Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The components of income tax expense consist of the following:

	Twelve months ended December 31, 2017		Twelve months ended December 31, 2016

Income tax provision:
Current:
Federal and state	$	13,000	$	91,000
Foreign		118,000		49,000

Deferred:
Federal and state		-		-
Foreign		7,000		5,000

Total income tax expense	$	138,000	$	145,000

Actual income tax expense differs from statutory federal income tax benefit for the period presented is as follows:

	Twelve months ended December 31, 2017			Twelve months ended December 31, 2016

Statutory federal income tax benefit	$	(246,000	)	$	(7,462,000	)
State tax benefit, net of federal taxes		13,000			(55,000	)
Foreign tax		(82,000	)		(39,000	)
Nondeductible expenses - debt forgiveness		-			5,575,000
Nondeductible expenses – other		130,000			163,000
Subpart F Income		-			51,000
Valuation allowance (decrease)		(2,795,000	)		(7,334,000	)
Stock compensation shortfall (windfall)		(94,000	)		96,000
Stock compensation true-up and expirations		10,000			958,000
NOL expiration and true-up		204,000			8,110,000
Deferral rate change		3,313,000			-
True-up of undistributed foreign earnings		(317,000	)		-
Other		2,000			80,000

Total income tax expense	$	138,000		$	143,000

Deferred tax assets (liabilities) consist of approximately the following:

	December 31, 2017			December 31, 2016

Fixed assets	$	29,000		$	(51,000	)
Intangible assets		(1,806,000	)		(3,479,000	)
Equity method investment		33,000			-
Pension liability		69,000			76,000
Stock based compensation		446,000			535,000
Inventory		128,000			483,000
Other reserves and accruals		524,000			778,000
Deferred rent		165,000			250,000
Undistributed foreign earnings		-			(504,000	)
Foreign tax credits		68,000			68,000
Credit carryforwards		88,000			72,000
Net operating losses		7,000,000			11,230,000
Customer relations intangible		(44,000	)		-
		6,700,000			9,458,000
Less valuation allowance		(6,587,000	)		(9,382,000	)
	$	113,000		$	76,000