Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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



	Year Ended December 31,
	2017			2016			2015
Pre-tax income (loss):
U.S.	$	(9,246	)	$	3,981		$	(33,452	)
Canada	(19,783		)	(2,085		)	—
Total pre-tax income (loss)	$	(29,029	)	$	1,896		$	(33,452	)

Schedule of components of income tax provision

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



	Year Ended December 31,
	2017		2016		2015
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 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,
	2017		2016		2015
Income tax benefit computed at federal statutory tax rate	34.0	%	34.0	%	34.0	%
Impact of foreign rate differential	(2.6	)	7.7		—
State taxes, net of federal benefit	1.4		18.8		5.6
Net operating loss write off	—		14.4		—
Stock option cancellations	(0.8	)	49.6		—
Transaction costs	—		33.6		—
Contingent consideration	(10.7	)	(15.7	)	—
General business credits and other credits	0.8		(25.0	)	1.8
Permanent differences	0.3		5.3		2.4
Change in valuation allowance	28.2		(122.4	)	(43.8	)
Federal statutory rate change	(50.6	)	—		—
Total	—	%	0.3	%	—	%

Components of deferred tax assets and liabilities

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



	December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	37,070		$	45,488
Research and development credit carryforwards	3,690			3,355
Accruals and other	2,263			2,079
Capitalized license and organization costs	—			61
Capitalized start-up costs	150			246
Other	38			—
Total gross deferred tax asset	43,211			51,229
Deferred tax liabilities:
IPR&D	(12,528		)	(16,335		)
Property and equipment	(107		)	(189		)
Total gross deferred tax liabilities	(12,635		)	(16,524		)
Valuation allowance	(43,104		)	(51,040		)
Net deferred tax liability	$	(12,528	)	$	(16,335	)