XML 31 R21.htm IDEA: XBRL DOCUMENT v3.4.0.3
INCOME TAXES
3 Months Ended
Mar. 31, 2016
INCOME TAXES  
INCOME TAXES

15. INCOME TAXES

 

For the three months ended March 31, 2016 and 2015, the Company recorded a provision for taxes of $16,000 and $6,000, respectively. The provision for income taxes for both the three months ended March 31, 2016 and 2015 was primarily comprised of state taxes during the period.

 

The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on the Company's ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. The Company weighed both positive and negative evidence and determined that there is a continued need for a full valuation allowance on its deferred tax assets in the United States as of March 31, 2016. Should the Company determine that it would be able to realize its remaining deferred tax assets in the foreseeable future, an adjustment to its remaining deferred tax assets would cause a material increase to income in the period such determination is made.

 

As of March 31, 2016, the Company’s only unrecognized tax benefit of $47,000 is related to California research and development activities.  We do not expect to have any other significant changes to unrecognized tax benefits through the end of the fiscal year. Because of our history of tax losses, certain tax years remain open to tax audit. The Company’s policy is to recognize interest and penalties related to uncertain tax positions (if any) as a component of the income tax provision.