Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of (loss) income from continuing operations before income taxes

For financial reporting purposes, (loss) income from continuing operations before income taxes, includes the following components (in thousands):


	Year ended December 31,
	2016		2015
Domestic	$	(15,731)	$	917
Foreign		(1,995)		—
(Loss) income from continuing operations before income taxes	$	(17,726)	$	917

Schedule of provision (benefit) for income taxes

The (benefit) provision for income taxes of the following (in thousands):


	Year ended December 31,
	2016		2015
Current:
Federal	$	(287)	$	—
State		148		157
Foreign		36		—
		(103)		157
Deferred:
Federal		(572)		—
State		23		—
Foreign		(548)		—
		(1,097)		—
Total	$	(1,200)	$	157

Deferred tax assets and liabilities

Significant components of our deferred tax assets for federal and state income taxes are as follows (in thousands):


	As of December 31,
	2016		2015
Deferred tax assets:
Federal and state NOL carryforward	$	9,635	$	—
Fixed assets		288		—
Accruals		644		—
Stock-based compensation		407		—
Inventory		1,118		—
Other intangibles		14,228		—
Allowance for customer credits and doubtful accounts		1,206		—
Deferred rent		1,537		—
Other		208		—
Deferred state income tax		434		—
Total gross deferred tax asset		29,705		—
Less: valuation allowance		(28,275)		—
Total deferred tax assets	$	1,430	$	—

Deferred tax liabilities:
Indefinite lived intangibles	$	(10,702)	$	—
Prepaids		(175)		—
Debt discount		(1,627)		—
Total gross deferred tax liability		(12,504)		—
Net deferred tax assets	$	(11,074)	$	—

Schedule of effective income tax rate reconciliation

Income tax (benefit) provision for the year ended December 31, 2016 related to continuing operations differ from the amounts computed by applying the U.S. statutory income tax rate of 34 percent to pretax loss as follows (in thousands):


	Year ended December 31,
		2016		2015
U.S. Federal (benefit) provision
At statutory rate	$	(6,026)	$	—
State taxes		113		53
Valuation allowance		22,514		—
Foreign tax differential		205		—
Disallowed interest expense		219		—
Change in entity status		(19,448)		—
Effect of uncertain tax positions		(287)		—
Book income from pre-transaction period		705		—
Transaction costs		810		—
Other		(5)		104
Total	$	(1,200)	$	157

Schedule of roll forward of unrecognized tax benefits

We have the following activity relating to unrecognized tax benefits (in thousands):


	Year ended December 31,
		2016		2015
Beginning balance	$	—	$	—
Gross increase - tax positions in prior periods		298		—
Gross decrease - tax positions in prior periods		—		—
Gross decrease - tax positions in current period		—		—
Settlements		—		—
Lapse in statutes of limitations		(217)		—
Ending balance	$	81	$	—