INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of (benefit from) provision for income taxes

The (benefit) provision for income taxes consists of the following (in thousands):

	2017		2016		2015
Current:
Federal	$	384	$	1,087	$	(1,679)
State		(1,813)		140		160
	$	(1,429)	$	1,227	$	(1,519)
Deferred:
Federal	$	—	$	16,291	$	(39,459)
State		—		6,700		(6,521)
		—		22,991		(45,980)
Total (benefit) provision for income taxes	$	(1,429)	$	24,218	$	(47,499)

Schedule of reconciliation of income taxes at the statutory federal income tax rate to the actual tax rate

A reconciliation of income taxes at the statutory federal income tax rate to the actual tax rate included in the statements of operations is as follows (in thousands):

	2017		2016		2015
Tax at federal statutory rate	$	(36,374)	$	(22,580)	$	(43,133)
State tax, net of federal benefit		71		(748)		(2,615)
Research credit		(41)		(902)		(438)
Stock based compensation		159		1,435		848
Non-deductible meals and entertainment		973		955		729
Non-deductible other expense		6,508		1,426		846
Change in valuation allowance		1,326		44,632		(3,736)
Uncertain tax provisions		(1,611)		—		—
Tax rate changes		27,560		—		—
Total	$	(1,429)	$	24,218	$	(47,499)

Schedule of significant components of the Company's deferred tax assets

Significant components of the Company’s deferred tax assets are as follows (in thousands):

	2017		2016
Deferred tax assets:
Net operating losses	$	16,391	$	6,810
Tax credit carryforwards		1,860		1,452
Intangibles		38,509		46,364
Stock-based compensation		1,505		4,992
Reserves and other accruals not currently deductible		12,094		17,294
Total deferred tax assets		70,359		76,912
Valuation allowance for deferred tax assets		(54,224)		(45,206)
	$	16,135	$	31,706
Deferred tax liabilities
Convertible debt	$	(16,135)	$	(31,706)
Net deferred tax asset (liability)	$	-	$	-

Summary of the activity related to the entity's unrecognized tax benefits

The following table summarizes the activity related to our unrecognized tax benefits for the three years ended December 31, 2017 (in thousands):

Unrecognized tax benefits—January 1, 2015	$	5,179
Gross increases—current year tax positions		454
Gross increases—prior year tax positions		53
Unrecognized tax benefits—December 31, 2015		5,686
Gross increases—current year tax positions		240
Gross increases—prior year tax positions		8,761
Unrecognized tax benefits—December 31, 2016		14,687
Gross increases—current year tax positions		3,423
Gross increases—prior year tax positions		(966)
Unrecognized tax benefits— December 31, 2017	$	17,144