Note 11 - Income Taxes

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

11. INCOME TAXES

GAAP prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

The Company’s provision for income taxes is calculated using the liability method. Deferred income taxes are provided for all temporary differences between the financial statement and income tax bases of assets and liabilities using tax rates enacted by law or regulation.

Reconciliations between the total income tax expense (benefit) and the amount computed using the statutory federal rate of 21% for the years ended December 31, 2022 and 2021 were as follows:

	2022			2021
	(in thousands)
Federal income tax expense (benefit) at statutory rate	$	375		$	(718	)
Adjusted for:
Permanent differences		86			102
Valuation allowance		(461	)		616
Income tax expense (benefit)	$	-		$	-

Deferred tax assets were comprised of the following temporary differences as of December 31, 2022 and 2021:

	2022			2021
	(in thousands)
Net operating loss and tax credit carryforwards	$	23,980		$	25,132
Joint venture and other investments		(27	)		(27	)
Accrued retirement benefits		1,149			2,545
Property net book value		2,960			2,862
Deferred revenue		1,016			1,083
Reserves and other		(50	)		(5	)
Total deferred tax assets		29,028			31,590
Valuation allowance		(29,028	)		(31,590	)
Net deferred tax assets	$	-		$	-

Valuation allowances have been established to reduce future tax benefits not expected to be realized. The change in the deferred tax asset related to accrued retirement benefits and the valuation allowance includes the pension adjustment included in accumulated other comprehensive loss, which is not included in the current provision. Net Operating Loss (NOL) carryforwards created in tax years beginning after December 31, 2017 are limited by the TCJA. The Company had approximately $67.6 million in federal NOL carry forwards at December 31, 2022, that expire from 2028 through 2034. The Company had approximately $81.7 million in state NOL carry forwards at December 31, 2022, that expire from 2028 through 2034. The Company had approximately $5.7 million in federal and state NOL carry forwards at December 31, 2022 that do not expire.