Income Taxes (Tables)
12 Months Ended
Dec. 31, 2014
Income Taxes  
Schedule of domestic and foreign components of net income (loss) before income tax expense

The domestic and foreign components of net income (loss) before income tax expense consists of the following for the periods shown below (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2012

 

2013

 

2014

 

Income (loss) before income taxes:

 

 

 

 

 

 

 

Domestic

 

$

(4,055

)

$

3,633

 

$

7,464

 

Foreign

 

473

 

118

 

1,103

 

Total income (loss) before income taxes

 

$

(3,582

)

$

3,751

 

$

8,567

 

 

Schedule of components of provision for income taxes

The provision for income taxes consisted of the following components (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2012

 

2013

 

2014

 

Current:

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

Federal

 

$

15

 

$

64

 

$

76

 

State

 

57

 

53

 

52

 

Foreign

 

69

 

147

 

288

 

Total current tax expense

 

141

 

264

 

416

 

Deferred:

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

Federal

 

(710

)

1,572

 

1,761

 

State

 

(65

)

44

 

30

 

Foreign

 

88

 

(16

)

(5

)

Valuation allowance

 

687

 

(1,616

)

(1,791

)

Total deferred tax benefit

 

 

(16

)

(5

)

Total income tax expense

 

$

141

 

$

248

 

$

411

 

 

Schedule of reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate

A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate follows:

 

 

 

Years Ended December 31,

 

 

 

2012

 

2013

 

2014

 

Federal income tax rate

 

(34.0

)%

34.0

%

34.0

%

State taxes, net of federal benefit

 

1.1

 

1.1

 

0.4

 

Stock-based compensation

 

15.0

 

22.7

 

(2.1

)

Stock warrant

 

 

6.4

 

 

Research and development credits

 

 

(18.3

)

(8.1

)

Change in valuation allowance

 

17.3

 

(42.0

)

(20.6

)

Other, net

 

4.5

 

2.7

 

1.2

 

Effective income tax rate

 

3.9

%

6.6

%

4.8

%

 

Schedule of deferred tax assets and (liabilities)

Deferred tax assets and (liabilities) are comprised of the following (in thousands):

 

 

 

December 31,

 

 

 

2013

 

2014

 

Deferred Tax Assets:

 

 

 

 

 

Reserves and accruals

 

$

2,146

 

$

1,449

 

Inventories

 

1,059

 

1,063

 

Net operating loss carryforwards

 

27,865

 

25,007

 

Property, plant and equipment

 

1,327

 

1,831

 

Stock-based compensation

 

1,233

 

1,540

 

Research and development credit carryforwards

 

4,091

 

5,243

 

Other

 

163

 

 

Total deferred tax assets

 

37,884

 

36,133

 

Valuation allowance

 

(37,842

)

(36,050

)

Total deferred tax assets

 

$

42

 

$

83

 

Deferred Tax Liabilities:

 

 

 

 

 

Undistributed earnings of foreign subsidiaries

 

$

(15

)

$

(56

)

Intangible assets

 

 

(116

)

Property and equipment

 

(11

)

(16

)

Total deferred tax liabilities

 

$

(26

)

$

(188

)

Net deferred tax asset (liability)

 

$

16

 

$

(105

)

 

Schedule of net operating loss and tax credit carryforwards

Net operating loss and tax credit carryforwards as of December 31, 2014 are as follows (in thousands):

 

 

 

Amount

 

Expiration Years

 

Net operating losses, federal

 

$

85,577 

 

2024 – 2034

 

Net operating losses, state

 

86,064 

 

2018 – 2032

 

Tax credit carryforwards, federal

 

3,789 

 

2023 – 2034

 

Tax credit carryforwards, state

 

2,799 

 

2018 – 2029

 

Net operating losses, foreign

 

20 

 

None

 

 

Schedule of reconciliation of the changes in the gross balance of unrecognized tax benefits, excluding interest and penalties

The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits, excluding interest and penalties (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2012

 

2013

 

2014

 

Balance at the beginning of the period

 

$

2,318 

 

$

2,318 

 

$

2,943 

 

Current year additions

 

 

625 

 

640 

 

Balance at the end of the period

 

$

2,318 

 

$

2,943 

 

$

3,583