Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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



	Year Ended December 31,
	2018			2017			2016
Pre-tax income (loss):
U.S.	(15,977		)	$	(9,246	)	$	3,981
Canada	(17,716		)	(19,783		)	(2,085		)
Total pre-tax income (loss)	$	(33,693	)	$	(29,029	)	$	1,896

Schedule of components of income tax provision

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



	Year Ended December 31,
	2018		2017		2016
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,
	2018		2017		2016
Income tax benefit computed at federal statutory tax rate	21.0	%	34.0	%	34.0	%
Impact of foreign rate differential	1.6		(2.6	)	7.7
State taxes, net of federal benefit	1.3		1.4		18.8
Net operating loss write off	—		—		14.4
Stock option cancellations	(1.2	)	(0.8	)	49.6
Transaction costs	—		—		33.6
Contingent consideration	(5.5	)	(10.7	)	(15.7	)
General business credits and other credits	0.7		0.8		(25.0	)
Permanent differences	(0.3	)	0.3		5.3
Change in valuation allowance	(18.1	)	28.2		(122.4	)
Other	0.5		—		—
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,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	43,212		$	37,070
Research and development credit carryforwards	3,876			3,690
Accruals and other	2,011			2,263
Capitalized start-up costs	122			150
Other	32			38
Total gross deferred tax asset	49,253			43,211
Deferred tax liabilities:
IPR&D	(12,528		)	(12,528		)
Property and equipment	(60		)	(107		)
Total gross deferred tax liabilities	(12,588		)	(12,635		)
Valuation allowance	(49,193		)	(43,104		)
Net deferred tax liability	$	(12,528	)	$	(12,528	)