Income Taxes

12 Months Ended

Dec. 31, 2022

Income Taxes

Income Taxes

9. Income Taxes:

The Company will file a final tax return for the year ended December 31, 2022 due to the December 21, 2022 Resolution. There is no income tax liability.

The net operating loss carryforwards of $69,349,000 are utilized in 2022 and the excess of income from forgiveness of debt and interest is not included in gross income due to the insolvency of the Company pursuant to Internal Revenue Code Section 108(a)(1).

Reconciliation of the statutory federal income tax rates, 21% for the years ended December 31, 2022 and 2021, to the Company’s effective income tax rates follows:

	2022					2021
	($ in thousands)
			Percent of						Percent of
	Amount of tax		Pre-tax Loss			Amount of tax			Pre-tax Loss
Expected tax credit	$	-		-21.0	%	$	(297	)		-21.0	%
State income taxes, net of federal tax benefits		-		-4.0	%		(56	)		-4.0	%
Decrease in environmental liability		-		0.0	%		-			0.0	%
Increase (decrease) in valuation allowance		-		25.0	%		353			25.0	%
	$	-		0.0	%	$	-			0.0	%

The Company’s net operating loss carryforwards were utilized in 2022.

	2022		2021
	($ in thousands)
Deferred tax asset:
Net operating loss carryover	$	-	$	18,154
Expenses capitalized under IRC 263(a)		-		37
Tax credits (AMT)		-		57
Valuation allowance		-		(18,248	)
Net deferred tax asset	$	-	$	-

The Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2019. It is the Company’s policy to classify interest and penalties related to its tax positions in general and administrative expense in the consolidated statements of operations.