12. Income taxes

The benefit for income taxes on loss from continuing operations consisted of the following:


	Year Ended December 31,
(In thousands)	2015			2014
Current
Federal	$	(123	)	$	—
State		—			—

		(123	)		—
Deferred
Federal		(14,660	)		(167	)
State		(1,800	)		—

		(16,460	)		(167	)

Benefit for income taxes	$	(16,583	)	$	(167	)

The Company’s effective income tax benefit differed from the statutory federal income tax rate of 34.0% for the years ended December 31, 2015 and 2014. For the year ended December 31, 2015, this difference is primarily due to state income taxes and one-time contingent earn out costs related to shares issued pursuant to the TBO Merger Agreement. A reconciliation was shown as follows:


	Year Ended December 31,
(In thousands)	2015					2014
Tax on continuing operating loss before income taxes	$	(20,117	)	34.0	%	$	(264	)	34.0	%
Non-deductible contingent earn out costs		4,862		-8.2	%		—		0.0	%
Non-deductible acquisition costs		366		-0.6	%		101		-0.2	%
Other permanent differences		185		-0.3	%		3		0.0	%
Effect of state taxes (net of federal tax benefit)		(1,800	)	3.0	%		(7	)	0.0	%
Others		(79	)	0.1	%		—		0.0	%

Benefit related to income taxes	$	(16,583	)	28.0	%	$	(167	)	33.8	%

Components of deferred income tax consist of the following:


(In thousands)	December 31, 2015			December 31, 2014
Deferred tax assets:
Net operating loss carryforwards	$	4,619		$	213
Share-base compensation		12,069			—
Liability for employee incentive-based compensation plan		1,528			—
Accounts receivable		530			38
Accrued expenses and other current liabilities		136			84
Intangible assets		—			203

		18,882			538

Deferred tax liabilities:
Intangible assets as a result of Fluent Acquisition	$	31,743			—
Property and equipment		239			84
Prepaid expenses and other current assets		412			—
Internal Revenue Code Sec. 481 adjustment		61			84

		32,455			168

Net deferred tax liability	$	(13,573	)	$	370

As of December 31, 2015, the Company had federal and state net operating loss carryforwards of $12,610 and $10,651, respectively, which begin to expire in 2034. The Company’s net operating losses may be subject to annual Section 382 limitations due to ownership changes that could impact the future realization. As a result of certain realization requirements of ASC 718, Compensation — Stock Compensation, the table of deferred tax assets and liabilities shown above does not include certain deferred tax assets as of December 31, 2015 that arose directly from tax deductions related to equity compensation that are greater than the compensation recognized for financial reporting. Equity will be increased by $199 if and when such deferred tax assets are ultimately realized. The Company uses ASC 740 ordering when determining when excess tax benefits have been realized.

ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Management believes, based on all positive and negative evidence, that the deferred tax assets will be fully realized and therefore has not recorded a valuation allowance.

In accordance with the provisions of ASC 740 -10, the Company records a liability for uncertain tax positions when it is probable that a loss has been incurred and the amount can be reasonably estimated. As of December, 2015, the Company has no liabilities for uncertain tax positions. The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. All of the Company’s income tax filings since inception remain open for tax examinations.