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Income Taxes
 12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
10. Income Taxes

 

The income tax provisions are comprised of the following:

    Dec. 31 2012     Dec. 31 2011  
Current:                
Federal   $ -     $ -  
State     -       15,851  
Foreign     471,112       149,763  
    $ 471,112     $ 165,614  
                 
Deferred                
Federal   $ (112,978 )   $ 228,524  
State     -       -  
Foreign     (311,862 )     (74,694 )
      (424,840 )     153,830  
Total Income Tax Provision   $ 46,272     $ 319,444  

 

The components of the net deferred tax asset at December 31 are as follows:

    2012     2011  
Deferred tax assets:            
Allowance for doubtful accounts   $ 20,534     $ 11,682  
Inventory allowances     255,285       181,170  
Accrued liabilities     73,929       70,765  
Unicap 263A adjustment     151,625       151,625  
Net operating loss carryforwards     602,580       955,717  
Alternative minimum tax credit carryforwards     348,867       351,619  
State investment tax credit carryforward     34,523       30,512  
Foreign tax credit carryforward     615,080       298,635  
Other foreign tax items     600,844       246,473  
Total deferred tax assets     2,703,267       2,298,198  
Deferred tax liabilities:                
Tax over book basis of capital assets     (1,113,335 )     (1,175,615 )
Other foreign tax items     (207,607 )     (165,099 )
Net deferred tax assets   $ 1,382,325     $ 957,484  

 

The Company has a net operating loss carryforwards of approximately $1,502,000 expiring in various years through 2025. In addition, the Company has approximately $349,000 of alternative minimum tax credits as of December 31, 2012, which have no expiration date.

Income tax provisions differed from the taxes calculated at the statutory federal tax rate as follows:

    Years Ended December 31,  
    2012     2011  
Taxes at statutory rate   $ 32,411     $ 245,966  
State income taxes     5,718       43,395  
Nondeductible expenses     57,937       57,772  
Foreign taxes and other     (49,794 )     (27,689 )
Income tax provision   $ 46,272     $ 319,444  

 

The Company files tax returns in the U.S., and in the U.K, Germany and Mexico foreign tax jurisdictions and also in various state jurisdictions in the U.S. The tax years 2009 through 2012 remain open to examination. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. During the twelve months ended December 31, 2012 and 2011, the Company did not recognize expense for interest or penalties, and do not have any amounts accrued at December 31, 2012 and 2011, as the Company does not believe it has taken any uncertain tax positions.