Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Components of Income Tax Expense (Benefit)

The following table sets forth income before taxes and the income tax expense (benefit) for the years ended December 31, 2014 and December 31, 2013 (in thousands):



	Year Ended December 31,
	2014		2013
Current:
State	4		(30		)
	4		(30		)
Deferred:
Federal	124		—
State	11		—
	135		—
Income tax expense (benefit)	$	139	$	(30	)

Schedule of Effective Income Tax Rate Reconciliation

Our effective tax rate differs from the statutory federal tax rate for the years ended December 31, 2014 and 2013 as shown in the following table (in thousands):



	Year Ended December 31,
	2014			2013
U.S. federal income taxes at the statutory rate	$	(916	)	$	(1,372	)
State taxes, net of federal effects	(77		)	(297		)
Permanent differences	22			310
Impact of state tax rate change to deferred	1,282			—
Expired net operating loss carry-forwards	—			1,635
Other	297			14
Change in valuation allowance	(469		)	(320		)
Income tax expense (benefit)	$	139		$	(30	)

Schedule of Deferred Tax Assets and Liabilities

The tax effect of the temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2014 and 2013 is presented below (in thousands):



	December 31,
	2014			2013
Deferred tax assets:
Tax benefit of operating loss carry forward	$	14,280		$	15,490
Reserves and allowances	172			232
Accrued expenses	79			263
Charitable Contributions	184			196
Goodwill	—			192
Equity based compensation	543			650
Fixed assets	229			306
Texas margin tax temporary credit	253			260
Total deferred tax assets	15,740			17,589
Valuation allowance	(15,099		)	(15,568		)
Net deferred tax assets	$	641		$	2,021

Deferred tax liabilities:
481(a) adjustment	3			—
Goodwill	135			—
Intangible amortization	645			2,021
Total deferred tax liabilities	$	783		$	2,021

Net deferred tax liability	$	(142	)	$	—