INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of income taxes by jurisdiction

The benefit from income taxes by jurisdiction consist of the following for the years ended December 31, 2016 and 2017:



	Year Ended December 31, 2016			Year Ended December 31, 2017
U.S. federal
Current	$	—		$	—
Deferred	—			—
Total U.S. federal	—			—
U.S. state and local
Current	1,000			1,000
Deferred	—			—
Total U.S. state and local	1,000			1,000
Foreign
Current	—			—
Deferred	(23,000		)	(15,000		)
Total foreign	(23,000		)	(15,000		)
Benefit from income taxes	$	(22,000	)	$	(14,000	)

Schedule of income taxes differ from the amounts computed by applying the U.S. federal income tax rate to pretax income (loss) before income taxes

ncome taxes differ from the amounts computed by applying the U.S. federal income tax rate to pretax income (loss) before income taxes as a result of the following for the years ended December 31, 2016 and 2017:



	Year ended December 31, 2016			Year ended December 31, 2017
Expected income tax benefit	$	(5,191,000	)	$	(7,357,000	)
State income tax (benefit), net of federal benefit	(1,022,000		)	(1,176,000		)
Valuation allowance	6,219,000			7,398,000
Permanent differences:
Stock options	173,000			95,000
Warrants	—			914,000
Transaction costs	31,000			—
Research & development credit	(267,000		)	(263,000		)
Adjustment to deferred taxes	(12,000		)	267,000
Foreign rate differential	28,000			19,000
Other	19,000			89,000
Provision for (benefit from) for income taxes	$	(22,000	)	$	(14,000	)

Schedule of components of deferred income tax

Deferred income taxes consisted of the following as of December 31, 2016 and 2017:



	Year ended December 31, 2016			Year ended December 31, 2017
U.S. federal and state deferred tax assets—long term:
Accrued payroll	$	525,000		$	376,000
Accrued expenses	—			21,000
Fixed assets	80,000			111,000
Intangibles	702,000			457,000
Research & development credit	1,257,000			1,464,000
Net operating loss	11,515,000			13,204,000
Stock compensation	772,000			539,000
New jobs credit	7,000			8,000
Total long-term assets	14,858,000			16,180,000
Total deferred tax assets	14,858,000			16,180,000
U.S. federal and state deferred tax liabilities—long term:
Fixed assets	—			—
Total deferred tax liabilities	—			—
Net deferred tax assets - long term	14,858,000			16,180,000
Less: Valuation allowance	(14,858,000		)	(16,180,000		)
Net deferred tax assets	$	—		$	—

Foreign deferred tax assets—long term:
Net operating loss	$	16,000		$	12,000
Total foreign deferred tax assets	16,000			12,000
Foreign deferred tax liabilities—long term:
Intangibles	(32,000		)	(13,000		)
Total foreign deferred tax liabilities	(32,000		)	(13,000		)
Net foreign deferred tax liabilities	$	(16,000	)	$	(1,000	)