Income Taxes (FY) (Tables)

12 Months Ended

Dec. 31, 2019

The provision (benefit) for income taxes attributable to income from operations includes the following (in thousands):

	For the Years Ended December 31,
	2019			2018			2017
Current provision (benefit)
Federal	$	25		$	(29	)	$	(86	)
State		68			(17	)		29
Total current		93			(46	)		(57	)

Deferred (benefit) provision
Federal		88			15			(2,622	)
State		(285	)		62			(88	)
Total deferred		(197	)		77			(2,710	)
Total (benefit) provision	$	(104	)	$	31		$	(2,767	)

Reconciliation of Effective Tax Rate

The provision for income taxes related to operations varies from the amount determined by applying the federal income tax statutory rate to the income or loss before income taxes, exclusive of net income attributable to non-controlling interest. The reconciliation of these differences is as follows:

	For the Years Ended December 31,
	2019			2018			2017
Computed expected income tax provision		21.0	%		21.0	%		34.0	%
State income taxes, net of federal income tax benefit		(0.2	)		(20.9	)		0.9
Change in valuation allowance for deferred tax assets		(8.5	)		47.7			(26.9	)
Cumulative deferred adjustments		(0.4	)		--			--
Provision to return adjustments		0.5			1.8			--
Other permanent differences		(3.7	)		(12.2	)		(1.3	)
Dividend and accretion on preferred stock		(12.3	)		(49.9	)		(15.2	)
FIN 48 liability		(1.3	)		(4.6	)		(0.9	)
R&D credit		6.5			27.7			4.6
Impact of Tax Act		--			(12.5	)		35.5
Other		--			--			1.5
		1.6	%		(1.9	)%		32.2	%

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are as follows (in thousands):

	December 31,
	2019			2018
Deferred tax assets:
Accounts receivable, principally due to allowance for doubtful accounts	$	185		$	79
Allowance for inventory obsolescence and amortization		316			281
Accrued liabilities not currently deductible		1,649			1,634
Accrued compensation		1,655			1,206
Deferred rent		4,808			4,750
Section 163(j) interest limitation		804			246
Net operating loss carryforwards - federal		2,583			1,956
Net operating loss carryforwards - state		796			653
Federal tax credit		1,326			983
Total gross deferred tax assets		14,122			11,788
Less valuation allowance		(7,206	)		(6,652	)
Total deferred tax assets, net of valuation allowance		6,916			5,136
Deferred tax liabilities:
Amortization and depreciation		(2,623	)		(2,237	)
Unbilled accounts receivable, deferred for tax purposes		(1,611	)		(955	)
Goodwill basis adjustment and amortization		(2,886	)		(2,713	)
Telos ID basis difference		(417	)		(49	)
Total deferred tax liabilities		(7,537	)		(5,954	)
Net deferred tax liabilities	$	(621	)	$	(818	)

Components of Valuation Allowance

The components of the valuation allowance are as follows (in thousands):

	Balance Beginning of Period		Additions		Recoveries			Balance End of Period

December 31, 2019	$	6,652	$	554	$	--		$	7,206
December 31, 2018	$	7,219	$	--	$	(567	)	$	6,652
December 31, 2017	$	10,499	$	--	$	(3,280	)	$	7,219

Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2019			2018			2017
Unrecognized tax benefits, beginning of period	$	648		$	677		$	762
Gross decreases — tax positions in prior period		(39	)		(63	)		(127	)
Gross increases — tax positions in current period		101			92			77
Settlements		(37	)		(58	)		(35	)
Unrecognized tax benefits, end of period	$	673		$	648		$	677