3. Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

The reconciliation of income tax on loss computed at the federal statutory rates to income tax expense is as follows:

	2018			2017
U.S. Federal statutory rates on net loss before income taxes		E(876)			E(1,396)
Effect of foreign statutory rate differences		(43	)		(36	)
Effect of exchange rate changes		(952	)		3,516
Expiration of net operating loss carry forwards		299			580
Permanent differences		(24	)		(12	)
Deferred tax impact from tax rate change		--			9,422
Change in valuation allowance		1,615			(12,069	)
Income tax provision (benefit)		E19			E5

Deferred tax asset is composed of the following:

	2018			2017
Licenses capitalized for United States tax purposes	E	295		E	357
Stock options		160			157
Foreign tax credit carry over		224			214
Net operating loss carry forwards
United States		16,017			14,687
Switzerland		160			299
The Netherlands		907			434
		17,763			16,148
Less valuation allowance for deferred tax asset		(17,763	)		(16,148	)
Net deferred tax asset	E	--		E	--

On December 22, 2017, “H.R.1”, formerly known as the “Tax Cuts and Jobs Act”, was signed into law. Among other items, H.R.1 reduces the federal corporate tax rate to 21% from the existing maximum rate of 35%, effective January 1, 2018. As a result, the Company revalued its net deferred tax asset at December 31, 2017 at the new lower tax rate resulting in a reduction to the value of the deferred tax asset.

The Company's provision for income taxes was derived from U.S., Swiss, and Netherlands operations. At December 31, 2018, the Company had estimated net operating loss carry forwards which expire as follows:

	United States		Switzerland		The Netherlands
2019		334		466		--
2020		493		114		251
2021		1,015		--		629
2022		1,901		--
2023		1,266				43
2024-2037		67,687		30		2,703
Perpetual		3,575		--
	E	76,271	E	611		3,626