Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

All of our income is generated in the U.S. The components of income tax provision (benefit) were as follows (in thousands):

	Year Ended December 31,
	2019			2018			2017
Current federal	$	(1,052	)	$	1,222		$	(413	)
Current state	(273		)	571			331
	(1,325		)	1,793			(82		)
Deferred federal	(4,500		)	(135		)	(5,368		)
Deferred state	(874		)	(371		)	(32		)
	(5,374		)	(506		)	(5,400		)
	$	(6,699	)	$	1,287		$	(5,482	)

Reconciliation of the Statutory Federal Income Tax Rate to Income Before Income Taxes

Income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes as follows (in thousands):

	Year Ended December 31,
	2019			2018			2017
Provision at U.S. statutory rate	$	(4,120	)	$	1,140		$	1,374
State taxes, net of federal benefit	(1,023		)	210			189
Effect of tax rate change on deferred tax assets and liabilities	—			—			(6,923		)
Permanent differences, primarily meals and entertainment	155			111			180
Stock-based compensation	(3		)	(42		)	(11		)
Other adjustments	(149		)	—			—
Tax credits	(1,833		)	(132		)	(291		)
Unrecognized tax benefits	274			—			—
	$	(6,699	)	$	1,287		$	(5,482	)

Significant Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities were as follows (in thousands):

	December 31,
	2019			2018
Deferred tax assets
Net operating losses and tax credit carryforwards	$	5,565		$	11
Accrued salaries and severance	1,060			1,089
Right-of-use liability	5,030			—
Other	3,529			1,403
	15,184			2,503
Deferred tax liabilities
Property, equipment and leasehold improvements	(12,222		)	(10,783		)
Intangible assets	(4,594		)	(3,977		)
Right-of-use asset	(5,144		)	—
Other	(190		)	(124		)
	(22,150		)	(14,884		)
	$	(6,966	)	$	(12,381	)

Summary of Net Operating Loss Carryforwards

As of December 31, 2019, included in our net operating losses and tax credit carryforwards were the following (in thousands):

State NOLs, tax effected (expire in 2022-2039)	$	541
Federal NOLs, tax effected (no expiration date)	2,417
Federal employer FICA tips credit (expire in 2036-2039)	691
Federal research and development tax credit, net of $274 of unrecognized tax benefits (expire in 2035-2039)	1,916

Summary of Tax Credit Carryforwards

As of December 31, 2019, included in our net operating losses and tax credit carryforwards were the following (in thousands):

State NOLs, tax effected (expire in 2022-2039)	$	541
Federal NOLs, tax effected (no expiration date)	2,417
Federal employer FICA tips credit (expire in 2036-2039)	691
Federal research and development tax credit, net of $274 of unrecognized tax benefits (expire in 2035-2039)	1,916

Reconciliation of Total Amounts of Unrecognized Tax Benefits

A reconciliation of the total amounts of unrecognized tax benefits is as follows (in thousands):

	2019		2018
Unrecognized tax benefits – January 1	$	—	$	—
Gross increases – tax positions in current period	274		—
Unrecognized tax benefits – December 31	$	274	$	—