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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Taxes [Abstract] |
Income Taxes | F. Income Taxes Income tax (benefit) provision for the years ended December 31, 2016 and 2015 is as follows:
|  | 2016 |  |  | 2015 |
|  | (in thousands) |
Current: |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State and local |  |  | 8 |  |  |  | 8 |
Foreign |  |  | 41 |  |  |  | — |
Total Current |  |  | 49 |  |  |  | 8 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (211 | ) |  |  | (292 | )
State and local |  |  | 267 |  |  |  | (12 | )
Foreign |  |  | 55 |  |  |  | (1 | )
Total before change in valuation allowance |  |  | 111 |  |  |  | (305 | )
Change in Valuation Allowance |  |  | (325 | ) |  |  | 305 |
Net Deferred |  |  | (214 | ) |  |  | — |
|  | $ | (165 | ) |  | $ | 8 |
A reconciliation of the (benefit) provision for income taxes and the amount computed by applying the statutory federal income tax rate to income before income taxes:
|  | 2016 |  |  | 2015 |
|  | (in thousands) |
Tax provision at expected statutory rate |  | $ | (8 | ) |  | $ | (239 | )
State taxes, net of federal benefit |  |  | (25 | ) |  |  | 4 |
Permanent differences |  |  | 6 |  |  |  | 8 |
Credits |  |  | (123 | ) |  |  | (97 | )
Foreign tax expense, and other |  |  | 11 |  |  |  | 27 |
True-up to State NOL |  |  | 299 |  |  |  | — |
Change in valuation allowance |  |  | (325 | ) |  |  | 305 |
(Benefit) provision for income taxes |  | $ | (165 | ) |  | $ | 8 |
Loss before income taxes from domestic operations was ($434,000) and ($731,000) in 2016 and 2015, respectively. Income before income taxes from foreign operations was $417,000 and $28,000 in 2016 and 2015, respectively. At December 31, 2016, U.S. income taxes benefit have been provided on approximately $153,000 of losses of the Company's foreign subsidiaries, because these losses are not considered to be indefinitely reinvested. As of December 31, 2016, earnings of non-U.S. subsidiaries considered to be indefinitely reinvested totaled $628,000. No provision for U.S. income taxes has been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to U.S. taxes, reduced by any foreign tax credits available. It is not practicable to estimate the amount of additional tax that might be payable on this undistributed foreign income. The Company has a total federal net operating loss ("NOL") carry-forward of $10,075,000 as of December 31, 2016. This federal NOL carry-forward expires through 2036 if not utilized prior to that date. The Company has total state NOL carry-forwards of $16,263,000 as of December 31, 2016. These state NOL carry-forwards expire through 2036 if not utilized prior to that date. The Company has research and development tax credit carry-forwards of approximately $1,450,000 at December 31, 2016, that can be used to reduce future income tax liabilities and expire principally between 2020 and 2036. The Company has foreign tax credit carry-forwards of approximately $359,000 at December 31, 2016, that are available to reduce future U.S. income tax liabilities subject to certain limitations. These foreign tax credit carry-forwards expire at various times between 2018 and 2020. Additionally, the Company has federal alternative minimum tax ("AMT") credits of approximately $111,000 at December 31, 2016, that are available to offset future federal tax liabilities, and have no expiration. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will or will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. During the year ended December 31, 2016, based upon the weighting of positive and negative evidence, the Company has determined the results of future operations of one of its foreign subsidiaries will generate enough taxable income that it is more likely than not that deferred tax assets of $214,000, generated from foreign NOLs, can be utilized in the foreseeable future. Accordingly, the valuation allowance previously established for this tax benefit has been reversed. The Company has also determined that a full valuation against the remaining net deferred tax assets is required and has recorded a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. Should a change in circumstances lead to a change in judgment about the ability to realize deferred tax assets in future years, the Company will adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding increase or charge to income. The Company recognizes interest and/or penalties, if any, related to income tax matters in income tax expense. Deferred income taxes for 2016 and 2015 were provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Tax effects of temporary differences and carry-forwards at December 31, 2016 and 2015, were as follows:
|  | December 31, 2016 |  |  | December 31, 2015 |
|  | Deferred Tax |  |  | Deferred Tax |
|  | Asset |  |  | Liability |  |  | Asset |  |  | Liability |
|  | (in thousands) |
Inventory reserve |  | $ | 1,083 |  |  | $ | — |  |  | $ | 1,179 |  |  | $ | — |
Fixed assets |  |  | — |  |  |  | 151 |  |  |  | — |  |  |  | 230 |
Other reserves and accruals |  |  | 213 |  |  |  | — |  |  |  | 173 |  |  |  | — |
Stock-based compensation |  |  | 384 |  |  |  | — |  |  |  | 380 |  |  |  | — |
Undistributed foreign earnings |  |  | — |  |  |  | 144 |  |  |  | — |  |  |  | 97 |
Other |  |  | — |  |  |  | 56 |  |  |  | — |  |  |  | 68 |
Tax credit carry-forwards |  |  | 1,921 |  |  |  | — |  |  |  | 1,840 |  |  |  | — |
Federal tax loss carry-forwards |  |  | 3,428 |  |  |  | — |  |  |  | 3,270 |  |  |  | — |
State tax loss carry-forwards |  |  | 627 |  |  |  | — |  |  |  | 915 |  |  |  | — |
Foreign tax loss carry-forwards |  |  | 214 |  |  |  | — |  |  |  | 269 |  |  |  | — |
Total deferred income taxes |  |  | 7,870 |  |  | $ | 351 |  |  |  | 8,026 |  |  | $ | 395 |
Valuation allowance |  |  | (7,305 | ) |  |  |  |  |  |  | (7,631 | ) |  |  |  |
Net deferred tax assets |  | $ | 214 |  |  |  |  |  |  | $ | — |  |  |  |  |
At December 31, 2016, the net deferred tax assets of $214,000 presented in the Company's balance sheet comprises deferred tax assets of $565,000, offset by deferred tax liabilities of $351,000. At December 31, 2015, the net deferred tax assets of $0 presented in the Company's balance sheet comprises deferred tax assets of $395,000, offset by deferred tax liabilities of $395,000. The Company will recognize any interest and penalties related to unrecognized tax positions in income tax expense. At the date of adoption of ASC 740, the Company did not have a liability for unrecognized tax positions. In addition, the Company did not record any increases or decreases to its liability for unrecognized tax positions during the years ended December 31, 2016 or 2015. Accordingly, the Company has not accrued for any interest and penalties as of December 31, 2016 or 2015. The Company does not anticipate any change in its liability for unrecognized tax positions over the next fiscal year. The Company files income tax returns in the U.S. federal, various state, Hong Kong and India jurisdictions. The statute of limitations for assessment by the Internal Revenue Service ("IRS") and state tax authorities is open for tax years ended December 31, 2012, 2013 and 2014, although carry-forward attributes that were generated prior to tax year 2012, including NOL carry-forwards and tax credits, may still be adjusted upon examination by the IRS or state tax authorities if they either have been or will be used in a future period. The Company is generally subject to examinations by foreign tax authorities from 2010 to the present.

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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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