Income Taxes

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 12 - Income Taxes

The following summarizes the provision (benefit) for income taxes:

	2011			2010
Current:
Federal	$	—		$	149
State and local		—			45
Tax benefit for utilization of fully reserved net operating losses		—			(194	)
		—			—
Deferred:
Federal		(46	)		779
State and local		(11	)		138
		(57	)		917
Valuation allowance		57			(917	)
Provision (benefit) for income taxes	$	-		$	-

The provision (benefit) for income taxes differs from the amounts computed by applying the applicable Federal statutory rates due to the following:

	2011			2010
Provision (benefit) for Federal income taxes at the statutory rate	$	(140	)	$	607
State and local income taxes, net of Federal benefit		5			110
Permanent differences:
Stock compensation		93			36
Other		5			27
Net operating loss true up		(20	)		137
State rate adjustment		-			-
Change in valuation allowance		57			(917	)
Provision (benefit) for income taxes	$	-		$	-

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,
	2011			2010
Deferred tax assets:
Allowance for doubtful accounts		80			57
Inventories		835			1,138
Goodwill		473			838
Net operating loss carry forward		5,626			5,010
Other		104			-
Total deferred tax assets		7,118			7,043
Deferred tax liabilities:
Depreciation		(86	)		(68	)
Total deferred tax liabilities		(86	)		(68	)
		7,032			6,975
Valuation allowance		(4,751	)		(4,694	)
Net	$	2,281		$	2,281

The Company has recorded $383 of short term and $1,898 of long term deferred tax assets as of both December 31, 2011 and 2010, since it projects recovering these benefits over the next three to five years. The Company also considered various tax strategies in arriving at the carrying amount of deferred tax assets. A valuation allowance has been recorded against the balance of the long-term deferred tax benefits since management does not believe the realization of these benefits is more likely than not. As of December 31, 2011, the Company had federal net operating loss carry forwards and state net operating loss carry forwards of approximately $14,070 and $9,429, which will begin to expire in the year 2023 and 2012, respectively. The Company is no longer subject to federal and state income tax examinations by tax authorities for years prior to 2008.