INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

The components of income before income taxes were as follows (in thousands):

	Years ended December 31,
	2017			2016

Income from operations before income taxes
Domestic	$	2,364		$	801
Foreign		(201	)		(139	)
Total	$	2,163		$	662

The components of income tax expense (benefit) were as follows (in thousands):

	Years ended December 31,
	2017			2016

Current:
Federal	$	—		$	—
State		5			2
Foreign		60			12
	$	65		$	14

Deferred:
Federal	$	(3	)	$	—
State		—			—
Foreign		23			(39	)
		20			(39	)
Total income tax expense (benefit)	$	85		$	(25	)

A reconciliation from the federal statutory income tax provision to our effective tax expense (benefit) is as follows (in thousands):

	Years ended December 31,
	2017			2016

United States federal tax statutory rate	$	735		$	225
State taxes, net of federal benefit		(237	)		(52	)
Valuation allowances against deferred tax assets		(4,798	)		(58	)
Research and development tax credits		22			(252	)
Foreign provision different than U.S. tax rate		(11	)		22
Stock option expense		6			14
Adjustment of prior year tax credits and refunds		1,231			174
Change in deferred tax rate from 35% to 21%		3,146			—
Other		(9	)		(98	)
Total	$	85		$	(25	)

A summary of the deferred tax assets and liabilities is as follows (in thousands):

	Years ended December 31,
	2017			2016

Deferred tax assets:
Accrued compensation and benefits	$	49		$	28
Inventory reserves		1			26
Allowance for doubtful accounts		4			5
Warranty reserves		165			367
Intangible and other assets		994			2,512
Net operating loss carryforwards		3,897			6,949
Non-qualified stock option expense		—			—
Property, equipment and other		44			156
Research and development credit		2,230			2,059
Total deferred tax asset:		7,384			12,102
Less: valuation allowance		(7,319	)		(11,994	)
Net deferred tax assets:		65			108

Deferred tax liabilities:
Prepaid expenses and other		(27	)		(50	)
Total deferred tax liability:		(27	)		(50	)

Total net deferred tax asset	$	38		$	58