Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:

(in thousands)	Year Ended December 31, 2017			Year Ended December 31, 2016
Federal - current	$	-		$	-
State - current		6			(142	)
Total current	$	6			(142	)

Federal - deferred		(6,037	)		(1,752	)
State - deferred		(5,402	)		(105	)
Change in valuation allowance		(8,653	)		1,857
Total deferred		(20,092	)		-
Income tax expense (benefit)	$	(20,086	)	$	(142	)

Income Tax Reconciliation

The components of pretax income (loss) and the difference between income taxes computed at the statutory federal rate and the provision for income taxes are as follows:

(in thousands)	Year Ended December 31, 2017			Year Ended December 31, 2016

Income (loss) before income taxes	$	(68,143	)	$	(3,361	)
Tax expense (benefit) :
Tax at statutory federal rate	$	(23,851	)	$	(1,176	)
State income taxes		(5,019	)		(142	)
Rate change		16,047			-
Permanent items		-			-
Other		1,390			(681	)
Change in valuation allowance		(8,653	)		1,857
Income tax expense (benefit)	$	(20,086	)	$	(142	)

A reconciliation of the United States federal statutory rate to the Company's effective income tax rate is as follows:

	Year Ended December 31, 2017			Year Ended December 31, 2016
Tax at statutory federal rate		35.0	%		35.0	%
State income taxes		7.0			4.2
Rate change		(24.0	)		-
Permanent difference, tax credits and other adjustments		-			-
Other		(2.0	)		20.3
Change in valuation allowance		13.0			(55.3	)
Effective income tax rate		29.0	%		4.2	%

Alternate Minimum Tax Credit Carryforwards

Alternative Minimum Tax ("AMT") Credit carryforwards available, which can be used to offset income generated in future years which are not subject to expiration, are as follows:

		Amount
AMT Credits carryforwards		$	21,600,000

Alternative Minimum Tax ("AMT") Credit Carryforwards Projected to be Claimed as Refundable for Each Tax Year

The Company's AMT Credit carryforward amount(s) projected to be claimed as refundable for each tax year are as follows:

Tax Year (a)	Declining balance of the AMT Credit carryforward amount(s) available for each tax year (a) (b)		% of AMT Credit carryforward amount(s) available to be claimed as refundable for each tax year			AMT Credit carryforward amount(s) projected to be claimed as refundable for each tax year (a)(b)

2018	$	20,092,000		50	%	$	10,046,000
2019		10,046,000		50	%		5,023,000
2020		5,023,000		50	%		2,511,500
2021		2,511,500		100	%		2,511,500
						$	20,092,000

(a) Assumes no regular federal income tax liability in tax years presented above which would reduce any AMT Credit carryforward amount(s) ultimately refunded.

(b) The declining balance of the AMT Credit carryforward amount(s) available for each tax year and the AMT Credit carryforward amount(s) projected to be claimed as refundable for each tax year are net of certain estimated adjustments from the previously disclosed AMT Credit carryforward amounts.

Calculation of Net Deferred Tax Assets from NOL Carryforwards

The Company has a deferred tax asset arising primarily from NOL carryforwards and AMT credits as follows:

	December 31, 2017			December 31, 2016
Deferred tax asset	$	47,800,000		$	36,400,000
Valuation allowance		(27,708,000	)		(36,400,000	)
Net deferred tax asset recognized	$	20,092,000		$	-

Federal [Member]

Operating Loss Carryforwards [Line Items]

Net Operating Loss Carryforwards

The federal NOL carryforwards as of December 31, 2017 are as follows:

Tax Year Originating	Tax Year Expiring	Amount

2006	2026	$	500,000
2007	2027		12,700,000
2008	2028		4,600,000
2009	2029		2,400,000
2010	2030		1,900,000
2011	2031		1,900,000
2013	2033		3,700,000
2014	2034		4,900,000
2015	2035		4,200,000
2016	2036		3,400,000
2017	2037		4,400,000
		$	44,600,000

State [Member]

Operating Loss Carryforwards [Line Items]

Net Operating Loss Carryforwards

The state NOL carryforwards as of December 31, 2017 are as follows:

Tax Year Originating	Tax Year Expiring	Amount

2011	2031	$	1,800,000
2013	2033		2,700,000
2014	2034		4,200,000
2015	2035		4,100,000
2016	2036		2,800,000
2017	2037		1,200,000
		$	16,800,000