INCOME TAX PROVISION (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Income Tax (Benefit) Expense Provision

Applicable income tax expense (benefit) provision on continuing operations is as follows:



	(In thousands)
	2015			2014			2013
Current:
Federal	$	—		$	(2,343	)	$	(1,842	)
State	(7		)	155			1
	(7		)	(2,188		)	(1,841		)
Deferred	35,789			5,544			(638		)
Total provision for income taxes	$	35,782		$	3,356		$	(2,479	)

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax liabilities shown on the balance sheet as of December 31, 2015 and 2014, are as follows:



	(In thousands)
	2015			2014
Deferred taxes – current liability	$	(1,450	)	$	(437	)
Deferred taxes – long term liability	(33,916		)	(31,132		)
Deferred taxes – current assets	486			3,315
Deferred taxes – long term assets	7,026			24,087
Net Deferred Tax Liability	$	(27,854	)	$	(4,167	)

Deferred tax assets and liabilities, shown as the sum of the appropriate tax effect for each significant type of temporary differences as of December 31, 2015 and 2014, are as follows:



	(In thousands)
	2015 Deferred Tax						2014 Deferred Tax
	Asset			Liability			Asset		Liability
Net operating loss	$	19,526		$	—		$	9,738	$	—
Accrued compensation	2,156			—			2,541		—
Stock based compensation	5,822			—			5,560		—
Tenant improvement allowance	287			—			322		—
Inventory reserves	398			—			227		—
Other deferred tax assets	1,751			—			998		—
Tax credits	1,676			—			1,514		—
Other deferred tax liabilities	—			(294		)	—		—
Convertible Debt	—			(2,495		)	—		(3,268		)
Deferred revenue – current	—			(988		)	—		(375		)
Prepaid expenses	—			(168		)	—		(63		)
Depreciation	—			(975		)	—		(1,610		)
Intangible assets amortization – Definite Lived	8,450			—			5,681		—
Intangible assets amortization – Indefinite Lived	—			(28,864		)	—		(25,127		)
Internally developed software	—			(1,582		)	—		(1,126		)
Capitalized R&D 59(e)	695			—			821		—
Less: Valuation Allowance	(33,249		)	—			—		—
	$	7,512		(35,366		)	$	27,402	(31,569		)
Net deferred liability				$	(27,854	)			$	(4,167	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the difference between the statutory federal income tax rate and the effective tax rate for the Company's continuing operations for the years ended December 31, 2015, 2014 and 2013 is as follows:



	Percent of Pre-tax Income
	2015		2014		2013
Tax computed at statutory rate	35.0	%	35.0	%	35.0	%
State income taxes net of federal income tax benefit	5.9	%	1.2	%	13.5	%
Meals and entertainment – non-deductible	3.4	%	1.4	%	(2.9	)%
Non-deductible acquisition costs	1.1	%	—	%	(1.1	)%
ESPP Expense	1.4	%	0.8	%	(0.9	)%
Other permanent items	(1.0	)%	(0.2	)%	(1.2	)%
Provision to return	1.2	%	(0.7	)%	(0.5	)%
Tax credits	(3.8	)%	(3.8	)%	3.7	%
Goodwill Impairment	—	%	—	%	—	%
Valuation Allowance	566.2	%	—	%	—	%
Effective tax rate	609.4	%	33.7	%	45.6	%

Schedule of Unrecognized Tax Benefits



	(In thousands)
	Activity
January 1, 2015	$	408
Increases as a result of tax positions taken in a prior period	25
Increases as a result of tax positions taken during the current period	50
December 31, 2015	$	483

Summary of Income Tax Examinations

As of December 31, 2015, the following tax years remained subject to examination by the major tax jurisdictions indicated:



Major Jurisdictions		Open Years
United States		2011 through 2014
California		2011 through 2014
Maryland		2010 through 2014
Massachusetts		2012 through 2014
Virginia		2012 through 2014