Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Tax effects of temporary differences and carry-forwards

Income tax provision (benefit) for the years ended December 31, 2017 and 2016 is as follows:

	2017			2016
	(in thousands)
Current:
Federal	$	—		$	—
State and local		18			8
Foreign		43			41
Total Current		61			49
Deferred:
Federal		1,637			(211	)
State and local		42			267
Foreign		41			55
Total before change in valuation allowance		1,720			111
Change in Valuation Allowance		(1,679	)		(325	)
Net Deferred		41			(214	)
Income tax provision (benefit)	$	102		$	(165	)

Provision (benefit) for income taxes

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

	2017			2016
	(in thousands)
Tax provision (benefit) at expected statutory rate	$	75		$	(8	)
State taxes, net of federal benefit		81			(25	)
Permanent differences		450			6
Credits		(106	)		(123	)
Foreign tax expense, and other		(381	)		11
True-up to State NOL		—			299
Change in rate		1,662			—
Change in valuation allowance		(1,679	)		(325	)
Provision (benefit) for income taxes	$	102		$	(165	)

Reconciliation of provision (benefit) for income taxes

Deferred income taxes for 2017 and 2016 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, 2017 and 2016 were as follows:

	December 31, 2017					December 31, 2016
	Deferred Tax					Deferred Tax
	Asset			Liability		Asset			Liability
	(in thousands)
Inventory reserve	$	325		$	—	$	1,083		$	—
Fixed assets		—			141		—			151
Other reserves and accruals		133			—		213			—
Stock-based compensation		18			—		384			—
Undistributed foreign earnings		—			—		—			144
Other		—			29		—			56
Tax credit carry-forwards		2,284			—		1,921			—
Federal tax loss carry-forwards		2,380			—		3,428			—
State tax loss carry-forwards		657			—		627			—
Foreign tax loss carry-forwards		173			—		214			—
Total deferred income taxes		5,970		$	170		7,870		$	351
Valuation allowance		(5,627	)				(7,305	)
Net deferred tax assets	$	173				$	214