Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Income (Loss) Before Income Taxes

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



	Years Ended December 31,
	2018			2017			2016
United States	$	(4,673	)	$	(6,502	)	$	(5,306	)
Foreign	9,345			14,020			8,777
	$	4,672		$	7,518		$	3,471

Schedule of Provision for Income Taxes

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



	Years Ended December 31,
	2018			2017			2016
Current:
Federal	$	—		$	—		$	—
State	70			1			—
Foreign	2,920			2,230			2,103
	2,990			2,231			2,103
Deferred:
Federal	(145		)	(155		)	—
State	—			—			—
Foreign	(1,524		)	886			(861		)
	(1,669		)	731			(861		)
Total	$	1,321		$	2,962		$	1,242

Schedule of Significant Differences Between the U.S. Federal Statutory Tax Rate and the Effective Income Tax Expense

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



	Years Ended December 31,
	2018			2017			2016
Statutory federal income tax rate	$	981		$	2,631		$	1,180
State income taxes, net of federal effect	(285		)	(62		)	(173		)
Net operating loss limitation	—			2,975			—
Adjustment to deferred taxes	939			301			(4,103		)
Change in deferred tax asset valuation allowance	(2,867		)	(15,338		)	4,877
Change in tax law	(992		)	13,850			—
Foreign tax rate differential	1,306			(899		)	(1,153		)
Compensation and equity adjustments	1,474			—			113
Acquisition earnout adjustment	(320		)	87			60
Other permanent differences	183			(682		)	—
Withholding taxes	591			342			441
Changes in uncertain tax positions	19			(429		)	—
Return to provision adjustments	257			155			—
Other, net	35			31			—
Total	$	1,321		$	2,962		$	1,242

Schedule of the 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,
	2018		2017
Deferred income tax assets:
Accounts payable and accrued expenses	$	714	$	1,215
Accrued payroll and related expenses	2,315		1,691
Stock-based compensation expense	2,336		3,508
Depreciation of property and equipment	853		1,711
Capitalized software	119		—
Unbilled receivables and refund liabilities	97		1,811
Operating loss carry-forwards of foreign subsidiary	9,484		11,000
Federal operating loss carry-forwards	17,109		17,161
State operating loss carry-forwards	4,537		3,591
Other	1,624		376
Gross deferred tax assets	39,188		42,064
Less valuation allowance	31,597		34,776
Gross deferred tax assets net of valuation allowance	7,591		7,288
Deferred income tax liabilities:
Intangible assets	1,269		1,987
Capitalized software	—		29
Other	3,427		3,734
Gross deferred tax liabilities	4,696		5,750
Net deferred tax assets	$	2,895	$	1,538

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits and Related Accrued Interest

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, 2016	$	535		$	202
Additions based on tax positions related to the current year	—			—
Additions based on tax positions related to the prior years	—			11
Decrease 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
Additions based on tax positions related to the current year	—			—
Additions based on tax positions related to the prior years	116			19
Decreases based on payments made during the year	—			—
Decreases based on tax positions related to the prior years	(420		)	(145		)
Balance at December 31, 2017	$	193		$	28
Additions based on tax positions related to the current year	4			—
Additions based on tax positions related to the prior years	10			6
Decreases based on payments made during the year	—			—
Decreases based on tax positions related to the prior years	—			—
Balance at December 31, 2018	$	207		$	34