8.	Income Taxes

The Company recognizes deferred tax assets and liabilities for estimated future tax consequences of events that have been recognized in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is established if, based on management’s review of both positive and negative evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. Because of its historical losses from operations, the Company established a valuation allowance for the net deferred tax assets. The Company recorded an income tax benefit of $41,000 for the three months ended September 30, 2015 and income tax expense of $226,000 for the three months ended September 30, 2014. The Company recorded $4,000 and $260,000 of federal alternative minimum tax expense for the three months ended September 30, 2015 and 2014, respectively, as a result of taxable income for the tax year ended December 31, 2014, which was primarily attributable to revenue recognition of the $25.0 million FDA approval milestone. Earned foreign research and development tax credits totaled $45,000 and $34,000 for the three months ended September 30, 2015 and 2014, respectively.

For the three months ended September 30, 2015 and 2014, the Company had no significant unrecognized tax benefits. At September 30, 2015 and June 30, 2015, the Company had no accrued penalties or interest related to uncertain tax positions.