Note 13 - Income Taxes
|12 Months Ended|
Dec. 31, 2016
|Notes to Financial Statements|
|Income Tax Disclosure [Text Block]||
The components of current and deferred federal and state income tax (benefit) expense for continuing operations for the years ended
31,consisted of the following (in thousands):
We had temporary differences and net operating loss carry forwards from both our continuing and discontinued operations, which gave rise to deferred tax assets and liabilities at
2015as follows (in thousands):
An overall reconciliation between the expected tax (benefit) expense using the federal statutory rate of
34%and the (benefit) expense for income taxes from continuing operations as reported in the accompanying Consolidated Statement of Operations is provided below (in thousands).
The provision for income taxes is determined in accordance with ASC
740,“Income Taxes.” Deferred income tax assets and liabilities are recognized for future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
The Company regularly assesses the likelihood that the deferred tax asset will be recovered from future taxable income. The Company considers projected future taxable income and ongoing tax planning strategies, then records a valuation allowance to reduce the carrying value of the net deferred income taxes to an amount that is more likely than not to be realized. In
2015,we determined that it was more likely than not that approximately
$8,592,000,respectively, of deferred income tax assets would not be realized, and as such, a full valuation allowance was applied against those deferred income tax assets. Our valuation allowance increased by
$56,000for the years ended
We have estimated net operating loss carryforwards (“NOLs”) for federal and state income tax purposes of approximately
$65,658,000,respectively, as of
2016.The estimated consoliated federal and state NOLs include approximately
$4,179,000,respectively, of our majority-owned subsidiary, PF Medical, which is not part of our consolidated group for tax purposes. These net operating losses can be carried forward and applied against future taxable income, if any, and expire in various amounts starting in
2021.However, as a result of various stock offerings and certain acquisitions, which in the aggregate constitute a change in control, the use of these NOLs will be limited under the provisions of Section
382of the Internal Revenue Code of
1986,as amended. Additionally, NOLs
maybe further limited under the provisions of Treasury Regulation
21regarding Separate Return Limitation Years.
The tax years
2015remain open to examination by taxing authorities in the jurisdictions in which the Company operates.
No uncertain tax positions were identified by the Company for the years currently open under statute of limitations, including
2015,the Company had approximately
$32,000of federal income tax payable, respectively.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef