XML 36 R23.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Schedule of Income Tax (Benefit) Expense | Deferred tax benefit at December 31, 2016 is related to the release of valuation allowance against substantially all of the Company's federal and state deferred tax assets as the Company concluded such assets were fully realizable. The need for a valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction-by-jurisdiction basis. In making such assessment, significant weight is given to evidence that can be verified objectively. After the consideration of both positive and negative evidence to assess the recoverability of the Company's net deferred tax assets during the 2016 tax year, the Company determined that it was more likely than not the Company would realize the majority of the value of federal and state deferred tax assets given the current certainties regarding the timing of profits and forecasted future profitability. The Company will continue to monitor the likelihood that it will be able to recover the deferred tax assets in the future. The components of income taxes for the periods ended December 31, 2016 and 2015 are as follows:
|  | Years Ended December 31,
|  | 2016 |  | 2015
Current: |  |  |  |
Federal |  | $ | 12,200 |  |  | $ | — |
State |  |  | 37,000 |  |  |  | — |
Total Current |  |  | 49,200 |  |  |  | — |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (8,473,481 | ) |  |  | 31,940 |
State |  |  | (1,291,140 | ) |  |  | — |
Total Deferred |  |  | (9,764,621 | ) |  |  | 31,940 |
Income tax (benefit) expense |  | $ | (9,715,421 | ) |  | $ | 31,940 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the statutory federal income tax rate to the Company's effective tax rate:
|  | Years Ended December 31,
|  | 2016 |  | 2015
Federal tax at statutory rate |  |  | 34.00 | % |  |  | 34.00 | %
State income tax rate |  |  | 5.83 | % |  |  | 5.83 | %
Release of valuation allowance |  |  | 308.63 | % |  |  | (41.56 | %)
Provision for taxes |  |  | 348.46 | % |  |  | (1.73 | %)
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax reflects the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. At December 31, 2016, the Company released valuation allowance against substantially all deferred tax assets. Significant components of net deferred tax assets are as follows:
|  | Years Ended December 31,
Deferred tax assets: |  | 2016 |  | 2015
Net operating loss carryforwards |  | $ | 8,111,000 |  |  | $ | 8,833,000 |
Credits |  |  | 755,000 |  |  |  | 753,000 |
Capitalized research and development costs |  |  | 9,000 |  |  |  | 13,000 |
Other acquired intangibles |  |  | 49,000 |  |  |  | 91,000 |
Accruals not currently deductible |  |  | 1,343,000 |  |  |  | 1,614,000 |
Depreciation |  |  | 29,000 |  |  |  | 5,000 |
Total deferred tax assets |  |  | 10,296,000 |  |  |  | 11,309,000 |
Valuation allowance for deferred tax assets |  |  | (464,000 | ) |  |  | (11,279,000 | )
Net deferred tax assets |  |  | 9,832,000 |  |  |  | 30,000 |
Deferred tax liability: |  |  |  |  |  |  |  |
Acquired intangibles |  |  | (243,000 | ) |  |  | (205,000 | )
Net deferred tax assets (liabilities) |  | $ | 9,589,000 |  |  | $ | (175,000 | )
Schedule of Unrecognized tax benefits ("UTBs") | A reconciliation of the beginning and ending amount of unrecognized tax benefits (“UTBs”), excluding interest and penalties, is as follows:
|  | Amount
Beginning balance at January 1, 2016 |  | $ | 754,000 |
Decreases in UTBs taken in prior years |  |  | (38,000 | )
Decreases in UTBs taken in current years |  |  | 39,000 |
Ending balance at December 31, 2016 |  | $ | 755,000 |

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 Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: 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 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: 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
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=75116239&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration