XML 54 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 8 - Income Taxes
3 Months Ended
Sep. 30, 2013
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

8. Income Taxes


Income taxes are accounted for under the liability method, under which deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against the net deferred tax assets is recorded if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company records liabilities for income tax contingencies if it is probable that the Company has incurred a tax liability and the liability or range of loss can be reasonably estimated.


The Company continues to maintain a valuation allowance on the entirety of its U.S. capital loss carryforwards, foreign net operating loss carryforwards, and a portion of its federal and state net operating loss carryforwards due to uncertainty about its ability to utilize such carryforwards.


The Company believes that its income tax filing positions taken or expected to be taken in its tax returns will more likely than not be sustained upon audit by the taxing authorities and does not anticipate any adjustments that will result in a material adverse impact on the Company’s financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded. The Company’s income tax returns for the past three years are subject to examination by tax authorities, and may change upon examination.


The Company records interest related to taxes in other expense and records penalties in operating expenses.