Note 9 - Income Taxes

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

( 9 ) Income Taxes

During the

nine

months ended

September 30, 2018

and

2017,

there was

no

income tax expense or benefit for federal or state income taxes in the accompanying condensed consolidated statements of operations due to the Company’s net loss and a full valuation allowance on the resulting deferred tax assets.

As of

September 30, 2018,

we retain a full valuation allowance on our deferred tax assets in all jurisdictions. The realization of our deferred tax assets depends primarily on our ability to generate future taxable income which is uncertain. We do

not

believe that our deferred tax assets are realizable on a more-likely-than-

not

basis; therefore, the net deferred tax assets have been fully offset by a valuation allowance.

On

December 22, 2017,

the Tax Cuts and Jobs Act (H.R.

1

) (the Tax Act) was signed into law. The new law resulted in significant changes to the U.S. corporate income tax system. These changes included the reduction of the corporate income tax rate from a maximum rate of

35%

to

21%

and the elimination or reduction of certain domestic deductions and credits.

The

2017

provisional charge related to the Tax Act was an estimate and the measurement of net deferred tax assets is subject to further analysis and potential correlative adjustments as developing interpretations and guidance from the U.S. Treasury Department, the Internal Revenue Service, and other standard setting bodies provide additional clarifications of the provisions of the Tax Act. Updated guidance and regulations could result in changes to this provisional charge during

2018

when the analysis is complete, and, in accordance with the guidance in Staff Accounting Bulletin

118,

we will continue to monitor guidance and make necessary adjustments.

No

measurement-period adjustments were made during the

nine

months ended

September 30, 2018.