Note 20 - Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

20. Income Taxes

(Loss) income before provision for income taxes is attributable to the following geographic locations for the years ended December 31:

	2014			2013
United States	$	(15,007	)	$	(20,887	)
Foreign		12,851			(10,544	)
	$	(2,156	)	$	(31,431	)

The provision for income taxes consists of the following for the years ended December 31:

	2014		2013
Current:
Federal	$	-	$	-
State		-		7
Foreign		3,040		979
Total current				986
Deferred:
Federal		-		-
State		-		-
Foreign		-		(173	)
Total deferred		-		(173	)
Total provision for income taxes	$	3,040	$	813

The reconciliation between the actual income tax expense and income tax computed by applying the statutory U.S. Federal income tax rate of 35% to pre-tax (loss) income before provision for income taxes for the years ended December 31 is as follows:

	2014			2013
Provision for income taxes at U.S. Federal statutory rate	$	(755	)	$	(11,001	)
State taxes, net of federal benefit		13			4
Foreign taxes at different rate		(1,444	)		4,500
Non-deductible expenses		(2	)		100
Valuation allowance		6,263			7,078
Other		2			(114	)
Prior year deconsolidation		(1,237	)		-
Impairments and intangible amortization		200			246
	$	3,040		$	813

Deferred income taxes reflect the net tax effects of loss carry forwards and 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 and liabilities for federal, state and foreign income taxes are as follows at December 31 are presented below:

	2014			2013
Deferred income tax assets:
Net operating loss carry forwards	$	31,785		$	25,458
Temporary differences due to accrued warranty costs		706			684
Temporary differences due to bonus and vacation accrual		16			33
Employment turnover		666			-
Investment in subsidiaries		3,257			-
Credits		16			16
Allowance for bad debts		1,196			2,474
Fair value adjustment arising from subsidiaries acquisition		358			-
Other temporary differences		1,041			595
		39,041			29,260
Valuation allowance		(38,017	)		(29,260	)
Total deferred income tax assets		1,024			-
Deferred income tax liabilities:
Fair value adjustment arising from subsidiaries acquisition		3,680			-
Total deferred income tax liabilities		3,680			-
Net deferred tax liabilities	$	2,656		$	-

As of December 31, 2014, the Company had a net operating loss carry forward for federal income tax purposes of approximately $68,614, which will start to expire in the year 2027. The Company had a total state net operating loss carry forward of approximately $97,553, which will start to expire in the year 2017. The Company has foreign net operating loss carry forward of $4,172, some of which begin to expire in 2017. The Company had a federal AMT credit of $16, which does not expire.

Utilization of the federal and state net operating losses is subject to certain annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. However, the annual limitation may be anticipated to result in the expiration of net operating losses and credits before utilization.

The Company recognizes deferred tax assets if it is more likely than not that those deferred tax assets will be realized. Management reviews deferred tax assets periodically for recoverability and makes estimates and judgments regarding the expected geographic sources of taxable income in assessing the need for a valuation allowance to reduce deferred tax assets to their estimated realizable value. Realization of the Company’s deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Because of the Company’s lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance in the US. The valuation allowance increased by $8,757 and $9,484 during the years ended December 31, 2014 and 2013, respectively.

The Company has not provided for deferred taxes on the excess of the financial reporting over the tax basis in our investments in foreign subsidiaries that are essentially permanent in duration. The determination of the additional deferred taxes that have not been provided is not practicable.

The Company had no unrecognized tax benefits for the years ended December 31, 2014 and 2013, respectively. The Company currently files income tax returns in the U.S., as well as California, New Jersey, and certain other foreign jurisdictions. The Company is currently not the subject of any income tax examinations. The Company’s tax returns generally remain open for tax years after 2009.