Provision for Taxes

3 Months Ended

Mar. 31, 2013

Provision for Taxes [Abstract]

PROVISION FOR TAXES

NOTE 6 — PROVISION FOR TAXES

The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse.

As of December 31, 2010, the Company provided for U.S. tax on foreign earnings of approximately $25,475 that is expected to be repatriated. As of March 31, 2013, $13,757 had been successfully repatriated. Income taxes related to repatriation of cash held in foreign countries is not expected to exceed $350. As of March 31, 2013, $200 of income taxes related to the repatriation has been paid and the remainder is expected to be paid in 2013. As of March 31, 2013, the fair value of net deferred tax assets is zero due to full valuation allowance.

As of March 31, 2013 and December 31, 2012, the Company had no unrecognized tax benefits. For the quarter ended March 31, 2013, there were no interest or penalties recorded.

In Belgium, the Company is still open to examination by the Belgian tax authorities from 2009 forward. Currently the tax years 2009 and 2010 are under examination. It is unclear at the present whether the results of that audit would have a material effect on the Company’s financial statements. In the United States, the Company is still open to examination from 2009 forward, although carryforward tax attributes that were generated prior to 2009 may still be adjusted upon examination by the U.S. tax authorities if they either have been or will be utilized.