18. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income tax expense (benefits)

The components of the provision (benefit) for income taxes are as follows for the years ending December 31, 2016 and 2015 (in thousands):

		Year Ended December 31,
		2016		2015
Current:
Federal	$	455	$	6,923
State		356		508
Foreign		(172)		207
Total current provision		639		7,638
Deferred Provision:
Federal		(189)		(1,329)
State		(11)		(551)
Foreign		-		1,304
Total deferred provision (benefit)		(200)		(576)
Total	$	439	$	7,062

Deferred income taxes

The sources of the temporary differences and their effect on deferred taxes are as follows (in thousands): 

		Year Ended December 31,
		2016		2015
Deferred tax assets:
Accruals and other reserves	$	36,052	$	24,205
Intangibles		4,414		-
Inventory		1,157		985
Stock awards		4,532		3,757
Net operating loss carryovers		33,241		8,038
Gross deferred tax assets		79,396		36,985
Valuation allowance		(79,373)		(31,453)
Net deferred tax asset		23		5,532
Deferred tax liabilities:
Fixed Assets		(23)		(1,021)
Intangibles		-		(4,713)
Gross deferred tax liability		(23)		(5,734)
Net deferred tax asset/(liability)		-		(202)
Included in consolidated balance sheet:
Deferred income tax assets/(liabilities) - current		-		-
Deferred income tax assets/(liabilities) - long-term		-		(202)
Net deferred tax asset/(liability)	$	-	$	(202)

Effective on income tax rate from continuing operations

The effective income tax rate from continuing operations is different from the federal statutory rate for the years ended December 31, 2016 and 2015 for the following reasons:

	Year Ended December 31,
	2016		2015
Expected taxes at statutory rates	35.0	%	35.0	%
State taxes, net of federal tax benefit	(0.1)	%	-
Foreign income tax rate differential	(10.0)	%	(13.6)	%
Amortization and impairment of goodwill	(8.7)	%	(2.0)	%
Mark to market adjustment	4.3	%	-
Deductible inducement payment	3.3	%	2.0	%
Change in valuation allowance	(25.2)	%	(21.7)	%
Change in liability for uncertain tax positions	-		(4.8)	%
Permanent differences and other	1.1	%	0.1	%
	(0.3)	%	(5.0)	%

Reconciliation of beginning and ending amount of unrecognized tax benefits

The following summarizes the activity related to the Company's unrecognized tax benefits (in thousands):

		Year Ended December 31,
		2016		2015
Balance at beginning of year	$	7,410	$	-
Tax positions taken in prior periods		-		-
Tax positions taken in current year		-		7,410
Accrual of interest related to tax positions taken		-		-
Settlements		-		-
Foreign currency translation		-		-
Balance at end of year	$	7,410	$	7,410