Note 9 - Income Taxes

9 Months Ended

Sep. 30, 2019

NOTE

INCOME TAXES

The provision (benefit) for income taxes includes the following:

	Nine Months Ended September 30,
	2019			2018
Current:
Federal	$	---		$	---
State		7,303			---
Total current provision	$	7,303		$	---
Deferred:
Federal	$	(699,000	)	$	(315,922	)
State		---			----
Total deferred (benefit) provision		(699,000	)		(315,922	)
Income tax expense (benefit) provision	$	(691,697	)	$	(315,922	)

The Company’s foreign subsidiary, Tantaline CVD ApS incurred a loss of approximately

$149,000

for the

nine

months ended

September 30, 2019

which would provide a

$33,000

deferred tax asset, based on the standard corporate tax rate of

22%

in Denmark. For the

nine

months ended

September 30, 2018

the Company had a loss of

$513,000

with a deferred tax asset of

$113,000.

However, sufficient uncertainty exists as to the realizability of these assets such that a full valuation allowance has been necessary.

We continue to evaluate for potential utilization of the Company’s deferred tax asset on a quarterly basis, reviewing our economic models, including projections and timing of orders, the commencement of operations of the new CVD Materials segment and cost containment measures.