Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax Expense Attributable to Income

Income tax expense attributable to income included the following:

	Year Ended December 31,
(in thousands)	2015		2014
Current income tax expense:
United States federal	$	—	$	—
State and local		157		291
Total current income tax expense		157		291
Deferred income tax expense:
United States federal		—		(902	)
State and local		36		1,211
Total deferred income tax expense		36		309
Income tax expense	$	193	$	600

Reconciliation of Income Tax Expense and Domestic Federal Statutory Income Tax Benefit

Reconciliation of income tax expense and the domestic federal statutory income tax benefit is as follows:

	Year Ended December 31,
(in thousands)	2015			2014
Statutory federal income tax benefit	$	(396	)	$	(3,274	)
Increase (reduction) from:
State taxes (net of federal benefit)		193			600
Change in valuation allowance		2,632			3,096
Provision to return adjustment - capital loss		(1,325	)		—
Amortization of goodwill		(621	)		(621	)
Non-deductible expenses		181			156
Other		(471	)		643
Income tax expense	$	193		$	600

Deferred Tax Assets (Liabilities)

The tax effects of each type of temporary difference and carryforward that give rise to a significant portion of deferred tax assets (liabilities) at December 31, 2015 and 2014 were as follows:

	December 31,
(in thousands)	2015			2014
Deferred tax assets attributable to:
Net operating loss carryforwards	$	31,572		$	27,645
Tax credit carryforwards		7,622			7,622
Reserves		4,259			4,864
Inventory		4,260			5,090
Deferred financing costs		—			2,064
Fixed assets		—			263
Deferred revenue		4,417			3,853
Intangibles		5,594			5,434
Other		2,295			1,895
Total gross deferred tax assets		60,019			58,730
Valuation allowance		(57,577	)		(54,945	)
Net deferred tax assets		2,442			3,785
Deferred tax liabilities attributable to:
Intangibles		(2,408	)		(3,798	)
Fixed assets		(34	)		—
Net deferred tax liability	$	—		$	(13	)

Deferred Tax Assets Liabilities Net

The deferred tax asset (liability) is classified as follows:

	December 31,
(in thousands)	2015		2014
Short-term deferred tax asset	$	—	$	546
Long-term deferred tax liability		—		(559	)
Net deferred tax liability	$	—	$	(13	)

Summary of Amounts and Expiration Dates of Loss and Tax Credit Carryforwards

At December 31, 2015, the amounts and expiration dates of loss and tax credit carryforwards were as follows:

(in thousands)	Amount as of December 31, 2015		Expire or start expiring at the end of:
U.S. net operating loss (1)	$	84,769	2028
U.S. federal capital losses		3,785	2019
State net operating loss carryforward (net):
State tax net operating losses		3,249	2016 – 2035
Tax credits:
Minimum tax credit		7,444	Carry forward indefinitely
Other tax credits		178	2016 – 2021
Total tax credits	$	7,622

(1) $27.8 million of the U.S. net operating loss (NOL) above is related to the VLCY acquisition.  

Reconciliation of Change in UTB Balance

A reconciliation of the change in the UTB balance for the years ended December 31, 2015 and 2014 is as follows:

	Year Ended December 31,
(in thousands)	2015			2014
Unrecognized tax benefit, beginning of period	$	6,464		$	6,389
Increases for tax positions in prior periods		—			778
Decreases for effectively settled tax positions		(228	)		(703	)
Decreases for expiration of the statute of limitations		—			—
Unrecognized tax benefit, end of period	$	6,236		$	6,464