INCOME TAXES

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

Note 8 — Income Taxes

Through December 31, 2015, the Company was not subject to income taxes in any jurisdiction because it was a limited liability company taxed as a partnership. Each member of the Company was responsible for the tax liability, if any, related to their proportionate share of the Company’s taxable income. Effective January 1, 2016, the Company converted to a C-corporation and is subject to corporate income taxes.

The Company did not recognize income tax expense for the three and nine months ended September 30, 2016 since it does not expect to have taxable income in 2016.

There are no uncertain tax positions that would require recognition in the financial statements. If the Company incurs an income tax liability in the future, interest on any income tax liability would be reported as interest expense and penalties on any income tax liability would be reported as income taxes. The Company’s conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations and interpretations thereof as well as other factors.

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

As of September 30, 2016, the tax years 2013, 2014 and 2015 were subject to examination.