Income Taxes	9 Months Ended
Sep. 30, 2019
Income Taxes
Income Taxes	14. Income Taxes The provision for income taxes for the nine months ended September 30, 2019 was approximately $1.6 million, or an effective tax rate of 0.9%. The Company has reporting entities in the U.S., Canada and Norway that have incurred net operating losses in each of their respective taxing jurisdictions resulting in no current income tax expense except for approximately $0.1 million of state minimum income tax expense. Further, the Company has full valuation allowances on its U.S. and Canadian net deferred tax assets resulting in no deferred tax benefit on its net operating losses; however, it recorded a $0.1 million deferred tax benefit on its net operating loss in Norway. In the first quarter of 2019, the Company recorded a deferred expense relating to the valuation allowance in the amount of $1.6 million, or 1.0%. In the second quarter of 2019, the Company recorded minimal state income tax expense in the amount of $0.1 million, or 0.1%, and a deferred benefit relating to net operating losses in Norway in the amount of $0.2 million, or a 0.2% benefit. The Company has net deferred tax assets in each of its taxing jurisdictions. Management has evaluated both positive and negative evidence in its assessment of the realization of these net deferred tax assets including, but not limited to, the amount and timing of its forecast future taxable income and history of losses. Management has concluded that it is more likely than not that its net deferred tax assets will not be realized in the U.S. and Canada. Accordingly, the Company maintains a full valuation allowance against substantially all of its net deferred tax assets in these jurisdictions. If the Company subsequently determines that it will be able to realize some portion or all of its deferred tax assets, then an adjustment to will be made to the valuation allowance to recognize those deferred tax assets which will have the effect of increasing net income in the period such determination is made. The Company has uncertain income tax position. Management has identified certain uncertain income tax positions and evaluated them under the recognition and measurement criteria specified in ASC 740, Accounting for Income Taxes. Based on this analysis Management has concluded that a tax reserve is required. Accordingly, the Company has established a tax reserve of $0.1 million on these positions. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. The Company is subject to U.S. federal tax authority and U.S. state tax authority examinations for all years with the net operating loss and credit carryforwards.

14. Income Taxes

The provision for income taxes for the nine months ended September 30, 2019 was approximately $1.6 million, or an effective tax rate of 0.9%. The Company has reporting entities in the U.S., Canada and Norway that have incurred net operating losses in each of their respective taxing jurisdictions resulting in no current income tax expense except for approximately $0.1 million of state minimum income tax expense. Further, the Company has full valuation allowances on its U.S. and Canadian net deferred tax assets resulting in no deferred tax benefit on its net operating losses; however, it recorded a $0.1 million deferred tax benefit on its net operating loss in Norway.

In the first quarter of 2019, the Company recorded a deferred expense relating to the valuation allowance in the amount of $1.6 million, or 1.0%. In the second quarter of 2019, the Company recorded minimal state income tax expense in the amount of $0.1 million, or 0.1%, and a deferred benefit relating to net operating losses in Norway in the amount of $0.2 million, or a 0.2% benefit.

The Company has net deferred tax assets in each of its taxing jurisdictions. Management has evaluated both positive and negative evidence in its assessment of the realization of these net deferred tax assets including, but not limited to, the amount and timing of its forecast future taxable income and history of losses. Management has concluded that it is more likely than not that its net deferred tax assets will not be realized in the U.S. and Canada. Accordingly, the Company maintains a full valuation allowance against substantially all of its net deferred tax assets in these jurisdictions. If the Company subsequently determines that it will be able to realize some portion or all of its deferred tax assets, then an adjustment to will be made to the valuation allowance to recognize those deferred tax assets which will have the effect of increasing net income in the period such determination is made.

The Company has uncertain income tax position. Management has identified certain uncertain income tax positions and evaluated them under the recognition and measurement criteria specified in ASC 740, Accounting for Income Taxes. Based on this analysis Management has concluded that a tax reserve is required. Accordingly, the Company has established a tax reserve of $0.1 million on these positions. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. The Company is subject to U.S. federal tax authority and U.S. state tax authority examinations for all years with the net operating loss and credit carryforwards.