11.	INCOME TAXES

Components of the provision for income taxes from continuing operations were as follows:

	Year Ended December 31,
	2016		2015		2014
Current:
Federal	$	-	$	-	$	-
State		200		242		200
Total		200		242		200

Deferred:
Federal		-		-		(1,420	)
State		-		-		(259	)
Total		-		-		(1,679	)

Total provision (benefit)	$	200	$	242	$	(1,479	)

The components of the deferred tax assets are as follows:

	At December 31,
	2016			2015
Noncurrent deferred tax assets (liabilities)
Allowance for bad debts	$	5,904		$	5,617
Accrued rent		3,191			2,952
Accrued bonus		1,429			-
Accrued benefits		198			-
Stock-based compensation		557			498
Depreciation		20,372			14,941
Goodwill		1,959			(380	)
Other intangibles		562			274
Pension plan liabilities		2,142			2,215
Net operating loss carryforwards		17,846			14,765
Sale leaseback-deferred gain		-			2,629
AMT credit		424			424
Total noncurrent deferred tax assets		54,584			43,935
Less valuation allowance		(54,584	)		(43,935	)
Noncurrent deferred tax assets, net of valuation allowance	$	-		$	-

Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence was the cumulative losses incurred by the Company in recent years.

On the basis of this evaluation the Company believes it is not more likely than not that it will realize its net deferred tax assets. As a result, as of December 31, 2016 and 2015, the Company has recorded a valuation allowance of $54.6 million and $43.9 million, respectively, against its net deferred tax assets.

The difference between the actual tax provision and the tax provision that would result from the use of the Federal statutory rate is as follows:

	Year Ended December 31,
	2016					2015					2014
(Loss) gain from continuing operations before taxes	$	(4,298	)			$	383				$	(27,028	)

Expected tax benefit	$	(1,504	)	35.0	%	$	134		35.0	%	$	(9,460	)	35.0	%
State tax benefit (net of federal)		200		(4.7	)		242		63.2			(43	)	0.2
Valuation allowance		1,394		(32.4	)		(274	)	(71.5	)		7,876		(29.1	)
Other		110		(2.6	)		140		36.5			148		(0.6	)
Total	$	200		-4.7	%	$	242		63.2	%	$	(1,479	)	5.5	%

As of December 31, 2016 and 2015, the Company has NOL carryforwards of $39.7 million and $32.6 million, respectively, which, if unused, will expire beginning in 2027 and ending in 2036. Utilization of the NOL carryforwards may be subject to a substantial limitation due to ownership change limitations that may occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as similar state and foreign provisions. These ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders or public groups.

The following table summarizes the activity related to the Company’s uncertain tax positions:

	Year Ended December 31,
	2016		2015		2014
Balance at January 1,	$	-	$	-	$	-
Decrease for tax positions of prior years		-		-		-
Increase for tax positions of current year		-		-		-
Balance at December 31,	$	-	$	-	$	-

As of December 31, 2016, 2015 and 2014, the Company no longer has any liability for uncertain tax positions.

The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states. The Company is no longer subject to U.S. federal income tax examinations for years before 2014 and, generally, is no longer subject to state and local income tax examinations by tax authorities for years before 2011.