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Income Taxes
 3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

For the three months ended March 31, 2017, the Company recorded income tax benefit of $544,000, or 31.4% of loss before taxes. For the three months ended March 31, 2016, the Company recorded income tax benefit of $232,000, or 41.9% of loss before taxes. The income tax benefit for the three months ended March 31, 2017 and 2016 is comprised of federal and state taxes. The primary differences between the Company’s March 31, 2017 and 2016 effective tax rates and the statutory federal rate are expenses related to stock-based compensation and nondeductible meals and entertainment. The Company reassesses its effective rate each reporting period and adjusts the annual effective rate if deemed necessary, based on projected annual taxable income (loss). If the Company incurs additional losses, the Company may need to establish a valuation allowance on the deferred tax assets that would result from those losses. Such valuation allowance would have the effect of no longer recording an income tax benefit on those losses.

 

As of March 31, 2017 and December 31, 2016, the Company had unrecognized tax benefits totaling $554,000, including interest, which relates to state nexus issues. The amount of the unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods is $554,000. Due to the current statute of limitations regarding the unrecognized tax benefits, the unrecognized tax benefits and associated interest is not expected to change significantly in 2017.