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Note 7 - Income Taxes | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
7. | INCOME TAXES
The income tax provision from continuing operations consists of the following:
Year ended December 31, (in thousands) |  | 201 6 |  |  | 2015 |
Current |  | $ | -- |  |  | $ | 3 |
Total |  | $ | -- |  |  | $ | 3 |
Following is a reconciliation of estimated income taxes at the statutory rate from continuing operations to estimated tax expense (benefit) as reported:
Year ended December 31, |  | 201 6 |  |  | 201 5 |
Statutory rate |  |  | 35 | % |  |  | 35 | %
Change in valuation allowance |  |  | (35% | ) |  |  | (35% | )
Effective rate |  |  | 0 | % |  |  | 0 | %
Net deferred tax assets consist of the following at December 31:
(in thousands) |  | 201 6 |  |  | 201 5 |
Deferred tax assets: |  |  |  |  |  |  |  |
Federal, state and foreign loss carryforwards |  | $ | 1,440 |  |  | $ | 1,850 |
Deferred revenue |  |  | 30 |  |  |  | 68 |
Federal and state tax credits |  |  | 642 |  |  |  | 653 |
Other |  |  | 823 |  |  |  | (79 | )
Total deferred tax asset |  |  | 2,935 |  |  |  | 2,492 |
Less valuation allowance |  |  | (2,935 | ) |  |  | (2,492 | )
Net deferred tax asset |  | $ | -- |  |  | $ | -- |
Federal and state tax credits of $642,000 included in the above table expire at various dates between 2024 and 2035. We had a deferred tax asset of approximately $2.9 million and $2.5 million at December 31, 2016 and December 31, 2015, respectively. The deferred tax asset has been offset by a valuation allowance in 2016 and 2015 of $2.9 million and $2.5 million, respectively, because the company believes that it is more likely than not that the amount will not be realized. No deferred taxes have been provided on temporary differences related to investments in foreign subsidiaries because these investments are considered to be permanent. As of December 31, the following net operating loss carryforwards, if unused as offsets to future taxable income, will expire during the following years:
(in thousands) |  | 201 6 |  |  | 201 5 |
2021 |  | $ | 689 |  |  | $ | 689 |
2022 |  |  | 849 |  |  |  | 849 |
2030 |  |  | -- |  |  |  | 4 |
2031 |  |  | -- |  |  |  | 298 |
Thereafter |  |  | 2,578 |  |  |  | 3,445 |
Total |  | $ | 4,116 |  |  | $ | 5,285 |
Of the net operating losses detailed above, $1.5 million are related to net operating losses that CoreCard incurred prior to its acquisition by the company. These net operating losses are subject to Separate Return Limitation Year rules. These net operating loss carryforwards expire in years 2021 and 2022. We have recognized tax benefits from all tax positions we have taken, and there has been no adjustment to any carry forwards (net operating loss or research and development credits) in the past two years. There were no unrecognized tax benefits as of December 31, 2016 and 2015. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. There were no accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the periods presented. We have determined we have no uncertain tax positions. We file a consolidated U.S. federal income tax return for all subsidiaries in which our ownership equals or exceeds 80%, as well as individual subsidiary returns in various states and foreign jurisdictions.

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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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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