Income Taxes

9 Months Ended

Sep. 30, 2020

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 September 30, 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 nine months ended September 30, 2020 and 2019.

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


	September 30, 2020		December 31, 2019
Deferred tax assets:
Stock compensation	$	96	$	114
Accrued expenses	538		669
Net operating losses	34		357
Lease liabilities	901		955
Front Yard common stock	615		—
Other	146		48
Gross deferred tax assets	2,330		2,143
Deferred tax liability:
Right-of-use lease assets	854		922
Front Yard common stock	—		42
Depreciation	—		4
Gross deferred tax liabilities	854		968
Net deferred tax assets before valuation allowance	1,476		1,175
Valuation allowance	(804)		(491)
Deferred tax asset, net	$	672	$	684

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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