Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8. Income Taxes

The federal and state provision (benefit) for income taxes was $0.0 million for the years ended December 31, 2021 and 2020.

The total income tax provision (benefit) differed from the amounts computed by applying the U.S. federal income tax rate of 21.0% for the years ended December 31, 2021 and 2020 to net income (loss) before income taxes as a result of the following:

	Year Ended December 31,
	2021			2020
Statutory tax expense (benefit)		21.0	%		(21.0	)%
Increase (decrease) in taxes resulting from:
Nondeductible expenses		3.3			4.1
Valuation allowance		(24.3	)		16.9
		0.0	%		0.0	%

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets were as follows: 

	As of December 31,
	2021			2020
	(In thousands)
Deferred tax asset:
Carrying values of ownership interests and other holdings	$	31,985		$	38,361
Tax loss and credit carryforwards		77,045			76,023
Disallowed interest carryforwards		7,120			7,292
Accrued expenses		24			497
Stock-based compensation		268			302
Other		136			482
		116,578			122,957
Valuation allowance		(116,578	)		(122,957	)
Net deferred tax asset	$	—		$	—

As of December 31, 2021, the Company and its subsidiaries had federal net operating and capital loss carryforwards for tax purposes of approximately $367 million, of which approximately $52 million have an indefinite life. These carryforwards expire as follows: 

	Total
	(In thousands)
2022	$	47,137
2023		47,150
2024		50,140
2025		17,266
2026 and thereafter		152,923
	$	314,616

In assessing the recoverability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has determined that it is more likely than not that certain future tax benefits may not be realized as a result of current and future income. Accordingly, a valuation allowance has been recorded against substantially all of the Company’s deferred tax assets.

The Company recognizes in its Consolidated Financial Statements the impact of a tax position if that position is more likely than not to be sustained upon examination, based on the technical merits of the position. All uncertain tax positions relate to unrecognized tax benefits that would impact the effective tax rate when recognized.

The Company does not expect any material increase or decrease in its income tax expense, in the next twelve months, related to examinations or changes in uncertain tax positions.

There were no changes in the Company’s uncertain tax positions for the years ended December 31, 2021 and 2020.

The Company files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. Tax years 2015 and forward remain open for examination for federal tax purposes and the Company’s more significant state tax jurisdictions. To the extent utilized in future years’ tax returns, net operating loss carryforwards at December 31, 2021 will remain subject to examination until the respective tax year is closed. The Company recognizes penalties and interest accrued related to income tax liabilities in income tax benefit (expense) in the Consolidated Statements of Operations.