Note 5 - Income Taxes	6 Months Ended
Jun. 30, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	5 . Income Taxes During 2016 and 2017, the Company determined that it was more likely than not that U.S. federal and various state net operating losses primarily generated in 2016 and 2017 will not be realized based on projections of future U.S. taxable income, estimated reversals of existing taxable timing differences, and other considerations. In prior years, the Company recorded a valuation allowance on all of its domestic and foreign deferred tax assets. The effective income tax rate was ( 3.4 )% and 92.2% for the six months ended June 30, 2018 and 2017, respectively. The income tax provision amounts for the six months ended June 30, 2018 and 2017, respectively, primarily represent estimated income taxes in certain U.S. states and one of the Company’s foreign subsidiaries. The United States Tax Cuts and Jobs Act (TCJA) was enacted in December 2017, which significantly changed U.S. tax law, principally by permanently reducing the U.S. federal statutory rate to 21% effective January 1, 2018, implementing a territorial tax system, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. Under the TJCA’s repatriation tax, the Company estimates its cumulative amount of unremitted foreign earnings and related tax is immaterial. The effect of the federal tax rate reduction to 21% is reflected as a reduction in the U.S. deferred tax assets with a corresponding reduction in the valuation allowance. Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin (“SAB”) 118 to provide guidance to companies on the reporting of the impacts of TCJA in their financial statements. Under SAB 118, the Company is recording affected items as provisional to allow additional time for clarifying technical guidance from Treasury and analysis of the effect to the Company’s current tax positions. 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 should not be liable to pay the majority of the alleged tax deficiencies. In 2011, the Company made good faith deposits of approximately $173,000 to the local tax authority under the tax agency’s administrative judicial resolution process. As of December 31, 2017, management’s estimated reserve (net of deposits) for this matter was approximately $181,000 and remains unchanged in the first half of 2018. In May 2018, the Company received a formal notice of denial of one of its appeals under the tax agency’s administrative judicial resolution process; however, management continues to pursue other available legal processes as the Company maintains its position that it is not liable for the majority of the alleged tax deficiencies.

. Income Taxes

During

2016

and

2017,

the Company determined that it was more likely than

not

that U.S. federal and various state net operating losses primarily generated in

2016

and

2017

will

not

be realized based on projections of future U.S. taxable income, estimated reversals of existing taxable timing differences, and other considerations.

In prior years, the Company recorded a valuation allowance on all of its domestic and foreign deferred tax assets. The effective income tax rate was (

3.4

)% and

92.2%

for the

six

months ended

June 30, 2018

and

2017,

respectively. The income tax provision amounts for the

six

months ended

June 30, 2018

and

2017,

respectively, primarily represent estimated income taxes in certain U.S. states and

one

of the Company’s foreign subsidiaries.

The United States Tax Cuts and Jobs Act (TCJA) was enacted in

December 2017,

which significantly changed U.S. tax law, principally by permanently reducing the U.S. federal statutory rate to

21%

effective

January 1, 2018,

implementing a territorial tax system, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. Under the TJCA’s repatriation tax, the Company estimates its cumulative amount of unremitted foreign earnings and related tax is immaterial. The effect of the federal tax rate reduction to

21%

is reflected as a reduction in the U.S. deferred tax assets with a corresponding reduction in the valuation allowance.

Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin (“SAB”)

118

to provide guidance to companies on the reporting of the impacts of TCJA in their financial statements. Under SAB

118,

the Company is recording affected items as provisional to allow additional time for clarifying technical guidance from Treasury and analysis of the effect to the Company’s current tax positions.

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 should

not

be liable to pay the majority of the alleged tax deficiencies. In

2011,

the Company made good faith deposits of approximately

$173,000

to the local tax authority under the tax agency’s administrative judicial resolution process.

As of

December 31, 2017,

management’s estimated reserve (net of deposits) for this matter was approximately

$181,000

and remains unchanged in the

first

half of

2018.

May 2018,

the Company received a formal notice of denial of

one

of its appeals under the tax agency’s administrative judicial resolution process; however, management continues to pursue other available legal processes as the Company maintains its position that it is

not

liable for the majority of the alleged tax deficiencies.