Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of Income/(Loss) Before Income Taxes

Income (loss) from operations before income taxes consisted of the following (in thousands):

	Year ended December 31,
	2019		2018
Domestic	$	(26,003)	$	(22,050)
Foreign		(774)		(1,045)
Loss from operations before income taxes	$	(26,777)	$	(23,095)

Schedule of Income Tax Benefit (Expense)

Income tax expense consisted of the following (in thousands):

	Year ended December 31,
	2019		2018
Current (expense) benefit:
State	$	(68)	$	(53)
International		(10)		6
Deferred (expense) benefit:
Federal		33		(45)
State		(16)		(17)
International		—		14
Total income tax expense	$	(61)	$	(95)

Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate

The reconciliation of the federal statutory income tax rate of 21% for the years ended December 31, 2019 and 2018, to our effective income tax rate is as follows (in thousands):

	Year ended December 31,
	2019		2018
Expected income tax benefit at U.S. statutory rate	$	5,623	$	4,856
Difference between U.S. and foreign taxes		(21)		(4)
State tax benefit, net of federal taxes		734		461
Stock-based compensation		(327)		459
Meals and entertainment		(118)		(120)
Non-deductible officer compensation		(339)		(907)
Deferred tax changes due to new tax rate and other adjustments		243		1,043
Valuation allowance		(5,836)		(5,888)
Other		(20)		5
Total income tax expense	$	(61)	$	(95)

Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands):

	December 31,		December 31,
	2019		2018
Deferred tax assets:
Accrued liabilities not currently deductible	$	1,248	$	1,929
Intangible assets—excess of tax basis over financial statement basis		15,464		17,729
Federal impact of deferred state taxes		6		3
Net operating losses		61,706		52,751
Stock-based compensation		1,670		1,761
Other		433		410
Total deferred tax assets		80,527		74,583
Deferred tax liabilities:
Intangible assets—excess of financial statement basis over tax basis		(143)		(206)
Property and equipment		(1,158)		(986)
Total deferred tax liabilities		(1,301)		(1,192)
Valuation allowance		(79,289)		(73,477)
Net deferred tax liabilities	$	(63)	$	(86)
Current	$	—	$	—
Non-current		(63)		(86)
	$	(63)	$	(86)