Note 8 - Income Taxes

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 8—Income Taxes

At March 31, 2016, the Company recorded an income tax expense of $94,317 primarily due to the limitation on the utilization of net operating losses to offset Alternative Minimum Taxable (AMT) income which creates an AMT liability for federal tax purposes and certain state income tax liabilities in jurisdictions where no net operating loss carryovers are available. At March 31, 2016 and December 31, 2015, the Company had net deferred tax assets that were fully offset by a valuation allowance, as management believes that it is not more likely than not that the Company will realize the benefits of the deductible differences. The deferred tax assets at both March 31, 2016 and December 31, 2015 are principally the result of federal and state net operating loss carryforwards of approximately $57 million and $61 million, respectively. The Company has completed an Internal Revenue Code Section 382 study to determine annual limitations on the usability of its net operating loss carryforwards due to historical changes in ownership. That study concluded that $57 million of such accumulated net operating loss carryforwards at March 31, 2016, subject to annual limitation, should be available to offset future taxable income during the carryover period which extends through 2033. If unused, these net operating loss carryforwards will expire at various dates through 2033.

During the three months ended March 31, 2016 and 2015, the Company had no material changes in uncertain tax positions.