Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax (Benefit) Expense

The following table sets forth income before taxes and the income tax (benefit) expense (in thousands):



	Year Ended December 31,
	2017			2016
Current:
Federal	$	—		$	—
State	$	—		$	—
	—			—
Deferred:
Federal	(212		)	(73		)
State	(18		)	(6		)
	(230		)	(79		)
Income tax (benefit) expense	$	(230	)	$	(79	)

Schedule of Effective Income Tax Rate Reconciliation

Our effective tax rate differs from the statutory federal tax rate as shown in the following table (in thousands):



	Year Ended December 31,
	2017			2016
U.S. federal income taxes at the statutory rate	$	1,945		$	(1,264	)
State taxes, net of federal effects	146			(108		)
Permanent differences	(244		)	10
Impact of state tax rate change to deferred	—			(36		)
Other, including effect of Tax Cuts and Jobs Act	1,725			(28		)
Change in valuation allowance	(3,802		)	1,347
Income tax (benefit) expense	$	(230	)	$	(79	)

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 is presented below (in thousands):



	December 31,
	2017			2016
Deferred tax assets:
Tax benefit of operating loss carry forward	$	7,942		$	11,612
Reserves and allowances	1			12
Accrued expenses	73			35
Charitable contributions	134			198
Stock-based compensation	802			1,098
Fixed assets	—			102
Goodwill	144			—
Intangible amortization	61			—
Texas margin tax temporary credit	233			239
Total deferred tax assets	9,390			13,296
Valuation allowance	(9,390		)	(13,192		)
Net deferred tax assets	$	—		$	104

Deferred tax liabilities:
Goodwill	—			230
Intangible amortization	—			104
Total deferred tax liabilities	$	—		$	334

Net deferred tax liability	$	—		$	(230	)