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 deferred tax assets
As of December 31, 2018 and 2017, the Company established valuation allowances equal to the full amount of its deferred tax assets, net of certain tax liabilities, due to the uncertainties regarding the realization of the deferred tax assets in future years.
The following table summarizes the significant components of the Company's deferred tax assets and liabilities as of December 31, 2018 and 2017:
 
2018
 
2017
Deferred tax assets:
 
 
 
Net operating loss carryforwards
$
1,608

 
$
3,593

Business credit carryforwards
100

 
100

Intangible assets
1,002

 
1,113

Stock-based compensation
4,535

 
575

Inventory reserve

 
997

Deferred rent
372

 
299

Other
129

 
127

 
7,746

 
6,804

Deferred tax liabilities:
 
 
 
Property and equipment
(687
)
 
(331
)
CanX intangible assets
(1,064
)
 
(1,074
)
 
(1,751
)
 
(1,405
)
Valuation allowance
(7,060
)
 
(6,474
)
Net deferred tax liabilities
$
(1,065
)
 
$
(1,075
)
Schedule of effective income tax rate reconciliation
 
2018
 
2017
 
Amount
 
% of pretax income (loss)
 
Amount
 
% of pretax income (loss)
Income tax expense (benefit) at statutory rate
$
2,120

 
21.0
 %
 
$
(1,829
)
 
(34.0
)%
State taxes
(61
)
 
(0.6
)%
 
(37
)
 
(0.7
)%
Effect of change in future tax rate on deferred tax balances

 
 %
 
2,226

 
41.4
 %
Stock-based compensation
(2,680
)
 
(26.6
)%
 
685

 
12.7
 %
Change in derivative liability

 
 %
 
(85
)
 
(1.6
)%
Non-deductible interest on convertible notes
11

 
0.1
 %
 
135

 
2.5
 %
Royalty buyout

 
 %
 
827

 
15.4
 %
Other permanent differences
117

 
1.2
 %
 
90

 
1.7
 %
Change in valuation allowance
586

 
5.8
 %
 
(2,494
)
 
(46.4
)%
Income tax expense (benefit)
$
93

 
0.9
 %
 
$
(482
)
 
(9.0
)%
Reconciliation of income tax provision
The income tax expense (benefit) for the years ended December 31, 2018 and 2017 was comprised of the following:
 
2018
 
2017
Current tax expense before benefit of NOL
$
3,327

 
$

Benefit of NOL carryforwards utilized
(3,224
)
 

Deferred tax benefit
(10
)
 
(482
)
Income tax expense (benefit)
$
93

 
$
(482
)