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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Taxes [Abstract] |
Income Taxes | 1 1. INCOME TAXES The Company files federal, state, local and foreign income tax returns in jurisdictions with varying statutes of limitations. Income taxes are computed using the asset and liability method in accordance with FASB ASC 740, “Income Taxes”, under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. The Company has recorded a full valuation allowance against substantially all net deferred tax assets as it is more likely than not that the benefit of the deferred tax assets will not be recognized in future periods. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. On December 22, 2017, H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the Tax Reform Act) was enacted, and amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, U.S. GAAP requires resulting tax effects of accounting for the Tax Reform Act to be recorded in the reporting period of enactment. Also on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. We have not completed our accounting for the tax effects of enactment of the Tax Reform Act. However, we have made a reasonable estimate of the effects on our existing deferred tax balances where possible, and accounted for material provisions of the Tax Reform Act as follows: Reduction of US federal corporate tax rate: The Tax Reform Act reduces the corporate tax rate from 34 to 21 percent, effective January 1, 2018. Consequently, the Company has recorded a reduction to its federal deferred tax assets of $29,480 with an offsetting reduction in its valuation allowance at December 31, 2017. In addition, the Company’s state deferred tax assets and corresponding valuation allowance have been adjusted to account for the impact of the federal rate change on state deferred taxes. Deemed Repatriation Transition Tax: The Tax Reform Act provides for a one-time "deemed repatriation" of accumulated foreign earnings for the year ended December 31, 2017. The Company does not anticipate a tax on the deemed repatriation as a result of its foreign deficits. Compensation and Shared-Based Payment Awards: The Tax Reform Act modifies the deductibility of covered employees’ compensation and eliminat es the exclusion of performance-based compensation under IRC § 162(m), prospectively. The Tax Reform Act includes a transition rule that permits the continued exclusion of performance-based compensation paid pursuant to a written, binding contract which was in effect on November 2, 2017, and which was not modified in any material respect on or after such date. The Company has not completed its analysis of all of its relevant equity compensation agreements to determine if the transition rule will apply and the deferred tax implications of this provision. Corporate Alternative Minimum Tax (AMT): The repeal of AMT provides companies with the ability to obtain refunds of historic AMT credits. The Company has recorded a deferred tax benefit of $102 associated with release of its valuation allowance on its AMT credits. Bonus Depreciation: The Tax Reform Act provides for 100 percent bonus depreciation on personal tangible property expenditures beginning September 27, 2017 through 2022. The bonus depreciation percentage is phased down from 100 percent beginning in 2023 through 2026. The Company is continuing to evaluat e its bonus depreciation election based on an analysis of property eligible for 100 percent bonus depreciation and its net operating loss carryforwards. The Company expects to complete the accounting for the Tax Reform Act when the 2017 U.S. corporate income tax return is filed in 2018. The ultimate impact may differ materially from these provisional amounts due to additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Reform Act. The detail of deferred tax assets and liabilities at December 31 is as follows: ﻿ ﻿
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﻿ |  |  |  |  |  |
﻿ |  | 2017 |  | 2016
﻿Deferred tax assets (liabilities): |  |  |  |  |  |
﻿Net operating loss carryforward |  | $ | 64,776 |  | $ | 84,056
﻿Research and development and AMT credit carryforwards, net |  |  | 5,339 |  |  | 5,446
﻿Equity compensation |  |  | 6,955 |  |  | 8,406
﻿Accruals and reserves |  |  | 874 |  |  | 914
﻿Inventories |  |  | 588 |  |  | 1,503
﻿Intangible assets |  |  | (11,297) |  |  | (16,922)
﻿Property and equipment, net |  |  | (339) |  |  | (1,487)
﻿Other, net |  |  | 179 |  |  | 66
﻿Subtotal |  |  | 67,075 |  |  | 81,982
﻿Less valuation allowance |  |  | (66,973) |  |  | (81,982)
﻿Total |  | $ | 102 |  | $ | —
﻿ The Company’s provision for income taxes for each of the years ended December 31 is as follows: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | 2017 |  | 2016 |  | 2015
﻿Current Tax Expense |  |  |  |  |  |  |  |  |
﻿Federal |  | $ | — |  | $ | — |  | $ | 2
﻿State |  |  | 44 |  |  | 32 |  |  | 34
﻿Foreign |  |  | 72 |  |  | 8 |  |  | —
﻿Total current tax expense |  |  | 116 |  |  | 40 |  |  | 36
﻿Deferred Tax Expense |  |  |  |  |  |  |  |  |
﻿Federal |  | $ | 18,485 |  | $ | (7,333) |  | $ | (7,154)
﻿State |  |  | (1,337) |  |  | 210 |  |  | (398)
﻿Foreign |  |  | (2,241) |  |  | (1,177) |  |  | (955)
﻿Change in valuation allowance |  |  | (15,009) |  |  | 8,300 |  |  | 8,507
﻿Total deferred tax expense |  |  | (102) |  |  | — |  |  | —
﻿Total tax expense |  | $ | 14 |  | $ | 40 |  | $ | 36
﻿ The Company has federal net operating loss carryforward s of $240,286 whi ch have expirations between 2021 and 2038 and state net operating loss carryforwards of $147,841 with varying expirations from 2018 to 2038. At December 31, 201 6, there were $2,816 of unrecognized deferred tax assets that arose from tax deductions for equity compensation in excess of compensation recognized for financial reporting during years when net operating losses were created. On January 1, 2017, the Company adopted ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” and recognized $2,816 of previously unrecognized deferred tax assets with a corresponding increase in its valuation allowance. A portion of the Company’s federal and state net operating loss carryforwards are subject to certain limitations under Internal Revenue Code Sections 382 and 383. The Company has federal research and development credit carryforwards of $6,39 2 which have expirations between 2022 and 2038. Additionally, t he Company has foreign net operating loss carryforward s of approximately $30,501 which have expirations between 2018 and 2027. The Company’s 201 7, 201 6 and 201 5 effective income tax rates differ from the federal statutory rate as follows: ﻿ ﻿
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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | 2017 |  | 2016 |  | 2015
﻿Federal tax at statutory rate |  | 34.00 | % |  | $ | (9,139) |  | 34.00 | % |  | $ | (11,322) |  | 34.00 | % |  | $ | (9,240)
﻿Federal tax rate change |  | (109.68) |  |  |  | 29,480 |  |  |  |  |  |  |  |  |  |  |  |
﻿Federal R&D credit |  | (0.40) |  |  |  | 107 |  | 2.89 |  |  |  | (962) |  | 3.23 |  |  |  | (878)
﻿Federal NOL adjustment for ASU |  | 10.48 |  |  |  | (2,816) |  |  |  |  |  |  |  |  |  |  |  |
﻿Valuation allowance |  | 55.84 |  |  |  | (15,009) |  | (24.93) |  |  |  | 8,300 |  | (31.30) |  |  |  | 8,507
﻿State income taxes |  | 4.81 |  |  |  | (1,292) |  | (0.69) |  |  |  | 231 |  | 1.38 |  |  |  | (375)
﻿Foreign NOL rate change |  | 1.30 |  |  |  | (348) |  | (1.36) |  |  |  | 452 |  | (2.02) |  |  |  | 549
﻿Foreign tax rate differential |  | (2.45) |  |  |  | 658 |  | (1.62) |  |  |  | 539 |  | (1.99) |  |  |  | 542
﻿Permanent differences and other |  | 6.05 |  |  |  | (1,627) |  | (8.41) |  |  |  | 2,802 |  | (3.43) |  |  |  | 931
﻿Effective tax rate |  | (0.05) | % |  | $ | 14 |  | (0.12) | % |  | $ | 40 |  | (0.13) | % |  | $ | 36
﻿ The Company’s pre-tax book loss for domestic and international operations, respectively, was $(19,409) and $(7,469) for 201 7, ($27,271) and ($6,027) for 201 6 and ($21,157) and ($6,019) for 201 5. The Company had undistributed earnings of foreign subsidiaries of approximately $107 at December 31, 201 7. The Company does not consider these earnings as permanently reinvested and thus has recognized appropriate U.S. current and deferred taxes on such amounts. Federal, state, and local tax returns of the Company are routinely subject to examination by various taxing authorities. Federal income tax returns for periods beginning in 2015 are open for examination. Generally, state and foreign income tax returns for periods beginning in 201 4 are open for examination. However, taxing authorities have the ability to adjust net operating loss and tax credit carryforwards from years prior to these periods. The Company has not recognized certain tax benefits because of the uncertainty of realizing the entire value of the tax position taken on income tax returns upon review by the taxing authorities. A reconciliation of the change in federal and state unrecognized tax benefits for 201 7, 201 6 and 201 5 is presented below: ﻿ ﻿
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﻿ |  |  |  |  |  |  |  |  |
﻿ |  | 2017 |  | 2016 |  | 2015
﻿Balance at the beginning of the year |  | $ | 3,175 |  | $ | 1,982 |  | $ | 1,982
﻿Increases (decreases) for prior year tax positions |  |  | (2,018) |  |  | 1,193 |  |  | —
﻿Increases (decreases) for current year tax positions |  |  | — |  |  | — |  |  | —
﻿Increases (decreases) related to settlements |  |  | — |  |  | — |  |  | —
﻿Decreases related to statute lapse |  |  | — |  |  | — |  |  | —
﻿Balance at the end of the year |  | $ | 1,157 |  | $ | 3,175 |  | $ | 1,982
﻿ The Internal Revenue Service completed its review of the Company’s 2014 federal income tax return in February 2017. In 2017, the Company also completed a detailed analysis of R&D credit carryforwards for the tax years 2008 through 2016. As a result of this analysis, as well as completion of the IRS audit of the 2014 credit, the Company has reduced both the R&D credit carryforward and related unrecognized tax benefits by $2,018. The Company has not had to accrue any interest and penalties related to unrecognized income tax benefits as a result of offsetting of net operating losses. However, if the situation occurs, the Company will recognize interest and penalties within the income tax expense line in the Consolidated Statements of Operations and Comprehensive Loss and within the related tax liability line in the Consolidated Balance Sheets. There are no amounts included in the balance of unrecognized tax benefits at December 31, 201 7, 201 6 and 201 5 that, if recognized, would affect the effective tax rate. Included in the balance of unrecognized tax benefits at December 31, 201 7 are $1,157 of tax benefits that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes and valuation allowance. The Company does not expect that its unrecognized tax benefits for research credits will significantly change within twelve months of December 31, 201 7.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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