Note

 

(in ):

our deferred tax assets and liabilities are as follows (in ):

December 31,

201

and we had net operating losses (“NOL”) totaling million and million, respectively, to be carried forward years to offset future taxable income and any unused NOL will begin to expire in

believe our NOL will be limited under Internal Revenue Code (“IRC”) Section and believe it will also be available for state income tax purposes subject to state carryforward limitations.  IRC Section limits the utilization of net operating loss in years subsequent to an owner shift based upon the value of the Company at the date of the owner shift.  We have undertaken a detailed study in connection with IRC Section in order to determine if there is any limitation of the utilization of our NOL carryforward.  If IRC Section limitation were deemed to apply, our gross deferred tax asset and its corresponding valuation allowance could be reduced. The Tax cuts and Jobs Act revised the use of net operating loss carryforwards and limits them to of taxable income each year, but removed the limitation on years carried forward.

provision for income taxes reflects the establishment of a full valuation allowance against deferred tax assets as of and Accounting Standards Codification Topic requires management to evaluate its deferred tax assets on a regular basis to reduce them to an amount that is realizable on a more likely than basis. In determining our provision/(benefit) for income taxes, net deferred tax assets, liabilities and valuation allowances, we are required to make judgments and estimates related to projections of profitability, the timing and extent of the utilization of net operating loss carryforwards and applicable tax rates. Judgments and estimates related to our projections and assumptions are inherently uncertain; therefore, actual results could differ materially from the projections.

adopted the provisions of the guidance related to accounting for uncertainties in income taxes. We have analyzed our current tax reporting compliance positions for all open years and have determined that it does have any material unrecognized tax benefits. Accordingly, we have omitted the tabular reconciliation schedule of unrecognized tax benefits. We do expect a material change in unrecognized tax benefits over the next months. All of our prior federal and state tax filings from the tax year forward remain open under statutes of limitation. Operating losses generated in years prior to remain open to adjustment until the statute closes for the tax year in which the net operating losses are utilized.

Company’s provision (benefit) for income taxes attributable to continuing operations differs from the expected tax benefit amount computed by applying the statutory federal income tax rate of to income (loss) before taxes for the years ended and primarily as a result of the following::

The Tax Cuts and Jobs Act was enacted on The Act reduces the US federal corporate tax rate from to We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally The remeasurement of our deferred tax balance was fully offset by the application of our valuation allowance. The accounting for the effects of the rate change on deferred tax balances is expected to be complete, and consequently provisional amounts were recorded for this item.