Income Taxes (Tables)

6 Months Ended

Jun. 30, 2015

Income Taxes [Abstract]

Components of income tax expense (benefit)

The components of income tax expense (benefit) are as follows:

(in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Federal – current	$	-		$	243		$	-		$	481
State – current		37			412			67			824
Total current		37			655			67			1,305
Federal – deferred		(338	)		(505	)		(708	)		(962	)
State - deferred		-			-			-			-
Change in valuation allowance		338			505			708			962
Total deferred		-			-			-			-
Income tax expense (benefit)	$	37		$	655		$	67		$	1,305

Income tax reconciliation

The components of pretax income (loss) and the difference between income taxes computed at the statutory federal rate and the provision for income taxes are as follows:

(in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Income (loss) before income taxes	$	(683	)	$	(1,442	)	$	(1,739	)	$	(2,747	)
Tax expense (benefit):
Tax at statutory federal rate	$	(338	)	$	(505	)	$	(708	)	$	(962	)
State income taxes		37			55			67			110
Federal interest		-			243			-			481
State interest		-			357			-			714
Permanent items		-			-			-			-
Other		-			-			-			-
Change in valuation allowance		338			505			708			962
Income tax expense (benefit)	$	37		$	655		$	67		$	1,305

Calculation of net federal uncertain tax position reserve

A roll forward of the uncertain tax positions reserve, excluding accrued federal and state interest is as follows:

(in thousands)	June 30, 2015		December 31, 2014
Uncertain tax position reserve excluding accrued interest, at beginning of period	$	-	$	34,157
Federal uncertain tax position reserve excluding accrued interest		-		(18,429	)
State uncertain tax position reserve excluding accrued interest		-		(15,728	)
Uncertain tax position reserve excluding accrued interest, at end of period	$	-	$	-

Interest expense related to the uncertain tax positions

The interest expense related to the uncertain tax positions is as follows:

(in thousands)	Three Months Ended				Six Months Ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Federal	$	-	$	243	$	-	$	481
State jurisdictions		-		357		-		714
Interest expense - taxes	$	-	$	600	$	-	$	1,195

Alternate minimum tax credit carryforwards

AMT Credits available which are not subject to expiration are as follows:

	Amount
AMT Credits	$	21,000,000

Calculation of net deferred tax assets from NOL carryforwards

The Company has calculated a net deferred tax asset arising primarily from NOL carryforwards and AMT Credits as follows:

	June 30, 2015			December 31, 2014
Net deferred tax asset	$	32,900,000		$	32,900,000
Valuation allowance		(32,900,000	)		(32,900,000	)
Net deferred tax asset recognized	$	-		$	-

Federal [Member]

Operating Loss Carryforwards [Line Items]

Net operating loss carryforwards

The federal NOL carryforwards as of June 30, 2015 are as follows:

Tax Year Originating	Tax Year Expiring	Amount
2006	2026	$	500,000
2007	2027		12,700,000
2008	2028		4,600,000
2009	2029		2,400,000
2010	2030		1,900,000
2011	2031		1,900,000
2013	2033		3,700,000
2014	2034		4,900,000
		$	32,600,000

State [Member]

Operating Loss Carryforwards [Line Items]

Net operating loss carryforwards

The state NOL carryforwards as of June 30, 2015,are as follows:

Tax Year Originating	Tax Year Expiring	Amount
2011	2031	$	1,900,000
2013	2033		3,400,000
2014	2034		4,700,000
		$	10,000,000