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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income taxes [Abstract] |
Income Taxes | Note 15 Income Taxes:
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |
Current: |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |
State |  |  | 15 |  |  |  | - |
|  |  | 15 |  |  |  | - |
Deferred |  |  |  |  |  |  |  |
Federal |  |  | (4,119 | ) |  |  | 3,302 |
State |  |  | (648 | ) |  |  | 388 |
|  |  | (4,767 | ) |  |  | 3,690 |
Valuation allowance |  |  | 5,007 |  |  |  | (3,571 | )
Income tax expense |  | $ | 255 |  |  | $ | 119 |
The Company accounts for income taxes using the asset and liability method for deferred income taxes. The provision for income taxes includes federal, state and local income taxes currently payable and deferred taxes resulting from temporary differences between the financial statement and tax bases of assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company provides for income taxes offset by changes in valuation allowances. The difference between the actual income tax benefit and that computed by applying the U.S. federal income tax rate of 34% to pretax loss from continuing operations is summarized below:
|  | For the Years Ended December 31, |
|  | 2016 |  |  | 2015 |
Computed expected tax benefit |  | $ | (1,047 | ) |  | $ | (8,472 | )
State tax benefit, net of federal effect |  |  | (499 | ) |  |  | (1,365 | )
Warrant value fluctuation |  |  | (1,835 | ) |  |  | 3,271 |
Net increase in valuation allowance |  |  | 3,636 |  |  |  | 6,685 |
Provision for income taxes |  | $ | 255 |  |  | $ | 119 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows:
|  | December 31, |
|  | 2016 |  |  | 2015 |
Deferred tax assets/(liabilities): |  |  |  |  |  |
Net operating loss carryforward |  | $ | 72,870 |  |  | $ | 64,075 |
Capitalized research and developmental costs |  |  | 8,711 |  |  |  | 10,543 |
Inventory |  |  | 149 |  |  |  | 47 |
Reserves & accrued expenses |  |  | 291 |  |  |  | 3,295 |
Convertible debt discount |  |  | (11,097 | ) |  |  | (11,182 | )
Property & equipment |  |  | 432 |  |  |  | (355 | )
Non-cash compensation |  |  | 1,127 |  |  |  | 1,054 |
Goodwill |  |  | (359 | ) |  |  | (119 | )
Total deferred tax assets |  |  | 72,124 |  |  |  | 67,358 |
Less: valuation allowance |  |  | (72,483 | ) |  |  | (67,477 | )
Net deferred tax assets/(liabilities) |  | $ | (359 | ) |  | $ | (119 | )
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. Based on the Company's historical net losses, management does not believe that it is more-likely-than not that the Company will realize the benefits of these deferred tax assets and, accordingly, a full valuation allowance has been recorded against the deferred tax assets as of December 31, 2016 and 2015. The Company's valuation allowance against its deferred tax assets increased by $5,035 for the year ended December 31, 2016 and decreased by $3,571 for the year ended December 31, 2015. At December 31, 2016 and 2015, the Company has federal net operating loss carryforwards of approximately $183,727 and $163,837, respectively, to offset future taxable income. The Company has experienced certain ownership changes which, under the provisions of Section 382 of the Internal Revenue Code of 1986, as amended, result in annual limitations on the Company's ability to utilize its net operating losses in the future. The February 2014, July 2014 and June 2015 equity raises by the Company, will likely limit the annual use of these net operating loss carryforwards. FASB ASC 740 "Income Taxes" contains guidance with respect to uncertain tax positions which applies to all tax positions and clarifies the recognition of tax benefits in the financial statements by providing for a two-step approach of recognition and measurement. The first step involves assessing whether the tax position is more-likely-than-not to be sustained upon examination based upon its technical merits. The second step involves measurement of the amount to recognize. Tax positions that meet the more likely than not threshold are measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate finalization with the taxing authority. The Company does not have any unrecognized tax benefits or accrued penalties and interest. If such matters were to arise, the Company would recognize interest and penalties related to income tax matters in income tax expense. The earliest open tax year subject to examination is 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 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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