Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.19.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of components of income tax provision
The income tax expense (benefit) attributable to our loss before income taxes consisted of the following:

(In Thousands)
Years Ended December 31,
 
2018
 
2017
Current Taxes
 
 
 
Federal
$
—

 
$
—

State
—

 
—

 
—

 
—

Deferred Taxes
 
 
 
Federal
(587
)
 
1,278

State
(651
)
 
(686
)
Increase (decrease) in valuation allowance
1,714

 
(742
)
 
476

 
(150
)
 
$
476


$
(150
)
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,
 
2018
 
2017
Tax Rate Reconciliation
Percent
 
Amount
 
Percent
 
Amount
Federal income tax benefit at U.S. statutory rate
21.0
 %
 
$
(817
)
 
34.0
 %
 
$
(1,760
)
State taxes, net of federal benefit
13.2
 %
 
(515
)
 
8.7
 %
 
(452
)
Change in valuation allowance, exclusive of Tax Reform impact
(44.0
)%
 
1,714

 
(57.5
)%
 
2,979

Effect of Tax Reform on net deferred taxes
—
 %
 
—

 
17.2
 %
 
(890
)
Permanent differences
(6.3
)%
 
247

 
(1.7
)%
 
91

Credits
3.7
 %
 
(146
)
 
2.2
 %
 
(116
)
Other
0.2
 %
 
(7
)
 
—
 %
 
(2
)
 
(12.2
)%
 
$
476

 
2.9
 %
 
$
(150
)
Schedule of deferred tax assets and liabilities
Our deferred tax assets (liabilities) consisted of the following:
(In Thousands)
December 31,
 
2018
 
2017
Deferred Tax Assets
 
 
 
Deferred compensation
$
744

 
$
438

Intangible assets and amortization
4,023

 
4,415

Net operating loss carry-forwards
6,210

 
4,505

Accrued expenses
975

 
772

Allowance for doubtful accounts
22

 
24

Credits
481

 
336

Common stock warrant liability
69

 
541

Interest valuation
40

 
—

Interest limitation
1,362

 
—

Charitable contribution carry-forward
97

 
72

Valuation allowance
(10,725
)
 
(9,011
)
 
3,298

 
2,092

Deferred tax liabilities:
 
 
 

Depreciation of fixed assets
(1,939
)
 
(910
)
Amortization of indefinite-lived intangibles
(2,232
)
 
(1,757
)
Prepaid expenses
(710
)
 
(651
)
Effect of state taxes on future federal returns
(629
)
 
(505
)
Other
(20
)
 
(26
)
  
(5,530
)
 
(3,849
)
 
$
(2,232
)
 
$
(1,757
)