Income taxes (restated)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 18. Income taxes (restated)

Significant components of deferred tax assets were as follows as of December 31:

	Year ended December 31,
	2012			2011
U.S. federal tax loss carry-forward	$	6,400		$	5,858
U.S. State tax loss carry-forward		224			74
Foreign tax loss carry-forward		15,552			15,968
U.S. federal capital loss carry-forward		706			671
Equity-based compensation, fixed assets and other		255			104
Total deferred tax assets		23,137			22,675
Less: valuation allowance		(22,917	)		(22,675	)
Subtotal		220			–
Deferred Tax Liability
Warrants		(220	)
Net deferred tax asset	$	–		$	–

As of December 31, 2012, the Company had the following tax attributes:

	Amount		Begins to expire
U.S. federal net operating loss carry-forwards	$	19,049		Fiscal 2023
U.S. State net operating loss carry-forwards		2,694		Fiscal 2031
U.K. net operating loss carry-forwards		67,617		Indefinite
U.S. federal capital loss carry-forwards		2,076		Fiscal 2015

The U.K. Net Operating Loss carry-forwards relate to Medicsight Ltd. This entity was closed in December 2012, however it was not closed for income tax purposes until January 2013. The utilization of these net operating losses is not expected and they were surrendered upon the closure of the company.

As it is not more likely than not that the resulting deferred tax benefits will be realized, a full valuation allowance has been recognized for such deferred tax assets. Federal and state laws impose substantial restrictions on the utilization of tax attributes in the event of an “ownership change,” as defined in Section 382 of the Internal Revenue Code. Currently, the Company does not expect the utilization of tax attributes in the near term to be materially affected as no significant limitations are expected to be placed on these tax attributes as a result of previous ownership changes. If an ownership change is deemed to have occurred as a result of equity ownership changes or offerings, potential near term utilization of these assets could be reduced.

The provision for/(benefit from) income tax differs from the amount computed by applying the statutory federal income tax rate to income before the provision for/(benefit from) income taxes. The sources and tax effects of the differences are as follows for the year ended December 31:

	2012			2011
Income taxes at the federal statutory rates		35	%		35	%
Foreign rate differential		42			45
Change in valuation allowance		(7	)		(12	)
Effective rate of income tax		0	%		(2	)%

There was an income tax expense/(benefit) of $14 and $(198) recorded in the years ended December 31, 2012, and 2011, respectively.

The Company files income tax returns in the U.S. federal jurisdiction, New York State and various foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2009.