Taxes

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 4 —	Taxes
	The interim financial statement provision (benefit) for income taxes is different from the amounts computed by applying the United States federal statutory income tax rate of 34%.  In summary, the reasons for these differences are as follows:

	Six months ended June 30
	2016		2015
Income taxes (benefit) at U.S. statutory rate	$	(318,000)	$	(283,000)
State income taxes, net of federal benefit		23,000		39,000
Higher / (lower) effective taxes on earnings/losses in certain foreign countries		(46,000)		84,000
Foreign corporate income taxes		44,000		45,000
Change in valuation allowance		383,000		-
Other, net		11,000		11,000
	$	97,000	$	(104,000)

During the second quarter of 2016, the Company determined that it was more likely than not that federal and various state net operating losses it expects to generate in 2016 will not be realized based on projections of future taxable income, estimated reversals of existing taxable timing differences, and other considerations. Accordingly, the income tax provision for the second quarter of 2016 includes the impact of recording a valuation allowance of $383,000 in the second quarter of 2016 against the losses generated from a U.S .  tax perspective .

One of the Company's foreign subsidiaries is presently under local country audit for alleged deficiencies (totaling approximately $800,000 plus interest at 20% per annum) in value-added tax (VAT) and withholding tax for the years 2004 through 2006.  The Company, in consultation with its legal counsel, believes that there are strong legal grounds that it is not liable to pay the majority of the alleged tax deficiencies.  As of December 31, 2010, management estimated and reserved approximately $185,000 in taxes and interest for resolution of this matter and recorded this amount within Selling, General, and Administrative expense in the 2010 Consolidated Statement of Income.  In 2011, the Company made good faith deposits to the local tax authority under the tax agency's administrative judicial resolution process.  As of June 30, 2016 and December 31, 2015, management's estimated reserve (net of deposits) for this matter is approximately $154,000 and $142,000, respectively.  There has been no change in this matter during the first six months of 2016.