Note 14 - Income Taxes	9 Months Ended
Sep. 30, 2020
Notes to Financial Statements
Income Tax Disclosure [Text Block]	14. Income taxes The Company recognized an income tax expense of $157,000 for the three months ended September 30, 2020, representing an effective income tax rate of 270.7%. Intraperiod tax allocation rules require the Company to allocate the provision for income taxes between continuing operations and other categories of earnings, such as discontinued operations and other comprehensive income. In periods in which the Company has a year-to-date pre-tax loss from continuing operations and pre-tax income in other categories of earnings, it must allocate the tax provision to the other categories of earnings. The Company’s year-to-date gain recognized in other comprehensive income decreased during the three months ended September 30, 2020. As a result, the Company recorded a discrete benefit in other comprehensive income related to unrealized gains and losses on foreign currency translation adjustments in the U.K and a tax expense for the three months ended September 30, 2020 through continuing operations. The Company’s effective income tax rate for the three months ended September 30, 2020 differs from the Company’s U.K statutory rate, primarily because the majority of its U.K. loss cannot be benefited due to the full valuation allowance position. The Company recorded an income tax expense of $383,000 for the three months ended September 30, 2019. For the nine months ended September 30, 2020, the Company recognized an income tax expense of $230,000 representing an effective income tax rate of (1.6)%. The income tax expense for the nine months ended September 30, 2020 was primarily related to discrete adjustments recorded in the period for an increase in valuation allowance on certain U.S state attributes and the write down of prepaid taxes, partially offset by the tax benefit recorded through continuing operations as a result of the intraperiod tax allocation rules. The Company’s effective income tax rate for the nine months ended September 30, 2020 differs from the Company’s U.K statutory rate, primarily because the majority of its U.K. loss cannot be benefited due to the full valuation allowance position. The Company recorded an income tax benefit of $1.2 million for the nine months ended September 30, 2019. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, was enacted in response to the COVID-19 pandemic. The CARES Act, among other provisions, permits carryovers and carrybacks of net operating losses generated in 2018 through 2020 to offset 100% of taxable income. In addition, the CARES Act allows net operating losses incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company continues to evaluate the impact of the CARES Act, but at present does not expect it to have a material impact on its financial statements.

Note 14 - Income Taxes

9 Months Ended

Sep. 30, 2020

14. Income taxes

The Company recognized an income tax expense of $157,000 for the three months ended September 30, 2020, representing an effective income tax rate of 270.7%. Intraperiod tax allocation rules require the Company to allocate the provision for income taxes between continuing operations and other categories of earnings, such as discontinued operations and other comprehensive income. In periods in which the Company has a year-to-date pre-tax loss from continuing operations and pre-tax income in other categories of earnings, it must allocate the tax provision to the other categories of earnings. The Company’s year-to-date gain recognized in other comprehensive income decreased during the three months ended September 30, 2020. As a result, the Company recorded a discrete benefit in other comprehensive income related to unrealized gains and losses on foreign currency translation adjustments in the U.K and a tax expense for the three months ended September 30, 2020 through continuing operations. The Company’s effective income tax rate for the three months ended September 30, 2020 differs from the Company’s U.K statutory rate, primarily because the majority of its U.K. loss cannot be benefited due to the full valuation allowance position. The Company recorded an income tax expense of $383,000 for the three months ended September 30, 2019.

For the nine months ended September 30, 2020, the Company recognized an income tax expense of $230,000 representing an effective income tax rate of (1.6)%. The income tax expense for the nine months ended September 30, 2020 was primarily related to discrete adjustments recorded in the period for an increase in valuation allowance on certain U.S state attributes and the write down of prepaid taxes, partially offset by the tax benefit recorded through continuing operations as a result of the intraperiod tax allocation rules. The Company’s effective income tax rate for the nine months ended September 30, 2020 differs from the Company’s U.K statutory rate, primarily because the majority of its U.K. loss cannot be benefited due to the full valuation allowance position. The Company recorded an income tax benefit of $1.2 million for the nine months ended September 30, 2019.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, was enacted in response to the COVID-19 pandemic. The CARES Act, among other provisions, permits carryovers and carrybacks of net operating losses generated in 2018 through 2020 to offset 100% of taxable income. In addition, the CARES Act allows net operating losses incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company continues to evaluate the impact of the CARES Act, but at present does not expect it to have a material impact on its financial statements.

- 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.

+ References + Details