Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income tax expense (benefit) from continuing operations

Income tax expense (benefit) from continuing operations consists of the following for the years ended December 31:

	2014			2013
	(in thousands)
Current:
Federal	$	129		$	95
State		150			113
		279			208
Deferred:
Federal		1,714			1,353
State		385			902
		2,099			2,255
Valuation allowance release		(341	)		(37,527	)
Total income tax expense (benefit)	$	2,037		$	(35,064	)

The reconciliations of the U.S. federal statutory rate to the effective income tax rate

The reconciliations of the U.S. federal statutory rate to the effective income tax rate for the years ended December 31, 2014 and 2013 are as follows:

	2014			2013
Tax provision at U.S. federal statutory rates		34.0	%		34.0	%
State taxes		2.6			3.5
Federal rate adjustment		—			34.6
State rate adjustment		—			0.5
Deferred tax asset adjustments		6.4			5.9
Non-deductible permanent items		0.4			0.6
Stock options		—			0.4
Other		0.3			0.5
Change in valuation allowance		(6.3	)		(1,219.1	)
Effective income tax rate		37.4	%		(1,139.1	%)

Deferred income taxes

Significant components of the Company’s deferred taxes as of December 31, 2014 and 2013 are as follows:

	2014			2013
	(in thousands)
Deferred tax assets:
Allowance for doubtful accounts	$	284		$	149
Accrued liabilities		1,473			832
Net operating loss carry-forwards		34,473			37,426
Fixed assets		83			111
Intangible assets		744			2,006
Share-based compensation expense		1,566			1,143
Other		286			184
Total gross deferred tax assets		38,909			41,851
Valuation allowance		(6,015	)		(6,356	)
		32,894			35,495
Deferred tax liabilities:
Tax deductible goodwill		—			(843	)
Total gross deferred tax liabilities		—			(843	)
Net deferred tax assets	$	32,894		$	34,652

Federal and state net operating loss carry-forwards

The federal NOLs expire through 2031 as follows (in millions):

2021	$15.2
2022	1.7
2023	—
2024	4.1
2025	7.7
2026	25.5
2027	15.5
2028	5.2
2029	7.7
2030	10.6
2031	1.3
	$94.5

The state NOLs expire through 2031 as follows (in millions):

2015	$	6.5
2016		20.6
2017		3.2
2028		2.7
2029		5.8
2030		11.0
2031		1.2
California NOLs		51.0
Other State NOLs		8.4
Total State NOLs	$	59.4

A reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2014		2013
	(in thousands)
Balance at January 1,	$	636	$	636
Additions based on tax positions related to prior years		—		—
Balance at December 31,	$	636	$	636