(Loss) income from our operations before income taxes for U.S. and foreign operations was as follows (in thousands):

	2019			2018
U.S.	$	(661	)	$	2,228
Foreign		(6,342	)		2,261
Total	$	(7,003	)	$	4,489

The income tax (provision) benefit reflected in the statement of income consists of the following (in thousands):

	2019			2018
				(As Revised)
Current (provision) benefit:
U.S. Federal, State & Other	$	305		$	(75	)
Foreign		(289	)		(1,213	)
Deferred taxes
U.S.		(274	)		308
Foreign		470			464
Total (provision) benefit	$	212		$	(516	)

	2019			2018
				(As Revised)
Benefit of net operating losses	$	8,749		$	7,334
Tax credit carry-forwards		6,776			7,475
Deferred revenue		781			1,668
Impaired investment		691			677
Property and intangible assets		436			61
Other		1,390			1,885
Deferred tax asset		18,823			19,100
Valuation allowance		(17,976	)		(17,845	)
Total deferred tax assets		847			1,255
Deferred tax liabilities - basis difference and amortization		(268	)		(838	)
Net deferred taxes	$	579		$	417

The reconciliation of income tax rate to effective tax rate was as follows (in thousands):

	2019			2018
				(As Revised)
Provision at U.S. statutory rate		21.0	%		28.1	%
Net effect of taxes on foreign activities		(7.2	%)		2.7	%
Tax effect of U.S. permanent differences		(5.8	%)		0.5	%
State taxes and other, net		(4.1	%)		0.2	%
Stock-based compensation		0.1	%		1.3	%
Other		0.0	%		(6.2	%)
Valuation allowance		(1.0	%)		(15.1	%)
Effective tax rate		3.0	%		11.5	%

On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted by the U.S. The Act implements comprehensive tax legislation which, among other changes, reduces the federal statutory corporate tax rate from 35% to 21% and implements a territorial tax system that eliminates the ability to credit certain foreign taxes.

As we have a June 30 fiscal year end, the lower income tax rates were phased in, resulting in a blended rate for fiscal 2018 and a 21% rate for years thereafter. Based on the provisions of the Act, we re-measured our U.S. deferred tax assets and related valuation allowance at the date of enactment. The re-measurement of U.S. deferred tax assets and related valuation allowance at the lower enacted corporate tax rate resulted in a net change of zero.

Furthermore, the new Act repeals the Alternative Minimum Tax (“AMT”) on corporations. Any AMT credit carryforwards can be used to offset regular tax for any tax year and is refundable, subject to limitation in 2018 - 2021. With this change, we expect to be able to use or monetize the AMT credit within stated limitation period, and therefore, the valuation allowance recorded against the credit was removed in the second quarter of fiscal 2018.

The Act also imposed a tax on the untaxed foreign earnings of foreign subsidiaries of U.S. companies by deeming those earnings to be repatriated (the “Transition Tax”). Generally, foreign earnings held in the form of cash and cash equivalents are taxed by the U.S. at a 15.5% rate and the remaining earnings are taxed at an 8% rate. The Transition Tax generally may be paid in installments over an eight-year period.

We completed our evaluation and related calculations related to the Transition Tax during the second quarter of fiscal 2019, which confirmed our previous conclusion that our foreign tax credits would completely offset any tax calculated. As a result, we have not made any cash payments related to the Transition Tax.

At June 30, 2019, we had net operating loss carry-forwards for U.S. federal income tax purposes of $29.4 million; $26.8 million that expire in the years 2021 through 2035 and $2.6 million that will carry forward indefinitely. We also had tax credit carry-forwards of $6.8 million of which $4.6 million expire in the years 2020 through 2034. Included in the U.S. federal net operating loss carry-forward is $8.3 million from the exercise of employee stock options, the tax benefit of which was recognized on July 1, 2017 in accordance with ASU 2016-09. A corresponding valuation allowance was also recorded.

Our deferred tax assets are substantially represented by the tax benefit of U.S. net operating losses “(NOL’s”), tax credit carry-forwards and the tax benefit of future deductions represented by timing differences for deferred revenue, inventory obsolescence, allowances for bad debts, warranty expenses and unrealized losses on investments. We assess the realizability of the NOL’s and tax credit carry-forwards based on a number of factors including our net operating history, the volatility of our earnings, our accuracy of forecasted earnings for future periods and the general business climate. Our deferred tax liability is substantially represented by the basis difference in the Coord3 intangible assets acquired.

As of the end of our fiscal year 2016, we had been in a three-year cumulative loss position in the U.S., therefore, at that time, we determined that it was not more likely than not that any of our U.S. deferred tax assets would be realized as benefits in the future. Accordingly, we established a full valuation allowance against our U.S. net deferred tax assets as of June 30, 2017 and this valuation allowance remains at June 30, 2019. Additionally, during fiscal years 2017 and 2018, we established full valuation allowances against our Germany, Japan, Singapore and Brazil net deferred tax assets for similar reasons. While our U.S. and Germany locations had pre-tax income during fiscal year 2018 and 2019, however, we have determined that it remains more likely than not that of our deferred tax assets, except for the U.S. AMT credit, will not be realized as benefits in the future in these jurisdictions. The net change in the total valuation allowance for the fiscal years ended June 30, 2019 and 2018 was ($131,000) and ($1,254,000), respectively.

On June 30, 2019 and 2018, we had $234,000 and $73,000 of unrecognized tax benefits and reserves for uncertain tax positions that would affect the effective tax rate if recognized absent valuation considerations. Our policy is to classify interest and penalties related to uncertain tax positions as interest expense and income tax expense, respectively. As of June 30, 2019, there was $261,000 of accrued interest and penalties related to uncertain tax positions recorded on our Consolidated Balance Sheets and Consolidated Statements of Operations. For U.S. federal income tax purposes, the tax years 2016 through 2019 remain open to examination by government tax authorities. For German income tax purposes, tax years 2015 through 2019 remain open to examination by government tax authorities. For our China income tax purposes, tax years 2016 through 2019 remain open to examination by government tax authorities generally.

The aggregate changes in the balance of unrecognized tax benefits and uncertain tax positions were as follows (in thousands):

	2019
Balance, at June 30, 2018	$	73
Increases for tax positions related to the current year		-
Increases for tax positions related to the prior year		234
Reduction due to lapse in statute of limitation		(73	)
Balance, at June 30, 2019	$	234