Note 8 - Income Taxes

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

8

– Income Taxes

Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period.

  The provision for income taxes for the

three

months ended

June 30, 2017

and

2016

differs from the amount that would be provided by applying the statutory U.S. federal income tax rate of

34

%

to pre-tax income primarily because of state income taxes and estimated permanent differences.

The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but

not

limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent and temporary differences, and the likelihood of recovering deferred tax assets generated in the current year.

  The accounting estimates used to compute the provision for income taxes

may

change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes.

During the

three

and

six

months ended

June 30, 2017,

the Company recorded net income tax benefit of

$1.0

million and

$992,000,

respectively, primarily due to our net operating losses during the

three

and

six

months ended

June 30, 2017.

As of

June 30, 2017,

the Company had recorded a deferred tax asset, net, of approximately

$547,000.