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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 8 – INCOME TAXES The components of the provision (benefit) for income taxes, in the consolidated statements of operations are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (15,330 | ) |  | $ | - |  |  | $ | - |
State |  |  | (2,660 | ) |  |  | - |  |  |  | - |
|  |  | (17,990 | ) |  |  | - |  |  |  | - |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 15,781 |  |  |  | (936 | ) |  |  | (1,403 | )
State |  |  | 1,709 |  |  |  | (66 | ) |  |  | (73 | )
|  |  | 17,490 |  |  |  | (1,002 | ) |  |  | (1,476 | )
Total |  | $ | (500 | ) |  | $ | (1,002 | ) |  | $ | (1,476 | )
Income taxes from continuing operations before valuation allowance |  | $ | (500 | ) |  | $ | (1,002 | ) |  | $ | (1,476 | )
Change in valuation allowance |  |  | (17,490 | ) |  |  | 1,002 |  |  |  | 1,476 |
Income tax (benefit) |  |  | (17,990 | ) |  |  | - |  |  |  | - |
Total |  | $ | (17,990 | ) |  | $ | - |  |  | $ | - |
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 15,330 |  |  | $ | - |  |  | $ | - |
State |  |  | 3,508 |  |  |  | - |  |  |  | - |
|  |  | 18,838 |  |  |  | - |  |  |  | - |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |  |  |  | - |
State |  |  | - |  |  |  | - |  |  |  | - |
|  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 18,838 |  |  | $ | - |  |  | $ | - |
Income taxes from discontinued operations before valuation allowance |  | $ | 18,838 |  |  | $ | - |  |  | $ | - |
Change in valuation allowance |  |  | - |  |  |  | - |  |  |  | - |
Income tax (benefit) |  |  | 18,838 |  |  |  | - |  |  |  | - |
Total |  | $ | 18,838 |  |  | $ | - |  |  | $ | - |
Total |  | $ | 848 |  |  | $ | - |  |  | $ | - |
A reconciliation of the statutory federal income tax expense (benefit) to the effective tax is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Statutory rate - federal |  | $ | 14,522 |  |  | $ | (975 | ) |  | $ | (1,224 | )
State taxes, net of federal benefit |  |  | 2,268 |  |  |  | (41 | ) |  |  | (305 | )
Rate Change |  |  | 1,639 |  |  |  |  |  |  |  |  |
Permanent differences and other |  |  | (91 | ) |  |  | 14 |  |  |  | 53 |
Income tax from continuing operation before valuation allowance |  |  | 18,338 |  |  |  | (1,002 | ) |  |  | (1,476 | )
Change in valuation allowance |  |  | (17,490 | ) |  |  | 1,002 |  |  |  | 1,476 |
Income tax (benefit) |  |  | 848 |  |  |  | - |  |  |  | - |
Total |  | $ | 848 |  |  | $ | - |  |  | $ | - |
The tax effects of the primary “temporary differences” between values recorded for assets and liabilities for financial reporting purposes and values utilized for measurement in accordance with tax laws giving rise to our deferred tax assets are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Net operating loss and capital loss carryforward |  | $ | 2,458 |  |  | $ | 18,019 |  |  | $ | 16,921 |
Consulting-royalty costs |  |  | - |  |  |  | - |  |  |  | (8 | )
Trademark |  |  | - |  |  |  | 576 |  |  |  | 671 |
Investment in Phusion |  |  | - |  |  |  | 938 |  |  |  | 1,103 |
Depreciation |  |  | 52 |  |  |  | (304 | ) |  |  | (103 | )
Other |  |  | 388 |  |  |  | 1,159 |  |  |  | 802 |
Valuation allowance |  |  | (2,898 | ) |  |  | (20,388 | ) |  |  | (19,386 | )
Total |  | $ | - |  |  | $ | - |  |  | $ | - |
A valuation allowance for all of our net deferred tax assets has been provided as we are unable to determine, at this time, that the generation of future taxable income against which the net operating loss (“NOL”) carryforwards could be used can be predicted to be more likely than not. The net change in the valuation allowance for Fiscal 2017, 2016 and 2015 was ($17.5) million, $1.0 million and $1.6 million, respectively. Certain exercises of options and warrants, and restricted stock issued for services that became unrestricted resulted in reductions to taxes currently payable and a corresponding increase to additional-paid-in-capital for prior years. In addition, certain tax benefits for option and warrant exercises totaling $6.5 million are deferred and will be credited to additional-paid-in-capital, and not income tax expense, if the NOL’s attributable to these exercises are utilized. The net operating loss carry-forwards currently approximate $10.7 million for federal purposes will expire beginning in Fiscal 2034 through 2037. Additionally, there are net operating loss carry-forwards of $1.8 million for state purposes that will expire beginning in Fiscal 2019 through 2037. On December 22, 2017, the President of the United States signed into law legislation that is commonly referred to as the Tax Cuts and Jobs Act (“The TCJA”). This legislation reduced the U.S. corporate tax rate from the existing graduated rate of 15-35% to a flat 21% for tax years beginning after December 31, 2017. As a result of the enacted law, we were required to revalue our deferred tax assets and liabilities existing as of December 31, 2017 from the graduated 15-35% federal rate in effect through the end of 2017, to the new flat 21% rate. This revaluation resulted in a reduction to our deferred tax asset of $1.6 million. This amount was offset by a corresponding reduction to our valuation allowance. The other provisions of the TCJA did not have a material impact on our December 31, 2017 consolidated financial statements. Estimates used to prepare our income tax expense are based on our initial analysis of the TCJA. Given the complexity of the TCJA, anticipated guidance from the U.S. Treasury regarding implementation of the TCJA, and the potential for additional guidance from the Securities and Exchange Commission and the FASB related to the TCJA, these estimates may be adjusted during Fiscal 2018 to reflect any such guidance provided.

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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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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