XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.20.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Note 4: Income Taxes The income tax provision (benefit) consisted of the following (in thousands):
|  | Year Ended |
|  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Current portion: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (182 | ) |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | 2 |  |  |  | 3 |
Foreign |  |  | — |  |  |  | 11 |  |  |  | 7 |
|  |  | (182 | ) |  |  | 13 |  |  |  | 10 |
Deferred portion: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 182 |  |  |  | — |  |  |  | (243 | )
|  | $ | — |  |  | $ | 13 |  |  | $ | (233 | )
In December 2017, the Tax Cuts and Jobs Act (“the Act”) was signed into law making significant changes to the Internal Revenue Code of 1986, as amended (the “IRC”). Changes included, but are not limited to, reducing the U.S. federal corporate tax rate from 35.0% to 21.0% as of January 1, 2018 and repealing the alternative minimum tax (“AMT”) for tax years beginning in 2018. Income tax effects resulting from changes in tax laws are accounted for by the Company in accordance with the authoritative guidance, which requires that these tax effects be recognized in the period in which the law is enacted and the effects are recorded as a component of provision for income taxes from continuing operations. Under the Act, $0.2 million in federal AMT tax paid by the Company for 2011 is now refundable through 2022 subject to limitations by year, and was recorded as a deferred tax asset in 2017. As of December 31, 2019, $0.1 million of the federal AMT credit was refunded. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were (in thousands):
|  | Year Ended |
|  | December 31, |
|  | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
Federal and state loss carryforwards |  | $ | 1,697 |  |  | $ | 681 |
Reserves, accruals and other |  |  | 156 |  |  |  | 230 |
Depreciation and amortization |  |  | 1,629 |  |  |  | 1,901 |
Deferred stock-based compensation |  |  | 2,613 |  |  |  | 2,571 |
Research and development credit carryforwards |  |  | 6,707 |  |  |  | 6,537 |
Foreign tax and other credits |  |  | 61 |  |  |  | 242 |
Total deferred tax assets |  |  | 12,863 |  |  |  | 12,162 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Acquired intangible assets and other |  |  | — |  |  |  | — |
Less: Valuation allowance |  |  | (12,802 | ) |  |  | (11,920 | )
Net deferred tax assets |  | $ | 61 |  |  | $ | 242 |
The $0.9 million increase in the valuation allowance during 2019 was primarily the result of an increase to the net operating loss carryforwards for the current year. The valuation allowance decreased by $56.9 million during the year ended December 31, 2018. Utilization of the Company’s net operating losses (“NOLs”) and tax credit carryforwards is subject to a substantial annual limitation due to the ownership change limitations provided by the IRC and similar state provisions. Section 382 of the IRC (“Section 382”) imposes limitations on a corporation’s ability to utilize its NOL and tax credit carryforwards, if it experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership percentage of certain stockholders in the stock of the corporation by more than 50% over a three-year period. In the event of an ownership change, utilization of the NOLs would be subject to an annual limitation under Section 382 determined by multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term tax-exempt rate. While a formal study has not been performed, the Company believes that a Section 382 ownership change occurred as a result of the financing effected in October 2018 (see Note 6). The Company believes this Section 382 limitation will result in approximately 97% of the federal and state NOLs expiring before they can be utilized, and approximately 96% of the federal tax credit carryforwards expiring before they can be utilized. As of December 31, 2019, the Company had NOLs of approximately $200.2 million for federal income tax purposes and approximately $122.9 million for state income tax purposes. Only approximately $6.3 million of the federal NOLs and $5.4 million of the state NOLs are expected to be available before expiration due to the Section 382 limitation. These NOLs are available to reduce future taxable income and will expire at various times from 2025 through 2039, except federal NOLs from 2018 and 2019 which will never expire. The Company also had federal research and development tax credit carryforwards of approximately $8.9 million, which will begin expiring in 2020, and California research and development credits of approximately $8.3 million, which do not have an expiration date. A reconciliation of income taxes provided at the federal statutory rate (21% for 2019 and 2018, 35% for 2017) to the actual income tax provision is as follows (in thousands):
|  | Year Ended |
|  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Income tax benefit computed at U.S. statutory rate |  | $ | (542 | ) |  | $ | (2,393 | ) |  | $ | (3,815 | )
State income tax (net of federal benefit) |  |  | — |  |  |  | 2 |  |  |  | 3 |
Foreign income tax at rate different from U.S. statutory rate |  |  | — |  |  |  | 12 |  |  |  | 3 |
Research and development credits |  |  | (170 | ) |  |  | (194 | ) |  |  | (480 | )
Stock-based compensation |  |  | — |  |  |  | — |  |  |  | (40 | )
Amortization of intangible assets |  |  | (60 | ) |  |  | (60 | ) |  |  | (100 | )
Goodwill impairment |  |  | 17 |  |  |  | 1,482 |  |  |  | — |
Federal tax rate reduction |  |  | — |  |  |  | — |  |  |  | (26,617 | )
Valuation allowance changes affecting tax provision |  |  | 752 |  |  |  | 1,158 |  |  |  | 30,811 |
Other |  |  | 3 |  |  |  | 6 |  |  |  | 2 |
Income tax provision (benefit) |  | $ | — |  |  | $ | 13 |  |  | $ | (233 | )
The domestic and foreign components of loss before income tax provision were (in thousands):
|  | Year Ended |
|  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
U.S. |  | $ | (2,580 | ) |  | $ | (11,353 | ) |  | $ | (11,063 | )
Non-U.S. |  |  | - |  |  |  | (43 | ) |  |  | 162 |
|  | $ | (2,580 | ) |  | $ | (11,396 | ) |  | $ | (10,901 | )

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