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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the Company’s U.S. and foreign components of consolidated income before income taxes and the provision for (benefit from) income taxes.



	Years Ended December 31,
	2019			2018			2017⁽¹⁾
	(In thousands)
Income before income taxes:
U.S.	$	12,180		$	12,139		$	11,549
Foreign	76			(699		)	(1,620		)
Total income before income taxes	$	12,256		$	11,440		$	9,929

Current tax provision (benefit):
Federal	$	(120	)	$	(297	)	$	441
State	3			(2		)	12
Foreign	66			25			18
Current tax provision (benefit)	(51		)	(274		)	471

Deferred tax provision (benefit):
Federal	949			(9,773		)	(9,025		)
State	445			(606		)	(1,141		)
Foreign	—			—			1,270
Total deferred tax provision (benefit)	1,394			(10,379		)	(8,896		)
Total provision for (benefit from) income taxes	$	1,343		$	(10,653	)	$	(8,425	)


⁽¹⁾	Due to the full retrospective adoption of ASC 606, the balance for the year ended December 31, 2017 has been recast.

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of income taxes computed at the statutory federal income tax rate to the effective tax rate implied by the accompanying Statements of Operations.



	Years Ended December 31,
	2019		2018		2017⁽¹⁾
U.S. federal taxes at statutory rate	21	%	21	%	34	%
State income tax, net of federal benefit	4		(6	)	1
Deemed repatriation transition tax	—		—		71
Deferred tax re-measurement - Change in tax rates	—		1		24
Foreign rate differential	—		(1	)	(10	)
Change in tax status of foreign operations	—		(102	)	—
Stock-based compensation	(1	)	(3	)	(6	)
Non-deductible expenses	2		1		1
Federal research credits	(16	)	(6	)	(4	)
Valuation allowance	—		3		(197	)
Other	1		(1	)	1
Effective tax rate	11	%	(93	%)	(85	%)

⁽¹⁾

Due to the full retrospective adoption of ASC 606, the tax rate for the year ended December 31, 2017 has been recast.

Schedule of Deferred Tax Assets and Liabilities

The following table presents the Company’s total deferred tax assets and liabilities.



	December 31, 2019			December 31, 2018
	(In thousands)
Deferred tax assets:
Net operating loss carry forwards	$	6,488		$	5,636
Accruals and reserves	8,922			12,157
Operating lease liabilities	2,750			—
Research and development credit carry forwards	7,533			4,609
Acquired intangibles	804			859
Charitable contributions	26			24
Total deferred tax assets	26,523			23,285
Valuation allowance	(3,933		)	(2,850		)
Net deferred tax assets	22,590			20,435

Deferred tax liabilities:
Depreciation on property and equipment	(1,854		)	(937		)
Right of use asset	(2,443		)	—
Unrecognized gain on translation of foreign currency	(33		)	(9		)
Goodwill	(1,363		)	(1,171		)
Total deferred tax liabilities	(5,693		)	(2,117		)
Net deferred tax asset	$	16,897		$	18,318

As reported on the balance sheet:
Other assets, non-current	$	16,897		$	18,318
Net deferred tax asset	$	16,897		$	18,318

Summary of Operating Loss Carryforwards

The following table presents the Company’s net operating loss carryforwards by taxing authority.



	December 31, 2019		December 31, 2018
	(In thousands)
Federal	$	21,153	$	16,838
California	11,840		12,681
Ireland	9,363		9,363
Total net operating loss carryforwards	$	42,356	$	38,882

Summary of Tax Credit Carryforwards

The following table presents the Company’s R&D credit by taxing authority, minimum tax credit and foreign tax credit carryforwards.



	December 31, 2019		December 31, 2018
	(In thousands)
Federal	$	4,761	$	2,925
California	3,509		2,132
Total credit carryforwards	$	8,270	$	5,057

Schedule of Unrecognized Tax Benefits Roll Forward

The following table presents the aggregate changes in the balance of the gross unrecognized tax benefits.



	December 31, 2019			December 31, 2018		December 31, 2017
	(In thousands)
Gross unrecognized tax benefits, beginning of year	$	1,162		$	911	$	603
Additions:
Prior year tax position	27			—		117
Current year tax position	163			251		191
Reductions:
Prior year tax position	(389		)	—		—
Gross unrecognized tax benefits, end of year	$	963		$	1,162	$	911