XML 22 R11.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 4 - Income Taxes
9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
4. 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 Company is not expecting a current federal tax liability due to sufficient net operating loss carry forwards. The Company may incur current state tax liabilities in states in which the Company does not have sufficient net operating loss carry forwards. A minimal tax expense was recorded for the three and nine months ended September 30, 2016 and a minimal tax benefit was recorded for the three and nine months ended September 30, 2015. The effective income tax rate varied from the statutory rate primarily as a result of the change in the valuation allowance, net income attributable to noncontrolling interest owners which is taxable to those owners rather than to the Company, state income taxes and other permanent differences.
 
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 full valuation allowance has been applied to our net deferred tax assets as of September 30, 2016 and December 31, 2015. Therefore, there has been no change in net deferred taxes for the three and nine months ended September 30, 2016.
 
As a result of the Company’s analysis, management has determined that the Company does not have any material uncertain tax positions.