Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of income tax expense (benefit)

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

(in thousands)	Year Ended December 31, 2015			Year Ended December 31, 2014
Federal - current	$	-		$	(19,179	)
State - current		140			(16,683	)
Total current		140			(35,862	)
Federal - deferred		(1,365	)		(10,200	)
State - deferred		(205	)		(324	)
Change in valuation allowance		1,570			10,524
Total deferred		-			-
Income tax expense (benefit)	$	140		$	(35,862	)

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)	Year Ended December 31, 2015			Year Ended December 31, 2014

Income (loss) before income taxes	$	(4,485	)	$	(21,441	)
Tax expense (benefit) :
Tax at statutory federal rate	$	(1,570	)	$	(7,504	)
State income taxes		140			183
Federal uncertain tax position reversal		–			(19,179	)
State uncertain tax position reversal		–			(16,866	)
Permanent items		–			(3,020	)
Other		-			-
Change in valuation allowance		1,570			10,524
Income tax expense (benefit)	$	140		$	(35,862	)

A reconciliation of the United States federal statutory rate to the Company's effective income tax rate is as follows:

	Year Ended December 31, 2015		Year Ended December 31, 2014
Tax at statutory federal rate	35.0	%	35.0		%
State income taxes	(3.1)		(0.9)
Federal uncertain tax position reversal	-		89.5
State uncertain tax position reversal	-		78.7
Permanent difference, tax credits and other adjustments	-		14.1
Other	-		-
Change in valuation allowance	(35.0)		(49.1)
Effective income tax rate	(3.1)	%	167.3	)	%

Uncertain tax positions tax reserve

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

(in thousands)	December 31, 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	$	-	$	-

Alternate minimum tax credit carryforwards

In addition, the Company has alternate minimum tax credit carryforwards ("AMT Credits"), which are not subject to expiration, as follows:

		Amount
AMT Credits		$	21,000,000

Calculation of net deferred tax assets from NOL carryforwards

The federal NOL carryforwards as of December 31, 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
2015	2035		2,700,000
		$	35,300,000

The state NOL carryforwards as of December 31, 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
2015	2035		2,600,000
		$	12,600,000

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

	December 31, 2015			December 31, 2014
Net deferred tax asset	$	34,500,000		$	32,900,000
Valuation allowance		(34,500,000	)		(32,900,000	)
Net deferred tax asset recognized	$	-		$	-

Federal -IRS [Member]

Operating Loss Carryforwards [Line Items]

Net operating loss carryforwards

The federal NOL carryforwards as of December 31, 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
2015	2035		2,700,000
		$	35,300,000

State and Local Jurisdiction [Member]

Operating Loss Carryforwards [Line Items]

Net operating loss carryforwards

The state NOL carryforwards as of December 31, 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
2015	2035		2,600,000
		$	12,600,000