Income Taxes (Tables)

9 Months Ended

Sep. 30, 2014

Provision (benefit) for Income Taxes

The Company had a provision (benefit) for income taxes for the nine months ended September 30, 2014 and 2013 that consisted of the following (in thousands):

	Nine Months Ended
	September 30,
	2014		2013
Current:
Federal	$	—	$	—
State		9		5
Total		9		5
Deferred:
Federal		—		(7	)
State		—		(1	)
Total		—		(8	)
Total:
Federal		—		(7	)
State		9		4
Total	$	9	$	(3	)

Net Deferred Tax Assets

The tax effects of temporary differences that gave rise to deferred tax assets at September 30, 2014, and December 31, 2013, were as follows (in thousands):

	September 30,			December 31,
	2014			2013
Deferred tax assets:
Net operating losses	$	34,515		$	28,973
Capital losses		4,153			4,153
Other asset reserves		—			1
Accrued expenses		106			23
Total deferred tax assets		38,774			33,150
Valuation allowance		(36,053	)		(31,931	)
		2,721			1,219
Deferred tax liabilities:
State deferreds		(1,530	)		(1,219	)
Other investment		(1,191	)		—
Total deferred tax liabilities		(2,721	)		(1,219	)
Net deferred taxes	$	—		$	—

Reconciliation of Statutory Federal Income Tax Rate to Actual Effective Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the actual effective income tax rate:

	September 30,
	2014			2013
Federal tax (benefit) rate		(34.0	)%		(34.0	)%
Increase (decrease) in taxes resulting from:
State income taxes		(5.8	)		(5.8	)
Change in valuation allowance		39.6			39.4
Permanent differences		0.2			0.4
Minimum tax		0.1			0.2
		0.1	%		0.2	%