Income Taxes
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The components of the (benefit) provision for income taxes from continuing operations are as follows (in thousands):

 
Year Ended December 31,
 
2016
 
2015
Current tax (benefit) expense:
 
 
 
Federal
$
(67
)
 
$
—

State
15

 
40

Total current
(52
)
 
40

Deferred tax (benefit) expense:
 
 
 
Federal
(321
)
 
86

State
(17
)
 
2

Total deferred
(338
)
 
88

Total (benefit) provision for income taxes
$
(390
)
 
$
128



The benefit (provision) for income taxes from continuing operations differs from the federal statutory income tax rate as follows:

 
Year Ended December 31,
 
2016
 
2015
Federal statutory tax rate
34.0
 %
 
34.0
 %
State taxes
0.3

 
(1.6
)
Goodwill impairment
(25.1
)
 
—

Change in valuation allowance
(7.5
)
 
(33.7
)
Stock-based compensation
(0.1
)
 
(0.6
)
Meals, entertainment and other
(0.1
)
 
(0.2
)
Total
1.5
 %
 
(2.1
)%


Deferred tax assets (liabilities) consist of the following (in thousands):

 
Year Ended December 31,
 
2016
 
2015
Deferred tax assets:
 
 
 
Net operating loss and credit carryforwards
$
9,369

 
$
7,020

 Deferred loss on asset sale
2,008

 
1,935

Stock-based compensation
867

 
1,394

 Reserves and accruals
809

 
1,222

 Research and other credits
92

 
184

Fixed assets and intangibles
(491
)
 
(628
)
 Total gross deferred tax assets
12,654

 
11,127

 Less: Valuation allowance
(12,562
)
 
(11,373
)
Total deferred tax assets (liabilities)
$
92

 
$
(246
)


We have weighed both positive and negative evidence and determined that there is a need for a valuation allowance due to the existence of three years of historical cumulative losses which we considered significant verifiable negative evidence. The valuation allowance increased by $1.2 million and decreased $1.5 million during the years ended December 31, 2016 and 2015, respectively. As of December 31, 2016, we continue to maintain a valuation allowance on almost all of our deferred tax assets.

At December 31, 2016, we had approximately $25.2 million of Federal and $19.0 million of State operating loss carryforwards available to reduce future taxable income. The federal net operating loss carryforwards begin to expire in 2034 and the various state net operating loss carryforwards begin to expire in 2022. We have federal AMT credits of approximately $0.1 million.
We follow the authoritative accounting guidance prescribing a threshold and measurement attribute for the financial recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance requires that the tax effects of a position be recognized only if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes.
We currently have no liability recorded as of December 31, 2016 for unrecognized income tax benefits. Our policy is to recognize interest and penalties related to income taxes in income tax expense. We are subject to tax in the United States, California, and certain other jurisdictions. We are subject to examination by tax authorities for the years including and after 2012 for the United States, California and for other jurisdictions. Although timing or resolution value of any examination is highly uncertain, we believe it is reasonably possible that the unrecognized tax benefits would not materially change in the next twelve months.

In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred tax assets and liabilities by requiring the deferred tax assets and liabilities be presented as non-current on the balance sheet. ASU 2015-17 is effective for reporting periods beginning after December 15, 2016 and is applied either prospectively or retrospectively. Early adoption is permitted. We early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of ASU 2015-17 did not have a material effect on our financial statements as of December 31, 2015. No prior periods were retrospectively adjusted.