,000 and $123,000 was withheld, respectively. We file income tax returns in the U.S. federal jurisdiction, California, Sweden, Japan and South Korea. The 1999 through 2013 tax years are open and may be subject to potential examination in one or more jurisdictions. We are not currently under any federal, state or foreign income tax examinations.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration