Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax (Benefit) Expense

The following table sets forth the components of income tax (benefit) expense (in thousands):



	Year Ended December 31,
	2016			2015
Current:
State	$	—		$	3
	—			3
Deferred:
Federal	(73		)	154
State	(6		)	13
	(79		)	167
Income tax (benefit) expense	$	(79	)	$	170

Schedule of Effective Income Tax Rate Reconciliation

Our effective tax rate differs from the statutory federal tax rate as shown in the following table (in thousands):



	Year Ended December 31,
	2016			2015
U.S. federal income taxes at the statutory rate	$	(1,264	)	$	(692	)
State taxes, net of federal effects	(108		)	(53		)
Permanent differences	10			13
Impact of state tax rate change to deferred	(36		)	119
Expired net operating loss carry-forwards	—			4,026
Prior year provision to actual adjustments	(36		)	—
Other	8			12
Change in valuation allowance	1,347			(3,255		)
Income tax (benefit) expense	$	(79	)	$	170

Schedule of Deferred Tax Assets and Liabilities

The tax effect of the temporary differences that give rise to significant portions of the deferred tax assets and liabilities is presented below (in thousands):



	December 31,
	2016			2015
Deferred tax assets:
Tax benefit of operating loss carry forward	$	11,612		$	10,385
Reserves and allowances	12			148
Accrued expenses	35			73
Charitable contributions	198			190
Stock-based compensation	1,098			846
Fixed assets	102			330
Texas margin tax temporary credit	239			246
Total deferred tax assets	13,296			12,218
Valuation allowance	(13,192		)	(11,844		)
Net deferred tax assets	$	104		$	374

Deferred tax liabilities:
481(a) adjustment	$	—		$	2
Goodwill	230			309
Intangible amortization	104			372
Total deferred tax liabilities	$	334		$	683

Net deferred tax liability	$	(230	)	$	(309	)