Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes consists of the following components (in thousands):  
Year Ended December 31,
2018 2017
Current expense (benefit):    
Federal $ —  $ — 
State —  — 
Current income tax expense $ —  $ — 
Deferred expense (benefit):    
Federal $ —  $ — 
State —  — 
Deferred income tax expense $ —  $ — 
Net deferred taxes $ —  $ — 
Summary of Valuation Allowance
The following summarizes activity related to the Company’s valuation allowance (in thousands): 
Year Ended December 31,
2018 2017
Valuation allowance at beginning of period $ 2,561  $ 1,397 
Income tax benefit 3,294  1,164 
Release of valuation allowance —  — 
Valuation allowance at end of period $ 5,855  $ 2,561 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the income tax benefit computed using the federal statutory income tax rate to the Company’s effective income tax rate is as follows (in thousands):
 
Year Ended December 31,
2018  2017 
Amount Percent Amount Percent
Federal tax benefit at statutory rate $ 2,494  21.00  % $ 3,334  34.00  %
State tax benefit net of federal 18  .15  % (117) (1.20) %
Foreign rate differential 43  0.36  % —  —  %
IPO costs (112) (.94) % (76) (.77) %
Stock warrant costs 669  5.63  % (395) (4.03) %
Other permanent differences (8) (.07) % (9) (.09) %
Permanent PTR items 190  1.60  % —  —  %
Change in deferred tax rate due to tax reform —  —  % (1,562) (15.93) %
Other —  —  % (11) (.11) %
Increase in valuation allowance (3,294) (27.73) % (1,164) (11.87) %
Total tax (expense) benefit $ —  % $ —  %
Schedule of Deferred Tax Assets and Liabilities
The principal components of the Company’s deferred tax assets and liabilities consist of the following (in thousands):
Year Ended December 31,
2018 2017
Deferred tax assets:    
Start-up costs $ 1,962  $ 1,105 
Federal net operating loss carryforwards 3,153  1,275 
State tax loss carryforwards 21 
Foreign net operating loss carryforwards 182  — 
Tax credit carryforward 190  — 
Interest limitation — 
Deferred compensation 418  176 
Total deferred tax assets $ 5,927  $ 2,565 
Less valuation allowance (5,855) (2,561)
Net deferred tax assets $ 72  $
Deferred tax liabilities:    
Fixed assets (72) (4)
Total deferred tax liabilities $ (72) $ (4)
Net deferred taxes $ —  $ — 
Summary of Unrecognized Tax Benefits A reconciliation of the beginning and ending unrecognized tax benefits excluding interest and penalties is as follows (in thousands):
Year Ended December 31,
2018 2017
Balance, beginning of year  $ —  $ — 
Additions for tax positions related to the current year  —  — 
Additions for tax positions related to prior years  38  — 
Reductions due to lapse of statutes of limitations  —  — 
Decreases related to settlements with tax authorities  —  — 
Balance, end of year  $ 38  $ —