INCOME TAXES

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

8. INCOME TAXES

The provision for (benefit from) income taxes consists of the following:

Year ended December 31,	2016			2015		2014
Current:
Federal	$	—		$	82,000	$	(8,646,000	)
Prior year under accrual		—			143,000		44,000
State		(51,000	)		107,000		6,000
Deferred:
Federal		(2,015,000	)		2,659,000		(3,877,000	)
	$	(2,066,000	)	$	2,991,000	$	(12,473,000	)

The difference between the income tax provision computed at the federal statutory rate and the actual tax provision (benefit) is accounted for as follows:

December 31,	2016			2015			2014
Taxes computed at the federal statutory rate	$	(1,929,000	)	$	2,722,000		$	(12,812,000	)
State income tax, net		(34,000	)		70,000			4,000
Prior year true-up		(3,000	)		325,000			44,000
Research and development tax credit		(246,000	)		(177,000	)		(140,000	)
Reduction in domestic production activity		—			—			893,000
AMT credit carryforward		—			—			(584,000	)
Permanent differences		146,000			51,000			122,000
Provision for (benefit from) income taxes	$	(2,066,000	)	$	2,991,000		$	(12,473,000	)

The components of deferred income tax assets and liabilities are as follows:

Deferred Tax Assets:	2016		2015
Interest rate swap	$	9,000	$	3,000
ASC 740 liability		—		33,000
Allowance for doubtful accounts		187,000		26,000
Credit carryforwards		1,548,000		1,303,000
Deferred rent		221,000		212,000
Stock options		295,000		626,000
Restricted stock		47,000		—
Charitable contributions carryforward		—		18,000
Net operating loss carryforward		5,057,000		1,006,000
Deferred Tax Assets		7,364,000		3,227,000
Deferred Tax Liabilities:
Prepaid expenses		130,000		156,000
Revenue recognition		2,807,000		606,000
Property and equipment		475,000		575,000
Deferred tax liabilities		3,412,000		1,337,000
Net Deferred Tax Assets	$	3,952,000	$	1,890,000

The Company recognized, for income tax purposes, a tax benefit of $33,000 and $86,000 for the years ended December 31, 2015 and 2014, respectively, for compensation expense related to its stock option plan for which no corresponding charge to operations has been recorded. Such amounts have been added to additional paid-in capital in those years.

At December 31, 2016, the Company has net operating loss carryforwards of approximately $14.6 million which will expire in 2031.