Note 9 – Income Taxes

At March 31, 2017, we had federal NOLs of approximately $230.8 million. These NOLs will expire in years through fiscal 2034. At March 31, 2017, we also had state NOLs of approximately $100.7 million. These NOLs expire between 2029 and 2034. We also had the New York State and New York City prior NOL conversion (“PNOLC”) subtraction pools of approximately $31.1 million and $25.5 million, respectively. The conversion to the PNOLC under the New York State and New York City corporate tax reforms does not have any material tax impact.

Based on management’s assessment, it is more likely than not that the entire deferred tax assets will not be realized by future taxable income or tax planning strategy. Accordingly a valuation allowance of $95.5 million and $95.3 million was recorded as of March 31, 2017 and December 31, 2016, respectively.