Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) Significant components of the provision for income taxes for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):
  2019 2018 2017
Current:      
Federal $ (303)   $ (448)   $ (91)  
State 290    126    14   
Total Current (Benefit) $ (13)   $ (322)   $ (77)  
Deferred:
Federal $ (3,409)   $ 1,070    $ (2,359)  
State (939)   321    297   
Foreign —    115    (115)  
Total Deferred Provision (Benefit) $ (4,348)   $ 1,506    $ (2,177)  
Total Tax Provision (Benefit) $ (4,361)   $ 1,184    $ (2,254)  
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the differences between the effective tax rate and the federal statutory tax rate for the years ended December 31, 2019, 2018 and 2017 is as follows:
  2019 2018 2017
Federal statutory tax rate 21.00  % 21.00  % 34.00  %
State income taxes, net of federal income tax benefit (19.47) % 11.01  % (4.96) %
Non-deductible expenses 7.49  % 3.80  % (17.57) %
Compensation expense (135.12) % (12.52) % (25.95) %
Transaction expenses —  % 7.09  % —  %
Deferred revaluation for Tax Cuts and Jobs Act —  % —  % 116.24  %
Adjustment due to adoption of Accounting Standards —  % (13.84) % —  %
Deferred income tax adjustments (10.98) % —  % —  %
Foreign Tax Rate Differential —  % 7.20  % (12.99) %
Other, net (8.32) % (1.21) % (3.72) %
Valuation allowance 25.74  % 8.44  % —  %
Effective tax rate (119.66) % 30.97  % 85.05  %
Schedule of Deferred Tax Assets and Liabilities
At December 31, 2019 and 2018, our current and non-current deferred income tax assets and liabilities consisted of the following (in thousands):
  2019 2018
Deferred tax assets:
Allowance for doubtful accounts $ 1,401    $ 634   
Accrued compensation 3,718    1,935   
Other accruals —    156   
Other 571    502   
Net operating loss carry-forwards 17,687    17,825   
Nonqualified stock options and warrants 2,056    1,613   
Operating lease liabilities 6,822    —   
     Gross deferred tax assets 32,255    22,665   
     Less: valuation allowance (1,261)   (323)  
Total deferred tax assets 30,994    22,342   
Deferred tax liabilities:
Operating right-of-use assets (6,422)   —   
Accumulated depreciation and amortization (40,138)   (44,799)  
Total deferred tax liabilities (46,560)   (44,799)  
Net deferred income tax liability $ (15,566)   $ (22,457)  
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible
The following are our unrecognized tax benefits as of December 31, 2019 and 2018 (in thousands):
For the Years Ended December 31,   
2019 2018
Unrecognized tax benefits - January 1 $ 1,847    $ —   
Increases in prior year positions 27    632   
Reversals of prior year positions (1,215)   —   
Increases in tax positions taken in current year —    1,215   
Statute expirations (215)   —   
Unrecognized tax benefits - December 31 $ 444    $ 1,847