INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

The income tax provision (benefit), in thousands, consists of the following for the years ended December 31, 2014 and 2013:

A reconciliation of income taxes at the statutory rate to the reported provision (benefit), in thousands, is as follows:



	2014			2013
Federal income tax at statutory rate	$	(2,460	)	$	(4,225	)
State and local income taxes, net of federal income tax effect	(221		)	(371		)
Permanent differences	—			1,140
Increase in deferred tax asset valuation allowance	3,035			4,752
Other differences	(316		)	92
	$	38		$	1,388

Significant components of the Company’s deferred tax liabilities and assets, in thousands, as of December 31, 2014 and 2013 are as follows:



	2014			2013
Deferred tax liabilities
Property and equipment	$	(2,131	)	$	(2,735	)
Gross deferred tax liabilities	(2,131		)	(2,735		)
Deferred tax assets
Intangibles and goodwill	2,535			2,919
Accrued property taxes	13			10
Allowance for doubtful accounts	41			43
Inventory capitalization	83			120
Stock options	1,084			62
Federal net operating loss carry forward	3,920			2,413
State net operating loss carry forward	1,659			1,521
State recycling equipment tax credit carry forward	4,604			4,617
Interest rate swap	4			30
Accrued expenses	223			—
Other	11			11
Gross deferred tax assets	14,177			11,746
Valuation allowance	(11,949		)	(8,914		)
Net deferred tax assets	$	97		$	97

The recorded valuation allowance, in thousands, consisted of the following at December 31, 2014 and 2013:



	Year Ended December 31,
	2014		2013
Valuation allowance, beginning of year	$	8,914	$	4,162
Increase in deferred tax asset valuation allowance	3,035		4,752
Valuation allowance, end of year	$	11,949	$	8,914