Note 12 - Income Taxes

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

( 12 ) Income Taxes

During the

three

and

nine

months ended

September 30, 2020

and

2019,

there was

no

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

As of

September 30, 2020,

the Company retains a full valuation allowance on its deferred tax assets in all jurisdictions. The realization of its deferred tax assets depends primarily on its ability to generate future taxable income which is uncertain. The Company does

not

believe that its 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

March 27, 2020,

the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-

19

pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset

100%

of taxable income for taxable years beginning before

2021.

In addition, the CARES Act allows NOLs incurred in

2018,

2019,

and

2020

to be carried back to each of the

five

preceding taxable years to generate a refund of previously paid income taxes. Given the Company's historic tax losses,

no

benefit is expected as a result of the CARES Act; however, the Company will continue to evaluate the impact of the CARES Act.