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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Schedule of Expense (Benefit) for Income Taxes | Income tax expense (benefit) was as follows:
(in thousands) |  | For the Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015 (Restated) |  | 2014 (Restated)
Current tax expense (benefit): |  |  |  |  |  |  |  |
Federal |  | $ | 127 |  |  | $ | (6,568 | ) |  | $ | (859 | ) |  | $ | 7,476 |
State |  | 77 |  |  | 60 |  |  | 215 |  |  | 1,892 |
Total |  | $ | 204 |  |  | $ | (6,508 | ) |  | $ | (644 | ) |  | $ | 9,368 |
Deferred tax expense (benefit) |  |  |  |  |  |  |  |
Federal |  | $ | 100 |  |  | $ | 13,907 |  |  | $ | (6,713 | ) |  | $ | (1,183 | )
State |  | 139 |  |  | 4,214 |  |  | (2,345 | ) |  | (441 | )
Total deferred tax expense (benefit) |  | 239 |  |  | 18,121 |  |  | (9,058 | ) |  | (1,624 | )
Total tax expense (benefit) |  | $ | 443 |  |  | $ | 11,613 |  |  | $ | (9,702 | ) |  | $ | 7,744 |
Reconciliation of Effective Tax Rate to the Statutory Rate | A reconciliation between the Company’s effective tax rate on (loss) income before income taxes and the statutory tax rate was as follows:
(in thousands) |  | For the Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015 (Restated) |  | 2014 (Restated)
|  | Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
Income tax (benefit) expense at federal statutory rate |  | $ | (16,037 | ) |  | 34.0 | % |  | $ | (12,192 | ) |  | 34.0 | % |  | $ | (4,282 | ) |  | 34.0 | % |  | $ | 9,935 |  |  | 34.0 | %
State income tax, net of federal benefit |  | (2,283 | ) |  | 4.8 | % |  | (1,758 | ) |  | 4.9 | % |  | (1,101 | ) |  | 8.7 | % |  | 1,295 |  |  | 4.4 | %
Non-deductible warrants (income)/expense |  | 1,360 |  |  | (2.9 | )% |  | (481 | ) |  | 1.3 | % |  | (3,162 | ) |  | 25.1 | % |  | (2,098 | ) |  | (7.2 | )%
Domestic production activity |  | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | % |  | (334 | ) |  | (1.1 | )%
Other permanent differences |  | 106 |  |  | (0.2 | )% |  | 110 |  |  | (0.3 | )% |  | 137 |  |  | (1.1 | )% |  | 191 |  |  | 0.7 | %
Research and development tax credits |  | (426 | ) |  | 0.9 | % |  | (837 | ) |  | 2.3 | % |  | (1,632 | ) |  | 13.0 | % |  | (1,953 | ) |  | (6.7 | )%
Tax reserve reassessment |  | 104 |  |  | (0.2 | )% |  | (141 | ) |  | 0.4 | % |  | 412 |  |  | (3.3 | )% |  | 246 |  |  | 0.8 | %
Federal tax rate change |  | 10,899 |  |  | (23.1 | )% |  | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | %
Change in valuation allowance |  | 4,956 |  |  | (10.4 | )% |  | 26,846 |  |  | (74.9 | )% |  | — |  |  | — | % |  | — |  |  | — | %
3PI Settlement |  | 1,976 |  |  | (4.2 | )% |  | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | %
Other, net |  | (212 | ) |  | 0.4 | % |  | 66 |  |  | (0.1 | )% |  | (74 | ) |  | 0.6 | % |  | 462 |  |  | 1.6 | %
Income tax expense (benefit) |  | $ | 443 |  |  | (0.9 | )% |  | $ | 11,613 |  |  | (32.4 | )% |  | $ | (9,702 | ) |  | 77.0 | % |  | $ | 7,744 |  |  | 26.5 | %
Schedule of Significant Components of the Deferred Income Tax Assets and Liabilities | Significant components of deferred income tax assets and liabilities consisted of the following:
(in thousands) |  | As of December 31,
|  | 2017 |  | 2016 |  | 2015 (Restated) |  | 2014 (Restated)
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 15,399 |  |  | $ | 1,154 |  |  | $ | 66 |  |  | $ | — |
Research and development credits |  | 2,806 |  |  | 2,118 |  |  | 139 |  |  | — |
Other state credits |  | 989 |  |  | 407 |  |  | 164 |  |  | — |
Inventory |  | 2,560 |  |  | 5,837 |  |  | 5,094 |  |  | 3,035 |
Allowances and bad debts |  | 596 |  |  | 501 |  |  | 334 |  |  | 119 |
Accrued warranty |  | 3,387 |  |  | 3,820 |  |  | 1,413 |  |  | 948 |
Accrued wages and benefits |  | 351 |  |  | 786 |  |  | 893 |  |  | 917 |
Stock-based compensation |  | 645 |  |  | 1,021 |  |  | 756 |  |  | 576 |
Capitalized research and development costs |  | 1,090 |  |  | 2,291 |  |  | 2,617 |  |  | 2,316 |
Intangible amortization |  | 1,734 |  |  | 4,519 |  |  | 4,311 |  |  | — |
Other |  | 3,397 |  |  | 6,638 |  |  | 5,069 |  |  | 3,615 |
Total deferred tax assets |  | 32,954 |  |  | 29,092 |  |  | 20,856 |  |  | 11,526 |
Valuation allowance |  | (31,992 | ) |  | (26,847 | ) |  | — |  |  | — |
Total deferred tax assets, net of valuation allowance |  | $ | 962 |  |  | $ | 2,245 |  |  | $ | 20,856 |  |  | $ | 11,526 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Intangible amortization |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1,091 | )
Tax depreciation in excess of book depreciation on property, plant and equipment |  | (1,665 | ) |  | (2,709 | ) |  | (3,199 | ) |  | (1,870 | )
Total deferred tax liabilities |  | $ | (1,665 | ) |  | $ | (2,709 | ) |  | $ | (3,199 | ) |  | $ | (2,961 | )
Net deferred tax (liability) asset |  | $ | (703 | ) |  | $ | (464 | ) |  | $ | 17,657 |  |  | $ | 8,565 |
The Company’s net deferred tax assets and liabilities are presented as follows in the Consolidated Balance Sheets:
(in thousands) |  | As of December 31,
|  | 2017 |  | 2016 |  | 2015 (Restated) |  | 2014 (Restated)
Current deferred tax assets, net |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 8,552 |
Non-current deferred tax asset/(liabilities), net |  | (703 | ) |  | (464 | ) |  | 17,657 |  |  | 13 |
Net deferred tax (liability) asset |  | $ | (703 | ) |  | $ | (464 | ) |  | $ | 17,657 |  |  | $ | 8,565 |
Schedule of the Change in Unrecognized Tax Benefits | The change in unrecognized tax benefits excluding interest and penalties were as follows:
(in thousands) |  | For the Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015 |  | 2014
Unrecognized Tax Benefits Excluding Interest and Penalties |  |  |  |  |  | (Restated) |  | (Restated)
Balance at beginning of year |  | $ | 1,202 |  |  | $ | 1,338 |  |  | $ | 894 |  |  | $ | 614 |
Additions based on tax positions related to the current year |  | 105 |  |  | 168 |  |  | 525 |  |  | 373 |
Additions/(reductions) for tax positions of prior years |  | — |  |  | (304 | ) |  | (81 | ) |  | (93 | )
Balance at end of year |  | $ | 1,307 |  |  | $ | 1,202 |  |  | $ | 1,338 |  |  | $ | 894 |
Summary of Income Tax Examinations | With few exceptions, the major jurisdictions subject to examination by the relevant tax authorities and open tax years, stated as the Company’s fiscal years, are as follows:
Jurisdiction | Open Tax Years
U.S. Federal | 2014 | - | 2017
U.S. States | 2013 | - | 2017

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=109238393&loc=d3e36027-109320 + Details
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