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Income Taxes
6 Months Ended
Jun. 30, 2014
Income Taxes  
Income Taxes

11. Income Taxes

 

For the three month and six months ended June 30, 2014, the Company recorded a benefit for income taxes of approximately $16,000 and $30,000, respectively, consisting primarily of foreign and state income taxes offset by a deferred tax benefit resulting primarily from the reduction in the foreign deferred tax liability as a result of the amortization of the acquired intangibles relating to the acquisition of Insightera, which occurred in December 2013. The provision for income taxes for the three and six months ended June 30, 2013 was approximately $17,000 and $37,000, respectively, consisting primarily of foreign and state income taxes.

 

For the three and six months ended June 30, 2014 and 2013, the provision for income taxes differed from the statutory amount primarily due to the Company realizing no benefit for current year losses and maintaining a full valuation allowance against the U.S. and foreign net deferred tax assets, while recognizing state and foreign taxes currently payable.

 

The realization of tax benefits of deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence, the Company does not believe it is more likely than not that the U.S. Federal and state net deferred tax assets will be realizable. Accordingly, the Company has provided a full valuation allowance against the domestic net deferred tax assets and certain foreign jurisdictions with net deferred tax assets as of June 30, 2014 and December 31, 2013. The Company intends to maintain the remaining valuation allowance until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. During the three and six months ended June 30, 2014, there have been no material changes to the total amount of unrecognized tax benefits.