Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provisions

The income tax provisions for the years ended December 31 are as follows (in thousands):

 

 

2019

 

 

2018

 

 

2017

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

145

 

 

$

67

 

 

$

21

 

State and local

 

 

3

 

 

 

6

 

 

 

3

 

Total current provision

 

 

148

 

 

 

73

 

 

 

24

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

10

 

 

 

23

 

 

 

1

 

State and local

 

 

5

 

 

 

5

 

 

 

1

 

Total deferred provision

 

 

15

 

 

 

28

 

 

 

2

 

Total tax provision

 

$

163

 

 

$

101

 

 

$

26

 

Schedule of Reconciliation of Income Tax Provision to Statutory Federal Income Tax Rate

Reconciliations of the total income tax provision tax rate to the statutory federal income tax rate of 21%, 21%, and 34% for the years ended December 31, 2019, 2018, and 2017, respectively, are as follows (in thousands):

 

 

2019

 

 

2018

 

 

2017

 

Income taxes at statutory rates

 

$

229

 

 

$

(521

)

 

$

397

 

State income tax, net of federal benefit

 

 

8

 

 

 

10

 

 

 

4

 

Permanent items

 

 

(11

)

 

 

18

 

 

 

(5

)

Meals and entertainment

 

 

50

 

 

 

47

 

 

 

75

 

Equity based compensation

 

 

(8

)

 

 

(99

)

 

 

(646

)

Corporate tax rate change - impact on deferred

   income taxes

 

 

 

 

 

 

 

 

2,768

 

Research and development credit

 

 

(94

)

 

 

(195

)

 

 

207

 

Federal NOL adjustment

 

 

 

 

 

 

 

 

(386

)

Federal return to provision

 

 

101

 

 

 

(168

)

 

 

53

 

Other federal credits

 

 

-

 

 

 

 

 

 

112

 

Other

 

 

145

 

 

 

64

 

 

 

16

 

Change in federal valuation allowance

 

 

(257

)

 

 

945

 

 

 

(2,569

)

 

 

$

163

 

 

$

101

 

 

$

26

 

Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, are as follows (in thousands):

 

 

2019

 

 

2018

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Net operating loss carryforwards

 

$

4,564

 

 

$

4,924

 

Research and AMT credits

 

 

2,208

 

 

 

2,074

 

Stock based compensation

 

 

387

 

 

 

327

 

Accrued and other

 

 

748

 

 

 

651

 

 

 

 

7,907

 

 

 

7,976

 

Less valuation allowance

 

 

(7,455

)

 

 

(7,659

)

Deferred tax assets, net of allowance

 

 

452

 

 

 

317

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Fixed assets

 

 

(288

)

 

 

(192

)

Goodwill

 

 

(216

)

 

 

(163

)

Deferred tax liabilities

 

 

(504

)

 

 

(355

)

Total deferred tax liabilities

 

$

(52

)

 

$

(38

)

Summary of Reconciliation of Unrecognized Tax Benefit Activity

The following table summarizes the reconciliation of the unrecognized tax benefits activity during the years ended December 31(in thousands):

 

 

2019

 

 

2018

 

Beginning unrecognized tax benefits

 

$

732

 

 

$

710

 

Decreases related to prior year tax positions

 

 

(7

)

 

 

(65

)

Increases related to current year tax positions

 

 

40

 

 

 

87

 

Ending unrecognized tax benefits

 

$

765

 

 

$

732