BIOLASE, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Income Tax Current and Deferred Provision

The following table presents the current and deferred provision for income taxes for the years ended December 31 (in thousands):

	2017			2016		2015
Current:
Federal	$	—		$	—	$	—
State		19			22		30
Foreign		93			69		87
		112			91		117
Deferred:
Federal		(694	)		60		61
State		—			—		—
Foreign		—			—		—
		(694	)		60		61
	$	(582	)	$	151	$	178

Federal Income Tax Provision Compared With Statutory Rates

The provision for income taxes differs from the amount that would result from applying the federal statutory rate as follows for the years ended December 31:

	2017				2016				2015
Statutory regular federal income tax rate		(34.0	)	%		(34.0	)	%		(34.0	)	%
Change in valuation allowance		(90.6	)	%		40.4		%		40.2		%
State tax benefit (net of federal benefit)		(3.2	)	%		(3.0	)	%		(3.1	)	%
Research credits		(1.7	)	%		(3.4	)	%		(3.1	)	%
Foreign amounts with no tax benefit		—		%		0.2		%		0.1		%
Non-deductible expenses		1.0		%		0.6		%		0.4		%
Effect of change in rate from federal Tax Reform		127.1		%		0.5		%		0.9		%
Other		(2.0	)	%		(0.2	)	%		(0.5	)	%
Total		(3.4	)	%		1.1		%		0.9		%

Summary of Net Deferred Tax Assets and Net Deferred Tax Liabilities

The components of the deferred income tax assets and liabilities as of December 31 (in thousands):

	2017			2016
Capitalized intangible assets for tax purposes	$	(21	)	$	47
Reserves not currently deductible		1,130			2,117
Deferred revenue		5			8
Stock options		3,600			4,966
State taxes		6			9
Income tax credits		2,640			2,379
Inventory		495			940
Property and equipment		165			201
Other comprehensive income		—			252
Unrealized gain on foreign currency		84			136
Net operating losses		33,451			43,687
Total deferred tax assets		41,555			54,742
Valuation allowance		(40,866	)		(54,310	)
Net deferred tax assets		689			432
Capitalized intangible assets		(608	)		(876	)
Other		(185	)		(354	)
Total deferred tax liabilities		(793	)		(1,230	)
Net deferred tax liabilities	$	(104	)	$	(798	)

Summary of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits during the year ended December 31, 2017 (in thousands):

Balance at January 1, 2017	$	568
Additions for tax positions related to the prior year		—
Lapse of statute of limitations		—
Balance at December 31, 2017	$	568