Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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,
	2018		2017
Current:
Federal	$	—	$	—
State	13		—
	13		—
Deferred:
Federal	—		(212		)
State	—		(18		)
	—		(230		)
Income tax expense (benefit)	$	13	$	(230	)

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,
	2018			2017
U.S. federal income taxes at the statutory rate	$	(1,503	)	$	1,945
State taxes, net of federal effects	(69		)	146
Other permanent differences	38			(244		)
Equity-based compensation	84			—
Transaction costs	93			—
Goodwill impairment	840			—
Rate change	550			1,725
Change in valuation allowance	(20		)	(3,802		)
Income tax expense (benefit)	$	13		$	(230	)

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,
	2018			2017
Deferred tax assets:
Tax benefit of operating loss carry forward	$	8,088		$	7,942
Reserves and allowances	2			1
Accrued expenses	57			73
Charitable contributions	8			134
Stock-based compensation	701			802
Fixed assets	(37		)	—
Goodwill	292			144
Intangible amortization	50			61
Texas margin tax temporary credit	209			233
Total deferred tax assets	9,370			9,390
Valuation allowance	(9,370		)	(9,390		)
Net deferred tax assets	$	—		$	—