XML 36 R21.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 14. INCOME TAXES Income or (loss) before income taxes for the years ended December 31, 2016, 2015 and 2014 is summarized as follows (in thousands):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
United States |  | $ | (21,753 | ) |  | $ | (13,707 | ) |  | $ | (719 | )
Foreign |  |  | (19,609 | ) |  |  | — |  |  |  | — |
|  | $ | (41,362 | ) |  | $ | (13,707 | ) |  | $ | (719 | )
The components of the provision for (benefit from) income taxes are summarized as follows (in thousands):
|  | As of December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 49 |  |  | $ | — |  |  | $ | — |
State |  |  | 11 |  |  |  | — |  |  |  | — |
Foreign |  |  | 32 |  |  |  | — |  |  |  | — |
Total Current |  |  | 92 |  |  |  | — |  |  |  | — |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (251 | ) |  |  | — |  |  |  | (1,500 | )
State |  |  | (49 | ) |  |  | — |  |  |  | — |
Foreign |  |  | (1,398 | ) |  |  | — |  |  |  | — |
Total Deferred |  |  | (1,698 | ) |  |  | — |  |  |  | (1,500 | )
Provision for (benefit from) income taxes |  | $ | (1,606 | ) |  | $ | — |  |  | $ | (1,500 | )
The Company’s actual provision for tax differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax income as a result of the following:
|  | Year Ended December, 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Federal tax at statutory rate |  |  | 34.0 | % |  |  | 34.0 | % |  |  | 34.0 | %
Stock-based compensation |  |  | -0.5 | % |  |  | -1.9 | % |  |  | -9.5 | %
Change in valuation allowance |  |  | -16.8 | % |  |  | -31.1 | % |  |  | 190.6 | %
Foreign rate differential |  |  | -1.3 | % |  |  | 0.0 | % |  |  | 0.0 | %
Preferred stock warrant revaluation |  |  | -0.2 | % |  |  | 0.0 | % |  |  | -0.7 | %
Interest expense |  |  | 0.0 | % |  |  | 0.0 | % |  |  | -5.8 | %
Contingent liability for IMX acquisition |  |  | 0.4 | % |  |  | 0.0 | % |  |  | 38.2 | %
Acquisition costs |  |  | -1.2 | % |  |  | -3.2 | % |  |  | -36.7 | %
Goodwill impairment |  |  | -10.8 | % |  |  | 0.0 | % |  |  | 0.0 | %
Other |  |  | 0.3 | % |  |  | 2.2 | % |  |  | -1.3 | %
Effective income tax rate |  |  | 3.9 | % |  |  | 0.0 | % |  |  | 208.8 | %
Deferred income tax assets and liabilities consist of the following: (in thousands):
|  | As of December 31, |
|  | 2016 |  |  | 2015 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 71,925 |  |  | $ | 65,957 |
Tax credit carryforwards |  |  | 4,947 |  |  |  | 4,533 |
Accruals |  |  | 1,274 |  |  |  | 1,125 |
Other |  |  | 1,088 |  |  |  | 698 |
Gross deferred tax assets |  |  | 79,234 |  |  |  | 72,313 |
Valuation allowance |  |  | (76,295 | ) |  |  | (70,053 | )
Total deferred tax assets |  |  | 2,939 |  |  |  | 2,260 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | 195 |  |  |  | 95 |
Purchased intangibles |  |  | (8,979 | ) |  |  | (2,355 | )
Other |  |  | (212 | ) |  |  | — |
Total deferred tax liabilities |  |  | (8,996 | ) |  |  | (2,260 | )
Net deferred tax liabilities |  | $ | (6,057 | ) |  | $ | — |
The Company assesses the realizability of its net deferred tax assets by evaluating all available evidence, both positive and negative, including (1) cumulative results of operations in recent years, (2) sources of recent losses, (3) estimates of future taxable income and (4) the length of net operating loss carryforward periods. The Company believes that based on the history of its U.S. losses and other factors, the weight of available evidence indicates that it is more likely than not that it will not be able to realize its U.S. net deferred tax assets. Accordingly, the U.S. net deferred tax assets have been offset by a full valuation allowance. The valuation allowance increased by $6.2 million and $3.7 million during the years ended December 31, 2016 and 2015, respectively. As of December 31, 2016, the Company had domestic federal net operating loss carryforwards of $198.2 million, domestic state net operating loss carryforwards of $102.1 million, and foreign net operating loss carryforwards of $2.4 million that can reduce future taxable income. The domestic federal and state net operating loss carryforwards will begin to expire in 2018 and 2017, respectively. The foreign net operating loss carryforwards can be carried forward indefinitely. As of December 31, 2016, the Company had credit carryforwards of approximately $3.9 million and $4.8 million available to reduce future taxable income, if any, for domestic federal and California state income tax purposes, respectively. The domestic federal credit carryforwards begin to expire in 2021. California credits have no expiration date. Utilization of the Company's net operating loss and credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. Based on a preliminary review of the Company's equity transactions since inception, the Company believes a portion of its net operating loss carryforwards and credit carryforwards may be limited due to equity financings which occurred in 2000, 2004, 2007, 2014 through the current period. A reconciliation of the Company’s unrecognized tax benefits is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Balance at beginning of year |  | $ | 2,431 |  |  | $ | 2,054 |  |  | $ | 2,196 |
Additions based on tax positions related to current year |  |  | 2,489 |  |  |  | 372 |  |  |  | 83 |
Additions (reductions) based on tax positions related to prior years |  |  | 332 |  |  |  | 5 |  |  |  | (225 | )
Balance at end of year |  | $ | 5,252 |  |  | $ | 2,431 |  |  | $ | 2,054 |
Approximately $2.6 million of the $5.3 million of unrecognized tax benefit as of December 31, 2016, if recognized, would impact the Company's effective tax rate. During the year ended December 31, 2015, given the Company's valuation allowance, the uncertain tax benefits would not impact the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. During the year ended December 31, 2016, the Company recognized $0.3 million of accrued interest and penalties related to unrecognized tax benefits. There were no accruals of interest expense during the years ended December 31, 2015, and 2014. The Company does not anticipate a significant change in the unrecognized tax benefits over the next twelve months. The Company files U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. Due to net operating loss and credit carryovers, the domestic federal and state income tax returns are subject to tax authority examination from inception. In the foreign jurisdictions where the Company files income tax returns, the statutes of limitations with respect to these jurisdictions vary from jurisdiction to jurisdiction and range from 4 to 6 years.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration