Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Income before Income Tax, Domestic and Foreign

The consolidated loss before income taxes, by domestic and foreign sources, is as follows:

(in thousands)	Years ended December 31,
	2015				2014
Domestic		$	(4,260	)		$	(5,195	)
Foreign			26				(1,968	)
Total		$	(4,234	)		$	(7,163	)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is as follows:

(in thousands)	Years ended December 31,
	2015		2014
Current:
Federal	$	-	$	-
State		12		10
Foreign		288		178
Subtotal		300		188

Deferred:
Federal		146		24
Foreign		25		(46	)
Subtotal		171		(22	)
Total	$	471	$	166

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate differed from the statutory federal income tax rate due to the following:

	Effective Tax Rate Percentage (%)
	Years ended December 31,
	2015	2014
Statutory federal income tax rate	34.0%	34.0%
State income taxes, net of federal tax benefit	(0.2)%	(0.1)%
Effect of foreign operations	(3.0)%	(10.2)%
Change in valuation allowance	(33.8)%	(22.8)%
Permanent differences	(3.6)%	(2.1)%
Other	(4.5)%	(1.3)%
Effective tax rate	(11.1)%	(2.5)%

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes arise from temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. A summary of the tax effect of the significant components of the deferred income tax liabilities is as follows:

(in thousands)	As of December 31,
	2015			2014
Deferred tax assets:
Net operating loss carryforwards	$	8,732		$	7,745
Capital loss carryforwards		954			615
Accruals		766			485
Reserves		615			521
Alternative minimum tax credit carryforwards		166			166
Stock-based compensation expense		1,450			1,445
Other		199			39
Total deferred tax asset		12,882			11,016
Valuation allowance		(12,082	)		(10,006	)
Total deferred tax asset less valuation allowance		800			1,010

Deferred tax liabilities:
Undistributed earnings of foreign subsidiary		(17	)		(102	)
Software development costs		(446	)		(542	)
Other		(538	)		(397	)
Total deferred tax liability		(1,001	)		(1,041	)

Net deferred tax liability	$	(201	)	$	(31	)

Summary of Income Tax Contingencies [Table Text Block]

The following table outlines the Company's foreign uncertain tax liabilities.

	China				Ukraine
(in thousands)	Tax		Interest and Penalties		Tax		Interest and Penalties		Total

Balance, December 31, 2013	$	199,000	$	-	$	61,000	$	-	$	260,000
Increases		23,000		-		-		-		23,000
Decreases		-		-		-		-		-
Balance, December 31, 2014	$	222,000	$	-	$	61,000	$	-	$	283,000
Increases		3,000		152,000		-		15,000		170,000
Decreases		-		-		40,000		-		40,000
Balance, December 31, 2015	$	225,000	$	152,000	$	21,000	$	15,000	$	413,000