8. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income tax expense (benefit)

	Current		Deferred		Total
Year Ended December 31, 2011:
US federal	$	––	$	––	$	––
State and local		––		––		––
Foreign		2,070		––		2,070
	$	2,070	$	––	$	2,070
Year Ended December 31, 2012:
US federal	$	––	$	––	$	––
State and local		––		––		––
Foreign		3,392		––		3,392
	$	3,392	$	––	$	3,392

Reconciliation of expected income tax expense (benefit)

	2011			2012
Computed "expected" US tax (benefit) at Federal statutory rate	$	(295,115	)	$	(248,996	)
Change resulting from:
State and local income taxes, net of federal income tax benefit		––			––
Foreign income taxes		2,070			3,392
Federal valuation allowance		254,390			235,607
Non––deductible items		39,779			14,456
Change in estimate for prior years’ provisions		946			(1,067	)
Income tax expense (benefit)	$	2,070		$	3,392

Schedule of Deferred Tax Assets and Liabilities

	2011			2012
Deferred income tax assets:
Inventories	$	398,768		$	333,315
Accounts receivable		227,443			292,846
Intangible assets		168,549			96,791
Accrued expenses		53,600			60,397
Net operating loss and tax credit carry forwards		17,615,396			17,792,110
Plant and equipment		13,789			15,378
Stock compensation		88,429			88,059
Other – investment impairments		––			127,855
Total deferred income tax assets		18,565,974			18,806,751
Valuation allowance		(18,565,974	)		(18,806,751	)
Net deferred tax assets	$	––		$	––