Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign

The following table sets forth pretax book loss (in thousands):



	Year Ended December 31,
	2019			2018
United States	$	(7,882	)	$	(7,155	)
Foreign	121			—
Total	$	(7,761	)	$	(7,155	)

Schedule of Components of Income Tax (Benefit) Expense

The following table sets forth income before taxes and the income tax expense for the years ended December 31, 2019 and 2018 (in thousands):



	Year Ended December 31,
	2019		2018
Current:
Federal	$	—	$	—
Foreign	—
State	—		13
	—		13

Deferred:
Federal	—		—
Foreign	—		—
State	—		—
	—		—
Income tax expense	$	—	$	13

Schedule of Effective Income Tax Rate Reconciliation

Our effective tax rate differs from the statutory federal tax rate for the years ended December 31, 2019 and 2018 as shown in the following table (in thousands):



	Year Ended December 31,
	2019			2018
U.S. federal income taxes at the statutory rate	$	(1,630	)	$	(1,503	)
State taxes, net of federal effects	(130		)	(69		)
Permanent differences	21			38
UK Anti-Hybrid expense addback	397			—
Stock-based compensation	30			84
Transaction costs	74			93
Goodwill impairment	473			840
Change in state apportionment rate	(406		)	550
Change in valuation allowance	1,421			(20		)
Research and development credit	(136		)	—
Foreign rate differential	8			—
Other	(122		)	—
Income tax expense	$	—		$	13

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, 2019 and 2018 is presented below (in thousands):



	December 31,
	2019			2018
Deferred tax assets:
Tax benefit of operating loss carry forward - Federal	$	30,377		$	8,088
Tax benefit of operating loss carry forward - State	9,985			—
Accrued expenses	83			57
Deferred revenue	522			—
Stock-based compensation	671			701
Fixed assets	320			(37		)
Goodwill	236			292
Intangible amortization	—			50
R&D credit	2,700			—
Texas margin tax temporary credit	186			209
Other	126			10
Total deferred tax assets	$	45,206		$	9,370

Deferred tax liabilities:
Inventory	$	(61	)	$	—
Intangible amortization	(3,287		)	—
Total deferred tax liabilities	$	(3,348	)	$	—

Valuation allowance	(41,858		)	(9,370		)
Net deferred tax liability	$	—		$	—