Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.10.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Assets and Liabilities
Significant components of the Company’s deferred tax assets are as follows:
 
December 31,
 
2018
 
2017
(as restated)
U.S. operating loss carryforward (federal and state)
$
7,743,478

 
$
9,452,111

Foreign operating loss carryforward
21,619,611

 
21,949,779

Total operating loss carryforward
29,363,089

 
31,401,890

 
 
 
 
Temporary differences:
 
 
 
Compensation and benefits
156,240

 
62,038

Warranty reserves
1,141,244

 
871,219

Foreign temporary differences
449,738

 
684,230

Definite lived intangible assets
1,822,770

 
1,696,965

Fixed assets
609,259

 
864,139

AMT credit
173,638

 
173,638

All other temporary differences
332,537

 
420,322

Total temporary differences
4,685,426

 
4,772,551

 
 
 
 
Deferred tax asset before valuation allowance
34,048,515

 
36,174,441

Valuation allowance
(30,284,545
)
 
(32,586,628
)
Total deferred tax asset
$
3,763,970

 
$
3,587,813

 
 
 
 
Deferred tax liability – intangible assets
$
6,627,068

 
$
5,987,789

Net deferred tax liability
$
2,863,098

 
$
2,399,976

Schedule of Income before Income Tax, Domestic and Foreign
Income (loss) from continuing operations before taxes on income are as follows:
 
Twelve months ended December 31,
 
2018
 
2017
 
2016
Domestic
$
8,929,239

 
$
476,327

 
$
(2,133,486
)
Foreign
(6,495,643
)
 
1,333,679

 
1,437,332

Total
$
2,433,596

 
$
1,810,006

 
$
(696,154
)
Schedule of Components of Income Tax Expense (Benefit)
Taxes on income were comprised of the following:
 
Twelve months ended December 31,
 
2018
 
2017
(as restated)
 
2016
Current federal taxes
$

 
$

 
$

Current state and local taxes
329,599

 
47,316

 
(24,634
)
Deferred taxes
463,122

 
(5,468,149
)
 
836,561

Foreign taxes
(229,080
)
 
241,267

 

Taxes in respect of prior years

 
(45,309
)
 
(28,507
)
(Benefit)/expense
$
563,641

 
$
(5,224,875
)
 
$
783,420

Schedule of Effective Income Tax Rate Reconciliation
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 and Comprehensive Income is as follows:
 
Twelve months ended December 31,
 
2018
 
2017
(as restated)
 
2016
Income (loss) from continuing operations before taxes
$
2,433,596

 
$
1,810,006

 
$
(696,154
)
Statutory tax rate
21
%
 
34
%
 
34
%
Theoretical income tax on the above amount at the U.S. statutory tax rate
$
511,055

 
$
615,402

 
$
(236,692
)
Deferred taxes for which valuation allowance was provided
(207,931
)
 
497,850

 
589,912

Non-deductible expenses
34,344

 
74,153

 
22,746

State taxes, net of federal benefit
260,383

 
31,228

 
(16,258
)
Foreign income in tax rates other than U.S. rate
(34,210
)
 
(36,925
)
 
452,219

Taxes in respect of prior years

 
(45,309
)
 
(28,507
)
Enactment date and measurement period adjustments from the Tax Act

 
(6,361,274
)
 

Actual tax expense
$
563,641

 
$
(5,224,875
)
 
$
783,420