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Table of Contents
SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
For the years ended December 31, 2008, 2007 and 2006, there were 127,301, 131,436 and 152,678 shares, respectively, issued through the Purchase Plan.
As of December 31, 2008, we had 1,649,427 shares of common stock reserved for future issuance under the 2000 Purchase Plan should employees purchase
them.
Note 9. Income Taxes
The components of our income (loss) before income taxes are as follows (in thousands):
Years Ended December 31,
2008 2007 2006
United States $ (19,324) $ (22,143) $ (9,514)
Foreign 757 1,445 1,766
Total $ (18,567) $ (20,698) $ (7,748)
The provision for income taxes consisted of the following (in thousands):
Years Ended December 31,
2008 2007 2006
Current:
Federal $ (19) $ — $ —
State 174 15 —
Foreign 574 592 395
Total current 729 607 395
Deferred:
Foreign (190) 64 92
Total provision for income taxes $ 539 $ 671 $ 487
The reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows (in thousands):
Years Ended December 31,
2008 2007 2006
Provision at federal statutory rate $ (6,498) $ (7,243) $ (2,712)
State taxes 113 10 —
Permanent differences/other 50 46 35
Stock-based compensation 192 46 (4)
Federal valuation allowance (utilized)/provided 6,566 7,662 3,089
Foreign rate differential 116 150 79
Provision for income taxes $ 539 $ 671 $ 487
75
Source: SUPPORTSOFT INC, 10-K, March 11, 2009