Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Consolidated Income (Loss) From Operations before Income Taxes, By Domestic and Foreign Entities

The consolidated income (loss) from operations before income taxes, by domestic and foreign entities, is as follows (in thousands):



	Year-Ended December 31,
	2019			2018
Domestic	$	3,157		$	(459	)
Foreign	(4,166		)	4,457
Total	$	(1,009	)	$	3,998

Reconciliation of the Difference between Expected Income Tax Expense (Benefit) from Operations

A reconciliation of the difference between the expected income tax expense (benefit) from operations at the U.S. federal statutory corporate tax rate of 21% and the Company’s effective tax rate is as follows (in thousands):



	Year Ended December 31,
	2019			2018
Income tax benefit computed at statutory rate	$	(212	)	$	840
Items not deductible for tax purposes	297			437
Change in valuation allowance	514			(79		)
Impact of Tax Reform Act	—			170
State taxes	443			576
Foreign exchange rate difference	(330		)	(80		)
Net operating loss adjustments	246			421
Prior year return-to-provision true-up	(446		)	426
Other	649			59
Provision for income taxes	$	1,161		$	2,770

Summary of Current and Deferred Income Tax Expense (Benefit)

Current and deferred income tax expense (benefit) is summarized as follows (in thousands):



	December 31,
	2019			2018
Current
Domestic	$	(53	)	$	93
State	443			577
Foreign	295			1,856
Total Current	685			2,526
Deferred
Domestic	568			352
State	12			21
Foreign	(104		)	(129		)
Total Deferred	476			244
Provision for income taxes	$	1,161		$	2,770

Components of the Deferred Tax Asset (Liability)

The components of the deferred tax asset (liability) are as follows (in thousands):



	Year Ended December 31,
	2019			2018
Deferred tax assets:
Allowance for doubtful accounts	$	226		$	105
Inventory reserve	66			67
Property and equipment	1,465			1,078
Accrued expenses	858			1,276
Deferred revenue	847			643
State tax - deferred	1,914			1,724
Net operating loss carryforwards	13,732			14,114
Other	4,747			3,992
	23,855			22,999
Less - Valuation allowance	22,657			22,143
Total deferred tax assets	1,198			856
Deferred tax liabilities:
Other	(1,952		)	(1,434		)
Total deferred tax liabilities	(1,952		)	(1,434		)
Deferred tax liabilities, net	$	(754	)	$	(578	)