XML 60 R17.htm IDEA: XBRL DOCUMENT

Income Taxes

12 Months Ended

Dec. 31, 2013

10.

Income Taxes

The Company provides for deferred taxes on temporary differences between the financial statements and tax bases of assets using the enacted tax rates that are expected to apply to taxable income when the temporary differences are expected to reverse.

Our U.S. operations had a deferred tax asset related to a federal net operating loss (“NOL”) carry-forward of approximately $461,000 at December 31, 2013 for which we have not provided a valuation allowance.

At December 31, 2013 and 2012, we had federal NOL carry-forwards of approximately $1,355,000 and $0, respectively.

Our Asian operation, TMM, had NOL carry-forwards of approximately $3,728,000 and $2,934,000, at December 31, 2013 and 2012, respectively. Because these foreign NOL carry-forwards have an indefinite carry forward period, we have determined that it is not necessary to provide a valuation allowance.

The undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested. Accordingly, no provision for U.S. federal and state income taxes or foreign withholding taxes has been provided on approximately $6,000,000 of such cumulative undistributed earnings. Determination of the potential amount of unrecognized deferred U.S. income tax liability and foreign withholding taxes is not practicable because of the complexities associated with its hypothetical calculation.

Components of Pretax Income (Loss)		Years Ended December 31,
(In thousands)		2013		2012
Domestic	$	(1,643)	$	2,829
Foreign		(797)		3,223
Pretax income (loss)	$	(2,440)	$	6,052

		Components of Income Tax Expense (Benefit)
		Years Ended December 31,
		2013						2012
(In thousands)		Current		Deferred		Total		Current		Deferred		Total
Federal	$	-	$	(518)	$	(518)	$	364	$	389	$	753
State		7		-		7		11		-		11
Foreign		265		(578)		(313)		133		127		260
Total Income Tax Expense	$	272	$	(1,096)	$	(824)	$	508	$	516	$	1,024

The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate of 34% to income before taxes.

Effective Tax Rate Reconciliation		Years Ended December 31,
(In thousands)		2013		2012
Expense (benefit) computed at statutory rate	$	(829)	$	2,058
Change in valuation allowance - Domestic		-		(259)
Effect of items deductible for book not tax, net
Stock based compensation		37		30
Other		13		14
Effect of foreign tax credit		(60)		(547)
Effect of foreign tax rate differential		11		(279)
State income taxes, net of Federal benefit		4		7
	$	(824)	$	1,024


Significant Components of Deferred Taxes		Year Ended December 31,
(In thousands)		2013		2012
Deferred Tax Assets:
Net operating loss carry-forwards - Domestic	$	461	$	-
Net operating loss carry-forwards - Foreign		932		733
PP&E - Foreign		10		10
Intercompany profit		74		83
Domestic reserves		16		16
Unrealized foreign currency losses - Domestic		50		62
Other deferred assets		494		35
Total deferred tax assets	$	2,037	$	939

Deferred Tax Liabilities:
PP&E - Domestic		696		654
PP&E - Foreign		1,407		1,442
Unrealized gain on derivatives		15		20
Other		3		3
Total deferred tax liabilities		2,121		2,119
Net deferred tax liability	$	(84)	$	(1,180)

- 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+ Details