Income Taxes

We are domiciled in the USVI and are obligated to pay taxes to the USVI on our income. We applied for tax benefits from the USVI Economic Development Commission and received our certificate of benefits (the “Certificate”), effective as of February 1, 2013. Pursuant to the Certificate, as long as we comply with its provisions, we will receive a 90% tax reduction on our USVI-sourced income taxes until 2043.

As of March 31, 2020 and December 31, 2019, we accrued no interest or penalties associated with any unrecognized tax benefits, nor did we recognize any interest expense or penalties during the three months ended March 31, 2020 and 2019.

The following table sets forth the components of our deferred tax assets:



	March 31, 2020			December 31, 2019
Deferred tax assets:
Stock compensation	$	79		$	114
Accrued expenses	577			669
Net operating losses	357			357
Lease liabilities	915			955
Front Yard common stock	48			—
Other	49			48
Gross deferred tax assets	2,025			2,143
Deferred tax liability:
Right-of-use lease assets	878			922
Front Yard common stock	—			42
Depreciation	2			4
Gross deferred tax liabilities	880			968
Net deferred tax assets before valuation allowance	1,145			1,175
Valuation allowance	(442		)	(491		)
Deferred tax asset, net	$	703		$	684