Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Domestic and Foreign Components of Income Before Provision for Income Taxes

The domestic and foreign components of (loss) before provision for income taxes consist of the following (amounts in thousands):



	Year Ended December 31,
	2018			2017			2016
United States	$	(38,078	)	$	(25,585	)	$	(40,774	)
Israel	3,163			3,458			15,622
United Kingdom	3,690			2,087			2,345
Netherlands	3,235			1,568			3,104
Australia	686			(1,979		)	(2,774		)
Germany	2,900			2,424			2,085
Other ⁽¹⁾	230			337			453
	$	(24,174	)	$	(17,690	)	$	(19,939	)
⁽¹⁾ Includes Japan, Italy, Singapore, Canada, and France

Schedule of Provision For Income Taxes

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



	Year Ended December 31,
	2018			2017			2016
Current income taxes:
U.S. Federal	$	(1,932	)	$	—		$	1,829
State and local	67			47			27
Foreign	3,032			2,852			2,226
Total current income taxes	1,167			2,899			4,082

Deferred income taxes:
U.S. Federal	(295		)	(1,289		)	841
State and local	(28		)	(1,144		)	99
Foreign	14			35			912
Total deferred income taxes	(309		)	(2,398		)	1,852
Total provision for income taxes	$	858		$	501		$	5,934

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

The difference between the total income taxes computed at the federal statutory rate and the provision for income taxes consists of the following:



	Year Ended December 31,
	2018		2017		2016
Federal statutory rate	21.00	%	34.00	%	34.00	%
State taxes, net of federal benefit	3.30	%	4.09	%	3.24	%
Non-deductible expenses – ISO	4.73	%	(0.78	)%	(1.85	)%
Global intangible low tax income inclusion	(7.99	)%	—	%	—	%
Non-deductible expenses – Other	(2.58	)%	(1.19	)%	(0.88	)%
Foreign tax rate differential	(1.34	)%	(1.97	)%	0.89	%
Change in valuation allowance	(28.91	)%	26.12	%	(53.55	)%
Stock based compensation	6.10	%	—	%	—	%
Return to provision true-up adjustment	—	%	—	%	(9.22	)%
Effect of new tax legislation	—	%	(56.84	)%	—	%
Other	2.09	%	(6.26	)%	(2.42	)%
Total provision for income taxes	(3.60	)%	(2.83	)%	(29.79	)%

Schedule of Federal Deferred Tax Assets and Deferred Tax Liabilities

The effects of temporary differences and federal NOL carryforwards that give rise to significant portions of federal deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented below (amounts in thousands):



	Year Ended December 31,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	18,083		$	8,093
Accounts payable and accrued expenses	4,024			4,429
Non-cash compensation	9,597			9,510
Intangibles amortization	5,691			5,513
Allowance for doubtful accounts	315			232
Total deferred tax assets	37,710			27,777
Less valuation allowance	(30,185		)	(23,260		)
Deferred tax assets, net of valuation allowance	7,525			4,517
Deferred tax liabilities:
Property and equipment	(3,736		)	(2,010		)
Goodwill amortization and contingent earn-out adjustments	(4,172		)	(2,669		)
Total deferred tax liabilities	(7,908		)	(4,679		)
Net deferred tax liabilities	$	(383	)	$	(162	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	Year Ended December 31,
	2018			2017
Unrecognized tax benefits balance at January 1	$	4,924		$	4,240
Gross increase for tax positions of prior years	—			—
Gross increase for tax positions of current years	405			684
Decrease due to expiration of statue	(445		)	—
Decrease due to settlement	(2,963		)	—
Gross unrecognized tax benefits at December 31	$	1,921		$	4,924