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Note P - Income Taxes | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE P —INCOME TAXES There was no provision for federal or state taxes as at December 31, 2017 and 2016. In December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “ Tax Act” ). The Tax Act significantly impacts the future ongoing U.S. corporate income tax by, among things, lowering the U.S. corporate income tax rates from 34% to 21%, providing for unlimited net operating loss carry-forward periods, and implementing a territorial tax system. The reduction of the U.S. corporate tax rate required the Company to revalue its U.S. deferred tax assets and liabilities and valuation allowances to the recently enacted federal rate of 21%. This transitional impact resulted in a provisional reduction of certain of the Company’ s US deferred tax assets which are offset by a full valuation allowance. The Company has deferred taxes due to income tax credits, net operating loss carryforwards, and the effect of temporary differences between the carrying values of certain assets and liabilities for financial reporting and income tax purposes. Significant components of deferred taxes are as follows at December 31:
|  | 2017 |  |  | 2016 |
Current asset: |  |  |  |  |  |  |  |
Accrued compensation |  | $ | 118,000 |  |  | $ | 67,000 |
Accounts receivable allowance |  |  | 277,000 |  |  |  | 202,000 |
Non-current asset (liability): |  |  |  |  |  |  |  |
Stock-based compensation |  |  | 387,000 |  |  |  | 360,000 |
Basis differences in fixed assets |  |  | (18,000 | ) |  |  | (8,000 | )
Basis differences in intangible assets |  |  | 46,000 |  |  |  | 60,000 |
Net operating loss and credit carryforwards |  |  | 12,052,000 |  |  |  | 18,597,000 |
Valuation allowances |  |  | (12,862,000 | ) |  |  | (19,278,000 | )
|  | $ | — |  |  | $ | — |
The Company has a valuation allowance against the full amount of its net deferred taxes due to the uncertainty of realization of the deferred tax assets due to operating loss history of the Company. The Company currently provides a valuation allowance against deferred taxes when it is more likely than not that some portion, or all of its deferred tax assets will not be realized. The valuation allowance could be reduced or eliminated based on future earnings and future estimates of taxable income. Similarly, income tax benefits related to stock options exercised have not been recognized in the financial statements. As of December 31, 2017, the Company has federal net operating loss carryforwards of approximately $57,064,000 subject to expiration between 2021 and 2037. These net operating loss carryforwards are subject to the limitations under Section 382 of the Internal Revenue Code due to changes in the equity ownership of the Company. A reconciliation of the effective income tax rate on operations reflected in the Statements of Operations to the US Federal statutory income tax rate is presented below.
|  | 2017 |  |  | 2016 |
Federal statutory income tax rate |  |  | 34 | % |  |  | 34 | %
Permanent differences |  |  | — |  |  |  | — |
Change in tax laws/tax rate |  |  | (13 | ) |  |  | - |
Effect of net operating loss |  |  | (21 | ) |  |  | (34 | )
Effective tax rate |  |  | — | % |  |  | — | %
The Company has not been audited by the Internal Revenue Service (“IRS”) or any states in connection with income taxes. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The periods from 201 4 through 2017 remain open to examination by the IRS and state jurisdictions. The Company believes it is not subject to any tax audit risk beyond those periods. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any significant interest expense recognized during the years ended December 31, 2017 and 2016.

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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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