Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Loss before Income Taxes
The Company reported a loss before income taxes consisting of the following (in thousands):
 
Years Ended December 31,
 
2018
 
2017
Domestic
$
(10,633
)
 
$
(13,840
)
Foreign
(16,433
)
 
(2,704
)
Loss before income taxes
$
(27,066
)
 
$
(16,544
)
Schedule of Components of Provision (Benefit) for Income Taxes
The components of the (benefit) provision for income taxes are as follows (in thousands):
 
Years Ended December 31,
 
2018
 
2017
Current:
 
 
 
Federal
$
—

 
$
—

State
—

 
—

Foreign
(148
)
 
1,103

Total current
(148
)
 
1,103

Deferred:
 
 
 
Federal
—

 
—

State
—

 
—

Foreign
(164
)
 
—

Total deferred
(164
)
 
—

(Benefit) provision for income taxes
$
(312
)
 
$
1,103

Schedule of Reconciliation of Effective Tax Rate
The reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows:
 
2018
 
2017
Federal income tax rate
21.0
 %
 
34.0
 %
Tax Reform - Change in enacted rate
—

 
(22.2
)
Foreign rate differential
7.4

 
(1.2
)
State tax, net of federal benefit
0.7

 
2.4

US tax on foreign income
(8.1
)
 
—

Share-based awards compensation
2.0

 
—

Permanent items
0.8

 
—

Other
0.5

 
1.8

Change in valuation allowance
(23.1
)
 
(21.5
)
Effective income tax rate
1.2
 %
 
(6.7
)%
Schedule of Components of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities related to net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income taxes purposes were as follows (in thousands):
 
Years Ended December 31,
 
2018
 
2017
Deferred tax assets:
 
 
 
Net operating loss carryforwards
$
27,879

 
$
22,170

Share-based awards compensation
2,359

 
1,280

Accrued compensation
304


350

Depreciation and other
125

 
89

Deferred Revenue
641

 
1,504

Total deferred tax assets
31,308

 
25,393

Deferred tax liabilities:
 
 
 
Unrealized gain on investments
(394
)
 
(143
)
Other
(98
)
 
—

Total deferred tax liabilities
(492
)
 
(143
)
Less: valuation allowance:
(30,816
)
 
(25,250
)
Net deferred tax asset
$
—

 
$
—

Schedule of Reconciliation of Unrecognized Tax Benefits Excluding Impact of Interest and Penalties
The following table sets forth a reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding the impact of interest and penalties, for the years ended December 31, 2018 and 2017 (in thousands):
Unrecognized tax benefits at December 31, 2017
$
6,451

Currency translation adjustment
(294
)
Unrecognized tax benefits at December 31, 2018
$
6,157