Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The components of loss before income taxes consist of the following (in thousands):


	Year Ended December 31,
	2020		2019		2018
Loss before income taxes:
Domestic	$	(7,435)	$	(5,466)	$	(1,631)
Foreign	(2,071)		(1,171)		(1,688)
Total loss before income taxes	$	(9,506)	$	(6,637)	$	(3,319)

Schedule of provision for income tax expense (benefit)

The provision for income tax expense (benefit) consists of the following (in thousands):


	Year Ended December 31,
	2020		2019		2018
Current:
U.S. Federal	$	—	$	—	$	(8)
State	61		17		591
Foreign	(368)		(246)		(314)
Total current	(307)		(229)		269
Deferred:
U.S. Federal	—		—		—
State	(8)		8		11
Foreign	9		27		18
Total deferred	1		35		29
Total provision for income tax expense (benefit)	$	(306)	$	(194)	$	298

Total income tax expense differs from the expected income tax expense

Total income tax expense (benefit) differs from the expected income tax expense (benefit), computed by applying the federal statutory rate of 21% in 2020, 2019 and 2018, to earnings before income taxes as follows (in thousands):


	Year Ended December 31,
	2020		2019		2018
Expected income tax benefit	$	(1,997)	$	(1,393)	$	(697)
Federal R&D credit	(67)		(54)		(32)
Refundable AMT credit	—		—		(12)
Effect of deferred rate change	—		—		8
Foreign tax	76		27		38
Non-deductible equity expense	258		15		13
Non-deductible stock issuance costs	(82)		3		85
Foreign unremitted earnings	—		—		130
Change in valuation allowance	1,655		1,379		408
State income taxes, net of federal tax effect	(168)		(219)		455
Other, net	19		48		(98)
Total provision for income tax expense (benefit)	$	(306)	$	(194)	$	298

Schedule of tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities)

The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are presented below (in thousands):


	December 31,
	2020		2019
Deferred tax assets:
Inventory provisions and uniform capitalization	$	1	$	—
Accounts receivable allowances	8		8
Non-qualified stock option and restricted stock expense	245		220
Deferred revenue	302		218
Lease liabilities	199		290
Loss and credit carryforwards of U.S. subsidiary	25,844		24,717
Loss carryforward of foreign subsidiaries	91		145
Excess interest expense	420		496
Other accruals and reserves	326		101
Total deferred tax assets before valuation allowance	27,436		26,195
Less valuation allowance	(26,999)		(25,406)
Total deferred tax assets	$	437	$	789
Deferred tax liabilities:
Acquired intangibles	$	(347)	$	(465)
Right of use assets	(78)		(207)
Fixed assets	7		(26)
Other	—		(70)
Total deferred tax liabilities	$	(418)	$	(768)
Total net deferred tax assets	$	19	$	21

Reconciliation of the beginning and ending amounts of gross unrecognized tax benefits

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is presented in the table below (in thousands):


	Year Ended December 31,
	2020		2019
Gross unrecognized tax benefits at beginning of year	$	1,780	$	1,724
Increases related to:
Prior year income tax positions	—		7
Current year income tax positions	57		49
Decreases related to:
Prior year income tax positions - closure of statute of limitations	(1)		—
Gross unrecognized tax benefits at end of year	$	1,836	$	1,780