Income Taxes

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 8 - INCOME TAXES

As of June 30, 2017, the Company had utilized all net operating loss carry forwards for income tax reporting purposes that were previously available to be offset against future taxable income through 2034. The net deferred tax liability as of June 30, 2017 was $354,000 and is reflected in long-term liabilities in the accompanying balance sheet.

The Company is subject to income taxes in the U.S. federal jurisdiction, various state jurisdictions and certain other jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the relaxed tax laws and regulations and require significant judgement to apply. The Company is not subject to U.S. federal, state and local tax examinations by tax authorities for the years 2013 and prior.

If the Company were to subsequently record an unrecognized tax benefit, associated penalties and tax related interest expense would be recorded as a component of income tax expense.

The provision for income taxes for the six- months ended June 30, 2017 and 2016 was calculated based on the estimated annual effective rate of 34% and 34 % for the full 2017 and 2016 calendar years respectively, adjusted for an income tax benefit from the expected utilization of net operating loss carryforwards.

The income tax provision for the three- month period ended June 30, 2017 and 2016 consists of:

	3 months ended June 30, 2017		3 months ended June 30, 2016
Current:
Federal	$	392,000	$	-
Deferred:
Federal		10,000		12,600
Income Tax Provision	$	402,000	$	12,600

The income tax provision for the six-month period ended June 30, 2017 and 2016 consists of:

	6 months ended June 30, 2017		6 months ended June 30, 2016
Current:
Federal	$	392,000	$	-
Deferred:
Federal		138,000		12,600
Income Tax Provision	$	530,000	$	12,600