Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income tax benefit for the years ended December 31, 2019 and 2018 is comprised of the following:


	2019			2018
Current:
Federal	$	4		$	7
State		289			245
Foreign		41

Total		334			252

Deferred:
Federal		(2,323	)		(3,639	)
State		(1,132	)		(1,581	)

Total		(3,455	)		(5,220	)

Income tax benefit	$	(3,121	)	$	(4,968	)

Schedule of Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows:


	2019			2018
Deferred tax assets:
Net operating losses	$	3,850		$	2,570
Allowance for bad debts		331			122
Employee related		1,348			1,834
Interest expense		588			1,472
Other		318

Total deferred tax asset		6,435			5,998

Deferred tax liabilities:
Intangible assets		(4,825	)		(7,032	)
Property and equipment		(4,589	)		(3,172	)
Other		(551	)		(662	)

Total deferred tax liability		(9,965	)		(10,866	)

Net deferred tax liability	$	(3,530	)	$	(4,868	)

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

A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate for the years ended December 31, 2019 and 2018 is as follows:


	2019			2018
Tax completed at federal statutory rate		21.00	%		21.00	%
State tax net of federal benefit		2.51			4.96
Non- deductible expenses		(1.38	)		(0.91	)
Equity compensation		(2.41	)		(0.83	)
Contingent put option		(5.59	)		0.00
Foreign taxes		(0.15	)		0.00
Warrant option		(3.20	)
Other		0.92			(1.03	)

Effective income tax rate		11.70	%		23.19	%