Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income (Loss) Before Income Taxes

Components of income (loss) before income taxes (in thousands):

	Years ended December 31,
	2019		2018
United States operations	$	(12,567)	$	(16,144)
Foreign operations	(7,623)		(6,643)
Income (loss) before income taxes	$	(20,190)	$	(22,787)

Schedule of Components of Income Tax Expense (Benefit)

Components of income tax expense (benefit) (in thousands):

	Years ended December 31,
	2019		2018
Current:
United States federal	$	454	$	612
State and local	98		53
Foreign	546		367
Total current	1,098		1,032
Deferred:
United States federal	(54)		338
State and local	—		—
Foreign	24		832
Total deferred	(30)		1,170
Total income tax expense (benefit)	$	1,068	$	2,202

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differs from “expected” income tax expense (computed by applying the U.S. federal income tax rate of 21% in 2019 and 2018) due to the following (in thousands):

	Years ended December 31,
	2019		2018
United States federal tax expense (benefit) at statutory rate	$	(4,240)	$	(4,785)
State taxes, net of United States federal tax expense (benefit)	607		(694)
Change in valuation allowance	4,389		5,804
Non-deductible stock compensation	253		448
Impact of non-U.S. jurisdictional tax rate difference	(311)		(117)
Research and development tax credit	(125)		(12)
Increase (reversal) of unrecognized tax benefits	96		—
Basis difference in investment	—		159
Non-U.S. withholding tax	283		470
Change in indefinite reinvestment assertion	(72)		998
Other	188		(69)
Total income tax expense (benefit)	$	1,068	$	2,202

Schedule of Net Deferred Tax Assets

Net deferred tax assets, which are recorded at December 31, 2019 and December 31, 2018 using a 21% tax rate in the U.S. following the passage of the Tax Act, are comprised of the following (in thousands):

	December 31,
	2019		2018
Deferred tax assets:
United States federal net operating loss carryforwards	$	85,270	$	62,983
Deferred expenses	3,226		660
Research and development tax credit carryforwards	19,694		24,523
Right of use tax asset	2,696		—
Stock-based compensation	2,697		2,603
State net operating loss carryforwards	13,880		11,971
Foreign net operating loss carryforwards	34,079		31,254
Deferred revenue	900		67
Equipment, software, and leasehold improvements	2,922		2,642
Intangibles	6,216		13
Net unrealized gains and basis differences on investments	—		1,193
Other	455		839
Gross deferred tax assets	172,035		138,748
Less valuation allowance	160,783		137,246
Gross deferred tax assets, net of valuation allowance	$	11,252	$	1,502
Deferred tax liabilities:
Other intangible assets	$	(4,667)	$	(155)
Right of use tax liability	(2,333)		—
Undistributed foreign earnings	(909)		(1,001)
Other	(838)		(663)
Net unrealized gains and basis differences on investments	(2,916)		—
Gross deferred tax liabilities	(11,663)		(1,819)
Net deferred tax assets (liabilities)	$	(411)	$	(317)

Schedule of Unrecognized Tax Benefits

Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits (in thousands):

	Years ended December 31,
	2019		2018
Balance, beginning of year	$	374	$	358
Increases related to prior year tax positions	4,125		8
Decreases related to prior year tax positions	(85)		—
Increases related to current year tax positions	606		8
Balance, end of year	$	5,020	$	374