Income Taxes	9 Months Ended
Sep. 30, 2017
Income Taxes
Income Taxes	10. Income Taxes During the three and nine months ended September 30, 2017, the Company recorded total income tax expense of $0.2 million and $0.3 million, respectively. The Company provides testing to clinics and licenses the cloud-based software to its licensees that are based in a foreign country, which contributed to a foreign income tax expense of $62,000 and $0.2 million for the three and nine months ended September 30, 2017, respectively. State income tax expense of $0.1 million based on income was also recorded for both the three and nine months ended September 30, 2017. During the same period of the prior year, the Company recorded a foreign income tax expense of $0.1 million. The federal and state effective tax rate is approximately 37% before research and development credits and permanent adjustments including stock-based compensation and change in the fair value of warrants. Due to the Company’s history of cumulative operating losses, the Company 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, all of 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 subjected to a valuation allowance as of September 30, 2017. 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 $5.7 million and $4.3 million in unrecognized tax benefits at September 30, 2017 and December 31, 2016, 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 twelve months for items that arise in the ordinary course of business. Interest and/or penalties related to income tax matters are recognized as a component of income tax expense. As of September 30, 2017, there were no accrued interest and penalties related to uncertain tax positions.

10. Income Taxes

During the three and nine months ended September 30, 2017, the Company recorded total income tax expense of $0.2 million and $0.3 million, respectively. The Company provides testing to clinics and licenses the cloud-based software to its licensees that are based in a foreign country, which contributed to a foreign income tax expense of $62,000 and $0.2 million for the three and nine months ended September 30, 2017, respectively. State income tax expense of $0.1 million based on income was also recorded for both the three and nine months ended September 30, 2017. During the same period of the prior year, the Company recorded a foreign income tax expense of $0.1 million. The federal and state effective tax rate is approximately 37% before research and development credits and permanent adjustments including stock-based compensation and change in the fair value of warrants.

Due to the Company’s history of cumulative operating losses, the Company 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, all of 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 subjected to a valuation allowance as of September 30, 2017. 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 $5.7 million and $4.3 million in unrecognized tax benefits at September 30, 2017 and December 31, 2016, 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 twelve months for items that arise in the ordinary course of business.

Interest and/or penalties related to income tax matters are recognized as a component of income tax expense. As of September 30, 2017, there were no accrued interest and penalties related to uncertain tax positions.