Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Income Tax Expense (Benefit)

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

(in thousands)	Year Ended December 31, 2016			Year Ended December 31, 2015
Federal - current	$	-		$	-
State - current		(142	)		140
Total current		(142	)		140
Federal - deferred		(1,752	)		(1,365	)
State - deferred		(105	)		(205	)
Change in valuation allowance		1,857			1,570
Total deferred		-			-
Income tax expense (benefit)	$	(142	)	$	140

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, 2016			Year Ended December 31, 2015

Income (loss) before income taxes	$	(3,361	)	$	(4,485	)
Tax expense (benefit) :
Tax at statutory federal rate	$	(1,176	)	$	(1,570	)
State income taxes		(142	)		140
Permanent items		–			–
Other		(681	)		-
Change in valuation allowance		1,857			1,570
Income tax expense (benefit)	$	(142	)	$	140

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

	Year Ended December 31, 2016		Year Ended December 31, 2015
Tax at statutory federal rate	35.0	%	35.0	%
State income taxes	4.2		(3.1)
Permanent difference, tax credits and other adjustments	-		-
Other	20.3		-
Change in valuation allowance	(55.3)		(35.0)
Effective income tax rate	4.2	%	(3.1)	%

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 a deferred tax asset arising primarily from NOL carryforwards and AMT credits as follows:

	December 31, 2016			December 31, 2015
Net deferred tax asset	$	36,400,000		$	34,500,000
Valuation allowance		(36,400,000	)		(34,500,000	)
Net deferred tax asset recognized	$	-		$	-

Federal [Member]

Operating Loss Carryforwards [Line Items]

Net Operating Loss Carryforwards

The federal NOL carryforwards as of December 31, 2016 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		4,200,000
2016	2036		2,600,000
		$	39,400,000

State [Member]

Operating Loss Carryforwards [Line Items]

Net Operating Loss Carryforwards

The state NOL carryforwards as of December 31, 2016 are as follows:

Tax Year Originating	Tax Year Expiring	Amount

2011	2031	$	1,800,000
2013	2033		2,700,000
2014	2034		4,200,000
2015	2035		4,100,000
2016	2036		2,800,000
		$	15,600,000