Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Income before Income Tax, Domestic and Foreign

The provision for income taxes attributable to continuing operations is based upon loss from continuing operations before provision for income taxes as follows (in thousands):



	Year ended December 31,
	2016			2015			2014
Domestic	$	(4,632	)	$	(11,932	)	$	(15,592	)
Foreign	711			(1,251		)	192
	$	(3,921	)	$	(13,183	)	$	(15,400	)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consists of the following (in thousands):



	Year ended December 31,
	2016		2015		2014
Federal:
Current	$	—	$	—	$	—
Deferred	—		—		—
Total federal provision	—		—		—
State:
Current	18		20		16
Deferred	—		—		—
Total state provision	18		20		16
Foreign:
Current	164		30		195
Deferred	—		—		—
Total foreign provision	164		30		195
Total income tax expense	$	182	$	50	$	211

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount estimated by applying the statutory Federal income tax rate to loss before taxes as follows (in thousands):



	Year ended December 31,
	2016			2015			2014
Federal tax at statutory rate of 35%	$	(1,372	)	$	(4,615	)	$	(5,390	)
State taxes, net of federal benefit	(171		)	(634		)	(577		)
U.S.-Foreign rate differential	(96		)	480			100
Change in Valuation Allowance	939			3,072			4,115
Research and Development credits	233			175			357
Permanent items	657			1,566			1,560
Others	(8		)	6			46
Total income tax expense	$	182		$	50		$	211

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred income tax asset are as follows (in thousands):



		Year ended December 31,
		2016			2015
Deferred tax assets:
	Net operating loss carry forwards	$	100,378		$	83,522
	Tax credit carry forwards	19,248			18,940
	Fixed and intangible assets	597			868
	Capitalized research and development costs	58			58
	Stock based compensation and other reserves and allowances	3,445			3,828
	Gross deferred income tax assets	123,726			107,216
	Valuation allowance	(123,726		)	(107,216		)
	Net deferred income tax assets	$	—		$	—

Summary of Income Tax Contingencies

The following is a rollforward of the Company's unrecognized tax benefits related to uncertain tax positions for the years ended December 31, 2016 and 2015 (in thousands):



	Year ended December 31,
	2016			2015
Balance as of the beginning of the year	$	9,066		$	1,359
Tax positions related to current year:
Additions	152			147
Reductions	(14		)	(18		)
Tax positions related to prior years:
Additions	80			7,991
Reductions	(4		)	(28		)
Settlements	—			—
Lapses in statute of limitations	(64		)	(385		)
Balance as of the end of the year	$	9,216		$	9,066

Included in the balance of total unrecognized tax benefits at December 31, 2016 are potential benefits of $364,000, which if recognized, would affect the effective rate on income from continuing operations.

On December 31, 2016, the Company had accrued interest and penalties related to the uncertain tax benefits of approximately $62,000. During 2016, the Company decreased the prior year balance by $12,000 due to lapses in statutes of limitations in certain foreign jurisdictions.