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Income Taxes | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following table sets forth income before taxes and the income tax expense (benefit) for the years ended December 31, 2014 and December 31, 2013 (in thousands):
| Year Ended December 31,
| 2014 |  | 2013
Current: |  |  |
State | 4 |  |  | (30 | )
| 4 |  |  | (30 | )
Deferred: |  |  |
Federal | 124 |  |  | — |
State | 11 |  |  | — |
| 135 |  |  | — |
Income tax expense (benefit) | $ | 139 |  |  | $ | (30 | )
Our effective tax rate differs from the statutory federal tax rate for the years ended December 31, 2014 and 2013 as shown in the following table (in thousands):
| Year Ended December 31,
| 2014 |  | 2013
U.S. federal income taxes at the statutory rate | $ | (916 | ) |  | $ | (1,372 | )
State taxes, net of federal effects | (77 | ) |  | (297 | )
Permanent differences | 22 |  |  | 310 |
Impact of state tax rate change to deferred | 1,282 |  |  | — |
Expired net operating loss carry-forwards | — |  |  | 1,635 |
Other | 297 |  |  | 14 |
Change in valuation allowance | (469 | ) |  | (320 | )
Income tax expense (benefit) | $ | 139 |  |  | $ | (30 | )
The tax effect of the temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2014 and 2013 is presented below (in thousands):
| December 31,
| 2014 |  | 2013
Deferred tax assets: |  |  |
Tax benefit of operating loss carry forward | $ | 14,280 |  |  | $ | 15,490 |
Reserves and allowances | 172 |  |  | 232 |
Accrued expenses | 79 |  |  | 263 |
Charitable Contributions | 184 |  |  | 196 |
Goodwill | — |  |  | 192 |
Equity based compensation | 543 |  |  | 650 |
Fixed assets | 229 |  |  | 306 |
Texas margin tax temporary credit | 253 |  |  | 260 |
Total deferred tax assets | 15,740 |  |  | 17,589 |
Valuation allowance | (15,099 | ) |  | (15,568 | )
Net deferred tax assets | $ | 641 |  |  | $ | 2,021 |
Deferred tax liabilities: |  |  |
481(a) adjustment | 3 |  |  | — |
Goodwill | 135 |  |  | — |
Intangible amortization | 645 |  |  | 2,021 |
Total deferred tax liabilities | $ | 783 |  |  | $ | 2,021 |
Net deferred tax liability | $ | (142 | ) |  | $ | — |
The ending balances of the deferred tax asset have been fully reserved, reflecting the uncertainties as to realizability evidenced by the Company’s historical results. The change in valuation allowance during the year is a decrease of $469,000. We and our subsidiary file federal and state tax returns on a consolidated basis. During 2013, we determined that an “ownership change” had occurred in 2013 (as defined under Section 382 of the Internal Revenue Code of 1986, as amended) which places an annual limitation on the utilization of the net operating loss (“NOL”) carryforwards accumulated before the ownership change. As a result of this annual limitation and the limited carryforward life of the accumulated NOLs, we determined that the ownership change resulted in the permanent loss of approximately $1.9 million of tax benefit associated with the NOL carryforwards. If additional ownership changes occur in the future, the use of the net operating loss carryforwards could be subject to further limitation. At December 31, 2013 we had federal net operating loss carryforwards of $37,349,000 available to offset future federal taxable income which expire in various amounts from 2017 through 2034. At December 31, 2014, we had federal net operating loss carryforwards of $37,393,000 available to offset future federal taxable income which expire in various amounts from 2017 through 2035. The Company also has various state net operating loss carryforwards. The determination of the state net operating loss carryforwards is dependent upon apportionment percentages and state laws that can change from year to year and impact the amount of such carryforwards. There were no significant matters determined to be unrecognized tax benefits taken or expected to be taken in a tax return, in accordance with 740 “Income Taxes” (“ASC 740”), which clarifies the accounting for uncertainty in income taxes recognized in the financial statement, that have been recorded on the Company’s consolidated financial statements for the years ended December 31, 2014 and 2013. The Company does not anticipate a material change to unrecognized tax benefits in the next twelve months. Additionally, ASC 740 provides guidance on the recognition of interest and penalties related to income taxes. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the years ended December 31, 2014 and 2013. The federal and state tax returns for the years ending December 31, 2013, 2012, 2011 and 2010 are currently open and the tax return for the year ended December 31, 2014 will be filed by September 2015.

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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 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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=6907707&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=6907707&loc=d3e32537-109319 Reference 6: 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=6907707&loc=d3e32559-109319 + Details
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