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INCOME TAXES
9 Months Ended
Sep. 30, 2018
INCOME TAXES  
INCOME TAXES

NOTE 13     INCOME TAXES

 

For the three and nine months ended September 30, 2018 and 2017, we did not provide any current or deferred tax provision or benefit.  The difference between our statutory tax rate and our effective tax rate of zero for the periods presented includes changes to maintain our full valuation allowance against our net deferred tax assets given our recent and anticipated future earnings trends. We believe that there is a reasonable possibility that some or all of this allowance could be released in the foreseeable future. However, the amount of the net deferred tax assets considered realizable depends on the level of profitability that we are able to actually achieve.

 

The Tax Cuts and Jobs Act was signed into law on December 22, 2017 and included significant changes to corporate tax provisions such as a reduction in the corporate tax rate, limitations on certain corporate deductions and favorable capital recovery provisions.  The California Franchise Tax Board released its summary of Federal Income Tax Changes for 2017 on April 19, 2018, which identified how these U.S. federal changes interact with California law.  California law was not conformed to the corporate provisions that are the most significant to our business.