XML 31 R17.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Note 10 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
10 . | Income Taxes
The income tax provisions are comprised of the following:
|  | Dec. 31 2017 |  |  | Dec. 31 2016 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | (188,549 | ) |  | $ | 448,462 |
State |  |  | (11,964 | ) |  |  | - |
Foreign |  |  | 317,823 |  |  |  | 203,824 |
|  | $ | 117,310 |  |  | $ | 652,286 |
Deferred |  |  |  |  |  |  |  |
Federal |  | $ | 732,895 |  |  | $ | 70,223 |
State |  |  | (79,598 | ) |  |  | 71,716 |
Foreign |  |  | (59,074 | ) |  |  | (91,348 | )
|  |  | 594,223 |  |  |  | 50,591 |
Total Income Tax Provision |  | $ | 711,533 |  |  | $ | 702,877 |
The 2017 tax provision includes the impact of changes in deferred taxes of $0.2 million resulting from the federal rate change from 34% to 21%. The components of the net deferred tax asset at December 31 are as follows:
|  | 2017 |  |  | 2016 |
Deferred tax assets: |  |  |  |  |  |  |  |
Federal and state net operating loss carryforwards |  | $ | 523,808 |  |  | $ | 438,075 |
Foreign tax credit and other credits |  |  | 592,993 |  |  |  | 581,917 |
Reserves and accruals |  |  | 271,884 |  |  |  | 731,655 |
Unicap 263A adjustment |  |  | 126,944 |  |  |  | 170,765 |
Other deferred tax assets |  |  | 26,198 |  |  |  | 17,922 |
Foreign and VIE net operating loss carryforwards |  |  | 569,147 |  |  |  | 541,983 |
Total gross deferred tax assets |  |  | 2,110,974 |  |  |  | 2,482,317 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Fixed assets and intangibles |  |  | (273,746 | ) |  |  | (740,627 | )
Deferred state income tax |  |  | (103,055 | ) |  |  | - |
Total gross deferred tax liabilities |  |  | (376,801 | ) |  |  | (740,627 | )
Less: valuation allowance |  |  | (631,706 | ) |  |  | (45,000 | )
Net deferred tax assets |  |  | 1,102,467 |  |  |  | 1,696,690 |
Deferred Tax Asset Valuation Allowance |  |  | 2017 |  |  |  | 201 6
Beginning Balance |  | $ | 45,000 |  |  | $ | 45,000
Additions charged (credited) to expense |  | $ | 586,706 |  |  | $ | -
Balance at end of year |  | $ | 631,706 |  |  | $ | 45,000
The Company has a net operating loss carryforward for federal income tax purposes of approximately $0.4 million which will begin to expire in 2025, as well as federal tax credits of approximately $0.6 million which will begin to expire during 2018. It also has a net operating loss carryforward for state income tax purposes of approximately $4.5 million, which will begin to expire in 2022. On December 22, 2017, the U.S. government enacted significant tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act created a separate category of creditable foreign source income related to foreign branches. This may operate to prevent cross-crediting of foreign tax credit carryforwards generated by the Company in prior years with those attributable to branch income generated in future years. As a result of this new provision, the U.S. Foreign Tax Credit deferred tax asset has been fully offset by a valuation allowance. The valuation allowance increased by $0.6 million during the year ended December 31, 2017, and was unchanged during the year ended December 31, 2016. Income tax provisions differed from the taxes calculated at the statutory federal tax rate as follows:
|  | Years Ended December 31, |
|  | 2017 |  |  | 201 6 |
Federal Taxes at statutory rate |  | $ | (372,364 | ) |  | $ | 450,464 |
State income taxes , net of Federal tax effect |  |  | (60,695 | ) |  |  | 67,768 |
Nondeductible expenses |  |  | 35,083 |  |  |  | 51,741 |
Foreign taxes |  |  | 522,803 |  |  |  | 132,905 |
Change in valuation allowance |  |  | 586,706 |  |  |  | - |
Income tax provision |  | $ | 711,533 |  |  | $ | 702,877 |
The Compan y 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 2014 through 2016 remain open to examination. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. During the year ended December 31, 2017 and 2016, the Company did not recognize expense for interest or penalties, and do not have any amounts accrued at December 31, 2017 and 2016, as the Company does not believe it has any uncertain tax positions. Tax Reform act of 2017 On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (SAB 118 ) which addresses income tax accounting implications of the Tax Act. The purpose of SAB 118 was to address any uncertainty or diversity of view in applying ASC Topic 740, Income Taxes in the reporting period in which the Tax Act was enacted. SAB 118 addresses situations where the accounting is incomplete for certain income tax effects of the Tax Act upon issuance of a company ’s financial statements for the reporting period which includes the enactment date. SAB 118 allows for a provisional amount to be recorded if it is a reasonable estimate of the impact of the Tax Act. Additionally, SAB 118 allows for a measurement period to finalize the impacts of the Tax Act, not to extend beyond one year form the date of enactment. Estimates were used in determining the balances of deferred tax assets and liabilities subject to changes in tax laws included in the Tax Act.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

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 Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration