Note 10 - Income Taxes

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

10

.

Income Taxes 

Prior to its Reorganization, the Company was a limited liability company and not subject to federal income tax or state income tax. Accordingly, no provision for federal or state income taxes was recorded as the Company’s equity holders were responsible for income taxes. Following the Reorganization and IPO in

February

2017,

the Company became subject to federal and state income taxes.

The Company estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which the Company operates. Statutory tax rate changes and other significant or unusual items are recognized as discrete items in the quarter in which they occur. The Company recorded

no

income tax benefit for the

three

months ended

March

31,

2017

because the Company expects to incur a tax loss in the current year.  This tax loss is expected to result in a net operating loss carryforward at year-end; which is expected to be fully offset by a valuation allowance.

As of

March

 

31,

2017,

the Company has not recorded a reserve for any uncertain tax positions.