The income tax provision (benefit) from operations consists of the following (in thousands):

		December 31,
		2017				2016
Current
Federal		$	-			$	-
State			-				-
Total Current			-				-
Deferred
Federal			(499	)			(3,577	)
State			(62	)			(361	)
Total Deferred			(561	)			(3,938	)
Total Income Tax Benefit		$	(561	)		$	(3,938	)

 

On the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax

 

A reconciliation of computed income taxes by applying the statutory federal income tax rate of and  to income (loss) from operations before taxes to the provision (benefit) for income taxes for the years ended

		December 31,
		2017				2016
Computed income taxes at 21% and 34% for 2017 and 2016, respectively		$	(2,533	)		$	(4,229	)
Increase in income taxes resulting from:
State and local income taxes, net of federal impact			(202	)			(373	)
Change in valuation allowance			1,193				389
Stock-based compensation			408				262
Change in tax rate			585				-
Other			(12	)			13
Benefit for income taxes		$	(561	)		$	(3,938	)

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than that some portion or all of the deferred tax assets will be realized. The ultimate

 

Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes a valuation allowance should be recorded to reduce its net deferred tax assets to zero.

We have a requirement of reporting of taxes based on tax positions which meet a more likely than standard and which are measured at the amount that is more likely than to be realized.

The Company has approximately million of net operating losses that will begin to expire in the year

 

The components of deferred income taxes for the

 

		December 31,
		2017				2016
Deferred tax assets
Reserves and accruals		$	204			$	239
Amortization			41				100
Capital losses and other			1				1
Non-qualified stock option expense			164				390
Tax credits			-				113
Loss Carryforwards			5,116				5.949
Total deferred tax assets			5,526				6,792
Valuation allowance			(1,500	)			(390	)
Net deferred tax assets			4,026				6,402
Deferred tax liabilities
Depreciation			(4,026	)			(6,871	)
Total deferred tax liabilities			(4,026	)			(6,871	)
Net deferred tax assets (liabilities)		$	-			$	(469	)

The Company uses significant judgment in forming conclusions regarding the recoverability of its deferred tax assets and evaluates all available positive and negative evidence to determine if it is more-likely-than- that the deferred tax assets will be realized. To the extent recovery does appear likely, a valuation allowance must be recorded. As of the Company recorded a valuation allowance of  million and

 

It is possible that the relative weight of positive and negative evidence regarding the realization of deferred tax assets change, which could result in a material increase or decrease in the Company

 

The Company classifies penalty and interest expense related to income tax liabilities as an other ex

 

The Company files tax re