Simply, Inc. - 10-K filing on 2017-03-10

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of the income tax provision are as follows for the years ended December 31 (in thousands):

	2016			2015			2014
Current tax benefit (provision):
Federal	$	—		$	—		$	—
State		(2	)		(3	)		(3	)
Foreign		95			—			(11	)
Total		93			(3	)		(14	)
Deferred tax benefit (provision):
Federal		838			(31	)		(437	)
State		52			12			(2	)
Total		890			(19	)		(439	)
Change in valuation allowance		(890	)		19			439
Total benefit (provision) for income taxes	$	93		$	(3	)	$	(14	)

Reconciliation of Income Taxes

A reconciliation of income taxes computed by applying the federal statutory income tax rate of 34.0% to income (loss) before income taxes to the recognized income tax provision reported in the accompanying consolidated statements of operations is as follows for the years ended December 31 (in thousands):

	2016			2015			2014
U.S. federal income tax at statutory rate	$	996		$	422		$	(94	)
State taxes, net of federal benefit		32			6			(5	)
Non-deductible expenses		(8	)		(10	)		(9	)
Foreign income tax rate differential		(9	)		(443	)		(265	)
Valuation allowance		(890	)		19			439
Foreign earnings		—			—			—
Other		(28	)		3			(80	)
Total provision for income taxes	$	93		$	(3	)	$	(14	)

Significant Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities are shown below (in thousands):

	December 31,
	2016			2015
Current deferred tax assets:
Allowance for bad debts	$	34		$	34
Share-based payment expense		321			220
Allowance for obsolete inventory		30			98
Accrued compensation		63			77
Contribution carryover		—			2
Other accruals		66			73
Total		514			504
Non-current deferred tax assets:
Depreciation		16			11
Capital loss		179			179
Net operating loss		3,991			3,118
Credit carryover		51			49
Total		4,237			3,357
Valuation allowance		(4,751	)		(3,861	)
Net deferred tax assets	$	—		$	—