XML 55 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Taxes [Abstract] |
INCOME TAXES | NOTE M — INCOME TAXES The Company’s expected federal income tax benefit computed at the statutory rate (34%) on the pre-tax loss amounted to $296,000 in 2012 and $504,000 in 2011. Such benefit was not recognized in the accompanying financial statements due to Milestone’s history of past operating losses, which required full valuation allowances for all of Milestone’s deferred tax assets at December 31, 2012 and 2011. Deferred tax attributes resulting from differences between financial accounting amounts and tax bases of assets and liabilities at December 31, 2012 and 2011 are as follows:
|  | 2012 |  |  | 2011 |
Current Assets |  |  |  |  |  |  |  |
Allowance for doubtful accounts-short term |  | $ | 72,000 |  |  | $ | 73,000 |
Inventory allowance |  |  | 79,000 |  |  |  | 79,000 |
Warranty reserve |  |  | 10,000 |  |  |  | 10,000 |
Impairment of German Investment |  |  | 31,000 |  |  |  | — |
Deferred officers compensation |  |  | 600,000 |  |  |  | 527,000 |
Subtotal |  |  | 792,000 |  |  |  | 689,000 |
Valuation allowance |  |  | (792,000 | ) |  |  | (689,000 | )
Current deferred tax asset |  | $ | — |  |  | $ | — |
Non-current assets |  |  |  |  |  |  |  |
Allowance for doubtful accounts-long term |  | $ | 67,000 |  |  | $ | 149,000 |
Net operating loss carryforward |  |  | 16,675,000 |  |  |  | 16,715,000 |
Subtotal |  |  | 16,742,000 |  |  |  | 16,864,000 |
Valuation allowance |  |  | (16,742,000 | ) |  |  | (16,864,000 | )
Non-current deferred tax asset |  | $ | — |  |  | $ | — |
As of December 31, 2012 and 2011, Milestone has federal net operating loss carryforwards of approximately $48,537,000 and $48,805,000, respectively that will be available to offset future taxable income, if any, through December 2031. Milestone has state net operating losses of $2,875,000 and $2,028,000 in 2012 and 2011, respectively, expiring through December 2015.The utilization of Milestone’s net operating losses may be subject to a substantial limitation due to the “change of ownership provisions” under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating loss carry forwards before their utilization. Milestone has established a 100% valuation allowance for all of its deferred tax assets due to uncertainty as to their future realization. A reconciliation of the statutory tax rates for the years ended December 31, is as follows:
|  | 2012 |  |  | 2011 |
Statutory rate |  |  | (34 | )% |  |  | (34 | )%
State income tax—all states |  |  | (6 | )% |  |  | (6 | )%
|  |  | (40 | )% |  |  | (40 | )%
Current year valuation allowance |  |  | 40 | % |  |  | 40 | %
Benefit for income taxes |  |  | 0 | % |  |  | 0 | %
Accounting for Uncertain Tax Positions: The Company follows the Income Taxes Topic of the FASB Accounting Standards Codification, which provides clarification on accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on derecognition, classification, interest and penalties, disclosure and transition. At December 31, 2012, no significant income tax uncertainties have been included in the Company’s Balance Sheets. The Company’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Statements of Operations. No interest and penalties are present for periods open. Tax returns for the 2009, 2010, and 2011 years are subject to audit by federal and state jurisdictions.

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

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