|12 Months Ended|
Dec. 31, 2015
Note 15 - Income tax
The Company and its subsidiary, WCI, are taxed as C-Corporations for federal income tax purposes. CAST and MCB are LLCs which are disregarded entities for income tax purposes, therefore, CASTs and MCBs taxable income or loss is reported by their respective shareholders.
The provision (benefit) for income taxes for the years ended December 31, 2015 and 2014 consist of the following:
The Company has net deferred tax assets resulting from a timing difference in recognition of deferred revenue and from net operating loss carryforwards.
At December 31, 2015, the Company had approximately $4,500,000 of federal net operating loss carryforwards that begin expiring in 2032, $3,170,000 of California net operating loss carryforwards that begin expiring in 2022, $1,680,000 of Arizona net operating loss carryforwards that begin expiring in 2027 and $35,000 of Georgia net operating loss carryforwards that begin expiring in 2035.
The income tax provision (benefit) differs from the amount computed by applying the US federal income tax rate of 34% to net income (loss) before income taxes for the years ended December 31, 2015 and 2014 as a result of the following:
The significant components of deferred income tax assets as of December 31, 2015 and 2014 after applying enacted corporate income tax rates are as follows:
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef