11.	INCOME TAXES

The Company's provision (benefit) for income taxes from is summarized as follows:

Amounts in thousands	2011	2010
U.S. Federal - Current	$27	$37
U.S. Federal - Deferred	0	0
Provision for U.S. federal income taxes	27	37

Foreign - Current	721	$47
Foreign - Deferred	(81)	186
Provision for foreign income taxes	640	233
Total provision for income taxes	$667	$270

The Company's effective income tax rate differs from the statutory federal income tax rate as follows:

Amounts in thousands	2011			2010
U.S. Federal income tax statutory rate		34.0	%		34.0	%
Foreign income taxes		-26.4	%		-33.0	%
Equity in Polish investment		-0.6	%		-13.8	%
State income tax (net of federal benefit)		-0.4	%		0.0	%
Effect of stock option exercises		1.8	%		12.7	%
Bargain purchase		0.0	%		-25.6	%
Valuation allowance		1.7	%		-11.4	%
Foreign dividend		0.0	%		57.9	%
Permanent and other items		8.0	%		0.1	%
Total provision for income taxes		18.1	%		20.9	%

The Company records deferred tax assets and liabilities based on the difference between the financial statement and income tax basis of assets and liabilities using the enacted statutory tax rate in effect for the year these differences are expected to be taxable or refunded. Deferred income tax expenses or credits are based on the changes in the asset or liability from period to period. The recorded deferred tax assets are reviewed for impairment on a quarterly basis by reviewing internal estimates for future net income.

The Company assesses the continuing need for a valuation allowance that results from uncertainty regarding its ability to realize the benefits of the Company's deferred tax assets. The ultimate realization of deferred income tax assets is dependent upon generation of future taxable income during the periods in which those temporary differences become deductible. If the Company concludes that its prospects for the realization of its deferred tax assets are more likely than not, the Company will then reduce its valuation allowance as appropriate and credit income tax expense after considering the following factors:

·	The level of historical taxable income and projections for future taxable income over periods in which the deferred tax assets would be deductible;

·	Accumulation of net income before tax utilizing a look-back period of three years; and

·	Tax planning strategies.

The Company's deferred income taxes at December 31, 2011 and 2010 are summarized as follows:

Amounts in thousands	2011			2010
Deferred tax assets (liabilities) - U.S. Federal and state:

Deferred tax assets - current:
Accrued liabilities and other	$	156		$	152
Deferred tax (liabilities) - current:
Prepaid Expenses		(120	)		(100	)
Valuation allowance		(144	)		(149	)
Net deferred tax (liabilities) - current		(108	)		(97	)

Deferred tax assets - non-current:
Amortization of goodwill for tax		578			739
Amortization of startup costs		401			444
Property and equipment		1,333			1,492
NOL carryforward		2,102			2,246
Accrued liabilities and other		1,005			337
Total deferred tax assets - non-current		5,419			5,258
Deferred tax (liabilities) - non-current:
Accumulated other comprehensive earnings		(310	)		0
Valuation allowance		(5,001	)		(5,161	)
Net deferred tax assets - non-current		108			97
Total deferred tax assets - U.S. federal and state	$	0		$	0

Amounts in thousands		2011		Revised 2010
Deferred tax assets (liabilities) - Foreign

Deferred tax assets - current:
NOL carryforward	$	13		$	131
Other		65			66
Net deferred tax assets - current		78			197

Deferred tax assets - non-current:
Property and equipment		620			642
NOL carryforward		2,748			1,232
Accrued liabilities and other		443			138
Deferred tax (liabilities) - non current:
Property and equipment		(2,292	)		(1,986	)
Others		(22	)		(37	)
Valuation allowance		(2,175	)		(867	)
Net deferred tax (liabilities) - non-current		(678	)		(878	)
Total deferred tax (liabilities) - foreign	$	(600	)	$	(681	)
Net deferred tax (liabilities)	$	(600	)	$	(681	)

The following table summarizes the Company's U.S. pre-tax basis net operating loss carryforwards and related expiration dates at December 31, 2011:

Amounts in thousands	2011
Expiration Date:	Amount
2027	$1,372
2028	3,458
2029	270
2031	140
	$5,240

The following table summarizes the Company's foreign pre-tax basis net operating loss carryforwards and related expiration dates at December 31, 2011:

Amounts in thousands
Expiration Date:	Amount
2026	$111
2027	103
2028	1,538
2029	1,796
2030	1,483
2031	733
Never	5,232
	$10,996

The Company has analyzed filing positions in all of the U.S. federal, state and foreign jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company has identified its U.S. federal tax return, its state tax return in Colorado and its foreign tax returns in Canada and South Africa as "major" tax jurisdictions, as defined.

The Company's tax returns for the following periods are subject to examination:

Jurisdiction:	Periods
U.S. Federal	2005-2010
U.S. State – Colorado	2003-2010
Canada	2005-2010
South Africa	1999-2009

The Company has not recorded any potential liability for uncertain tax positions taken on its U.S. tax returns as it believes that this liability would be offset by its large cumulative U.S. net operating loss that has been fully reserved. The Company has recognized a $0.2 million liability for an unrecognized tax liability related to a foreign tax position, which is recorded as a component of taxes payable in the accompanying consolidated balance sheet as of the year ended December 31, 2011.

The Company may, from time to time, be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. The Company's policy for recording interest and penalties associated with audits is to record such items as a component of earnings before income taxes. Penalties are recorded in general and administrative expenses and interest paid or received is recorded in interest expense or interest income, respectively, in the consolidated statement of earnings.