8. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes Tables Abstract

Schedule of income tax expense/benefit

	Years Ended December 31,
	2018			2017
Current:
Federal	$	(110	)	$	(11	)
State		10			10
		(100	)		(1	)
Deferred:
Federal		(280	)		(1,780	)
State		103			(43	)
Impact of rate change		—			665
		(177	)		(1,158	)
	$	(277	)	$	(1,159	)

Schedule of effective income tax rate

	Years Ended December 31,
	2018			2017
Statutory U.S. income tax rate		(21.00	)%		(34.00	)%
State taxes, net of federal benefit		1.75	%		(1.37	)%
Non-deductible items		3.52	%		0.52	%
Change in valuation allowance		(13.53	)%		(0.25	)%
Change in net operating loss carryforwards and tax credits		(33.48	)%		(3.27	)%
Other		4.02	%		0.25	%
Effective income tax rate		(58.72	)%		(38.12	)%

Schedule of deferred tax assets and liabilities

	Years Ended December 31,
	2018			2017
Deferred tax assets:
Operating loss carryforwards	$	313		$	1,874
R&D Tax Credit		1,394			1,478
AMT Tax Credit		179			352
Section 263A costs		252			315
R&D costs		224			335
Amortization		24			24
Unrealized loss		422			—
Asset reserves:
Bad debts		12			12
Inventory allowance		146			182
Accrued expenses:
Non-qualified stock options		112			86
Compensation		140			165
Warranty		764			465
Deferred tax assets		3,982			5,288
Less state valuation allowance		—			(64	)
Total deferred tax assets		3,982			5,224
Deferred tax liabilities:
Depreciation		(487	)		(338	)
Total deferred tax liabilities		(487	)		(338	)
Net deferred tax assets (before unrealized gain)		3,495			4,886
Deferred tax liability: unrealized gain		—			(1,569	)
Net deferred tax assets	$	3,495		$	3,317