Note 4 - Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

4.  Income Taxes

The following table presents the components of our income tax expense for the following periods (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Current:
Federal	$	(241	)	$	6		$	(186	)	$	19
State and local		24			16			75			51
Total Current		(217	)		22			(111	)		70
Deferred:
Federal	$	-		$	-		$	-		$	-
State and local		-			-			-			-
Total Deferred		-			-			-			-
Income tax (benefit) expense	$	(217	)	$	22		$	(111	)	$	70
Effective income tax rate		-12.2	%		0.6	%	n/m				2.5	%

Our effective tax rate for the three and nine months ended September 30, 2013 was affected by a full valuation allowance against all of our deferred tax assets, net of deferred tax liabilities.

As of September 30, 2013 and December 31, 2012, the net deferred tax assets are offset by full valuation allowances because it is not more-likely-than-not that we will realize our deferred tax assets. We did not record the related tax benefits in the United States and state jurisdictions during the three and nine months ended September 30, 2013. Income tax expense for the three and nine months ended September 30, 2013 includes $236,000 of tax benefit due to the statute of limitations lapsing on previously unrecognized tax benefits, offset in part by state taxes in certain jurisdictions and interest in other unrecognized tax benefits. Income tax expense for the three and nine months ended September 30, 2012 includes primarily interest in unrecognized tax benefits and state taxes in certain jurisdictions.

All interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense. The total amount of unrecognized tax benefits at September 30, 2013 and December 31, 2012 was $336,000 and $508,000, respectively. It is reasonably possible that the amount of the total unrecognized tax benefits may change in the next 12 months. However, we do not believe that any anticipated change will be material to the Condensed Consolidated Financial Statements.