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, 2016

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):

	2016		2015		2014
Current:
Federal	$	—	$	—	$	—
State		22		30		27
Foreign		69		87		25
		91		117		52
Deferred:
Federal		60		61		60
State		—		—		—
Foreign		—		—		—
		60		61		60
	$	151	$	178	$	112

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:

	2016				2015				2014
Statutory regular federal income tax rate		(34.0	)	%		(34.0	)	%		(34.0	)	%
Change in valuation allowance		40.4		%		40.2		%		37.4		%
State tax benefit (net of federal benefit)		(3.0	)	%		(3.1	)	%		(3.3	)	%
Research credits		(3.4	)	%		(3.1	)	%		(1.9	)	%
Foreign amounts with no tax benefit		0.2		%		0.1		%		(0.1	)	%
Non-deductible expenses		0.6		%		0.4		%		1.0		%
Effect of change in rate		0.5		%		0.9		%		2.3		%
Other		(0.2	)	%		(0.5	)	%		(0.8	)	%
Total		1.1		%		0.9		%		0.6		%

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):

	2016			2015
Capitalized intangible assets for tax purposes	$	47		$	104
Reserves not currently deductible		2,117			2,527
Deferred revenue		8			8
Stock options		4,966			4,072
State taxes		9			9
Income tax credits		2,379			2,471
Inventory		940			905
Property and equipment		201			345
Other comprehensive income		252			320
Unrealized gain on foreign currency		136			136
Net operating losses		43,687			38,753
Total deferred tax assets		54,742			49,650
Valuation allowance		(54,310	)		(49,514	)
Net deferred tax assets		432			136
Capitalized intangible assets		(876	)		(813	)
Other		(354	)		(61	)
Total deferred tax liabilities		(1,230	)		(874	)
Net deferred tax liabilities	$	(798	)	$	(738	)

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, 2016 (in thousands):

Balance at January 1, 2016	$	568
Additions for tax positions related to the prior year		—
Lapse of statute of limitations		—
Balance at December 31, 2016	$	568