Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.8.0.1
Income Taxes
3 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
Note 12 – Income Taxes
 
The Company is taxed as a C corporation.
 
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 consists of the following:
 
 
 
Three months ended
 
(in thousands)
 
March 31, 2018
 
March 31, 2017
 
Deferred income tax benefit
 
 
 
 
 
 
 
U.S. Federal
 
 
(759)
 
 
(887)
 
State and local
 
 
(284)
 
 
(196)
 
Total deferred income tax benefit
 
 
(1,043)
 
 
(1,083)
 
Income tax benefit
 
$
(1,043)
 
$
(1,083)
 
  
No current tax provision (benefit) was recorded for the three month periods ended March 31, 2018 and 2017. No valuation allowance was required as of March 31, 2018 or December 31, 2017.
  
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, 2018 or December 31, 2017. Based on the provisions of ASC Topic 740 - Income Taxes, the Company had no material unrecognized tax benefits as of March 31, 2018 and December 31, 2017.
 
A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows:
 
 
 
Three months ended
 
 
 
March 31, 2018
 
 
March 31, 2017
 
Federal statutory income tax rate
 
 
21.0
%
 
 
34.0
%
State income taxes, net of federal tax effect
 
 
5.5
%
 
 
4.6
%
Nondeductible/nontaxable items
 
 
4.5
%
 
 
4.1
%
Tax credits
 
 
(0.9)
%
 
 
-
 
Effective tax rate
 
 
30.1
%
 
 
42.7
%