The components of income tax expense for the years ended December 31, 2019 and 2018 are presented below (in thousands):

	Year Ended December 31, 2019			Year Ended December 31, 2018
Current
Federal	$	(37	)	$	—
State		61			—
Foreign		447			2,808
Deferred
Federal		332			(4,049	)
State		705			49
Foreign		(789	)		(2,549	)
Total income tax (benefit) provision	$	719		$	(3,741	)

The actual income tax expense amounts for the years ended December 31, 2019 and 2018 differed from the expected tax amounts computed by applying the U.S. federal corporate income tax rate of 21% for 2019 and 2018 to the amounts of loss before income taxes as presented below (in thousands):

	Year Ended December 31, 2019			Year Ended December 31, 2018
Pre-tax book loss	$	(53,295	)	$	(71,480	)
Tax at Federal statutory rate of 21% in 2019 and 2018		(11,192	)		(15,011	)
Stock-based compensation		1,060			-
State taxes		766			49
Foreign rate differential		(871	)		(713	)
Deferred rate change		-			(80	)
TCJA impact		-			(7,712	)
Other adjustments		(1,707	)		1,578
Valuation allowance		12,663			18,148
Total income tax (benefit) provision	$	719		$	(3,741	)

The domestic and foreign components of loss before income taxes from continuing operations for the years ended December 31, 2019 and 2018 are as follows (in thousands):

	Year Ended December 31, 2019			Year Ended December 31, 2018
Domestic	$	(52,438	)	$	(65,356	)
Foreign		(857	)		(6,124	)
Total	$	(53,295	)	$	(71,480	)

The tax effects of temporary differences at December 31, 2019 and 2018 are as follows (in thousands):

	Year Ended December 31, 2019			Year Ended December 31, 2018
Net operating losses and other carryforwards	$	41,299		$	38,010
Interest expense carryforward		20,070			9,276
Property and equipment		2,221			—
Accrued expenses		82			701
Allowance for doubtful accounts		1,517			1,194
Stock-based compensation		—			916
Other		633			1,028
Deferred tax asset		65,822			51,125
Valuation allowance		(51,895	)		(36,595	)
Total deferred tax assets, net of valuation allowance		13,927			14,530
Property and equipment		—			(510	)
Intangible assets		(20,098	)		(19,283	)
Prepaid expenses		(73	)		(812	)
Other		(50	)		—
Deferred tax liability		(20,221	)		(20,605	)
Net deferred tax liability	$	(6,294	)	$	(6,075	)

At December 31, 2019 and 2018, the Company had tax effected U.S. federal net operating loss carryforwards of approximately $31.0 million and $29.0 million, respectively. At December 31, 2019 and 2018, the Company had tax effected state net operating loss carryforwards of approximately $6.5 million and $6.6 million, respectively. At December 31, 2019 and 2018, the Company also had U.S. tax credit carryforwards of approximately $0.9 million and $0.9 million, respectively. The net operating loss and credit carryforwards, if not used, will begin to expire in 2024

The tax effected foreign net operating loss at December 31, 2019 and 2018 is approximately $2.9 million and $1.5 million, respectively, the majority of which has an unlimited carryforward period.

The Company operates in multiple tax jurisdictions and, in the normal course of business, its tax returns are subject to examination by various taxing authorities. Such examinations may result in future assessments by these taxing authorities. The Company is subject to examination by U.S. tax authorities beginning with the year ended December 31, 2015. The Company is also subject to examination in various foreign jurisdictions. In material foreign jurisdictions, the statute of limitations ranges one – four years from the filing of a tax return.

No provision was made for U.S. taxes on the undistributed earnings of the foreign subsidiaries, as such earnings are considered to be permanently reinvested. Such earnings have been, and will continue to be, reinvested, but could become subject to additional tax, if they were remitted as dividends, loaned to the Company, or if the Company should sell its stock in the foreign subsidiaries. It is not practicable to determine the amount of additional tax, if any, that might be payable on the undistributed foreign earnings.

As of December 31, 2019 and 2018, the Company had a valuation allowance of $51.9 million and $36.6 million, respectively, against certain deferred tax assets. The valuation allowance relates to the deferred tax assets of the Company’s U.S. entities, including federal and state tax attributes and timing differences, as well as the deferred tax assets of certain foreign subsidiaries. The increase in the valuation allowance during 2019 is primarily related to operating losses incurred during the year and the limitation on deductibility of interest expense. To the extent the Company determines that, based on the weight of available evidence, all or a portion of its valuation allowance is no longer necessary, the Company will recognize an income tax benefit in the period such determination is made for the reversal of the valuation allowance. If management determines that, based on the weight of available evidence, it is more-likely-than-not that all or a portion of the net deferred tax assets will not be realized; the Company may recognize income tax expense in the period such determination is made to increase the valuation allowance. It is possible that such reduction of or addition to the Company’s valuation allowance may have a material impact on the Company’s results from operations.

	Year Ended December 31, 2019			Year Ended December 31, 2018
Beginning Balance	$	36,595		$	22,513
Additions	$	15,622		$	22,636
Reductions		(322	)		(8,554	)
Ending Balance	$	51,895		$	36,595