INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

The income tax provision (benefit), in thousands, consists of the following for the years ended December 31, 2015 and 2014:

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



	2015			2014
Federal income tax at statutory rate	$	(595	)	$	(2,460	)
State and local income taxes, net of federal income tax effect	(77		)	(221		)
Permanent differences	—			—
Increase in deferred tax asset valuation allowance	716			3,035
Other differences	(31		)	(316		)
	$	13		$	38

Significant components of the Company’s deferred tax liabilities and assets, in thousands, as of December 31, 2015 and 2014 are as follows:



	2015			2014
Deferred tax liabilities
Property and equipment	$	(1,459	)	$	(2,131	)
Gross deferred tax liabilities	(1,459		)	(2,131		)
Deferred tax assets
Intangibles and goodwill	2,286			2,535
Accrued property taxes	13			13
Allowance for doubtful accounts	14			41
Inventory capitalization	63			83
Stock options	1,147			1,084
Federal net operating loss carry forward	4,176			3,920
State net operating loss carry forward	1,758			1,659
State recycling equipment tax credit carry forward	4,598			4,604
Interest rate swap	—			4
Inventory valuation reserve	78			—
Accrued expenses	77			223
Other	11			11
Gross deferred tax assets	14,221			14,177
Valuation allowance	(12,665		)	(11,949		)
Net deferred tax assets	$	97		$	97

The recorded valuation allowance, in thousands, consisted of the following at December 31, 2015 and 2014:



	Year Ended December 31,
	2015		2014
Valuation allowance, beginning of year	$	11,949	$	8,914
Increase in deferred tax asset valuation allowance	716		3,035
Valuation allowance, end of year	$	12,665	$	11,949