Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Tax effects of temporary differences and carry-forwards

	2014			2013
	(in thousands)
Current:
Federal	$	—		$	—
State and local		5			3
Foreign		(9	)		23
Total Current		(4	)		26

Deferred:
Federal		(985	)		(1,463	)
State and local		(381	)		(51	)
Foreign		8			(225	)
Total before change in valuation allowance		(1,358	)		(1,739	)
Change in valuation allowance		1,358			5,661
Net Deferred		-			3,922
	$	(4	)	$	3,948

Provision (benefit) for income taxes

A reconciliation of the (benefit) provision for income taxes and the amount computed by applying the statutory federal income tax rate to income before income taxes:

	2014			2013
	(in thousands)
Tax provision at expected statutory rate	$	(962	)	$	(1,452	)
State taxes, net of federal benefit		(57	)		(38	)
Permanent differences		(5	)		25
Credits		(56	)		(184	)
Foreign tax expense, and other		(282	)		(64	)
Change in valuation allowance		1,358			5,661
(Benefit) provision for income taxes	$	(4	)	$	3,948

Reconciliation of provision (benefit) for income taxes

Deferred income taxes for 2014 and 2013 were provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Tax effects of temporary differences and carry-forwards at December 31, 2014 and 2013, are as follows:

	December 31, 2014					December 31, 2013
	Deferred Tax					Deferred Tax
	Asset			Liability		Asset			Liability
	(in thousands)
Inventory reserve	$	1,151		$	—	$	996		$	—
Fixed assets		—			285		—			375
Other reserves and accruals		109			—		90			—
Stock-based compensation		367			—		295			—
Undistributed foreign earnings		—			86		—			14
Other		1			75		—			75
Tax credit carry-forwards		1,755			—		1,648			—
Federal tax loss carry-forwards		3,220			—		2,586			—
State tax loss carry-forwards		901			—		541			—
Foreign tax loss carry-forwards		268			—		276			—
Total deferred income taxes		7,772		$	446		6,432		$	464
Valuation allowance		(7,326	)				(5,968	)
Net deferred tax assets	$	—				$	—