Note 12 - Income Taxes

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

12. INCOME TAXES

GAAP prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

The Company’s provision for income taxes is calculated using the liability method. Deferred income taxes are provided for all temporary differences between the financial statement and income tax bases of assets and liabilities using tax rates enacted by law or regulation.

Reconciliations between the total income tax expense (benefit) and the amount computed using the statutory federal rate of 21% for the years ended December 31, 2023 and 2022 were as follows:

	2023			2022
	(in thousands)
Federal income tax expense (benefit) at statutory rate	$	(647	)	$	375
Adjusted for:
Permanent differences		99			86
Valuation allowance		548			(461	)
Income tax expense (benefit)	$	-		$	-

Deferred tax assets were comprised of the following temporary differences as of December 31, 2023 and 2022:

	2023			2022
	(in thousands)
Net operating loss and tax credit carryforwards	$	24,648		$	23,980
Joint venture and other investments		(446	)		(27	)
Accrued retirement benefits and other compensation		1,233			1,149
Property net book value		3,002			2,960
Deferred revenue		962			1,016
Reserves and other		37			(50	)
Total deferred tax assets		29,436			29,028
Valuation allowance		(29,436	)		(29,028	)
Net deferred tax assets	$	-		$	-

Valuation allowances at December 31, 2023 and 2022 have been established to reduce future tax benefits not expected to be realized. Net Operating Loss (NOL) carryforwards created in tax years beginning after December 31, 2017 are limited by the TCJA but do not expire. At December 31, 2023, the Company had approximately $67.5 million in federal NOL carryforwards and approximately $81.4 million in state NOL carryforwards expiring from 2030 through 2034. The Company also had approximately $8.3 million in federal and state NOL carryforwards at December 31, 2023 that do not expire.