Note 7—Income Taxes

The following table sets forth the Company’s provision for income taxes, along with the corresponding effective tax rates, for the periods presented:


	Three Months Ended						Six Months Ended
	June 30,			July 1,			June 30,				July 1,
	2018			2017			2018				2017
	(in thousands)						(in thousands)
Provision for income taxes	$	-		$	-		$	-		$	-
Effective tax rate		-	%		-	%		-	%		-	%

The Company evaluates whether a valuation allowance should be established against its deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. In making such judgments, significant weight is given to evidence that can be objectively verified. Due to uncertainty of future utilization, the Company has provided a full valuation allowance as of March 31, 2018 and December 30, 2017. Accordingly, no benefit has been recognized for net deferred tax assets. The Company’s effective tax rate differs from the federal statutory tax rate of 21% and 34% for the six months ended June 30, 2018 and July 1, 2017, respectively, due to providing the full valuation allowance against net deferred tax assets.

The Company did not have any unrecognized tax benefits as of June 30, 2018 and December 30, 2017.