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Taxes
3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Taxes

NOTE 9 — Taxes

 

Effective December 31, 2016, the Company released a full valuation allowance for deferred taxes and set up deferred tax assets on the balance sheet. With the consideration of available evidence, including three consecutive years of increasing net income and expectations for continued sustainable profitable operations, the Company believed that, in accordance with the guidance provided by ASC 740, it is more likely than not to realize the majority of the value of federal and state deferred tax assets. The Company will continue to monitor the likelihood that it will be able to recover the deferred tax assets in the future.

 

The Company has recorded a provision for income taxes of approximately $253,000 and $8,000 for the three-month periods ended March 31, 2017 and 2016, respectively. The 2017 provision of $253,000 includes deferred tax expense of $240,000, federal alternative minimum tax expense of $10,000, and state alternative minimum tax expense of $3,000. The deferred tax expense of $8,000 in the first quarter of 2016 is related to the Company’s goodwill amortized for tax purposes.