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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 6. Income Taxes The Company's loss from continuing operations before income taxes for the years ended December 31, was as follows (in thousands):
| 2016 |  | 2015 |  | 2014
Income (loss) before provision for income taxes: |  |  |  |  |
United States | $ | (14,242 | ) |  | $ | (13,254 | ) |  | $ | (18,455 | )
Foreign | 2,259 |  |  | 629 |  |  | (1,740 | )
| $ | (11,983 | ) |  | $ | (12,625 | ) |  | $ | (20,195 | )
The components of the provision (benefit) for income taxes attributable to continuing operations are as follows (in thousands):
| 2016 |  | 2015 |  | 2014
Current |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 37 |  |  | (100 | ) |  | 54 |
Foreign | 964 |  |  | 932 |  |  | 163 |
Total Current | $ | 1,001 |  |  | $ | 832 |  |  | $ | 217 |
Deferred |  |  |  |  |
Federal | $ | 727 |  |  | $ | 293 |  |  | $ | 300 |
State | 131 |  |  | 31 |  |  | 10 |
Foreign | (329 | ) |  | (117 | ) |  | (605 | )
Total Deferred | 529 |  |  | 207 |  |  | (295 | )
| $ | 1,530 |  |  | $ | 1,039 |  |  | $ | (78 | )
As of December 31, 2016, the Company had federal net operating loss carryforwards of approximately $83 million and research and development credit carryforwards of approximately $1.3 million. The net operating loss and credit carryforwards will expire beginning in 2017, if not utilized. Utilization of the net operating losses and tax credits may be subject to substantial annual limitation due to the “change of ownership” provisions of the Internal Revenue Code of 1986. The annual limitation will result in the expiration of approximately $16.2 million of net operating losses and $0.8 million of credit carryforwards before utilization. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred taxes as of December 31 are as follows (in thousands):
| 2016 |  | 2015 |  | 2014
Deferred tax assets: |  |  |  |  |
Accrued expenses and allowances | $ | 993 |  |  | $ | 793 |  |  | $ | 733 |
Deferred revenue | 573 |  |  | 671 |  |  | 549 |
Stock compensation | 1,054 |  |  | 582 |  |  | 350 |
Net operating loss and tax credit carryforwards | 24,895 |  |  | 20,871 |  |  | 16,755 |
Capital expenses | 307 |  |  | — |  |  | — |
Other | 176 |  |  | 196 |  |  | 123 |
Valuation allowance for noncurrent deferred tax assets | (24,588 | ) |  | (18,507 | ) |  | (13,107 | )
Net deferred tax assets | $ | 3,410 |  |  | $ | 4,606 |  |  | $ | 5,403 |
Deferred tax liabilities: |  |  |  |  |
Capital expenses | $ | — |  |  | $ | (2 | ) |  | $ | (202 | )
Prepaid expenses | (31 | ) |  | (1 | ) |  | (1 | )
Intangible assets | (5,718 | ) |  | (6,481 | ) |  | (7,217 | )
Goodwill | (1,029 | ) |  | (561 | ) |  | (252 | )
Tax credit carryforwards | (38 | ) |  | (379 | ) |  | (737 | )
Net deferred tax liabilities | $ | (6,816 | ) |  | $ | (7,424 | ) |  | $ | (8,409 | )
Net deferred taxes | $ | (3,406 | ) |  | $ | (2,818 | ) |  | $ | (3,006 | )
Due to the uncertainty surrounding the timing of realizing the benefits of its domestic favorable tax attributes in future tax returns, the Company has placed a valuation allowance against its domestic net deferred tax asset, exclusive of goodwill. During the year ended December 31, 2016 and 2015, the valuation allowance increased by approximately $6.1 and $5.4 million, respectively, due primarily to operations and acquisitions. At December 31, 2016, we did not provide deferred income taxes on temporary differences resulting from earnings of certain foreign subsidiaries which are indefinitely reinvested. The reversal of these temporary differences could result in additional tax; however, it is not practicable to estimate the amount of any unrecognized deferred income tax liabilities at this time. The Company’s provision for income taxes differs from the expected tax expense (benefit) amount computed by applying the statutory federal income tax rate of 34% to income before taxes due to the following:
| 2016 |  | 2015 |  | 2014
Federal statutory rate | 34.0 | % |  | 34.0 | % |  | 34.0 | %
State taxes, net of federal benefit | 1.2 | % |  | 3.5 | % |  | 3.5 | %
Tax credits | (0.1 | )% |  | (0.2 | )% |  | (1.1 | )%
Effect of foreign operations | 1.1 | % |  | (2.2 | )% |  | 0.1 | %
Stock compensation | (1.7 | )% |  | (2.9 | )% |  | — | %
Permanent items and other | (1.6 | )% |  | (3.3 | )% |  | (1.7 | )%
Tax carryforwards not benefited | (45.7 | )% |  | (37.1 | )% |  | (34.4 | )%
| (12.8 | )% |  | (8.2 | )% |  | 0.4 | %
Under ASC 740-10, Income Taxes - Overall, the Company periodically reviews the uncertainties and judgments related to the application of complex income tax regulations to determine income tax liabilities in several jurisdictions. The Company uses a “more likely than not” criterion for recognizing an asset for unrecognized income tax benefits or a liability for uncertain tax positions. The Company has determined it has the following unrecognized assets or liabilities related to uncertain tax positions as of December 31, 2016. The Company does not anticipate any significant changes in such uncertainties and judgments during the next 12 months. To the extent the Company is required to recognize interest and penalties related to unrecognized tax liabilities, this amount will be recorded as an accrued liability, (in thousands).
Balance at December 31, 2014 | $ | 53 |
Additional based on tax positions related to the current year | — |
Additions for tax positions of prior years | 568 |
Reductions for tax positions of prior years | — |
Settlements | — |
Balance at December 31, 2015 | $ | 621 |
Additional based on tax positions related to the current year | — |
Additions for tax positions of prior years | 84 |
Reductions for tax positions of prior years | — |
Settlements | — |
Balance at December 31, 2016 | $ | 705 |
Due to the existence of the valuation allowance, future changes in our unrecognized tax benefits will not materially impact the Company’s effective tax rate. If the Company were to recognize unrecognized tax benefits as of December 31, 2016, $399,000 would impact the effective tax rate. The Company’s assessment of its unrecognized tax benefits is subject to change as a function of the Company’s financial statement audit. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2016, the Company had no accrued interest or penalties related to uncertain tax positions. The Company and its subsidiaries file tax returns in the U.S. federal jurisdiction and in several state and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years ending before December 31, 2013 and is no longer subject to state and local or foreign income tax examinations by tax authorities for years ending before December 31, 2012. The Company is not currently under audit for federal, state or any foreign jurisdictions.

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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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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