Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.8.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of components of income tax provision
The income tax provision (benefit) attributable to our loss before income taxes consisted of the following (in thousands):
 
 
Years Ended December 31,
 
 
2017
 
2016
Current:
Federal
$
—

 
$
—

 
State
—

 
—

 
 
—

 
—

 
 
 
 
 
Deferred:
Federal
1,278

 
(1,383
)
 
State
(686
)
 
(505
)
 
(Decrease) increase in valuation allowance
(742
)
 
2,518

 
 
(150
)
 
630

 
 
$
(150
)

$
630

Schedule of effective income tax rate reconciliation
A reconciliation of the federal income tax statutory rate and the Company’s effective tax rate is as follows (in thousands):
 
Years Ended December 31,
 
2017
 
2016
 
Percent
 
Amount
 
Percent
 
Amount
Federal income tax benefit at U.S. statutory rate
34.0
 %
 
$
(1,760
)
 
34.0
 %
 
$
(1,518
)
State taxes, net of federal benefit
8.7
 %
 
(452
)
 
7.5
 %
 
(333
)
Change in valuation allowance, exclusive of Tax Reform impact
(57.5
)%
 
2,979

 
(56.5
)%
 
2,518

Effect of Tax Reform on net deferred taxes
17.2
 %
 
(890
)
 
—
 %
 
—

Permanent differences
(1.7
)%
 
91

 
(2.1
)%
 
95

Credits
2.2
 %
 
(116
)
 
2.9
 %
 
(129
)
Other
—
 %
 
(2
)
 
0.1
 %
 
(3
)
 
2.9
 %
 
$
(150
)
 
(14.1
)%
 
$
630

Schedule of deferred tax assets and liabilities
Our deferred tax assets (liabilities) consisted of the following (in thousands):
 
December 31,
 
2017
 
2016
Deferred tax assets:
 
 
 
Deferred compensation
$
438

 
$
655

Depreciation of fixed assets
—

 
42

Intangible assets and amortization
4,415

 
6,830

Net operating loss carry-forwards
4,505

 
2,861

Accrued expenses
772

 
1,077

Allowance for doubtful accounts
24

 
19

Credits
336

 
220

Common stock warrant liability
541

 
263

Charitable contribution carry-forward
72

 
90

Valuation allowance
(9,011
)
 
(9,753
)
 
2,092

 
2,304

Deferred tax liabilities:
 

 
 

Depreciation of fixed assets
(910
)
 
(631
)
Amortization of indefinite-lived intangibles
(1,757
)
 
(1,907
)
Prepaid expenses
(651
)
 
(1,055
)
Effect of state taxes on future federal returns
(505
)
 
(585
)
Other
(26
)
 
(33
)
  
(3,849
)
 
(4,211
)
 
$
(1,757
)

$
(1,907
)