XML 34 R19.htm IDEA: XBRL DOCUMENT
v3.19.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Taxes [Abstract] |
Income Taxes | Note 11 − Income Taxes The income tax provision is comprised of the following:
|  | Year Ended December 31, 2018 |  |  | Year Ended December 31, 2017 |  |  | Year Ended December 31, 2016 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State |  |  | (3 | ) |  |  | (3 | ) |  |  | (133 | )
Foreign |  |  | — |  |  |  | — |  |  |  | — |
|  |  | (3 | ) |  |  | (3 | ) |  |  | (133 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | — |  |  |  | — |
State |  |  | — |  |  |  | — |  |  |  | — |
Total income tax provision |  | $ | (3 | ) |  | $ | (3 | ) |  | $ | (133 | )
A reconciliation of the United States federal statutory income tax rate to our effective income tax rate is as follows:
|  | Year Ended December 31, 2018 |  |  | Year Ended December 31, 2017 |  |  | Year Ended December 31, 2016 |
United States federal statutory rate |  |  | 21.00 | % |  |  | 35.00 | % |  |  | 35.00 | %
State taxes, net of federal benefit |  |  | (0.01 | )% |  |  | (0.01 | )% |  |  | (0.31 | )%
Valuation allowance |  |  | (24.33 | )% |  |  | (35.94 | )% |  |  | (35.43 | )%
Accounting method change - ASC 606 |  |  | 2.07 | % |  |  | — |  |  |  | — |
R&D Credit |  |  | 1.53 | % |  |  | 1.43 | % |  |  | 0.66 | %
Other |  |  | (0.27 | )% |  |  | (0.50 | )% |  |  | (0.39 | )%
Effective income tax rate |  |  | (0.01 | )% |  |  | (0.02 | )% |  |  | (0.47 | )%
In 2018, 2017 and 2016, we had pre-tax losses of $25 million, $17 million and $28 million, respectively, which are available for carry forward to offset future taxable income. We made determinations to provide full valuation allowances for our net deferred tax assets at the end of 2018, 2017 and 2016, including NOL carryforwards generated during the years, based on our evaluation of positive and negative evidence, including our history of operating losses and the uncertainty of generating future taxable income that would enable us to realize our deferred tax assets. Deferred tax assets (liabilities) consist of the following:
|  | Year Ended December 31, 2018 |  |  | Year Ended December 31, 2017 |
Deferred tax assets: |  |  |  |  |  |
Reserves and accruals |  | $ | 45 |  |  | $ | 963 |
Research and development credits and other credits |  |  | 1,635 |  |  |  | 1,300 |
Net operating loss carry forward |  |  | 25,733 |  |  |  | 22,448 |
Stock based compensation |  |  | 8,857 |  |  |  | 9,260 |
Other |  |  | 26 |  |  |  | 54 |
Total deferred tax assets |  |  | 36,296 |  |  |  | 34,025 |
Valuation allowance |  |  | (36,296 | ) |  |  | (34,025 | )
Deferred tax assets after valuation allowance |  |  | — |  |  |  | — |
Deferred tax liability: |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | — |  |  |  | — |
Total deferred tax liability |  |  | — |  |  |  | — |
Net deferred tax assets |  | $ | — |  |  | $ | — |
On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Act”). The Act amended the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, the Act reduced the corporate federal tax rate from a maximum of 35% to a 21% rate effective on January 1, 2018. The tax rate of 21% was applied to the balances of our federal deferred tax assets and liabilities at December 31, 2018, but because we provided a full valuation allowance against our net deferred tax assets, no tax impact was recognized due to the federal tax rate change. The Act changes the worldwide territorial tax system. The new Section 951A impose Global Intangible Low-Taxed Income “GILTI” tax on taxpayers who own 10% or more of a controlled foreign corporation. GILTI is broadly the excess income of foreign subsidiaries over the routine return on tangible business assets. The company has no GILTI tax liability in 2018 because its foreign subsidiary has negative earnings in 2018. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all deferred assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets at December 31, 2018 will not be fully realizable. Accordingly, management has maintained a full valuation allowance against its net deferred tax assets at December 31, 2018. The net change in the total valuation allowance for the 12 months ended December 31, 2018 was an increase of $2,271. At December 31, 2018, we had federal and state net operating loss carry-forwards of approximately $112,709 and $107,948, respectively, expiring beginning in 2027 for federal and in 2028, for state. At December 31, 2018, we had federal research and development credit carry-forwards of approximately $1,635, expiring beginning in 2031. Internal Revenue Code Section 382 places a limitation (the “Section 382 Limitation”) on the amount of taxable income that can be offset by net operating loss carry forwards after a change in control (generally greater than 50% change in ownership) of a loss corporation. California, the state in which our headquarters was once located, has similar rules. Our capitalization described herein may have resulted in such a change. Generally, after a control change, a loss corporation cannot deduct net operating loss carry forwards generated in years prior to the deemed change of control under IRC Section 382 in excess of the Section 382 Limitation. Management has done a high level analysis on the utilization of its NOL carryforwards against taxable income in future periods and determined on a more likely than not basis it will be able to use all of its NOLs before they expire. We are required to recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. As a result, we have provided contingent reserve under ASC 740-10 of $316 at December 31, 2018, 2017 and 2016. Our tax returns are subject to review by various tax authorities. The returns subject to review are those from 2005 forward. Our policy is to recognize interest and penalties, if any, accrued on any unrecognized tax benefits, as a component of income tax expense. We had no interest or penalties accrued for the year ended December 31, 2018. A reconciliation of beginning and ending amounts of unrecognized tax benefits follows:
|  | Year Ended December 31, 2018 |  |  | Year Ended December 31, 2017 |  |  | Year Ended December 31, 2016 |
Balance at the beginning of the year |  | $ | 316 |  |  | $ | 316 |  |  | $ | 316 |
Additions based on tax positions related to the current year |  |  | — |  |  |  | — |  |  |  | — |
Additions for tax positions of prior years |  |  | — |  |  |  | — |  |  |  | — |
Settlements |  |  | — |  |  |  | — |  |  |  | — |
Lapse of applicable statute of limitations |  |  | — |  |  |  | — |  |  |  | — |
Balance at the end of the year |  | $ | 316 |  |  | $ | 316 |  |  | $ | 316 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration