K. INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income or loss from operations before income taxes

	Year ended December 31,
	2015			2014		2013
	(in thousands)
Domestic	$	14,062		$	1,226	$	(684	)
Foreign (loss) income		(2,894	)		3,256		(722	)
Total income (loss)	$	11,168		$	4,482	$	(1,406	)

Provision for income tax expense

	2015		2014		2013
Current:	(in thousands)
Federal	$	168	$	193	$	–
State		207		6		–
Foreign		–		–		–
Total	$	375	$	199	$	–
Deferred:
Federal	$	–	$	–	$	–
State		–		–		–
Foreign		–		–		–
Total	$	–	$	–	$	–
Income tax expense	$	375	$	199	$	–

Net deferred tax assets and liabilities

	2015			2014
	(in thousands)
NOL carryforward	$	14,318		$	12,266
Inventory reserves		1,616			676
AMT credit		347			224
Unrealized gains and losses		1,549			470
Stock compensation		1,084			550
Fixed assets and intangibles		(4,432	)		(1,537	)
Other		244			25
		14,726			12,674
Less valuation allowance		(14,726	)		(12,674	)
Deferred tax assets, net	$	–		$	–

Reconciliation of the U.S. federal income tax rate

	2015			2014			2013
	(in thousands)
Expected (benefit) taxes	$	3,797		$	1,524		$	(467	)
Non-deductible expenses		157			138			619
Foreign differences		(1,267	)		295			–
Increase (decrease) in valuation allowance		2,052			(1,729	)		(7,533	)
Section 382 limitation		(4,382	)		–			7,423
Other		18			(29	)		(42	)
Tax expense	$	375		$	199		$	–

Schedule of unrecognized tax benefits

	2015			2014			2013
	(in thousands)
Unrecognized tax benefits — January 1	$	1,659		$	2,200		$	–
Gross increases — tax positions in prior period		332			1,659			2,200
Gross decreases — tax positions in prior period		(194	)		(2,200	)		–
Unrecognized tax benefits — December 31	$	1,797		$	1,659		$	2,200