Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of income before income taxes
The components of loss before income taxes consist of the following (in thousands):
 
Year Ended December 31,
 
2018
 
2017
 
2016
Loss before income taxes:
 

 
 

 
 

Domestic
$
(1,631
)
 
$
(11,524
)
 
$
(10,834
)
Foreign
(1,688
)
 
(558
)
 
(593
)
Total loss before income taxes
$
(3,319
)
 
$
(12,082
)
 
$
(11,427
)
Schedule of provision for income tax expense (benefit)
The provision for income tax expense (benefit) consists of the following (in thousands):
 
Year Ended December 31,
 
2018
 
2017
 
2016
Current:
 

 
 

 
 

U.S. Federal
$
(8
)
 
$
(175
)
 
$
(6
)
State
591

 
35

 
50

Foreign
(314
)
 
(211
)
 
(249
)
Total current
269

 
(351
)
 
(205
)
Deferred:
 

 
 

 
 

U.S. Federal

 

 

State
11

 
(12
)
 
12

Foreign
18

 
5

 
(59
)
Total deferred
29

 
(7
)
 
(47
)
Total provision for income tax benefit
$
298

 
$
(358
)
 
$
(252
)
Total income tax expense differs from the expected income tax expense
Total income tax expense (benefit) differs from the expected income tax expense (benefit), computed by applying the federal statutory rate of 21% in 2018, and 34% in both 2017 and 2016, to earnings before income taxes as follows (in thousands):
 
Year Ended December 31,
 
2018
 
2017
 
2016
Expected income tax benefit
$
(697
)
 
$
(4,107
)
 
$
(3,885
)
Federal R&D credit
(32
)
 
(24
)
 
(17
)
Refundable AMT credit
(12
)
 
(172
)
 

Effect of deferred rate change
8

 
11,851

 
(162
)
Foreign tax
38

 
(87
)
 
(105
)
Non-deductible stock issuance costs
85

 
186

 
(24
)
Foreign unremitted earnings
130

 
(20
)
 
58

Change in valuation allowance
408

 
(7,764
)
 
4,566

State income taxes, net of federal tax effect
455

 
(306
)
 
(789
)
Other, net
(85
)
 
85

 
106

Total provision for income tax expense (benefit)
$
298

 
$
(358
)
 
$
(252
)
Schedule of tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities)
The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are presented below (in thousands):
 
December 31,
 
2018
 
2017
Deferred tax assets:
 

 
 

Inventory provisions and uniform capitalization
$
1

 
$
42

Accounts receivable allowances
13

 
3

Non-qualified stock option and restricted stock expense
184

 
447

Deferred revenue
101

 
147

Loss and credit carryforwards of U.S. subsidiary
24,101

 
23,996

Loss carryforward of foreign subsidiaries
283

 
430

Excess interest expense
298

 

Other accruals and reserves
169

 
407

Fixed assets
3

 

Other

 
58

Total deferred tax assets before valuation allowance
25,153

 
25,530

Less valuation allowance
(24,153
)
 
(24,285
)
Total deferred tax assets
$
1,000

 
$
1,245

Deferred tax liabilities:
 

 
 

Acquired intangibles
$
(901
)
 
$
(1,321
)
Other
(46
)
 

Total deferred tax liabilities
$
(947
)
 
$
(1,321
)
Total net deferred tax assets (liabilities)
$
53

 
$
(76
)
Reconciliation of the beginning and ending amounts of gross unrecognized tax benefits
reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is presented in the table below (in thousands):
 
Year Ended December 31,
 
2018
 
2017
Gross unrecognized tax benefits at beginning of year
$
1,136

 
$
1,042

Increases related to:
 

 
 

Prior year income tax positions
2

 
70

Current year income tax positions
586

 
24

Gross unrecognized tax benefits at end of year
$
1,724

 
$
1,136