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INCOME TAXES | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Components of the provision for income taxes from continuing operations are as follows:
(In thousands) | December 31, 2019 |  | December 31, 2018 as Restated |  | December 31, 2017
Current: |  |  |  |  |
Federal | $ | (12 | ) |  | $ | (3,073 | ) |  | $ | — |
State | (205 | ) |  | (884 | ) |  | 22 |
Foreign | 87 |  |  | 20 |  |  | 17 |
| (130 | ) |  | (3,937 | ) |  | 39 |
Deferred: |  |  |  |  |
Federal | (3,989 | ) |  | (171 | ) |  | 1,581 |
State | (741 | ) |  | 7 |  |  | (401 | )
| (4,730 | ) |  | (164 | ) |  | 1,180 |
Valuation allowance | 4,730 |  |  | 194 |  |  | (1,375 | )
Total provision for income tax from continuing operations | $ | (130 | ) |  | $ | (3,907 | ) |  | $ | (156 | )
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,
| 2019 |  | 2018 |  | 2017
Federal tax provision | 21.0 | % |  | 21.0 | % |  | 34.0 | %
State taxes (net of federal benefit) | 4.3 | % |  | 5.6 | % |  | 4.8 | %
Warrant gains | — | % |  | — | % |  | 0.4 | %
Valuation allowance | (23.8 | )% |  | (1.3 | )% |  | 28.9 | %
Change in federal tax rate | — | % |  | — | % |  | (71.2 | )%
Other | (0.8 | )% |  | 1.3 | % |  | 6.2 | %
Total | 0.7 | % |  | 26.6 | % |  | 3.1 | %
Major components of the Company’s deferred tax assets (liabilities) are as follows:
(In thousands) | December 31, 2019 |  | December 31, 2018 as Restated |  | December 31, 2017
Deferred tax assets: |  |  |  |  |
Loss and credit carry-forwards | $ | 4,779 |  |  | $ | — |  |  | $ | 7,722 |
Stock-based compensation | 1,004 |  |  | 721 |  |  | 549 |
Inventory Reserve | 99 |  |  | 115 |  |  | 494 |
Intangibles | 34 |  |  | 146 |  |  | — |
Other | 1,000 |  |  | 910 |  |  | 178 |
Total deferred tax assets | 6,916 |  |  | 1,892 |  |  | 8,943 |
Valuation allowance | (6,472 | ) |  | (1,742 | ) |  | (8,756 | )
Total deferred tax assets, net of valuation allowance | 444 |  |  | 150 |  |  | 187 |
Deferred tax liabilities: |  |  |  |  |
State taxes (capital) | — |  |  | — |  |  | (17 | )
Property and equipment | (245 | ) |  | (150 | ) |  | (294 | )
Intangibles | — |  |  | — |  |  | (244 | )
Lease right-of-use assets | (199 | ) |  | — |  |  | — |
Total deferred tax liabilities | (444 | ) |  | (150 | ) |  | (555 | )
Net deferred tax liabilities | $ | — |  |  | $ | — |  |  | $ | (368 | )
We consider all positive and negative evidence regarding the realization of deferred tax assets, including past operating results and future sources of taxable income. We consider the earnings of Apyx Bulgaria, EOOD to be indefinitely invested outside the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestment of those subsidiary earnings. We have not recorded a deferred tax liability related to the U.S. Federal and State income taxes and foreign withholding taxes on the undistributed earnings of Apyx Bulgaria, EOOD indefinitely invested outside the United States. If we decide to repatriate the foreign earnings, we would need to adjust our income tax provision in the period we determined that the earnings will no longer be indefinitely invested outside the United States. 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, 2019 and 2018, we have reserved approximately $1.3 million of potential tax benefits and accrued approximately $0.2 million of interest and penalties on these positions. It is expected that the amount of unrecognized tax benefit change within the next 12 months will not be significant. 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, 2019.
(in thousands) |  | Gross Unrealized Tax Benefits
Balance at January 1, 2019 |  | $ | 1,313 |
Additions of tax positions related to the current year |  | — |
Additions of tax positions related to the prior year |  | — |
Decreases for tax positions related to prior year |  | — |
Balance at December 31, 2019 |  | $ | 1,313 |
The Company is subject to U.S. federal and state income tax examination. The Company’s 2016 through 2018 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 2015 through 2018 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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