Annual report pursuant to Section 13 and 15(d)

PREPAID FOREIGN TAXES

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PREPAID FOREIGN TAXES
12 Months Ended
Dec. 31, 2015
Prepaid Expense, Noncurrent [Abstract]  
Prepaid Foreign Taxes Disclosure [Text Block]
7.
PREPAID FOREIGN TAXES
 
Prepaid foreign taxes, net, of $360,015 and $672,541 at December 31, 2015 and 2014, respectively, consists primarily of prepaid VAT. VAT credits are recovered, through VAT collections on subsequent sales of products by the Company. Prepaid VAT tax credits do not expire. Management considers the historical and projected revenues, expenses and capital expenditures in making this assessment.
 
In assessing the realization of the prepaid foreign taxes, management considers whether it is more likely than not that some portion or all of the prepaid foreign taxes will not be realized. Based on this assessment, management has recorded a valuation allowance related to prepaid foreign taxes of $457,447 and $602,375 as of December 31, 2015 and 2014, respectively.