Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.7.0.1
Income Taxes
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
Note 13 – Income Taxes
 
The Company is taxed as a C Corporation. The historical audited financial results and other Predecessor financial information included herein reflect the Predecessor results as a limited liability company, which was taxed as a partnership for federal income tax purposes and not at the entity level. Following the Business Combination, LHLLC was treated as a disregarded entity (i.e., a business entity that is separate from its owner for liability purposes but is the same as its owner for income tax purposes); therefore, the financial results include the effects of federal and state income taxes at the parent level.
 
For interim periods, the provision for income taxes (including federal, state, local and foreign taxes) is calculated based on the estimated annual effective tax rate and for the three and six months ended June 30, 2017 (Successor) consists of the following:
 
 
 
Three months ended
 
Six months ended
 
(in thousands)
 
June 30, 2017
 
June 30, 2017
 
Current tax provision
 
 
 
 
 
 
 
U.S. Federal
 
$
-
 
$
-
 
State and local
 
 
-
 
 
-
 
Total current tax provision
 
 
-
 
 
-
 
 
 
 
 
 
 
 
 
Deferred tax provision (benefit)
 
 
 
 
 
 
 
U.S. Federal
 
 
333
 
 
(553)
 
State and local
 
 
71
 
 
(126)
 
Total deferred tax provision (benefit)
 
 
404
 
 
(679)
 
Provision for (benefit from) income taxes
 
$
404
 
$
(679)
 
 
No valuation allowance was required as of June 30, 2017 or December 31, 2016.
 
The Company performed an analysis of its tax positions and determined that no material uncertain tax positions exist. Accordingly, there is no liability for uncertain tax positions as of June 30, 2017 or December 31, 2016. Based on the provisions of ASC 740-10, the Company had no material unrecognized tax benefits as of June 30, 2017.
 
A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows:
 
 
 
Six months ended
 
 
 
June 30, 2017
 
Federal statutory income tax rate
 
 
34.0
%
State income taxes, net of federal tax effect
 
 
4.6
%
Nondeductible/nontaxable items
 
 
2.1
%
Tax credits
 
 
(0.9)
%
Effective tax rate
 
 
39.8
%