Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

(8)          Income Taxes

Our net income tax provision, including both current and deferred, related to U.S. federal and state income taxes, is none.

A reconciliation of income tax expense to the amount computed by applying the Federal income tax rate to loss before provision for income taxes as of December 31, 2016 and 2015 is as follows:

	2016			2015
Income tax credit at statutory rates	$	(436	)	$	(405	)
Nondeductible expenses		2			3
State income tax, net of federal benefits		(66	)		(61	)
Other		144			(3	)
Increase in valuation allowance		356			466
	$	—		$	—

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred income taxes consist of the following:

	As of December 31,
	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	31,935		$	31,590
Inventory and other allowances		16			28
Charitable contribution carryforwards		5			6
Excess (tax) book depreciation		805			709
Excess (tax) book amortization		69			67
Share-based compensation		1,328			1,396
Other accrued costs		219			225
Total deferred tax assets		34,377			34,021
Less: Valuation allowance		(34,377	)		(34,021	)
Deferred income taxes	$	—		$	—

The valuation allowance increased approximately $0.4 million and $0.5 million for the years ended December 31, 2016 and 2015, respectively (with no expiring net operating loss carryforwards and credits for either period; a portion of the charitable contribution carryforward expired during 2016) due principally to the change in the net operating loss carryforward and uncertainty as to whether future taxable income will be generated prior to the expiration of the carryforward period. Under the Internal Revenue Code, certain ownership changes, including the prior issuance of preferred stock and our public offering of common stock, may subject us to annual limitations on the utilization of our net operating loss carryforward. As of December 31, 2016, the amounts subject to limitations has not yet been determined.

We have net operating loss carryforwards for tax purposes of approximately $82 million on December 31, 2016, which expire between 2018 and 2036.

During 2011, the state of Illinois suspended the use of net operating loss carryforwards for a four year period beginning 2011, extending the term of all net loss carryforwards by a corresponding four years.