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Income Taxes
3 Months Ended
Mar. 31, 2015
Income Taxes  
Income Taxes

5.Income Taxes. For the three months ended March 31, 2015, the Company recorded income tax expense of $75,000, or 43.9% of income before taxes. For the three months ended March 31, 2014, the Company recorded income tax expense of $58,000, or 33.5% of income before taxes. The income tax provision for the three months ended March 31, 2015 and 2014 is comprised of federal and state taxes. The primary differences between the Company’s March 31, 2015 and 2014 effective tax rates and the statutory federal rate are expenses related to stock-based compensation and nondeductible meals and entertainment. The Company reassesses its effective rate each reporting period and adjusts the annual effective rate if deemed necessary, based on projected annual taxable income

 

As of March 31, 2015 and December 31, 2014, the Company has unrecognized tax benefits totaling $486,000, including interest, which relates to state nexus issues. The amount of the unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods is $486,000. Due to the current statute of limitations regarding the unrecognized tax benefits, the unrecognized tax benefits and associated interest is not expected to change significantly in 2015.