Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Income Before Provision for Income Taxes

Income before provision for income taxes was as follows:

	Years Ended December 31,
	2018		2017		2016
U.S.	$	11,917	$	9,435	$	3,351
Foreign		2,926		282		1,666
Income before income taxes	$	14,843	$	9,717	$	5,017

Income Tax Provision

The income tax provision for the years ended December 31, 2018, 2017, and 2016 consisted of the following:

	Years Ended December 31,
	2018			2017			2016
Current:
Federal	$	1,540		$	1,543		$	1,627
State		540			419			(569	)
Foreign		(55	)		57			415
Total current		2,025			2,019			1,473
Deferred:
Federal		(65	)		598			1,592
State		(53	)		382			(21	)
Foreign		(19	)		(85	)		(446	)
Total deferred		(137	)		895			1,125
	$	1,888		$	2,914		$	2,598

Difference by Applying the Statutory Federal Income Tax Rate

The income tax provision for the years ended December, 31, 2018, 2017 and 2016 differs from the amounts computed by applying the statutory federal income tax rate to consolidated income before provision for income taxes as follows:

	Years Ended December 31,
	2018			2017			2016
Provision computed at statutory rate	$	3,116		$	3,401		$	1,757
Increase resulting from:
Difference in rates for foreign jurisdictions		93			37			(146	)
Tax exempt interest income		(2	)		(12	)		(21	)
Stock-based compensation		(1,708	)		(304	)		315
Other non-deductible expenses		252			(101	)		67
Non-deductible officers compensation		198			447			738
State income tax provision		396			653			(380	)
Losses not benefitted		23			4			1
Subsidiary earnings taxed in the US		(104	)		127			253
True-up of prior year returns		(20	)		(161	)		11
Research and development credit		(279	)		(801	)		—
Tax Cuts and Jobs Act of 2017		(11	)		(376	)		—
Cancellation of Foreign Subsidiary Debt		(127	)		—			—
Other		61			—			3
Provision for income taxes	$	1,888		$	2,914		$	2,598

Significant Components of the Company's Net Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities are as follows:

	As of December 31,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	33		$	166
Contract liabilities		—			187
Accruals and allowances		1,253			972
Stock-based compensation		1,286			815
Deferred rent expense		1,267			1,327
Other		4			4
Gross deferred tax assets		3,843			3,471
Less valuation allowance		(33	)		(352	)
Total deferred tax assets		3,810			3,119
Deferred tax liabilities:
Intangible asset amortization		(2,603	)		(2,036	)
Depreciation		(1,814	)		(1,823	)
Total deferred tax liabilities		(4,417	)		(3,859	)
Net deferred tax liabilities	$	(607	)	$	(740	)
As reported:
Non-current deferred tax assets	$	55		$	98
Non-current deferred tax liabilities	$	(662	)	$	(838	)

Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2018, 2017, and 2016 is as follows:

	2018		2017		2016
Balance at beginning of year	$	—	$	—	$	184
Reductions due to amnesty and settlement		—		—		(188	)
Payments		—		—		—
Gross increases related to positions taken in prior periods		—		—		4
Balance at end of year	$	—	$	—	$	—