Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.7.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
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,
 
2016
 
2015
 
2014
Loss before income taxes:
 

 
 

 
 

Domestic
$
(10,834
)
 
$
(26,889
)
 
$
(26,271
)
Foreign
(593
)
 
(2,639
)
 
(2,636
)
Total loss before income taxes
$
(11,427
)
 
$
(29,528
)
 
$
(28,907
)
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,
 
2016
 
2015
 
2014
Current:
 

 
 

 
 

U.S. Federal
$
(6
)
 
$
(3
)
 
$
(122
)
State
50

 
27

 
35

Foreign
(249
)
 
(817
)
 
(96
)
Total current
(205
)
 
(793
)
 
(183
)
Deferred:
 

 
 

 
 

U.S. Federal

 
1

 
(5,693
)
State
12

 
(47
)
 
(562
)
Foreign
(59
)
 

 
(126
)
Total deferred
(47
)
 
(46
)
 
(6,381
)
Total provision for income tax benefit
$
(252
)
 
$
(839
)
 
$
(6,564
)
Total income tax expense differs from the expected income tax expense
Total income tax benefit differs from the expected income tax benefit, computed by applying the federal statutory rate of 34% to earnings before income taxes as follows (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Expected income tax benefit
$
(3,885
)
 
$
(10,040
)
 
$
(9,828
)
State income taxes, net of federal tax effect
(789
)
 
(830
)
 
(347
)
Change in tax rate
(162
)
 
48

 
20

Foreign tax
(105
)
 
80

 
690

Non-deductible stock issuance costs
(24
)
 

 

Federal R&D credit
(17
)
 
(82
)
 
(88
)
Foreign unremitted earnings
58

 

 

Change in valuation allowance
4,566

 
9,906

 
2,957

Other, net
106

 
79

 
32

Total provision for income tax benefit
$
(252
)
 
$
(839
)
 
$
(6,564
)
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,
 
2016
 
2015
Deferred tax assets:
 

 
 

Inventory provisions and uniform capitalization
$

 
$
24

Accounts receivable allowances
12

 
9

Non-qualified stock option and restricted stock expense
961

 
1,789

Deferred revenue
408

 
76

Loss and credit carryforwards of U.S. subsidiary
33,673

 
28,366

Loss carryforward of foreign subsidiaries
1

 
382

Other accruals and reserves
674

 
1,108

Other
(349
)
 
122

Total deferred tax assets before valuation allowance
35,380

 
31,876

Less valuation allowance
(32,930
)
 
(28,928
)
Total deferred tax assets
$
2,450

 
$
2,948

Deferred tax liabilities:
 

 
 

Acquired intangibles
$
(2,526
)
 
$
(3,067
)
Fixed Assets
(148
)
 
(399
)
Total deferred tax liabilities
$
(2,674
)
 
$
(3,466
)
Total net deferred tax assets (liabilities)
$
(224
)
 
$
(518
)
Reconciliation of the beginning and ending amounts of gross unrecognized tax benefits
A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is presented in the table below (in thousands):
 
Year Ended December 31,
 
2016
 
2015
Gross unrecognized tax benefits at beginning of year
$
970

 
$
900

Increases related to:
 

 
 

Prior year income tax positions
58

 
2

Current year income tax positions
14

 
68

Gross unrecognized tax benefits at end of year
$
1,042

 
$
970