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8. INCOME TAXES | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
INCOME TAXES | Income tax expense (benefit) consists of:
|  | Current |  |  | Deferred |  |  | Total |
Year Ended December 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | –– |  |  | $ | –– |  |  | $ | –– |
State and local |  |  | –– |  |  |  | –– |  |  |  | –– |
Foreign |  |  | 7,080 |  |  |  | –– |  |  |  | 7,080 |
|  | $ | 7,080 |  |  | $ | –– |  |  | $ | 7,080 |
Year Ended December 31, 2015: |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | –– |  |  | $ | –– |  |  | $ | –– |
State and local |  |  | –– |  |  |  | –– |  |  |  | –– |
Foreign |  |  | 7,363 |  |  |  | –– |  |  |  | 7,363 |
|  | $ | 7,363 |  |  | $ | –– |  |  | $ | 7,363 |
A reconciliation of the expected income tax expense or benefit to actual follows:
|  | 2015 |  |  | 2014 |
Computed "expected" US tax (benefit) at Federal statutory rate |  | $ | (283,266 | ) |  | $ | 41,645 |
Change resulting from: |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax benefit |  |  | (55,828 | ) |  |  | –– |
Valuation allowance |  |  | 414,612 |  |  |  | (281,039 | )
Non––deductible items |  |  | (68,155 | ) |  |  | 12,063 |
Expired State Net Operating Losses |  |  | –– |  |  |  | 234,411 |
Income tax expense (benefit) |  | $ | 7,363 |  |  | $ | 7,080 |
Temporary differences at December 31 follow:
|  | 2015 |  |  | 2014 |
Deferred income tax assets: |  |  |  |  |  |
Inventories |  | $ | 90,879 |  |  | $ | 132,511 |
Accounts receivable |  |  | 181,223 |  |  |  | 143,780 |
Accrued expenses |  |  | 43,668 |  |  |  | 36,621 |
Net operating loss and tax credit carry forwards |  |  | 18,272,306 |  |  |  | 17,863,473 |
Plant and equipment |  |  | 590 |  |  |  | 4,629 |
Stock compensation |  |  | 97,464 |  |  |  | 90,504 |
Other – investment impairments |  |  | 127,855 |  |  |  | 127,855 |
Total deferred income tax assets |  |  | 18,813,985 |  |  |  | 18,399,373 |
Valuation allowance |  |  | (18,813,985 | ) |  |  | (18,399,373 | )
Net deferred tax assets |  | $ | –– |  |  | $ | –– |
As of December 31, 2015 the Company had federal net operating loss carry forwards of approximately $50,691,000 which are available to offset future taxable income. They are due to expire in varying amounts from 2018 to 2035. As of December 31, 2015, the Company had Massachusetts state net operating loss carry forwards of approximately $5,097,000 which are available to offset future taxable income. They are due to expire in varying amounts from 2031 through 2035. A valuation allowance has been established for the full amount of deferred income tax assets as management has concluded that it is more-likely than-not that the benefits from such assets will not be realized The Company reviews annually the guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a "more-likely-than-not" recognition threshold. At December 31, 2015 and 2014, the Company did not have any uncertain tax positions. No interest and penalties related to uncertain tax positions were accrued at December 31, 2015 and 2014. The Company files income tax returns in the US and also filed returns in the UK through 2014. The Company no longer files returns in the UK. For returns filed in the US for all years prior to 2011 to the extent the net operating losses were generated, if and when the net operating losses are used, the Internal Revenue Service has the opportunity to then review the underlying returns which created the net operating loss.

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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 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 2: 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 Reference 3: 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 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 + Details
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