Income Taxes

12 Months Ended

Dec. 31, 2022

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:

	2022			2021
U.S. Federal statutory rates on net loss before income taxes	E	(1,009 )		E	(993 )
Effect of foreign statutory rate differences		(57	)		(60	)
Effect of exchange rate changes		(1,058	)		(1,089	)
Expiration of net operating loss carry forwards		428			217
Permanent differences		--			--
Change in valuation allowance		1,696			1,925
Income tax provision	E	--		E	--

All income tax expenses for the years ended December 31, 2022, and 2021 were related to current income taxes.

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

	2022		2021
United States	E	3,379	E	3,249
Switzerland		382		438
The Netherlands		1,045		1,043
Loss before provision	E	4,806	E	4,730

Deferred tax asset is composed of the following:

	2022		2021
Licenses capitalized for United States tax purposes	E	--	E	60
Stock options		160		160
Foreign tax credit carry over		240		226
Net operating loss carry forwards
United States		19,662		18,067
Switzerland		87		61
The Netherlands		1,582		1,354
		21,731		19,928
Less valuation allowance for deferred tax asset		(21,731)		(19,928)
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, 2022, the Company had estimated net operating loss carry forwards which expire as follows:

	United States		Switzerland		The Netherlands
2023		1,355		--		43
2024		1,405		69		--
2025		1,582		--		731
2026		1,973		--		1,005
2027		10,408		--		921
2028-2040		72,986		278		3,629
Perpetual		3,918		--		--
	E	93,627	E	347	E	6,329

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