XML 29 R16.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income tax expense for the following periods are as follows (in thousands):
|  |  |  |  | For the year ended |  |  |  |
|  |  |  |  | December 31, |  |  |  |
|  |  |  |  | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |  |  |  |  |
Federal |  |  |  |  | $ | (29) |  |  | $ | — |  |  | $ | — |
State |  |  |  |  | — |  |  | — |  |  | — |
Current tax expense (benefit) |  |  |  |  | $ | (29) |  |  | $ | — |  |  | $ | — |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  |  |  | 29 |  |  | (28) |  |  | 350 |
State |  |  |  |  | — |  |  | — |  |  | 46 |
Deferred tax expense (benefit) |  |  |  |  | 29 |  |  | (28) |  |  | 396 |
Total tax expense (benefit) |  |  |  |  | $ | — |  |  | $ | (28) |  |  | $ | 396 |
The difference between income tax expense and the amount computed by applying the statutory federal income tax rate to the combined income of the Company's TRS before taxes were as follows (in thousands):
| For the year ended |  |  |  |
| December 31, |  |  |  |
| 2019 |  | 2018 |  | 2017
Book loss before income taxes of the TRS | $ | (8,167) |  |  | $ | (6,040) |  |  | $ | (4,261) |
Statutory rate of 21% for 2018 and after and 34% for prior years applied to pre-tax income | $ | (1,715) |  |  | $ | (1,268) |  |  | $ | (1,449) |
Effect of state and local income taxes, net of federal tax benefit | (347) |  |  | (200) |  |  | (108) |
Tax reform impact | — |  |  | — |  |  | 644 |
Provision to return adjustment | — |  |  | — |  |  | 5 |
Permanent adjustments | 8 |  |  | 12 |  |  | 13 |
Change in valuation allowance | 2,100 |  |  | 1,456 |  |  | 1,289 |
Valuation allowance release | — |  |  | (28) |  |  | — |
Other | (46) |  |  | — |  |  | 2 |
Total income tax (benefit) expense | $ | — |  |  | $ | (28) |  |  | $ | 396 |
Effective tax rate | — | % |  | 0.46 | % |  | (9.29) | %
On December 22, 2017, the TCJA was enacted. The TCJA includes a number of changes to the existing U.S. tax code, most notably a reduction of the U.S. corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017. Changes in tax rates and tax laws are accounted for in the period of enactment. Therefore, as a result of the TCJA being signed into law, the net deferred tax assets before valuation allowance were reduced by $0.6 million with a corresponding net adjustment to current year tax expense for the remeasurement of the Company’s U.S. net deferred tax assets in 2017. Our federal income tax expense for periods beginning in 2018 will be based on the new rate. At December 31, 2019, our TRS had a net deferred tax asset associated with future tax credits of $29 thousand. At December 31, 2019 and 2018, the Company had valuation allowances against certain deferred tax assets totaling $5.6 million and $3.3 million, respectively. The increase in valuation allowance was primarily from the increase in the net operating losses incurred during the year. The tax effect of each type of temporary difference and carry forward that gives rise to the deferred tax asset as of December 31, 2019 and 2018 are as follows (in thousands):
| For the year ended |  |
| December 31, |  |
| 2019 |  | 2018
Total deferreds: |  |  |
Allowance for doubtful accounts | $ | 117 |  |  | $ | 68 |
Accrued compensation | 870 |  |  | 731 |
AMT credit | 29 |  |  | 58 |
Total book to tax difference in partnership | (103) |  |  | (193) |
Net operating loss | 4,741 |  |  | 2,654 |
Valuation allowance | (5,625) |  |  | (3,260) |
Net deferred tax asset | $ | 29 |  |  | $ | 58 |
As of each reporting date, the Company's management considers new evidence, both positive and negative, that could impact management's view with regard to future realization of net deferred tax assets. The Company's TRS is expecting continued taxable losses in 2020. As of December 31, 2019, the TRS continues to recognize a full valuation allowance equal to 100% of the net deferred tax assets, with the exception of the AMT tax credit, due to the uncertainty of the TRS's ability to utilize these net deferred tax assets. Management will continue to monitor the need for a valuation allowance.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration