INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The income tax benefit is based on the following pre-tax (loss) income for the years ended December 31, (amounts in thousands):

	2015				2014
Domestic		$	(7,808	)		$	294
Foreign			(242	)			(88	)
Total		$	(8,050	)		$	206

Schedule of Components of Income Tax Expense (Benefit)

The income tax benefit consists of the following for the years ended December 31, (amounts in thousands):

	2015			2014
Current tax provision
Federal	$	-		$	-
State		20			38
Current provision		20			38
Deferred tax benefit		(110	)		(2,317	)
Total benefit	$	(90	)	$	(2,279	)

Schedule of Effective Income Tax Rate Reconciliation

Actual income taxes reported from continuing operations are different than what would have been computed by applying the federal statutory tax rate to income from continuing operations before income taxes.  The reasons for this difference are as follows for the years ended December 31, (amounts in thousands):

	2015			2014
(Benefit) provision from income taxes at statutory rate	$	(2,818	)	$	72
State income taxes, net of federal benefit		13			25
Net operating losses adjustments		254			283
Valuation allowance adjustments		1,295			(2,931	)
Permanent items		10			10
Reduction of foreign tax credits		1,266			318
Reduction of tax reserves		(110	)		-
Other, net		-			(56	)
Net benefit for income taxes	$	(90	)	$	(2,279	)

Schedule of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred income tax liabilities and assets as of December 31, are as follows (amounts in thousands):

	2015			2014
Deferred tax liabilities
Inventory costs	$	(1,086	)	$	(694	)
Deferred tax assets
Allowance for doubtful receivables	$	10		$	72
Accrued expenses and other items		5,661			4,816
Difference between book and tax bases of property		(2,489	)		(2,443	)
Operating loss carry-forwards - domestic		64,416			62,054
Operating loss carry-forwards - foreign		2,243			2,389
Tax credit carry-forwards		11,367			12,633
		81,208			79,521
Less valuation allowance		(80,244	)		(78,949	)
		964			572
Net deferred income tax asset	$	(122	)	$	(122	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balance for liabilities associated with unrecognized tax benefits is as follows (amounts in thousands):

Balances at January 1, 2014	$	109
Tax positions related to prior years		-
Reductions for tax positions related to prior years		-
Lapse of applicable statute of limitations		-
Balances at December 31, 2014		109
Tax positions related to prior years		-
Reductions for tax positions related to prior years		-
Lapse of applicable statute of limitations		(109	)
Balances at December 31, 2015	$	-