INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

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

	Years ended December 31,
	2018			2017

Income from operations before income taxes
Domestic	$	2,455		$	2,364
Foreign		(603	)		(201	)
Total	$	1,852		$	2,163

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

	Years ended December 31,
	2018			2017

Current:
Federal	$	—		$	—
State		(2	)		5
Foreign		13			60
	$	11		$	65

Deferred:
Federal	$	—		$	(3	)
State		—			—
Foreign		(21	)		23
		(21	)		20
Total income tax expense (benefit)	$	(10	)	$	85

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

	Years ended December 31,
	2018			2017

United States federal tax statutory rate	$	390		$	735
State taxes, net of federal benefit		(54	)		(237	)
Valuation allowances against deferred tax assets		(251	)		(4,798	)
Research and development tax credits		(90	)		22
Foreign provision different than U.S. tax rate		6			(11	)
Stock option expense		—			6
Adjustment of prior year tax credits and refunds		(24	)		1,231
Change in deferred tax rate from 35% to 21%		—			3,146
Other		13			(9	)
Total	$	(10	)	$	85

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

	Years ended December 31,
	2018			2017

Deferred tax assets:
Accrued compensation and benefits	$	32		$	49
Inventory reserves		17			1
Allowance for doubtful accounts		1			4
Warranty reserves		124			165
Intangible and other assets		535			994
Net operating loss carryforwards		3,980			3,897
Property, equipment and other		65			44
Research and development credit		2,357			2,230
Total deferred tax asset:		7,111			7,384
Less: valuation allowance		(7,013	)		(7,319	)
Net deferred tax assets:		98			65

Deferred tax liabilities:
Prepaid expenses and other		(42	)		(27	)
Total deferred tax liability:		(42	)		(27	)

Total net deferred tax asset	$	56		$	38