Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

(10) Income Taxes

The Company accounts for its income taxes in accordance with ASC 740-10. Under ASC 740-10, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases. ASC 740-10 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized based on all available positive and negative evidence.

The Company had approximately $156 million and $150 million of federal and state net operating loss carryforwards as of December 31, 2013 and 2012, respectively. The Company has a full valuation allowance against its deferred tax assets as management concluded that it was more likely than not that the Company would not realize the benefit of its deferred tax assets by generating sufficient taxable income in future years. The Company expects to continue to provide a full valuation allowance until, or unless, it can sustain a level of profitability that demonstrates its ability to utilize these assets.

Subject to potential Section 382 limitations as discussed below, the federal losses are available to offset future taxable income through 2033 and expire from 2019 through 2033. Since the Company does business in various states and each state has its own rules with respect to the number of years losses may be carried forward, the state net operating loss carryforwards expire from 2014 through 2033. The net operating loss carryforwards as of December 31, 2013 and 2012 include approximately $15 million and $16 million, respectively, related to windfall tax benefits for which a benefit would be recorded to additional paid in capital when realized.

In accordance with Section 382 of the Internal Revenue code, the ability to utilize the Company’s net operating loss carryforwards could be limited in the event of a change in ownership and as such a portion of the existing net operating loss carryforwards may be subject to limitation.

The Company is subject to federal, state and local corporate income taxes. The components of the provision for income taxes reflected on the consolidated statements of operations from continuing operations are set forth below:

	For the Years Ended December 31,
		2013		2012		2011
Current taxes:
U.S. federal	$	—	$	—	$	—
State and local		—		—		—
Total current tax benefit	$	—	$	—	$	—
Deferred taxes:
U.S. federal	$	—	$	—	$	—
State and local		—		—		—
Total deferred tax expense	$	—	$	—	$	—
Total tax expense	$	—	$	—	$	—

A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective income tax rate is set forth below:

	For the Years Ended December 31,
	2013			2012			2011
U.S. statutory federal income tax rate		34.0	%		34.0	%		34.0	%
State income taxes, net of federal tax benefit		6.3			6.3			6.0
Effect of permanent differences		(2.9	)		(0.8	)		(1.6	)
Change to valuation allowance		(37.4	)		(39.7	)		(38.4	)
Other		0.0			0.2			0.0
Effective income tax rate		0.0	%		0.0	%		0.0	%

Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. Significant components of the Company’s net deferred tax assets and liabilities are set forth below:

	As of December 31,
	2013			2012
	(in thousands)
Deferred tax assets:
Operating loss carryforward	$	62,992		$	60,801
Windfall tax benefit carryforward		(5,243	)		(5,498	)
Capital loss carryforward		30			—
Goodwill		285			833
Intangible assets		1,195			1,215
Accrued expenses		1,677			2,456
Depreciation		693			509
Other		2,050			2,178
Total deferred tax assets		63,679			62,494
Deferred tax liabilities:
Trademarks/goodwill		(288	)		(288	)
Total deferred tax liabilities		(288	)		(288	)
Less: valuation allowance		(63,679	)		(62,494	)
Net deferred tax liability	$	(288	)	$	(288	)

The Company has no uncertain tax positions pursuant to ASC 740-10 for the years ended December 31, 2013, 2012 and 2011.