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Income Taxes (Tables) | 12 Months Ended
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Jan. 03, 2020
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) from continuing operations before provision (benefit) for income taxes was as follows (in thousands):
|  | Years Ended |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Domestic |  | $ | (5,321 | ) |  | $ | (2,629 | ) |  | $ | (3,318 | )
Foreign |  |  | 18,347 |  |  |  | 9,268 |  |  |  | 1,022 |
Income (loss) before income taxes |  | $ | 13,026 |  |  | $ | 6,639 |  |  | $ | (2,296 | )
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes consisted of the following (in thousands):
|  | Years Ended |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Current tax provision: |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State |  |  | 13 |  |  |  | 10 |  |  |  | 12 |
Foreign |  |  | 2,446 |  |  |  | 1,220 |  |  |  | 378 |
Total current provision |  |  | 2,459 |  |  |  | 1,230 |  |  |  | 390 |
Deferred tax provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  |  | (3,003 | ) |  |  | — |  |  |  | (546 | )
State |  |  | (373 | ) |  |  | — |  |  |  | — |
Foreign |  |  | (105 | ) |  |  | 441 |  |  |  | (1 | )
Total deferred provision (benefit) |  |  | (3,481 | ) |  |  | 441 |  |  |  | (547 | )
Provision (benefit) for income taxes |  | $ | (1,022 | ) |  | $ | 1,671 |  |  | $ | (157 | )
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate was as follows (dollars in thousands):
|  | Years Ended |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | Rate |  |  | Amount |  |  | Rate |  |  | Amount |  |  | Rate |  |  | Amount |
Computed provision (benefit) for taxes based on income at statutory rate |  |  | 21.0 | % |  | $ | 2,735 |  |  |  | 21.0 | % |  | $ | 1,394 |  |  |  | 34.0 | % |  | $ | (781 | )
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Permanent differences |  |  | 17.4 |  |  |  | 2,266 |  |  |  | 0.6 |  |  |  | 41 |  |  |  | (0.9 | ) |  |  | 21 |
Change in the future federal tax rate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (833.0 | ) |  |  | 19,125 |
State taxes, net of federal income tax benefit |  |  | (2.2 | ) |  |  | (284 | ) |  |  | 0.1 |  |  |  | 8 |  |  |  | (0.3 | ) |  |  | 8 |
State tax benefit |  |  | 0.7 |  |  |  | 93 |  |  |  | (6.7 | ) |  |  | (447 | ) |  |  | 8.3 |  |  |  | (190 | )
Foreign tax differential |  |  | (11.6 | ) |  |  | (1,514 | ) |  |  | (11.0 | ) |  |  | (730 | ) |  |  | (1.3 | ) |  |  | 29 |
Expiration of state net operating tax loss carryforwards |  |  | 8.0 |  |  |  | 1,039 |  |  |  | — |  |  |  | — |  |  |  | (36.4 | ) |  |  | 836 |
Foreign earnings not permanently reinvested, net of the participation exemption |  |  | (0.1 | ) |  |  | (7 | ) |  |  | (14.0 | ) |  |  | (926 | ) |  |  | 108.1 |  |  |  | (2,482 | )
Foreign dividend withholding |  |  | — |  |  |  | — |  |  |  | 4.8 |  |  |  | 317 |  |  |  | (0.3 | ) |  |  | 7 |
ASC 718 share based payment adjustment |  |  | — |  |  |  | — |  |  |  | (6.5 | ) |  |  | (434 | ) |  |  | — |  |  |  | — |
Other |  |  | 1.0 |  |  |  | 122 |  |  |  | 0.5 |  |  |  | 30 |  |  |  | (2.6 | ) |  |  | 59 |
Valuation allowance |  |  | (42.0 | ) |  |  | (5,472 | ) |  |  | 36.4 |  |  |  | 2,418 |  |  |  | 731.2 |  |  |  | (16,789 | )
Effective tax provision (benefit) |  |  | (7.8 | )% |  | $ | (1,022 | ) |  |  | 25.2 | % |  | $ | 1,671 |  |  |  | 6.8 | % |  | $ | (157 | )
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets (liabilities) at January 3, 2020 and December 28, 2018 were as follows (in thousands):
|  | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for doubtful accounts and sales returns |  | $ | 233 |  |  | $ | 252 |
Inventories |  |  | 703 |  |  |  | 560 |
Accrued vacation |  |  | 428 |  |  |  | 387 |
Accrued other expenses |  |  | 1,036 |  |  |  | 1,232 |
Stock-based compensation |  |  | 3,455 |  |  |  | 2,489 |
Pensions |  |  | 1,159 |  |  |  | 884 |
Depreciation and amortization |  |  | 162 |  |  |  | 843 |
Net operating loss carryforwards |  |  | 32,251 |  |  |  | 34,347 |
Business, foreign, AMT and R&D credit carryforwards |  |  | 3,164 |  |  |  | 3,256 |
Prepaid expenses |  |  | 272 |  |  |  | 272 |
Capitalized R&D |  |  | 986 |  |  |  | 968 |
Operating lease liability |  |  | 1,309 |  |  |  | — |
Other |  |  | 5 |  |  |  | 122 |
Valuation allowance |  |  | (37,603 | ) |  |  | (43,075 | )
Total deferred tax assets |  | $ | 7,560 |  |  | $ | 2,537 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Foreign tax withholding |  | $ | (1,295 | ) |  | $ | (1,282 | )
Operating lease ROU assets |  |  | (1,309 | ) |  |  | — |
Amortization of R&D |  |  | (805 | ) |  |  | (759 | )
Net foreign earnings not permanently reinvested |  |  | (401 | ) |  |  | (240 | )
Total deferred tax liabilities |  |  | (3,810 | ) |  |  | (2,281 | )
Total net deferred tax assets |  | $ | 3,750 |  |  | $ | 256 |
Summary of Income Tax Examinations | The following tax years remain subject to examination:
Significant jurisdictions |  | Open Years
U.S. Federal |  | 2016 – 2018
California |  | 2015 – 2018
Switzerland |  | 2018
Japan |  | 2017 – 2018

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