Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Tax effects of temporary differences and carry-forwards

Deferred income taxes for 2013 and 2012 were provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Tax effects of temporary differences and carry-forwards at December 31, 2013 and 2012, are as follows:

	December 31, 2013					December 31, 2012
	Deferred Tax					Deferred Tax
	Asset			Liability		Asset			Liability
	(in thousands)
Inventory reserve	$	996		$	—	$	1,022		$	—
Fixed assets		—			375		—			443
Other reserves and accruals		90			—		92			—
Stock-based compensation		295			—		173			—
Undistributed foreign earnings		—			14		—			725
Other		—			75		—			35
Tax credit carry-forwards		1,648			—		1,464			—
Federal tax loss carry-forwards		2,586			—		2,116			—
State tax loss carry-forwards		541			—		513			—
Foreign tax loss carry-forwards		276			—		52			—
Total deferred income taxes		6,432		$	464		5,432		$	1,203
Valuation allowance		(5,968	)				(307	)
Net deferred tax assets	$	464				$	5,125

Provision (benefit) for income taxes

Income tax provision (benefit) for the years ended December 31, 2013 and 2012 is as follows:

	2013			2012
	(in thousands)
Current:
Federal	$	—		$	—
State and local		3			2
Foreign		23			50
Total Current		26			52

Deferred:
Federal		(1,463	)		(527	)
State and local		(51	)		4
Foreign		(225	)		(52	)
Total before change in valuation allowance		(1,739	)		(575	)
Change in valuation allowance		5,661			(1	)
Net Deferred		3,922			(576	)
	$	3,948		$	(524	)

Reconciliation of provision (benefit) for income taxes

A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate to income before income taxes:

	2013			2012
	(in thousands)
Tax provision at expected statutory rate	$	(1,452	)	$	(627	)
State taxes, net of federal benefit		(38	)		6
Permanent differences		25			21
Credits		(184	)		—
Changes in estimated research and development credits		—			93
Foreign tax expense, and other		(64	)		(16	)
Change in valuation allowance		5,661			(1	)
Provision (benefit) for income taxes	$	3,948		$	(524	)