XML 49 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Taxes [Abstract] |
Income Taxes | F. Income Taxes The Company files consolidated federal income tax returns, which includes all U.S. subsidiaries. The Company has a total federal net operating loss ("NOL") carry-forward of $6,223,000 as of December 31, 2012. This NOL carry-forward expires through 2032 if not utilized prior to that date. The Company has a total state NOL carry-forward of $14,817,000 as of December 31, 2012. These NOL carry-forwards expire through 2032 if not utilized prior to that date. The Company has research and development tax credit carry-forwards of approximately $994,000 at December 31, 2012, that can be used to reduce future income tax liabilities and expire principally between 2020 and 2031. The Company has foreign tax credit carry-forwards of approximately $359,000 at December 31, 2012, that are available to reduce future U.S. income tax liabilities subject to certain limitations. These foreign tax credit carry-forwards expire at various times between 2018 and 2020. Additionally, the Company has federal alternative minimum tax ("AMT") credits of approximately $111,000 at December 31, 2012, that are available to offset future federal alternative minimum tax liabilities, and have no expiration. Deferred income taxes for 2012 and 2011 were provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Tax effects of temporary differences and carry-forwards at December 31, 2012 and 2011, are as follows:
|  | December 31, 2012 |  |  | December 31, 2011 |
|  | Deferred Tax |  |  | Deferred Tax |
|  | Asset |  |  | Liability |  |  | Asset |  |  | Liability |
|  | (in thousands) |
Inventory reserve |  | $ | 1,022 |  |  | $ | — |  |  | $ | 737 |  |  | $ | — |
Fixed assets |  |  | — |  |  |  | 443 |  |  |  | — |  |  |  | 528 |
Other reserves and accruals |  |  | 92 |  |  |  | — |  |  |  | 224 |  |  |  | — |
Stock-based compensation |  |  | 173 |  |  |  | — |  |  |  | 77 |  |  |  | — |
Undistributed foreign earnings |  |  | — |  |  |  | 725 |  |  |  | — |  |  |  | 919 |
Other |  |  | — |  |  |  | 35 |  |  |  | — |  |  |  | 57 |
Tax credit carry-forwards |  |  | 1,464 |  |  |  | — |  |  |  | 1,557 |  |  |  | — |
Federal tax loss carry-forwards |  |  | 2,116 |  |  |  | — |  |  |  | 2,020 |  |  |  | — |
State tax loss carry-forwards |  |  | 513 |  |  |  | — |  |  |  | — |  |  |  | — |
Foreign tax loss carry-forwards |  |  | 52 |  |  |  | — |  |  |  | 497 |  |  |  | — |
Total deferred income taxes |  |  | 5,432 |  |  | $ | 1,203 |  |  |  | 5,112 |  |  | $ | 1,504 |
Valuation allowance |  |  | (307 | ) |  |  |  |  |  |  | (263 | ) |  |  |  |
Net deferred tax assets |  | $ | 5,125 |  |  |  |  |  |  | $ | 4,849 |  |  |  |  |
At December 31, 2012, the net deferred tax assets of $3,922,000 presented in the Company's balance sheet comprises deferred tax assets of $5,125,000, offset by deferred tax liabilities of $1,203,000. At December 31, 2011, the net deferred tax assets of $3,345,000 presented in the Company's balance sheet comprises deferred tax assets of $4,849,000, offset by deferred tax liabilities of $1,504,000. The provision (benefit) for income taxes is summarized as follows:
|  | 2012 |  |  | 2011 |
|  | (in thousands) |
Current: |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State and local |  |  | 2 |  |  |  | — |
Foreign |  |  | 50 |  |  |  | 180 |
Total Current |  |  | 52 |  |  |  | 180 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (527 | ) |  |  | 25 |
State and local |  |  | 3 |  |  |  | (20 | )
Foreign |  |  | (52 | ) |  |  | — |
Total Deferred |  |  | (576 | ) |  |  | 5 |
|  | $ | (524 | ) |  | $ | 185 |
A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate to income before income taxes:
|  | 2012 |  |  | 2011 |
|  | (in thousands) |
Tax provision at expected statutory rate |  | $ | (627 | ) |  | $ | 193 |
State taxes, net of federal benefit |  |  | 6 |  |  |  | (29 | )
Permanent differences |  |  | 21 |  |  |  | 17 |
Credits |  |  | — |  |  |  | (217 | )
Changes in estimated research and development credits |  |  | 93 |  |  |  | — |
Foreign tax expense, and other |  |  | (16 | ) |  |  | 221 |
Change in valuation allowance for utilization of Georgia State net operating loss |  |  | (1 | ) |  |  | — |
Provision (benefit) for income taxes |  | $ | (524 | ) |  | $ | 185 |
(Loss) income before income taxes from domestic operations was ($1,638,000) and ($473,000) in 2012 and 2011, respectively. Income (loss) before income taxes from foreign operations was $(206,000) and $1,075,000 in 2012 and 2011, respectively. At December 31, 2012, U.S. income taxes (benefit) have been provided on approximately ($315,000) of earnings (losses) of the Company's foreign subsidiaries, because these earnings (losses) are not considered to be indefinitely reinvested. As of December 31, 2012, earnings of non-U.S. subsidiaries considered to be indefinitely reinvested totaled $589,000. No provision for U.S. income taxes has been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to U.S. taxes, reduced by any foreign tax credits available. It is not practicable to estimate the amount of additional tax that might be payable on this undistributed foreign income. As of December 31, 2012, the Company has a state NOL carry-forward of $14,817,000. Approximately $7,760,000 of the state NOL carry-forward relates to the State of Georgia and has been fully reserved based on the fact that the Company has no ability to generate taxable income in the State of Georgia that would allow the net operating loss carry-forward to be utilized in a future period. In 2012, the Company was able to utilize approximately $18,000 of the Georgia net operating losses to offset interest income earned in Georgia, realizing a state tax benefit of $1,000. The valuation allowance was $307,000 and $263,000 at December 31, 2012 and 2011, respectively. The Company will recognize any interest and penalties related to unrecognized tax positions in income tax expense. At the date of adoption of ASC 740, the Company did not have a liability for unrecognized tax positions. In addition, the Company did not record any increases or decreases to its liability for unrecognized tax positions during the years ended December 31, 2012 or 2011. Accordingly, the Company has not accrued for any interest and penalties as of December 31, 2012 or 2011. The Company does not anticipate any change in its liability for unrecognized tax positions over the next fiscal year. The Company files income tax returns in the U.S. Federal, various state, Hong Kong and India jurisdictions. The statute of limitations for assessment by the Internal Revenue Service ("IRS") and state tax authorities is open for tax years ended December 31, 2009, 2010 and 2011, although carry-forward attributes that were generated prior to tax year 2009, including net operating loss carry-forwards and tax credits, may still be adjusted upon examination by the IRS or state tax authorities if they either have been or will be used in a future period. The Company is generally subject to examinations by foreign tax authorities from 2006 to the present.

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