Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

		December 31,
		2019			2018
Deferred Tax Assets:
	Accrued expenses	$	3,759		$	3,572
	Deferred revenue	—			13,719
	Bad debts	4,859			—
	Sales return and allowances	659			2,296
	Accrued settlement costs	3,276			2,689
	Research and development and other tax credits	2,349			2,326
	Net operating loss	14,350			3,118
	Share-based compensation	3,439			3,425
	Lease obligation	1,044			—
	Other	2,124			971
Deferred Tax Liabilities:
	Prepaid expenses	(1,189		)	(1,823		)
	Right of use asset	(868		)	—
	Property and equipment	(1,582		)	(2,519		)
	Unearned insurance refund	(894		)	—
	Deferred costs of goods sold	(322		)	—
	Intangible assets	(389		)	(443		)
Net Deferred Tax Assets		30,615			27,331
	Less: Valuation allowance	(30,615		)	(27,331		)
Net Deferred Tax Assets after Valuation Allowance		$	—		$	—

Reconciliation of the Federal statutory income tax

The reconciliation of the federal statutory income tax rate of 21% for 2019 and 2018, and 35% for 2017 to the effective rate is as follows:

	December 31,
	2019		2018		2017
Federal statutory rate	21.00	%	21.00	%	35.00	%
State taxes, net of federal benefit	(1.36	)%	3.52	%	0.40	%
Nondeductible compensation	(1.49	)%	(15.33	)%	0.66	%
Meals and entertainment	(2.04	)%	(24.16	)%	1.93	%
Keyman life insurance	(0.02	)%	(0.15	)%	0.02	%
Inventory contribution deduction	0.06	%	0.48	%	(0.06	)%
Domestic production activities deduction	—	%	—	%	(1.54	)%
Fair value adjustment	—	%	—	%	(2.76	)%
Share-based compensation	(5.05	)%	10.82	%	(9.90	)%
Tax credits	0.45	%	19.75	%	(3.37	)%
Uncertain tax position	1.22	%	(2.35	)%	0.46	%
Write-off of net operating losses	—	%	(11.81	)%	—	%
Payable true-up	0.52	%	(2.69	)%	0.65	%
Sale of Stability	—	%	—	%	(8.86	)%
Fixed asset true-up	—	%	5.33	%	—	%
Federal provision to return	0.02	%	1.58	%	0.13	%
Impact of federal rate change	—	%	—	%	26.79	%
Other	(0.46	)%	(0.25	)%	(0.03	)%
Valuation allowance	(12.83	)%	(788.33	)%	(83.08	)%
	0.02	%	(782.59	)%	(43.56	)%

Schedule of current and deferred income tax expense (benefit)

Current and deferred income tax expense (benefit) is as follows (in thousands):

	December 31,
	2019			2018		2017
Current:
Federal	$	(53	)	$	614	$	5,868
State	48			427		1,163
Total current	(5		)	1,041		7,031
Deferred:
Federal	—			19,452		(19,441		)
State	—			6,089		(7,229		)
Total deferred	—			25,541		(26,670		)
Total expense (benefit)	$	(5	)	$	26,582	$	(19,639	)

Reconciliation of unrecognized tax benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands) included in other liabilities in the consolidated balance sheets:

	2019			2018		2017
Unrecognized tax benefits - January 1	$	938		$	847	$	336
Gross increases - tax positions in current period	56			91		130
Gross increases - tax positions in prior period	—			—		381
Gross decreases - lapse of statute of limitations	(367		)	—		—
Unrecognized tax benefits - December 31	$	627		$	938	$	847