TAXES ON INCOME

12 Months Ended

Dec. 31, 2015

TAXES ON INCOME [Abstract]

TAXES ON INCOME

NOTE 7 - TAXES ON INCOME

A. The Company’s taxable income is subject to income tax at the regular corporate rate of 35%. The Company’s subsidiary in Israel is subject to income tax at the regular corporate rate of 26.5% in 2015.

B. DEFERRED INCOME TAXES:   Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows:

	YEAR ENDED DECEMBER 31,
	2015			2014
Net loss carry-forward	$	3,517		$	3,562
Other additions for tax purposes		46			(45	)
Net deferred tax asset before valuation allowance		3,563			3,517
Valuation allowance		(3,563	)		(3,517	)
Net deferred tax asset	$	–		$	–

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The most significant component of the Company’s deferred tax assets is the accumulated net operating losses carry-forward among the two subsidiaries due to the uncertainty of the realization of such tax benefits.

The Company has provided a full valuation allowance in respect of deferred tax assets resulting from tax loss carry-forward and other temporary differences. Management currently believes that since the Company has a history of losses it is more likely than not that the deferred tax regarding the loss carry-forward and other temporary differences will not be realized in the foreseeable future.

Net profit (loss) was incurred as following:

	YEAR ENDED DECEMBER 31,
	2015			2014
United States	$	(109	)	$	210
Israel		(30	)		152
	$	(139	)	$	362

C. TAX LOSS CARRY-FORWARDS:

Net operating loss carry-forwards as of December 31, 2015 are as follows:

Israel	$	4,465
United States *		6,800
	$	11,265

Net operating losses in Israel may be carried forward indefinitely.

Net operating losses in the U.S. are available through 2027.

* Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.