Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.1.9
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
The components of the provision (benefit) for income taxes, in the consolidated statements of operations are as follows (in thousands):
 
 
 
Year Ended December 31,
 
 
 
2014
 
2013
 
2012
 
Current
 
 
 
 
 
 
 
 
 
 
Federal
 
$
-
 
$
-
 
$
-
 
State
 
 
-
 
 
-
 
 
-
 
 
 
 
-
 
 
-
 
 
-
 
Deferred
 
 
 
 
 
 
 
 
 
 
Federal
 
 
(2,471)
 
 
1,216
 
 
(618)
 
State
 
 
(74)
 
 
(999)
 
 
1,377
 
 
 
 
(2,545)
 
 
217
 
 
759
 
Total
 
$
(2,545)
 
$
217
 
$
759
 
 
 
 
 
 
 
 
 
 
 
 
Income taxes from continuing operations before
 
 
 
 
 
 
 
 
 
 
valuation allowance
 
$
(2,545)
 
$
217
 
$
759
 
Change in valuation allowance
 
 
2,545
 
 
(217)
 
 
(759)
 
Income tax (benefit)
 
 
-
 
 
-
 
 
-
 
Total
 
$
-
 
$
-
 
$
-
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
A reconciliation of the statutory federal income tax expense (benefit) to the effective tax is as follows (in thousands):
 
 
 
Year Ended December 31,
 
 
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Statutory rate – federal
 
$
(2,662)
 
$
138
 
$
(661)
 
State taxes, net of federal benefit
 
 
(51)
 
 
17
 
 
1,377
 
Permanent differences and other
 
 
168
 
 
62
 
 
43
 
Income tax from continuing operation before
 
 
 
 
 
 
 
 
 
 
valuation allowance
 
 
(2,545)
 
 
217
 
 
759
 
 
 
 
 
 
 
 
 
 
 
 
Change in valuation allowance
 
 
2,545
 
 
(217)
 
 
(759)
 
 
 
 
 
 
 
 
 
 
 
 
Income tax (benefit)
 
 
-
 
 
-
 
 
-
 
Total
 
$
-
 
$
-
 
$
-
 
Income Tax Reconciliation Components Permanent And Other Differences [Table Text Block]
The components of permanent and other differences are as follows (in thousands):
 
 
 
Year Ended December 31,
 
 
 
2014
 
2013
 
2012
 
Permanent items:
 
 
 
 
 
 
 
 
 
 
Meals and Entertainment
 
$
7
 
$
7
 
$
6
 
Return to provision adjustment
 
 
-
 
 
-
 
 
(46)
 
Charitable contributions
 
 
1
 
 
1
 
 
4
 
Share-based compensation expense for stock options granted  (1)
 
 
160
 
 
54
 
 
79
 
 
 
$
168
 
$
62
 
$
43
 
 
(1)
This item relates to share-based compensation expense for financial reporting purposes not deducted for tax purposes until such options are exercised.
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
The tax effects of the primary “temporary differences” between values recorded for assets and liabilities for financial reporting purposes and values utilized for measurement in accordance with tax laws giving rise to our deferred tax assets are as follows (in thousands):
 
 
 
Year Ended December 31,
 
 
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Net operating loss and capital loss carryforward
 
 
14,983
 
$
13,569
 
$
14,158
 
Consulting-royalty costs
 
 
39
 
 
80
 
 
121
 
Trademark
 
 
752
 
 
819
 
 
-
 
Investment in Phusion
 
 
(483)
 
 
(387)
 
 
-
 
Depreciation
 
 
(45)
 
 
(34)
 
 
60
 
Other
 
 
2,508
 
 
1,009
 
 
983
 
Valuation allowance
 
 
(17,754)
 
 
(15,056)
 
 
(15,322)
 
Total
 
$
-
 
$
-
 
$
-