XML 34 R15.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Taxes [Abstract] |
INCOME TAXES | NOTE 9: INCOME TAXES Our gross deferred tax assets are primarily related to net federal and state operating loss carryforwards (NOLs). We have substantial NOLs that are limited in its usage by IRC Section 382. IRC Section 382 generally imposes an annual limitation on the amount of NOLs that may be used to offset taxable income when a corporation has undergone significant changes in stock ownership within a statutory testing period. We have performed a preliminary analysis of the annual NOL carryforwards and limitations that are available to be used against taxable income. The estimated federal NOL carryforward after application of the IRC Section 382 limitation is $19.3 million and foreign NOL carryforward is $7.0 million as of December 31, 2017. The Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017 and introduces significant changes to the U.S. income tax law. Effective in 2018, the Tax Act reduces U.S. statutory tax rates from 35% to 21%. Accordingly, we remeasured our deferred taxes as of December 31, 2017 to reflect the reduced rate that will apply in future periods when these deferred taxes are settled or realized, resulting in a one-time $0.2 million net tax benefit in 2017. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we have made reasonable estimates of the effects and recorded provisional amounts in our financial statements as of December 31, 2017. As we collect and prepare necessary data, and interpret the Tax Act and any additional guidance issued by the Internal Revenue Service, and other standard-setting bodies, we may make adjustments to the provisional amounts. Those adjustments may materially impact our provision for income taxes and effective tax rate in the period in which adjustments are made. The accounting for the tax effects of the Tax Act will be completed in 2018. A summary of the deferred tax assets and liabilities is included below:
|  | December 31, |
|  | 2017 |  |  | 2016 |
Deferred tax assets (liabilities): |  |  |  |  |  |
Reserves |  | $ | 12 |  |  | $ | 35 |
Property and equipment |  |  | 80 |  |  |  | 171 |
Accrued expenses |  |  | 619 |  |  |  | 1,034 |
Severance |  |  | 56 |  |  |  | 39 |
Non-qualified stock options |  |  | 268 |  |  |  | 420 |
Net foreign carryforwards |  |  | 1,906 |  |  |  | 1,844 |
Net operating loss and credit carryforwards |  |  | 6,801 |  |  |  | 8,054 |
Intangibles |  |  | 605 |  |  |  | 907 |
Total deferred tax assets |  |  | 10,347 |  |  |  | 12,504 |
Valuation allowance |  |  | (10,896 | ) |  |  | (13,114 | )
Net deferred tax liabilities |  | $ | (549 | ) |  | $ | (610 | )
|  | Year ended December 31, |
|  | 2017 |  |  | 2016 |
Tax provision summary |  |  |  |  |  |
State income tax |  | $ | 21 |  |  | $ | 18 |
Deferred tax benefit, release of valuation allowance |  |  | - |  |  |  | (635 | )
Deferred tax benefit - federal |  |  | 2,382 |  |  |  | (1,101 | )
Deferred tax benefit - state |  |  | (149 | ) |  |  | (89 | )
Deferred tax benefit - foreign |  |  | (75 | ) |  |  | (453 | )
Change in valuation allowance |  |  | (2,218 | ) |  |  | 1,895 |
Tax (benefit)/expense |  | $ | (39 | ) |  | $ | (365 | )
A reconciliation of the statutory income tax rate to the effective income tax rates as a percentage of income before income taxes is as follows:
|  | 2017 |  |  | 2016 |
Federal statutory rate |  |  | -34.00 | % |  |  | -34.00 | %
State taxes |  |  | -2.44 | % |  |  | -2.75 | %
Foreign rate differential |  |  | -0.08 | % |  |  | 3.11 | %
Other |  |  | 3.55 | % |  |  | 1.68 | %
Impact of Tax Act |  |  | 3.10 | % |  |  | 0 | %
Changes in valuation allowance |  |  | -37.79 | % |  |  | 36.72 | %
Effective tax rate |  |  | -67.66 | % |  |  | 4.80 | %

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://www.xbrl.org/2003/role/presentationRef -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