NOTE 12 - INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Components of income (loss) before taxes

	Year Ended December 31,
(in thousands)	2014	2013
U.S. operations	$1,011	($2,270)
Foreign operations	95	(314)
Total income (loss) before taxes	$1,106	($2,584)

Schedule of Components of Income Tax Expense (Benefit)

(in thousands)	Year Ended December 31,
Current tax expense (benefit)	2014	2013
U.S. federal	$0	$0
State	(4)	8
Foreign	11	(16)
	7	(8)
Deferred tax expense (benefit) – U.S. federal	-	-
Total income tax expense (benefit)	$7	($8)

Schedule of Effective Income Tax Rate Reconciliation

	Year Ended December 31,
	2014	2013
(in thousands)
Statutory tax	$376	($879)
State and foreign income tax, net of
federal income tax benefit	(80)	(125)
Valuation allowance for deferred tax assets	(289)	996
Total income tax expense (benefit)	$7	($8)

Schedule of Deferred Tax Assets and Liabilities

	Year Ended December 31,
	2014	2013
(in thousands)
Deferred income tax assets:
Allowance for doubtful accounts	$25	$25
Inventory and product return reserves	739	746
Compensation accruals	1,392	1,341
Accrued liabilities	106	28
Book-over-tax depreciation and amortization	1,018	1,021
Foreign net operating loss carryforwards	970	999
U.S. net operating loss carryforwards	6,340	6,739
U.S. credit carryforwards	1,212	1,142
	11,802	12,041
Valuation Allowance	(11,802)	(12,041)
Total Deferred Income Tax Assets	$ -	$ -

Schedule of Unrecognized Tax Benefits

	Year Ended December 31,
	2014	2013
(in thousands)
Unrecognized tax benefits, opening balance	$180	$132
Prior period tax position increases	-	23
Additions based on tax positions related to current year	17	25
Unrecognized tax benefits, ending balance	$197	$180