	Years ended December 31,
	2019			2018

Income from operations before income taxes
Domestic	$	2,081		$	2,455
Foreign		(251	)		(603	)
Total	$	1,830		$	1,852

	Years ended December 31,
	2019			2018

Current:
Federal	$	—		$	—
State		(9	)		(2	)
Foreign		3			13
	$	(6	)	$	11

Deferred:
Federal	$	(5,195	)	$	—
State		—			—
Foreign		36			(21	)
		(5,159	)		(21	)
Total income tax expense (benefit)	$	(5,165	)	$	(10	)

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

	Years ended December 31,
	2019			2018

United States federal tax statutory rate	$	384		$	390
State taxes, net of federal benefit		(185	)		(54	)
Changes in valuation allowances against deferred tax assets		(5,246	)		(251	)
Research and development tax credits		(184	)		(90	)
Foreign provision different than U.S. tax rate		—			6
Adjustment of prior year tax credits and refunds		16			(24	)
Other		50			13
Total	$	(5,165	)	$	(10	)

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

	Years ended December 31,
	2019			2018

Deferred tax assets (liabilities):
Accrued compensation and benefits	$	14		$	32
Inventory reserves		9			17
Allowance for doubtful accounts		1			1
Prepaid expenses and other		(52	)		(42	)
Warranty reserves		62			124
Intangible and other assets		(43	)		535
Net operating loss carryforwards		4,533			3,980
Property, equipment and other		(233	)		65
Research and development credit		2,672			2,357
Total deferred tax asset:		6,963			7,069
Less: valuation allowance		(1,743	)		(7,013	)
Total deferred tax assets:	$	5,220		$	56

As of December 31, 2019, the Company had sustained a significant accumulated tax loss. The net operating loss (“NOL”) carry forward in the United States, the United Kingdom, Hong Kong, Canada and China as of December 31, 2019 was $18.0 million, $542,000, $1.6 million, $69,000 and $97,000, respectively.

On a quarterly basis, the Company evaluates all positive and negative evidence in determining if the valuation allowance is fairly stated. At September 30, 2019, the Company determined that, based on the taxable profitability it has achieved, historical taxable cumulative profits, and estimates of future income, there was sufficient positive evidence to conclude that the likelihood of realization of deferred tax assets outweighed the negative evidence. The valuation allowance was partially released for the deferred tax assets that the Company is more likely than not to realize, which resulted in a $5.2 million non-cash income tax benefit from the recognition of $5.3 million in net deferred tax assets during 2019. The remaining $1.7 million valuation allowance relates to state and foreign net operating losses, US federal and state research and development credits, and foreign tax credits that are not more likely than not to be utilized.

In accordance with ASC 740‑30, we have not recognized a deferred tax liability for the undistributed earnings of certain of our foreign operations because those subsidiaries have invested or will invest the undistributed earnings indefinitely. It is impractical for us to determine the amount of unrecognized deferred tax liabilities on these indefinitely reinvested earnings. Deferred taxes are recorded for earnings of foreign operations when we determine that such earnings are no longer indefinitely reinvested.

The Company had recognized no material uncertain tax positions as of December 31, 2019. The Company files income tax returns in the U.S federal jurisdiction and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S federal or state and local income tax examinations by tax authorities for years before 2015. It is difficult to predict the final timing and resolution of any particular uncertain tax position. Based on the Company's assessment of many factors, including past experience and complex judgments about future events, the Company does not currently anticipate significant changes in its uncertain tax positions over the next 12 months.

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act tax reform legislation (the "Tax Act"). The Tax Act makes significant changes in U.S. tax law, including a reduction in the U.S. federal corporate income tax rate, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The Tax Act reduced the U.S. corporate tax rate from 35% to 21%. As a result of the enacted law, the Company was required to revalue deferred tax assets and liabilities at the enacted rate. This revaluation did not have any income tax expense impact on the Company due to the full valuation allowance. The other provisions of the Tax Act did not have a material impact on the Company's 2017 consolidated financial statements. During 2018, the Company finalized its accounting for this matter and concluded that no material adjustments were required.