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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 14. Income Taxes No provision for income taxes was recorded for the years ended December 31, 2016, 2015 and 2014. The Company has incurred net operating losses for all the periods presented. The Company has not reflected any benefit of such net operating loss carryforwards in the consolidated financial statements. The Company has established a full valuation allowance against its deferred tax assets due to the uncertainty surrounding the realization of such assets. The following table presents domestic and foreign components of net loss for the periods presented (in thousands):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Domestic |  | $ | (34,977 | ) |  | $ | (10,483 | ) |  | $ | (9,515 | )
Foreign |  |  | (2,200 | ) |  |  | (4,375 | ) |  |  | (1,557 | )
Total net loss |  | $ | (37,177 | ) |  | $ | (14,858 | ) |  | $ | (11,072 | )
The effective tax rate of the provision for income taxes differs from the federal statutory rate as follows:
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Federal statutory income tax rate |  |  | 34.0 | % |  |  | 34.0 | % |  |  | 34.0 | %
State taxes, net of federal benefit |  |  | 6.5 |  |  |  | (2.7 | ) |  |  | 4.1 |
Warrant revaluation |  |  | (4.3 | ) |  |  | (0.2 | ) |  |  | (5.5 | )
Foreign tax rate difference |  |  | (1.6 | ) |  |  | (11.8 | ) |  |  | (6.8 | )
Change in valuation allowance |  |  | (36.0 | ) |  |  | (19.9 | ) |  |  | (26.5 | )
Other |  |  | 1.4 |  |  |  | 0.6 |  |  |  | 0.7 |
Provision for income taxes |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | %
The components of the deferred tax assets are as follows (in thousands):
|  | December 31, |
|  | 2016 |  |  | 2015 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 21,501 |  |  | $ | 9,513 |
Depreciation and amortization |  |  | 419 |  |  |  | 480 |
Accruals/other |  |  | 908 |  |  |  | 293 |
Research and development credits & foreign credits |  |  | 1,143 |  |  |  | 285 |
Total deferred tax assets |  |  | 23,971 |  |  |  | 10,571 |
Valuation allowance |  |  | (23,971 | ) |  |  | (10,571 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
Realization of the deferred tax assets is dependent upon future taxable income, if any, the amount and timing of which are uncertain. The Company has established a valuation allowance to offset deferred tax assets as of December 31, 2016 and 2015 due to the uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets. The valuation allowance increased by approximately $13.4 million, $3.0 million and $2.9 million during the year ended December 31, 2016, 2015 and 2014, respectively. The increase in the valuation allowance is mainly related to the increase in net operating loss carryforwards incurred during the respective taxable years. At December 31, 2016, the Company had net operating loss carryforwards for federal income tax purposes of approximately $48.0 million which are available to offset future taxable income, if any, through 2033 and net operating loss carryforwards for state income tax purposes of approximately $37.7 million which are available to offset future taxable income, if any, through 2033. At December 31, 2016 the Company also had accumulated Australian tax losses of $9.2 million available for carry forward against future earnings which, under relevant tax laws, do not expire but may not be available under certain circumstances. As of December 31, 2016, the Company also had $1.1 million of federal and $0.6 million of state research and development tax credit carryforwards available to reduce future income taxes. The federal research and development tax credits will begin to expire in 2035, if not utilized. The state research and development tax credits have no expiration date. Federal and state laws impose substantial restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an ownership change for tax purposes, as defined in Section 382 of the Internal Revenue Code. As a result of such ownership changes, the Company’s ability to realize the potential future benefit of tax losses and tax credits that existed at the time of the ownership change may be significantly reduced. The Company’s deferred tax asset and related valuation allowance would be reduced as a result. It is the Company’s policy to include penalties and interest expense related to income taxes as a component of other expense, as necessary. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Balance at beginning of year |  | $ | 805 |  |  | $ | — |  |  | $ | — |
Additions based on tax positions related to in prior years |  |  | 707 |  |  |  | 690 |  |  |  | — |
Additions based on tax positions related to current year |  |  | 619 |  |  |  | 115 |  |  |  | — |
Balance at end of year |  | $ | 2,131 |  |  | $ | 805 |  |  | $ | — |
The Company does not expect that its uncertain tax positions will materially change in the next twelve months. The reversal of the uncertain tax benefits would not impact the Company’s effective tax rate as the Company continues to maintain a full valuation allowance against its deferred tax assets. The Company files income tax returns in the United States federal jurisdiction, the State of California and Australia. The Company is not currently under examination by income tax authorities in federal, state or other jurisdictions. The Company’s tax returns for 2012 through 2016 remain open for examination due to the carryover of unused net operating losses and tax credits.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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