Annual report pursuant to Section 13 and 15(d)

NOTE 14: - INCOME TAXES (Tables)

v2.4.0.6
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