Note 12 - Income Taxes

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

12

 — Income Taxes

Income tax (expense) benefit for the period from

January

1,

2016

through

May

4,

2016,

the period from

May

5,

2016

through

December

31,

2016,

and for the year ended

December

31,

2015,

consisted of the following:

	Period from May 5, 2016 through December 31, 2016			Period from January 1, 2016 through May 4, 2016			Year Ended December 31, 2015
	Successor			Predecessor			Predecessor
Current:
Federal	$	-		$	-		$	-
State		-			-			-
Deferred:
Federal		1,989,763			(9,836,756	)		29,084,623
State		236,490			(2,237,382	)		3,614,773
Change in valuation allowance		(2,226,253	)		12,074,138			(32,610,383	)
Total Benefit for Income Taxes	$	-		$	-		$	89,013

Significant components of the Company's deferred tax assets and liabilities consisted of the following at

December

31,

2016

and 

2015:

	December 31, 2016			December 31, 2015
	Successor			Predecessor
Deferred tax assets:
Stock-based compensation	$	29,379		$	6,238,000
Tax credits		3,484,799			3,339,000
Deferred revenue		-			462,000
Start-up and organizational costs		270,652			275,000
Tax deductible Goodwill		354,831			404,000
Property and equipment		163,755			207,000
Other		224,910			283,000
Total deferred tax assets		4,528,326			11,208,000
Deferred tax liabilities:
Intangible Assets		(2,374,950	)		(114,000	)
Total deferred tax liabilities		(2,374,950	)		(114,000	)
Net deferred tax assets, excluding net operating loss carryforwards		2,153,376			11,094,000
Net operating loss carryforwards		50,713,527			61,076,000
		52,866,903			72,170,000
Less valuation allowance		(52,866,903	)		(72,170,000	)
Total deferred tax assets (liabilities)	$	-		$	-

The following table presents a reconciliation between the U.S. federal statutory income tax rate and the Company's effective tax rate:

	Period from May 5, 2016 through December 31, 2016			Period from January 1, 2016 through May 4, 2016			Year Ended December 31, 2015
	Successor			Predecessor			Predecessor
U.S. federal statutory income tax		35.0			35.0	%		35.0	%
State and local income tax, net of benefits		4.2			4.2	%		4.8	%
Fair value of derivatives		-			-			22.4	%
Other		(0.1	)%		3.7	%		(0.4	)%
Valuation allowance for deferred income tax assets		(39.1	)%		(42.9	)%		(61.6	)%
Effective income tax rate		-	%		-	%		0.2	%

The Company had loss carry-forwards of approximately

$163.2

million as of

December

31,

2016,

that

may

be offset against future taxable income. The carry-forwards will begin to expire in

2020.

Use of these carry-forwards

may

be subject to annual limitations based upon previous significant changes in stock ownership.

The Company does

not

believe that it has any uncertain income tax positions.