Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Tax effects of temporary differences and carry-forwards

Income tax (benefit) provision for the years ended December 31, 2016 and 2015 is as follows:

	2016			2015
	(in thousands)
Current:
Federal	$	—		$	—
State and local		8			8
Foreign		41			—
Total Current		49			8

Deferred:
Federal		(211	)		(292	)
State and local		267			(12	)
Foreign		55			(1	)
Total before change in valuation allowance		111			(305	)
Change in Valuation Allowance		(325	)		305
Net Deferred		(214	)		—
	$	(165	)	$	8

Provision (benefit) for income taxes

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

	2016			2015
	(in thousands)
Tax provision at expected statutory rate	$	(8	)	$	(239	)
State taxes, net of federal benefit		(25	)		4
Permanent differences		6			8
Credits		(123	)		(97	)
Foreign tax expense, and other		11			27
True-up to State NOL		299			—
Change in valuation allowance		(325	)		305
(Benefit) provision for income taxes	$	(165	)	$	8

Reconciliation of provision (benefit) for income taxes

Deferred income taxes for 2016 and 2015 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, 2016 and 2015, were as follows:

	December 31, 2016					December 31, 2015
	Deferred Tax					Deferred Tax
	Asset			Liability		Asset			Liability
	(in thousands)
Inventory reserve	$	1,083		$	—	$	1,179		$	—
Fixed assets		—			151		—			230
Other reserves and accruals		213			—		173			—
Stock-based compensation		384			—		380			—
Undistributed foreign earnings		—			144		—			97
Other		—			56		—			68
Tax credit carry-forwards		1,921			—		1,840			—
Federal tax loss carry-forwards		3,428			—		3,270			—
State tax loss carry-forwards		627			—		915			—
Foreign tax loss carry-forwards		214			—		269			—
Total deferred income taxes		7,870		$	351		8,026		$	395
Valuation allowance		(7,305	)				(7,631	)
Net deferred tax assets	$	214				$	—