Note 4 - Income Taxes

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

4

– INCOME T

AXES

As of

March 31, 2019,

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

$315

million for federal income tax purposes and

$195

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

2039.

For federal losses arising in tax years ending after

December 31, 2017,

the NOL carryforwards are allowed indefinitely.  Use of the carryforward amounts is subject to an annual limitation as a result of ownership changes.

As of

March 31, 2019,

the Company possessed unrecognized tax benefits totaling approximately

$1.8

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

2015

through

2018

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

2014

through

2018

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 condensed consolidated balance sheet.