Note 18 - Restatement

12 Months Ended

Dec. 31, 2014

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

18. RESTATEMENT

Subsequent to the filing of our Form 10-K on February 18, 2015, the company determined that it had not properly accounted for the tax impact of a determination made in 2014 that the stock of its VISaer subsidiary had become worthless. The company intends to record a $10.2 million worthless stock deduction in its consolidated U.S. Federal income tax return and treat the loss as a capital loss which will carry forward for five years for income tax purposes. As a result, the deferred tax assets and net operating loss carryforwards associated with VISaer went away and the company gained a deferred tax asset of $3.6 million related to the capital loss. Accordingly the company has revised certain items in Note 7 that were impacted by this omission. The restatement does not have any impact on the consolidated balance sheets or statements of operations and cash flows as of and for the year ended December 31, 2014 as previously filed. The effects of the restatement of certain amounts in Note 7 are summarized below:

● Net deferred tax assets at December 31:

(in thousands)	2014 as restated			2014 as reported
Deferred tax assets:
Federal, state and foreign loss carryforwards	$	3,862		$	7,039
Capital loss carryforward		3,570			--
Capitalized research and development		--			241
Deferred revenue		71			71
Federal and state tax credits		520			2,269
Other		503			503
Total deferred tax asset		8,526			10,123
Less valuation allowance		(8,526	)		(10,123	)
Net deferred tax asset	$	--		$	--

● In addition, the total net operating loss carryforwards that will expire beginning in 2019 decreased from $20.1 million to $11.0 million and the amounts expiring in each year decreased as well as reflected in the detail below. In addition, the amount of net operating losses subject to Separate Return Limitation Year rules was reduced from $11.3 million to $1.5 million.

As of December 31, the following net operating loss carryforwards, if unused as offsets to future taxable income, will expire during the following years:

(in thousands)	2014 as restated		2014 as reported
2019	$	--	$	2,901
2021		689		1,184
2022		849		1,083
2023		--		1,302
Thereafter		9,498		13,642
Total	$	11,036	$	20,112