Entity information:

Note 14. Income Taxes

 

Significant components of deferred tax assets were as follows as of December 31:

 

    2016     2015  
U.S. federal tax loss carry–forward   $ 14,632     $ 14,229  
U.S. State tax loss carry–forward     1,505       1,137  
U.S. federal capital loss carry–forward     188       188  
Equity based compensation     3,965       —  
Fixed assets, intangible assets and goodwill     821       —  
Long-term investments     462       —  
Total deferred tax assets     21,573       15,554  
Less: valuation allowance     (21,573 )     (15,554 )
Net deferred tax asset   $ —     $ —  

 

As of December 31, 2016, the Company had the following tax attributes:

 

    Amount     Begins to
expire
U.S. federal net operating loss carry–forwards   $ 43,588     Fiscal 2023
U.S. State net operating loss carry–forwards     27,468     Fiscal 2031
U.S. federal capital loss carry–forwards     553     Fiscal 2015

 

As it is not more likely than not that the resulting deferred tax benefits will be realized, a full valuation allowance has been recognized for such deferred tax assets. For the year ended December 31, 2016, the valuation allowance increased by $6,019 Federal and state laws impose substantial restrictions on the utilization of tax attributes in the event of an “ownership change,” as defined in Section 382 of the Internal Revenue Code. Currently, the Company does not expect the utilization of tax attributes in the near term to be materially affected as no significant limitations are expected to be placed on these tax attributes as a result of previous ownership changes. If an ownership change is deemed to have occurred as a result of equity ownership changes or offerings, potential near term utilization of these assets could be reduced.

 

The provision for/ (benefit from) income tax differs from the amount computed by applying the statutory federal income tax rate to income before the provision for/(benefit from) income taxes. The sources and tax effects of the differences are as follows for the years ended December 31:

 

    2016     2015  
Expected Federal Tax     (34.00 )%     (34.00 )%
State Tax (Net of Federal Benefit)     (5.48 )     (5.48 )
Other permanent differences     0.05       —  
Loss on extinguishment     2,76       —  
Warrant modification     0.59       —  
Loss on conversion of note receivable     0.27       —  
Change in valuation allowance     35.82       39.48  
Effective rate of income tax     0 %     0 %

 

The Company files income tax returns in the U.S. federal jurisdiction, New York State and New Jersey jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non–U.S. income tax examinations by tax authorities for years before 2012.