Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income From Continuing Operations before Provision for Income Taxes

The Company’s income from continuing operations before provision for income taxes was generated from the U.S. and foreign operations for the years ended December 31 as follows (in thousands):

	2013			2012
Earnings (loss) before income taxes:
U.S.	$	(2,040	)	$	(2,659	)
Foreign		1,760			3,076
Earnings (loss) before income taxes	$	(280	)	$	417

Schedule of Provision for Income Taxes

The Company’s provision for income taxes on continuing operations consisted of the following for the years ended December 31 (in thousands):

	2013			2012
Current:
Federal	$	-		$	-
State		-			11
Foreign		172			320
Total current		172			331
Deferred:
Federal		-			-
State		-			1
Foreign		(60	)		(17	)
Total deferred		(60	)		(17	)
Total provision for income taxes	$	112		$	314

Schedule of Income Tax Expense Benefit

Income tax expense on continuing operations differed from the amount obtained by applying the statutory federal income tax rate of 34% to income before income taxes as follows for the years ended December 31 (in thousands):

	2013			2012
Federal income tax at statutory rates	$	(121)		$	143
State income taxes, net of federal benefit		-			11
Foreign income taxes		(461	)		(744	)
Changes in valuation allowances		521			287
Foreign income inclusion - IRC 956		165			607
Permanent differences		8			10
	$	112		$	314

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities were as follows as of December 31 (in thousands):

	2013			2012
Current deferred tax assets:
Allowance for doubtful accounts	$	5		$	1
Inventory reserves and uniform capitalization		982			661
Other accrued liabilities		91			178
		1,078			840
Valuation allowance-current deferred tax assets		(1,032	)		(712	)
Total current deferred tax assets		46			128
Long-term deferred tax assets:
Depreciation on property, plant & equipment		26			142
Non-qualified stock option expense		13			3
Deferred compensation		240			246
Deferred income		3			-
Tax credits		55			114
Net operating loss carry-forwards		6,900			5,095
Other, net		448			45
		7,685			5,645
Valuation allowance-long-term deferred tax assets		(7,632	)		(5,586	)
Total long-term deferred tax assets		53			59
Deferred tax liabilities:
Intangible assets other than goodwill		(17	)		-
Total deferred tax assets (long-term)		36			-
Net deferred tax assets	$	82		$	187