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, 2018

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):

	2018			2017			2016
Current:
Federal	$	—		$	—		$	—
State		14			19			22
Foreign		90			93			69
		104			112			91
Deferred:
Federal		(41	)		(694	)		60
State		—			—			—
Foreign		—			—			—
		(41	)		(694	)		60
	$	63		$	(582	)	$	151

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:

	2018				2017				2016
Statutory regular federal income tax rate		(21.0	)	%		(34.0	)	%		(34.0	)	%
Change in valuation allowance		28.6		%		(90.6	)	%		40.4		%
State tax benefit (net of federal benefit)		(3.1	)	%		(3.2	)	%		(3.0	)	%
Research credits		(1.7	)	%		(1.7	)	%		(3.4	)	%
Foreign amounts with no tax benefit		—		%		—		%		0.2		%
Non-deductible expenses		0.3		%		1.0		%		0.6		%
Effect of change in rate from federal Tax Reform		0.5		%		127.1		%		0.5		%
Other		(3.3	)	%		(2.0	)	%		(0.2	)	%
Total		0.3		%		(3.4	)	%		1.1		%

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):

	2018			2017
Capitalized intangible assets for tax purposes	$	(42	)	$	(21	)
Reserves not currently deductible		1,666			1,130
Deferred revenue		38			5
Stock options		4,153			3,600
State taxes		5			6
Income tax credits		3,820			2,640
Inventory		549			495
Property and equipment		126			165
Other comprehensive income		120			—
Unrealized gain on foreign currency		85			84
Net operating losses		37,205			33,451
Total deferred tax assets		47,725			41,555
Valuation allowance		(46,967	)		(40,866	)
Net deferred tax assets		758			689
Capitalized intangible assets		(629	)		(608	)
Other		(206	)		(185	)
Total deferred tax liabilities		(835	)		(793	)
Net deferred tax liabilities	$	(77	)	$	(104	)

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, 2018 (in thousands):

Balance at January 1, 2018	$	568
Additions for tax positions related to the prior year		—
Lapse of statute of limitations		—
Balance at December 31, 2018	$	568