Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of Income (Loss) before Income Taxes

The components of income (loss) before income taxes for the years ended December 31, 2019, 2018 and 2017 were as follows (in thousands):



	2019		2018			2017
Domestic	$	1,994	$	(10,552	)	$	(11,089	)
Foreign	2,177		3,565			(5,184		)
Total income (loss) before income taxes	$	4,171	$	(6,987	)	$	(16,273	)

Schedule of Provision for Income Tax Expense (Benefit)

The provision for income tax expense included the following for the years ended December 31, 2019, 2018 and 2017 (in thousands):



	2019			2018			2017
Current:
Federal	$	(10	)	$	(20	)	$	(39	)
Foreign	168			141			193
Total	158			121			154
Deferred:
Federal	—			(211		)	(73		)
State	(18		)	12			15
Foreign	549			692			188
Total	531			493			130
Total tax expense	$	689		$	614		$	284

Components of Net Deferred Tax Assets (Liabilities)

The components of the Company's net deferred tax assets as of December 31, 2019 and 2018 were as follows (in thousands):



	2019			2018
Deferred tax assets:
Domestic tax loss carryforwards	$	31,974		$	31,904
Foreign tax loss carryforwards	6,098			6,177
Stock-based compensation	3,129			3,707
Tax credits	3,860			3,037
Operating lease liability	3,121			—
Lease incentive obligation	—			790
Other assets	2,062			2,242
Valuation allowance	(38,603		)	(39,040		)
Total deferred tax assets	11,641			8,817
Deferred tax liabilities:
Fixed assets	821			460
Intangible assets	491			557
Capitalized contract costs	4,468			3,898
Right of use assets	2,478			—
Other liabilities	21			—
Total deferred tax liabilities	8,279			4,915
Net deferred tax asset	$	3,362		$	3,902

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the difference between the effective income tax rate and the statutory federal income tax rate for the years ended December 31, 2019, 2018 and 2017 is as follows:



	2019		2018		2017
U.S. statutory federal rate	21.0	%	21.0	%	34.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit	3.7		7.8		2.5
Change in U.S. federal statutory rate	—		—		(102.2	)
Nondeductible expenses	8.0		(13.5	)	(10.5	)
Effect of foreign tax rate differential	2.3		(0.5	)	(5.3	)
Uncertain tax positions	4.9		(3.3	)	(1.6	)
Research and development credit	(24.8	)	15.1		5.6
Change in valuation allowance	(12.0	)	(36.4	)	77.1
Expiration of NOL	4.0		(1.0	)	(0.2	)
Change in U.S. state statutory rate	4.0		0.6		(1.7	)
Other	5.4		1.4		0.6
Effective tax rate	16.5	%	(8.8	)%	(1.7	)%

Schedule of Unrecognized Tax Benefits Roll Forward

The following table shows the changes in unrecognized tax benefits in accordance with ASC 740-10 for the years ended December 31, 2019, 2018 and 2017 (in thousands):



	2019			2018			2017
Balance as of January 1,	$	1,408		$	1,282		$	766
Increases related to current tax positions	183			217			199
Increases related to prior year tax positions	20			12			317
Decreases related to prior year tax positions	(10		)	(103		)	—
Balance as of December 31,	$	1,601		$	1,408		$	1,282