Loss from operations before provision for (benefit from) income taxes was comprised of the following:

	FY 2018			FY 2017
	Year Ended			Year Ended
	December 29, 2018			December 30, 2017
United States	$	(12,671	)	$	(12,800	)
Foreign		(105	)		(195	)
Total	$	(12,776	)	$	(12,995	)

	FY 2018		FY 2017
	Year Ended		Year Ended
	December 29, 2018		December 30, 2017
Current:
Federal	$	—	$	(90	)
State		26		16
Foreign		9		—
		35		(74	)
Deferred:
Federal		1		(55	)
State		1		1
		2		(54	)
Provision for (benefit from) income taxes	$	37	$	(128	)

Our effective tax rate differs from the statutory federal income tax rate as shown in the following schedule:

	FY 2018			FY 2017
	Year Ended			Year Ended
	December 29, 2018			December 30, 2017
Income tax provision at statutory rate		21.0	%		34.0	%
State income taxes, net of federal benefit		2.7	%		2.4	%
Permanent differences		(0.4	)%		(0.0	)%
Research and development credits		0.1	%		0.6	%
Change in valuation allowance		(24.8	)%		(32.5	)%
Foreign rate differential		(0.2	)%		(0.5	)%
Other		1.3	%		(3.0	)%
Effective tax rate		(0.3	)%		1.0	%

The tax effect of temporary differences and carryforwards that give rise to significant portions of the net deferred tax assets are presented below (in thousands):

	FY 2018			FY 2017
	Year Ended			Year Ended
	December 29, 2018			December 30, 2017
Net operating losses	$	8,195		$	5,757
Research and development credits		3,048			2,839
Accruals and reserves		2,357			2,031
Deferred revenue		304			341
Property and equipment		314			314
Intangible assets		452			495
Stock compensation		797			528
Other tax credits		1			1
Net deferred tax asset		15,468			12,306
Valuation allowance		(15,485	)		(12,320	)
Net deferred tax liabilities	$	(17	)	$	(14	)

Our accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of our deferred tax assets. Assessing the realizability of deferred tax assets is dependent upon several factors, including the likelihood and amount, if any, of future taxable income in relevant jurisdictions during the periods in which those temporary differences become deductible. Our management forecasts taxable income by considering all available positive and negative evidence including our history of operating income or losses and our financial plans and estimates which are used to manage the business. These assumptions require significant judgment about future taxable income. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income are reduced.

As of December 29, 2018, based on the Company's recent history of losses and its forecasted losses, management believes on the more likely than not basis that a full valuation allowance is required. Accordingly, in the fourth quarter of fiscal year 2018, the Company provided a full valuation allowance on its federal and state deferred tax assets. As of December 29, 2018, the Company had federal and state net operating loss (“NOL”) carry forwards of $32.3 million and $21.1 million respectively. The federal NOL will begin to expire in 2033 and the state NOL will begin to expire in 2021.

The Company has federal and state research credit carry forwards of approximately $1.9 million and $2.7 million, respectively, available to and development credits are subject to IRC sections 382 and 383. In the event of a change in ownership as defined by these code sections, the usage of the above mentioned NOL’s and credits may be limited.

The comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) was enacted in the United States on December 22, 2017 and includes, among other items, a reduction in the federal corporate income tax rate from 35% to 21%, certain interest expense deduction limitations and changes in the timing of certain taxable income. We are required to recognize the effect of the tax law changes in the period of enactment, such as remeasuring our U.S. deferred tax assets and liabilities and reassessing the net realizability of our deferred tax assets and liabilities.

On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) which provides guidance on accounting for the tax effects of the Tax Act. We have completed our analysis and accounting with respect the Tax Act and identified no additional changes from amounts previously recorded. However, changes in law, interpretations, and facts may result in adjustments to these amounts. Based on the Company’s net operating loss carryovers and valuation allowance, there is no impact to its consolidated financial statements as a result of the accounting for the tax effects of the Tax Act.

The Company accounts for uncertain tax positions in accordance with ASC 740, Income Taxes. ASC 740 seeks to reduce the diversity in practice associated with certain aspects of measurement and recognition in accounting for income taxes. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax provision that an entity takes or expects to take in a tax return. Additionally, ASC 740 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition. Under ASC 740, an entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. In accordance with our accounting policy, we recognize accrued interests and penalties related to unrecognized tax benefits as a component of income tax expense. There is no accrued interest and penalty during the year ended December 29, 2018.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	FY 2018		FY 2017
	Year Ended		Year Ended
	December 29, 2018		December 30, 2017
Balance at the beginning of the year	$	1,105	$	1,029
Additions based upon tax positions related to the current year		35		73
Additions based upon tax positions related to the prior year		15		3
Balance at the end of the year	$	1,155	$	1,105

If the ending balance of $1.2 million of unrecognized tax benefits at December 29, 2018 were recognized, $0 of the recognition would affect the income tax rate. The Company does not anticipate any material change in our unrecognized tax benefits over the next twelve months. The unrecognized tax benefits may change during the next year for items that arise in the ordinary course of business.

The Company files U.S. federal and state returns. The tax years 2011 to 2017 remain open in several jurisdictions, none of which have individual significance.