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INCOME TAXES | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
INCOME TAXES | (7) INCOME TAXES Income tax (benefit) expense consists of the following for the years ended December 31, 2016 and 2015:
|  | 2016 |  | 2015 |
Current tax (benefit) expense: |  |  |  |  |  |  |
Federal |  | $ | 15 |  | $ | (57) |
State |  |  | — |  |  | — |
Penalties and interest |  |  | — |  |  | — |
|  |  | 15 |  |  | (57) |
Deferred tax (benefit) expense: |  |  |  |  |  |  |
Federal |  |  | (558) |  |  | (992) |
State |  |  | (38) |  |  | (68) |
Valuation allowance |  |  | 596 |  |  | 1,060 |
|  |  | — |  |  | — |
|  | $ | 15 |  | $ | (57) |
A reconciliation of income tax computed at the U.S. statutory rate of 34% to the effective income tax rate is as follows:
|  | 2016 |  | 2015 |
Statutory rate |  |  | 34 | % |  | (34) | %
State taxes |  |  | 3 |  |  | (3) |
Permanent differences and other |  |  | 2 |  |  | 2 |
Change in valuation allowance |  |  | (21) |  |  | 35 |
Effective rate |  |  | 18 | % |  | 0 | %
The tax effects of temporary differences that give rise to deferred tax assets (liabilities) at December 31, 2016 and 2015 are as follows:
|  | 2016 |  | 2015 |
Current deferred tax assets (liabilities): |  |  |  |  |  |  |
Accrued expenses |  | $ | 51 |  | $ | 22 |
Deferred insurance reimbursement |  |  | 322 |  |  | — |
Accounts receivable |  |  | 907 |  |  | 730 |
Inventory |  |  | 20 |  |  | 32 |
Prepaid expenses |  |  | (15) |  |  | — |
Stock based compensation |  |  | 108 |  |  | 23 |
Other |  |  | 9 |  |  | 9 |
|  |  | 1,402 |  |  | 816 |
Less: Valuation allowance |  |  | (1,402) |  |  | (816) |
Net current deferred tax assets |  | $ | — |  | $ | — |
Long-term deferred tax assets (liabilities): |  |  |  |  |  |  |
Amortization |  | $ | 105 |  | $ | 115 |
Property and equipment |  |  | (115) |  |  | (293) |
Tax credits and NOL carryforward |  |  | 4,314 |  |  | 4,482 |
Net long-term deferred tax liabilities |  |  | 4,304 |  |  | 4,304 |
Less: valuation allowance |  |  | (4,304) |  |  | (4,304) |
Net deferred tax assets |  | $ | — |  | $ | — |
The Company has generated a net operating loss carryforward (NOL) for federal income tax purposes of approximately $10,362 as of December 31, 2016, which is available to offset taxable income in the future at various dates through 2035. The Company also has available NOL carryforwards of approximately $19,332 for state purposes, which begin to expire at various dates ranging from five to seven years. As of December 31, 2016 and 2015, the Company has a valuation allowance of approximately $5.7 million and $ 5.1 million, respectively. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers past history, the scheduled reversal of deferred tax liabilities, available taxes in carryback periods, projected future taxable income projections and tax planning strategies in making this assessment. The Company will continue to evaluate whether the valuation allowance is needed in future reporting periods. The accounting standard related to income taxes applies to all tax positions and defines the confidence level that a tax position must meet in order to be recognized in the financial statements. This accounting standard requires that the tax effects of a position be recognized only if it is “more-likely-than-not” to be sustained by the taxing authority as of the reporting date. If a tax position is not considered “more-likely-than-not” to be sustained, then no benefits of the position are to be recognized. This accounting standard requires additional disclosures. The recognition of uncertain tax benefits are not expected to have a material impact on the Company’s effective tax rate or results of operations. These uncertain tax benefits relate primarily to taxes potentially due in state where the Company has nexus, but has not yet filed tax returns. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2016 |  | 2015 |
Uncertain tax benefits at the beginning of the period |  | $ | 250 |  | $ | 250 |
Gross decreases for State income tax liabilities |  |  | (121) |  |  | 0 |
Uncertain tax benefits at the end of the period |  | $ | 129 |  | $ | 250 |

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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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