XML 40 R22.htm IDEA: XBRL DOCUMENT
v3.7.0.1

INCOME TAX | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Tax Disclosure [Abstract] |
INCOME TAX | NOTE 15 – INCOME TAX
| A. | Measurement of results for tax purposes under the Israeli Income Tax (Inflationary Adjustments) Law, 1985 (the “Inflationary Adjustment Law”)
Commencing January 1, 2008, the results of operations of Integrity Israel for tax purposes are measured on a nominal basis.
| B. | Changes in the Israeli corporate tax rates
On July 30, 2013, the Israeli parliament approved the Law for the Change in National Priorities (Legislative Amendments to Achieve Budgetary Goals for 2013 and 2014) – 2013, which, among other things increased the standard Israeli corporate income tax rate from 25% to 26.5% effective as of January 1, 2014, On January 4, 2016, the Israeli parliament passed the Law for Amendment of the Income Tax Ordinance No. 216, which, among other things reduced the standard Israeli corporate income tax rate from 26.5% to 25% effective as of January 2016, Furthermore, on December 22, 2016 the Knesset plenum passed the Economic Efficiency Law (Legislative Amendments for Achieving Budget Objectives in the Years 2017 and 2018) – 2016, by which, inter alia, the corporate tax rate would be reduced from 25% to 23% in two steps. The first step would be to reduce the corporate tax rate to 24% as of January 2017 and the second step would be to reduce the corporate tax rate to 23% as of January 2018.This change has no impact on the financial statements.
| C. | Tax assessments
For federal, state and local income tax purposes the Company remains open for examination by the tax authorities for the tax years from 2013 through 2015 under the general statute of limitations. Notwithstanding, pursuant and subject to the provisions of article 145 of the Income Tax Ordinance, Integrity Israel’s tax returns that were filled with the tax authority up to and including 2012 are considered final.
| D. | Carryforward tax losses
As of December 31, 2016, the Company had cumulative net operating losses (NOL) for US federal purposes of approximately $4.4 million that will expire between the years 2032-2036. Integrity Israel has losses carry forward balances for Israeli income tax purposes of nearly $25.3 million to offset against future taxable income for an indefinite period of time.
| E. | The following is a reconciliation between the theoretical tax on pre-tax income, at the tax rate applicable to the Company (federal tax rate) and the tax expense reported in the financial statements:
|  | US dollars |
|  | Year ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Pretax income (loss) |  |  | (5,409,737 | ) |  |  | (5,842,172 | ) |  |  | 2,980,426 |
Federal tax rate |  |  | 34 | % |  |  | 34 | % |  |  | 35 | %
Income tax expenses (benefit) computed at the ordinary tax rate |  |  | (1,839,311 | ) |  |  | (1,986, 338 | ) |  |  | 1,043,149 |
Non-deductible expenses |  |  | 34,500 |  |  |  | 31,050 |  |  |  | 27,250 |
Stock-based compensation |  |  | 17,562 |  |  |  | 4,503 |  |  |  | 14,415 |
Warrants with down round protection |  |  | (98,473 | ) |  |  | (50,691 | ) |  |  | (2,295,915 | )
Loss on partial extinguishment of Series A Preferred Stock and Series A Warrants |  |  | - |  |  |  | 436,680 |  |  |  | - |
Tax in respect of differences in corporate tax rates |  |  | 396,956 |  |  |  | 340,263 |  |  |  | 278,466 |
Losses and timing differences in respect of which no deferred taxes assets were recognized |  |  | 1,488,766 |  |  |  | 1,224,533 |  |  |  | 932,635 |
|  |  | - |  |  |  | - |  |  |  | - |
| F. | Deferred taxes result principally from temporary differences in the recognition of certain revenue and expense items for financial and income tax reporting purposes. Significant components of the Group's future tax assets are as follows:
|  | US dollars |
|  | December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Composition of deferred tax assets: |  |  |  |  |  |  |  |  |
Provision for employee-related obligation |  |  | 28,526 |  |  |  | 23,494 |  |  |  | 20,220 |
Non-capital loss carry forwards |  |  | 7,823,828 |  |  |  | 6,233,314 |  |  |  | 4,810,780 |
Valuation allowance |  |  | (7,852,354 | ) |  |  | (6,256,808 | ) |  |  | (4,831,000 | )
|  |  | - |  |  |  | - |  |  |  | - |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
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 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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration