Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of Income Tax Expense (Benefit) Attributable to Current Operations

The significant components of our income tax (benefit) expense attributable to current operations for the periods stated were as follows:



	For the Year Ended December 31,
(Dollars in thousands)	2019			2018			2017
(Loss) income before income tax (benefit) expense	$	(13,423	)	$	(2,185	)	$	11,559
Current:
Federal tax	$	—		$	—		$	199
State tax	582			838			1,006
Foreign tax	13			148			270
Total current	595			986			1,475
Deferred:
Federal tax	(2,121		)	(1,467		)	26,348
State tax	(1,239		)	(532		)	(787		)
Foreign tax	107			307			(171		)
Total deferred	(3,253		)	(1,692		)	25,390
Total income tax (benefit) expense	$	(2,658	)	$	(706	)	$	26,865

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes the principal elements of the difference between the United States Federal statutory rate of 21% and our effective tax rate:



Effective tax rate reconciliation	2019					2018					2017
(Dollars in thousands)
(Loss) income before income tax (benefit) expense	$	(13,423	)			$	(2,185	)			$	11,559
Income taxes computed at the Federal statutory rate	$	(2,819	)	21.0	%	$	(459	)	21.0	%	$	4,046		35.0	%
State income taxes, net of Federal benefit	(567		)	4.2	%	306			(14.0	)%	472			4.1	%
Goodwill impairment	2,243			(16.7	)%	—			—	%	—			—	%
Impact of 2017 Tax Act	—			—	%	—			—	%	24,235			209.7	%
Research and development and other tax credits	(1,790		)	13.3	%	(1,144		)	52.4	%	(1,775		)	(15.4	)%
Excess executive compensation	322			(2.4	)%	281			(12.9	)%	—			—	%
Other	(47		)	0.4	%	310			(14.2	)%	(113		)	(1.0	)%
(Benefit from) provision for income taxes	$	(2,658	)	19.8	%	$	(706	)	32.3	%	$	26,865		232.4	%

Schedule of Deferred Income Tax Assets

The components of deferred income tax assets at December 31, 2019 and 2018 were as follows:



	December 31,
(Dollars in thousands)	2019				2018
Capitalized research and development costs	$	18,605			$	14,219
Net operating loss carryforward	15,978				18,851
Property and equipment	6,092				5,969
Accrued liabilities, reserves and other expenses	3,718				3,837
Research and development credits	4,140				2,360
Tax credits	1,467				2,141
Stock based compensation	1,600			12	1,739
Other	121				200
Gross deferred income tax assets	51,721				49,316
Deferred income tax liabilities:
Intangible assets	(2,430		)		(2,711		)
Prepaid and other expenses	(308		)		(121		)
Gross deferred income tax liabilities	$	(2,738	)		$	(2,832	)
Net deferred income tax assets	$	48,983			$	46,484