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the Company files income tax returns in the U.s. federal jurisdiction and various state jurisdictions. the Company has not been audited by any state for income taxes with the exception of returns filed in Michigan which have been audited through 2004, income tax returns filed in Massachusetts which have been audited through 2007 and income tax returns filed in Florida which have been audited through 2009. the Company’s federal tax return for 2008 has been audited. Federal and state tax returns for the years 2011 through 2013 remain open to examination by the IRs and various state jurisdictions. 

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (“UtB”) resulting from uncertain tax positions is as follows (in thousands): 

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the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of December 31, 2014 and 2013, are $425,000 and $275,000, respectively, for each year. 

the total amount of accrued interest and penalties on uncertain tax positions at December 31, 2014 and 2013 was $195,000 and $0, respectively. 

At December 31, 2014, all of the unrecognized tax benefits relate to tax returns of a specific state jurisdiction that are currently under examination. Accordingly, the Company expects a reduction of this amount during 2015, since the Company expects to resolve this examination in 2015. 

## (11) net income Per Share 

Basic income per share is based upon the weighted average common shares outstanding during each year. Diluted income per share is based upon the weighted average of common shares and dilutive common stock equivalent shares outstanding during each year. the weighted average number of shares used to compute both basic and diluted income per share consisted of the following (in thousands): 

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