| 8. | INCOME TAXES |
The provision for (benefit from) income taxes consists of the following:
| Year ended December 31, | 2017 | 2016 | 2015 | |||||||||
| Current: | ||||||||||||
| Federal | $ | 200,000 | — | $ | 82,000 | |||||||
| Prior year under accrual | — | — | 143,000 | |||||||||
| State | 126,000 | ($ | 51,000 | ) | 107,000 | |||||||
| Deferred: | ||||||||||||
| Federal | 2,244,000 | (2,015,000 | ) | 2,659,000 | ||||||||
| State/Local | 140,000 | — | — | |||||||||
| $ | 2,710,000 | ($ | 2,066,000 | ) | $ | 2,991,000 | ||||||
The difference between the income tax provision computed at the federal statutory rate and the actual tax provision is accounted for as follows:
| December 31, | 2017 | 2016 | 2015 | |||||||||
| Taxes computed at the federal statutory rate | $ | 2,882,000 | ($ | 1,929,000 | ) | $ | 2,722,000 | |||||
| State income tax, net | 176,000 | (34,000 | ) | 70,000 | ||||||||
| Prior year true-up | 2,000 | (3,000 | ) | 325,000 | ||||||||
| Research and development tax credit | (235,000 | ) | (246,000 | ) | (177,000 | ) | ||||||
| Change in Federal Statutory Rate | (207,000 | ) | — | — | ||||||||
| Permanent differences | 92,000 | 146,000 | 51,000 | |||||||||
| Provision for (benefit from) income taxes | $ | 2,710,000 | ($ | 2,066,000 | ) | $ | 2,991,000 | |||||
The components of deferred income tax assets and liabilities are as follows:
| Deferred Tax Assets: | 2017 | 2016 | ||||||
| Interest rate swap | $ | 1,000 | $ | 9,000 | ||||
| Allowance for doubtful accounts | 32,000 | 187,000 | ||||||
| Credit carryforwards | 1,986,000 | 1,548,000 | ||||||
| Deferred rent | 126,000 | 221,000 | ||||||
| Stock options | 102,000 | 295,000 | ||||||
| Restricted stock | 90,000 | 47,000 | ||||||
| Net operating loss carryforward | 750,000 | 5,057,000 | ||||||
| Deferred Tax Assets | 3,087,000 | 7,364,000 | ||||||
| Deferred Tax Liabilities: | ||||||||
| Prepaid expenses | 141,000 | 130,000 | ||||||
| Revenue recognition | 1,036,000 | 2,807,000 | ||||||
| Property and equipment | 276,000 | 475,000 | ||||||
| State taxes | 67,000 | — | ||||||
| Deferred tax liabilities | 1,520,000 | 3,412,000 | ||||||
| Net Deferred Tax Assets | $ | 1,567,000 | $ | 3,952,000 | ||||
The Company recognized, for income tax purposes, a tax benefit of $33,000 for the year ended December 31, 2015 for compensation expense related to its stock option plan for which no corresponding charge to operations has been recorded. Such amounts have been added to additional paid-in capital in those years.