Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Domestic and Foreign Components of Net Loss

The domestic and foreign components of net loss were as follows (in thousands):

	Year Ended December 31,
	2018			2017			2016
Domestic	$	(3,083	)	$	(10,125	)	$	(6,744	)
Foreign		345			305			(116	)
Net loss	$	(2,738	)	$	(9,820	)	$	(6,860	)

Schedule of Provision for Income Tax

The provision for income tax consists of the following (in thousands):

	Year Ended December 31,
	2018			2017		2016
Current:
Federal	$	—		$	—	$	—
State		—			—		—
Foreign		(13	)		160		—
Total		(13	)		160		—
Deferred:
Federal		—			—		—
State		—			—		—
Foreign		—			—		—
Total		—			—		—
Total tax expense	$	(13	)	$	160	$	—

Schedule of Reconciliation of Statutory Federal Income Tax Rate to Net Income Taxes

A reconciliation of income taxes at the statutory federal income tax rate to net income taxes included in the accompanying consolidated statements of operations is as follows (in thousands):

	December 31,
	2018			2017			2016
Income tax at statutory rate	$	(575	)	$	(3,339	)	$	(2,331	)
Change in valuation allowance		1,595			(8,354	)		2,146
Change in tax rate		—			9,788			—
Change in deferreds		7			(39	)		—
State tax		(309	)		536			9
Mark-to-market on warrants		—			1,267			178
Stock-based compensation		(615	)		84			24
Research and development credit		(220	)		(62	)		(88	)
Foreign rate differential		(86	)		56			40
Subpart F - transition tax		81			68			—
Lobbying		78			79			—
Other		31			76			22
Total	$	(13	)	$	160		$	—

Schedule of Company's Deferred Tax Assets and Liabilities

Temporary differences that gave rise to significant portions of the Company’s deferred tax assets and liabilities as of December 31, 2018 and 2017 were as follows (in thousands):

	Year Ended December 31,
	2018			2017
Deferred tax assets:
Net operating losses	$	21,461		$	20,139
Credits		1,969			1,654
Accruals and reserves		285			643
Deferred revenue and contract costs		458			464
Gross deferred tax assets		24,173			22,900
Valuation allowance		(23,710	)		(22,789	)
Net deferred tax assets		463			111
Deferred tax liabilities:
Fixed assets and intangibles		(545	)		(111	)
Total deferred tax liabilities, net	$	(82	)	$	—

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

Balance as of December 31, 2016	$	574
Increases for current year tax positions		46
Increases for prior year tax positions		—
Balance as of December 31, 2017		620
Increases for current year tax positions		114
Increases for prior year tax positions		—
Balance as of December 31, 2018	$	734