• Filing Date: 2018-05-15
  • Form Type: 10-Q
  • Description: Quarterly report
3 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Our effective tax rate of 0% on pretax income differs from the U.S. federal income tax of 21% because of the change in our valuation allowance.
The year to date loss at March 31, 2018 put the Company in an accumulated loss position for the cumulative 12 quarters then ended. For tax reporting purposes, we have net operating losses ("NOLs") of approximately $57.9 million as of March 31, 2018 that are available to reduce future taxable income. In determining the carrying value of our net deferred tax asset, the Company considered all negative and positive evidence. The Company has incurred a pre-tax loss of approximately $2.2 million from January 1, 2018 through March 31, 2018. As a result, the Company created a full valuation allowance of 100% to offset the entire balances of deferred tax assets and deferred tax liabilities.