Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income (Loss) before Provision for Income Taxes

Income (loss) before provision for income taxes was generated from the following sources (in thousands):

	Year Ended December 31,
	2017			2016			2015
Domestic	$	(7,132	)	$	(15,145	)	$	(2,651	)
Foreign		(75	)		(427	)		117
Total loss before provision for income taxes	$	(7,207	)	$	(15,572	)	$	(2,534	)

Summary of Income Tax Expense (Benefit)

A summary of the income tax expense (benefit) is as follows (in thousands):

	Year Ended December 31,
	2017			2016			2015
Current:
Federal	$	—		$	—		$	—
State		(1	)		(153	)		5
Foreign		40			61			63
Total current		39			(92	)		68
Deferred:
Federal		(530	)		—			—
State		—			—			—
Foreign		(55	)		(137	)		—
Total deferred		(585	)		(137	)		—
Total provision	$	(546	)	$	(229	)	$	68

Federal Statutory Rate to Loss Before Income Taxes

A reconciliation of the provision for income taxes to the amount of income tax expense (benefit) that would result from applying the federal statutory rate to the loss before income taxes is as follows:

	Year Ended December 31,
	2017				2016				2015
Federal statutory rate		35.0		%		35.0		%		35.0
State tax, net of federal benefit		3.9				4.6				(20.4	)
Equity compensation		(4.5	)			(0.3	)			(13.7	)
International tax items		(0.8	)			(1.0	)			(4.6	)
Foreign taxes		0.2				0.5				(2.5	)
Uncertain tax positions		0.0				1.1				0.0
Other		0.0				(0.2	)			(10.6	)
Miscellaneous		(0.2	)			(0.5	)			(1.1	)
Effect of change in rate		(372.4	)			0.0				0.0
Change in valuation allowance		346.4				(37.7	)			15.2
		7.6		%		1.5		%		(2.7	)

Components of Deferred Tax Assets and Liabilities

The major components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	Year Ended December 31,
	2017			2016
Deferred income tax assets
Net operating loss carry forwards	$	40,042		$	54,165
Credit carry forwards		3,557			3,464
Fixed assets		531			985
Intangibles		8,446			15,894
Equity-based compensation		399			688
Nondeductible accruals		465			1,346
Various reserves		81			132
Other		2			22
Valuation allowance		(52,948	)		(76,648	)
Total deferred income taxes - net		575			48
Deferred income tax liabilities
Foreign intangibles		(126	)		(181	)
Unrealized translation gain/loss		(23	)		9
Prepaid expenses		(22	)		(57	)
Total deferred income liabilities		(171	)		(229	)

Net deferred income tax assets (liabilities)	$	404		$	(181	)

Gross Unrecognized Tax Benefits Changes in Balances

The Company’s gross unrecognized tax benefits as of December 31, 2017 and 2016 and the changes in those balances are as follows (in thousands):

	Year Ended December 31,
	2017		2016
Beginning balance	$	428	$	592
Increases (decreases) in tax positions for the current year		—		(164	)
Increases (decreases) in tax positions for the prior year		—		—
Gross unrecognized tax benefits, ending balance	$	428	$	428