Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Expense (Benefit) for Income Taxes

Income tax expense was as follows:



(in thousands)	For the Year Ended December 31,
	2018			2017
Current tax expense
Federal	$	198		$	127
State	27			77
Total current tax expense	$	225		$	204

Deferred tax (benefit) expense
Federal	(149		)	$	100
State	93			139
Total deferred tax (benefit) expense	(56		)	239
Total tax expense	$	169		$	443

Reconciliation of Effective Tax Rate to the Statutory Rate

The Company received net cash refunds for income taxes of $0.2 million and $6.3 million in 2018 and 2017, respectively.

A reconciliation between the Company’s

Schedule of Significant Components of the Deferred Income Tax Assets and Liabilities

Significant components of deferred income tax assets and liabilities consisted of the following:



(in thousands)	As of December 31,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	19,006		$	15,399
Research and development credits	3,858			2,806
Other state credits	1,923			989
Inventory	2,203			2,560
Allowances and bad debts	840			596
Accrued warranty	5,732			3,387
Accrued wages and benefits	413			351
Other accrued expenses	5,281			2,906
Stock-based compensation	649			645
Capitalized research and development costs	770			1,090
Intangible amortization	2,240			1,734
Contract liabilities (deferred revenue)	495			339
Other	2,490			152
Total deferred tax assets	45,900			32,954
Valuation allowance	(44,405		)	(31,992		)
Total deferred tax assets, net of valuation allowance	$	1,495		$	962

Deferred tax liabilities:
Tax depreciation in excess of book depreciation on property, plant and equipment	(2,142		)	(1,665		)
Total deferred tax liabilities	$	(2,142	)	$	(1,665	)

Net deferred tax liability	$	(647	)	$	(703	)

Schedule of the Change in Unrecognized Tax Benefits

The change in unrecognized tax benefits excluding interest and penalties were as follows:



(in thousands)	For the Year Ended December 31,
	2018			2017
Balance at beginning of year	$	1,307		$	1,202
Additions based on tax positions related to the current year	193			105
Reductions for tax positions of prior years	(79		)	—
Balance at end of year	$	1,421		$	1,307

Summary of Income Tax Examinations

With few exceptions, the major jurisdictions subject to examination by the relevant tax authorities and open tax years, stated as the Company’s fiscal years, are as follows:



Jurisdiction	Open Tax Years
U.S. Federal	2014	-	2018
U.S. States	2013	-	2018