Note 9 - Income Taxes

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9. Income Taxes

An income tax valuation allowance is provided when it is more likely than

not

that some portion or all of the deferred tax assets will

not

be realized. The Company has net deferred tax assets of approximately

$4.9

million at

June 30, 2018,

which are completely offset by a valuation allowance. As of

June 30, 2018,

the Company has net operating loss carry forwards for Federal income tax purposes of approximately

$13.3

million, which are available to offset future Federal taxable income, if any. The Federal net operating loss carry forwards begin to expire in

2021.

The Company also has a net operating loss carry forward for Illinois state income tax purposes of approximately

$16.0

million as of

June 30, 2018.

The Company also has alternative minimum tax credit carry forwards of approximately

$148,000,

which are available to reduce future Federal regular income taxes, if any, over an indefinite period.

No

unrecognized tax benefits are set to expire in the next

twelve

months that

may

have an impact upon the Company’s effective tax rate.

The Company files tax returns in the U.S. federal jurisdiction and various state jurisdictions. The tax years

2014,

2015,

2016

and

2017

remain open to examinations. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. During the

three

and

six

months ended

June 30, 2018,

the Company did

not

recognize expense for interest or penalties related to income tax, and does

not

have any amounts accrued at

June 30, 2018,

as the Company does

not

believe it has taken any uncertain income tax positions.