11.	Income Tax

Due to the current operating losses, the Company recorded zero income tax expense during the three and nine months ended September 30, 2016 and 2015, respectively. There was no change in the income tax provision during the three and nine months ended September 30, 2016, as compared to the same periods during 2015. The effective tax rate during the three and nine months ended September 30, 2016, as compared to the same periods during 2015, remained the same at approximately 37%. During these periods, the Company’s activities were limited to U.S. federal and state tax jurisdictions, as it does not have any foreign operations.

Due to the Company’s history of cumulative losses, management concluded that, after considering all the available objective evidence, it is not more likely than not that all of the Company’s net deferred tax assets will be realized. Accordingly, the Company’s deferred tax assets, which includes net operating loss, or NOL, carryforwards and tax credits related primarily to research and development continue to be subject to a valuation allowance as of September 30, 2016. The Company will continue to maintain a full valuation allowance until there is sufficient evidence to support recoverability of its deferred tax assets.

The Company had unrecognized tax benefit of $889 thousand and $742 thousand at September 30, 2016 and December 31, 2015, respectively. The reversal of the uncertain tax benefits would not affect the effective tax rate to the extent that the Company continues to maintain a full valuation allowance against its deferred tax assets. Unrecognized tax benefits may change during the next 12 months for items that arise in the ordinary course of business. As of September 30, 2016, changes to the Company's uncertain tax positions in the next 12 months that are reasonably possible are not expected to have a significant impact on the Company's financial position or results of operations.

Interest and/or penalties related to income tax matters are recognized as a component of income tax expense. During the nine months ended September 30, 2016 and 2015, there were no accrued interest and penalties related to uncertain tax positions.