INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

The income tax provision (benefit), in thousands, consists of the following for the years ended December 31, 2018 and 2017:

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


	2018			2017
Federal income tax at statutory rate	$	(71	)	$	(380	)
State and local income taxes, net of federal income tax effect	2			(52		)
Permanent differences	2			2
Tax reform legislation	920			1,736
Decrease in deferred tax asset valuation allowance	(779		)	(1,258		)
Other differences	(61		)	(36		)
	$	13		$	12

Significant components of the Company’s deferred tax liabilities and assets, in thousands, as of December 31, 2018 and 2017 are as follows:


	2018			2017
Deferred tax liabilities
Property and equipment	$	—		$	(300	)
Gross deferred tax liabilities	—			(300		)
Deferred tax assets
State recycling equipment tax credit carry forward	4,586			4,590
Federal net operating loss carry forward	2,980			3,901
State net operating loss carry forward	1,791			1,787
Intangibles and goodwill	1,014			1,178
Stock options	441			424
Accrued expenses	119			160
Interest expense limitation	47			—
Property and equipment	38			—
Inventory capitalization	23			72
Allowance for doubtful accounts	16			16
Accrued property taxes	6			6
Other	2			8
Gross deferred tax assets	11,063			12,142
Valuation allowance	(11,036		)	(11,815		)
Net deferred tax assets	$	27		$	27

The recorded valuation allowance, in thousands, consisted of the following at December 31, 2018 and 2017:


	Year Ended December 31,
	2018			2017
Valuation allowance, beginning of year	$	11,815		$	13,073
Decrease in deferred tax asset valuation allowance	(779		)	(1,258		)
Valuation allowance, end of year	$	11,036		$	11,815