8. Income Taxes

The components of the Company’s loss before income tax provision for the years ended December 31, 2016, 2015 and 2014 are as follows:

	Years Ended
	December 31,
	2016			2015			2014
Loss before provision for income taxes:
Domestic	$	(14,412	)	$	(41,611	)	$	(22,248	)
Foreign	(6,419		)	(1,136		)	(898		)

Total loss before provision for income taxes	$	(20,831	)	$	(42,747	)	$	(23,146	)

The Company’s income tax provision, which consists of minimum U.S. state and local taxes and taxes from foreign jurisdictions, consists of the following:

	Years Ended
	December 31,
	2016			2015			2014
Provision for current income taxes:
U.S. federal	$	—		$	—		$	—
U.S. state and local	(37		)	361			328
Foreign	245			183			15

Total provision for current income taxes	208			544			343

Benefit for deferred income taxes:
U.S. federal	—			—			—
U.S. state and local	—			—			—
Foreign	(92		)	(61		)	—

Total benefit for deferred income taxes	(92		)	(61		)	—

Total provision for income taxes	$	116		$	483		$	343

A reconciliation between the U.S. federal statutory income tax rate to the effective tax rate, by applying such rates to loss before income tax provision, for the years ended December 31, 2016, 2015 and 2014 are as follows:

	Years Ended
	December 31,
	2016		2015		2014

U.S. federal statutory income tax rate	(34.00	)%	(34.00	)%	(34.00	)%
State income tax rate, net of U.S. federal tax benefit	(0.18	)	0.85		0.94
Stock-based compensation expense	1.40		1.06		2.70
Acquisition related costs	5.77		—		—
Mark-to-market expense	2.04		—		—
Change in income tax rates	3.04		0.35		1.73
Change in deferred tax asset valuation	21.12		14.91		28.71
Goodwill impairment charge	—		16.61		—
Other	1.37		1.35		1.40

Effective tax rate	0.56	%	1.13	%	1.48	%

Significant components of the Company’s deferred tax assets and liabilities are summarized as follows:

	December 31,
	2016			2015
Deferred tax assets:
Net operating losses and tax credits	$	46,336		$	43,990
Stock-based compensation expense	3,883			3,579
Deferred rent	1,483			1,148
Depreciation and amortization expense	61			631
Accrued expenses	192			234
Allowance for doubtful accounts	1			19
Other	95			157

Total deferred tax assets before valuation allowance	52,051			49,758
Less: valuation allowance	(50,211		)	(45,932		)

Total deferred tax assets, net of valuation allowance	1,840			3,826


Deferred tax liabilities:
Intangible assets	(2,277		)	(4,324		)
Depreciation and amortization expense	—			—
Other	(10		)	(12		)

Total deferred tax liabilities	(2,287		)	(4,336		)


Total deferred tax liabilities, net	$	(447	)	$	(510	)

For financial and tax reporting purposes, the Company incurred net operating losses in each period since its inception and, therefore, a significant portion of the deferred tax assets recognized relate to such net operating losses. In determining whether the Company may realize the benefits from these deferred tax assets, the Company considers all available objective and subjective evidence, both positive and negative. Based on the weight of such evidence, a valuation allowance on a jurisdiction by jurisdiction basis is necessary for some portion, or all, of the deferred tax assets since the Company cannot be assured that, more likely than not, such amounts will be realized. Based on the available objective and subjective evidence, including the Company’s history of net operating losses, management believes it is more likely than not that the deferred tax assets will not be fully realizable at December 31, 2016 and 2015. Accordingly, the Company provided a valuation allowance on substantially all of its deferred tax asset balance to reflect the uncertainty regarding the realizability of these assets for the periods presented.

For the year ended December 31, 2016, the Company’s valuation allowance has increased by $4,279 to $50,211 compared to December 31, 2015.

As of December 31, 2016, the Company has U.S. federal and state net operating loss carry-forwards of approximately $117,308 and $65,659, respectively, and foreign net operating loss carry-forwards of $8,153, $6,787 and $99 related to its international subsidiaries in the United Kingdom, Germany and Brazil respectively, which are available to reduce future taxable income in those jurisdictions. The U.S. federal net operating losses will expire in various years beginning in 2027 through 2036. The Company’ foreign net operating loss carry-forwards can be carried forward without limitation in each respective country. The U.S. federal net operating losses includes acquired tax loss carry-forwards of Transpera, Inc. (“Transpera”) and ScanScout, Inc. (“ScanScout”), which are subject to limitation on future utilization under Section 382 of the Internal Revenue Code of 1986 (“Section 382”). Section 382 imposes limitations on the availability of a company’s net operating losses after a more than 50 percentage point ownership change occurs. It is estimated that the effect of Section 382 will generally limit the amount of the net operating loss carry-forwards of Transpera and ScanScout that are available to offset future taxable income to approximately $160 and $2,220, respectively, annually. The overall determination of the annual loss limitation is subject to interpretation, and, therefore, the annual loss limitation could be subject to change.

Included in the U.S. federal and state net operating loss carry-forwards, but not included in the table above, is approximately $3,885 of net operating losses from excess tax deductions attributable to equity compensation. The tax benefit of the excess tax deduction attributable to stock-based compensation expense will be recorded to additional paid-in-capital when it reduces U.S. federal income taxes payable.

The Company did not record any amounts related to uncertain tax positions or tax contingencies at December 31, 2016 and 2015. As of December 31, 2016 and 2015, the primary tax jurisdictions in which the Company is subject to tax were the U.S. federal and state jurisdictions (primarily the State and City of New York), Australia, Canada, Singapore, Malaysia, New Zealand, Brazil and United Kingdom. Since the Company is in a net operating loss position, the Company is generally subject to U.S. federal and state income tax examinations by tax authorities for all years for which a net operating loss carry-forward is available. The Company’s open tax years extend back to 2005. In the event that the Company concludes that it is subject to interest or penalties arising from uncertain tax positions, the Company will record interest and penalties as a component of provision for income taxes. No amounts of interest or penalties were recognized in the consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014.