INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax income from continuing operations as a result of the following for the years ended December 31, 2016 and 2015:



	December 31, 2016			December 31, 2015
Statutory tax on book income	$	(1,344,000	)	$	(7,656,000	)
Permanent differences	32,000			33,000
Net operating loss utilization	—			—
Change in valuation allowance	(9,306,753		)	13,114,000
Other	10,501,107			(185,000		)
Income tax expense (benefit)	$	(117,646	)	$	5,306,000

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax (benefit) expense for the years ended December 31, 2016 and 2015 are as follows:



	December 31, 2016		December 31, 2015
Current federal tax (expense)/benefit	$	117,646	$	—
Deferred federal tax (expense)/benefit	—		(5,306,000		)
Total federal tax (expense)/benefit	$	117,646	$	(5,306,000	)

Schedule of Deferred Tax Assets and Liabilities

The cumulative tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015 are presented below:



	December 31, 2016			December 31, 2015
Deferred tax assets:
Alternative minimum tax credits	$	—		$	—
Accrued compensation	464,000			393,000
Intangible Assets	1,990,000			232,000
Bad debt reserve	560,000			668,000
Contribution carryover	67,000			51,000
Net operating loss carry forwards	15,009,000			24,150,000
Less valuation allowance	(14,814,000		)	(24,120,753		)
Total deferred tax assets	$	3,276,000		$	1,373,247

	December 31, 2016			December 31, 2015
Deferred tax liabilities:
Gain on purchase	$	—		$	(108,247	)
Contingent liability	—			—
Accelerated tax depreciation	(3,276,000		)	(1,265,000		)
Impairment Expense	—			—
Other - income from partnership	—			—
Net deferred tax liabilities	$	(3,276,000	)	$	(1,373,247	)

Net Deferred tax assets and liabilities	$	—		$	—