Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets (liabilities) are as follows:


(in thousands)	December 31,
	2014			2013
Accounts receivable	$	233		$	58
Inventories		1,847			473
Accrued expenses		818			825
Depreciation		(5	)		40
Intangible assets		(11,232	)		(5,320	)
Stock options		1,339			1,015
Deferred revenue		22			46
Other		5			6
Net operating loss carry forwards		11,860			9,316

Net deferred tax asset		4,887			6,459
Valuation allowance		(4,887	)		(6,459	)

	$	—		$	—

Reconciliation of Tax Computed at Statutory Rate to Income Tax Expenses

The following is a reconciliation of tax computed at the statutory federal rate to the income tax expense in the statements of operations for the years ended December 31, 2014, 2013 and 2012:


	December 31,
(in thousands)	2014						2013						2012
	Amount			%			Amount			%			Amount			%
Tax benefit at statutory federal rate	$	(3,988	)		(34.0	)	$	(5,719	)		(34.0	)	$	(2,916	)		(34.0	)
Deferred state tax benefit		(383	)		(3.3	)		(258	)		(1.5	)		(618	)		(7.2	)
Change in valuation allowance		4,982			42.5			(10,446	)		(62.1	)		2,810			32.8
Tax benefit of acquisition		(6,550	)		(55.8	)		—			—			—			—
Goodwill impairment		—			—			—			—			676			7.9
Adjustment to net operating loss carryforwards		(120	)		(1.0	)		13,828			82.2			41			0.5
Non-deductible expenses		160			1.4			2,595			15.4			7			0.0
Impact of rate change		(651	)		(5.6	)		—			—			—			—

Income tax benefit	$	(6,550	)		(55.8	)	$	—			—		$	—			—