Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Income Taxes

v3.19.2
Note 8 - Income Taxes
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
8
.
Income taxes
 
 
During the
six
-month period ended
June 30, 2019
and
July 1, 2018,
the Company recorded current income tax expense of
$695
and
$306,
respectively, in connection with U.S. state taxes and taxes on profits in certain foreign jurisdictions. The Company also recorded deferred income tax expense of
$95
and deferred income tax recovery of
$46,
respectively, in connection with temporary differences related to the Mexican operations.
 
     In assessing the realization of deferred tax assets, management considers whether it is more likely than
not
that some portion or all of its deferred tax assets will
not
be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management considers the scheduled reversal of deferred tax liabilities, change of control limitations, projected future taxable income and tax planning strategies in making this assessment. Guidance under ASC
740,
Income Taxes, (“ASC
740”
) states that forming a conclusion that a valuation allowance is
not
needed is difficult when there is negative evidence, such as cumulative losses in recent years in the jurisdictions to which the deferred tax assets relate. The U.S., Canadian and Asian jurisdictions continue to have a full valuation allowance recorded against the deferred tax assets.