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]  
Summary of (Loss) Income Before Income Taxes

The following table summarizes (loss) income before income taxes for the years ended December 31 (in thousands):

 

     2016      2015  

U.S (loss) income

   $ (600    $ 3,752  

Non-U.S. income

     236        237  
  

 

 

    

 

 

 

(Loss) income before income taxes

   $ (364    $ 3,989  
  

 

 

    

 

 

 
Summary of Components of Consolidated Provision for Income Taxes

The following table summarizes the components of the consolidated provision for income taxes for the years ended December 31 (in thousands):

 

     2016     2015  

U.S Federal income tax benefit (expense)

    

Current

   $ —       $ —    

Deferred

     157       (970
  

 

 

   

 

 

 

Total U.S. Federal income tax benefit (expense)

     157       (970

State and local income tax (expense) benefit

    

Current

     (58     (101

Deferred

     83       (168
  

 

 

   

 

 

 

Total state and local income tax benefit (expense)

     25       (269
  

 

 

   

 

 

 

Foreign income tax (expense) benefit

    

Current

     (40     35  
  

 

 

   

 

 

 

Total income tax benefit (expense)

   $ 142     $ (1,204
  

 

 

   

 

 

 
Reconciliations of Effective Income Tax Rate to Federal Statutory Rate

The following table summarizes a reconciliation of the effective income tax rate to the U.S. federal statutory rate for the years ended December 31:

 

     2016     2015  

Income tax expense at the statutory rate

     34.00     34.00

State and local income tax expense

     9.16     5.81

Foreign income tax

     (3.79 %)      (0.33 %) 

Permanent differences

     (38.40 %)      1.05

Research & Development Credits

     37.81     (10.47 %) 

Other adjustments

     0.31     0.14
  

 

 

   

 

 

 

Effective income tax rate

     39.09     30.20
  

 

 

   

 

 

 
Summary of Temporary Differences and Carryforwards that Gives Rise to Deferred Tax Assets and Liabilities

The following table summarizes the temporary differences and carryforwards that give rise to deferred tax assets and liabilities as of December 31 (in thousands):

 

     2016     2015  

Deferred Federal tax assets —

    

Bad debt reserves

   $ 1,710     $ 1,612  

Stock based compensation

     668       636  

Net operating loss

     8,184       5,649  

Accrued compensation

     280       624  

Alternative minimum tax credit

     73       73  

Inventories

     69       52  

Accrued rent

     46       51  

Goodwill and intangible assets

     6,675       7,919  

Research & Development Credits

     534       418  

Other Credits

     5       3  

Other

     189       79  
  

 

 

   

 

 

 

Total deferred Federal tax assets

     18,433       17,116  
  

 

 

   

 

 

 

Deferred Federal tax liabilities —

    

Depreciation and asset basis differences

     (4,725     (3,358

Other

     (157     (364
  

 

 

   

 

 

 

Total deferred Federal tax liabilities

     (4,882     (3,722
  

 

 

   

 

 

 

Net deferred Federal tax assets

     13,551       13,394  

Net deferred state and local tax assets

     1,560       1,477  
  

 

 

   

 

 

 

Net deferred tax assets

   $ 15,111     $ 14,871  
  

 

 

   

 

 

 
Classification of Net Deferred Income Taxes

The classification of net deferred income taxes as of December 31, 2016 is summarized (in thousands):

 

     Current      Long-term     Total  

Deferred tax assets

   $ 2,675      $ 19,067     $ 21,742  

Deferred tax liabilities

     —          (6,631     (6,631
  

 

 

    

 

 

   

 

 

 

Net deferred tax assets

   $ 2,675      $ 12,436     $ 15,111  
  

 

 

    

 

 

   

 

 

 

 

The classification of net deferred tax assets as of December 31, 2015 is summarized (in thousands):

 

     Current      Long-term     Total  

Deferred tax assets

   $ 2,743      $ 17,278     $ 20,021  

Deferred tax liabilities

     —          (5,150     (5,150
  

 

 

    

 

 

   

 

 

 

Net deferred income taxes

   $ 2,743      $ 12,128     $ 14,871