INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal income tax of 34% to pretax income from continuing operations as a result of the following for the years ended December 31, 2015 and 2014:



	December 31, 2015			December 31, 2014
Statutory tax on book income	$	(5,852,000	)	$	(1,996,000	)
Permanent differences	(3,428,000		)	52,000
Net operating loss utilization	—			—
Change in valuation allowance	15,109,000			922,000
Other	(523,000		)	1,033,763
Income tax expense (benefit)	$	5,306,000		$	11,763

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax (benefit) expense for the years ended December 31, 2015 and 2014 are as follows:



	December 31, 2015			December 31, 2014
Current federal tax expense	$	—		$	11,763
Deferred federal tax (expense)/benefit	(5,306,000		)	—
Total federal tax (expense)/benefit	$	(5,306,000	)	$	(11,763	)

Schedule of Deferred Tax Assets and Liabilities

The cumulative tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below:



	December 31, 2015			December 31, 2014
Deferred tax assets:
Alternative minimum tax credits	$	75,000		$	220,000
Accrued compensation	306,000			560,000
Intangible Assets	1,538,000			—
Allowance for doubtful accounts	668,000			684,000
Contribution carryover	51,000			37,000
Net operating loss carry forwards	23,107,000			14,167,000
Less valuation allowance	(21,282,000		)	(6,173,000		)
Total deferred tax assets	$	4,463,000		$	9,495,000

	December 31, 2015			December 31, 2014
Deferred tax liabilities:
Gain on purchase	$	(2,372,000	)	$	(2,372,000	)
Contingent liability	(1,785,000		)	(1,785,000		)
Accelerated tax depreciation	4,000			208,000
Other - income from partnership	(310,000		)	(240,000		)
Net deferred tax liabilities	$	(4,463,000	)	$	(4,189,000	)

Net Deferred tax assets and liabilities	$	—		$	5,306,000