4. Income Taxes

12 Months Ended

Dec. 31, 2020

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:

	2020			2019
U.S. Federal statutory rates on net loss before income taxes	E	(868	)	E	(879	)
Effect of foreign statutory rate differences		(40	)		(43	)
Effect of exchange rate changes		1,275			39
Expiration of net operating loss carry forwards		123			200
Permanent differences		--			--
Change in valuation allowance		(465	)		705
Income tax provision	E	25		E	22

All income tax expenses for the years ended December 31, 2020 and 2019 were related to current income taxes.

Loss before provision for income taxes is composed of the following:

	2020		2019
United States	E	3,147	E	3,093
Switzerland		--		172
The Netherlands		1,014		900
Loss before provision	E	4,161	E	4,165

Deferred tax asset is composed of the following:

	2020			2019
Licenses capitalized for United States tax purposes	E	129		E	217
Stock options		160			160
Foreign tax credit carry over		209			224
Net operating loss carry forwards
United States		16,167			16,692
Switzerland		16			44
The Netherlands		1,322			1,131
		18,003			18,468
Less valuation allowance for deferred tax asset		(18,003	)		(18,468	)
Net deferred tax asset	E	--		E	--

The Company's provision for income taxes was derived from U.S., Swiss, and Netherlands operations. At December 31, 2020, the Company had estimated net operating loss carry forwards which expire as follows:

	United States		Switzerland		The Netherlands
2021	E	948	E	--	E	629
2022		1,775		--		--
2023		1,182		--		43
2024		1,226		63		--
2025		1,380		--		731
2026-2038		67,203		--		3,886
Perpetual		3,273		--		--
	E	76,987	E	63	E	5,289

Net operating loss carryforwards in the United States may be subject to certain limitations under Section 382 of the Internal Revenue code.