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INCOME TAXES | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35% to 21%; (2) bonus depreciation that will allow for full expensing of qualified property; (3) creating a new limitation on deductible interest expense; (4) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (5) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017; and (6) limitations on the deductibility of certain executive compensation. The SEC issued guidance on accounting for the tax effects of the Tax Act. The Company must reflect the income tax effects of those aspects of the Tax Act for which the accounting is known. As a result of the reduction act in the U.S. corporate income tax rate from 35% to 21% under the Tax Reform Act, the Company revalued its net deferred tax liabilities at December 31, 2017, resulting in an income tax benefits of $0.196 million included in the provision for income taxes for the year ended December 31, 2017. The Company has not made additional measurement window adjustments during the year ended December 31, 2018. Components of the provision for income taxes from 2018 continuing operations and 2017 and 2016 all operations are as follows:
(In thousands) | December 31, 2018 |  | December 31, 2017 |  | December 31, 2016
Current: |  |  |  |  |
Federal | $ | (3,073 | ) |  | $ | — |  |  | $ | — |
State | (754 | ) |  | 22 |  |  | 38 |
Foreign | 20 |  |  | 17 |  |  | 26 |
| (3,807 | ) |  | 39 |  |  | 64 |
Deferred: |  |  |  |  |
Federal | 24 |  |  | 1,581 |  |  | (2,505 | )
State | 63 |  |  | (401 | ) |  | (277 | )
Foreign | — |  |  | — |  |  | — |
| 87 |  |  | 1,180 |  |  | (2,782 | )
Valuation Allowance | (57 | ) |  | (1,375 | ) |  | 2,782 |
Total Provision for Income Tax from continuing operations | $ | (3,777 | ) |  | $ | (156 | ) |  | $ | 64 |
The Company recognized tax expense of $1.20 million attributable to income from discontinued operations and $16.14 million attributable to the gain on sales of the Core business in the Income Statement in the year ended December 31, 2018. Below is a reconciliation of the statutory federal income tax rate to our effective tax rate:
| Year Ended December 31,
| 2018 |  | 2017 |  | 2016
Federal tax provision | 21.0 | % |  | 34.0 | % |  | 34.0 | %
State taxes (net of federal benefit) | 5.6 | % |  | 4.8 | % |  | 3.7 | %
Warrant gains | — | % |  | 0.4 | % |  | 31.4 | %
Valuation allowance | 0.4 | % |  | 28.9 | % |  | (71.8 | )%
Change in federal tax rate | — | % |  | (71.2 | )% |  | — | %
Other | 1.9 | % |  | 6.2 | % |  | 1.5 | %
Total | 28.9 | % |  | 3.1 | % |  | (1.2 | )%
Major components of the Company’s deferred tax assets (liabilities) at December 31, 2018, 2017, and 2016, are as follows:
(In thousands) | December 31, 2018 |  | December 31, 2017 |  | December 31, 2016
Deferred tax assets: |  |  |  |  |
Loss and credit carry-forwards | $ | — |  |  | $ | 7,722 |  |  | $ | 9,169 |
Stock-based compensation | 636 |  |  | 549 |  |  | 519 |
Inventory Reserve | 115 |  |  | 494 |  |  | 534 |
Intangibles | 146 |  |  | — |  |  | — |
Other | 744 |  |  | 178 |  |  | 263 |
Total deferred tax assets | 1,641 |  |  | 8,943 |  |  | 10,485 |
Valuation allowance | (1,491 | ) |  | (8,756 | ) |  | (10,185 | )
Total deferred tax assets, net of valuation allowance | 150 |  |  | 187 |  |  | 300 |
Deferred tax liabilities: |  |  |  |  |
State taxes (capital) | — |  |  | (17 | ) |  | (19 | )
Property and equipment | (150 | ) |  | (294 | ) |  | (459 | )
Intangibles | — |  |  | (244 | ) |  | (386 | )
Total deferred tax liabilities | (150 | ) |  | (555 | ) |  | (864 | )
Net deferred tax liabilities | $ | — |  |  | $ | (368 | ) |  | $ | (564 | )
We consider all positive and negative evidence regarding the realization of deferred tax assets, including past operating results and future sources of taxable income. For the period ended December 31, 2018, it is expected that the gain from the sale of the Core business segment to Symmetry will substantially utilize all of the historical Federal net operating loss carryover of $23.8 million and state(s) net operating loss carryover of $19.1 million. As a result, the valuation allowance on these deferred tax assets as well as other deferred tax assets was released during the year ended December 31, 2018 and the Company recorded a tax benefit from discontinued operations of $7.32 million from the release of the valuation allowance. We assess the financial statement impact of an uncertain tax position taken or expected to be taken on an income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized in the financial statements unless it is more likely than not of being sustained. As of December 31, 2018, we have reserved $1.3 million of potential tax benefits. The following is a roll-forward of the Company's total gross unrecognized tax benefits, not including interest and penalties, for the year ended December 31, 2018.
(in thousands) |  | Gross Unrealized Tax Benefits
Balance at January 1, 2018 |  | $ | — |
Additions of tax positions related to the current year |  | — |
Additions of tax positions related to the prior year |  | 1,313 |
Decreases for tax positions related to prior year |  | — |
Balance at December 31, 2018 |  | $ | 1,313 |
The Company is subject to U.S. federal and state income tax examination. The Company’s 2015 through 2017 U.S. federal income tax returns are subject to examination by the Internal Revenue Service. The Company’s state income tax returns are subject to examination for the 2014 through 2017 tax years.

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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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