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Income Taxes | 3 Months Ended
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Mar. 31, 2014
Income Taxes [Abstract] |
Income Taxes | NOTE 9 — INCOME TAXES The Company accounts for income taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes; which requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carry forwards. The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which cannot be determined. As of March 31, 2014 the Company had net operating loss carry-forwards of approximately $10,200,000 for Danish tax purposes which do not expire and Company had net operating loss carry-forwards of approximately $120,000 for U.S. Federal Tax purposes which expire through 2033, a portion of which shall be limited due to the change in control of the Parent. The Company files U.S. and Danish income tax returns, and they are generally no longer subject to tax examinations for years prior to 2010 and 2007, respectively. The temporary differences, tax credits and carry forwards gave rise to the following deferred tax asset (liabilities) at March 31, 2014 and December 31, 2013:
|  | March 31, 2014 |  |  | December 31, 2013 |
Excess of Tax over book depreciation Fixed assets |  | $ | 87,578 |  |  | $ | 87,578 |
Excess of Tax over book depreciation Patents |  |  | 114,028 |  |  |  | 114,028 |
Net Operating Loss Carry forward |  |  | 2,254,812 |  |  |  | 1,642,598 |
Valuation Allowance |  |  | (2,456,418 | ) |  |  | (1,844,204 | )
Total Deferred Tax Asset (Liabilities) |  | $ | - |  |  | $ | - |
In accordance with prevailing accounting guidance, the Company is required to recognize and disclose any income tax uncertainties. The guidance provides a two-step approach to recognize and disclose any income tax uncertainties. The guidance provides a two-step approach to recognizing and measuring tax benefits and liabilities when realization of the tax position is uncertain. The first step is to determine whether the tax position meet the more-likely-than-not condition for recognition and the second step is to determine the amount to be recognized based on the cumulative probability that exceeds 50%. The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which can be difficult to determine and can only be estimated. Management estimates that it is more likely than not that the Company will not generate adequate net profits to use the deferred tax assets; and consequently, a valuation allowance was recorded for all deferred tax assets. A reconciliation of income tax expense at the federal statutory rate to income tax expense at the company’s effective rate is as follows at March 31 , 2014 and 2013:
|  | March 31, 2014 |  |  | March 31, 2013 |
Computed Tax at Expected Statutory Rate |  | $ | (144,858 | ) |  | $ | (135,684 | )
Non-US Income Taxed at Different Rates |  |  | 44,858 |  |  |  | 38,059 |
Non-Deductable expenses |  |  | - |  |  |  | 27,850 |
Valuation allowance |  |  | 100,000 |  |  |  | 69,775 |
Income Tax Expense |  | $ | - |  |  | $ | - |
The components of income tax expense (benefit) from continuing operations for the three months ended March 31, 2014 and 2013 consisted of the following
Current Tax Expense |  | 2013 |  |  | 2012 |
Danish Income Tax |  | $ | - |  |  | $ | - |
Total Current Tax Expense |  |  | - |  |  |  | - |
Deferred Income Tax Expense (Benefit) |  |  |  |  |  |  |  |
Excess of Tax over Book Depreciation Fixed Assets |  |  | - |  |  |  | - |
Excess of Tax over Book Depreciation Patents |  |  | - |  |  |  | - |
Net Operating Loss Carry forwards |  |  | (100,000 | ) |  |  | (69,775 | )
Change in the Valuation allowance |  |  | 100,0000 |  |  |  | 69,775 |
Total Deferred Tax Expense |  | $ | - |  |  | $ | - |
Deferred income tax expense / (benefit) results primarily from the reversal of temporary timing differences between tax and financial statement income.

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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 -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
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