Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of continuing operations before income taxes

The Company's loss from continuing operations before income taxes for the years ended December 31, was as follows (in thousands):



	2015			2014			2013
Income (loss) before provision for income taxes:
United States	$	(13,254	)	$	(18,455	)	$	(9,267	)
Foreign	629			(1,740		)	1,420
	$	(12,625	)	$	(20,195	)	$	(7,847	)

Schedule of components of income tax (benefit)

The components of the provision (benefit) for income taxes attributable to continuing operations are as follows (in thousands):



	2015			2014			2013
Current
Federal	$	—		$	—		$	—
State	(100		)	54			18
Foreign	932			163			1,136
Total Current	$	832		$	217		$	1,154

Deferred
Federal	$	293		$	300		$	(417	)
State	31			10			(67		)
Foreign	(117		)	(605		)	38
Total Deferred	207			(295		)	(446		)
	$	1,039		$	(78	)	$	708

Schedule of deferred tax components

Significant components of the Company’s deferred taxes as of December 31 are as follows (in thousands):



	2015			2014
Deferred tax assets:
Current deferred tax assets:
Accrued expenses and allowances	$	793		$	733
Deferred revenue	671			549
Other	22			62
Valuation allowance for current deferred tax assets	(1,183		)	(964		)
Net current deferred tax assets	303			380
Noncurrent deferred tax assets:
Intangible assets				—
Stock compensation	582			350
Net operating loss and tax credit carryforwards	20,871			16,755
Other	174			61
Valuation allowance for noncurrent deferred tax assets	(17,324		)	(12,143		)
Net noncurrent deferred tax assets	$	4,303		$	5,023
Deferred tax liabilities:
Current deferred tax liabilities:
Prepaid expenses	$	(1	)	$	(1	)
Total current deferred tax liabilities	(1		)	(1		)
Noncurrent deferred tax liabilities:
Stock compensation	—			—
Capital expenses	(2		)	(202		)
Intangible assets	(6,481		)	(7,217		)
Goodwill	(561		)	(252		)
Tax credit carryforwards	(379		)	(737		)
Total noncurrent deferred tax liabilities	(7,423		)	(8,408		)
Net current deferred tax asset	$	302		$	379
Net noncurrent deferred tax liability	$	(3,120	)	$	(3,385	)
Net deferred taxes	$	(2,818	)	$	(3,006	)

Schedule of effective income tax rate reconciliation

The Company’s provision for income taxes differs from the expected tax expense (benefit) amount computed by applying the statutory federal income tax rate of 34% to income before taxes due to the following:



	2015		2014		2013
Federal statutory rate	34.0	%	34.0	%	34.0	%
State taxes, net of federal benefit	3.5		3.5		4.3
Tax credits	(0.2	)	(1.1	)	(5.3	)
Effect of foreign operations	(2.2	)	0.1		2.0
Stock compensation	(2.9	)	—		—
Permanent items and other	(3.3	)	(1.7	)	(13.7	)
Tax carryforwards not benefited	(37.1	)	(34.4	)	(30.3	)
	(8.2	)%	0.4	%	(9.0	)%

Schedule of unrecognized tax benefits

To the extent the Company is required to recognize interest and penalties related to unrecognized tax liabilities, this amount will be recorded as an accrued liability, (in thousands).

In the fourth quarter of 2015, the Company recorded approximately $399,000 of additional income tax expense for tax matters that related to prior periods. The Company has concluded that the correction of the error in prior period amounts is not material to the current period or any previously reported periods.



Balance at January 1, 2013	$	70
Additional based on tax positions related to the current year	—
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(7		)
Settlements	—
Balance at December 31, 2013	$	63
Additional based on tax positions related to the current year	—
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(10		)
Settlements	—
Balance at December 31, 2014	$	53
Additional based on tax positions related to the current year	—
Additions for tax positions of prior years	568
Reductions for tax positions of prior years	—
Settlements	—
Balance at December 31, 2015	$	621