Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Summary of Loss before Income Taxes

The Company’s loss before income taxes for the years ended December 31, 2019 and 2018 is comprised of the following (in thousands):

	Year Ended December 31,
	2019			2018
Domestic	$	(39,187	)	$	(7,335	)
Foreign	(387		)	7
Loss before income taxes	$	(39,574	)	$	(7,328	)

Summary of Provision for Income Taxes

The provision for income taxes for the years ended December 31, 2019 and 2018 is comprised of the following (in thousands):

	Year Ended December 31,
	2019			2018
Current:
Federal	$	(49	)	$	—
State	35			35
Foreign	1,148			766
Total current	1,134			801
Deferred:
Federal	12			12
State	—			—
Foreign	(610		)	2
Total deferred	(598		)	14
Provision for income taxes	$	536		$	815

Summary of Net Deferred Tax Assets

The Company’s net deferred tax liabilities consist of the following (in thousands):

	December 31,
	2019			2018
Deferred tax assets:
Provision for excess and obsolete inventory	$	2,003		$	2,710
Depreciation and amortization	—			1,426
Interest expense limitation	5,562			2,769
Net operating loss and tax credit carryforwards	95,258			86,385
Share-based compensation	1,226			1,218
Right-of-use-asset	650			—
Unrecognized tax benefits	1,288			1,163
Deferred tax assets	105,987			95,671
Deferred tax liabilities:
Operating lease liability	(650		)	—
Purchased intangible assets	(3,623		)	(4,485		)
Depreciation and amortization	(1,742		)	—
Accrued expenses	(219		)	(1,799		)
Deferred tax liabilities	(6,234		)	(6,284		)
Valuation allowance	(103,702		)	(93,844		)
Net deferred tax liabilities	$	(3,949	)	$	(4,457	)

Summary of Provision for Income Taxes Reconciles to Amount Computed by Applying Statutory Federal Income Tax Rate

The provision for income taxes reconciles to the amount computed by applying the statutory federal income tax rate of 21% in 2019 and 2018 to loss before income taxes as follows (in thousands):

	Year Ended December 31,
	2019			2018
Federal tax benefit, at statutory rate	$	(8,311	)	$	(1,555	)
State benefit, net of federal benefit	27			27
Foreign tax rate difference	476			24
Valuation allowance against future tax benefits	9,168			2,878
Research and development credits	(1,456		)	(471		)
Share-based compensation	341			121
Other	291			(209		)
Provision for income taxes	$	536		$	815

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

Balance at December 31, 2017	$	36,582
Increases related to current and prior year tax positions	324
Balance at December 31, 2018	36,906
Increases related to current and prior year tax positions	929
Balance at December 31, 2019	$	37,835