Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.6.0.2
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2016
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):
 
 
Year Ended December 31,
 
 
2016
 
2015
Current:
Federal
$
—

 
$
(631
)
 
State
—

 
(62
)
 
 
—

 
(693
)
 
 
 
 
 
Deferred:
Federal
(1,383
)
 
275

 
State
(505
)
 
(185
)
 
Increase in valuation allowance
2,518

 
261

 
 
630

 
351

 
 
$
630


$
(342
)
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):
 
Year Ended December 31,
 
2016
 
2015
 
Percent
 
Amount
 
Percent
 
Amount
Federal income tax benefit at U.S. statutory rate
34.0
 %
 
$
(1,518
)
 
34.0
 %
 
$
(564
)
State taxes, net of federal benefit
7.5
 %
 
(333
)
 
7.8
 %
 
(129
)
Change in valuation allowance
(56.5
)%
 
2,518

 
(15.7
)%
 
261

Permanent differences
(2.1
)%
 
95

 
(7.3
)%
 
121

Credits
2.9
 %
 
(129
)
 
5.5
 %
 
(91
)
Other
0.1
 %
 
(3
)
 
(3.7
)%
 
60

 
(14.1
)%
 
$
630

 
20.6
 %
 
$
(342
)
Schedule of deferred tax assets and liabilities
Our deferred tax assets (liabilities) consisted of the following (in thousands):
 
December 31,
 
2016
 
2015
Deferred tax assets:
 
 
 
Deferred compensation
$
655

 
$
230

Depreciation of fixed assets
42

 
52

Intangible assets and amortization
6,830

 
7,284

Net operating loss carry-forwards
2,861

 
1,384

Accrued expenses
1,077

 
441

Allowance for doubtful accounts
19

 
47

Credits
220

 
91

Common stock warrant liability
263

 
—

Charitable contribution carry-forward
90

 
43

Valuation allowance
(9,753
)
 
(7,236
)
 
2,304

 
2,336

Deferred tax liabilities:
 

 
 

Depreciation of fixed assets
(631
)
 
(772
)
Amortization of indefinite-lived intangibles
(1,907
)
 
(1,276
)
Prepaid expenses
(1,055
)
 
(1,085
)
Effect of state taxes on future federal returns
(585
)
 
(391
)
Other
(33
)
 
(88
)
  
(4,211
)
 
(3,612
)
 
$
(1,907
)

$
(1,276
)