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Income Taxes | 9 Months Ended
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Sep. 30, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components for income tax expense included in the accompanying statement of operations for the nine months ended September 30, 2019 and full year 2018 are as follows (in thousands):
| September 30, 2019 |  | December 31, 2018
Current state income tax expense | $ | 38 |  |  | $ | — |
Deferred federal income tax expense | — |  |  | — |
Total income tax expense | $ | 38 |  |  | $ | — |
A reconciliation of income taxes computed using the 21% U.S. federal statutory rate to the amount reflected in the accompanying consolidated statement of operations for the nine months ended September 30, 2019 and full year 2018 is as follows (in thousands):
| September 30, 2019 |  | December 31, 2018
Income tax benefit using U.S. federal statutory rate | $ | 1,005 |  |  | $ | 2,328 |
State Income Tax Expense | (30 | ) |  | — |
Non-deductible expenses | (10 | ) |  | 17 |
Impact of change in statutory rate |  |  |
Change in valuation allowance | (683 | ) |  | (2,311 | )
RTP/Other Adjustments | (320 | ) |  | (34 | )
| $ | (38 | ) |  | $ | — |
The effects of temporary differences and carryforwards that give rise to deferred tax assets (liabilities) are as follows (in thousands):
| September 30, 2019 |  | December 31, 2018
Federal net operating loss carryforward | $ | 11,202 |  |  | $ | 10,876 |
Federal Sec. 382 net operating loss carryforward | 3,642 |  |  | — |
Accrued interest to related parties, not deductible until paid | 259 |  |  | 334 |
Stock options | 614 |  |  | — |
Accrued compensation | 39 |  |  | — |
Basis of intangible assets | 332 |  |  | 221 |
Basis in foreign entity | 509 |  |  | — |
Valuation allowance | (9,438 | ) |  | (3,950 | )
Total deferred tax assets | 7,159 |  |  | 7,481 |
Basis of property, plant and equipment | 6,969 |  |  | 7,447 |
Bad debt expense | 39 |  |  | 34 |
Prepaid expenses | 151 |  |  | — |
Total deferred tax liabilities | 7,159 |  |  | 7,481 |
Net deferred tax liabilities | $ | — |  |  | $ | — |
At September 30, 2019 the Company has net operating loss carry forwards of approximately $53.6 million which may be used to offset future taxable income. The net operating loss carryforwards includes $42.8 million of losses arising prior to December 31, 2017 that expire in 2028 through 2037. Those arising in tax years after 2017 can be carried forward indefinitely. Also, for losses arising in taxable years beginning after December 31, 2017 the operating loss deduction is limited to 80% of taxable income (determined without regard to the deduction). Since the Company has not yet generated significant taxable income, a valuation allowance has been established to fully reserve the Company's net deferred tax assets at September 30, 2019. A change in ownership eliminated substantially all net operating loss carryforwards of an acquired subsidiary at July 26, 2019. The elimination of those loss carryforwards is shown above as a section 382 limitation. The Company recognizes the tax benefit or obligation from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based not only on the technical merits of the tax position based on tax law, but also past administrative practices and precedents of the taxing authority. The tax benefits or obligations are recognized in our financial statements if there is a greater than 50% likelihood of the tax benefit or obligation being realized upon ultimate resolution. As of nine months ended September 30, 2019 and year ended December 31, 2018, the Company had no uncertain tax positions that required recognition. As of September 30, 2019, the Company's tax returns for years 2015 to 2018 remain subject to examination for both federal and state filings.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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