Income Taxes

The components of the income tax provision are as follows:



	2015		2014		2013
Federal - current	$	—	$	—	$	—
State and local - current	12		23		19
Federal - deferred	$	6	$	—	$	—
State and local - deferred	$	1	$	—	$	—
Total income tax expense	19		23		19

The following reconciles the “statutory” federal income tax rate to the effective income tax rate:



	2015		2014		2013
Computed "expected" income tax benefit	(35	)%	(35	)%	(35	)%
Reduction (increase) in income tax benefit and increase (reduction) in income tax expense resulting from:
State tax, net of federal benefit	—		—		—
Change in federal valuation allowance	35		35		35
Other	—		—		—
Effective income tax rate	—	%	—	%	—	%

The tax effects of temporary differences that give rise to the deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows:



	2015			2014
Deferred tax assets:
Receivable allowance	$	43		$	34
Goodwill	—			347
Accumulated depreciation	214			—
Restructuring accrual	376			45
Intangible assets	484			219
Compensation expense	417			690
Federal net operating loss carryforward	58,532			55,865
State net operating loss carryforward	6,040			6,502
Accrued expenses	344			17
Deferred rent	102			102
Deferred revenue	343			—
Other	43			18
Gross deferred tax assets	$	66,938		$	63,839
Valuation allowance	(66,929		)	(63,817		)
	$	9		$	22
Deferred tax liabilities:
Impairment and accumulated depreciation	—			(22		)
Interest	(9		)	—
Goodwill	(7		)	—
Gross deferred tax liabilities	(16		)	(22		)
Net deferred tax assets	$	(7	)	$	—

The Company has significant deferred tax assets attributable to tax deductible intangibles and federal and state net operating loss carryforwards, which may reduce taxable income in future periods. Based on the cumulative tax and operating losses, the lack of taxes in the carryback period, and the uncertainty surrounding the extent or timing of future taxable income, the Company believes it is not more likely than not that it will realize the tax benefits of its deferred tax assets. Accordingly, the Company continues to record a full valuation allowance on its net deferred tax assets as of December 31, 2015 and 2014, with the exception of deferred income tax on the liabilities of certain indefinite-lived intangibles.

There was no current federal tax expense recorded in the years ended December 31, 2015, 2014 and 2013. The current state tax expense recorded for the years ended December 31, 2015, 2014 and 2013 reflects a state tax liability to one state. Deferred tax expense is recorded as of December 31, 2015. There was no deferred tax expense recorded for years ended December 31, 2014 and December 31, 2013.

The tax years 2012 through 2015 may be subject to federal examination and assessment. Tax years from 2007 through 2011 remain open solely for purposes of federal and certain state examination of net operating loss and credit carryforwards. State income tax returns may be subject to examination for tax years 2011 through 2015, depending on state tax statute of limitations.

As of December 31, 2015, the Company had U.S. federal and state net operating loss carryforwards of approximately $167.2 million and $149.8 million, respectively. The net operating loss carryforwards, if not utilized, will expire in the years 2016 through 2035.

Since the Company had changes in ownership during 2015, additional limitations under IRC Section 382 of the Internal Revenue Code of 1986 may apply to the future utilization of certain tax attributes including net operating loss (“NOL”) carryforwards, other tax carryforwards, and certain built-in losses. The Company has not yet completed its analysis of any impact of these ownership changes. No tax benefit has been reported since a full valuation allowance offsets these tax attributes. However, limitations could apply even if the valuation allowance was released.