Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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):



	2017			2016			2015
Income (loss) before provision for income taxes:
United States	$	(22,748	)	$	(14,242	)	$	(13,254	)
Foreign	5,319			2,259			629
	$	(17,429	)	$	(11,983	)	$	(12,625	)

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):



	2017			2016			2015
Current
Federal	$	—		$	—		$	—
State	177			37			(100		)
Foreign	1,381			964			932
Total Current	$	1,558		$	1,001		$	832

Deferred
Federal	$	(168	)	$	727		$	293
State	128			131			31
Foreign	(222		)	(329		)	(117		)
Total Deferred	(262		)	529			207
	$	1,296		$	1,530		$	1,039

Schedule of deferred tax components

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



	2017			2016			2015
Deferred tax assets:
Accrued expenses and allowances	$	1,715		$	993		$	793
Deferred revenue	—			573			671
Stock compensation	901			1,054			582
Net operating loss and tax credit carryforwards	26,810			24,895			20,871
Capital expenses	294			307			—
Other	129			176			196
Valuation allowance for noncurrent deferred tax assets	(15,730		)	(24,588		)	(18,507		)
Net deferred tax assets	$	14,119		$	3,410		$	4,606

Deferred tax liabilities:
Capital expenses	$	—		$	—		$	(2	)
Deferred revenue	(401		)	—			—
Prepaid expenses	(58		)	(31		)	(1		)
Intangible assets	(15,298		)	(5,716		)	(6,481		)
Goodwill	(1,214		)	(1,029		)	(561		)
Tax credit carryforwards	(410		)	(38		)	(379		)
Net deferred tax liabilities	$	(17,381	)	$	(6,814	)	$	(7,424	)
Net deferred taxes	$	(3,262	)	$	(3,404	)	$	(2,818	)

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:



	2017		2016		2015
Federal statutory rate	34.0	%	34.0	%	34.0	%
State taxes, net of federal benefit	4.7	%	1.2	%	3.5	%
Tax credits	1.0	%	(0.1	)%	(0.2	)%
Effect of foreign operations	2.1	%	1.1	%	(2.2	)%
Stock compensation	7.9	%	(1.7	)%	(2.9	)%
Permanent items and other	(0.5	)%	(1.6	)%	(3.3	)%
Effect of Tax Act	(43.7	)%	—	%	—	%
Tax carryforwards not benefited	(12.9	)%	(45.7	)%	(37.1	)%
	(7.4	)%	(12.8	)%	(8.2	)%

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).



Balance at December 31, 2015	$	621
Additional based on tax positions related to the current year	—
Additions for tax positions of prior years	84
Reductions for tax positions of prior years	—
Settlements	—
Balance at December 31, 2016	$	705
Additional based on tax positions related to the current year	—
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(225		)
Settlements	—
Balance at December 31, 2017	$	480