Note 5 – Income Taxes
The (benefit) provision for income taxes from continuing operations consists of the following (in thousands):
| Year Ended December 31, | ||||||||
| 2016 | 2015 | |||||||
| Current: | ||||||||
| Federal | $ | — | $ | — | ||||
| State | 8 | 2 | ||||||
| 8 | 2 | |||||||
| Deferred: | ||||||||
| Federal | — | — | ||||||
| State | — | — | ||||||
| — | — | |||||||
| Total | $ | 8 | $ | 2 | ||||
| The components of the net deferred income tax liabilities consist of the following: | ||||||||
| Year Ended December 31, | ||||||||
| 2016 | 2015 | |||||||
| Deferred income tax assets: | ||||||||
| Equity and deferred compensation | 272 | 174 | ||||||
| Net operating loss | 2,728 | 2,092 | ||||||
| State net operating loss carry forward | 689 | 485 | ||||||
| Other, net | — | — | ||||||
| Total deferred tax assets | 3,689 | 2,752 | ||||||
| Valuation allowance | (3,628 | ) | (2,422 | ) | ||||
| 61 | 330 | |||||||
| Deferred income tax liabilities: | ||||||||
| Depreciation and depletion | (61 | ) | (330 | ) | ||||
| Net deferred income tax liabilities | $ | — | $ | — | ||||
As of December 31, 2016, we had approximately $9,035,000 in net operating loss carryforwards for each federal and state income tax purposes. In assessing the realizability of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management has concluded that there is no assurance that the company will have taxable income in the future; therefore 100% of the deferred income tax assets is not recognized. We consider the scheduled reversal of deferred tax assets, the level of historical taxable income and tax planning strategies in making the assessment of the realizability of deferred tax assets. We have identified the U.S. federal and California as our "major" tax jurisdiction. With limited exceptions, we remain subject to IRS examination of our income tax returns filed within the last three (3) years, and to California Franchise Tax Board examination of our income tax returns filed within the last four (4) years.