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Income taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] |
11. | Income taxes
Loss before provision for income taxes consists of the following:
|  | December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | U.S. dollars in thousands |
Domestic (Israel) |  | $ | 15,765 |  |  | $ | 13,388 |  |  | $ | 7,022 |
Foreign (US) |  |  | 41 |  |  |  | 1,953 |  |  |  | - |
|  | $ | 15,806 |  |  | $ | 15,341 |  |  | $ | 7,022 |
The components of income tax provision consist of the following:
|  | December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | U.S. dollars in thousands |
Current Provision for income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Domestic (Israel) |  | $ | 5 |  |  | $ | - |  |  | $ | - |
Foreign (U.S) |  |  | 166 |  |  |  | 24 |  |  |  | - |
Total current provision for income taxes |  | $ | 171 |  |  | $ | 24 |  |  | $ | - |
Previous years adjustments – foreign |  |  | 50 |  |  |  | - |  |  |  | - |
Deferred tax benefit – foreign |  |  | (5) |  |  |  | - |  |  |  | - |
Total provision for income tax |  | $ | 216 |  |  | $ | 24 |  |  | $ | - |
A reconciliation setting forth the differences between the effective tax rates of the Company and the Israeli statutory tax rate is as follows:
|  | December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Israeli tax provision at statutory rate |  |  | 25.00 | % |  |  | 26.50 | % |  |  | 26.50 | %
Foreign/state rate differences |  |  | (0.32) | % |  |  | (0.22) | % |  |  | 0.00 | %
Non-deductible stock based compensation |  |  | (1.11) | % |  |  | (4.53) | % |  |  | (2.54) | %
Previous years taxes |  |  | (0.47) | % |  |  | 0.00 | % |  |  | 0.00 | %
Differences form which deferred taxes were not recorded |  |  | 0.19 | % |  |  | 0.20 | % |  |  | 0.00 | %
Changes in valuation allowance |  |  | (18.39) | % |  |  | (22.02) | % |  |  | (5.35) | %
Adjustment of deferred taxes due to tax rate changes |  |  | (5.89) | % |  |  | 0.00 | % |  |  | 0.00 | %
Other permanent differences |  |  | (0.38) | % |  |  | (0.09) | % |  |  | (18.61) | %
|  |  | (1.37) | % |  |  | (0.16) | % |  |  | 0.00 | %
The Subsidiary is taxed under U.S. tax law. The federal corporate tax rate (progressive) is up to 35%, excluding state tax. State tax rates vary and are dependent on the state in which the Subsidiary conducts its business. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows:
|  | December 31, |
|  | 2016 |  | 2015 |
|  | U.S. dollars in thousands |
Operating loss roll forward |  | $ | 5,685 |  | $ | 3,580 |
Reserves and allowances |  |  | 1,956 |  |  | 2,185 |
Net deferred tax asset before valuation allowance |  |  | 7,641 |  |  | 5,765 |
Valuation allowance |  |  | (7,636) |  |  | (5,765) |
|  | $ | 5 |  | $ | - |
When realization of a deferred tax asset is more likely than not to occur, the benefit related to the deductible temporary differences attributable to operations is recognized as a reduction of income tax expense. Valuation allowances are provided against deferred tax assets when, based on all available evidence, it is considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. The Company cannot be certain that future Israeli taxable income will be sufficient to realize its deferred tax assets. Accordingly, a full valuation allowance has been provided against its Israeli net deferred tax assets. The Company continues to monitor the need for a valuation allowance based on the profitability of its future operations. The Parent has accumulated losses for tax purposes as of December 31, 2016, in the amount of $24,717 thousands, which may be carried forward and offset against taxable income in the future for an indefinite period. The Company files income tax returns in Israel, in the United States and in various U.S. states. The associated tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. In Israel and the United States all tax years since inception remain subject to examination by the applicable taxing authorities as of December 31, 2016. As of December 31, 2016, the Company provided a liability of $24 thousands, for uncertain tax positions related to various income tax matters from prior years, which was classified as other long-term liabilities. These uncertain tax positions would affect the Company’s effective tax rate, if recognized. The Company does not expect that the amounts of uncertain tax positions will change significantly within the next 12 months.

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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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