PROVISION FOR INCOME TAXES

3 Months Ended

Mar. 31, 2018

PROVISION FOR INCOME TAXES [Abstract]

PROVISION FOR INCOME TAXES

6. PROVISION FOR INCOME TAXES

Our deferred tax liabilities and deferred tax assets are impacted by events and transactions arising in the ordinary course of business, R&D activities, vesting of nonqualified options and other items. The provision for income taxes is based on an estimated effective tax rate derived from our consolidated earnings before taxes, adjusted for nondeductible expenses and other permanent differences for the fiscal year. For the three months ended March 31, 2018 and 2017, the provision for income taxes was $1.1 million and $1.8 million, respectively. As of March 31, 2018 and December 31, 2017, our remaining deferred tax assets were approximately $0.4 million and $1.7 million, respectively.

As of March 31, 2018, the Company has no unrecognized tax benefits or related interest and penalties. Management does not believe that there is any tax position which it is reasonably possible that will result in unrecognized tax benefit within the next 12 months.