Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income tax expense is comprised of the following (in thousands):

	December 31,
	2019			2018
Federal:
Current	$	(1	)	$	334
Deferred		440			119
		439			453
State:
Current		91			85
Deferred		19			34
		110			119
	$	549		$	572

The provision for income taxes differs from the amount determined by applying the federal statutory tax rate to pre-tax income as a result of the following (in thousands):

	December 31,
	2019					2018
Income taxes at statutory rate	$	527		21.0	%	$	474		21.0	%
Increase (decrease) in taxes resulting from:
State income taxes, net of federal benefit		81		3.2	%		89		4.0	%
Deferred true-ups		(127	)	(5.1	)%		58		2.6	%
Provision-to-return		81		3.2	%		(19	)	(0.8	)%
Rate change		(42	)	(1.7	)%		—		—	%
Other		29		1.3	%		(30	)	(1.5	)%
	$	549		21.9	%	$	572		25.3	%

Deferred tax assets (liabilities) are as follows (in thousands):

	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	21		$	26
Allowance for doubtful accounts		81			53
Amortization - Intangibles		4			—
Charitable contributions		43			—
Accrued liabilities		7			—
Accrued vacation		76			78
Deferred buy-back asset		1,776			1,645
Deferred income		304			198
Right-of-use asset		91			—
Other		83			76
Gross deferred tax assets		2,486			2,076
Deferred tax liabilities:
Retainage		(518	)		(425	)
Deferred buy-back obligation		(1,421	)		(1,324	)
Fixed assets		(2,236	)		(1,667	)
Prepaids		(104	)		(78	)
Unrealized gain loss		(2	)		(9	)
Lease liability		(91	)		—
Gross deferred tax liabilities		(4,372	)		(3,503	)
Valuation allowance		—			—
Net deferred tax liability	$	(1,886	)	$	(1,427	)

As of December 31, 2019, the Company had approximately $2,490 of state NOL's available to offset future state taxable income. The state NOL's begin expiring at various times between 2028 and 2037.