Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The components of the income tax expense are as follows:



	December 31,
(in thousands)	2017			2016
Current:
Federal	$	—		$	—
State and local	20			16
	20			16
Deferred:
Federal	(566		)	8
State and local	(99		)	1
	(665		)	9
Total income tax (benefit) expense	$	(645	)	$	25

The following reconciles the “statutory” federal income tax rate to the effective income tax rate:



	December 31,
	2017		2016
"Expected" provision at federal statutory rate	35	%	35	%
Reduction in income tax benefit and increase in income tax expense resulting from:
Change in federal valuation allowance	29	%	35	%
Other	2	%	—	%
Effective income tax rate	(4	)%	—	%

The tax effects of temporary differences that give rise to the deferred income tax assets and liabilities are as follows:



	December 31,
(in thousands)	2017			2016
Deferred income tax assets:
Receivable allowance	$	68		$	17
Accumulated depreciation	226			371
Restructuring accrual	242			454
Intangible assets	—			813
Compensation expense	664			634
Federal net operating loss carryforward	3,674			61,688
State net operating loss carryforward	1,124			5,736
Accrued expenses	773			160
Deferred rent	22			57
Deferred revenue	503			83
Interest	230			180
Other	32			10
Gross deferred income tax assets	$	7,558		$	70,203
Valuation allowance	(6,520		)	(70,203		)
Net deferred income tax assets	$	1,038		$	—
Deferred income tax liabilities:
Intangible Assets	$	(1,038	)	$	—
Goodwill	(18		)	(16		)
Gross deferred income tax liabilities	$	(1,056	)	$	(16	)
Net deferred income tax liabilities	$	(18	)	$	(16	)

A schedule of the change in valuation allowance is as follows: