Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2016			2015			2014
United States	$	(5,306	)	$	(244	)	$	(3,369	)
Foreign	8,777			2,152			3,911
	$	3,471		$	1,908		$	542

Provision for Income Taxes

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



	Years Ended December 31,
	2016			2015			2014
Current:
Federal	$	—		$	—		$	—
State	—			(13		)	(11		)
Foreign	2,103			1,494			1,686
	2,103			1,481			1,675
Deferred:
Federal	—			—			—
State	—			—			—
Foreign	(861		)	(1,112		)	1,566
	(861		)	(1,112		)	1,566
Total	$	1,242		$	369		$	3,241

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,
	2016			2015			2014
Statutory federal income tax rate	$	1,180		$	649		$	184
State income taxes, net of federal effect	(173		)	(240		)	(189		)
Deferred tax true-up	(4,103		)	8,078			—
Change in deferred tax asset valuation allowance	4,877			(6,729		)	2,094
Foreign taxes in excess of U.S. statutory rate	(712		)	(223		)	714
Compensation deduction limitation	113			(1,201		)	381
Other, net	60			35			57
Total	$	1,242		$	369		$	3,241

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,
	2016		2015
Deferred income tax assets:
Accounts payable and accrued expenses	$	737	$	954
Accrued payroll and related expenses	3,062		1,713
Stock-based compensation expense	3,531		2,668
Depreciation of property and equipment	2,579		3,061
Capitalized software	—		94
Non-compete agreements	—		—
Unbilled receivables and refund liabilities	2,216		2,029
Operating loss carry-forwards of foreign subsidiary	10,907		3,275
Federal operating loss carry-forwards	33,087		31,884
State operating loss carry-forwards	3,919		4,038
Other	1,181		883
Gross deferred tax assets	61,219		50,599
Less valuation allowance	50,114		45,565
Gross deferred tax assets net of valuation allowance	11,105		5,034
Deferred income tax liabilities:
Intangible assets	2,299		2,775
Capitalized software	1,928		—
Other	4,609		898
Gross deferred tax liabilities	8,836		3,673
Net deferred tax assets	$	2,269	$	1,361

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, 2014	$	724		$	260
Additions based on tax positions related to the current year	—			—
Additions based on tax positions related to the prior years	—			33
Decrease 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
Additions based on tax positions related to the current year	—			—
Additions based on tax positions related to the prior years	—			11
Decreases based on payments made during the year	—			—
Decreases based on tax positions related to the prior years	(38		)	(59		)
Balance at December 31, 2016	$	497		$	154