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, 2014

Summary of Income Tax Current and Deferred Provision (Benefit)

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

	2014		2013			2012
Current:
Federal	$	—	$	(138	)	$	—
State		27		31			18
Foreign		25		(27	)		32
		52		(134	)		50
Deferred:
Federal		60		72			57
State		—		(118	)		12
Foreign		—		16			(8	)
		60		(30	)		61
	$	112	$	(164	)	$	111

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:

	2014				2013				2012
Statutory regular federal income tax rate		(34.0	)	%		(34.0	)	%		(34.0	)	%
Change in valuation allowance		37.4		%		27.0		%		(13.0	)	%
Tax return to prior year provision adjustments		—		%		(0.9	)	%		16.2		%
Expiration of federal net operating losses		—		%		—		%		28.2		%
Reduction of net operating loss attributes		—		%		(3.1	)	%		(3.7	)	%
State tax benefit (net of federal benefit)		(3.3	)	%		(4.2	)	%		4.1		%
Research credits		(1.9	)	%		(2.1	)	%		—
Foreign amounts with no tax benefit		(0.1	)	%		(0.2	)	%		(0.6	)	%
Non-deductible expenses		1.0		%		1.6		%		6.1		%
Effect of change in rate		2.3		%		14.2		%		—		%
Other		(0.8	)	%		0.3		%		0.5		%
Total		0.6		%		(1.4	)	%		3.8		%

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):

	2014			2013
Capitalized intangible assets for tax purposes	$	202		$	283
Reserves not currently deductible		1,871			1,702
Deferred revenue		8			8
Stock options		2,911			2,565
State taxes		8			7
Income tax credits		2,200			1,583
Inventory		1,225			871
Property and equipment		280			376
Other comprehensive income		222			109
Unrealized gain on foreign currency		136			142
Net operating losses		33,140			28,058
Total deferred tax assets		42,203			35,704
Valuation allowance		(42,069	)		(35,566	)
Net deferred tax assets		134			138
Capitalized intangible assets		(752	)		(696	)
Other		(59	)		(59	)
Total deferred tax liabilities		(811	)		(755	)
Net deferred tax liabilities	$	(677	)	$	(617	)

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, 2014 (in thousands):

Balance at January 1, 2014	$	568
Additions for tax positions related to the prior year		—
Lapse of statute of limitations		—
Balance at December 31, 2014	$	568

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References + Details