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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Taxes [Abstract] |
Income Taxes | 13. Income Taxes The Company had taxable income for the years ended December 31, 201 5, 2014, and 2013. A reconciliation of the statutory U.S. Federal income tax and the income tax provision included in the accompanying consolidated statements of operations is as follows (in thousands):
Year Ended December 31, 2015 |  |  |  |  |  | Total
Statutory rate |  |  |  |  |  |  |  |  |  |  | 34 | %
Tax (benefit) expense at statutory rate |  |  |  |  |  |  |  |  |  | $ | (5,906) |
State income tax (benefit) expense |  |  |  |  |  |  |  |  |  |  | (893) |
Permanent difference |  |  |  |  |  |  |  |  |  |  | 3 |
Net change in deferred tax asset valuation allowance |  |  |  |  |  |  |  |  |  |  | 14,147 |
Total income tax provision (benefit) |  |  |  |  |  |  |  |  |  | $ | 7,351 |
Year Ended December 31, 2014 |  |  |  |  |  | Total
Statutory rate |  |  |  |  |  |  |  |  |  |  | 34 | %
Tax (benefit) expense at statutory rate |  |  |  |  |  |  |  |  |  | $ | (270) |
State income tax (benefit) expense |  |  |  |  |  |  |  |  |  |  | (40) |
Permanent difference |  |  |  |  |  |  |  |  |  |  | 304 |
Other |  |  |  |  |  |  |  |  |  |  | — |
Net change in deferred tax asset valuation allowance |  |  |  |  |  |  |  |  |  |  | — |
Total income tax provision (benefit) |  |  |  |  |  |  |  |  |  | $ | (6) |
Year Ended December 31, 2013 |  | Continuing Operations |  | Discontinued Operations |  | Total
Statutory rate |  |  | 34 | % |  |  | 34 | % |  |  | 34 | %
Tax (benefit) expense at statutory rate |  | $ | 1,689 |  |  | $ | (5) |  |  | $ | 1,684 |
State income tax (benefit) expense |  |  | 255 |  |  |  | — |  |  |  | 255 |
Permanent difference |  |  | 4 |  |  |  | — |  |  |  | 4 |
Other |  |  | 62 |  |  |  | (62) |  |  |  | — |
Net change in deferred tax asset valuation allowance |  |  | — |  |  |  | 190 |  |  |  | 190 |
Total income tax provision (benefit) |  | $ | 2,010 |  |  | $ | 123 |  |  | $ | 2,133 |
Management has evaluated the positions taken in connection with the tax provisions and tax compliance for the years included in these financial statements. The Company believes that all of the positions it has taken will prevail on a more likely than not basis. As such no disclosure of such positions was deemed necessary. Management continuously estimates its ability to recognize a deferred tax asset related to prior period net operating loss carry forwards based on its anticipation of the likely timing and adequacy of future net income. In 2013, management determined using the “more likely than not” criteria for recognition that upon sale of the Pipeline asset, the Company would not be able to utilize the state net operating loss carryforwards associated with TPC and the Tennessee oil and gas properties, and therefore established an allowance for these state net operating loss carryforwards. At December 31, 2015, the Company record ed a full allowance of the deferred tax asset primarily due to cumulated losses incurred during the 3 years ended December 31, 2015. The total valuation allowance at December 31, 2015 was $15.0 million and $790,000 at December 31, 2014 and 2013. As of December 31, 2015, the Company had net operating loss carry forwards of approximately $22.9 million which will expire between 2018 and 2032 if not utilized. The Company recognizes the excess income tax benefit associated with certain stock compensation deductions when such deductions produce a reduction in the Company’s current tax liability under the “with” and “without” approach. Due to cumulative net operating loss carryforwards (“NOLs”) that exceeded the excess income tax benefits generated in prior reporting periods, the Company has not recognized the excess benefit of the tax deductions upon the exercise of stock options in any prior reporting period. As of December 31, 2015, the Company’s estimated net operating losses for tax return filing purposes exceeds the gross amount for financial reporting purposes by $1.8 million. The tax effect of this excess tax benefit will be recorded as a reduction to APIC in a future reporting period when the cash benefit is realized. Our open tax years include all returns filed for 2011 and later. In addition, any of the Company’s NOLs for tax reporting purposes are still subject to review and adjustment by both the Company and the IRS to the extent such NOLs should be carried forward into an open tax year. The Company’s deferred tax assets and liabilities are as follows: (in thousands)
|  | Year Ended December 31,
|  | 2015 |  | 2014
Net deferred tax assets – current: |  |  |  |  |  |
Bad debt |  | $ | 68 |  | $ | 68
Valuation allowance |  |  | (68) |  |  |
Total deferred tax assets – current |  | $ | — |  | $ | 68
Net deferred tax assets (liabilities) – noncurrent: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 8,963 |  | $ | 7,173
Oil and gas properties |  |  | 4,112 |  |  | (894)
Property, Plant and Equipment |  |  | 668 |  |  | 711
Asset retirement obligation |  |  | 870 |  |  | 786
Tax credits |  |  | 260 |  |  | 202
Miscellaneous |  |  | 53 |  |  | 95
Valuation allowance |  |  | (14,926) |  |  | (790)
Total deferred tax assets – noncurrent |  | $ | — |  | $ | 7,283
Net deferred tax asset |  | $ | — |  | $ | 7,351

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 + Details
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