Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Loss Before Income Taxes

Loss before income taxes consists of the following:

 

    Year Ended December 31,  
    2018     2019     2020  
                   
U.S. operations   $ (5,066 )   $ (10,888 )   $ (15,492 )
Foreign operations     (746 )     (168 )     7,520  
                         
    $ (5,812 )   $ (11,056 )   $ (7,972 )

Schedule of Provision for Income Taxes

The provision for income taxes consist of the following:

 

    Year Ended December 31,  
    2018     2019     2020  
Current:                        
Federal   $ -     $ -     $ -  
State     -       119       45  
Foreign     -       (44 )     54  
      -       75       99  
Deferred:                        
Federal     -       -       -  
State     -       -       -  
Foreign     -       -       939  
      -       -       939  
Total provision for income taxes   $ -     $ 75     $ 1,038  

Schedule of Statutory Federal Income Tax Rate

The difference between income taxes at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations is attributable to the following:

 

    Year Ended December 31,  
    2018     2019     2020  
                   
Income tax benefit at the federal statutory rate   $ (1,221 )   $ (2,317 )   $ (1,674 )
State and local income taxes, net of federal taxes     (800 )     (213 )     (421 )
Increase (decrease) in valuation allowance     (1,861 )     402       2,595  
Remeasurement of deferred tax assets     -       1,032       (48 )
Incentive stock options/forfeitures     (22 )     -       -  
Permanent differences and other     182       1066       1,146  
Other     -       (45 )     (560 )
                         
    $ -     $ (75 )   $ 1,038  

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2020 are presented below:

 

    Year Ended December 31,  
    2019     2020  
             
Deferred tax assets:                
Net operating loss carryforwards   $ 35,871     $ 32,843  
Capital loss carryforwards     10,292       11,025  
Deferred revenue     1,167       1,775  
Stock-based compensation     534       886  
Federal research and development tax credits     1,058       1,058  
Intangibles, amortization     -       1,718  
Inventories     124       65  
Bad debt reserve     -       98  
Other deductible temporary differences     778       3,456  
                 
Total gross deferred tax assets     49,824       52,924  
Less: valuation allowance     (42,117 )     (46,070 )
                 
      7,707       6,854  
Deferred tax liabilities:                
Goodwill amortization     (11,276 )     (5,151 )
Fixed assets, depreciation     (222 )     (197 )
                 
      (11,498 )     (5,348 )
                 
Net deferred tax (liabilities)/assets   $ (3,791 )   $ 1,506  
Schedule of Unrecognized Tax Positions

A reconciliation of the beginning and ending amount of unrecognized tax positions is as follows:

 

    Year Ended December 31,  
    2019     2020  
             
Balance at the beginning of the year   $ 271     $ 390  
                 
Pointer uncertain tax positions assumed     112       -  
                 
Additions based on tax provisions taken related to current year     7       33  
                 
Balance at the end of year   $ 390     $ 423