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G - INCOME TAXES | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
G - INCOME TAXES | Note G - Income Taxes Financial files a consolidated federal income tax return with its subsidiaries. Income tax expense consists of the following:
|  | Year Ended December 31, |
|  | 2014 |  | 2013 |  | 2012 |
Federal income tax expense: |  |  |  |  |  |  |  |  |  |
Current |  | $ | — |  | $ | 19,000 |  | $ | — |
Deferred |  |  | — |  |  | — |  |  | — |
|  |  | — |  |  | 19,000 |  |  | — |
State and local: |  |  |  |  |  |  |  |  |  |
Current |  |  | — |  |  | — |  |  | 34,000 |
Deferred |  |  | — |  |  | — |  |  | — |
|  |  | — |  |  | — |  |  | 34,000 |
Total: |  |  |  |  |  |  |  |  |  |
Current |  |  | — |  |  | 19,000 |  |  | 34,000 |
Deferred |  |  | — |  |  | — |  |  | — |
|  | $ | — |  | $ | 19,000 |  | $ | 34,000 |
Reconciliation between the income tax provision and income taxes computed by applying the statutory Federal income tax rate to loss before income taxes is as follows:
|  | Year Ended December 31, |
|  | 2014 |  | 2013 |  | 2012 |
Expected income tax benefit at statutory Federal tax rate (34%) |  | $ | (2,229,000 | ) | $ | (2,004,000 | ) | $ | (47,000 | )
State and local taxes, net of Federal tax effect |  |  | (459,000 | ) |  | (413,000 | ) |  | 22,000 |
Increase in valuation allowance |  |  | 2,551000 |  |  | 2,342,000 |  |  | — |
Permanent difference |  |  | 39,000 |  |  | 46,000 |  |  | 36,000 |
Other |  |  | 98,000 |  |  | 48,000 |  |  | 23,000 |
Income tax expense |  | $ | 0 |  | $ | 19,000 |  | $ | 34,000 |
The principal items giving rise to deferred tax assets (liabilities) are as follows:
|  | December 31, |
|  | 2014 |  | 2013 |
Deferred tax assets: |  |  |  |  |  |  |
Net operating loss credit carryforwards |  | $ | 8,046,000 |  | $ | 4,670,000 |
Alternative minimum tax carryforward |  |  | 9,000 |  |  | 15,000 |
Employee stock based compensation |  |  | 237,000 |  |  | 237,000 |
Retail brokerage accounts |  |  | 211,000 |  |  | 281,000 |
Contribution carryover |  |  | 223,000 |  |  | 347,000 |
Furniture, equipment and leasehold improvements |  |  | 115,000 |  |  | 96,000 |
Accrued expenses |  |  | 337,000 |  |  | 83,000 |
Investment in affiliate (a) |  |  | 736,000 |  |  | 1,001,000 |
Accrued compensation and other |  |  | — |  |  | 44,000 |
Capital loss carryforwards |  |  | 24,000 |  |  | — |
Other |  |  | 30,000 |  |  | — |
Total |  |  | 9,968,000 |  |  | 6,774,000 |
Valuation allowance |  |  | (9,218,000 | ) |  | (6,774,000 | )
Net deferred tax assets |  |  | 750,000 |  |  | — |
Deferred tax liability: |  |  |  |  |  |  |
Receivable from affiliate (b) |  |  | (750,000 | ) |  | — |
|  | $ | 0 |  | $ | 0 |
| (a) | Attributable to non-deductible bonus accrued at December 31, 2014 and 2013 by an affiliate, which will be deductible in 2015 and 2014, respectively.
| (b) | Relates to receivable from business sold to affiliate treated as an installment sale for tax purposes.
Due to cumulative losses incurred by the Company during the current and prior two years, the Company is unable to conclude that it is more likely than not that it will realize its deferred tax asset in excess of the deferred tax liability and, accordingly, has recorded a valuation allowance to fully offset such amount at December 31, 2014 and 2013. At December 31, 2014, the Company has state net operating loss carryforwards aggregating $23.6 million, which expires through 2034 in various states. In addition, the Company has federal net operating loss carryforwards of $18.1 million at December 31, 2014, which expires through 2034. The Company also has additional federal net operating loss carryforwards of $410,000 at December 31, 2014 which is attributable to WFN and expires through 2020. Utilization of WFN’s federal net operating loss carryforwards is subject to annual limitations under Section 382 of the Internal Revenue Code. The Company applied the “more-likely-than not” recognition threshold to all tax positions taken or expected to be taken in a tax return which resulted in no unrecognized tax benefits reflected in the financial statements as of December 31, 2014. The Company classifies interest and penalties that would accrue according to the provisions of relevant tax law as income taxes. The provision for income taxes in 2013 represents a federal minimum tax assessment of $19,000 including $4,000 of interest and penalties, relating to the year 2012.The provision for income taxes in 2012 represents a state tax assessment of 34,000 relating to years 2007, 2008 and 2009 based on a tax examination completed by New York State in 2012. Tax years 2011 and thereafter are subject to examinations by federal and certain state authorities. For other states the 2009 through 2013 tax years remain open for examinations. The Company is currently under tax examination by New York State for the tax years 2010 and 2011.

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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 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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 FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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