Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Loss From Continuing Operations

Loss before income tax for the years ended December 31, 2019 and 2018 consisted of the following (in thousands):

	2019		2018
U.S. operations	$	(20,212)	$	(32,183)
Foreign operations	(4,821)		(4,135)
Global Total	$	(25,033)	$	(36,318)

Components of Income Tax Expense (Benefit)

The provision (credit) for income taxes attributable to continuing operations before income taxes for the years ended December 31, 2019 and 2018 is as follows (in thousands):

	2019		2018
Current tax expense (benefit):
Federal	$	—	$	—
State and local	23		30
Foreign	87		(157)
Total current tax expense (benefit)	110		(127)
Deferred tax expense:
Federal	—		—
State and local	—		—
Foreign	(19)		65
Total deferred tax (benefit) expense	(19)		65
Total income tax expense (benefit)	$	91	$	(62)

Effective Income Tax Rate Reconciliation

A comparison of income tax (benefit) expense at the U.S. statutory rate of 21% in 2019 and 2018 to the Company's effective rate is as follows (in thousands):

	2019		2018
Expected Statutory benefit	$	(5,257)	$	(7,627)
Other non-deductible expenses	133		256
Change in valuation allowance	4,674		6,572
Research credits	(504)		—
Tax rate differential - foreign vs. U.S.	1,073		791
State income taxes, net of federal benefit	18		23
Prior year true-up	(45)		(93)
Exchange gain	(1)		16
	$	91	$	(62)

Deferred Tax Balances

Deferred tax balances included in the Consolidated Balance Sheets as of December 31, 2019 and 2018 consisted of the following (in thousands):

	2019		2018
Deferred Tax Assets:
Sales allowances and doubtful accounts	$	2,991	$	1,964
Inventory reserve	652		962
Deferred revenue	—		590
Accrued expenses	206		23
Property, plant and equipment	272		258
Tax operating loss carryforwards	10,851		9,951
Tax credit and other carryforwards	5,996		1,299
Stock compensation	566		538
Total deferred tax assets	21,534		15,585
Less valuation allowance	(18,562)		(12,120)
Net deferred tax assets	2,972		3,465
Deferred Tax Liabilities:
Convertible debt conversion features	(3,070)		(3,514)
Foreign exchange	(14)		(28)
Intangible assets	(93)		(138)
Total deferred tax liabilities	(3,177)		(3,680)
Net deferred tax liability	$	(205)	$	(215)

Operating Loss and Tax Credit Carryforward

Operating loss, tax credit and other carry forwards as of December 31, 2019 and 2018 were as follows (in thousands):

	2019		2018
Federal:
Net operating losses (see below)	$	48,531	$	45,081
Disallowed interest expense (no expiration)	17,783		5,018
Contributions (expiring through 2024)	658		524
Research tax credits (expiring through 2026)	1342		135
State:
New Jersey (expiring in 2039)	4,942		2,976
Other states (expiring through 2039)	3,266		2,307
New Jersey research credits (expiring in 2026)	764		—
Foreign
Net operating losses (no expiration)	$	—	$	257

Operating Loss Carryforwards Expiration

At December 31, 2019, the Company’s U.S. federal net operating loss carryforwards will expire as follows (in thousands):

Year	Net Operating Loss
2020 - 2023	$	8,227
2024 - 2029	9,063
2030 - 2032	9,926
2033 - 2036	6,296
2037	8,116
No expiration but subject to limitation	6,903
Total	$	48,531