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Income Taxes
3 Months Ended
Mar. 31, 2015
Income Taxes  
Income Taxes

 

11. Income Taxes

 

The provision for income taxes for the three months ended March 31, 2015 was approximately $212,000. The provision for income taxes for the three months ended March 31, 2015 consisted primarily of foreign and state income taxes. The benefit for income taxes for the three months ended March 31, 2014 was approximately $14,000. The benefit for income taxes for the three months ended March 31, 2014 consisted 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.

 

For the three months ended March 31, 2015, the provision for income taxes differed from the statutory amount primarily due to unbenefited federal, state, and certain foreign losses with minor offsets for certain state and foreign taxes currently payable.  For the three months ended March 31, 2014, the provision for income taxes differed from the statutory amount primarily due to state and foreign taxes currently payable.  The Company realized no benefit for current year losses due to maintaining a full valuation allowance against the U.S. and most of its foreign net deferred tax assets.

 

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 March 31, 2015 and December 31, 2014. 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 months ended March 31, 2015, there have been no material changes to the total amount of unrecognized tax benefits.