NOTE 14: - INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2012
|
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] |
Significant components of the Company’s deferred tax
assets are as follows:
|
|
December
31,
|
|
|
|
2012
|
|
|
2011
|
|
U.S.
operating loss carryforward
|
|
$
|
17,286,287
|
|
|
$
|
16,420,226
|
|
Foreign
operating loss carryforward
|
|
|
21,366,068
|
|
|
|
20,938,603
|
|
Total
operating loss carryforward
|
|
|
38,652,355
|
|
|
|
37,358,829
|
|
|
|
|
|
|
|
|
|
|
Temporary
differences:
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
2,026,176
|
|
|
|
1,895,519
|
|
Warranty
reserves
|
|
|
1,005,118
|
|
|
|
1,033,796
|
|
Foreign
temporary differences
|
|
|
797,247
|
|
|
|
948,720
|
|
All
other temporary differences
|
|
|
1,461,543
|
|
|
|
2,443,919
|
|
Total
temporary differences
|
|
|
5,290,084
|
|
|
|
6,321,954
|
|
|
|
|
|
|
|
|
|
|
Deferred
tax asset before valuation allowance
|
|
|
43,942,439
|
|
|
|
43,680,783
|
|
Valuation
allowance
|
|
|
(43,942,439
|
)
|
|
|
(43,680,783
|
)
|
|
|
|
|
|
|
|
|
|
Total
deferred tax asset
|
|
$
|
–
|
|
|
$
|
–
|
|
|
|
|
|
|
|
|
|
|
Deferred
tax liability
|
|
$
|
4,920,021
|
|
|
$
|
4,321,521
|
|
|
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] |
Loss from continuing operations before taxes on income are as
follows:
|
|
Year
ended December 31
|
|
|
|
2012
|
|
|
2011
|
|
Domestic
|
|
$
|
260,481
|
|
|
$
|
(1,965,158
|
)
|
Foreign
|
|
|
(1,660,719
|
)
|
|
|
(1,389,392
|
)
|
|
|
$
|
(1,400,238
|
)
|
|
$
|
(3,354,550
|
)
|
|
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] |
Taxes on income were comprised of the following:
|
|
Year
ended December 31
|
|
|
|
2012
|
|
|
2011
|
|
Current
federal taxes
|
|
$
|
–
|
|
|
$
|
–
|
|
Current
state and local taxes
|
|
|
29,656
|
|
|
|
(69,734
|
)
|
Deferred
taxes
|
|
|
598,500
|
|
|
|
1,678,345
|
|
Expense
|
|
$
|
628,156
|
|
|
$
|
1,608,611
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
$
|
628,156
|
|
|
$
|
959,027
|
|
Foreign
|
|
|
–
|
|
|
|
649,584
|
|
Expense
|
|
$
|
628,156
|
|
|
$
|
1,608,611
|
|
|
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 Operations is as follows:
|
|
Year
ended December 31,
|
|
|
|
2012
|
|
|
2011
|
|
Loss
from continuing operations before taxes
|
|
$
|
(1,400,238
|
)
|
|
$
|
(3,354,550
|
)
|
|
|
|
|
|
|
|
|
|
Statutory
tax rate
|
|
|
34
|
%
|
|
|
34
|
%
|
Theoretical
income tax on the above amount at the U.S. statutory
tax rate
|
|
$
|
(476,081
|
)
|
|
$
|
(1,140,547
|
)
|
Deferred
taxes for which valuation allowance was
provided
|
|
|
860,390
|
|
|
|
2,685,812
|
|
Non-deductible
credits
|
|
|
64,726
|
|
|
|
8,035
|
|
State
taxes, net of federal benefit
|
|
|
29,656
|
|
|
|
(69,734
|
)
|
Foreign
income in tax rates other than U.S. rate
|
|
|
149,465
|
|
|
|
125,045
|
|
|
|
|
|
|
|
|
|
|
Actual
tax expense
|
|
$
|
628,156
|
|
|
$
|
1,608,611
|
|
|