Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income before Provision for Income Taxes

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

	Year Ended December 31,
	2020		2019
Domestic	$	4,213	$	10,833
Foreign		112		(31	)
Total income before provision for income taxes	$	4,325	$	10,802

Summary of Income Tax Expense (Benefit)

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

	Year Ended December 31,
	2020			2019
Current:
Federal	$	(133	)	$	(132	)
State		6			7
Foreign		134			108
Total current		7			(17	)
Deferred:
Federal		155			144
State		24			—
Foreign		(26	)		(47	)
Total deferred		153			97
Total income tax expense	$	160		$	80

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,
	2020				2019
Federal statutory rate		21.0		%		21.0		%
State tax, net of federal benefit		2.7				3.6
Equity compensation		(1.8	)			0.1
International tax items		(0.1	)			0.2
Foreign taxes		2.5				0.6
State NOL true-up		2.5				(6.1	)
Miscellaneous		1.3				0.4
Effect of change in rate		3.5				0.9
Change in valuation allowance		(27.9	)			(19.8	)
		3.7		%		0.7		%

F-18

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,
	2020			2019
Deferred income tax assets
Net operating loss carry forwards	$	42,127		$	41,650
Credit carry forwards		3,027			3,159
Fixed assets		116			373
Intangibles		3,346			4,679
Equity-based compensation		343			308
Nondeductible accruals		365			319
Various reserves		23			209
Other		2			2
Valuation allowance		(49,405	)		(50,397	)
Total deferred income taxes - net		(56	)		302
Deferred income tax liabilities
Foreign intangibles		(1	)		(27	)
Deferred rent		94			—
Unrealized translation gain/loss		3			(120	)
Prepaid expenses		(99	)		(61	)
Total deferred income liabilities		(3	)		(208	)
Net deferred income tax assets (liabilities)	$	(59	)	$	94

Gross Unrecognized Tax Benefits Changes in Balances

The Company’s gross unrecognized tax benefits as of December 31, 2020 and 2019 and the changes in those balances are as follows (in thousands):

	Year Ended December 31,
	2020		2019
Beginning balance	$	428	$	428
Increases (decreases) in tax positions for the    current year		—		—
Increases (decreases) in tax positions for the    prior year		—		—
Gross unrecognized tax benefits, ending balance	$	428	$	428

F-19