Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

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.

At December 31, 2014, we had federal NOL carry-forwards of approximately $710,000 which resulted in a deferred tax asset (“DTA”) of approximately $241,000 which will begin to expire in 2033.

Our Asian operation, TMM, had NOL carry-forwards of approximately $3,297,000 at December 31, 2014, which resulted in a DTA of approximately $824,000. There are no expiration dates for the NOL in Malaysia.

We have determined that it is not necessary to provide a valuation allowance as we believe all DTA’s are fully recoverable.

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)	2014			2013
Domestic	$	132		$	(1,643	)
Foreign		(873	)		(797	)
Pretax income (loss)	$	(741	)	$	(2,440	)

	Components of Income Tax Expense (Benefit)
	Years Ended December 31,
	2014								2013
(In thousands)	Current		Deferred			Total			Current		Deferred			Total
Federal	$	-	$	94		$	94		$	-	$	(518	)	$	(518	)
State		8		-			8			7		-			7
Foreign		455		(744	)		(289	)		265		(578	)		(313	)
Total Income Tax Expense (Benefit)	$	463	$	(650	)	$	(187	)	$	272	$	(1,096	)	$	(824	)

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)	2014			2013
Expense (benefit) computed at statutory rate	$	(252	)	$	(829	)
Effect of items deductible for book not tax, net
Share based compensation		44			37
Other		(64	)		13
Effect of foreign tax credit		-			(60	)
Effect of foreign tax rate differential		80			11
State income taxes, net of Federal benefit		5			4
	$	(187	)	$	(824	)
Significant Components of Deferred Taxes	Year Ended December 31,
(In thousands)	2014			2013
Deferred Tax Assets:
Net operating loss carry-forwards - Domestic	$	241		$	461
Net operating loss carry-forwards - Foreign		824			932
PP&E - Foreign		10			10
Intercompany profit		59			74
Alternative minimum tax credit carryforwards		65			-
Domestic reserves		16			16
Unrealized foreign currency losses - Domestic		-			50
Other deferred assets		699			494
Total deferred tax assets	$	1,914		$	2,037
Deferred Tax Liabilities:
PP&E - Domestic		924			696
PP&E - Foreign		836			1,407
Unrealized gain on derivatives		5			15
Unrealized foreign currency gains - Domestic		11			-
Other		3			3
Total deferred tax liabilities		1,779			2,121
Net deferred tax asset (liability)	$	135		$	(84	)