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INCOME TAXES
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3 Months Ended |
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Mar. 31, 2015
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| Notes to Financial Statements | |
| NOTE E - INCOME TAXES |
At March 31, 2015, the Company had net operating loss carryforwards (NOLs) totaling approximately $22,796,000 expiring through 2029, with a future tax benefit of approximately $7,751,000. At March 31, 2015 and December 31, 2014, $3,987,000 and $4,743,000, respectively, were recorded as deferred tax assets on the Company's condensed consolidated balance sheets. During the three month period ended March 31, 2015 as a result of income (before taxes) for the period of $2,341,000, $811,000 was recorded as income tax expense and the deferred tax assets were reduced by $756,000 to $3,987,000. To the extent that the Company has taxable income in the future, it will report income tax expense and such expense attributable to federal income taxes will reduce the deferred tax assets reflected on the accompanying condensed consolidated balance sheets. Management will continue to evaluate the recoverability of the Company’s NOLs and adjust the deferred tax assets accordingly. Utilization of NOLs can be subject to a substantial annual limitation due to ownership change limitations that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended, as well as similar state provisions. There was no change in the allowance against the deferred tax assets since December 31, 2014. |