Annual report pursuant to Section 13 and 15(d)

FINANCIAL STATEMENT SCHEDULE

v2.4.0.6
FINANCIAL STATEMENT SCHEDULE
 12 Months Ended
Dec. 31, 2012
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]
FINANCIAL STATEMENT SCHEDULE

Arotech Corporation and Subsidiaries

Schedule II – Valuation and Qualifying Accounts

For the Years Ended December 31, 2012 and 2011

Description
 
Balance at
beginning
of period
   
Reductions
   
Additions
   
Balance at
end of
period
 
Year ended December 31, 2012
                       
Allowance for doubtful accounts
  $ –     $ –     $ –     $ –  
Valuation allowance for deferred taxes*
    43,681,000       –       261,000       43,942,000  
                                 
Year ended December 31, 2011
                               
Allowance for doubtful accounts
  $ –     $ –     $ –     $ –  
Allowance for settlements
    1,553,000       (1,553,000 )     –       –  
Valuation allowance for deferred taxes*
    36,629,000       –       7,052,000       43,681,000  

*The 2012 and 2011 valuation allowance includes an adjustment to the prior year provision calculation due to changes recognized in the preparation of the actual returns.