Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income (Loss) before Income Taxes, Related to Jurisdictions

Income (loss) before income taxes from continuing operations relate to the following jurisdictions (in thousands):



	Years Ended December 31,
	2015			2014			2013
United States	$	(244	)	$	(3,369	)	$	(3,217	)
Foreign	2,152			3,911			8,026
	$	1,908		$	542		$	4,809

Provision for Income Taxes

The provision for income taxes for continuing operations consists of the following (in thousands):



	Years Ended December 31,
	2015			2014			2013
Current:
Federal	$	—		$	—		$	—
State	(13		)	(11		)	(452		)
Foreign	1,494			1,686			3,230
	1,481			1,675			2,778
Deferred:
Federal	—			—			—
State	—			—			—
Foreign	(1,112		)	1,566			(23		)
	(1,112		)	1,566			(23		)
Total	$	369		$	3,241		$	2,755

Significant Differences Between the U.S. Federal Statutory Tax Rate and Company's Effective Income Tax Expense for Earnings

The significant differences between the U.S. federal statutory tax rate of 34% and the Company’s effective income tax expense for earnings (in thousands) are as follows:



	Years Ended December 31,
	2015			2014			2013
Statutory federal income tax rate	$	649		$	184		$	1,635
State income taxes, net of federal effect	(240		)	(189		)	(657		)
Deferred tax true-up	8,078			—			—
Change in deferred tax asset valuation allowance	(6,729		)	2,094			(904		)
Foreign taxes in excess of U.S. statutory rate	(223		)	714			1,784
Compensation deduction limitation	(1,201		)	381			820
Other, net	35			57			77
Total	$	369		$	3,241		$	2,755

Tax Effects of Temporary Differences and Carry-Forwards that Give Rise to Deferred Tax Assets and Liabilities

The tax effects of temporary differences and carry-forwards that give rise to deferred tax assets and liabilities consist of the following (in thousands):



	Years Ended December 31,
	2015		2014
Deferred income tax assets:
Accounts payable and accrued expenses	$	954	$	1,712
Accrued payroll and related expenses	1,713		2,530
Stock-based compensation expense	2,668		10,226
Depreciation of property and equipment	3,061		5,480
Capitalized software	94		—
Non-compete agreements	—		1
Unbilled receivables and refund liabilities	2,029		904
Operating loss carry-forwards of foreign subsidiary	3,275		1,920
Federal operating loss carry-forwards	31,884		30,669
State operating loss carry-forwards	4,038		2,671
Other	883		1,930
Gross deferred tax assets	50,599		58,043
Less valuation allowance	45,565		52,002
Gross deferred tax assets net of valuation allowance	5,034		6,041
Deferred income tax liabilities:
Intangible assets	2,775		3,049
Capitalized software	—		1,834
Other	898		1,117
Gross deferred tax liabilities	3,673		6,000
Net deferred tax assets	$	1,361	$	41

Schedule of Unrecognized Tax Benefits

A reconciliation of our beginning and ending amount of unrecognized tax benefits and related accrued interest thereon is as follows:



	Unrecognized Tax Benefits			Accrued Interest and Penalties
Balance at January 1, 2013	$	2,197		$	1,460
Additions based on tax positions related to the current year	—			—
Additions based on tax positions related to the prior years	—			119
Decrease based on payments made during the year	(932		)	(385		)
Decreases based on tax positions related to the prior years	$	(541	)	$	(934	)
Balance at December 31, 2013	$	724		$	260
Additions based on tax positions related to the current year	—			—
Additions based on tax positions related to the prior years	—			33
Decreases based on payments made during the year	—			—
Decreases based on tax positions related to the prior years	(47		)	(73		)
Balance at December 31, 2014	$	677		$	220
Additions based on tax positions related to the current year	—			—
Additions based on tax positions related to the prior years	—			24
Decreases based on payments made during the year	—			—
Decreases based on tax positions related to the prior years	(142		)	(42		)
Balance at December 31, 2015	$	535		$	202