Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

		December 31,
		2018			2017
Deferred Tax Assets:
	Accrued expenses	$	3,572		$	2,404
	Deferred revenue	13,719			16,311
	Sales return and allowances	2,296			2,157
	Accrued settlement costs	2,689			—
	Research and development and other tax credits	2,326			1,216
	Net operating loss	3,118			1,025
	Share-based compensation	3,425			4,895
	Other	971			342
Deferred Tax Liabilities:
	Prepaid expenses	(1,823		)	(344		)
	Property and equipment	(2,519		)	(1,555		)
	Intangible assets	(443		)	(356		)
Net Deferred Tax Assets		27,331			26,095
	Less: Valuation allowance	(27,331		)	(554		)
Net Deferred Tax Assets after Valuation Allowance		$	—		$	25,541

Reconciliation of the Federal statutory income tax

The reconciliation of the federal statutory income tax rate of 35% (21% for the tax year ended December 31, 2018) to the effective rate is as follows:

	December 31,
	2018		2017		2016
					(Restated)
Federal statutory rate	21.00	%	35.00	%	35.00	%
State taxes, net of federal benefit	3.52	%	0.40	%	116.85	%
Nondeductible compensation	(15.33	)%	0.66	%	1.45	%
Meals and entertainment	(24.16	)%	1.93	%	126.74	%
Keyman life insurance	(0.15	)%	0.02	%	1.52	%
Transaction costs	—	%	—	%	21.88	%
Inventory contribution deduction	0.48	%	(0.06	)%	(4.30	)%
Domestic production activities deduction	—	%	(1.54	)%	(150.74	)%
Fair value adjustment	—	%	(2.76	)%	(105.83	)%
Share-based compensation	10.82	%	(9.90	)%	179.74	%
Tax credits	19.75	%	(3.37	)%	(254.62	)%
Uncertain tax position	(2.35	)%	0.46	%	30.47	%
Write-off of net operating losses	(11.81	)%	—	%	37.11	%
Payable true-up	(2.69	)%	0.65	%	(2.38	)%
Sale of Stability	—	%	(8.86	)%	—	%
Fixed asset true-up	5.33	%	—	%	—	%
Federal provision to return	1.58	%	0.13	%	—	%
Impact of federal rate change	—	%	26.79	%	—	%
Other	(0.25	)%	(0.03	)%	(6.91	)%
Valuation allowance	(788.33	)%	(83.08	)%	2.48	%
	(782.59	)%	(43.56	)%	28.46	%

Schedule of current and deferred income tax expense (benefit)

Current and deferred income tax expense (benefit) is as follows (in thousands):

	December 31,
	2018		2017			2016
Current:						(Restated)
Federal	$	614	$	5,868		$	4,338
State	427		1,163			1,195
Total current	1,041		7,031			5,533
Deferred:
Federal	19,452		(19,441		)	(4,980		)
State	6,089		(7,229		)	(398		)
Total deferred	25,541		(26,670		)	(5,378		)
Total expense (benefit)	$	26,582	$	(19,639	)	$	155

Reconciliation of unrecognized tax benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands) included in other liabilities in the consolidated balance sheets:

	2018		2017		2016
Unrecognized tax benefits - January 1	$	847	$	336	$	170
Gross increases - tax positions in current period	91		130		166
Gross increases - tax positions in prior period	—		381		—
Unrecognized tax benefits - December 31	$	938	$	847	$	336