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Income Taxes
9 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

Note 13 - Income taxes

 

The provision for income taxes is approximately $31,000 and $149,000 for the three and nine months ended September 30, 2018 and $112,000 and $182,000 for the three and nine months ended September 30, 2017. The effective tax rate for the three and nine months ended September 30, 2018 was approximately (3%) and (8%), respectively. The effective tax rate is (40%) and (9%), respectively for the three and nine months ended September 30, 2017. The provision reflects an estimated current tax liability associated with the earnings of our foreign subsidiaries.

 

Due to the change in ownership provisions of the Internal Revenue Code, the availability of the Company’s net operating loss carry forwards may be subject to annual limitation against taxable income in future periods, which could substantially limit the eventual utilization of such carry forwards. The Company has not updated its Internal Revenue Code Section 382 analysis through September 30, 2018 and has not analyzed the potential impact of its recent equity financing on beneficial ownership. Therefore, no determination has been made whether the net operating loss carry forward of approximately $3,239,000 available prior to the equity financing is subject to the Internal Revenue Code Section 382 limitation.