Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.7.0.1
Income Taxes
3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
Note 11 – 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 months ended March 31, 2017 (Successor) consists of the following:
 
(in thousands)
 
 
 
Current tax provision
 
 
 
 
U.S. Federal
 
$
-
 
State and local
 
 
-
 
Total current tax provision
 
 
-
 
 
 
 
 
 
Deferred tax benefit
 
 
 
 
U.S. Federal
 
 
(887)
 
State and local
 
 
(196)
 
Total deferred tax benefit
 
 
(1,083)
 
Provision (benefit) for income taxes
 
$
(1,083)
 
 
No valuation allowance was required as of March 31, 2017 and 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 March 31, 2017 and December 31, 2016. Based on the provisions of ASC 740-10, the Company had no material unrecognized tax benefits as of March 31, 2017.
 
A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows:
 
 
 
 
Successor
 
 
 
 
For the Three Months Ended
 
 
 
March 31, 2017
 
Federal statutory income tax rate
 
 
34.0
%
State income taxes, net of federal tax effect
 
 
4.6
%
Nondeductible/nontaxable items
 
 
4.1
%
Effective tax rate
 
 
42.7
%