XML 60 R13.htm IDEA: XBRL DOCUMENT v3.2.0.727
Note 6 - Income Taxes
 6 Months Ended
Jun. 30, 2015
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
6. Income Taxes

The Company and its subsidiaries file U.S. federal and various U.S. state income tax returns. Current income tax expense or (benefit) represents federal and state taxes based on tax paid or expected to be payable or receivable for the periods shown in the condensed consolidated statements of operations. The income tax expense in the accompanying condensed consolidated financial statements consists of the following (amounts in thousands):


    Three Months Ended
June 30,		   Six Months Ended
June 30,
    2015   2014   2015   2014
Current tax expense   $ 28     $ 28     $ 31     $ 28  
Deferred tax expense     -       -       -       -  
Total tax expense   $ 28     $ 28     $ 31     $ 28  

The Company is not expecting a current federal tax liability for the year due to a projected taxable loss. The Company does expect a state tax liability for 2015 in states without sufficient net operating loss carry forwards. Therefore, a current tax expense has been recorded for those states for the three and six months ended June 30, 2015.


The Company’s deferred tax expense or (benefit) reflects the change in deferred tax assets or liabilities. The Company performs an analysis at the end of each reporting period to determine whether it is more likely than not the deferred tax assets are expected to be realized in future years. Based upon this analysis, a valuation allowance has been applied to our net deferred tax assets as of June 30, 2015 and December 31, 2014. Therefore, there has been no change in net deferred taxes for the three months ended June 30, 2015.


The income tax expense or (benefit) differs from the amounts using the statutory federal income tax rate of 35% for the following reasons (amounts in thousands, except for percentages):


    Six Months Ended June 30,
    2015   2014
    Amount   %   Amount   %
Tax (benefit) expense at the U.S. federal statutory rate   $ (6,182 )     35.0 %   $ 1,033       35.0 %
State tax based on income, net of refunds and federal benefits     (339 )     1.9       13       0.4  
Taxes on subsidiaries’ earnings allocated to noncontrolling interests owners     (397 )     2.3       (1,113 )     (37.7 )
Valuation allowance     6,545       (37.1 )     104       3.5  
Other permanent differences     404       (2.3 )     (9 )     (0.3 )
Income tax expense   $ 31       (0.2 )%   $ 28       0.9 %

As a result of the Company’s analysis, management has determined that the Company does not have any material uncertain tax positions.