Income Taxes

12 Months Ended

Dec. 31, 2021

Income Taxes

Income Taxes

Note 4. Income Taxes

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

	2021			2020
U.S. Federal statutory rates on net loss before income taxes	E	(993	)	E	(868	)
Effect of foreign statutory rate differences		(60	)		(40	)
Effect of exchange rate changes		(1,089	)		1,275
Expiration of net operating loss carry forwards		217			123
Permanent differences		-			-
Change in valuation allowance		1,925			(465	)
Income tax provision	E	-		E	25

All income tax expenses for the years ended December 31, 2021, and 2020 were related to current income taxes.

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

	2021		2020
United States	E	3,249	E	3,147
Switzerland		438		(28	)
The Netherlands		1,043		1,014
Loss before provision	E	4,730	E	4,133

Deferred tax asset is composed of the following:

	2021			2020
Licenses capitalized for United States tax purposes	E	60		E	129
Stock options		160			160
Foreign tax credit carry over		226			209
Net operating loss carry forwards
United States		18,067			16,167
Switzerland		61			16
The Netherlands		1,354			1,322
		19,928			18,003
Less valuation allowance for deferred tax asset		(19,928	)		(18,003	)
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, 2021, the Company had estimated net operating loss carry forwards which expire as follows:

	United States		Switzerland		The Netherlands
2022		1,919		--		--
2023		1,278		--		43
2024		1,325		66		--
2025		1,492		--		731
2026		1,861		--		1,005
2027-2039		74,743		178		3,638
Perpetual		3,817		--		--
	E	86,035	E	244	E	5,417

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