Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
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,
 
2019
 
2018
 
2017
Loss before income taxes:
 

 
 

 
 

Domestic
$
(5,466
)
 
$
(1,631
)
 
$
(11,524
)
Foreign
(1,171
)
 
(1,688
)
 
(558
)
Total loss before income taxes
$
(6,637
)
 
$
(3,319
)
 
$
(12,082
)
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,
 
2019
 
2018
 
2017
Current:
 

 
 

 
 

U.S. Federal
$

 
$
(8
)
 
$
(175
)
State
17

 
591

 
35

Foreign
(246
)
 
(314
)
 
(211
)
Total current
(229
)
 
269

 
(351
)
Deferred:
 

 
 

 
 

U.S. Federal

 

 

State
8

 
11

 
(12
)
Foreign
27

 
18

 
5

Total deferred
35

 
29

 
(7
)
Total provision for income tax expense (benefit)
$
(194
)
 
$
298

 
$
(358
)
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 both 2019 and 2018, and 34% in 2017, to earnings before income taxes as follows (in thousands):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Expected income tax benefit
$
(1,393
)
 
$
(697
)
 
$
(4,107
)
Federal R&D credit
(54
)
 
(32
)
 
(24
)
Refundable AMT credit

 
(12
)
 
(172
)
Effect of deferred rate change

 
8

 
11,851

Foreign tax
27

 
38

 
(87
)
Non-deductible stock issuance costs
3

 
85

 
186

Foreign unremitted earnings

 
130

 
(20
)
Change in valuation allowance
1,379

 
408

 
(7,764
)
State income taxes, net of federal tax effect
(219
)
 
455

 
(306
)
Other, net
63

 
(85
)
 
85

Total provision for income tax expense (benefit)
$
(194
)
 
$
298

 
$
(358
)
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,
 
2019
 
2018
Deferred tax assets:
 

 
 

Inventory provisions and uniform capitalization
$

 
$
1

Accounts receivable allowances
8

 
13

Non-qualified stock option and restricted stock expense
220

 
184

Deferred revenue
218

 
101

Lease liabilities
290

 

Loss and credit carryforwards of U.S. subsidiary
24,717

 
24,101

Loss carryforward of foreign subsidiaries
145

 
283

Excess interest expense
496

 
298

Other accruals and reserves
101

 
169

Total deferred tax assets before valuation allowance
26,195

 
25,150

Less valuation allowance
(25,406
)
 
(24,153
)
Total deferred tax assets
$
789

 
$
997

Deferred tax liabilities:
 

 
 

Acquired intangibles
$
(465
)
 
$
(901
)
Right of use assets
(207
)
 

Fixed assets
(26
)
 
3

Other
(70
)
 
(46
)
Total deferred tax liabilities
$
(768
)
 
$
(944
)
Total net deferred tax assets
$
21

 
$
53

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,
 
2019
 
2018
Gross unrecognized tax benefits at beginning of year
$
1,724

 
$
1,136

Increases related to:
 

 
 

Prior year income tax positions
7

 
2

Current year income tax positions
49

 
586

Gross unrecognized tax benefits at end of year
$
1,780

 
$
1,724

I