Note 4 - Income Taxes

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

4

– INCOME T

AXES

As of

September 30, 2017,

the Company had net operating loss (“NOL”) carryforwards of approximately

$279

million for federal income tax purposes and

$168

million for California state income tax purposes. Such carryforwards expire in varying amounts through the year

2037.

Use of the carryforward amounts is subject to an annual limitation as a result of ownership changes.

As of

September 30, 2017,

the Company had unrecognized tax benefits totaling approximately

$2.8

million.

None

of these, if recognized, would affect the Company's effective tax rate because the Company has recorded a full valuation allowance against these assets.

The Company's tax years

2014

through

2016

remain subject to examination by the Internal Revenue Service, and tax years

2013

through

2016

remain subject to examination by California tax jurisdictions. In addition, the Company's loss carryforward amounts are generally subject to examination and adjustment for a period of

three

years for federal tax purposes and

four

years for California purposes, beginning when such carryovers are utilized to reduce taxes in a future tax year.

Because it is more likely than

not

that the Company will

not

realize its net deferred tax assets, it has recorded a full valuation allowance against these assets. Accordingly,

no

deferred tax asset has been reflected in the accompanying balance sheet

s.