Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v2.4.0.6
Income Taxes
3 Months Ended
Mar. 31, 2013
Income Taxes [Abstract]  
Income Taxes

NOTE 14.  INCOME TAXES 

 

The Company’s foreign operations that are considered to be permanently reinvested have statutory tax rates of approximately 19% - 39%

 

As of December 31, 2012, the Company’s gross deferred tax asset was $91,976.  The Company has recorded a valuation allowance, resulting in a net deferred tax asset of $74,366, excluding deferred tax liabilities.  Management has provided a valuation allowance against some of the net deferred income tax assets as of December 31, 2012, because the ultimate realization of those benefits and assets does not meet the more likely than not criteria. 

 

As of December 31, 2012, the Company had net operating loss, research and experimentation credit and alternative minimum tax credit carryforwards for U.S. federal income tax purposes of $214,195 ($1,853, relates to tax windfall, which will not be realized until an income tax payable exists), $1,640 and $291, respectively.  The Company believes its U.S. Federal net operating loss (“NOL”) will substantially offset its future U.S. Federal income taxes, excluding the amount subject to U.S. Federal Alternative Minimum Tax (“AMT”).  AMT is calculated as 20% of AMT income.  For purposes of AMT, a maximum of 90% of income is offset by available NOLs.

 

Of the $212,342 of net operating losses available to offset taxable income, all of which does not expire until 2020 or later, subject to compliance with Section 382 of the Internal Revenue Code, as amended (the “Code”) as indicated by the following schedule:

 

 

 

 

 

 

Net Operating Loss Carryforward Expiration Dates

December 31, 2012

 

 

 

 

Expiration Dates
December 31,

 

Net Operating Loss Amount

2020

 

$

27,465 

2021

 

 

50,430 

2022

 

 

115,000 

2023

 

 

5,712 

2024

 

 

3,566 

2025

 

 

1,707 

2026

 

 

476 

2028

 

 

1,360 

2029

 

 

4,074 

2030

 

 

4,405 

Total

 

 

214,195 

Tax windfall

 

 

(1,853)

After limitations

 

$

212,342