Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of income (loss) before income tax

The Company's pre-tax income (loss) is comprised of the following components (in thousands):



	Year Ended December 31,
	2016			2015			2014
Pre-tax income (loss):
U.S.	$	3,981		$	(33,452	)	$	(34,156	)
Canada	(2,085		)	—			—
Total pre-tax income (loss)	$	1,896		$	(33,452	)	$	(34,156	)

Schedule of components of income tax expense (benefit)

The Company's tax provision is comprised of the following components (in thousands):



	Year Ended December 31,
	2016		2015		2014
Current tax provision:
Federal	$	2	$	—	$	—
State	—		—		—
Foreign	—		—		—
Total current provision	2		—		—
Deferred tax provision:
Federal	3		—		—
State	—		—		—
Foreign	—		—		—
Total deferred provision	3		—		—
Total tax provision	$	5	$	—	$	—

Reconciliation of expected income tax benefit (expense)

A reconciliation of the expected income tax expense computed using the federal statutory income tax rate to the Company’s effective income tax rate was as follows:



	Year Ended December 31,
	2016		2015		2014
Income tax benefit computed at federal statutory tax rate	34.0	%	34.0	%	34.0	%
Impact of foreign rate differential	7.7		—		—
State taxes, net of federal benefit	18.8		5.6		5.1
NOL write off	14.4		—		—
Stock option cancellations	49.6		—		—
Transaction costs	33.6		—		—
Contingent consideration	(15.7	)	—		—
General business credits and other credits	(25.0	)	1.8		1.3
Permanent differences	5.3		2.4		(1.3	)
Change in valuation allowance	(122.4	)	(43.8	)	(39.1	)
Total	0.3	%	—	%	—	%

Summary of components of deferred tax assets

The Company’s deferred tax assets and liabilities consist of the following (in thousands):



	December 31,
	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	45,488		$	46,749
Research and development credit carryforwards	3,355			2,462
Accruals and other	2,079			1,385
Capitalized license and organization costs	61			66
Capitalized start-up costs	246			278
Depreciation	—			21
Total gross deferred tax asset	51,229			50,961
Deferred tax liabilities:
IPR&D	(16,335		)	—
Property and equipment	(189		)	—
Total gross deferred tax liabilities	(16,524		)	—
Valuation allowance	(51,040		)	(50,961		)
Net deferred tax liability	$	(16,335	)	$	—