Annual report pursuant to Section 13 and 15(d)

NOTE 14: - INCOME TAXES (Tables)

v2.4.1.9
NOTE 14: - INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2014
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,
 
   
2014
   
2013
 
U.S. operating loss carryforward
 
$
12,163,441
   
$
15,836,153
 
Foreign operating loss carryforward
   
21,284,600
     
23,852,782
 
Total operating loss carryforward
   
33,448,041
     
39,688,935
 
                 
Temporary differences:
               
Compensation and benefits
   
2,438,804
     
2,321,718
 
Warranty reserves
   
1,743,409
     
1,165,515
 
Foreign temporary differences
   
711,222
     
445,129
 
All other temporary differences
   
1,979,413
     
2,321,650
 
Total temporary differences
   
6,872,848
     
6,254,012
 
                 
Deferred tax asset before valuation allowance
   
40,320,889
     
45,942,947
 
Valuation allowance
   
(40,320,889
)
   
(45,942,947
)
                 
Total deferred tax asset
 
$
   
$
 
                 
Deferred tax liability – intangible assets
 
$
6,117,021
   
$
5,518,521
 
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
 
   
2014
   
2013
 
Domestic
 
$
4,455,370
   
$
4,215,005
 
Foreign
   
55,428
     
(888,315
)
   
$
4,510,798
   
$
3,326,690
 
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] Taxes on income were comprised of the following:

   
Year ended December 31
 
   
2014
   
2013
 
Current federal taxes
 
$
183,758
   
$
117,448
 
Current state and local taxes
   
316,444
     
210,299
 
Deferred taxes
   
598,500
     
598,500
 
Taxes in respect of prior years
   
(74,865
   
126,473
 
Expense
 
$
1,023,837
   
$
1,052,720
 
                 
Domestic
 
$
1,098,702
   
$
926,247
 
Foreign
   
(74,865
)    
126,473
 
Expense
 
$
1,023,837
   
$
1,052,720
 
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,
 
   
2014
   
2013
 
Income from continuing operations before taxes
 
$
4,510,798
   
$
3,326,690
 
                 
Statutory tax rate
   
34
%
   
34
%
Theoretical income tax on the above amount at the U.S. statutory tax rate
 
$
1,533,671
   
$
1,131,075
 
Deferred taxes for which valuation allowance was provided
   
(949,966
)
   
(797,899
)
Non-deductible credits
   
66,720
     
67,928
 
State taxes, net of federal benefit
   
269,508
     
327,747
 
Foreign income in tax rates other than U.S. rate
   
(4,989
)    
79,948
 
Taxes in respect of prior years
   
(74,865
   
126,473
 
Alternative minimum tax for which valuation allowance was not provided
   
183,758
     
117,448
 
                 
Actual tax expense
 
$
1,023,837
   
$
1,052,720