Annual report pursuant to Section 13 and 15(d)

NOTE 13: - INCOME TAXES (Tables)

v3.6.0.2
NOTE 13: - INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Significant components of the Company’s deferred tax assets are as follows:

 
 
December 31,
 
 
 
2016
   
2015
 
U.S. operating loss carryforward
 
$
16,869,205
   
$
14,814,390
 
Foreign operating loss carryforward
   
19,696,756
     
20,228,547
 
Total operating loss carryforward
   
36,565,961
     
35,042,937
 
 
               
Temporary differences:
               
Compensation and benefits
   
2,417,056
     
2,417,056
 
Warranty reserves
   
1,263,499
     
1,394,672
 
Foreign temporary differences
   
1,112,113
     
735,948
 
All other temporary differences
   
1,704,555
     
2,327,485
 
Total temporary differences
   
6,497,223
     
6,875,161
 
 
               
Deferred tax asset before valuation allowance
   
43,063,184
     
41,918,098
 
Valuation allowance
   
(43,063,184
)
   
(41,918,098
)
 
               
Total deferred tax asset
 
$
   
$
 
 
               
Deferred tax liability – intangible assets
 
$
7,868,123
   
$
7,031,564
 
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
Income from continuing operations before taxes on income are as follows:

 
 
Year ended December 31
 
 
 
2016
   
2015
   
2014
 
Domestic
 
$
(2,133,486
)
 
$
(3,071,694
)
 
$
4,455,370
 
Foreign
   
1,437,332
     
2,181,671
     
451,649
 
 
 
$
(696,154
)
 
$
(890,023
)
 
$
4,907,019
 
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Taxes on income were comprised of the following:

 
 
Year ended December 31
 
 
 
2016
   
2015
   
2014
 
Current federal taxes
 
$
   
$
   
$
183,758
 
Current state and local taxes
   
(24,634
)
   
246,403
     
316,444
 
Deferred taxes
   
836,561
     
914,543
     
598,500
 
Taxes in respect of prior years
   
(28,507
)
   
     
(74,865
)
Expense
 
$
783,420
   
$
1,160,946
   
$
1,023,837
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
A reconciliation between the theoretical tax expense, assuming all income is taxed at the U.S. federal statutory tax rate applicable to income of the Company and the actual tax expense as reported in the Statements of Comprehensive Income is as follows:

 
 
Year ended December 31,
 
 
 
2016
   
2015
   
2014
 
Income (loss) from continuing operations before taxes
 
$
(696,154
)
 
$
(890,023
)
 
$
4,907,019
 
 
                       
Statutory tax rate
   
34
%
   
34
%
   
34
%
Theoretical income tax on the above amount at the U.S. statutory tax rate
 
$
(236,692
)
 
$
(302,608
)
 
$
1,668,386
 
Deferred taxes for which valuation allowance was provided
   
589,912
     
1,413,567
     
(969,983
)
Non-deductible expenses
   
22,746
     
31,841
     
66,720
 
State taxes, net of federal benefit
   
(16,258
)
   
181,771
     
269,508
 
Foreign income in tax rates other than U.S. rate
   
452,219
     
(163,625
)
   
(119,687
)
Taxes in respect of prior years
   
(28,507
)
   
     
(74,865
)
Alternative minimum tax for which valuation allowance was not provided
   
     
     
183,758
 
 
                       
Actual tax expense
 
$
783,420
   
$
1,160,946
   
$
1,023,837